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Schroders’ show of strength

Schroders saw a 10 per cent rise in profits for the first quarter of this year to £103.8m from £93.2m in the first quarter of last year.

Total funds under management increased to £201.4bn from £196.7bn at the end of last year. The asset management arm had a 7 per cent increase in net revenue to £261.2m from £244.8m in the first quarter of 2010 while profits rose by 9 per cent to £97.3m from £88.9m.

Net inflows stood at £3bn, with £2.8bn coming from institutional business and £0.2bn from the intermediary side.

Funds under management in the asset management arm rose from £180.5bn at December 31, 2010, to £185bn at March 31, 2011.

The private banking arm’s net revenue increased by 24 per cent to £30.1m from £24.3m in the first quarter of 2010 and profits stood at £6.7m. Net inflows of £0.1bn took funds under management to £16.4bn.

The firm’s group segment, which includes central costs, seed capital gains and losses and private equity gains, saw a loss of £200,000 after a £3m profit in quarter one of last year. Schroders says this reflects lower returns on investment capital.

Bestinvest senior investment analyst Adrian Lowcock says: “There is no surprise in a strong set of results as Schroders has a number of strong components to its team. The income maximiser range is strong and fills a market gap for investors while I also believe its European team is one of the strongest in the market, with manager Leon Howard-Spink. If there is one area where I would like to see improvement, it is the mid250 fund, which has not had the best performance in recent times.”

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