Schroders profits up but outlook is 'muted'

4th Aug 2011 09:18

Asset management firm, Schroders, saw its pre-tax profits jump in the first half to £215.7m, compared with £188.2m the year before.In a statement, Schroders' management said a faltering economic recovery and the uncertainties created in particular by the continuing Eurozone crisis had overshadowed financial markets and investor demand in the first half of 2011. "Despite this, we achieved £5.1 billion of net inflows and assets under management reached a new high of £204.8 billion," the firm said.Earnings per share rose to 60.7p, compared with 49.4p per share by June last year.Schroders pushed up its interim dividend from 11p to 13p, an 18% increase.However, the firm warned that as long as markets were held back by a range of macro economic concerns, intermediary demand and opportunities in private banking are likely to remain "muted"."We are well positioned for a recovery with strong investment performance and a broad product range," it said. "We continue to see good prospects for growth in institutional."Schroders' shares rose almost 3% on the announcement.MM