Schroders slumps as profits disappoint

5th May 2011 08:55

Asset management firm Schroders saw funds under management (FUM) rise through the £200bn barrier in the first quarter of 2011.Total FUM rose to £201.4bn at the end of March from £196.7bn at the end of 2010. Net inflows totalled £3.0bn, all but £0.2bn of which came from institutional clients.The group's profit before tax in the first quarter rose to £103.8m from £93.2m in the first quarter of 2010. The Asset Management division contributed the bulk of the profits, with the unit's profit before tax rising to £97.3m from £88.9m. That wasn't enough for investors who were hoping for a figure closer to £117m.Private Banking's pre-tax profit rose to £6.7m from £1.3m the year before, while the Group segment tipped into the red, reflecting lower returns on investment capital. The segment lost £0.2m, after making £3.0m a year earlier.Group net revenue rose to £292.0m from £275.5m the year before.Asset Management net revenue for the quarter increased to £261.2m from £244.8m a year earlier, including performance fees of £7.8m (Q1 2010: £27.2m). Private Banking net revenue increased to £30.1m from £24.3m in the first quarter of last year. Net inflows of £0.1bn took the division's funds under management to £16.4bn, up from £16.2bn at the end of 2010."Intermediary flows have slowed, reflecting the impact of market volatility on retail investor demand, although we continue to see good opportunities in Institutional," the group said. ---jh