Schroders' warning of uncertain retail market clouds dividend hike

31st Jul 2014 09:20

- AuM up 15% to £272bn - Underlying PBT up 15%- Dividend up 50% to 24p- Uncertain retail investor marketEven though it unexpectedly hiked its half-year dividend 50% to 24p, shares in FTSE 100 asset manager Schroders slipped in early trade on Thursday after it sounded a note of caution about the retail investor market. While chief executive Michael Dobson said July had seen "good inflows" and cited a "significant pipeline" of institutional business, the company's outlook statement was not altogether positive. Schroders warned that "the short-term outlook for retail investor demand is uncertain given no clear trend in markets", although in the longer term it was encouraged by a wide range of growth opportunities across the business.Net inflows of £4.8bn helped assets under management rise 15% to £271.5bn in the first six months of the year, leading to profit before tax and exceptional items increasing 15% to £261.5m.Dobson pointed out that this was a record result. "Our focus on delivering long-term value for shareholders is reflected in the 50% increase in the interim dividend."Against the background of quieter markets and some slowdown in investor demand following the strong performance of 2013, he said Schroders had produced a "satisfactory" result for the period.The asset management business increased net revenue 6% to £621m, while net revenues in wealth management jumped 88% to £100.5m.Shares in Schroders were down 2.12% to 2,446p at 09:10 on Thursday. OH