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IPE special report May 2018

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Institutions pull €1.8bn from Schroders

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UK – Schroders plc says it lost a net £1.2bn (€1.78bn) in institutional assets under management in the three months to the end of September – although asset management profit and revenue were both up.

The firm has lost billions of assets in the last few years as institutions have moved away from traditional balanced mandates. It says this has been offset by higher margin products.

Today it said that net business outflows during the quarter were £2.1bn, with net outflows of £1.2bn in institutional and £0.9bn in retail.

It said: “Net new business in institutional was concentrated on European equities and property against net outflows in UK balanced mandates and Asia Pacific equities.”

Total funds under management rose by 5.5% - due to market movements - at the start of the quarter to £118.3bn from £112.1bn.

Asset management profit rose to £46.1m from £27.5m in the 2004 period, with revenues up to £141.2m from £103.9m.

Firmwide pre-tax profit dipped to £63.6m from £86.5m – although the prior-year period included a one-off £47.8m gain on private equity.

A spokesman said asset management now accounts for around 80% of profit, up from 50% before.

Schroders added: “In the medium term we expect to see resumed growth in retail and opportunities for institutional in both fixed income and equities.”

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