UK – Schroders has continued to lose institutional assets, with a £2bn (€2.9bn) net outflow in the first half of 2005.
“”Net business outflows in institutional were £2.0bn as we restructured our business towards higher margin products and as UK institutions continued to move from balanced to specialist mandates,” the company said in its interim earnings report. It had £4.5bn of institutional outflows in the first half of 2004.
Institutional funds under management were £71.7bn at the end of June, compared to £69.1bn at the end of 2004. Total funds under management have risen to £112.1bn from £105.6bn at the start of the year.
Pre-tax profit at asset management rose to £99.8m from £55.3m a year ago, including a ££20.4m gain from the discontinued outsourcing project with JP Morgan.
Asset management’s total revenues increased 28% £313.6m. It said margins are improving as the business mix evolves in favour of retail and higher margin institutional business.
Schroders’ total pre-tax group profit rose to £123.5m from £72.6m. “We see good medium-term growth prospects for our retail business and encouraging signs in institutional,” said chief executive Michael Dobson.