UK – Schroders Plc, parent of the seventh largest manager of European pension fund assets, has posted a loss in the third quarter while reporting that its assets under management have declined 15%.
Schroders is parent of Schroder Investment Management, which has 70 billion euros in European pension fund assets under management.
The company reported a group loss before goodwill amortisation and tax of 9.4 million pounds (14.7 million euros) in the quarter, compared to a profit of 25.9 million pounds (40.7 million euros) in the first six months. It did not provide a comparison with the prior quarter due to a change in its financial reporting schedule.
The loss was largely due to the effect of marking to market its 12.8% shareholding in Schroder Ventures International.
Underlying asset management profits were 11.4 million pounds in the quarter, against 46.8 million pounds in the first six months. Reflecting falling stock markets, its funds under management declined by 15% in the period to 87.2 billion pounds from 102.7 billion pounds. With October’s slight rise in markets, funds under management totalled 89.5 billion pounds at the end of the month.
Asset management revenues fell to 99.2 million pounds, from 238.5 million pounds at the half-year stage,
“The outlook for markets remains uncertain but, looking forward, the group is on target in significantly reducing costs, strengthening management, delivering stronger investment performance and bringing a sharper focus to the business,” it said.
It said that redundancy costs for the second half are now expected to be around seven million pounds and that “year-end headcount will be below previous estimates”.
Schroder sold its defined contribution pension scheme administration unit Schroder Pension Group for 22.5 million pounds in September.