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July 29, 2022

Schroders AuM reaches record high in H1 2022

UK fund manager Schroders has recorded a significant rise in asset under management (AuM) management with its net inflows climbing to £8.4bn.

The firm’s AuM rose to £773.4bn in the six months to 30 June 2022 as investors put more cash into its funds despite a significant slump in equity and bond markets.

Excluding joint ventures and associates, Schroders generated net new business of £4.4bn and assets under management stood at £637.5bn.

Operating profit rose 2% to £406.9m in the first of 2022, versus £399.6 a year ago while net operating income increased 3% to £1.24bn.

The British fund manager’s profit before tax and exceptional items in the first six months of 2022 stood at £312.8m, compared to £373.9 a year ago.

Schroders said that it has maintained its interim dividend of £37 per share.

Asset Management

Asset Management net operating income was at £1.03m, up from £1.023m in H1 2021 due to an increase in assets.

The units AuM surged to £547.1bn from £511.9bn in H1 2021. Operating profit was £329.0m compared to £334.1m a year ago.

The company said that the segment benefitted from the continued stability and strong performance of the joint ventures and associates, which contributed £37.9m.

Wealth Management

Schroders’ wealth management segment, which comprises wealth planning and advice, platform services, and investment management, reported AuM of £96.0bn at the end of the period.

This included £59.1bn of advised AUM, £17.2bn of platform AUM and £19.7bn of managed AUM.

Net operating income rose 9% to £202.5m against £185.8m a year ago. The increase was principally driven by higher management fees and net banking interest, the company said.

Operating profit was £77.9m, up 19% from £65.5m in H1 2021.

Comments

Schroders Group CEO Peter Harrison said: “We have built a diversified and resilient business that has weathered difficult market conditions, can fund growth and has put us in an excellent position to serve our clients. The fact that we can report positive net new business in this period is testament to this. Our investment in sustainability has been a critical contributor to our success.

“Our private assets, wealth and solutions businesses are growing well, reinforcing the value of our strategic focus. It is this diversification that enables us to continue to meet our clients’ evolving needs.”

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