Schroders attracts £5.7bn net inflows in H1 as 'strategic rebalancing' proves fruitful
Peter Harrison (pictured) is the CEO of Schroders.
In its half-year report published today (27 July), CEO Peter Harrison said the net new business was due to the group's shift towards higher growth and increased longevity areas, such as its wealth management, private assets and solutions businesses.
The firm's wealth management business attracted £3.7bn net inflows from clients, while its solutions unit ended the six months with net inflows of £6.3bn, after recovering from the gilt crisis in the second half of 2022.
Schroders' private assets division collected £1.8bn in net inflows and generated gross fundraising of £5.3bn in the first half of 2023, despite unfavourable market dynamics.
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Meanwhile, the firm said its mutual funds and institutional units «felt the impact of the 'risk-off' market sentiment» and saw net outflows of £800m and £5.3bn, respectively.
Despite the overall positive flows, the group's assets under management, excluding joint ventures and associates, grew only marginally to £618.3bn from £616.5bn in the 2022 financial year. This slight growth came despite the strengthening of sterling, which reduced AUM by £21.7bn.
The currency impact was offset by both inflows and investment performance, which increased AUM by £17.8bn. AUM including joint ventures and associates decreased by 2% to £726.1bn, down from £737.5bn last year.
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Meanwhile, the firm ended H1 with £275m profit before tax, 12.6% less than in the same period last year, while net operating revenue was £1.1bn, including performance fees. Net operating income stood at £1.2bn.
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