AuM hits record-high at Schroders but profits fall

Profits slumped at British asset management firm Schroders in 2012 but assets under management (AuM) reached record levels in spite of choppy markets.

Profits slumped at British asset management firm Schroders in 2012 but assets under management (AuM) reached record levels in spite of choppy markets.

Profit before tax dropped from £407.3m to £360m during the 12 months to December 31st as revenues fell in both the Asset Management and Private Banking divisions.

Group revenue dropped from £1.50bn to £1.43bn over the period.

Nevertheless, the company raised its final dividend to 30p per share (2011: 26p), lifting the full-year payout to 43p per share, up 10% from the 39p paid out the year before.

The company said that financial markets and investor sentiment "fluctuated sharply" in the first half of 2012 on concerns over the Eurozone and faltering economic growth.

Confidence then recovered in the second half, helped by stimulus measures by central banks and policy action in Europe, as well as measures taken in China.

"Sentiment improved markedly and, with equity valuations looking historically attractive against bonds and investors seeking to reduce their underweight positions, equity markets moved higher," the company said.

Net inflows surged from £3.2bn to £9.4bn over the period, while AuM rose to their highest-ever level at £212bn, up from £187.3bn in 2011.

Shares were up 0.69% at 2,050p in early trading on Thursday.

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