Clients continued to put investment funds under the jurisdiction of asset manager Schroders during the third quarter, but the group is seeing a slowdown in Institutional flows.
Assets under management (AUM) at the end of September stood at £202.8bn, up from £194.6bn at the end of June, with a chunk of the gain down to net inflows of £2.6bn. The Institutional business saw net inflows in the third quarter of £1.9bn while Intermediary funds saw a net inflow of £0.8bn but Private Banking saw a net outflow of £0.1bn. For the first nine months of 2012, net inflows were £5.3bn (2011: £5.1bn).
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Asset Management net revenue for the third quarter declined to £246.0m from £256.8m the year before, while profit before tax tumbled to £85.8m from £92.7m in the third quarter of 2011. For the first nine months of 2012, Asset Management profit before tax was £261.0m (2011: £295.8m).
On the Private Banking side, net revenue for the three months to September 30th was £24.6m, down from £29.3m the year before, and profit before tax was £4.0m, down from £6.7m a year earlier. For the first nine months of 2012, Private Banking profit before tax was £14.4m (2011: £19.0m).
What Schroders calls the Group Segment, which comprises central costs and returns on investment capital (including seed capital in new products), saw a loss before tax of £1.2m, versus a profit of £2.2m the year before, offset by £1.6m of investment gains through reserves. For the first nine months of 2012 the loss before tax of the Group Segment was £9.4m (2011 profit: £2.5m), offset by £8.9m of investment gains through reserves.
JH
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