Schroders profits fall but AUM rises

Fund manager Schroders has seen a dip in pre-tax profits and inflows in the first three months of 2012, while also completing a strategic investment in Indian outfit Axis AMC.

Group profit before tax was £95.5m compared to the £103.8m in the first quarter of 2011. Net inflows were £1.6bn compared to the £3.1bn seen in the same period of last year. Assets under management (AUM) at the end of March were £199.6bn, up on the £187.3bn seen at the end of 2011.

Schroders also says it has bought 25% of Axis AMC, the asset management subsidiary of Axis Bank, the third largest private sector bank in India. Axis AMC has assets under management of $2.3bn.

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Schroders says in conjunction with Axis Bank it wants to build a significant asset management player in the Indian market. It will also be able to distribute Axis AMC's funds internationally.

The main Asset Management division's net revenue for the quarter was £250.8m against a comparator of £261.2m during the same period of last year. Performance fees in the first quarter were £6.0m versus the £7.8m seen in the first three months of 2011.

BS