UK - Schroder Investment Management has stemmed the haemorrhaging of its institutional business.
Outflows totalled £2.3bn in the first half of this year – down from £4.4bn previously.
The bulk of the losses were from UK clients, and Schroders attributed £1.8bn of this year’s outflows to the move from balanced to specialist management.
Balanced mandates used to form the majority of Schroders’ assets but now represent less then 7% of the firm’s total assets under management.
Client outflows and market movements reduced the firm’s total assets under management to £90.4bn at the end of the first half – a 10% fall on the corresponding period last year.
Asset management profits fell to £32.6m at the end of the first half of 2003, down 30.4% on the first half result posted the previous year.
But a combination of cost-cutting, business unit sales and the strong performance of its private equity division, resulted in an increase in overall pretax profits of £27.2m for the first half, compared the £20.5m posted for the second half of 2002.
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