UK - Schroder Investment Management lost £3.7bn in UK institutional business last year due to underperformance and the move by schemes to specialist management.
Schroders – which has a total of £98.3bn in assets under management – saw outflows from its UK institutional clients increase from the £3.4bn it suffered in 2002 to £3.7bn last year.
And the firm admits its performance needs to improve if these outflows are to be reversed.
Overall, net outflows of institutional client money stood at £4.3bn at the end of 2003 – down from the £5.4bn it lost the previous year – leaving it with a total of £71.2bn in institutional assets under management.
During 2003, Schroders also lost £3.5bn when it transferred its sub-advisory assets from its institutional to retail arms to reflect the underlying source of the business.
It also lost £1.5bn of institutional assets in February 2003, when it sold its Schroder Hermes subsidiary to Hermes Pensions Management.
Chief executive Michael Dobson (pictured) said: “The net outflow was due in part to underperformance in some asset classes but, as importantly, to restructuring by clients in the UK and elsewhere from balanced and multi-asset mandates to specialist. The latter was the major factor underlying a net outflow in the UK.
“We generated good investment performance across a range of key products during the year, including UK equities and international fixed income.
“Our UK multi-asset pooled fund has also outperformed its benchmark over three and five years. However, further improvement is required in some other asset classes.”
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