Uk - Schroders' assets under management (AuM) suffered a £6bn drop in the second quarter of 2006 due to volatile market conditions.
Schroders had started the year well as AuM rose 4.8% in Q1 to £128.4bn, but those gains were negated in the second quarter, as the group ended on £122.3bn as at 30 June.
According to the firm’s interim results, institutional net outflows more than doubled from £2bn in H1 2005 to £4.6bn a year later, a fact Schroders attributed to performance issues in Japanese equities in earlier years and continued outflows in UK balanced mandates.
We have strengthened our Japanese equities team and performance has improved, Schroders said.
Institutional funds under management also dropped to £75.7bn from £78.7bn a year earlier.
Overall asset management revenue increased by 21% to £377.3m from £311.9m in H1 2005, while gross profit rose to £300.4m, up from £250.3m at the same time last year.
Asset management profits before tax were £96.8m, representing a 21% increase in underlying profit.
Other events over the period included the completion of the NewFinance Capital acquisition on 3 May 2006m and Schroders said its results from that date had been consolidated in its interim report.
In its summary of the period, Schroders said: Against a background of volatile markets the group has produced continued growth in revenue and profit in the first half of 2006. Overall, as previously stated, 2006 is a year of consolidation for Schroders as equity market growth slows and we invest in talent, business development and operating infrastructure.
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