GLOBAL - Schroders has released its first quarter results and announced a loss of £2.5bn in institutional assets under management (AUM) despite reporting a pre-tax profit of 30%.
Schroders said the £2.5bn institutional outflow was down to a reported £1.4bn balance mandate loss from Strathclyde pension fund late last year, and ‘other smaller mandate losses’ amounting to £1.1bn.
Institutional outflows were concentrated in the UK ,and according to its annual results 60% of its business was institutional with 44% of these clients based in the UK, explained Schroders.
A spokesperson blamed the situation on a “change in our client’s strategies to more diversified mandates”.
Despite the institutional losses, the results showed Schroders had performed well overall as a company with its first quarter pre-tax profit at £93.2m, compared to £71.4m for the same period in 2006.
In a separate development, Aberdeen Asset Management reported a pre-tax profits increase of nearly 18.5% compared to the first 6 months in 2006.
Aberdeen Asset Management's six-month interim results showed its pre-tax profits increased from £36.8m to £43.6m.
The company said its assets under management rose to £80.4bn, up 9.8% from year end and its half-year net new business grew to £7.6bn.
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