(Alliance News) - Schroders PLC on Thursday reported a lower interim profit amid a fall in assets under management, citing persistent inflation and higher interest rates.
The London-based investment manager said in the first half of 2023, pretax profit declined 12% to GBP275.6 million from GBP312.8 million a year prior. Net operating income declined to GBP1.21 billion from GBP1.24 billion.
Assets under management fell 6.1% to GBP726.1 billion from GBP773.4 billion.
Chief Executive Peter Harrison said: "Our business strategy has enabled us to deliver resilient results in the face of ongoing industry headwinds. Clients continue to value our differentiated investment capabilities and entrust us to manage their assets for the long term."
"We are pleased with the positive progress in wealth management and solutions, which performed well during the turbulent period in the UK government bond market. Even with the uncertain market conditions, we experienced positive net new business in European and US mutual funds."
Schroders declared an unchanged interim dividend of 6.5 pence per share.
Looking ahead, the company said: "We remain confident in our ability to deliver on the targets we have set for Wealth Management and Schroders Capital."
Schroders PLC shares were 0.2% higher at 460.80 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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Schroders (SDR)