(Alliance News) - Schroders PLC on Thursday reported a rise in assets under management following an impressive performance from its Solutions funds and was able to generate strong net inflows.
At June 30, the wealth manager held GBP525.8 billion in assets under management, 5.1% higher from GBP500.2 billion at January 1.
Schroders' Solutions funds enjoyed 23% growth over the first half to GBP175.2 billion, while Private Assets & Alternatives rose 2.5% to GBP45.3 billion and Institutional funds added 1.0% to GBP145.5 billion. Mutual Funds, however, slipped 8.1% to GBP94.1 billion.
In the firm's Wealth Management arm, assets slipped 1.5% to GBP65.7 billion.
Schroders recorded net inflows of GBP38.1 billion but the wealth manager made a GBP12.8 billion investment loss.
The company has proposed an unchanged interim dividend of 35 pence. Schroders said the payout reflects its "strong" capital position and "resilient" performance.
Chief Executive Peter Harrison said: "We have delivered a robust performance in the first half of 2020, despite the extraordinary period of market volatility and continuing social and economic uncertainty."
In the six months to June 30, revenue net income was slightly lower at GBP1.00 billion, but pretax profit fell 12% to GBP280.1 million.
"The first half of 2020 was dominated by the social and economic impacts of Covid-19 around the globe. The current environment is more balanced and markets are less volatile than we saw towards the end of the first quarter. However, the ongoing impact on economies and markets will likely continue for some time and will be dependent on the extent and effectiveness of measures taken by governments globally," the wealth manager added.
Shares in Schroders were down 0.1% in London on Thursday morning at 2,964.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Schroders (SDR)