Schroders has announced it will abandon quarterly reporting, as it defied a rough year for the asset management industry to report profit before tax 6% higher over the 12 months at £644 million.
The company will continue to update investors on assets under management every quarter but will publish its accounts only at half and full year, emphasising its ‘sustainable growth for the long term’ it said.
Seperately, group head of private assets and wealth management at Schroders Philip Mallinckrodt has stepped down from his executive responsibilities after more than 20 years with the firm.
That followed a year in which the business seemed largely immune to the volatility which has buffeted the rest of the industry, with net new business flows of £1.1 billion in 2016.
Combined with acquired growth and market appreciation overall assets rose from £313 billion to £397 billion, while income rose 8% to £1.7 billion.
‘We have made good progress against our strategic objectives and see a number of future growth opportunities,’ said chief executive Peter Harrison (pictured).
‘Our diversified business model, a strong financial position and willingness to invest behind the business means we are well placed to take advantage of these opportunities, despite the challenges faced by the industry.’
Some of the pressures facing the industry at large were visible in a reduction in margins from 49 basis points to 46 basis points due to ‘changes in business mix and some fee pressure’. Overall revenue nonetheless continued to climb, up 7% to £1.7 billion.
That followed a strong period of performance from the group with 74% of assets ahead of benchmark over three-year terms.
Mallinckrodt will remain on the board as a non-executive and has joined the company’s nominations committee. The division will now report directly to company chief executive Peter Harrison.
Chair of the group Michael Dobson said: ‘Philip has made a major contribution to Schroders' success, particularly in the last eight years as an executive director of Schroders plc.
‘I am delighted that he will serve as a non-executive director and I look forward to continuing to work with him in this new capacity.’
Mallinckrodt added: ‘I am very pleased to be taking on this new role. After more than 20 years serving in the executive management team, I now look forward to helping shape the long term direction of the firm as a non-executive director.’