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Schroders sees £1.2bn wealth inflows as Benchmark deal bears fruit

Schroders sees £1.2bn wealth inflows as Benchmark deal bears fruit

Schroders' wealth division saw net inflows of £1.2 billion, offsetting the sluggish performance of its fund division in the first half of the year.

Net income from its wealth arm rose 8% to £143.8 million, including performance fees of £0.3 million, with pre-tax profit up 4% to £37.9 million.

Around £0.7 billion of the £1.2 billion inflows came from Benchmark Capital, the company behind advisory network Best Practice, which Schroders bought 65% of in late 2016.

At a group level, the company reported net inflows of £1.2 billion, up from £0.8 billion year-on-year. Flows from its asset management business were flat, with the firm saying that institutional inflows were offset by intermediary outflows.

The division saw pre-tax profit rise 10% to £332.2 million on revenue of £921.5 million, up 12% year-on-year.

This helped drive group pre-tax profit up by 8% to £371.1 million, on revenue of £1.1 billion, which rose 11% over the first six months of the year.

Total assets under management (AUM) ticked up from £447 billion to £449.4 billion.

The positive results prompted the board to up the dividend by 3%to 35p per share.

Group chief executive Peter Harrison (pictured) said: ‘Against a challenging backdrop we have delivered robust revenue growth through our strategy of focusing on new markets and by continuing to evolve our products and solutions.

‘Our diversified business model has again proven its worth. Wealth management has seen strong client demand and we have continued to expand our capabilities within private assets and alternatives, offsetting industry headwinds in other areas. We remain confident that we can generate growth through the cycle and that we are well placed to continue to create value for our clients and shareholders over the long term.’

 

 

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