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Schroders achieves record assets under management in third quarter

Published: 04:19 19 Oct 2017 EDT

money
The third quarter was boosted by growth institutional investment assets

Schroders PLC (LON:SDR) said its assets under management rose by £34bn to reach a record high of £419.6bn at the end of the third quarter, driven by growth in the institutional investment business.

In a brief update, the investment management group said assets in the institutional arm grew to £247.4bn from £226.3bn.

READ: EU recovery underpins Schroders European Real Estate

The intermediary business saw assets rise to £128.1bn from £120.1bn.

Intermediary flows have been under strain recently with net outflows of £1.2bn in the first half. The outflows reflected £5.2bn in sub-advised mandate redemptions. Last year the group posted outflows in the intermediary division of £2.9bn as demand was hit by economic uncertainty and volatile markets.

"We continued to generate growth in the business in the first nine months of the year, with assets under management and administration increasing 9% to £430bn,” the company said.

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Shares dipped 0.54% to 3,484p in morning trading.

Liberum said it expects “very low single-digit” upside risk to consensus forecasts heading into year end.

“At the end of Q3'17, AUM is tracking ahead of our forecasts, which is consistent with the performance of the wider asset management sector,” the broker said.

Its adjusted pre-tax forecasts for 2017 are in line with market expectations of £728.8mln while its 2018 estimate is 1% below consensus of £771.9mln at £730.7mln.

Liberum left its rating at ‘hold’ and target price at 3,564p. 

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