Schroders posts increase in third quarter assets, led by institutional demand

The recent performance of assets managers has been mixed as Brexit uncertainty and concerns global trade and political tensions weigh on investor sentiment

Schroders shares edged down 2.8% in afternoon trading

Schroders PLC (LON:SDR), which is in talks with Lloyds Banking Group PLC (LON:LLOY) about a wealth management joint venture, on Monday posted a 0.7% rise in third-quarter assets under management (AuM).

Total AuM at the end September stood at £439.1bn, compared to £435.7bn on January 1, as a 1.7% increase in institutional assets offset a 1.4% decline in retail assets.

READ: Lloyds in talks to merge wealth-management arm into joint venture with Schroders

The asset management sector has seen a mixed performance from companies as Brexit uncertainty, concerns about rising US interest rates and global trade and political tensions weigh on investor sentiment.

FTSE 100 fund supermarket Hargreaves Lansdown PLC (LON:HL.) last week touched on the tough market conditions the asset management sector is facing as it reported a 3% rise in assets under administration (AuA) to £94.1bln in the first quarter to September 30, missing analysts’ expectations.

Asset manager Jupiter Fund Management Ltd (LON:JUP) posted a drop in AuM to £47.7bn in the third quarter to September 30 from £48.3bn the previous quarter due to larger-than-expected net outflows of £800mln.

READ: Jupiter and Hargreaves Lansdown results underline impact of weaker investor sentiment

Man Group PLC (LON:MEMG) saw funds under management edge up to US$114.1bln in the quarter ended September 30, from US$113.7bln at the end of the second quarter, as net inflows rose to US$400mln.

READ: Man Group PLC posts slight increase in Q3 funds under management, proposes new holding company

For Ashmore Group PLC (LON:ASHM, price volatility in emerging markets created a number of money-making opportunities, with AuM rising to US$76.4bn in the third quarter from US$73.9bn the same time last year, comprising net inflows of US$1.9bn and positive investment performance of US$0.3bn.

READ: US elections to create buying opportunities for emerging markets asset manager Ashmore

Last week, it emerged that Lloyds was in talks to merge its £13bn wealth management business into a new joint venture with Schroders.

“Discussions are ongoing and there can be no certainty that these discussions will lead to any formal arrangement being entered into,” Schroders said. 

Shares in Schroders dropped 2.8% in afternoon trading.

Quick facts: Schroders

Price: 3219 GBX

Market: LSE
Market Cap: £9.09 billion

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