Schroders saw assets under management hit a new high of £773bn, as the company prepares to make a mark in the private capital space.
In the asset manager’s half-year results, operating profit dipped as net operating income dropped from £1.21bn to £1.18bn, but profit before tax stayed steady at £276m.
The group’s results come following its announcement with Phoenix Group to launch a billion pound private markets manager together, aiming to attract investment from pensions into the space.
The deal, along with other joint ventures, boosted up the group’s net new income for the year to £3.9bn, up from just £400m a year ago.
Schroders reported that while there had also been positive net new income into the public markets space, as money flowed into fixed income while being withdrawn from regional equity strategies.
In addition, the group said that net new business into its wealth management arm was £3.7bn, a seven per cent growth rate.
The mix of net new business resulted in lower average fee margins for the six months, explaining the dip in operating income.
However, the group’s operating expenses also dipped by one per cent to £860m, as Schroders continues to benefit from its 2023 restructuring initiatives.
Peter Harrison, group chief executive of Schroders, said: “Whilst our solutions business was impacted by a large client outflow, it also secured some strong wins and mandate extensions.
“Today’s results are further validation that our long-term strategic pivot is helping us to navigate the structural changes our industry is facing.
“Our capabilities in Wealth Management, Private Markets and Solutions are enabling us to take advantage of the growth opportunities we have identified and to deliver the investment solutions that our clients need.
“As we look to the next six months, we will remain focused on delivering strong investment outcomes for clients, maintaining good cost discipline and continuing to innovate, using new technology and strategic partnerships such as the launch of Future Growth Capital with Phoenix Group, to maintain our leadership position as a global asset manager.”