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Schroders PLC on Thursday delivered an improvement in assets under management in 2023 despite what it called one of the ‘most challenging years’ in recent times.
Shares in Schroders rose 1.6% to 391.00 pence in London on Thursday morning.
The London-based investment manager said assets under management in the 12 months to December rose 1.8% to £750.6 billion from £737.5 billion the year before, broadly in line with the market consensus of £750.9 billion.
Pretax profit fell 17% to £487.6 million from £586.9 million but net operating revenue held steady at £2.33 billion compared to £2.36 billion.
Basic operating earnings per share fell to 32.5 pence from 37.4 pence.
Chief Executive Peter Harrison described 2023 as ‘one of the most challenging years for global active asset managers in recent times’.
He highlighted a stronger presence across Private Markets, Wealth Management and Solutions, where strong growth rates mean they now account for 56% of AUM and 48% of net operating revenue.
These three businesses attracted strong net new business of £23.1 billion in 2023, Schroders said.
Total NNB was £9.7 billion, excluding joint ventures and associates compared to an outflow of £1.6 billion in 2022.
Schroders said Wealth Management delivered a standout performance, with strong advised organic growth of 8%.
Operating expenses were little changed at £1.76 billion compared to £1.75 billion a year ago, reflecting strong discipline on cost management in the face of inflationary pressures.
Harrison said Schroders starts 2024 in a ‘strong position to capitalise on some interesting market opportunities, with the prospect of interest rates falling and the rotation of clients’ assets back into risk assets.’
The total dividend was unchanged at 21.5 pence per share.
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