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Asset manager Schroders has reported a decline in pre-tax profit even as it generated net inflows of £38.1bn in the first half of 2020 led by client demand for its solutions strategies and wealth management.
In its half-year results to 30 June 2020, Schroders announced pre-tax profit and exceptional items fell by 10% to £306.2, with exceptional items of £26.1m which principally comprised the amortisation of acquired intangibles.
Pre-tax profit after exceptional items declined 12% to £280.1m, while pre-tax profit and exceptional items was down 13% at £222.7m.
Group chief executive Peter Harrison said that 'aided by the investments we have made in technology, our diversified business model has continued to perform well, enabling us to generate £38.1bn of positive net new business'.
This compared to net outflows of £1.2bn in the first half of 2019.
Harrison added: 'We saw client demand for solutions strategies as well as momentum across wealth management.'
Solutions strategies continued to attract high levels of client demand, with total net new business over the six months of £42.7bn, compared to £2.1bn in the same period a year earlier, with Schroders confirming it had onboarded the remainder of the Scottish Widows mandate of £29.5bn.
Schroders reported assets under management during the period grew by 5% to reach a new high of £525.8bn.
In its wealth management business, net income rose 30% to £187.6m, including performance fees of £0.5m.