Private equity investments and helped lift interim profits at Schroders by 40%.
Michael Dobson, chief executive of the FTSE 100 asset manager, said: ‘Every part of the group has been performing well with £700m of net inflows in the second quarter.’
Money continued to flow out of Japan and Schroders’ balanced mandates as institutional clients redirected their money to more specialist funds. However, the net outflow of £4.1bn from institutions was largely offset by £3.6bn of net sales to private investors. Total net outflows were only £300m in the six months to June and funds under management rose by 7% to £137.6bn.
Dobson said the group was barely exposed to turmoil in credit markets although he warned that continued volatility in markets could hit retail investors’ confidence in other investments.
Pretax profits from private equity more than doubled from £17.7m last year to £36.2m and private banking profits rose 42% to £15.9m in the six months to June.
Group pretax profits rose from £132.3m in the first half of 2006 to £185.6m on turnover of £558.6m (£451.3m). The company declared an interim dividend of 9p (7.5p) on earnings per share of 49p (33.7p). The shares fell 36p to £12.50.