The London-listed investment house saw business from wealth management and intermediary clients suffer amid market volatility.

Schroders reported a pre-tax profit of £282.3 million ($372 million) for the first half of 2016, down 3 per cent from a year earlier, though assets under management hit a new high.

Assets under management reached £343.8 billion, compared to £309.9 billion at the end of June 2015, largely driven by the weakness of sterling. The company saw £700 million of net new business, with institutional demand offsetting outflows from wealth management and intermediary clients.

Net operating revenue fell a marginal 0.4 per cent year-on-year to £794.9 million, of which wealth management net operating revenue was £107.1 million, down from £105.7 million on 30 June 2015. The division suffered net outflows of £400 million, all of which were in the second quarter in the run-up to and in the immediate aftermath of the UK's European Union referendum. 

Pre-tax profit for the unit was down by £2.4 million year-on-year at £28.4 million. The net operating revenue margin is unchanged at 65 basis points. 

“There was heightened market volatility throughout the period, particularly towards the end of June, following the result of the referendum on the UK’s membership of the European Union,” said group chief executive, Peter Harrison.

“We expect the current market environment to persist and this may have an impact on investor demand. Our diversified business model continues to perform well and we are well placed to create value for our clients and our shareholders over the long term.”

The board declared an interim dividend of 29 pence per share – the same as last year.