The UK-listed firm, which operates in several jurisdictions, suffered a dent to pre-tax profit in 2019. AuM hit a record, however, aided by significant inflows.

Schroders, the UK-listed wealth management house that operates in regions including Asia, yesterday reported pre-tax profit for 2019 of £495.7 million ($641.5 million), falling by 2 per cent on a year earlier. Net income was flat at £2.124 billion.

Pre-tax profits before one-off items fell by 8 per cent to £701.2 million; amortisation of intangible assets and restructuring costs caused exceptional costs of £76.6 million, it said in a statement. Operating costs rose by 4 per cent year-on-year to £1.424 billion, the firm said. 

The firm logged record net inflows of £43.4 billion last year, against net outflows in 2018 of £9.5 billion. Total assets under management rose by 23 per cent to reach £500.2 billion.

Schroders said that changes to its mix of businesses led to a 1 per cent cut in operating revenue to £2.052 billion.The firm noted positive contributions to income from associates and joint ventures (£30.5 million), mainly from its venture with Bank of Communications in China. 

Within Schroders’ wealth management business, net income rose by 7 per cent to £309.6 million, a figure that includes performance fees of £900 million, up from £400 million in 2018. Total AuM in the wealth business rose by 53 per cent year-on-year to £66.7 billion.

See a Schroders survey of clients private assets.