Schroders maintains dividend after slight fall in pre-tax profit

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Schroders PLC (LON:SDR) saw assets under management hit a new high in 2020 despite uncertainty caused by the coronavirus (COVID-19) pandemic.

Assets under management increased by 15% to a new high of £574.4bn from £500.2bn at the end of 2019, which the fund management firm said was equivalent to a five-year compound annual growth rate of 13%.

The firm enjoyed net inflows of £42.5bn, down from £43.4bn in 2019, with strong demand in its Private Assets, Wealth Management and Solutions segments.

Schroders was keen to highlight its “excellent investment performance” – after all, that is what clients pay the big bucks for – with 75%, 72% and 81% of assets outperforming their relevant comparator over one, three and five years respectively.

The extent of the outperformance in Equities and Fixed Income was particularly significant, Schroders said.

Net income increased to £2.18bn in 2020 from £2.12bn in 2019.

Profit before tax and exceptional items edged up to £702.3mln from £701.2mln in 2019 but reported profit before tax declined to £610.5mln from £624.6mln.

The full-year dividend has been maintained at 114p.

“The strength of our investment performance showcases the benefits of active investment management and our ability to deliver good outcomes for our clients,” said Peter Harrison, the chief executive of Schroders.

“We are confident that our diversified business model will continue to generate value for all our stakeholders,” he added.

The shares were down 3.2% at 3,477 in mid-morning trading.

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