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Schroders warns of short-lived intermediary flows recovery
by Sarah Miloudi on Nov 08, 2012 at 08:09
Schroders has said the recovery in intermediary flows may only be temporary as the positivity seen in recent weeks could be quickly wiped away by a fresh bout of economic gloom.
Speaking to shareholders, Schroders said its asset management division pulled in revenue of £246 million over the last quarter, versus £256.8 million during the same stretch in 2011. Its profit before tax was £85.8 million, compared to £92.7 million in 2011's third quarter.
'We have had positive net flows in institutional and intermediary in each of the first three quarters of 2012, with small outflows in private banking,' Schroders told investors, before adding that it was unsure if the more positive tone in intermediary would be sustained given the 'uncertain' economic background.
The group's private bank, which recently saw Rupert Robinson (pictured), its UK private bank chief executive officer, depart and his role handed to Philip Mallinckrodt, was the only area to witness outflows during the period Schroders reported on.
Broadly, for the three months to 30 September, Schroders' net inflows were £2.6 billion, with £1.9 billion going into institutional and £0.8 billion into intermediary. Net outflows of £0.1 billion were seen in private banking.
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