Schroders plc
Interim management statement
3 May 2012
Schroders plc today issues its interim management statement covering the three months to 31 March 2012.
· Profit before tax £95.5 million (Q1 2011: £103.8 million)
· Net inflows £1.6 billion (Q1 2011: £3.1 billion)
· Total assets under management £199.6 billion (31 December 2011: £187.3 billion)
Asset Management
Asset Management net revenue for the quarter was £250.8 million (Q1 2011: £261.2 million) including performance fees of £6.0 million (Q1 2011: £7.8 million). Profit before tax was £88.6 million (Q1 2011: £97.3 million). Net inflows were £1.7 billion, comprising £1.4 billion in Institutional and £0.3 billion in Intermediary, and assets under management at the end of March were £183.2 billion (31 December 2011: £171.3 billion).
We have reached agreement to acquire 25% of Axis AMC, the asset management subsidiary of Axis Bank, the third largest private sector bank in India. Axis AMC has assets under management of $2.3 billion1. Together with Axis Bank, our objective is to build over time one of the leading asset management companies in India. In addition, we will distribute Axis AMC's funds internationally and we will have exclusive access to their network for the distribution of Schroders' funds in India.
Private Banking
Private Banking net revenue was £27.1 million (Q1 2011: £30.1 million) and profit before tax was £6.4 million (Q1 2011: £6.7 million). Net outflows were £0.1 billion and assets under management at the end of March were £16.4 billion (31 December 2011: £16.0 billion
Group segment
Profit before tax in the Group segment was £0.5 million (Q1 2011 loss: £0.2 million). Total equity increased to £1.96 billion (31 December 2011: £1.90 billion).
Outlook
In the short term, macro-economic uncertainties and volatility in financial markets make it hard to predict flows. Long term, we continue to see a broad range of opportunities in our core business in Institutional and Intermediary, in addition to which we have a number of new products coming on stream later this year.
