Schroders’ wealth division saw net inflows of £1.2bn as its fund division continued to drag in the first half of the year.
The UK’s second biggest listed investment manager was hit by volatile markets and outflows from its retail business. In its results for the six months to 30 June, the firm said AuM in the asset management division fell slightly from £389.8bn at the end of 2017, to £389.3bn.
Net income from its wealth arm rose 8% to £143.8m, including performance fees of £300 thousand, with pre-tax profit up 4% to £37.9m.
Overall new business at Schroders increased to £1.2bn, compared to £600m a year ago, but this was entirely from its wealth management division.
Around £700m of the £1.2bn inflows came from Benchmark Capital, the company behind advisory network Best Practice, which Schroders bought 65% of in late 2016.
Peter Harrison, group chief executive at Schroders, said: “Against a challenging backdrop we have delivered robust revenue growth through our strategy of focusing on new markets and by continuing to evolve our products and solutions.
Our diversified business model has again proven its worth. Wealth management has seen strong client demand and we have continued to expand our capabilities within private assets and alternatives, offsetting industry headwinds in other areas.”
Total assets under management and administration rose slightly from £447bn at the end of 2017 to £449bn.