Chairman Michael Miles and chief investment officer Alan Brown are to step down from the Board at its next AGM on 3 May. The former, who has been chairman since 2003, will be replaced by Andrew Beeson, senior independent director. No replacement has been announced for Brown, though he will stay with the firm in a senior advisory role.
In its annual results for 2011, Schroders announced pre-tax profits of £407.3m, up from £406.9m in 2010, with growth in both its asset management and private banking divisions. However, net new business plunged dramatically to £3.2bn from £27.1bn in 2010.
The group blamed macro-economic concerns and equity market volatility for £3.8bn net outflows in its intermediary business, down from the £7.9bn inflows registered a year earlier. Total assets under management totalled £62.9bn (£74.1bn in 2010).
The institutional business registered £6.8bn of inflows (down from £16.8bn in 2010), while 70% of Schroders funds are claimed to have outperformed their benchmark or peer group over three years to the end of 2011.
Signs of progress
There was a more positive story for the much smaller private banking arm as net revenue climbed £11m to £114.3 and pre-tax profits more than doubled from £10.1m to £23.8m. Assets under management totalled £16bn.
“Since the year end, the tone in markets has improved as investors have seen signs of progress in the resolution of some of the problems of the eurozone,” read the statement.
“Retail investor demand has recovered somewhat and we have generated positive net flows in both institutional and intermediary. However, financial markets are likely to remain volatile as the process of reducing government debt will be a long one and economic growth will remain subdued.”
