Schroders chief executive Peter Harrison (pictured) credited the “strategic decisions” the firm took several years ago with helping to generate net new business of £35.3bn in 2021.
Assets under management rose 10% to “a new high” of £731.6bn, the firm said, with net income up 18% at £2.6bn.
“The areas where we have invested for growth have delivered strongly,” said Harrison, citing performances “across our partnerships, wealth, private assets and our sustainability franchise”.
The board has, therefore, recommended a total dividend of 122 pence per share, up 7% from last year.
See also: Schroders’ joint ventures pay off with £13bn AUM boost
Three strategic priorities
Schroders said: “Our strategy has delivered robust organic growth, with strong contributions from our private assets and alternatives and wealth management businesses, our range of mutual funds and geographic expansion, as well as our Asian joint ventures and associates.”
It identified three priorities to deliver future revenue growth:
- – Growing its wealth management business,
- – “Tilting” its asset management business “towards fast flowing waters in our industry”
- – Expanding its private assets and alternatives capabilities.
“Continued good momentum” was reported across the four wealth management franchises: Cazenove Capital, Schroders Personal Wealth, Schroders Wealth Management and Benchmark Capital.
Across the wealth segment, net income rose by 13% to £433.7m, while AUM hit £81.2bn (£72bn in 2020). Net new business more than doubled to £4.1bn from £1.7bn a year ago.
Assets under management across its private assets and alternatives businesses jumped 16% to end 2021 at £53.7bn, up from £46.1bn a year ago.
Schroders Capital generated £7.4bn of net new business, while the liquid alternative division saw net outflows of £0.5bn – which is an improvement from the £1.2bn in net outflows in 2020.
The firm said it “saw strong demand” for its securitised credit, private equity and real estate offerings, which it expects to continue “over the coming years”.
Triple acquisitions
Schroders’ joint ventures and associates delivered annual AUM growth of 31%, ending the year at £116.4bn, which could go some way to explaining why the firm remains acquisitive.
The fourth quarter of 2021 saw Schroders announce three strategic acquisitions:
- – River and Mercantile’s Solutions business – adding £43.1bn AUM,
- – Dutch real estate specialist manager Cairn Real Estate – adding €1.3bn (£1.08bn) AUM,
- – 75% of European renewable infrastructure manager Greencoat Capital – adding £6.8bn AUM.
“These businesses give us new capabilities, all in high-growth markets with attractive revenue growth outlooks,” Schroders said.
