Schroders plc (SDR) Vtg Shs Ordinary GBP1
HL comment (6 November 2014)
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- The company reported a 16% rise in pre-tax profits to £404.4 million.
- Revenue rose to £1.1 billion from £1 billion a year earlier.
- Total assets under management amounted to £276 billion, up from £256.7 billion a year earlier.
- New business inflows over the nine month period were £7 billion, spread across all asset classes.
- The Chief Executive highlighted the "adverse impact" on profit of £27 million due to sterling's strength.
- Schroders, like its peers is exposed to market risk arising from market movements which could cause a fall in investments and a decline in the value of assets under management.
- The group's overseas operations are subject to foreign exchange rate risk.
- At the heart of any asset manager is the investment team. As with any fund management business, there is a risk that if a "star" manager leaves, investors and assets under management may follow.
- Assets under management climbed to £276.2 billion, up from £256.7 billion in September 2013.
- Schroders also said in a statement that it has a significant pipeline of new institutional business won which has not yet been funded.
- The fund manager could be well positioned to benefit from the government's plans to shake up the pensions and savings industry.
- Headquartered in London with 27 offices worldwide, Schroders can trace its history back to 1804.
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