Schroders earned $567.8 million in asset management total revenues through the six months ended June 30, a whopping 28% from $444.4 million in the first half of 2004. The increase is a further improvement in gross margins, as both retail and high-margin institutional businesses drove profits, Schroders reported.
Sixty-four percent of institutional assets outperformed their benchmarks this year.
Net business outflows from institutional assets in the first half of 2005 were $3.6 billion, Schroders said. In fact, the 201-year-old London asset management firm has seen institutional assets decline sharply, Bloomberg reports. As a result, the firm is now targeting higher-margin, retail mutual fund investors.
"Schroders has done well from the reorientation of its business from institutions to individuals," Rick Lacalle, State Street U.K. CIO, told Bloomberg.
Institutional funds under management were $129.9 billion at the end of June, the firm said.
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