Key facts
- Schroders' profit before tax nearly doubled to £396.8m in the first half of the year.
- Assets under management reached a record £867.8bn, a 12% increase from the prior year.
- The company's acquisition by Nuveen is anticipated to finalize in the final quarter of 2026.
- Schroders has achieved over 98% of its planned £150m in annualised cost savings.
- The public markets division faced significant outflows of £11.7bn.
Schroders reported a significant increase in profit before tax, reaching £396.8m in the first half of the year, up from £196.9m in the same period last year. This surge was attributed to improved financial performance and reduced portfolio simplification costs. The company's assets under management (AUM) also hit a record high of £867.8bn, marking a 12% increase from the previous year's £776.6bn. Schroders credited this growth to enhanced client sentiment, favorable foreign exchange movements, and strong investment performance.
Despite overall AUM growth, Schroders experienced net disposals of £6.8bn and total net outflows of £4.2bn, primarily driven by its public markets division which saw outflows of £11.7bn. This was attributed to competition from low-cost passive alternatives and market volatility. In contrast, the wealth management segment recorded inflows of £2.5bn, with Cazenove Capital contributing £2bn, reflecting growing interest in its core business.
Schroders has also made substantial progress on its cost-saving initiatives, delivering over 98% of its planned £150m in annualised cost savings and reducing its adjusted cost to income ratio below 70%. Gross inflows saw a slight increase to £69.3bn. The board declared an interim dividend of 7p per share, an increase from 6.5p in the prior year.
The acquisition of Schroders by US funds group Nuveen for £9.9bn is expected to be completed in the final quarter of 2026, pending regulatory approval. Group chief executive Richard Oldfield expressed optimism about the future potential of the combined business.