Non-public markets contributed to the expansion of Schroders’ property underneath administration (AUM) final yr, regardless of ongoing financial headwinds.
The asset supervisor grew its AUM to £750.6bn in 2023, a two per cent rise from £737.5bn the earlier yr. This was regardless of an antagonistic overseas alternate headwind of £25.8bn.
Nonetheless, the corporate reported that whereas closing AUM for the yr was up, “we entered 2023 with a headwind from depressed market values following the autumn in markets within the second half of 2022.”
This impacted revenues, which had been down by one per cent yr on yr.
Learn extra: Non-public debt sector poised for inflow of pension cash
“In probably the most difficult years for international energetic asset managers in latest instances, our resilient efficiency in 2023 demonstrated the constant execution and advantages of our long-term technique for purchasers and shareholders,” mentioned Peter Harrison, group chief govt of Schroders.
“In 2016, we got down to construct a stronger presence throughout personal markets, wealth administration and options. The sturdy development charges of those companies imply they now account for 56 per cent of our AUM and 48 per cent of our internet working income.
“We noticed notable development in property underneath administration and optimistic internet new enterprise, successful necessary new purchasers. Our wealth administration advisory enterprise achieved a standout efficiency, with sturdy suggested natural development.
Learn extra: “Compelling” alternative for brand spanking new capital in direct lending
“Schroders Capital noticed good fundraising towards a tricky backdrop, and we noticed optimistic internet flows throughout all 4 pillars, particularly actual property. This efficiency was underpinned by our differentiated technique.”
Schroders Capital raised £9.3bn in 2023, and the corporate reported optimistic internet flows throughout all 4 pillars of its personal markets enterprise, together with personal debt. The corporate confirmed that it has £4bn in non-fee incomes dry powder able to be deployed.
“We anticipate an enchancment in fundraising and deployment dynamics over the medium time period,” the corporate reported.
“The power of the long-term structural tendencies that underpin the shift to personal markets stays sturdy. This, mixed with our properly diversified product vary and the progress made to additional scale our platform provides us confidence within the outlook for this enterprise.”
Schroders additionally introduced that Rhian Davies won’t stand for re-election to the board on the upcoming annual normal assembly. Iain Mackay will succeed Davies as chair of the audit and threat committee.
Learn extra: Goldman Sachs launches personal credit score fund for wealth market
