Schroders has reported a 28% jump in pre-tax profit to £644.2 million for 2024, as assets under management reached a record high of £868 billion. The strong performance was driven by robust investment returns and net inflows across its wealth management and asset management divisions.
Record Assets Under Management
The London-based investment manager saw its assets under management climb from £749 billion at the end of 2023 to £868 billion by December 2024, marking a 16% increase. The growth was attributed to market appreciation of £91 billion and net inflows of £28 billion, according to the company's annual results published on Thursday.
Schroders' wealth management division reported net inflows of £10.1 billion, while its asset management arm attracted £17.9 billion in new client money. The firm's private assets and alternatives business also contributed significantly, with assets under management rising to £78 billion from £65 billion a year earlier.
Profit and Revenue Growth
Pre-tax profit for 2024 rose to £644.2 million, up from £504.4 million in 2023, exceeding analysts' expectations. Revenue increased by 11% to £2.7 billion, driven by higher performance fees and management fees linked to the rise in assets under management.
"We have delivered a strong financial performance in 2024, with record assets under management and a significant increase in profitability," said Peter Harrison, Schroders' chief executive. "Our diversified business model, combined with disciplined cost management, has enabled us to capitalize on market opportunities and deliver value for our clients and shareholders."
Strategic Initiatives and Outlook
Schroders has been focusing on expanding its private markets and wealth management capabilities to capture growth in these high-demand areas. The firm recently acquired a majority stake in a US-based private credit manager and launched a new sustainable investment fund.
Looking ahead, Harrison said the company remains cautiously optimistic despite geopolitical uncertainties and market volatility. "We are well-positioned to navigate the evolving landscape, with a strong balance sheet and a clear strategy to deliver long-term growth," he added.
Schroders declared a final dividend of 15.0 pence per share, bringing the total dividend for the year to 22.0 pence, up 5% from 2023. The company also announced a £150 million share buyback program, reflecting its confidence in future prospects.
