Schroders reports sharp fall in profits
Asset management group Schroders on Tuesday unveiled a sharp fall in third quarter profits as outflows from its funds accelerated.
Schroders 35% profit rise in 2007The group said pretax profit sank to 78.0 million pounds in the third quarter from 98.1 million a year earlier, with investors withdrawing 4.1 billion pounds from its funds in the period.
Schroders said retail investors became "increasingly affected" by the sharp declines in equity markets.
Assets under management at end of September were 114.7 billion pounds, down from 139.1 billion pounds at the end of 2007 as asset values dropped and investors withdrew 5.3 billion pounds over the nine-month period. "In an environment of sharply lower equity markets and significantly reduced investor demand, asset management revenues will inevitably decline further," the firm said in a trading statement.
The fund management industry has been hit by heavy redemptions as investors seek safety in cash.
(Reporting by James Molony; Editing by Chris Wickham)
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