Weak sterling propels funds at Schroders to record high

The UK’s biggest standalone asset manager Schroders received a headline £30 billion boost to funds after the pound’s slump to a 31-year low, despite rockier sales beneath the surface.

Assets under management rose to a record high of £344 billion because of the deep decline in sterling after the June 23 EU vote.

The figure was calculated on June 30, when its first-half results were drawn up using the exchange rate at the time.

The venerable fund giant saw less new money for the half year — £700 million in total, down from £8.8 billion in 2015 after Brexit wobbles saw customers pull £2 billion from funds in the final three months.

The pull-back was the sting in the tail for the group, which managed to cushion the fall by diversifying away from the UK and Europe. The juggling act left profits better than analysts had expected, down at £282 million from £290 million.

“There are so many moving parts in the world and the key for me is balance,” chief executive Peter Harrison said. “You need to be riding lots of different horses in this race.”