Dividend cheer at Schroders

SCHRODERS, the fund management giant, has upped its full-year dividend for the first time in five years after a near-tripling of annual profits.

The revival in Schroders' fortunes comes on the back of the firm's drive to increase its exposure to higher-margin retail savings products, in the face of a turbulent world for managing lower-margin institutional savings.

Chief executive Mike Dobson said this year's 'reasonable start' was likely to continue provided the equity markets maintained their recent drive upwards.

Pre-tax profits grew to £191m for the year to 31 December from £65m in 2003, driven by a near-doubling of asset management profits to £123.4m and £83.6m of private equity gains, five times more than last year.

Funds under management rose to £105.6bn from £98.9bn despite a net outflow of £8.4bn of institutional business.

A final dividend of 13.5p brings the full-year payout to 20p per share, up from 18.5p.

? Profits at wealth manager St James's Place Capital grew 37% to £142.3m, helped by new business volumes surging 17% to £1.2bn. This gave new business profits of £38m, up 52% on 2003.