Profit before tax fell by 10% to £306.2m in Schroder’s half-year results, down from the £340.4m reported the year prior.
Despite “significant” market weakness towards the end of the first quarter, assets under management increased by 5% to reach a “record” high of £525.8bn, however.
This was largely due to the funding of a number of Solutions mandates at lower revenue margins, the net operating revenue margin excluding performance fees, carried interest and real estate transaction fees.
Britain’s largest listed fund manager also generated total net inflows of £38.1bn, again following “positive” contributions from Solutions and Wealth Management.
Nonetheless, net operating revenue fell by 2% to £971.6m, which includes performance fees and net carried interest of £18.9m, while net income declined 3% to £1.03bn.
This was partially offset by a “continued strong performance” from its joint ventures and associates, which contributed £27.6m in the first half of the year.
Peter Harrison, group CEO, said: “We have delivered a robust performance in the first half of 2020, despite the extraordinary period of market volatility and continuing social and economic uncertainty.
“Through their efforts, and aided by the investments we have made in technology, our diversified business model has continued to perform well, enabling us to generate £38.1 billion of positive net new business. We saw client demand for Solutions strategies as well as momentum across Wealth Management.”
He added: “Through directors’ contributions and employees’ donations, we have collectively raised around £4 million for charities dedicated to supporting those most affected by Covid-19. We have not furloughed any employees, enacted any related redundancy programmes or sought any government assistance globally.
“We have declared an unchanged interim dividend and continue to maintain a strong capital position, allowing us to invest in the future growth of the business. We are mindful of short-term risks, but believe that we will continue to generate value over the long term for our clients and our shareholders.”