London-based asset manager Schroders plc said on Thursday its 2021 profit before tax rose 25% to £764.1 million and its assets under management (AUM) increased by 10% to a new high of £731.6 billion.
On Tuesday, Schroder’s Edinburgh-based rival Abrdn reported that its IFRS profit before tax rose to £1.115 billion from £838 million and assets under management and administration rose £7 billion or 1% to £542 billion.
“We have developed capabilities in the strategic growth areas of private assets and alternatives and wealth management, expanded our geographic reach and evolved our product range …” said Schroders.
“We continue to broaden our business towards resilient and high growth areas, such as wealth management and private assets.”
The London firm recommended a total dividend of £1.22, an increase of 7%.
Schroders CEO Peter Harrison said: “2021 was an important year for Schroders.
“Our pre-tax profits were up 25%, earnings per share were 28% higher and we generated net new business of £35.3 billion.
“These results benefitted from the strategic decisions we took several years ago, improving both the resilience of our business and its long-term growth potential.
“Delivering excellent investment performance is always our primary focus; it was pleasing that 79% of assets outperformed on a three-year basis.
“Importantly, the areas where we have invested for growth have delivered strongly.
“Performance across our partnerships, wealth, private assets and our sustainability franchise accelerated and enabled us to better serve a wider group of clients.
“We continue to invest for the future.
“Most recently we have further expanded our capabilities.
“As a renewable energy manager, Greencoat Capital reinforces our leadership position in sustainability and will help enable our clients’ net zero responsibilities.
“River and Mercantile’s Solutions business enables us to expand our fiduciary management capabilities.
“These businesses will enhance our resilience and contribute to future growth.”