Assets under management (AUM) and administration (AUA) hit a high of £447bn ($619bn, €506bn), up 13% from £395.3bn at the same time last year.
In a statement, the firm said this was driven by “strong investment performance, acquisitions aligned with our strategic priorities and net new business from clients”.
The asset manager reported a 23% jump in pre-tax profits to £760m, up from £618m in 2016, according to its 2017 results.
Schroders added that weakness in sterling in the first half of the year, compared to 2016, contributed positively to profit before tax and exceptional items by around £27m. However, sterling strengthen in the second half of the year reduced AUM by around £12bn.
Group chief executive Peter Harrison attributed the firm’s strong results to its diversified business model.
“Focusing on the longer term, we have continued to see good progress in a number of key strategic areas, with the expansion of our investment capabilities in private assets, an improvement in wealth management and strong underlying momentum in North America.
“There are headwinds facing the industry, but we continue to believe that there remain opportunities for growth. Our diversified business model, ongoing focus on costs, strong financial position and willingness to invest mean that we continue to be well placed.”
Asset management vs wealth management
Profit before tax and exceptional items in Schroder’s asset management arm rose 23% to £705.9m from £572.4m in 2016. Pre-tax profit was up 24% to £688.7m.
Total AUM at the end of 2017 was £389.8bn, up from £346.4bn in 2016 and the asset manager generated net inflows from clients of £7.6bn, compared to just £1.4bn in the previous year.
Additionally, net operating revenue increased by 17% over the results period to £1,743m and Schroders said it generated performance fees of £77.5m.
Meanwhile, in the firm’s wealth management arm profit before tax was up 20% to £67.4m, from £56.m in 2016. AUM for 2017 was at £45.9bn from £39.6bn in 2016 and AUA increased by 22% to £11.3bn from £9.3bn.
The news follows as Schroder’s Kevin Murphy and Nick Kirrage were stripped of their Alpha Manager status in FE’s latest rebalance.