Trio of investment firms hail robust results amidst market turmoil

Three of London’s most prominent investment managers have all reported resilient performances against a challenging macroeconomic backdrop.

Schroders, St James’s Place and Jupiter Fund Management each published their results for the six months ending June on Thursday.

The largest of them, Schroders, revealed pre-tax profits declined by 12 per cent year-on-year to £275.6million while assets under management slumped to £726.1billion amidst rising market volatility and weaker investor confidence.

Performances: Schroders, St James’s Place and Jupiter Fund Management each published their results for the six months ending June on Thursday

Elevated inflation levels and interest rate hikes by central banks have pushed up borrowing costs, resulting in much greater investor uncertainty.

Yet Schroders reported £5.7billion of net new business during the half-year period, with its wealth management arm attracting the highest amount of £3.7billion.

The group’s ‘solutions’ division also saw a big boost in net inflows, having been badly impacted by the liability-driven investment crisis last autumn in the wake of former Prime Minister Liz Truss’s controversial mini-Budget.

Peter Harrison, chief executive of Schroders, said: ‘Our business strategy has enabled us to deliver resilient results in the face of ongoing industry headwinds.

‘Clients continue to value our differentiated investment capabilities and entrust us to manage their assets for the long term.’

Schroders shares budged up just 0.8 per cent, or 3.7p, to 463.7p, and have fallen by approximately 15 per cent in the past year.

By comparison, Jupiter Fund Management shares were the fourth-best performer on the FTSE 250 Index, rising by 6.4 per cent, or 6.9p, to 115p, as it declared profits soared by 85 per cent to £34.8million.

The company achieved its first 12-month period of positive net inflows in six years thanks to stronger demand from institutional clients.

It also registered £2billion of net inflows from overseas clients, supported by solid performances in Asia, continental Europe and the Americas.

Jupiter’s international business is now responsible for 36 per cent of its overall assets under management.

Matthew Beesley, CEO of Jupiter, said: ‘It’s clear from these results that our strategic focus is generating positive outcomes, and we are confident that continuing to deliver on the strategy will help to return Jupiter to sustained growth.’

Investors responded less favourably to the results of St James’s Place, which declared a 22 per cent drop in profits to £161.7million even though its funds under management rose to a record £157.5billion.

The group witnessed a rise in surrender rates among Isa portfolios and smaller unit trusts by people looking to ‘smooth the impact’ of current inflationary pressures.

St James’s Place shares were the biggest faller on London’s blue-chip index, plummeting by 16 per cent, or 189.6p, to 993.4p.

‘This has been a challenging period for many UK savers and investors who have had to contend with high and persistent inflation, rising borrowing costs, a mini banking crisis in the US and attendant stock market volatility, and continued macroeconomic and geopolitical uncertainty,’ said chief executive Andrew Croft.