Statutory profit before tax rose 102% (year-on-year) for asset manager Schroders to £396.8m in the first half of 2026, driven by financial performance, portfolio simplification and a decrease in costs.
As at 30 June, assets were at a record high of £867.8bn, which the active asset manager attributed to supportive markets, FX and investment performance.
Despite record assets, the asset manager reported net outflows, including joint ventures and associates, were £4.2bn.
Gross inflows were £69.3bn, an increase of over 40% year-on-year.
Intermediary assets under management as at 30 June were £157.5bn, with net inflows of £3.3bn via intermediaries over the half.
Schroders claimed that 72% of its assets managed outperformed their comparator on a one year basis, 71% over three years and 69% over five years.
The asset manager has been undergoing a, ‘transformation’ process since March 2025 which it says is now near completion. So far it has met 98% of its £150m annualised cost savings target.
The transformation programme has included portfolio simplification, including the sale of its Benchmark business.
Schroders first invested in Financial Planning solutions provider Benchmark in 2016 and sold its stake to Swedish wealth manager Söderberg & Partners in July. Benchmark currently supports around 1,000 advisers across the UK. It partners with 200 financial advisory firms and has £31bn of assets under influence.
Schroders says the disposals will create a more focused business and enable it to concentrate investment in its areas of greatest strength.
The asset manager has also proposed combining with fellow asset manager Nuveen, with the deal expected to complete in the fourth quarter.
The Schroders’ board and shareholders have backed the takeover by Nuveen in a deal worth about £9.9bn. As part of the deal the founding Schroders family will sell its 40% stake in the firm, ending a 200-year era for the firm.
Under the takeover, the Schroders brand will be retained, with London acting as the combined group’s head office outside of the US, with around 3,100 staff.
Nuveen will establish a new subsidiary to acquire Schroders, with the combined companies holding close to $2.5trn (£1.8trn) in assets under management.
Following the financial results, the Schroders board declared an interim dividend of 7 pence per share (H12025: 6.5 pence per share).