LONDON (ShareCast) - (Sharecast News) - Asset manager Schroders posted a slide in annual profits on Thursday, after a historically "challenging" year for the sector.
The blue chip saw assets under management grow to £750.6bn in the year to December end, from £737.5bn a year previously.

The improvement was driven by positive net new business, market movements and investment performance.

But net operating revenues eased to £2.3bn from £2.4bn, while operating profits slid to £661m from £723m.

Schroders said the asset management industry had faced "one of the most challenging years in recent times", with a "turbulent" macroeconomic backdrop, volatile markets and geopolitical unrest.

Unfavourable foreign exchange rates further dented profits.

However, the firm struck a more optimistic tone for the current year, despite ongoing geopolitical uncertainty.

Peter Harrison, chief executive, said: "Looking forward, the markets remain unsettled because of geopolitical uncertainty in a year of electoral change.

"While our profits last year were impacted by headwinds in the markets and adverse foreign exchange rates, we took steps to pro-actively manage our cost base and delivered initiatives to enable further reinvestment in the business.

"We therefore start this year in a strong position to capitalise on some interesting market opportunities, with the prospect of interest rates falling and the rotation of clients' assets back into risk assets."

As at 0915 GMT shares in Schroders were ahead 1% at 390.6p.

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