* Q1 net inflows 5.6 bln stg vs year-ago 1.6 bln
* Net assets rise to 236.5 bln stg
* Warns strong retail demand unlikely to continue
LONDON, May 2 British fund manager Schroders
attracted 5.6 billion pounds ($8.7 billion) of net new
money in the first quarter, buoyed by strong retail demand for
equities that it warned was unlikely to continue.
In a trading statement on Thursday, Schroders said assets
under management rose to 236.5 billion pounds by the end of
March, up 11.5 percent from 212 billion in December, with the
rise coming from inflows and positive investment performance.
The net new money was far more than in the first quarter of
last year, when Schroders added 1.6 billion pounds.
While Schroders' asset management business saw strong net
inflows, its private banking unit reported 200 million of net
outflows. Schroders said its acquisition of rival Cazenove
Capital - a move to bulk up its business of serving wealthy
private banking clients - was is on track to complete in July.
Analysts at brokerage Numis described the update as "a good
set of results", with net inflows 1 billion pounds higher than
it had forecast.
Rallying stock markets this year have encouraged investors
to put more of their money in funds.
For some, such as Aberdeen Asset Management and
Ashmore Group, the first quarter was one of their
strongest for attracting new money in several years.
"We saw significant retail investor demand in the first
quarter on the back of buoyant equity markets. While we do not
expect demand to continue at this level, we remain well placed
for continued growth," Schroders said in the statement.