* H1 AuM at 271.5 bln stg, up 15 pct from year earlier
* Revenue, Q2 inflows weaker, lag expectations
* Pretax profit 233.9 mln stg, FX hit of 18 mln stg
* Interim dividend up 50 pct to 24 pence
* Shares down 2.4 pct
(Adds CEO quote, analyst reaction, shares, detail)
By Simon Jessop and Nishant Kumar
LONDON, July 31 UK-listed fund manager Schroders
posted first-half revenue on Thursday that lagged
expectations, sending its shares lower even as assets under
management hit a record high.
The sector has had a weak earnings season so far, with
shares in Jupiter Fund Management and Aberdeen Asset
Management both falling sharply this week after their
results failed to live up to more positive market forecasts.
Schroders said that while the strong equity market gains of
2013 had not been maintained in the opening six months of this
year, its assets under management still climbed 15 percent
year-on-year to a record 271.5 billion pounds ($458.6 billion).
It attracted a net 4.8 billion pounds into its funds during
the period, against 4.3 billion a year earlier, but
second-quarter flows of 1 billion lagged consensus forecasts of
around 2 billion as money left its commodity funds.
It also missed analyst expectations for revenue, net income
and earnings per share, Thomson Reuters data showed, with
revenue at 728.6 million pounds against a 730.8 million
"It was a mixed set of results. The top line was a bit weak
around flows, although they made up for that on costs," said
Bruce Hamilton, analyst at Morgan Stanley.
Shares in Schroders were down 2.4 percent at 0840 GMT in a
flat FTSE 100 index.
While the second quarter was hampered by outflows from the
company's institutional business, over the six months it took in
3.8 billion pounds from retail clients, mostly into its
multi-asset and equity funds.
At the start of the third quarter, the company said it had
seen good inflows from both institutional and retail clients and
had a strong pipeline of unfunded institutional business,
although this was offset by a more cautious retail outlook.
"We have a very strong pipeline of business we've won in
institutional, by far the highest we've ever had, but which has
not yet been funded," Chief Executive Michael Dobson said.
Pretax profit rose 6 percent to 233.9 million pounds over
the six months, after an 18 million pounds hit due to the
strength of sterling, and the company said it would pay an
interim dividend of 24 pence a share, up 50 percent.
"It's quite a bit ahead of what the market was expecting and
it reflects these strong results and the board's confidence in
the long-term outlook," Dobson said.
($1 = 0.5911 British Pounds)
(Editing by David Holmes)