Schroders Plc reported record assets under management as negative interest rates prompted investors to turn to money managers to generate income.
Assets rose 7 percent in the first three months of 2015 to 319.5 billion pounds ($494 billion), helped by 5.1 billion pounds of net inflows, the U.K.-based company said Thursday. About 2.9 billion pounds was invested in fixed income, with the remainder in multi asset and equity funds.
“Investors are looking for ways to defend the value of their money when cash is yielding nothing or even negative and bonds are doing similar,” Chief Executive Officer Michael Dobson said in a telephone interview. They are “seeking yield and looking for ways to generate income either in multi asset funds, equities or credit.”
Schroders and London-based competitors Henderson Group Plc and Jupiter Fund Management Plc have all seen their shares climb by more than 20 percent this year in line with a rally in global equities. Henderson said Tuesday their assets were also at a record as monetary stimulus from the European Central Bank encouraged clients to invest.
Schroders’s wealth management business reported 200 million pounds of net inflows in the first quarter, boosting assets to 32.6 billion pounds. Dobson said the unit, which last year bought Cazenove Capital Holdings Ltd., was performing on target.