Schroders sees volatile times ahead for investors after assets hit £300 billion

Fund manager Schroders has warned financial markets are likely to become more volatile this year after a calm start to 2015.

The company saw its assets under management hit the £300 billion mark last year on the back of net inflows of £24.8 billion.

Pre-tax profits were up 16% to £517.1 million and its full-year dividend increased by 34% to 78p.

Michael Dobson, chief executive, said: “In an extraordinarily low interest rate environment financial markets have been resilient despite numerous macro-economic uncertainties.

“This may continue for some time although we expect to see greater volatility in markets and therefore in investor demand in 2015.

“Our focus remains on the long term, where we see a wide range of growth opportunities in the UK and internationally.”

The shares rose 2.5% to 3109p.

Analysts at Numis described Schroders as a “little dull and boring”.

However, they added: “Schroders is by far the most diversified UK-listed asset manager (by asset class, geography, client type), has one of the strongest balance sheets and its unique ownership structure (with 45% of the votes controlled by the family) helps foster genuine long-term management decision making.”