Michael Dobson, Schroders’ chief executive, admits that more City institutions will pull their money from the UK fund manager over the coming weeks.
He also refuses to call a trough for the outflows, which are £2.4 billion ahead in net terms on 2005 and just £400 million short of the 2004 level.
Ironically, this smacks of confidence. Mr Dobson says UK clients that have dumped Schroders’ balanced funds are returning with different mandates, and with fees that are on average 31 per cent higher than before.
Record interest from individual investors added £6.6 billion to the retail pot last year. And the formerly loss-making private bank now generates 10 per cent of group profits. The confidence extends to acquisitions, with two hedge funds bought last