Too early to say the market is turning, says Schroders CEO

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A Schroders sign is seen outside a building in the City of London, Britain March 22, 2013. REUTERS/Toby Melville

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LONDON, July 28 (Reuters) – It is too early to end the fall in financial markets caused by the war in Ukraine, the chief executive of Schroders (SDR.L) said on Thursday, as shares of the fund manager British reached six weeks. highs on a slight rise in assets under management.

Asset managers suffered as markets fell following the invasion of Ukraine, which Russia calls a “special military operation”, while high inflation also forced savers to tighten their belts .

Global stocks (.MIWD00000PUS) have fallen 10% since the dispute began in February, although they have broken through their lows in recent days.

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“It’s going to remain difficult,” Peter Harrison told Reuters, stressing the likelihood of a “long war” in Ukraine.

“You’re going to have sustained uncertainty in energy prices with inflation stickier, especially in the UK. It took us five years to recover from 2007-08, we’re not looking to call the turning.”

Shares of Schroders jumped 4.5% to six-week highs, making it one of the best performers on the FTSE 100 (.FTSE), as the company bucked the trend lower assets seen at other fund managers with a 1% increase in assets under management to 773 billion pounds ($941.51 billion) in the first half.

KBW analysts called Schroders’ results “strong,” reiterating their “market performance” rating on the stock.

The asset manager said it has seen an appetite for higher yielding assets such as private equity, as well as its wealth management division.

It recorded net inflows of £8.4bn, also helped by its recent purchase of River & Mercantile’s retirement solutions business.

But the more traditional mutual fund and institutional client sectors saw net outflows of £2.9bn and £7.6bn respectively.

Harrison said the asset manager has no other near-term acquisition plans.

“We’re sitting on our hands. With the world we find ourselves in today, understanding the true earning potential of a business…is very difficult.” But he added there were “many conversations inevitably still in the background”.

Also on Thursday, St James’s Place (SJP.L) reported a 7% decline in assets under management for the first half, and Rathbones (RAT.L) reported a 14% drop in assets under management and administration.

($1 = 0.8210 pounds)

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Editing by Jason Neely and Jane Merriman

Our standards: The Thomson Reuters Trust Principles.

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