Group and Private Equity

Schroders’ profit before tax on its private equity portfolio rose to £58.5 million from £34.6 million a year ago as a result of a high level of realizations.

Also, profit before tax from Group was £26.2 million from £9.5 million in 2006.

The company expects a reduced level of private equity realisations in 2008 and lower returns on seed capital investments as the global financial markets becomes constrained.

Outlook

Schroders forecasted that volatile market conditions will persist in 2008 as the subprime crisis affects investor risk appetite and retail flows across the industry.