Net new business for the wealth management arm of asset manager Schroders grew by 7% (£3.7bn) over the six months ended 30 June.

Schroders’ wealth management business is comprised of Cazenove Capital, Benchmark and Financial Planning arm Schroders Personal Wealth.

The three businesses service clients across the mass affluent sector through to ultra-high-net-worth clients.

The strong performance in the half was primarily driven by Cazenove Capital, which reported net new business of £2.3bn, according to the firm’s unaudited results published today.

The asset manager’s Financial Planning joint venture with Lloyds Banking Group, Schroders Personal Wealth, reported £0.2bn in net new business over the half, with an increase in the client conversion rate and average new client portfolio size.

Assets under management for Schroders’ wealth management segment, including joint ventures, were £134.5bn at 30 June, an increase of 8% on the previous half (31 December: £124.5bn).

The division contributed £3.2m in profits to the group (H1 2023: £1m), and net operating income increased 11% to £240.2m (H1 2023: £215.9m).

Operating profit for the wealth management division increased 10% to £83.7m (H1 2023: £75.9m).

Peter Harrison, group CEO of Schroders, said: “Today’s results are further validation that our long-term strategic pivot is helping us to navigate the structural changes our industry is facing. Our capabilities in wealth management, private markets and solutions are enabling us to take advantage of the growth opportunities we have identified and to deliver the investment solutions that our clients need.”

Assets under management for parent asset management firm Schroders rose to a new high of £773.7bn for the six months ended 30 June. However, operating profit dropped almost 10% to £315m (H1 2023: £341.4m).