UK – Schroders said it expects to spend more on portfolio management and research this year than it did in the last two years.

“During 2003, we continued to invest in strengthening our portfolio management and research capabilities,” the fund management firm said in its 2003 earnings release.

“This year we expect to spend more on portfolio management and research than we did in either 2002 or 2003.” Spokesman Julian Samways declined to put a figure on the extra spending, and said the money could be spent on items such as information systems, infrastructure or new hires.

Profits before tax and goodwill, but after exceptional items, rose to 75.9 million pounds (114 million euros) for 2003 - from 29.5 million pounds a year earlier.

Core asset-management profits – calculated by stripping out private equity gains and other group earnings - rose 5.2% to 81 million pounds from 77 million pounds in 2002. Asset management net revenues fell 5.1% to 417.8 million pounds.

Assets under management rose to 98.3 billion pounds from 90.4 billion pounds at the end of the third quarter.

"2003 was a year of good progress with higher profits, better investment performance and reduced net business outflows," the company said.

The company put in place a “simpler” management structure in place in September which sees asset management operate through four divisions: investment, distribution, private banking and infrastructure.

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