Schroders saw its assets under management rise 23% in 2016, the largest AUM growth in its asset management peer group, according to a new study by Moody's.
A report by Moody's tracked fund flow trends at 22 European asset managers including UK firms Aberdeen, AXA, Aviva, Schroders, Henderson, LGIM, Jupiter, Standard Life, Ashmore and M&G.
Schroders, led by group chief executive Peter Harrison (pictured), saw its assets under management increase the most with a 23% rise thanks to the devaluation of the pound.
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The firm's assets under management were €452bn as of the end of 2016.
The fact it has substantial operations in continental Europe also limited the operational risk and costs as a result of Brexit, according to Marina Cremonese, senior analyst at Moody's.
Looking at the sector overall, Moodys said assets under management grew by 7.9%.
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However, some 11 out of the 22 firms surveyed reported outflows during the period, including Deutsche Asset Management, which saw outflows of 5%, and Aberdeen Asset Management.
Advisory fees were down 2% overall but the report highlighted Ashmore had managed to grow its advisory fees 10% year-on-year.
Operating margins continued to increase thanks to a reduction in distribution costs, which contracted for all but two managers.
Distribution costs are also coming down because of an increased focus on fee transparency.
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Moody's issued a note last year issuing a 'negative' outlook for the global asset management industry, driven by the accelerated rotation of assets into low-fee passive products, fee pressure across nearly all industry segments, and high asset valuations and global macro divergences, which increase tail risks.
The sector is also under pressure from regulatory developments that constrain sales and increase compliance costs, Moody's highlighted.
Senior analyst Cremonese commented on the asset growth: "Despite financial market turbulence, the group of companies we surveyed managed to increase total assets under management in 2016.
"However, organic growth, as measured by net fund inflows, was flat and many managers, particularly independent and bank-owned operators, experienced net outflows."
