Profits at UK fund management group Schroders' for 2007 were up 35% on the previous year as stronger than expected high-margin inflows partially offset continued institutional outflows.

For the full year 2007, the company reported profits before tax of £392.5m, compared to a profit of £290m in the same period of 2006. Despite market weakness, the fourth quarter was the strongest quarter for Schroders' core asset management and private banking businesses.