Schroders, the UK investment group, returned to profitability in 2002 with a £18.9m pre-tax result despite a slump in fund management profits and assets.

Private equity helped drive the improved group results, contributing £12.9m in pre-tax profit compared to a £19.6m loss by the business in 2001. Profits from asset management, including those of Schroder Investment Management, its UK subsidiary, were down 55.3% to £24.7m.