Investing
The Cazenove effect: Schroders’ profits soar
Schroders recorded third quarter pre-tax profits of £121.6m, it said today, a 37% increase from £88.6m in Q3 2012, as the impact of the acquisition of Cazenove boosted its numbers.
Profits for the nine months to 30 September hit £349.6m, also up sharply by 31% from 2012’s figure of £266m.
Q3 net inflows into the firm’s asset management arm totalled £1.7bn, including £600m into Cazenove funds, taking net inflows for the nine months to £6.5bn.
However, its wealth management arm recorded Q3 net outflows of £700m after the loss of a large custody account. Net outflows year to date are £1bn.
CEO Michael Dobson (pictured) said the acquisition of Cazenove had strengthened its wealth management, equities, multi-manager and fixed income capabilities.
“We see a broad range of new business opportunities in the UK and internationally on the back of competitive performance, proven investment talent and strong distribution and remain confident that Schroders is well placed for further growth as we continue to invest in our business for the long term,” he said.
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Asset management Q3 net revenue was £315m – up from £246m the previous year – including performance fees of £17.5m which also climbed sharply.
Profit before tax and exceptional items at the division was £109.6m, up from £85.8m.
The division also saw assets under management hit £226.8bn, up from £186.7bn last year.