ASSETS and new funds poured into Schroders in the three months to the end of September, as the departure of star manager Richard Buxton was more than offset by the purchase of Cazenove Capital.
Schroders delivered a total profit before one-off items of £349.6m over the quarter, up 31 per cent from 2012, with inflows growing from £5.3bn to £5.5bn.
Assets under management jumped from £202.8bn to £256.7bn, with the group highlighting that 68 per cent of these assets outperformed over three years.
However, the wealth unit suffered an outflow of £700m during the quarter, which Schroders attributed to the “expected” loss of large custody account.
“Cazenove Capital has materially strengthened our wealth management business and added to our capabilities in equities, multi-manager and fixed income and generated net inflows of £0.7bn in the third quarter,” said boss Michael Dobson in a statement.
Shares fell 4.4 per cent to 2,491p yesterday.
City A.M. Reporter