Schroders adds £5.6bn as new star is named

Michael Bow
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SCHRODERS, the two centuries old UK money manager, yesterday said it lured £5.6bn more into funds last quarter, driving assets under management to record levels.

The blue chip company, which agreed to buy rival Cazenove Capital in March, smashed last year’s figure of £1.6bn, thanks to a strong showing from multi-asset funds, which wrap shares, bonds and cash into a single investment.

The listed UK Growth fund run by Schroders also revealed yesterday that Cazenove portfolio manager Julie Dean had been picked to replace departing fund guru Richard Buxton.

Buxton, one the best known managers in the City, will leave Schroders in June after more than a decade to join Old Mutual Global Investors.

The firm has already poached Jupiter’s rising star Philip Matthews and Neptune’s equity manager Alex Breese as replacements on other funds.

Quarterly pre-tax profits at the company rose 20 per cent overall, surging ahead to £115m from £95.5m in the same quarter last year.

However, the market shrugged at the group’s strong figures yesterday, with shares down 1.1 per cent in trading due to Schroders high share price, on a price to earnings ratio.

Chief executive Michael Dobson, the former leader of Morgan Grenfell, said: “It has been a strong quarter and these results reflect the benefit of our diversified business.”

The addition of Cazenove Capital, a similarly blue blooded institution, is set to help the firm’s struggling private banking business, which reported outflows of £200m this quarter and a dip in revenues and profits.

Cazenove’s asset base of about £20bn will put the private bank on a bigger footing when the two are merged in July.

Assets under management overall rose to £236.5bn, up from £212bn at the end of December.