Schroders has overcome a dip in net inflows to post record profits and assets under management for 2013.
The asset management house’s annual results show profit before tax and exceptional items rose by 41 per cent last year to £507.8m – up from £360m in 2012. Profit growth was strong in the wealth management business, jumping from £11.8m
Schroders’ total AUM rose by 24 per cent to £262.9bn. The group purchased Cazenove Capital Management in May, which ran £17.2bn at the time of acquisition, and also bought specialist US fixed-income manager STW Fixed Income, which managed £5.7bn.
Net inflows across the business slowed to £7.9bn – down 15.9 per cent from 2012. The asset management arm saw net new business fall from £9.7bn to £9.4bn, hit by the departure of head of UK equities Richard Buxton.
Net outflows in the wealth management division jumped from £300m in 2012 to £1.5bn following the expected loss of two large mandates in the second half of the year.
Bestinvest managing director of business development and communications Jason Hollands says: “With good performance across a broad set of products and the integration of Cazenove Capital going according to plan, Schroders is a quality business which is well diversified and in a strong position for the future.
“Of course, last year was a great one for developed markets. In my view, 2014 is likely to be more challenging for most asset managers.”