Results from two asset management groups prove the effect of both a star manager move and a merger and acquisition.
Figures from Old Mutual Global Investors (OMGI) have shown the true effect of investors following star managers. OMGI posted net inflows of £300m in the third quarter of this year, after Richard Buxton joined the firm as head of UK equities in July.
The strong inflows have been influenced by the Spectrum range of multi-asset risk targeted funds, as well as Mr Buxton’s £502.5m UK Alpha fund.
Old Mutual Wealth, which comprises Skandia and OMGI, announced that funds under management had reached £76bn by the end of September, an increase of 10 per cent – £6.8bn – from the start of the year.
The former Schroders manager moved to OMGI in July this year. However, Mr Buxton’s departure does not seem to have had much effect on his former firm’s inflows, although it is too soon to tell what effect has been made on his former fund, the Schroders UK Alpha Plus, now managed by Alex Breese.
Schroders also announced record results in the same week, with net inflows of £5.5bn, up from £5.3bn in the same time period in 2012.
The asset management part of the business saw net revenue for the three months to 30 September increase from £245m in 2012 to £315m in 2013.
The number includes performance fees of £17.5m, which have dramatically climbed from 2013’s £1.9m figure.
Net inflows for Schroders’ asset management arm in the three months to 30 September were £1.7bn, including £600m in Cazenove Capital funds, which the firm acquired on 2 July 2013, taking net inflows for nine months to £6.5bn. Assets under management as at 30 September were £226.8bn.
The group says the integration with Cazenove has been “progressing well”. Schroders also decided to hard close the £367.1m Cazenove Absolute UK Dynamic fund in order to protect performance and “maintain the integrity” of the fund, after writing to investors earlier this year asking them not to invest any more money into the fund.
The £2.3bn Cazenove UK Opportunities fund is also under watch as it nears capacity (see page 17 for further analysis on soft and hard closures of funds).
The fund attracted more than £900m in positive flows in the third quarter alone.