Schroders sees profits rise 13% in Q1 as inflows rise

Schroders saw a 13 per cent rise in pre-tax profits for the first three months of 2014 helped in large part by its acquisition of Cazenove Capital.

The group as a whole saw profits rise from £115m in Q1 last year to £130.7m for the first quarter of this year and registered net inflows of £3.8bn to take its assets under management to a record £268bn.

The largest expansion in revenue and profits came from its wealth management division, largely a result of its Cazenove acquisition.

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The group said net revenue was up 90 per cent to £50.3m compared to £26.5m in Q1 last year while pre-tax profits were up 171 per cent to £13.3m - a large jump from £4.9m in Q1 last year.

Michael Dobson, chief executive, said: “2014 has started well for Schroders, with £3.8bn of net new business wins across multi-asset, equities and fixed income, taking assets under management to a record £268bn.

“We had a strong quarter in intermediary with high levels of net inflows in Europe and the UK although, with markets facing a number of uncertainties, retail investor demand may reduce in the short term.

“In institutional, we see a wide range of opportunities with a good pipeline of business we have won but which has not yet been funded including £12.2bn from Friends Life, as announced in March.”