Net inflows in the three months to 30 September totalled £1.7bn, including £0.6bn in Cazenove Capital funds following the acquisition which completed on 2 July.
The strong results dispel concerns that Schroders’ top line results would suffer following the departure earlier this year of star fund manager Richard Buxton.
“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 chief executive Michael Dobson.
“We see a broad range of new business opportunities in the UK and internationally on the back of competitive performance, proven investment talent and strong distribution and remain confident that Schroders is well placed for further growth as we continue to invest in our business for the long term.”
Pre-tax profits for Schroders’ wealth management business totalled £21m in the first nine months of the year, compared to £14.4m in the same period in 2012. Net outflows year-to-date reached £1bn with assets under management at £29.9bn.
Separate from its results, Schroders has closed the Paul Marriage and John Warren-led Cazenove Absolute UK Dynamic Fund, which has reached capacity at £367.1m.
Buoyed by its large exposure to small caps, the fund has delivered close to 50% growth in the past three years, compared to just 9% from the Targeted Absolute Return sector.
“We are always mindful of our duty to protect existing investors’ performance and deliver the fund’s objectives,” said Robin Stoakley, managing director UK intermediary.
