Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Schroders wealth revenues rise 90% as it digests Cazenove buy

Schroders wealth revenues rise 90% as it digests Cazenove buy

Wealth management revenue at Schroders near-doubled to £50.3 million over the first quarter as the company digested the impact of its purchase of Cazenove a year ago.

The wealth management division saw the most immediate and dramatic impact from the acquisition, with revenue rising 90% from £26.5 million in the same period of the year before.

By comparison, the asset management division saw revenues increase a total 6% on the same period of the year before, from £289.8 million to £306.2 million. Group profit for the three months rose from £115 million in 2013 to £130 million.

At 8.20, shares in Schroders were up 1.72% at £26.09. 

Profit before tax attributed to the wealth division rose 171% from £4.9 million to £13.3 million. That appeared to reflect significant efficiency gains, far outstripping marginal asset growth from £30.1 billion to £30.2 billion, although the company gave no further update on potential job losses.

Total assets under management within the group business rose to £268 billion following strong net growth in its intermediary business, which delivered £2.8 billion in new assets.

‘2014 has started well for Schroders, with £3.8 billion of net new business wins across multi-asset, equities and fixed income,’ said Michael Dobson, group chief executive (pictured).

‘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.’

Bank of America Merrill Lynch reiterated its buy rating on the stock. ‘The Q1 flows underline Schroders strength,’ said analyst Philip Middleton.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Rathbones' Smith on China's economic hegemony ambitions

Rathbones' Smith on China's economic hegemony ambitions

Discussing China's saving problem, Ed Smith argues that if the country opens up there will be an outflow of capital.

Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Read More
Wealth Manager on Twitter