Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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 Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Play Baillie Gifford's Snell bullish on India's prospects following election

Baillie Gifford's Snell bullish on India's prospects following election

Citywire AA-rated manager is seeing good overall growth for the Asia reason but is wary of varying valuations.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter