7th Nov 2013 08:55
LONDON (Alliance News) - Asset manager Schroders PLC said Thursday that strong net inflows over the first nine months of the year have taken the assets it manages to GBP256.7 billion, a 27% increase year-on-year.
Net inflows over the first nine months of the year to September 30 were GBP5.5 billion, an increase on the GBP5.3 billion reported for the corresponding period last year.
However, net inflows in the third quarter alone declined to GBP1.0 billion against GBP2.6 billion for the corresponding quarter last year.
Responding to a question from Alliance News, Chief Executive Michael Dobson put the third quarter decline down to a particularly strong performance in the year-earlier quarter, citing Mario Draghi's 'whatever it takes' speech as one reason for that performance.
Dobson said that positive inflows have continued into October.
Third quarter net inflows also marked a return to positive flows after the asset manager saw GBP1.1 billion in net outflows in the second quarter.
Dobson told journalists that the loss of star fundmanager Richard Buxton to Old Mutual PLC earlier this year was not affecting the business.
He also said Schroders's recent acquisition Cazenove Capital was performing well.
"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 GBP700 million in the third quarter," Dobson said in the firm's earnings statement.
"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," he said.
Schroders made a pretax profit before exceptional items of GBP349.6 million in the first nine months of the year, a substantial increase on the GBP266.0 million reported for the corresponding period last year.
The exceptional items, which include acquisition and integration costs, amounted to GBP21.7 million.
Schroders shares were Thursday quoted down 3.5% at 2,513.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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