1st May 2014 07:51
LONDON (Alliance News) - Schroders PLC Thursday reported an increase in first-quarter pretax profit as it saw GBP3.8 billion in net inflows boosting assets under management.
In a statement for the three months ended March 31, Schroders said pretax profit rose to GBP118.9 million from GBP115.0 million for the corresponding quarter a year earlier. Net revenue increased to GBP358.8 million from GBP323.0 million, while operating expenses increased to GBP233.5 million from GBP213.5 million.
Excluding exceptional items related to acquisitions, Schroders said its first-quarter pretax profit increased to GBP130.7 million.
In 2013, the FTSE 100 asset and wealth manager acquired Cazenove Capital for GBP424 million as it moved to combat what it had described as a challenging year for its private banking business in 2012. STW was acquired in December 2012 to broaden Schroder's fixed income business in the US.
The GBP3.8 billion in net inflows drove an increase to GBP268.0 billion from GBP262.9 billion in assets under management over the course of the first-quarter, though GBP1.3 billion in investment returns also contributed.
Chief Executive Michael Dobson said 2014 started well for Schroders thanks to net new business wins coming across multi-asset, equities and fixed income and their upward influence on assets under management. Net inflows were comprised of GBP1.0 billion in institutional funds and GBP2.8 billion in intermediary funds.
"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 GBP12.2 billion from Friends Life, as announced in March," Dobson said in a statement.
Schroders shares were early Thursday quoted at 2,624.00 pence, up 2.6%, placing them third among FTSE 100 gainers.
By Samuel Agini; [email protected]; @samuelagini
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