A combination of acquisitions, market growth and net inflows into multi-asset funds allowed Schroders to increase its assets under management by a quarter during 2013.
Its takeover of wealth manager Cazenove Capital in July and US fixed income specialist STW Fixed Income in April contributed roughly half the £51 billion (€62 billion) in new assets, while market growth accounted for £16 billion and net inflows £8 billion.
Multi-asset funds saw a net inflow of £6.9 billion, while equity products attracted a net £2.8 billion.
The firm says inflows were spread across the UK, Europe, Asia and North America.
At the end of December, Schroders had £263 billion under management, of which £30 billion is from its wealth management division, newly strengthened by the addition of the Cazenove business.
On the back of the added assets, Schroders revenues rose 24%, pushing up its net income. Schroders chief executive Michael Dobson says: “2013 was a record year for Schroders, with profit before tax and exceptional items up 41% to £507.8 million.”
Despite the pleasing results, Schroders sounded a note of caution in its news release, stating that after a year of good equity returns, “2014 is likely to be more challenging for investors”.
Schroders says its board is recommending a 40%-increase in its final dividend, bringing the total dividend for the year to 58 pence per share.
The company’s results come in the same week that Legal & General Investment Management (LGIM) announced its assets under management rose 11% last year to £450 billion. LGIM says its operating profit increased 12% in the same period.
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