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Growth in Schroders’ wealth business helped offset a drop off in asset management business at the fund house last quarter.
Investor money in the asset management side of the business dropped from £515.7bn to £511.4bn in the three months to 30 September, according to the latest figures.
But wealth assets grew from £102.6bn to £104.2bn, leaving overall assets down just £1.8bn at £724.3bn.
The results for Schroders come as other listed asset managers grapple the headwinds of rising interest rates and soaring inflation amid volatile markets.
But wealth managers continue to grow their advisory services for individuals looking to navigate a complex financial world. Schroders added £1.4bn in advised assets over the quarter.
On 19 October, wealth platform AJ Bell also reported net inflows of £4.2bn as assets hit a record £70.9bn, while fellow platform Hargreaves Lansdown said revenue was up 13% as it scored 8,000 net new clients.
Liontrust earlier this week reported £1.6bn of net outflows from its funds during the third quarter, with assets under management dropping 6.3% to £27.7bn.
Meanwhile, FTSE 250-listed Jupiter Fund Management saw £1bn leave its funds during the same three-month period. Its assets under management slipped to £50.8bn, down from £51.4bn at the end of June.
Despite a wave of M&A currently sweeping the fund management sector, Schroders chief executive Peter Harrison told Financial News in August that Schroders is unlikely to strike any more landmark deals in the near future.
Schroders has made several key acquisitions over the past decade.
READ Schroders CEO says firm is ‘pretty well done’ on big acquisitions
These include the purchase of London-based family office Sandaire in 2020 to strengthen Schroders’ wealth management capabilities. Sandaire was absorbed into Cazenove Capital — the UK wealth business that Schroders acquired in 2013.
Other deals include it snapping up Adveq’s private assets business in 2018, and taking a majority stake in impact investment manager BlueOrchard in 2019.
Schroders also acquired a remaining minority stake in wealth firm Benchmark Capital in 2021, and announced the purchase of River & Mercantile’s solutions business during the same year. Reports also surfaced in 2021 that Schroders had attempted to buy M&G.
In 2022, it purchased Netherlands-based Cairn Real Estate and completed the acquisition of a majority stake in Greencoat Capital — one of Europe’s largest renewable infrastructure managers.
Meanwhile, last year it bought a minority stake in digital assets firm Forteus.
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To contact the author of this story with feedback or news, email David Ricketts
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