Fund manager Schroders (SDR) saw impressive growth in assets under management (AUM) last year. The year-end total hit £300bn - up 14 per cent year on year and beating a consensus estimate of £294bn.
The uplift was particularly strong in its institutional business, where it won net new business of £17.6bn (£4.6bn in 2013). Most of this came from a tie-up with life insurer Friends Life, which transferred £12bn-worth of multi-asset and equity mandates to Schroders from its struggling rival F&C Asset Management, which was taken over by the Bank of Montreal last year.
Another deal that boosted these results was the 2013 acquisition of Cazenove Capital. Net revenues from the once-struggling wealth management division increased by £63.5m, or 42 per cent, to £214m. Arguably, however, this was a slightly weak showing. Cazenove generated £99.6m for Schroders in the second half of 2013 alone, so investors might have hoped for a bigger full-year impact. There were at least signs of stability in fund flows: the £1.5bn net outflow reported for 2013 turned into a £0.5bn net inflow last year.
Broker Numis forecasts EPS for this year of 163.5p.
| SCHRODERS (SDR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3,145p | MARKET VALUE: | £8.5bn | |
| TOUCH: | 3,144-3,145p | 12-MONTH HIGH / LOW: | 3,181p | 2,086p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 1,123p | |||
| Year to Dec 31 | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 1.44 | 407 | 112 | 37 |
| 2011 | 1.50 | 407 | 116 | 39 |
| 2012 | 1.43 | 360 | 105 | 43 |
| 2013 | 1.81 | 448 | 131 | 58 |
| 2014 | 1.91 | 517 | 153 | 78 |
| % change | +6 | +16 | +20 | +34 |
Ex-div: 26 Mar Payment: 6 May | ||||
