Schroders’ third quarter results show a considerable rise in revenue, most of which has been attributed to the acquisition of Cazenove Capital Management, a leading wealth management service, writes Patrick Brusnahan.

The £424 million acquisition, completed this year on July 2, helped create an added £0.6 billion net inflow, bringing the total to £1.7 billion. This lifted the year’s inflow across the group to £6.5 billion for the year so far. Cazenove also contributed a £0.1 billion inflow into the wealth unit, which unfortunately suffered an outflow of £0.7 billion within this quarter due to an ‘expected loss of a large custody account’.

Wealth management revenue rose from £24.6 million, at this point last year, to £47 million. Pre-tax profit also rose 160% to £10.4 million within this quarter. In the year so far, the wealth management arm has made a pre-tax profit of £21 million, a 45% increase from the £14.4 million at this point in 2012. Assets under management also saw an increase from £16.1 billion to £29.9 billion.

Chief Executive, Michael Dobson, said: ‘Cazenove Capital has materially strengthened our wealth management business and added to our capabilities in equities, multi-manager and fixed income and generated net flows of £0.7 billion in the third quarter.’