Schroders has beaten analysts' expectations to post 18% growth in pre-tax profits in the third quarter of the year.
The fund manager posted pre-tax profit of £142.9m in the third quarter, and £404.4m for the nine months to September, despite a £27m adverse impact due to the strength of sterling. Analysts had forecast pre-tax profits of £131.4m over the period.
Schroders reported net inflows of £7bn across the business in the nine months to September 2014, compared to £5.5bn in the same period of 2013.
Assets under management were £276.2bn, an 8% rise compared to £256.7bn at the end of September 2013. Consensus forecasts had put AUM at £273.1bn.
The asset management division's net revenue for the three months to 30 September was £329.5m, including performance fees of £3.4m. Net inflows in the three months to 30 September beat consensus forecasts at £2.1bn.
The group's intermediary business saw strong inflows into continental Europe, Asia Pacific, and income products across a number of asset classes.
Wealth management net revenue for the three months to 30 September was £61.7m, including performance fees of £2.7m and the release of a £7.5m loan loss provision. For the first nine months of 2014, wealth management profit before tax and exceptional items was £49.2m, compared to £21m for the same period in 2013. Assets under management at the end of September were £30.5bn.
Schroders chief executive Michael Dobson said: "We have won net new business of £7bn in the first nine months of the year and have continued to generate net inflows across all channels in October, despite market volatility."
The fund manager has been rocked by a number of high profile departures this year, including star fund manager Julie Dean, who announced she was leaving in September. By early October, the fund she formerly managed suffered £600m in outflows.
