Schroders' chief executive Michael Dobson has cautioned against further acquisitions, saying the firm will now focus on organic growth after completing a string of deals over the past year.
Three top-performing UK equity funds run by merging fund houses Schroders and Cazenove Capital are close to reaching capacity.
Schroders will build a multi-manager arm to rival John Chatfeild-Roberts' Jupiter Merlin range once Cazenove's Marcus Brookes and Robin McDonald join the firm, global head of equities Peter Harrison has said.
Schroders is considering having two flagship UK equity funds running alongside each other once its £424m acquisition of Cazenove Capital is complete.
Cazenove's Julie Dean will not be running Richard Buxton's assets after the takeover of the company by Schroders, and the firm is still actively looking for his replacement.
Shares in asset management giant Schroders were up sharply in early trading after the group announced it had agreed a deal to buy Cazenove Capital for £424m.
Schroders has agreed a £424m cash offer for Cazenove Capital in a deal that significantly strengthens its private banking, wealth management and funds businesses.
At first glance, Schroders' confirmation that is in talks to acquire Cazenove Capital makes perfect sense.