Assets under management have hit a record high at Schroders and the firm has hedge funds in its sights, recently raising funds for veteran investor John Paulson.

Schroders witnessed a £5.1 billion rise in assets under management in the first quarter of 2014, from £262.9 billion at the end of December 2013 to £268 billion at the end of March 2014, according to its quarterly results today.