Schroders’ total assets under management over Q3 increased by 0.5% from £773.bn to £777.4bn, according to its latest results to the end of September 2024.
This was driven by a £6bn positive contribution from currency and market movements, as well as investment performance, although group AUM was tempered by net outflows of £2.3bn.
Schroders’ asset management arm suffered net outflows of £0.7bn, but positive investment performance and market movements added £5.4bn to AUM, meaning assets stood at £542.5bn at the end of the quarter – a 0.9% increase.
Mutual funds saw net inflows of £1.3bn and positive performance adding a further £1.1bn, taking total assets from £107.8bn at the end of June, to £110.2bn at the end of September. Schroders said this was driven by client demand for fixed income funds, but that there was a “change in mix” in terms of asset class preference.
The firm’s Solutions arm suffered £2.7bn out outflows over the quarter but AUM was buoyed by £3.1bn of positive investment performance, leading to a 0.2% uptick. However, Schroders warned that during Q4, a legacy Scottish Widows mandate will pull approximately £8bn from the business. The firm said it has forewarned three institutional clients managing a total of £2bn.
AUM in private markets, as well as AUM across the platform business, remained relatively stable at £68.8bn and £20.9bn, respectively.
Schroders’ joint ventures saw outflows of £2.6n in total as well as a negative impact from market performance at £0.2bn. The firm said this can be attributed to “continued market volatility in China”.
In terms of its Wealth Management business, positive net flows of £1bn were driven predominantly by Schroders’ advised business and solid momentum in Cazenove Capital, leading to a 1.5% AUM increase to £121.3bn.
Schroders said it is “on track” to achieve its net new business target of 5-7% of opening AUM per annum.
Richard Oldfield, chief financial officer and incoming group CEO, said: “AUM has reached £777.4bn, with positive net flows in the first nine months of the year of £1.6bn. Clients continue to benefit from the strength of our diverse client proposition, notably in the third quarter in our mutual funds business and Cazenove Capital.
“As the new group CEO, I will be leading a business with a strong investment franchise, deep client relationships, exceptional talent and significant potential for profitable growth. I will do what is necessary to deliver on this potential.
“Standing still is not an option for Schroders in today’s fast-changing market landscape. We must focus to grow, build greater commercial discipline and drive efficiencies though simplification and flawless execution.”
He added: “I would personally like to thank Peter for his contribution to Schroders over the last decade and for his support during the transition period.”
