Schroders plc (LON:SDR) has announced its Q3 2024 update.
Total assets under management (AUM) reached a new high of £777.4 billion and the Group’s net flows for the nine months to 30 September 2024 totalled £1.6 billion.
| £bn | 30 June 2024 | Net flows | Markets, FX and investment performance¹ | 30 September 2024 | |
| Private Markets | 68.5 | 1.0 | (0.7) | 68.8 | |
| Solutions | 220.8 | (2.7) | 3.1 | 221.2 | |
| Mutual Funds | 107.8 | 1.3 | 1.1 | 110.2 | |
| Institutional | 140.7 | (0.3) | 1.9 | 142.3 | |
| Asset Management | 537.8 | (0.7) | 5.4 | 542.5 | |
| Advised | 75.3 | 0.8 | 0.1 | 76.2 | |
| Platform | 20.2 | 0.4 | 0.3 | 20.9 | |
| Managed | 24.0 | (0.2) | 0.4 | 24.2 | |
| Wealth Management | 119.5 | 1.0 | 0.8 | 121.3 | |
| Total excl. JVs and associates | 657.3 | 0.3 | 6.2 | 663.8 | |
| JVs and associates | 116.4 | (2.6) | (0.2) | 113.6 | |
| Group total | 773.7 | (2.3) | 6.0 | 777.4 | |
¹Includes currency movements, which decreased AUM by £13.4 billion excluding JVs and associates and £17.0 billion for the Group total.
AUM excluding joint ventures (JVs) and associates grew to £663.8 billion driven by positive net flows, markets and investment performance. Net flows in JVs and associates, which were £5.2 billion positive in the nine months to 30 September 2024, were negative in the third quarter due to continued market volatility in China.
In Asset Management, positive net flows in Private Markets were offset by foreign exchange movements and in Solutions, the quarter-on-quarter net outflow continued to reduce. In Mutual Funds, client demand for fixed income strategies continued to support AUM growth but drove a change in mix. In Institutional, flows were relatively stable.
While there are good mandates funding across Asset Management in 2025, in the fourth quarter of 2024 a notified outflow of c.£8 billion from the legacy Scottish Widows mandate will affect Solutions, and we have notified losses from three Institutional clients totalling c.£2 billion.
In Wealth Management, against a backdrop of falling interest rates, positive net flows were driven by our advised business, reflecting continued momentum in Cazenove Capital, while outflows in the managed business were driven by a single client insourcing decision. We remain on track to achieve our net new business target of 5-7% of opening AUM per annum.
Richard Oldfield, Schroders Chief Financial Officer, said:
“AUM has reached £777.4 billion, with positive net flows in the first nine months of the year of £1.6 billion. 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.
“I would personally like to thank Peter for his contribution to Schroders over the last decade and for his support during the transition period.”
