Schroders’ private markets business sees £1bn of inflows in Q3
Schroders attracted £1bn of inflows into private markets assets in the third quarter, despite the investment firm reporting £2.3bn of overall outflows over the period.
The firm saw its overall assets under management (AUM) reach a new high of £777.4bn in the third quarter of 2024, of which £68.5bn was in private markets.
Schroders said £700m was pulled from its overall asset management business over the period, amid continued market volatility in China.
Read more: Schroders Capital launches wealth market LTAF
“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,” the firm said in a trading update. “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.”
The firm said that in the fourth quarter of 2024, an outflow of around £8bn from its legacy Scottish Widows mandate will affect its solutions business, which provides investment advice and outsourced chief investment officers, while three institutional clients plan to withdraw around £2bn over the period.
However, Schroders’ wealth management arm performed better, seeing £1bn of inflows over the quarter. It said this was driven by the advised business, reflecting continued momentum in its business Cazenove Capital. The firm said it remained on track to achieve its net new business target of five to seven per cent of opening AUM per annum.
Read more: Apollo sees credit AUM rise by 20pc to $598bn in Q3
“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,” said chief executive Richard Oldfield.
“As the new group chief executive, 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.”
Read more: Ares predicts record fundraising of $80bn+ this year
