Q3 2024 Update

Schroders PLC

05 November 2024

 

Schroders plc

Q3 2024 update

5 November 2024

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, 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." 

For further information, please contact:

Investor Relations
Katie Wagstaff  Miriam McKay	Tel: [phone] Tel: [phone]	[e-mail] [e-mail]
Media Relations and Corporate Communications
Andy Pearce Julie Foster	Tel: [phone] Tel: [phone]	[e-mail] [e-mail]

A conference call for analysts and investors will be held at 0800 GMT. Once registered on https://www.schroders.events/Q32024 a link to the call will be shared via email. Please visit www.schroders.com/ir to learn how we handle personal data.

Forward-looking statements

The information provided in this document has not been subject to audit. This announcement and the Schroders website may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of the Schroders Group. Such statements and forecasts involve risk and uncertainty because they are based on current expectations and assumptions but relate to events and depend upon circumstances in the future; you should not place reliance on them. Without limitation, any statements preceded or followed by or that include the words 'to deliver', 'targets', 'plans', 'sees', 'believes', 'expects', 'aims', 'confident', 'will have', 'will be', 'will ensure', 'likely', 'estimates', 'foresee' or 'anticipates' or the negative of these terms or other similar terms are intended to identify such forward-looking statements. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the Directors' current view and information known to them at the date of this statement. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this announcement or on the Schroders website should be construed as a forecast, estimate or projection of future financial performance.

 

END