Schroders hit by £2.2bn outflows in Q1 as equity redemptions weigh on AUM

(Sharecast News) - Asset manager Schroders reported a mixed first quarter on Thursday, with group assets under management ending the period at £814.4bn and net new business slipping to -£2.2bn excluding joint ventures, or -£1.1bn including them. Schroders said asset management AUM fell to £599.4bn, reflecting negative market movements and £2.5bn of outflows, with public markets seeing March redemptions outweighing earlier inflows.

Equities recorded significant net outflows of £4.9bn, while core solutions saw £900m of outflows. By contrast, fixed income and multi‑asset strategies attracted £1.8bn and £1.2bn of inflows respectively.

Schroders Capital delivered £300m of net inflows, though real estate remained a drag. JVs and associates returned to positive flows, generating £1.1bn after heavy outflows a year earlier, helped by its Bank of Communications China venture.

Wealth management AUM stood at £120.7bn, with £300m of net inflows despite seasonal tax‑related redemptions.

Schroders also noted that shareholder meetings to approve its recommended acquisition by Nuveen's PANTHEON LLC would take place on Thursday.

Chief executive Richard Oldfield said: "Our performance in the first quarter of 2026 reflected the shift in market conditions as the period progressed. In January and February, demand trends from late 2025 continued, with strong intermediary net flows into our Public Markets strategies, while Group AUM was buoyed by strong markets. In March we saw a reversal of these trends. As tensions escalated in the Middle East, client sentiment shifted to a more risk-off stance amid heightened geopolitical uncertainty. We continue to focus on supporting clients as they navigate these conditions.

"We remain focused on our controllable cost base, whilst continuing to invest in areas of strength. Since the start of the year, we have successfully transitioned out of our operations in Brazil and Indonesia and expanded outsourcing with our strategic partner, UST. Six months after launch, our European Active ETF range has built strong momentum, ranking highest for net new business into European Active ETFs in the first quarter, alongside continued progress towards further international ETF expansion."

As of 0940 BST, Schroders shares were untraded at 579p.

Reporting by Iain Gilbert at Sharecast.com

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