Schroders LON:SDR has reported a record £816.7bn in assets under management, buoyed by strong net inflows and supportive market conditions, in its fourth consecutive quarter of growth. Total AUM rose 5 per cent quarter-on-quarter, as clients continued to entrust funds to the asset manager amid an improving investment backdrop.
Net new business, excluding joint ventures and associates, reached £4.9bn in the third quarter — a sharp increase from £300mn in the same period last year. Year-to-date, Schroders has attracted £9.4bn in new client money, a significant turnaround from the £3.6bn of net outflows recorded over the same period in 2024.
Richard Oldfield, Schroders’ group chief executive, said the latest results reflected progress in refocusing the business towards scalable areas of growth and improved client outcomes.
“We remain steadfast in our commitment to active management as we help our clients navigate complex markets,” he said. “We are pleased to report our fourth successive quarter of positive net new business, AUM hit an all-time high, buoyed by supportive market conditions. In addition, our client focus and investment rigour is translating into strong client investment performance.”
He added that Schroders’ “continued simplification” — including exiting smaller, sub-scale markets and strengthening its wealth management platform — had enabled it to concentrate resources where the group “can best support clients and drive profitable growth”.
Active management delivers for Schroders
The group’s asset management division delivered solid inflows across its core public markets businesses. Schroders saw £6.7bn of net inflows into its public markets solutions, with strong demand for fiduciary management and outsourced CIO services from UK pension schemes.
Equities performance was mixed, with gains in quantitative equities strategies offset by redemptions from Asia-Pacific mandates. Fixed income products continued to attract investors, particularly in global and European bond strategies.
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Schroders Capital, the group’s private markets arm, continued to see momentum in private debt and alternative credit, alongside strong inflows into its semi-liquid private equity products — an area where Schroders has emerged as a market leader. Real estate strategies saw outflows in the UK and Asia as the group restructured those businesses to align with its long-term strategy.
Joint ventures and associates, particularly the Bank of Communications fund management joint venture in China, experienced outflows as institutional clients took profits following strong market gains.
Wealth management momentum: Cazenove Capital
In wealth management, Cazenove Capital continued to perform well, with private client inflows up 5 per cent over the quarter. The charities business also delivered healthy gross inflows, though these were offset by withdrawals as organisations drew down reserves to fund operations. Benchmark Capital saw net outflows, mainly due to one adviser group shifting its model portfolios to a competitor.
Schroders has strengthened its position in wealth management by regaining full ownership of Cazenove Capital, exchanging its stake in Schroders Personal Wealth for complete control. The group will continue to manage Schroders Personal Wealth and Scottish Widows’ assets under a new multi-year investment management agreement.
Streamlining and scaling for growth
Strategically, Schroders has pressed ahead with its transformation programme. In recent months, it has announced exits from Brazil and Indonesia, launched its first active ETFs in Europe, and simplified its business to focus on areas with greater scale and profitability potential.
“As we approach year-end, we continue to deliver on our strategy to return to profitable growth,” said Oldfield. “We are building an efficient and scalable business, fit for the future.”
Schroders’ upbeat update underscores its steady recovery following a challenging 2023, with rising markets and renewed investor confidence setting the stage for further momentum into 2026.
