REG - Schroders PLC - Q1 2025 Update

SchrodersAnnouncement

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RNS Number : 9322G  Schroders PLC  01 May 2025

1 May 2025

Q1 2025 update: positive flows in Schroders Capital and Wealth Management

·      Positive net flows of £1.1 billion, excluding joint ventures
(JVs) and associates

·      Client demand drove flows into core solutions and Wealth
Management, in addition to all four pillars in Schroders Capital

·      Net flows into JVs and associates of £(8.5) billion as a result
of money market outflows in China

Group assets under management (AUM) totalled £758.4 billion and net flows for
the three months to 31 March 2025 were £(7.4) billion. Currency movements of
£(9.4) billion were the principal driver of the reduction in AUM over the
period(1). AUM excluding JVs and associates totalled £653.7 billion, with
positive net flows of £1.1 billion, predominantly in Wealth Management. Net
flows into JVs and associates were £(8.5) billion, predominantly driven by
outflows from money market funds in China.

 £bn                                31 December 2024  Net flows  Markets, FX and investment performance(1)  31 March

2025
 Public Markets                     464.9             (1.5)      (5.4)                                      458.0
 Schroders Capital                  70.1              1.5        (1.1)                                      70.5
 Asset Management                   535.0             -          (6.5)                                      528.5
 Cazenove Capital and other Wealth  92.2              0.6        (2.5)                                      90.3
 Benchmark                          34.6              0.5        (0.2)                                      34.9
 Wealth Management                  126.8             1.1        (2.7)                                      125.2
 Total excl. JVs and associates     661.8             1.1        (9.2)                                      653.7
  JVs and associates(2)             116.9             (8.5)      (3.7)                                      104.7
 Group total                        778.7             (7.4)      (12.9)                                     758.4

(1)Includes currency movements, which decreased Group AUM by £9.4 billion
(£7.1 billion excluding JVs and associates).

( 2)Significant JVs and associates held by the Group include SPW, BOCOM FMC,
Axis and BOCOM WMC.

 

Richard Oldfield, Group Chief Executive, said:

"Since our strategy update in March, I have spent valuable time with Schroders
clients, shareholders, partners and teams in the US, Europe and Asia. It is
always a pleasure to observe the strength of our relationships in action. Amid
recent market turmoil, our teams continued to make active, deliberate
investment choices on behalf of our clients, underpinned by rigorous research.
Active management's long-term focus proves its worth by looking through
moments of market dislocation.

"Within Schroders, we are focused on delivering the transformation initiatives
we outlined in March. In Public Markets, we are investing in our leading
strategies and broadening client access; in Schroders Capital we are driving
flows into our specialist capabilities; and in Wealth Management, we continue
to build on the excellent reputation of Cazenove Capital.

"In a challenging external environment, we are actively managing the areas of
our business we can control, taking action on costs while continuing to invest
in key areas of strength. By simplifying, scaling and delivering effectively,
we will return our business to profitable growth."

Asset Management

In Public Markets, client demand for risk mitigation strategies drove inflows
into core solutions which were more than offset by outflows from equities and
multi-asset. Our fixed income business continues to perform well, with strong
inflows into European credit strategies counterbalanced by the loss of one
large but low-margin US bond mandate.

Schroders Capital saw positive net flows into all four asset class pillars -
private equity, private debt & credit alternatives, real estate and
infrastructure - as clients continued to seek return opportunities, income and
future proofing.

By channel, our Intermediary business benefited from strong flows into
European and Asian bonds, particularly in the early part of the quarter,
partially offset by net outflows in emerging market equities. Within our
Institutional business, we benefitted from several UK defined benefit mandate
wins in core solutions as well as demand across private markets but saw
redemptions from US bonds and Asian equities.

Asset Management AUM - by asset class

 £bn               31 December 2024  Net flows  Markets, FX and investment performance  31 March 2025
 Equities          190.2             (2.3)      (3.4)                                   184.5
 Fixed income      81.9              -          (0.1)                                   81.8
 Multi-asset       83.7              (1.4)      (0.4)                                   81.9
 Core solutions    109.1             2.2        (1.5)                                   109.8
 Private markets   70.1              1.5        (1.1)                                   70.5
 Asset Management  535.0             -          (6.5)                                   528.5

 

Asset Management AUM - by channel

 £bn               31 December 2024  Net flows  Markets, FX and investment performance  31 March 2025
 Intermediary      125.5             0.6        (2.6)                                   123.5
 Institutional     409.5             (0.6)      (3.9)                                   405.0
 Asset Management  535.0             -          (6.5)                                   528.5

Wealth Management

We continue to see strong demand for our tailored, specialist advisory
services in Cazenove Capital, with first quarter flows seasonally lower
because of the impact of client tax payments. In Benchmark, growth continues
to be driven by adviser additions to the network.

Enhanced disclosure

Schroders is introducing enhanced disclosure of AUM, flows and revenue
margins. This added transparency reflects our commitment to providing
stakeholders with deeper insight into business performance and growth drivers.
We are also simplifying our income statement to provide greater clarity and
comparability. At the half year results 2025 we will present an adjusted
operating profit measure to reflect the ongoing operational performance of the
business. Details, including historic restatements aligned to the new
reporting format, are available in the Q1 2025 data pack on the Schroders
Investor Relations website:
www.schroders.com/en/global/individual/corporate-transparency/reporting/corporate-results-reports-and-presentations/
(http://www.schroders.com/en/global/individual/corporate-transparency/reporting/corporate-results-reports-and-presentations/)
.

For further information, please contact:

 Investor Relations
 Katie Wagstaff      Tel: +44 (0)20 7658 1985  Katie.Wagstaff@Schroders.com (mailto:Katie.Wagstaff@Schroders.com)
 Edward Houghton     Tel: +44 (0)20 7658 3314  Edward.Houghton@Schroders.com
 Media
 Andy Pearce         Tel: +44 (0)20 7658 2203  Andy.Pearce@Schroders.com (mailto:Andy.Pearce@Schroders.com)

Please visit www.schroders.com/ir (http://www.schroders.com/ir) to learn how
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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
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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.

 

 

 

 

 

 

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