Schroders Shares Plummet on £10bn Outflow Warning

Schroders, a leading UK-based asset management firm, has seen its shares tumble following a warning of £10bn in outflows. The company's stock price has fallen over 40% from its 2021 peak, reflecting concerns about its high cost base and slower organic growth in private markets. The recent warning of £10bn in outflows, driven by a legacy mandate with Scottish Widows and institutional client losses, further impacts its market capitalization.

Schroders' total assets under management (AUM) increased by 0.5% to £777.4bn in Q3, despite £2.3bn in net outflows. This was driven by £6bn in positive currency and market movements, as well as investment performance. However, the upcoming £10bn outflows from Scottish Widows and £2bn from institutional clients may significantly impact AUM in Q4.

Schroders' incoming CEO, Richard Oldfield, faces a significant challenge with £10 billion in expected outflows. To mitigate this, he plans to focus on growth, build commercial discipline, and drive efficiencies. Oldfield aims to capitalize on the company's strong investment franchise and deep client relationships, while adapting strategies to today's fast-changing market landscape. By leveraging Schroders' diverse client proposition, particularly in mutual funds and Cazenove Capital, Oldfield seeks to deliver profitable growth and stabilize the company's financial performance.


Schroders' shares have fallen following a warning of £10bn in outflows, which includes £2.3bn in Q3 and an expected £8bn from a legacy mandate with Scottish Widows in Q4. This raises concerns about the company's revenue projections. In Q3, Schroders' total AUM increased by 0.5% to £777.4bn, driven by positive currency and market movements, but net outflows of £2.3bn tempered this growth. The Solutions arm, which is expected to bear the brunt of the £8bn outflows, saw AUM remain relatively stable at £68.8bn. Schroders' incoming CEO, Richard Oldfield, acknowledged the challenges, stating, "Standing still is not an option," suggesting a focus on growth and efficiency. However, these outflows may impact Schroders' annual revenue projections, with the company's shares having already plunged over 40% from their 2021 peak.


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