Schroders has reported an uptick in assets under management during the first three months of this year as it looks to rebound from a “challenging” 2023.
The FTSE 100 funds group said in a trading update on Thursday that its assets under management (AuM) stood at £760.4bn at the end of March, up 1.3 per cent from £750.6bn at the end of December.
Schroders saw growth in AuM across all of its divisions, except Solutions which saw a £1.6bn decline.
The news comes after Schroders announced on Wednesday that veteran chief executive Peter Harrison would retire next year.
After rejoining the firm in 2013, Harrison was lifted into the top job from the role as chief investment officer in 2016 and has since overseen a period of expansion as the group more than doubled its AuM.
The firm endured a tough spell in 2023, which Harrison described as “one of the most challenging years for global active asset managers in recent times”. He warned that geopolitical jitters and elections would continue to roil the markets this year.
Schroders reported a £100m slide in profit last year, citing “headwinds in the markets” and restructuring costs. It booked a £86.2m bill for reducing its office footprint and “rationalising software”, relocating wealth management roles and cutting jobs.
The firm’s wealth management division saw bumper flows in 2023, with AuM hitting a record high of £110.2bn. Its private markets and solutions businesses also enjoyed higher flows.
However, the strong performance was offset by a downturn in Schroders’ public markets arm, which suffered net outflows of £13.4bn amid the allure of risk-free returns in cash.