Schroders saw net outflows of £2.2bn ($2.9bn) in the first quarter of 2026, as the Middle East conflict led investors to pull their capital.
In a trading update, the British fund manager said group assets under management (AUM) fell to £814.4bn at the end of March, down from £823.7bn at year-end 2025.
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Excluding joint ventures and associates, net new business was negative £2.2bn. Including them, total outflows were £1.1bn.
Schroders group CEO Richard Oldfield said: “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.”
Asset management AUM dropped to £599.4bn, hit by negative market movements and £2.5bn of outflows.
Equities saw net outflows of £4.9bn and core solutions £900m, while fixed income and multi-asset strategies drew £1.8bn and £1.2bn of inflows, respectively.
Schroders Capital brought in £300m of net inflows, even as real estate continued to lag.
Joint ventures and associates returned to positive flows of £1.1bn, helped by the Bank of Communications China venture.
Wealth management AUM stood at £120.7bn, with £300m of net inflows despite seasonal tax-related redemptions.
Oldfield added: “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.”
The update comes as shareholders prepare to vote today (16 April) on Nuveen’s recommended £9.9bn ($13.5bn) takeover offer for Schroders, announced in February. Richard Oldfield will remain CEO of Schroders and report to Nuveen CEO William Huffman.
