Tough market conditions continue to hurt major asset managers, with Schroders becoming the latest major fund house to report reduced assets.
The manager’s UK-listed mutual funds saw £2.9bn in net outflows in the first six months of 2022, reversing net inflows of £6.4bn from the same period last year, according to the company’s half-yearly report, published on July 28.
The firm’s global mutual fund assets closed the period at £102.6bn, down from £116bn, as fixed income products took a particular hit, and the “falling fortunes” of equity markets caused a 2 basis point drop in income margins.
“The first half of the year was characterized by a ‘risk on’ environment which, together with significant market declines, resulted in reduced demand from retail investors,” Schroders said.
Schroders’ institutional business also reported net outflows of £7.6bn, compared with £1bn net inflows last year, “due to a number of clients restructuring their asset allocations assets”.
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However, the asset manager said it was tapping into growth areas such as private assets and sustainability.
Assets in Schroders’ private and alternative assets division rose 29% to £69.4 billion. Schroders recently took a majority stake in renewables infrastructure manager Greencoat Capital, which brought in £0.5bn in net new business.
“Our investment in sustainability has been a fundamental contributor to our success,” said CEO Peter Harrison. “It was particularly evident in our mutual funds business where, despite a sell-off, our equity funds saw positive client inflows.”
“Currently, the environment in which we operate is challenging and we anticipate that the public and private markets will continue to be difficult.”
To contact the author of this story with comments or news, email Justin Cash
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