Investing.com -- Schroders (LON:SDR) reported net outflows of £7.4 billion in the first quarter, as significant client withdrawals from its Chinese joint ventures weighed on results.
The outflows were largely driven by £8.5 billion in redemptions from money market funds operated through its partnerships with Bank of Communications in China.
As of the end of March, Schroders’ assets under management stood at £758.4 billion, marking a decline of nearly 3% from the end of last year.
"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," said Richard Oldfield, Group Chief Executive at Schroders.
“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," he added.
Excluding the impact of joint venture activity, the firm recorded net inflows of £1.1 billion, supported by continued momentum in its wealth management division and private markets unit, Schroders Capital.