Schroders PLC (LSE:SDR) shares tumbled to the bottom on the FTSE 100 as it reported more institutions had pulled money out.
Net outflows in the three months to end September 2024 were £2.3 billion with three more institutions said to have handed in their notice for around £2 billion worth of funds.
Shares tumbled 13% even though assets under management hit a record high of £777.4 billion due to market performance.
Dropping below 320p in morning trading, it was the lowest level for the shares since January 2013, highlighting a tough year for the veteran wealth manager.
The FTSE 100 group's direct assets under management rose by £6.2 billion despite £700 million of institutional withdrawals but joint ventures and associates saw a third-quarter outflow that was blamed on China’s market volatility.
New chief executive Richard Oldfield put a brave face on the numbers, highlighting that for the first nine months of the year, inflows were £1.6 billion while its mutual funds and Cazenove Capital wealth platform were going well.
Adding he would do what is “what is necessary” to deliver on the group’s potential, Oldfield said Schroders had to “grow, build greater commercial discipline and drive efficiencies through simplification and flawless execution”.
Analysts at Jefferies noted that it was "the first time in several years" that Schroders has provided a more detailed quarterly update.
While group net flows were lower than expected, "the flow mix is favourable", they added, with higher-margin private markets, mutual funds and wealth management all on the positive side of the ledger, while net outflows were concentrated in lower fee margin areas.
** Updates share price detail **