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Schroders clients pull £2.2bn from intermediary business

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Schroders has suffered a £2.2bn outflow from its intermediary business so far this year.

Overall, Schroders has seen a 67 per cent fall in the level of net new money raised in the first nine months of 2016 as clients pulled assets from both its retail and wealth management business.

In its interim statement, published today, the UK asset manager said it generated net assets of £2.7bn from new investors in the nine months to the end of September, a significant decrease from the £8.3bn of inflows recorded over the same period last year.

The slowdown in asset gathering was mostly seen in outflows from its intermediary business of£2.2bn, as well as from its wealth clients who pulled £500m in outflows.

Institutional clients at the firm brought in £5.4bn.

However, for the last quarter, flows turned positive for the retail channel at £1.1bn, with £1bn coming from the institutional clients over the period.

Assets under management in the asset management unit were up to £339.4bn from £281.9bn in January 2016 and £263.9bn in September the same period a year ago.

Overall, assets under management for the entire group increased to £375bn, up from £313.5bn at the start of 2016.

Net profit before tax slightly dropped to £436.2m from £438.9m, on unspecified exceptional items.

Schroders group chief executive Peter Harrison, who started his role in April 2016 after two years at the firm as head of investment, says: “We continued to deliver solid results in the first nine months of the year. We have made progress against our strategic objectives, particularly in North America.”

Other UK fund groups suffered outflows in the three months to September attributing the losses to the uncertainty brought by the UK decision to leave the European Union.

Henderson Global Investors blamed Brexit for £1bn of retail outflows in its third quarter results and warned retail investors remain cautious on European assets. At the same time, emerging market specialist manager Ashmore saw flat net flows over the same period.

However, rival firm Jupiter saw net inflows totalling £789m in the the third quarter helped by “significant inflows” in its absolute return, fixed income and global emerging market strategies.

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