Schroders chief executive David Salisbury has quit the firm after the fund manager recorded a 68 per cent fall in profits during the first half of the year.
Profits fell to £31.3m for the six months to June 30 from £96.7m in the same period last year and £77.1m in the second half last year.
Salisbury had been at Schr-oders for more than 27 years but had only been group chief executive for 15 months.
He was previously head of the firm's asset management division. Group chairman Peter Sedgwick will now take over Salisbury's responsibilities until a new chief executive is found.
The company's half-year results also reflected a poor year for the asset management division, with profits down by more than a third on last year to £52.3m from £82.5m.
The division's biggest initiative of the past year – the launch of seven style funds and the restructuring of an eighth fund – was not met with the enthusiasm that the group had hoped for.
The seven new funds have taken less than £30m since their launch last December.
Head of corporate communications Julian Samways says: “David Salisbury's departure will have no effect on the retail business, nor will it have an effect on fund performance, which is continuing to strengthen.”
Plan Invest investment manager Paul Barnes believes one of Schroders' problems is its oversized fund range. He says: “They are trying to be all things to all men. The style funds do not appear to be working yet and I would say it is a bit lacking in direction.
“Increasing the charges on five of its funds is not going to win them favour either.”