Assets under management (AuM) at Schroders have reached a record high £777.4bn, although this was softened as its net flows in joint ventures (JVs) and associates were negative in the third quarter.

AuM excluding JVs and associates grew to £663.7bn, which the investment firm said was driven by positive net flows, markets and investment performance.

Net flows in JVs and associates totalled £5.2bn positive in the nine months to 30 September, with these figures dropping by £113.6bn and £2.6bn, respectively.

Schroders said that this drop was a result of "continued market volatility in China".

The firm added that while there are good mandates funding across asset management in 2024, a notified outflow of £8bn from the legacy Scottish Widows mandate will affect solution in the fourth quarter of 2024.

The news comes as Schroders’ chief financial officer, Richard Oldfield, is set to start as chief executive officer (CEO), after Peter Harrison announced that he was to stand down after a decade in the role.

Oldfield stated: "AuM has reached £777.4bn, with positive net flows in the first nine months of the year of £1.6bn. Clients continue to benefit from the strength of our diverse client proposition, notably in the third quarter in our mutual funds business and Cazenove Capital.

"As the new group CEO, I will be leading a business with a strong investment franchise, deep client relationships, exceptional talent and significant potential for profitable growth. I will do what is necessary to deliver on this potential. Standing still is not an option for Schroders in today's fast-changing market landscape. We must focus to grow, build greater commercial discipline and drive efficiencies though simplification and flawless execution."

Although analysts have noted that the investment firm has "fared rather better than its asset management peers", investment director at AJ Bell, Russ Mould, said that this may be coming to an end in the near future.

He stated: "There are signs Schroders is now feeling the heat based on the significant quarterly outflows unveiled today – the highest since the onset of the pandemic. Perhaps more worryingly there is the promise of more to come.

"All of this adds up to a difficult start for incoming boss Oldfield who at least has the inside track on the challenges facing the business given his previous role as finance chief at the company.

"Oldfield will hope the recent trends reflect short-term issues around Chinese volatility and its legacy mandate with Scottish Widows, but he has plenty to do to arrest a decline in the share price which has dragged Schroders to 11-year lows."

---