Financial advisers pulled £4.6bn from Schroders funds in the 2018 calendar year, the company has revealed.
Schroders blamed "investor sentiment turning sharply negative", for the move, which contributed to clients of the fund house pulling a total of £9.5bn from funds in the 2018 calendar year.
The £9.5bn of net outflows contrasts with inflows of £9.6bn in 2017.
According to Schroders' full year results statement covering the 2018 calendar year, out this morning (March7), total assets under management were 6 per cent lower than last year, at £421.4bn.
Schroders' wealth management business had assets under management of £43.7bn, with net inflows of £1.7bn, contributing a profit of £93.4m for the company.
In his management statement company chief executive Peter Harrison said demand from clients for alternative assets had helped boost profits and protect margins.
Schroders stated the margin before performance fees for the wealth management business was 61 basis points, unchanged from 2017.
Profits were £649.9m, a decline of 15 per cent on last year, including restructuring costs of £56m.
Mr Harrison said: "We remain confident that our global presence and diversified business model mean we are well positioned to generate growth for both our clients and shareholders over the long term."
The results come as Schroders is preparing to launch a wealth advice business with Lloyds Bank.
The Schroders Personal Wealth venture, which will go live this year, will target clients with a minimum of £100,000 investable assets and expects an immediate transfer of £13bn assets from Lloyds' existing wealth management business.
It will be run by chief executive James Rainbow, a former head of intermediary at Schroders, who has been replaced in his old role by former Architas executive Anna O’Donoghue.
Meanwhile, Schroders has appointed Deborah Waterhouse and Leonie Schroder to join the board on March 11.
Ms Schroder is a descendant of John Henry Schroder, co-founder of Schroders in 1804, and is currently a director of the Schroder Charity Trust.
She succeeds Bruno Schroder, who died on February 20, 2019, and had been anticipating retiring from the board in May.
david.thorpe@ft.com
