Financial advisers and wealth managers withdrew a net £2.4bn from Schroders funds in the first six months of 2019.
The company's half year results released this morning (August 1) and covering the six months to June 30, showed that financial intermediaries, both in the UK and abroad, withdrew £2.4bn from Schroders products, contributing to total net outflows in the period of £1.2bn.
In the results statement the company said the outflows were the result of a “lack of demand” for its equity products in the current risk off environment.
The company’s own UK wealth management businesses, Cazenove and Benchmark Capital, saw net new business of £900m, however this was down on the £1.2bn introduced in the same period in 2018.
Benchmark Capital consists of the Aspect8 financial advice business and Best Practice IFA, a network of financial advisers.
Total assets under management for the asset management business were £393.7bn, compared with £363.5bn for the same period in 2018.
Schroders is due to receive £45bn in assets from Scottish Widows and Lloyds Banking Group during the second half of this year.
These are assets that were previously part of Scottish Widows and a settlement was reached in July to divide £100bn of assets between the groups.
The wealth management business had assets under management of £50.7bn, an increase of £7bn on the same period in 2018.
It is due to launch a joint advice venture with Lloyds later this year.
Schroders chief executive Peter Harrison said: “We have made further progress in Wealth Management and expanded our proposition in Asia Pacific with the acquisition of Thirdrock Group's wealth management business.
"We look forward to the launch of Schroders Personal Wealth to the wider market, later this year.
"In a challenging market, we continue to broaden and enhance our range of investment capabilities to help meet our clients' needs. We remain on track with our plans, giving us confidence that our diversified business model and global presence position us well to generate positive outcomes for both our clients and shareholders over the long term.”