Schroders PLC on Tuesday reported a rise in assets under management in the third quarter, but said net flows from joint ventures and associates turned negative after a positive start to 2024.

The stock reacted strongly. Schroders was down 14% to 314.16 in London early Tuesday. The wider FTSE 100 index was up 0.3%.

The London-based asset manager, which is changing leadership, said AuM reached a new high of £777.4 billion on September 30, rising from £773.7 on June 30, as £6.0 billion in positive market, foreign exchange and investment performance outweighed £2.3 billion in net outflows.

The net outflows in the third quarter were entirely due to JVs and associates, where they totalled £2.6 billion.

Excluding JVs and associates, net flows were possible by £300 million. This in turn was composed of £1.0 billion in net inflows for Wealth Management, balanced by £700 million in outflows in Asset Management.

Overall net flows for Shroders remained positive by £1.6 billion in the first nine months of the year as a whole. Even in JVs and associates, net flows were positive by £5.2 billion in the first nine months.

Schroders said the outflows in JVs and associates in the third quarter was due to market volatility in China.

Chief Financial Officer Richard Oldfield is set to step up to chief executive officer this month, replacing Peter Harrison. Oldfield will be replaced as CFO by Chief Operating Officer Meagen Burnett.

‘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,’ Oldfield said. ‘I will do what is necessary to deliver on this potential.’

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