Schroders reports positive flows in Q1 2025
Why we think this is neutral
The Q1 2025 update from Schroders plc provides a mixed picture, with positive net flows in Schroders Capital and Wealth Management, but negative net flows overall due to outflows from joint ventures and associates. The update does not contain any major profit upgrades or transformational news that would warrant a more positive sentiment score.
Key Points
- Positive net flows of £1.1 billion, excluding joint ventures and associates
- Client demand drove flows into core solutions and Wealth Management, as well as all four pillars in Schroders Capital
- Net flows into joint ventures and associates of £(8.5) billion, predominantly driven by outflows from money market funds in China
- Group AUM totalled £758.4 billion, down from £778.7 billion at the end of 2024, with currency movements being the principal driver
Summary
Schroders plc reported positive net flows of £1.1 billion, excluding joint ventures and associates, driven by client demand in core solutions and Wealth Management, as well as all four pillars in Schroders Capital. However, net flows into joint ventures and associates were £(8.5) billion, predominantly driven by outflows from money market funds in China. Overall, the company's group assets under management (AUM) totalled £758.4 billion, down from £778.7 billion at the end of 2024, with currency movements being the principal driver of the reduction.