Schroders and Ashmore hit by withdrawals as war in Iran troubles investors
Fund managers Schroders and Ashmore suffered a jump in withdrawals last month, as war in the Middle East triggered market volatility and investor nerves.
While stock markets have rebounded in recent days, plenty of edgy investors fled for the exit last month.
Schroders said assets had dropped to £814.4billion at the end of March, down from £823.7billion at the end of 2025, as net outflows jumped to £1.1billion.
Chief executive Richard Oldfield said trading had started strongly in its first quarter, before market sentiment deteriorated in March.
Emerging market specialist Ashmore Group also saw a sharp uptick in outflows, after the Middle East war brought earlier growth to a grinding halt and caused investors to 'sit on their hands'.
Ashmore said assets under management fell three per cent to £37.3billion, driven by a reduction in the value of assets managed, along with net outflows of more than $900million.
In charge: Richard Oldfield is the chief executive of Schroders
Schroders said it had seen strong client demand in the first two months of the year, which was offset by outflows in March.
Within asset management, public markets saw £2.8billion of outflows in the period, while wealth management delivered positive net flows of £300million.
Schroders said: 'In Cazenove Capital and other Wealth, demand from UK private clients remained robust, albeit flows were impacted by the usual significant seasonal tax-related redemptions in January.'
The group said fixed income and multi-asset strategies remained popular, attracting inflows of £1.8billion and £1.2billion respectively, but this was offset by £4.9billion of equity outflows.
Oldfield said client sentiment 'shifted to a more risk-off stance amid heightened geopolitical uncertainty.'
Both fund managers have come under pressure from larger rivals such as Blackrock and Vanguard, which offer cheaper index trackers.
Today's update from Schroders appeared as shareholders prepare to vote today on Nuveen's all-cash takeover offer for Schroders. The deal, announced in February, stunned the City.
Oldfield previously insisted it was a ‘good deal for shareholders’, retaining the Schroders brand and helping to preserve London’s status as a financial centre.
But it prompted dismay in the City at the end of an era for the blue-blooded institution – which has been listed in London since 1959 – as a proudly independent British business.
The deal also represents perhaps the most prominent example of the exodus of companies from the UK stock market.
Schroders was founded in 1804 by Johann Heinrich Schroder and went on to become one of London’s leading merchant banks.
In 2000, it sold its investment banking arm to specialise in asset and wealth management.
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