UK asset manager Schroders has reported net client redemptions of £7.4 billion for the first quarter of 2024, with China-focused strategies taking a significant hit.
This marks significant pressure across APAC, EMEA, and the Americas amid macroeconomic uncertainty and underperforming China strategies.
Outflow Drivers
APAC (£4.1 bn)
Redemptions in China-focused equities due to slower economic recovery and geopolitical tensions.
EMEA (£2.3 bn)
Inflation-driven volatility pushes institutional investors into defensive allocations.
Americas (£1.0 bn)
Tightening U.S. monetary policy prompts risk-averse client behaviour.
Performance Pressures
China growth funds lag benchmarks like the MSCI China Index, amplifying redemptions, while global diversified strategies partially offset losses.
Contrarian Asset-Manager Picks
Liontrust Asset Management
Strong ESG inflows support its sustainable funds amid sector turbulence.
Fundsmith
Flagship growth fund attracts loyal investors through consistent performance.
M&G
Fixed-income products benefit from higher yields, boosting inflows.
Actionable Recovery Measures
1. Fee and Pricing Reevaluation
Introduce performance-based fees and temporary cuts on underperforming funds to retain clients.
2. Diversified, Non-Correlated Strategies
Develop private credit, infrastructure, and commodity-based offerings to meet yield-seeking demand.
Subscriber Edge
Advisor’s Gateway subscribers access real-time fund-flow dashboards to spot trends before they fully materialise.
