Schroders experienced net outflows of £4.2 billion in the first half of the year, intensifying as the asset manager approaches the completion of its £9.9 billion sale to U.S.-based investment firm Nuveen. The outflows were partly attributed to the withdrawal of £6.6 billion by a single “low-margin” client, according to company officials. Chief Executive Officer Richard Oldfield also noted that several large clients have temporarily suspended their long-term investment commitments.

Despite the net outflows, Schroders reported £69.3 billion in gross inflows during the period, an increase of £1 billion from the previous comparable timeframe, which Oldfield described as a sign of continued strong client confidence. The company’s adjusted operating profit surged 46 percent to £459.8 million, reflecting improved profitability amid the evolving client landscape.

Assets under management reached a new peak of £867.8 billion, underscoring the firm’s significant market presence despite the recent client shifts. The planned sale to Nuveen, a major player in the investment management sector, is set to reshape Schroders’ business landscape, with the transaction expected to close later this year subject to regulatory approvals.

Market observers noted that the withdrawal by a single client and the pause by others may reflect shifting strategies among institutional investors amid evolving market conditions. However, the firm’s overall inflows and record assets suggest Schroders remains a trusted manager for many clients globally.

The proposed Nuveen acquisition follows a trend of consolidation in the asset management industry, driven by the desire for scale and diversification in a competitive market environment. Schroders’ performance in the first half indicates resilience, even as the company navigates the changes associated with the impending ownership transition.