More than £800m wiped off UK asset supervisor as purchasers pull money

Schroders shares plunged to their lowest level in more than a decade after the asset manager warned clients were pulling cash amid fears about an economic slowdown in China.

The asset manager dropped as much as 14.1pc on the FTSE 100, sending it to the bottom of the index and wiping nearly £829m off the value of the company if the losses hold.

Investors pulled a net £2.3bn from the money manager in the three months to September as it warned over “continued market volatility in China”.

The London-based money manager warned it expects about £8bn of outflows in the current quarter, which is the result of a “legacy mandate” with Scottish Widows.

It said it also expects further losses from three institutional clients of about £2bn.

Chief financial officer Richard Oldfield, who is poised to take over as chief executive, said he will “do what is necessary to deliver” on its “significant potential for profitable growth”.

He added: “Standing still is not an option for Schroders in today’s fast-changing market landscape. We must focus to grow, build greater commercial discipline and drive efficiencies though simplification and flawless execution.”

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