Schroders saw profits drop 15 per cent in 2018 amid a 6 per cent fall in assets, as the UK investment company showed it was not immune to the problems affecting the global asset management industry.

The group, which has £421.4bn of assets under management and administration, had net outflows of £9.5bn last year, reversing near identical gains from 2017.

But Schroders said much of the outflows were from lower margin products, while higher fee areas such as private assets and alternatives fared better.

“We have been pleased with the underlying strength of the business and the resilience of our diversified business model in 2018,” said Peter Harrison, chief executive.

The group increased its total dividend by 1p to 114p for the year, having seen its share price fall by a third throughout 2018.

In October Schroders agreed to enter into a joint venture with Lloyds Banking Group to provide wealth management services to individuals with at least £100,000 in investable assets.

The agreement between the two businesses was part of a deal that would see Schroders take on the lion’s share of a £109bn investment mandate that was previously managed by Standard Life Aberdeen — one of the largest such contracts in Europe.

Elsewhere, Legal & General Investment Management announced on Wednesday it had become the UK’s first £1tn fund manager, growing assets by 3 per cent throughout the year. The insurer-owned investment manager reported 13 per cent growth in its international business.

Mark Zinkula, the outgoing chief executive of LGIM, said: “International expansion has been a strategic priority and we have made significant investments and key hires to ensure we have the right platform for long-term growth in all of our key markets.”

LGIM announced last week that Mr Zinkula would be replaced in the summer by Michelle Scrimgeour, the current chief executive of Emea for Columbia Threadneedle.

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