Schroders said on Thursday that first quarter pre-tax profits fell 71% from a year ago, driven by weaker demand from investors, and that market volatility is likely to persist in the near term, prompting the firm to reduce staff costs.

The UK-based asset manager said pre-tax profit after exceptional items for the first three months ending March 31 was £12.2m, down from £42.2m in the same period a year ago.