The annual financial statements of Edinburgh fund manager Walter Scott & Partners reveal its assets under management — discretionary and advisory — fell 19% to £58 billion in 2025, with the firm’s new chair lamenting its performance “was materially below benchmark levels.”

Walter Scott & Partners is a subsidiary of Bank of New York Mellon (BNY).

Turnover for 2025 fell 17% to £262 million “reflecting lower average assets under management.”

Profit before tax fell to £157 million from £195 million in 2024. Dividends of £87 million were paid to parent firm BNY, down from £179 million in the prior year “consistent with reduced profitability and a prudent capital management approach.”

Walter Scott said: “The MSCI World Index closed at 4,430 on 31 December 2025, 19% higher than 31 December 2024 close of 3,708. Client rebalancing and de-risking in response to strong markets along with withdrawals due to relative underperformance were the primary drivers of the net cash outflows of £13.8bn (2024: net cash outflows £7.1bn).”

Director “emoluments” in 2025 rose to £10.3 million from £9.8 million.

The firm said: “The aggregate of emoluments and amounts receivable under long term incentive schemes of the highest paid director was £4,103,417 (2024: £4,028,280) …”

Walter Scott’s Managing Director is Jane Henderson. Its Executive Director, Investment and Client Service is Roy Leckie and its Executive Director, Governance and Operations, is Tom Sneddon.

Richard Watt, who succeeded Alex Hammond-Chambers as chair of Walter Scott in January, 2026, wrote: “The board recognises that relative performance in 2025 was materially below benchmark levels.

“During the year we reviewed portfolio positioning, factor exposures, liquidity and portfolio construction discipline in detail.

“We challenged management on the drivers of underperformance and examined scenario analysis under varying market leadership conditions. We sought assurance that portfolios remained aligned with their stated mandates and long-term investment philosophy.

“Recent years have been characterised by narrow market leadership and elevated index concentration. The board’s role is not to adopt a short-term market view, but to ensure that the company applies its investment discipline consistently, manages risk appropriately and communicates transparently with clients.

“Relative performance and client outcomes will continue to receive close oversight.”

Walter Scott’s Managing Director is Jane Henderson. Its Executive Director, Investment and Client Service is Roy Leckie and its Executive Director, Governance and Operations, is Tom Sneddon.