Latest news with #Schroders
Reuters
3 days ago
- Business
- Reuters
LSEG appoints Schroders Chair Elizabeth Corley to board
May 30 (Reuters) - London Stock Exchange Group (LSEG.L), opens new tab said on Friday Elizabeth Corley, chair of British fund manager Schroders (SDR.L), opens new tab, will join its board of as a non-executive director. Corely is set to join the LSEG board in the fourth quarter of the year. Reuters provides news for LSEG's news and data terminal Workspace.
Yahoo
3 days ago
- Business
- Yahoo
Schroders chair Corley to join board of London Stock Exchange-owner
Dame Elizabeth Corley, the chair of asset management giant Schroders, is joining the board of London Stock Exchange Group (LSEG) - a move which puts her in a strong position to take the helm there in the coming years. Sky News has learnt that LSEG plans to announce later on Friday that Dame Elizabeth will become a non-executive director of the company. While there is no process underway to find a successor to Don Robert, who has chaired LSEG since May 2019, people close to the exchange-owner speculated that she would be an obvious candidate to do so. Money blog: Glastonbury fan to miss out despite spending more than £16,500 on stay One fund manager also suggested that her dual roles on the boards of Schroders and LSEG could raise questions about potential conflicts of interest given that Schroders is itself listed on the LSE and is a significant user of its services. That idea was rejected by insiders at LSEG on Friday morning. The issue of leadership succession at LSEG is coming into sharper focus for investors because David Schwimmer, its chief executive, has led the company since 2018. Leading shareholders are likely to prefer the appointment of a new chair ahead of Mr Schwimmer's eventual departure. LSEG now has a market capitalisation of over £60bn, with the London bourse representing only a small proportion of its income. The exchange is facing searching questions about its ability to attract new flotation candidates, with those doubts likely to be exacerbated by this week's reports that Shein, the Chinese-founded online fashion giant, is switching its focus to a listing in Hong Kong. LSEG declined to comment.
Sky News
3 days ago
- Business
- Sky News
Schroders chair Corley to join board of London Stock Exchange-owner
Dame Elizabeth Corley, the chair of asset management giant Schroders, is joining the board of London Stock Exchange Group (LSEG) - a move which puts her in a strong position to take the helm there in the coming years. Sky News has learnt that LSEG plans to announce later on Friday that Dame Elizabeth will become a non-executive director of the company. While there is no process underway to find a successor to Don Robert, who has chaired LSEG since May 2019, people close to the exchange-owner speculated that she would be an obvious candidate to do so. One fund manager also suggested that her dual roles on the boards of Schroders and LSEG could raise questions about potential conflicts of interest given that Schroders is itself listed on the LSE and is a significant user of its services. That idea was rejected by insiders at LSEG on Friday morning. The issue of leadership succession at LSEG is coming into sharper focus for investors because David Schwimmer, its chief executive, has led the company since 2018. Leading shareholders are likely to prefer the appointment of a new chair ahead of Mr Schwimmer's eventual departure. LSEG now has a market capitalisation of over £60bn, with the London bourse representing only a small proportion of its income. The exchange is facing searching questions about its ability to attract new flotation candidates, with those doubts likely to be exacerbated by this week's reports that Shein, the Chinese-founded online fashion giant, is switching its focus to a listing in Hong Kong.
CNBC
22-05-2025
- Business
- CNBC
How a Schroders fund manager doubled returns on a 'rubbish' stock in 3 months
No stock is off the table for Simon Adler, a value investor at Schroders. "We are happy to buy the worst business you have ever conceived, provided it is cheap enough," Adler told the Value Investor conference of fund managers in London on Wednesday. Adler co-manages the Global Recovery, Global Income and Global Sustainable Value strategies at the British asset manager. He said he can back up his claim. "We can prove that because we have bought the worst business anyone can conceive," Adler added, before describing Italian oilfield services company Saipem as a "truly rubbish" stock in 2022. Yet, Adler's fund bought shares in Saipem around September of that year and doubled returns in about three months, the fund manager said. Earlier in 2022, Saipem had failed to raise capital through an auction to public market investors, and the stock tumbled from around 2.70 euros by about 70% in the weeks after. SPM-IT 5Y line That meant Saipem's investment banks, which included BNP Paribas , Citi , Deutsche Bank , HSBC , Intesa Sanpaolo and UniCredit , who had underwritten the new equity, were forced to buy them. Adler's team approached the investment banks and offered them 50 cents per share. However, the banks refused to sell at that price. Adler persisted. "Eventually, I think, on the fourth or fifth time of asking them, they sold us a big wedge," he said, by which time the stock had tumbled to 60 cents a share, a bottom. Saipem shares then rallied by more than 100% by the start of the following year. "We got it at such an incredibly low price that we were able to double our clients' money [in] the next three months," the Schroders fund manager added. At the time, Saipem, alongside other companies in the oilfield services sector, was recovering from the ultra-low oil prices during the pandemic that had pushed many in the sector deep into the red. The company's stock, since the start of 2023 and around the time Adler sold the shares, had rallied by a further 80% due to improving confidence among investors over the company's financial performance. For instance, late last month, the company reported revenues of 3.52 billion euros for the first quarter, which beat expectations of 3.47 billion euros. Similarly, the company's adjusted profits of 351 million euros came ahead of the market's expectations of 339.1 million euros. This week, it is also set to make a dividend payment of 333 million euros for the first time in a decade. Wall Street's bullish view of Saipem Even after the turnaround, Wall Street analysts believe there is further upside for the stock. The consensus price target of analysts polled by FactSet points to 39% upside for Saipem over the next 12 months. "We remain Outperform with €3.40 price target underpinned by the company's strong backlog and unchanged guidance," RBC Capital Markets analyst Victoria McCulloch said in an April 24 note to clients. McCulloch also suggested the stock had given up some of the strong gains seen in 2024, and the 10% decline this year could be attributed to the current macroeconomic factors rather than a company-specific issue. Others share that view, including Berenberg's analysts led by Richard Dawson. "The stock has taken a leg lower in recent weeks due to weaker sentiment from lower commodity prices," Dawson said in a note to clients on April 30. "However, management has not yet started to see changes to clients' investment decisions, with major tenders still occurring and a stable (and large) pipeline of future opportunities available to Saipem." More broadly, earlier this year, the company announced that it's pursuing a merger with its peer Subsea 7, and will emerge as Saipem7 once the transaction completes. JPMorgan analysts also remain bullish in their investment case for the stock. "Saipem's investment case has been blighted by execution issues historically," the Wall Street bank's analyst Kate Somervill said in a note to clients in March. "That said, under the new management team, the company has gone through a thorough backlog review and has returned to a period of high earnings growth (consistently beating guidance). We see significant backlog growth from its exposure to offshore where there are only three key global players, and it should benefit from strong pricing power given market consolidation," Somervill added. As for Schroder's Adler, the funder manager continues to look for value stocks — and isn't deterred by the quality of the business behind them. "So, whilst we would rather buy good quality businesses — and we do like buying good quality businesses — if you're looking at the cheapest bit of the market, you have to look at everything," Adler added. Saipem declined to comment.
Yahoo
20-05-2025
- Business
- Yahoo
Inflation remains the top worry for retirees, with 92% fearing their assets are being eaten away
Though inflation has been cooling in recent months, it's not enough to assuage the fears of retirees, almost all of whom are worried about spending down their savings sooner than planned. And as they stare down the possibility of higher prices linked to President Donald Trump's wide-reaching tariff policies and a possibly lower Social Security cost-of-living adjustment, those fears could intensify. That's according to asset manager Schroders 2025 U.S. Retirement Survey, which finds that 92% of retirees report they are worried about inflation lessening the value of their assets, up from 89% last year and the top concern listed. Some 45% of respondents report their expenses in retirement are higher than they expected. 'Improving inflation data has not eased the fears of retirees,' says Deb Boyden, head of U.S. defined contribution at Schroders. 'Rising prices on essentials like housing, food, and healthcare have significantly diminished the purchasing power and financial security of retirees.' Relief, at least in the near term, looks unlikely. Inflation is threatening to rear its head again as economists warn of the after-effects of the Trump administration's current tariff policies. Though it's too soon to say exactly what the policies will end up being—including how high they will go, what countries they will be applied to, and to what goods—the imposed and scheduled tariffs could lead average tax increase of $1,190 in 2025 and $1,462 in 2026 on the average U.S. household, according to the right-leaning Tax Foundation. Indeed, stores like Walmart have already warned about higher prices to come. That could stretch already thin budgets to the brink. Many near and current retirees, particularly on the lower end of the income spectrum, have a retirement savings gap, or a difference between what they have saved for their post-work life and what they will likely need. About 70% of all baby boomers who have yet to retire may not being able to replace their preretirement lifestyle, according to Vanguard. 'Given the uncertainty surrounding potential tariffs, retired Americans are understandably worried about the impact of rising prices on their savings,' says Boyden. 'This widespread concern offers a cautionary tale for younger generations: the sooner you start planning and saving for retirement, the more likely you'll be able to fully enjoy your golden years.' For those who are already retired, inflation can be particularly onerous because many are living on a fixed income, and a growing share of seniors are living in poverty in the U.S. Social Security benefits make up 31% of the income of people over age 65, and nearly 9 in 10 Americans age 65 or older were collecting Social Security at the end of 2024. And the annual Social Security cost-of-living adjustment (COLA) is not likely to make up much of the difference. Though the rise will be officially reported in October, the nonpartisan advocacy group The Senior Citizens League is estimating it will be around just 2.3% next year. If tariffs do increase inflation more over the next few months, that COLA could grow, the organization says. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers in the third quarter of each year. This year, the COLA was 2.5%, down slightly from 2023's 3.2% and significantly from the pandemic-fueled height of 8.7% in 2022. One reason tariffs could be particularly harmful to retirees is because of the potential for drug prices to spike. The U.S. imports drugs from countries including Canada, China, India, and Mexico, all of which have had higher import taxes placed on them by the Trump administration. The U.S. imported $213 billion worth of drugs in 2024. 'Placing broad-based tariffs on goods from numerous countries could have a profoundly negative impact on the daily lives of seniors, including the costs of drugs and medical equipment that many seniors rely on,' says Shannon Benton, executive director of the Senior Citizens League. 'It is also highly likely that import taxes will keep food prices high, increase auto insurance costs, and contribute to higher inflation, among other effects.' Tariffs could backfire particularly when it comes to generic drugs, which account for 90% of U.S. prescriptions, according to a story published in the Harvard Business Review by Marta E. Wosińska, senior fellow at the Center on Health Policy at the Brookings Institution, and David Blumenthal, professor at the Harvard T.H. Chan School of Public Health. These are far more affordable than name-brand drugs for many people, but they also have much smaller margins for manufacturers. Many are produced in India, and it is unlikely that manufacturing would be moved to the U.S., the authors write. 'What is more likely is that we will see foreign generic manufacturers leave the U.S. market because of low profit margins combined with their inability to pass through the costs of tariffs to buyers,' Wosińska and Blumenthal write. 'Over the long term, tariffs may also increase the prices of branded drugs, which consumers already find unaffordable in many cases.' And seniors are already struggling with their health care costs in retirement—86% say they are higher than expected, according to the Schroders survey, which eats away at savings. Though Trump signed an executive order on May 12 aimed at lowering drug prices—prescription drug prices are two to three times higher in the U.S., on average, than they are in other developed nations—the policy would be 'challenging to practically implement,' because it likely requires an act of Congress, JPMorgan analysts wrote in a note following the announcement. This story was originally featured on
