Latest news with #Schroders'
Yahoo
20-05-2025
- Business
- Yahoo
Inflation Still Weighs Heavily on Retirees
Schroders' Retirement Study Reveals 62% Don't Know How Long Their Money Will Last NEW YORK, May 20, 2025--(BUSINESS WIRE)--While the impact of tariffs on inflation remains to be seen, Schroders 2025 US Retirement Survey reveals a growing number of retired Americans are worried about the impact of rising prices on their savings. Just two in five retirees (40%) believe they have saved enough money for retirement, nearly half (45%) report their expenses in retirement are higher than they expected, and most (62%) admit they have no idea how long their savings will last. The top five concerns plaguing retired Americans in 2025 include (% at least slightly concerned): Inflation lessening the value of assets (92% - up from 89% in 2024) Higher than expected healthcare costs (86% - up from 85%) A major market downturn significantly reducing assets (80% - up from 76%) Not knowing how to best take retirement income and/or draw down assets (71% - up from 69%) Outliving assets (70% - up from 68%) Notably, 84% of retired Americans wish they could better protect their savings from the effects of inflation. "Rising prices on essentials like housing, food, and healthcare have significantly diminished the purchasing power and financial security of retirees," said Deb Boyden, Head of U.S. Defined Contribution at Schroders. "The uncertainty that's currently plaguing so many retirees is a poignant reminder of the value of proper planning, products and personalized advice for a comfortable retirement." With higher-than-expected healthcare costs top of mind, retirees report spending an average of 15% of their total monthly income on healthcare costs such as insurance premiums, prescription costs, and out-of-pocket expenses. More than half of all retirees surveyed (58%) said that they expected Medicare to have covered a greater portion of their healthcare expenses. Nearly One-in-Five Retirees "Struggling" or Worse Amid rising costs, economic uncertainty and financial woes, the percentage of retirees who are concerned that financial stress will impact their overall health, ticked higher from 33% in 2024 to 36% in 2025. Notably, one-in-four retirees (25%) say they have lost sleep worrying about their financial situation, and 27% spend an hour or more per day worrying about money. When survey participants were asked to describe their financial situation, their responses revealed the toll insufficient savings has on a significant portion of retirees: 5% say they are "living the dream" 37% are "comfortable" 39% are "not great but not bad" 16% are "struggling" 3% are "living the nightmare" Despite the financial challenges and stress impacting many retired Americans, 64% don't work with a professional financial advisor, and 44% don't have a plan in place for estimating expenses, determining how much income is needed, and developing an investment strategy to meet their goals. "The path to closing the retirement savings gap is paved with better planning, products, and access to advice," said Boyden. "As pension plans continue to be replaced by defined contribution plans like the 401k, the importance of being proactive in saving and planning for retirement can not be overstated. It's one of the greatest challenges and opportunities facing plan participants and the firms striving to provide solutions that can improve their retirement readiness." About the Survey The Schroders 2025 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 29-79, including 373 retired Americans. The survey was conducted from March 25 to April 17 in 2025. For more information on the Schroders 2025 U.S. Retirement Survey, visit here. Note to Editors To view the latest press releases from Schroders, visit: Newsroom - Media Relations - Schroders Schroders plc Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £778.7 billion (€941.8 billion; $975.3 billion) of assets under management at 31 December 2024. As a UK listed FTSE100 company, Schroders has a market capitalization of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Schroder family continues to be a significant shareholder, holding approximately 44% of the issued share capital. Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate. Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms. Important Information: All investments involve risk, including the loss of principal. The views shared are those of the author or individual quoted and may not reflect the views of Schroders Plc or any of its affiliates. This content is for informational purposes only and should not be interpreted as investment guidance. Schroder Investment Management North America Inc (SIMNA Inc.), SEC registered investment adviser, CRD Number 105820. View source version on Contacts For further information, please contact: Jennifer ManserHead of Communications & Business Management, North
Yahoo
02-04-2025
- Business
- Yahoo
Schroders emerged during the Napoleonic Wars – now it faces a battle for its future
When blue-blooded fund manager Schroders opened its new headquarters near The Barbican seven years ago, it invited a suitably regal guest to do the honours. The historic money manager, which was founded during the Napoleonic Wars, invited the late Queen Elizabeth II to cut the ribbon for the 308,000 sq ft office, making a major coup for the eponymous Schroders family, who have controlled the business for two centuries. Flanked by Bruno Schroder, the 85-year-old family patriarch, and chairman Michael Dobson, the Queen's visit marked a new dawn for the FTSE 100 giant, which was attempting to reinvent itself as a modern-day asset manager. Yet seven years on from the prestigious opening, the British financial titan is at a crossroads. Buffeted by an industry-wide downturn, Schroders is trying to plot a new course in a rapidly changing environment. Schroders' problem had been a rapid sea change in investment markets, away from its bread-and-butter active stock picking model towards cheaper 'passive' funds – like ETFs – and private capital. It has tried to keep pace by buying numerous businesses that oversee private capital, but questions remain over the success of this strategy. As a result, investors are growing weary. Shares in Schroders hit their lowest level in a decade last year, and despite a recent upswing, remain 45pc below their recent peak in 2021. For the 15 or so members who form the 14th generation of the Schroder family, and still own 44pc of the group, the financial repercussions have been severe. Their combined wealth has dropped from an estimated £4.6bn when shares peaked to about £2.4bn today – a loss of £2.2bn in under four years. Bruno Schroder, who died in 2019, has since been replaced on the board by his daughter, the billionaire heiress Leonie Schroder. Along with her cousin, Claire Fitzalan Howard, they represent the interests of the secretive Schroder family, who are no doubt keen to see the firm prosper once more. 'The family wants to see a share price which is going in the right direction rather than the wrong direction – and it had been going in the wrong direction for seven years,' says Rae Maile, from Panmure Liberum. To arrest the slide, Richard Oldfield, the new chief executive who took the reins in November, has laid out a radical £150m cost-cutting plan and ambitious new financial targets. Hundreds of jobs could go as part of the overhaul, with the City abuzz with questions over whether Oldfield and Meagen Burnett, his finance chief, can turn the Schroders ship around – or whether a more dramatic break-up is needed. 'Schroders has been trying to be all things to all people, but they have missed out on the scale game,' says one industry observer. 'Their clients are buying cheaper passive funds at one end, and private markets funds at the other – and Schroders is getting squeezed in the middle.' Schroders had been Britain's leading stock picker since the 1960s when it rode the occupational pension scheme boom by managing money for the likes of the Post Office and the Marylebone Cricket Club. Such was its prestige that Michael Verey, the former chairman, once modestly declared that Schroders was 'rather good at investments, having done it for a long time, and is not a bit ashamed of it'. Yet despite its storied reputation, Schroders has struggled to maintain its dominance in the 21st century – as Wall Street machines like BlackRock and KKR have put the squeeze on the industry with their cut-throat American drive. Peter Harrison, who left in November after a decade as chief executive, sought to expand more into more esoteric investments such as private credit and real estate – areas he dubbed 'areas of fast-flowing waters' – to keep Schroders in the race. As part of the strategy, he acquired numerous companies in a scattergun M&A offensive, spending significant sums on 'alternative' fund managers like Benchmark Capital, Adveq, Blue Orchard, SPW, River and Greencoat Capital. But up against a better-resourced American private credit managers such as Carlyle and Blackstone, Schroders never appeared particularly comfortable operating away from its main strengths of stockpicking and wealth management. Some say Harrison had the right idea, but the execution let him down because he didn't put his foot on the gas. 'Harrison spent a lot of shareholder funds over a long period of time buying shiny new toys which then didn't actually deliver,' says Maile. 'The areas where it has been doing well were being sidelined by Harrison, who was chasing the view of the world that said it's all about private markets. If you did work in public markets at Schroders, you were the poor cousin.' Schroders' current predicament is ironic because it has rarely struggled for relevance in financial markets. Blue-blooded, old school and part of the financial establishment, the history of the group is entwined with the history of Britain. Founded in London by Johann Heinrich Schröder, a member of a prosperous Hamburg family, Schroders was for centuries a major British merchant bank, ranking alongside the Rothschilds, Kleinworts and Warburgs in terms of prestige. It originally financed cotton imports from the US before the Civil War, and later the construction of the London Underground and the Channel Tunnel. But in 2000, the Schroder family, then led by George Mallinckrodt and Bruno Schroder, severed that link. They sold the historic banking business to Citigroup, leaving it as a standalone fund manager. Despite the risks, their bold gamble paid handsome dividends. Assets under management at Schroders swelled from £132bn in 2000 to over £300bn just before Harrison took over in 2015. Since then, assets under management have jumped again to an astonishing £780bn. Yet this increase has masked hidden issues threatening the business. Last year, clients pulled more money than they put in, with many ditching their stock market investments for private capital. That has raised questions over what Schroders wants to be and whether it has the right strategy. 'They're not trying to be KKR, they're trying to be like a version of Partners Group or Hamilton Lane in the US', says one fund industry expert, referring to groups that sell private assets to deep-pocketed pension funds and charities. Oldfield has pledged to get a grip on Schroders' private capital units, known as Schroders Capital, training up the 40 or so specialist salesmen who explain the fiendishly complex products to investors to increase investment flows. While assets under management have increased from £46bn in 2020 to £70bn today, inflows have slowed over the past two years. He has also dialled down expectations, pointing to the likelihood of lower inflows into the private markets business over the next three years. But what if Oldfield's plan to ride both horses in public and private markets fails? As another option, David McCann, a Numis analyst, says Schroders could ditch its in-house fund manager completely and become a standalone wealth manager. Schroders added to its blue-blooded credentials a decade ago when it bought Cazenove Capital, a one-time broker to the Queen and formerly chaired by David Mayhew, a former Etonian once dubbed one of Britain's most respected bankers. Today, Cazenove caters for the super-rich, with customers requiring a minimum of £3m just to get through the door. Splitting off the fund managers and focusing on blue-ribbon Cazenove would leave Schroders as a 'simpler, but market-leading wealth management business', McCann says – with the cash generated from the sale handed out to shareholders. Such a move would mirror Mallinckrodt and Bruno Schroder's turn-of-the-century decision to ditch its banking business – a bold gamble that paid off handsomely. Yet some are not convinced. 'Fund management runs through Schroders like a stick of rock. It's not as easy to do as it sounds,' says another City source. Oldfield has also played down the idea, pointing out that Cazenove relies heavily on Schroders' fund management division. Yet Schroders needs to keep running to stay in the race. In 1901, banking scion Herman Kleinwort said of the group: 'They are fond of big deals and do a lot of speculation.' The Schroder family, its 6,200 staff and the City of London itself will all be hoping that Oldfield pulls off his ambitious overhaul to help the historic fund manager rediscover some of that former magic. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
02-04-2025
- Business
- Telegraph
The blue-blooded City fund giant battling to stay relevant
When blue-blooded fund manager Schroders opened its new headquarters near The Barbican seven years ago, it invited a suitably regal guest to do the honours. The historic money manager, which was founded during the Napoleonic Wars, invited the late Queen Elizabeth II to cut the ribbon for the 308,000 sq ft office, making a major coup for the eponymous Schroders family, who have controlled the business for two centuries. Flanked by Bruno Schroder, the 85-year-old family patriarch, and chairman Michael Dobson, the Queen's visit marked a new dawn for the FTSE 100 giant, which was attempting to reinvent itself as a modern-day asset manager. Yet seven years on from the prestigious opening – the British financial titan is at a crossroads. Buffeted by an industry-wide downturn, Schroders is trying to plot a new course in a rapidly changing environment. Schroders' problem had been a rapid sea change in investment markets, away from its bread-and-butter active stock picking model towards cheaper 'passive' funds – like ETFs – and private capital. It has tried to keep pace by buying numerous businesses that oversee private capital, but questions remain over the success of this strategy. As a result, investors are growing weary. Shares in Schroders hit their lowest level in a decade last year, and despite a recent upswing, remain 45pc below their recent peak in 2021. For the 15 or so members who form the 14th generation of the Schroder family, and still own 44pc of the group, the financial repercussions have been severe. Their combined wealth has dropped from an estimated £4.6bn when shares peaked to about £2.4bn today– a loss of £2.2bn in under four years. Bruno Schroder, who died in 2019, has since been replaced on the board by his daughter, the billionaire heiress Leonie Schroder. Along with her cousin, Claire Fitzalan Howard, they represent the interests of the secretive Schroder family, who are no doubt keen to see the firm prosper once more. 'The family wants to see a share price which is going in the right direction rather than the wrong direction – and it had been going in the wrong direction for seven years,' says Rae Maile from Panmure Liberum. To arrest the slide, Richard Oldfield, the new chief executive who took the reins in November, has laid out a radical £150m cost-cutting plan and ambitious new financial targets. Hundreds of jobs could go as part of the overhaul, with the City abuzz with questions over whether Oldfield and Meagen Burnett, his finance chief, can turn the Schroders ship around – or whether a more dramatic break-up is needed. 'Schroders has been trying to be all things to all people, but they have missed out on the scale game,' says one industry observer. 'Their clients are buying cheaper passive funds at one end, and private markets funds at the other – and Schroders is getting squeezed in the middle.' Schroders had been Britain's leading stock picker since the 1960s when it rode the occupational pension scheme boom by managing money for the likes of the Post Office and the Marylebone Cricket Club. Such was its prestige that Michael Verey, the former chairman, once modestly declared that Schroders was 'rather good at investments, having done it for a long time, and is not a bit ashamed of it'. Struggled to maintain dominance Yet despite its storied reputation, Schroders has struggled to maintain its dominance in the 21st century – as Wall Street machines like BlackRock and KKR have put the squeeze on the industry with their cut-throat American drive. Peter Harrison, who left in November after a decade as chief executive, sought to expand more into more esoteric investments such as private credit and real estate – areas he dubbed 'areas of fast-flowing waters' – to keep Schroders in the race. As part of the strategy, he acquired numerous companies in a scattergun M&A offensive, spending significant sums on 'alternative' fund managers like Benchmark Capital, Adveq, Blue Orchard, SPW, River and Greencoat Capital. But up against a better-resourced American private credit managers such as Carlyle and Blackstone, Schroders never appeared particularly comfortable operating away from its main strengths of stockpicking and wealth management. Some say Harrison had the right idea, but the execution let him down because he didn't put his foot on the gas. 'Harrison spent a lot of shareholder funds over a long period of time buying shiny new toys which then didn't actually deliver,' says Maile. 'The areas where it has been doing well were being sidelined by Harrison, who was chasing the view of the world that said it's all about private markets. If you did work in public markets at Schroders, you were the poor cousin.' Schroders' current predicament is ironic because it has rarely struggled for relevance in financial markets. Blue-blooded, old school and part of the financial establishment, the history of the group is entwined with the history of Britain. Founded in London by Johann Heinrich Schröder, a member of a prosperous Hamburg family, Schroders was for centuries a major British merchant bank, ranking alongside the Rothschilds, Kleinworts and Warburgs in terms of prestige. It originally financed cotton imports from the US before the Civil War, and later the construction of the London Underground and the Channel Tunnel. But in 2000, the Schroder family, then led by George Mallinckrodt and Bruno Schroder, severed that link. They sold the historic banking business to Citigroup, leaving it as a standalone fund manager. Despite the risks, their bold gamble paid handsome dividends. Assets under management at Schroders swelled from £132bn in 2000 to over £300bn just before Harrison took over in 2015. Since then, assets under management have jumped again to an astonishing £780bn. Yet this increase has masked hidden issues threatening the business. Last year, clients pulled more money than they put in, with many ditching their stock market investments for private capital. That has raised questions over what Schroders wants to be and whether it has the right strategy. 'They're not trying to be KKR, they're trying to be like a version of Partners Group or Hamilton Lane in the US', says one fund industry expert, referring to groups that sell private assets to deep-pocketed pension funds and charities. Oldfield has pledged to get a grip on Schroders' private capital units, known as Schroders Capital, training up the 40 or so specialist salesmen who explain the fiendishly complex products to investors to increase investment flows. While assets under management have increased from £46bn in 2020 to £70bn today, inflows have slowed over the past two years. He has also dialled down expectations, pointing to the likelihood of lower inflows into the private markets business over the next three years. Fund management 'runs through Schroders like a stick of rock' But what if Oldfield's plan to ride both horses in public and private markets fails? As another option, David McCann, a Numis analyst, says Schroders could ditch its in-house fund manager completely and become a standalone wealth manager. Schroders added to its blue-blooded credentials a decade ago when it bought Cazenove Capital, a one-time broker to the Queen and formerly chaired by David Mayhew, a former Etonian once dubbed one of Britain's most respected bankers. Today, Cazenove caters for the super-rich, with customers requiring a minimum of £3m just to get through the door. Splitting off the fund managers and focusing on blue-ribbon Cazenove would leave Schroders as a 'simpler, but market-leading wealth management business', McCann says – with the cash generated from the sale handed out to shareholders. Such a move would mirror Mallinckrodt and Bruno Schroder's turn-of-the-century decision to ditch its banking business – a bold gamble that paid off handsomely. Yet some are not convinced. 'Fund management runs through Schroders like a stick of rock. It's not as easy to do as it sounds,' says another City source. Oldfield has also played down the idea, pointing out that Cazenove relies heavily on Schroders' fund management division. Yet Schroders needs to keep running to stay in the race. In 1901, banking scion Herman Kleinwort said of the group: 'They are fond of big deals and do a lot of speculation.' The Schroder family, its 6,200 staff and the City of London itself will all be hoping that Oldfield pulls off his ambitious overhaul to help the historic fund manager rediscover some of that former magic.
Yahoo
08-03-2025
- Business
- Yahoo
Schroders Full Year 2024 Earnings: Beats Expectations
Revenue: UK£3.02b (up 1.0% from FY 2023). Net income: UK£417.0m (up 7.4% from FY 2023). Profit margin: 14% (in line with FY 2023). EPS: UK£0.26 (up from UK£0.25 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 2.9%. Looking ahead, revenue is expected to decline by 2.4% p.a. on average during the next 3 years, while revenues in the Capital Markets industry in the United Kingdom are expected to grow by 4.0%. Performance of the British Capital Markets industry. The company's shares are up 10% from a week ago. While earnings are important, another area to consider is the balance sheet. See our latest analysis on Schroders' balance sheet health. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Reuters
06-03-2025
- Business
- Reuters
Schroders outlines nearly $200 million in cost cuts in revamp
Summary Companies Operating profit beats analyst forecasts Schroders aims to attract 20 bln pounds to private assets arm Shares up 5% in early trading LONDON, March 6 (Reuters) - Schroders (SDR.L), opens new tab outlined plans to cut 150 million pounds ($194 million) from its costs over the next three years in a strategy update on Thursday aimed at rebooting flagging performance at the 221-year-old British money manager. The FTSE 100 company also said clients pulled a net 4.7 billion pounds from its funds in 2024 - underlining the pressure on the business - compared with 1 billion pounds of inflows the prior year. Analysts at JPMorgan said in a note that the cost cuts - equivalent to 8% of Schroders' operating costs of 1.8 billion pounds - would be welcomed by investors, adding that its operating profit of 640.5 million pounds for the year beat forecasts. Schroders' shares gained 5% in early trading. Chief Executive Richard Oldfield stepped up to the role in November and is aiming to revive Schroders' fortunes after a poor run of earnings last year dragged its shares down 25%, a third straight annual decline. Like rival mid-sized fund houses, Schroders has struggled to fend off competition from huge U.S. rivals such as BlackRock and Vanguard offering cheaper passive products like index-trackers. Reuters reported last week that representatives of the company's founding Schroder family, which still own a 44% stake and has two family members on the board, had challenged executives to improve its fortunes faster. The company said the targeted savings would come from simplifying processes and technology improvements. Finance chief Meagen Burnett told reporters the company, which employs 6,400 people, would have fewer staff after the cuts, but did not give any further detail. Schroders said it would incur restructuring costs of around 200 million pounds, which often stem from layoffs. RAMPING UP NEW BUSINESS Former finance chief Oldfield also outlined targets to ramp up new business from its higher-margin wealth and private markets units, including attracting 20 billion pounds into its private assets arm Schroders Capital in three years. "Schroders is an exceptional company. We have all we need to ensure this business thrives," he said. Oldfield had already moved quickly to cut costs, shedding around 200 staff and more than halving the size of its executive committee. Schroders' shares had gained 17% so far this year ahead of the strategy update. The company's overall assets under management increased 4% to 778.7 billion pounds and it announced an unchanged dividend for the year of 21.5 pence per share including a 15 pence final dividend. Oldfield said he had spoken to managers at French money manager Tikehau since they had built up a 5% stake in the company last month, adding they had expressed that they saw value in the business. Tikehau leapt into its top five backers and has said it sees potential for "commercial collaboration" with the British company. Oldfield said he was open to collaboration if it was in the best interests of clients. ($1 = 0.7751 pounds) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
