Schroders profits plummet as it becomes the latest money manager to come under pressure
Profits at Schroders plummeted by almost a quarter as the 218-year-old firm became the latest money manager to come under pressure.
The FTSE 100 asset manager pointed to ‘challenging markets and lower performance fees’, as it unveiled full-year profits.
It comes amid a tumultuous time – just days after Stephen Bird, boss of Abrdn, said 2022 was ‘one of the hardest investing years in living memory’.
Schroders pointed to ‘challenging markets and lower performance fees’, as it unveiled full-year profits
Schroders’ shares tumbled 3.7 per cent, or 18.7p, to 481.5p yesterday. Its share price has lost 22 per cent of its value over the past year.
Profit slipped to £586.9million, for the full-year to December 31, a 23 per cent fall from the £764.1million in 2021.
Falling markets across all asset divisions hammered management and performance fees across its core investment management business.
Assets under management declined 4 per cent to £737.5billion from £766.7billion, after being dragged down by market and foreign exchange movements.
Chief executive Peter Harrison, who was paid £8.5million in 2021, said 2022 was a ‘stress test’ for its strategy.
‘The businesses we have been building – across wealth management, private assets and solutions – performed strongly,’ he added.
The firm has been diversifying as it looks to move towards more longer-term revenues, with its private assets business Schroders Capital netting a record £17.5billion of fundraising, particularly in property and private equity.
