Schroder's CEO rejects claims of family stake sale
In a recent annual report, the Schroder family has reaffirmed its long-term commitment to Schroders asset management firm. This commitment comes as the company reports a robust financial performance, despite facing certain challenges.
Schroders recorded an adjusted operating profit of £316 million, marking a 7% increase from the previous year. The company's net operating revenue also saw a 2% year-on-year growth, reaching £1.17 billion, driven by a strong performance in wealth management. Wealth management specifically saw a 9% rise, with profits reaching £258.3 million.
However, the company has faced challenges in its joint ventures, particularly in China, resulting in total net outflows of £1 billion. In response, Schroders has "right-sized" its operations in China, a move described as reallocating capital rather than reducing commitment to the region.
Despite speculation about the Schroder family selling its stake in the company, Richard Oldfield, CEO of Schroders, has denied these claims in comments to the Financial Times (FT). He confirmed that two members of the Schroder family are tremendously supportive and have made a clear long-term commitment to the business.
The challenges in China have led to a turnaround in net inflows, with Schroders reporting net inflows of £4.5 billion in the first half of the year, excluding joint ventures. This is a significant improvement from the £3.9 billion of outflows recorded a year prior.
Schroders has also faced a challenging period, with its shares declining about 40% from their peak in 2021. Despite this, the company's total assets under management (AUM) for the half-year ended 30 June 2025 were £776.6 billion.
In a positive development, Schroders launched its global digital assets centre of excellence in Singapore last month. This move is part of the company's ongoing efforts to innovate and adapt to the changing financial landscape.
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CEO Richard Oldfield has made it clear that there is no intention of selling the company's stake. He reiterated this in his comments to the FT, stating that the business is not on the market for sale.
In conclusion, Schroders has reported a strong financial performance, despite facing challenges in its joint ventures, particularly in China. The Schroder family's commitment to the business has been reaffirmed, and there is no intention of selling the company's stake. The launch of the global digital assets centre of excellence in Singapore is a positive step forward in Schroders' ongoing efforts to innovate and adapt to the changing financial landscape.
