Retail clients bolster Schroders’ inflows
Schroders has secured further distribution success through the selection of four of its funds – investing in the UK, European, and Japanese equities, plus fixed income – by the multi-manager range promoted by Skandia Investment Management.
The deals reflect Schroders’ latest results which showed that of the £25.9bn (e38bn) inflows in 2004, £17.4bn came from retail and private banking clients.
Schroders said its client profile continues to diversify, with retail and private banking clients responsible for 35 per cent of its £105.6bn under management, but crucially 55 per cent of net revenues. They accounted for less than half of net revenues the previous year.
Net outflows of money from UK pension schemes almost doubled to £8.4bn in 2004. But despite this, higher margins from retail business outweighed the low fees paid by institutions pulling out of Schroders’ UK balanced mandates.
The results are a vindication for the sometimes unpopular strategy of Schroders’ wily Italian global distribution chief Massimo Tosato, who has overcome strong old-school UK opposition to remould the firm’s image from a conservative British pension player to specialist international house.
Schroders’ private banking division, under Sally Tennant, secured net new assets of £700m in 2004, a vast improvement on 2003, when assets were £400m down.
Like many competitors, Ms Tennant’s unit has taken refuge in the manufacturing and sale of structured products, which she refers to as “tailored solutions.”
