Strategy

Schroders Flexes Shareholder Voting Muscle; Sets Out Wealth Growth Targets

Tom Burroughes, Group Editor, 8 October 2021

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Wealth growth ambitions
With its wealth management joint venture with the UK’s Lloyds Banking Group, and its strategic stake in Sandaire, the multi-family office, Schroders is targeting an audience ranging from the mass-affluent to ultra-high net worth space.

It wants to have a total of £115 billion in assets under management by 2025, the group said in an update on its wealth business progress. It has four franchises: Cazenove Capital; Schroders Personal Wealth (its Lloyds JV); Schroders Wealth Management, and Benchmark Capital. Now a global organisation, Schroders has booking centres in the UK, the Channel Islands, Switzerland, Hong Kong and Singapore. 

Its presentation refers to four opportunities: wealth creation in the UK regions; fragmentation of family offices; declining UK advisor numbers as people retire from the sector, and the need for clients to have a single picture of financial affairs. 

At present, wealth management business accounts for 16 per cent of the Schroders group’s total pre-tax profit; this business has a higher margin on assets (56 per cent) than for its asset management side (37 per cent).

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