Schroders’ earnings plunge as he becomes latest fund manager under pressure
Schroders’ earnings plunged by nearly a quarter as the 218-year-old firm became the latest fund manager under pressure.
The FTSE 100 asset manager pointed to “challenging markets and lower performance fees” as it revealed full-year earnings.
It comes amid a tumultuous time, just days after Abrdn boss Stephen Bird said 2022 was “one of the toughest investment years in living memory.”
Schroders pointed to “challenging markets and lower performance fees” as it disclosed full-year earnings.
Schroders shares fell 3.7 percent, or 18.7 pence, to 481.5 pence yesterday. Its share price has lost 22 percent of its value over the past year.
Profit fell to £586.9m for the full year to December 31, a 23% drop from £764.1m in 2021.
Falling markets across all asset divisions hit management and performance fees in its core investment management business.
Assets under management decreased 4 per cent to £737.5bn from £766.7bn, after being dragged down by market and currency movements.
Chief executive Peter Harrison, who was paid £8.5m in 2021, said 2022 was a “stress test” for his strategy.
“The businesses that we’ve been building, through wealth management, private assets and solutions, have performed strongly,” he added.
The company has been diversifying as it looks to move towards longer-term income, with its private asset business Schroders Capital garnering record fundraising of £17.5bn, particularly in private equity and property.
