UK – Recognition from investment consultants and improved investment performance are key for Schroder Investment Management, says Fitch Rating Services.
"Further strengthening of investment performance and achieving enhanced recognition from consultants remain key priorities,” Fitch said in a recent report on the asset manager.
“We work closely with investment consultants and will always ensure that they know how the business is developing,” said a Schroders spokesman.
Fitch also raised the issue of staff turnover at the firm, saying: “Turnover in investment teams remains higher than expected and, though improving, the firm's profitability is only average."
“We continue to work on our investment performance,” said the Schroders spokesman. “Currently 77% of our funds under management are above benchmark over three years.”
“But there is plenty more to do. We continue to be successful in attracting talented fund managers to Schroders and expect to see this trend continuing.”
Earlier this month the 200-year-old firm said it lost four billion pounds (5.9 billion euros) in balanced mandates in the first half as UK clients continued to restructure their portfolios – but added the revenue impact was “limited”.
First-half asset management profit after exceptional items more than doubled to 54.7 million pounds – while the group’s total pre-tax profit rose to 60.8 million pounds.
Fitch affirmed its AM2+ rating on the firm. “The AM2+ rating reflects Schroders’ strong track record of managing institutional mandates, its independence and focus on asset management, and the transparency of its investment processes, which are supported by an extensive network of analysts,” the report stated.