From Morningstar: 2024-09-02 05:15:00

Schroders is still searching for a CEO successor after Peter Harrison announced his departure in April. The company faces challenges due to the shift towards cheaper passive investing and decreased capital from UK pensions moving away from domestic stocks. Despite weaker first-half results, Schroders continues to pay a quarterly dividend of over 5.37p per share.

Investors are divided on Schroders’ future prospects. While some see it as a cash-generative business with net inflows above industry average, others worry about declining fee margins and competition with global giants. Schroders currently trades below Morningstar’s Fair Value Estimate at £3.47.

The London-based asset manager reported fee margins and client flows weaker than expected, leading to Morningstar revising their Fair Value Estimate down to £4.20.It appears that Schroders’ attempt to counter the decline in traditional asset management by expanding into private markets and wealth management is facing headwinds.



Read more at Morningstar: Dividend Watch: Schroders is Undervalued, But Still…