Schroders' new CEO shakes up top team after bruising year
LONDON, Nov 11 (Reuters) -New Schroders SDR.L CEO Richard Oldfield has more than halved the size of the asset manager's executive team as he looks to reboot performance after a string of disappointing earnings updates and big ticket client exits.
Former finance chief Oldfield takes over from long-standing boss Peter Harrison who retired on Friday, and in his first move has cut the size of the executive committee from 23 to 9, according to a company statement on Monday.
Schroders has also hired Ed Houghton from rival Legal & General LGEN.L as its group head of strategy and investor engagement from mid-January. Among other changes, Karine Szenberg becomes sole head of Schroders' client group.
There are no departures directly linked to the changes, a Schroders spokesperson said.
The challenges facing Oldfield were underscored last week when an underwhelming third quarter trading update outlining deeper-than-expected client fund outflows sent shares tumbling 14% to their lowest level in over four years.
Schroders' shares are down 30% year-to-date, trailing several rivals including a 23% fall for embattled abrdn ABDN.L. Schroders' shares were broadly flat in early trading on Monday.
Mid-sized asset managers have in recent years been squeezed by relentless competition from low-cost tracker funds sold by giants like BlackRock and inflationary pressure on costs.
"My objective from here, together with the ExCo, is to proceed at pace and with clear accountability to move the business forward," Oldfield said in Monday's statement, adding that he had started to identify key priorities.
Mary-Anne Daly and Georg Wunderlin will continue to oversee the wealth management and Schroders Capital private markets businesses, respectively, but have been named CEOs of the two units under the changes.
Bloomberg News first reported the management changes.
Reporting by Iain Withers' Editing by Kirsten Donovan
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
