Download PDF

1. Company Snapshot

1.a. Company Description

Schroders plc is a publicly owned investment manager.The firm also provides advisory and consultancy services.It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments.


The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients.It also manages hedge for its clients.The firm invests in the public equity, fixed income, and alternative investment markets across the globe.


The firm's alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds.It conducts an in-house research to make its investments.Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

Show Full description

1.b. Last Insights on SDR

Schroders' recent performance has been driven by several positive factors. The company's full-year 2025 earnings call highlighted a 25% increase in operating profit and a record £824 billion in assets under management. A proposed all-cash acquisition by Nuveen, valued at £9.9 billion, aims to accelerate Schroders' strategic ambitions. Additionally, a new partnership with Apollo Global Management to develop innovative wealth and retirement investment solutions is expected to enhance client outcomes. These developments have contributed to improved confidence among analysts, with a slightly increased consensus analyst price target.

1.c. Company Highlights

2. Schroders' Stellar Performance and Strategic Merger with Nuveen

Schroders reported a strong financial performance in 2025, with adjusted operating income up 6% to GBP 146 million, driven by favorable markets, mix, and strong investment performance. Earnings per share (EPS) came in at 0.2462, beating estimates of 0.19, representing a 29% increase. The company's operating profit rose by 25%, with assets under management (AUM) reaching a record high of GBP 824 billion, driven by positive flows and excellent investment performance.

Publication Date: Mar -03

📋 Highlights
  • Share Price Growth:: Schroders' share price rose 12% in 2025, reflecting strong business performance.
  • Nuveen Acquisition Terms:: GBP 6.12 per share deal offers 34% premium over prior close and 17x earnings multiple.
  • Combined AUM:: Post-merger assets under management exceed $1.8 trillion, with GBP 307 billion in private markets.
  • Operating Profit Surge:: 2025 operating profit up 25%, driven by GBP 824 billion AUM and 29% EPS growth.
  • Client Performance:: 70% of client assets outperformed benchmarks across 1, 3, and 5-year horizons.

Segmental Performance

The Asset Management segment saw a 4% increase in net operating revenue, with Public Markets net new business shifting from negative GBP 21 billion to GBP 3.7 billion. Schroders Capital reported a 3% increase in net operating revenue, with gross fundraising of GBP 10.9 billion and a margin of 57 basis points. The Wealth Management segment delivered strong profitability and improving margins, despite challenging net new business conditions.

Merger with Nuveen

The highlight of the presentation was the announcement of an all-cash offer by Nuveen, with a deal valued at GBP 6.12 per share, representing a 34% premium to the previous day's closing price. The merged entity will have AUM exceeding $1.8 trillion, creating a global active asset and wealth management powerhouse. The deal is expected to accelerate Schroders' growth ambitions by at least a decade, with a combined private markets capability of GBP 307 billion.

Valuation

Schroders' current valuation metrics indicate a Price-to-Book Ratio (P/B) of 2.06 and a Dividend Yield of 3.67%. With the merger, the company's growth prospects are expected to improve, potentially justifying the current valuation. Analysts estimate next year's revenue growth at 4.4%, which, combined with the company's improved operating leverage, could lead to further EPS growth. The current P/E Ratio of 16.99 appears reasonable, considering the company's growth prospects and the industry's competitive landscape.

Operational Efficiency

Schroders achieved GBP 75 million of in-year savings and around GBP 100 million annualized of net savings target in 2025. The company is now focused on disciplined execution of its transformation program, targeting a GBP 25 million reduction in operating expenses net of investments. The use of AI and technology is expected to drive this transformation, with the company having already invested in AI, data, and DLT over the past four years.

3. NewsRoom

Card image cap

British dealmaking hits 26-year high amid wave of foreign takeovers

Mar -03

Source:

Card image cap

Form 8.3

Mar -03

Source:

Card image cap

Form 8.3

Mar -02

Source:

Card image cap

Form 8.3

Feb -27

Source:

Card image cap

Form 8.3

Feb -26

Source:

Card image cap

Brown Advisory Launches Modern, True-to-Label, Global Value Investment Capability Under Leadership of Nick Kirrage

Feb -26

Source:

Card image cap

Form 8.3

Feb -25

Source:

Card image cap

How The Nuveen Bid Is Reframing The Schroders (LSE:SDR) Investment Story

Feb -25

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.71%)

6. Segments

Asset Management

Expected Growth: 9.9%

Schroders' 9.9% growth in Asset Management is driven by strong institutional net inflows, particularly in fixed income and multi-asset solutions. Additionally, the acquisition of Sandaire Investment Office and the expansion of its wealth management business contributed to the growth. Furthermore, the company's focus on sustainable investing and ESG integration also attracted new clients and assets.

Wealth Management

Expected Growth: 8.95%

Schroders' Wealth Management segment growth of 8.95% is driven by increasing demand for discretionary portfolio management, robust net new business inflows, and strong investment performance. Additionally, the segment benefits from its diversified distribution channels, including intermediaries, institutional clients, and direct-to-consumer platforms.

7. Detailed Products

Equity

Schroders' equity products offer a range of actively managed funds that invest in global, regional and country-specific equities, providing investors with access to a diverse range of equity markets.

Fixed Income

Schroders' fixed income products offer a range of actively managed funds that invest in government bonds, corporate bonds, and other debt securities, providing investors with regular income and capital preservation.

Multi-Asset

Schroders' multi-asset products offer a range of actively managed funds that invest in a diversified portfolio of assets, including equities, bonds, and alternatives, providing investors with a balanced investment approach.

Real Estate

Schroders' real estate products offer a range of actively managed funds that invest in direct property and real estate securities, providing investors with exposure to the property market.

Alternatives

Schroders' alternatives products offer a range of actively managed funds that invest in alternative assets, including private equity, infrastructure, and commodities, providing investors with diversification and income.

Sustainable Investing

Schroders' sustainable investing products offer a range of actively managed funds that invest in companies that meet certain environmental, social, and governance (ESG) criteria, providing investors with a responsible investment approach.

Wealth Management

Schroders' wealth management services offer bespoke investment management and financial planning solutions to high net worth individuals and families.

Institutional Investment Management

Schroders' institutional investment management services offer customized investment solutions to institutional clients, including pension funds, insurance companies, and sovereign wealth funds.

8. Schroders plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Schroders plc operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Schroders plc's customers are primarily institutional investors and high net worth individuals, who have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Schroders plc has a diversified supplier base, and the company's suppliers have limited bargaining power due to the company's strong financial position and diversified operations.

Threat Of New Entrants

The asset management industry has high barriers to entry, including regulatory requirements and the need for significant capital investment. This limits the threat of new entrants to the market.

Intensity Of Rivalry

The asset management industry is highly competitive, with many established players competing for market share. Schroders plc faces intense competition from other asset managers, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.70%
Debt Cost 3.95%
Equity Weight 91.30%
Equity Cost 9.85%
WACC 9.34%
Leverage 9.53%

11. Quality Control: Schroders plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Schroders

A-Score: 6.5/10

Value: 6.3

Growth: 3.1

Quality: 6.6

Yield: 8.1

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
RIT Capital Partners

A-Score: 6.1/10

Value: 4.7

Growth: 3.8

Quality: 8.8

Yield: 3.1

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Julius Bär

A-Score: 6.1/10

Value: 5.5

Growth: 6.4

Quality: 6.4

Yield: 7.5

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
L E Lundbergföretagen

A-Score: 4.8/10

Value: 3.9

Growth: 4.1

Quality: 6.8

Yield: 1.2

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Latour

A-Score: 4.7/10

Value: 1.3

Growth: 7.4

Quality: 6.4

Yield: 3.1

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Bure Equity

A-Score: 3.6/10

Value: 5.6

Growth: 3.0

Quality: 3.9

Yield: 1.2

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.85$

Current Price

5.85$

Potential

-0.00%

Expected Cash-Flows