Schroders upgrades revenue forecast after flurry of recent enterprise
Shares in Schroders rose sharply on Thursday after the group revealed an influx of new business led to higher management fees in the past year.
The business said it expects annual operating profit of £745million, overshooting forecasts of £603million in the previous year.
In a trading update, the wealth manager said assets under management, including joint ventures, rose to £825billion after an inflow of around £11billion in new business.
The firm is eyeing £2.6billion in net income for the year, up from £2.4billion the previous year.
Schroders shares rose 7.14 per cent or 29.80p to 447.20p on Thursday, having jumped over 40 per cent in the past year.
On the up: Shares in Schroders rose sharply on Thursday after the group revealed an influx of new business
The wealth management arm recorded around £3.4billion of inflows, equivalent to a 2.7 per cent net new business rate, while public markets generated roughly £3.9billion of inflows.
Its private investment arm Schroders Capital delivered £4billion, plus a further £500million from Future Growth Capital.
Schroders said it would ‘remain committed’ to its plan for £150million annualised net savings by the end of 2027.
The firm’s cost-income ratio, showing how much is spent on costs for each pound generated, edged down to 71 per cent, marking a boost as it fell from 75 per cent the previous year.
On Thursday, Rathbones reported a modest rise in funds under management and administration in the final quarter of last year, as the wealth manager looks to turn its focus from integration to organic growth in 2026.
In a fourth-quarter update, Rathbones said total funds under management and administration rose by 2.3 per cent in the past year to £115.6billion at 31 December, up from £109.2bn a year earlier and £113billion at the end of September.
Growth was driven largely by the firm’s wealth management arm, where FUMA jumped to £106.2billion, against £99.3billion at the end of 2024.
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
