Schroders Share Price (SDR)

Schroders: Morgan Stanley takes target price from 2250p to 2290p and reiterates an overweight rating.

Schroders: Morgan Stanley upgrades to overweight.

Schroder US Holdings, a subsidiary of FTSE 100 global asset company Schroders, announced Monday it would acquire 100 per cent of the share capital of STW Fixed Income Management. STW, a US investment-grade fixed income manager, looks after about $11.9bn on behalf of more than 100 institutional clients, as at September 30th, 2012. The transaction is due for completion in the first quarter of 2013. Michael Dobson, Chief Executive of Schroders, said STW's long-term investment strategies and strong performance track record would be a valuable addition to the company. "This acquisition increases our assets under management in US fixed income by 50% to $35bn, broadens our product and service platform in fixed income and extends our institutional client base in the US," he said in a statement. William H. Williams, founder, Chief Executive Officer and Chief Information Officer of STW, said the deal was a perfect fit. "We have been determined in our efforts to partner with a firm that values clients the same way as STW has for over three decades," he said. "I believe that this transaction is the best decision for STW clients and employees. I look forward to the continued success of the combined business in the years ahead."

Schroders: Bank of America upgrades from neutral to buy.

The Chief Financial Officer (CFO) of asset manager Schroders, Kevin Parry, has announced that he plans to step down from the board from May 5th next year. The group announced that it will appoint Richard Keers, who is currently a partner at PricewaterhouseCoopers (PwC), in the role at that time. Keers was PwC's Global Relationship Partner for Schroders from 2006 to 2010, having joined in 1988, and has been a partner in their financial services practice since 1997. Schroders intends for Keers to join the board and the Group Management Committee, giving him responsibility for Finance, Risk, Human Resources, Internal Audit and Corporate Communications. Michael Dobson, Chief Executive, said: "I would like to thank Kevin for his significant contribution to Schroders over the last ten years, as a non-executive Director and Chairman of the Audit Committee and, since 2009, as Chief Financial Officer. I very much look forward to working with Richard. His previous experience positions him well for his new role as CFO."

Tempus in The Times writes that Schroders’ performance since the financial crisis started gives an idea what can be achieved if you stick to your knitting and abjure significant acquisitions, unlike other fund managers such as Aberdeen Asset Management. Over the past 14 quarters Schroders has gained an inflow of £53bn in new business, with only one of those quarters showing a negative performance. In the three months to end-September, net inflows were £2.6bn. Of this, £1.9bn came from institutions and £800m from retail clients, while private banking had a £100m outflow. S chroders shares, despite the strong rise this summer, sell on a typical sector multiple of about 11 times this year’s earnings, stripping out the spare cash. Further outperformance looks unlikely in the short term, but they remain one of the strongest holds in the sector.