Opinion Piece Review: A critical analysis and personal take on a specific topic
Article Title: Schroders' Asset Management Evolves: Will It Turn Around its Business or Face a Split?
Published on: Sunday, June 15, 2025
The future for Schroders may lean towards wealth management if their asset management business doesn't pick up steam.
Byline: David Wighton
Schroders has kept us talking with its ever-active and expanding asset management biz, but with no hint of a break-up as of now. Let's dive into the intricate dance that Schroders is performing in the asset management arena.
The firm's broad asset management operation continues to thrive through various subsidiaries such as Schroder Investment Management (Europe), Schroder Investment Management North America, Schroder Fund Advisors, and Schroders Capital. These entities jointly offer asset management solutions worldwide across both public and private markets.
Now, Schroders is not just standing still. It's kicking things up a notch in the real estate and multi-asset portfolios departments. Reports suggest ongoing market analysis and investment strategies in these areas (sources: [2][3]).
Embracing the power of technology to amplify active management, Schroders has rolled out some impressive AI tools. "Genie," launched in April 2023, and its more recent offspring, ContextAI, have caught everyone's attention. These advanced language models analyze massive datasets, particularly offering sustainability insights and boosting productivity by around 30% (source: [5]).
But what about the break-up chatter? Is Schroders gearing up to split its asset management business? As of now, there's no credible evidence or announcements suggesting that's the case. Instead, the focus appears to be on growing and boosting the asset management business.
Take the wind-down and tender offer of Schroder Capital Global Innovation trust. That event seems to be about liquidating specific investments and returning capital to shareholders rather than a sign of a broader divestment (source: [4]).
While Schroders has quite the wealth management business going on, there's no hint of a strategic shift or major corporate restructuring to prioritize wealth management over asset management as of mid-2025. Instead, the company seems to be shaking things up in both markets, using technology and market insights to bolster the overall performance of active management.
So, is Schroders on the brink of a break-up, or is it just getting started? The cards are still up in the air. But one thing's for certain: Schroders is not sitting idly by. The firm continues to evolve and innovate in the asset management landscape, with a strong commitment to both listed assets and private markets.
References:
[1] [Source]
[2] [Source]
[3] [Source]
[4] [Source]
[5] [Source]
Despite Schroders' continuous expansion in its asset management business, the company may shift its focus towards wealth management if the asset management sector does not improve. Although there are no credible reports of a split as of mid-2025, Schroders continues to innovate and grow its business in both public and private markets, utilizing advanced AI tools to boost productivity and sustainability insights.
