Schroders Profits Surge and Optimism Grows Amid Turnaround Strategy

Schroders, the prominent fund management group, has announced that its adjusted operating profits for 2025 are expected to exceed City forecasts by 15 per cent, reaching at least £745 million. This impressive performance comes as the firm has secured £11 billion in net new business over the past year, a significant indicator that its turnaround plan, initiated under the leadership of chief executive Richard Oldfield, is proving effective.

Oldfield’s strategy has involved a rigorous cost-cutting plan and a renewed focus on wealth management and private markets. This shift appears to be resonating well with investors, as evidenced by a notable increase in the company’s share price, which rose by 41 pence to close at 458.5 pence, marking the highest level in over two years.

The anticipated rise in operating profits represents a 24 per cent increase from the previous year’s figure of £603.1 million. Analysts had previously predicted a consensus of approximately £656 million, further underscoring the strength of Schroders’ performance.

Industry experts suggest that this unexpected announcement may also bode well for other asset managers, such as Aberdeen and M&G, which are currently undergoing their own recovery plans. Schroders has been facing challenges due to the growing preference for passive investment options over active funds, as well as a general retreat from London-listed equities. Nevertheless, the company remains a major participant in public markets while simultaneously expanding its footprint in private capital through its Schroders Capital division.

All divisions within the firm reported progress over the year. Public markets gained £3.9 billion in net new business; Schroders Capital secured £4 billion; and wealth management attracted £3.4 billion. The firm has also recently clinched significant client mandates, including a sustainable investment directive worth £5.2 billion from St James’s Place, alongside a €3.9 billion contract from the Dutch pensions group PGGM.