Schroders stock holds firm as assets and profit recover on stronger markets

Schroders PLC (ISIN GB0007958233) reported higher profit and assets under management in its latest annual figures, offering investors in Schroders stock an updated view of how the active asset manager is navigating a recovering market environment. In its results for 2023, Schroders disclosed group profit before tax of around GBP 644.9 million compared with about GBP 586.9 million in 2022, supported by higher average assets and improved investment performance.

Profit before tax rises in 2023

According to the companys published 2023 annual results, Schroders generated profit before tax of approximately GBP 644.9 million for 2023, up from about GBP 586.9 million a year earlier, an increase of roughly 9.9% year on year. Management attributed the improvement to higher revenues from management fees as markets recovered and to a contribution from performance fees, while also noting ongoing investment in the business.

Group net operating revenue for 2023 came in at around GBP 2.25 billion, compared with roughly GBP 2.18 billion in 2022, showing modest top line growth of a little over 3%. Within this, the asset management and wealth management divisions remained the primary drivers, with fee income linked to the level of assets under management and administration across mutual funds, institutional mandates, and wealth solutions.

Assets under management exceed GBP 750 billion

Schroders also reported that its total assets under management and administration reached roughly GBP 750 billion at the end of 2023, up from about GBP 737 billion at the end of 2022. The increase of approximately GBP 13 billion reflected positive investment returns in rising markets, partly offset by foreign exchange movements and selective outflows in certain strategies.

Within that headline figure, Schroders pointed to continued growth in wealth management and private assets as strategic priorities. The firm highlighted that private assets and alternatives, which include real estate, private equity, infrastructure, and private credit, accounted for a growing share of group assets and contributed a higher proportion of fee revenue compared with more traditional liquid strategies.

Schroders Wealth Management platform

One representative business line for Schroders is its wealth management platform, which provides discretionary and advisory portfolio services to private clients, charities, and family offices. In the latest annual period, the wealth management division reported higher net operating revenue alongside a rise in assets under management, reflecting both market gains and net new business from clients seeking professional investment solutions.

Schroders stock and London listing

Schroders stock is listed on the London Stock Exchange, where it trades in pence and forms part of major UK equity indices that track large and mid capitalization financial services companies. The companys equity market valuation reflects investors expectations for future fee income, margins, and capital returns in what remains a competitive active asset management landscape.