|Bid||3,208.00 x 0|
|Ask||3,210.00 x 0|
|Day's Range||3,194.00 - 3,229.00|
|52 Week Range||2,289.00 - 3,293.00|
|Beta (3Y Monthly)||1.15|
|PE Ratio (TTM)||19.27|
|Earnings Date||Aug. 1, 2019|
|Forward Dividend & Yield||1.14 (3.53%)|
|1y Target Est||3,276.00|
(Bloomberg Opinion) -- European fund management companies spent 2018 watching their share prices steadily decline, battered by increased regulatory scrutiny, customers withdrawing money and the relentless squeezing of fees. They’ve rallied this year, but the industry’s biggest beast in the region is outpacing its peers by an astonishing margin.Investors in Amundi SA have enjoyed a total return of more than 60% in 2019, outpacing the Stoxx Europe 600 index by 35 percentage points. The stock has beaten the 32% gains at DWS Group GmbH and Standard Life Aberdeen Plc, the 39% return for Schroders Plc and Man Group Plc’s 19% rise.Amundi, 68 percent-owned by France’s Credit Agricole SA, recently announced record quarterly inflows of almost 43 billion euros ($48 billion) in the three months through September, breaking a streak of three consecutive quarters of client withdrawals. Its 1.6 trillion euros of assets under management — up from 952 billion euros when it listed on the stock market in November 2015 — make it Europe’s biggest money manager.The most impressive statistic, however, is the one element of Amundi’s financials over which it has most control: its costs.The company’s frugality has nudged its cost-to-income ratio lower in recent years; it fell to an industry-beating 51.1% at the end of the third quarter. By comparison, Deutsche Bank AG-controlled DWS aims to cut its ratio to 65% and doesn’t expect to achieve that until the end of 2021.What could knock Amundi off its perch? Well, DWS Chief Executive Officer Asoka Woehrmann told the Financial Times this month that he plans to challenge his rival’s dominance by finding a takeover or merger that would increase his firm’s 752 billion euros of assets. Earlier this year Switzerland’s UBS Group AG was reported to be considering strapping its fund management arm to DWS. Insurer Allianz SE was also said to be interested in the German investment firm. Any such deal would create a challenger with the scale to match Amundi.But the French fund giant’s CEO Yves Perrier is unlikely to just stand by if industry consolidation begins. Now that he’s finished absorbing Pioneer Investments, a fund management unit bought from Italy’s UniCredit SpA for 3.5 billion euros in 2017, the decks are clear. While these mega-mergers might not happen, Amundi is well placed if they do. With its shares trading at their highest in more than 18 months, Perrier has the currency to fund a deal.To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- The board of Neil Woodford’s listed trust picked a unit of Schroders Plc to take over the portfolio that bears his name, capping off the collapse of his business empire.The move comes nine days after the fund manager announced the liquidation of his firm, ending a fall from grace that counts as one of the most dramatic in London’s financial history. The Woodford Patient Capital Trust Plc will be renamed Schroder U.K. Public Private Trust Plc, according to a statement on Thursday.The trust’s shares surged as much as 32% in London trading on the news. Still, that leaves the trust down about 50% since Woodford stunned the financial world freezing his flagship fund in early June, sparking a chain reaction that ultimately sent the fund manager’s career spiraling.“There really was no choice for the board, and it’s a nice mandate for Schroders,” said Jacob Schmidt, chief executive officer of Schmidt Research Partners, a global investment firm.The board of the trust, which Woodford launched to much fanfare in 2015, had been looking for alternative managers since July. Between July 3 and July 8, Woodford sold 1.75 million shares in the trust — about 60% of his holding — to “meet personal financial obligations, including a tax liability.” But he only notified the board about this share sale two weeks later on July 27.Read more: U.K. Platform AJ Bell Sees Flows Slow After Woodford’s CollapseWoodford stepped down as portfolio manager of the trust on Oct. 15, the same day he was ousted as manager of his flagship fund and announced the shuttering of his investment firm. The shares were trading at a 50% discount to net asset value on Oct. 22.“He sold shares and didn’t show commitment,” Schmidt said. “If you’re responsible, you’re the captain and you’re the last one to leave the ship. Woodford was the captain and should have stayed on board and if he drowns, he drowns.”Schroder Investment Management Ltd. won’t charge a performance fee for managing the trust until Dec. 31, 2022, when it will be eligible to collect 15% of returns above a net asset value of 77 pence per share. The trust’s latest NAV was 63.23 pence on Oct. 22. After that, the firm will charge a performance fee of 15% on returns of 10% or higher, according to the statement.No management fee will be paid for three months after Schroders takes over, according to the statement. After that, it will collect an annual fee of 1% on market capitalization up to 600 million pounds ($774 million), and 0.8% thereafter.To contact the reporter on this story: Suzy Waite in London at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Patrick HenryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Woodford Patient Capital Trust (WPCT) named asset manager Schroders to manage its portfolio on Thursday after last week's abrupt exit of its founder Neil Woodford. Woodford, one of Britain's most high-profile fund managers, resigned as he shut his business after administrators closed his flagship equity income fund. It will be renamed Schroder UK Public Private Trust when Schroders takes over the management of the assets, expected by the end of the year, and the new management team will stick to WPCT's existing strategy of investing largely in unlisted firms.
British asset manager Schroders said pretax profits fell 14% in the first half, hit by weak markets at the start of the year and outflows of client cash. Net outflows over the period were 1.2 billion pounds, it said in a statement on Thursday. Weaker investor sentiment has been a feature of results from most of Schroders' peers, with Jupiter Fund Management , Amundi and Man Group among those to report outflows in recent days.
Zurich-based BlueOrchard, founded in 2001, puts money into projects that pay returns based on hitting non-financial targets, often linked to social development or the environment. The deal gives the British company access to BlueOrchard's about $3.5 billion (£2.8 billion) assets under management as of May 30. "Schroders has a strong belief in the value that investment can create in society, particularly within emerging and frontier markets.
(Bloomberg Opinion) -- Who knew there was investor appetite for subordinated Greek bank debt?Because of the relentless hunt for returns in yield-starved Europe, Piraeus Bank SA, one of Greece’s big four lenders, has been able to brave the European capital markets for the first time since the financial crisis.Piraeus isn’t opting for senior bonds, and is instead plumping for Tier 2 subordinated debt (which sits midway in the capital structure between top-rated debt and equity-like capital). This means the notes would be fully subject to investor bail-in rules, where bondholders take a financial hit should the bank fail.While the bank has been bolstering capital by offloading bad loans and selling assets, this issue will help it meet its commitments to the European Central Bank. Last year, the ECB asked the company to raise much as 500 million euros ($560 million) as part of its strategic recovery plan. It’s notable, nonetheless, that the lender has found plenty of takers despite all the well-known risks around the Greek banking system.Piraeus has raised 400 million euros from the 10-year subordinated security, with an issuer call option after five years. The very high 9.75% coupon was clearly attractive to buyers, but it carries danger signs too. Paying that much interest to bondholders will be a heavy burden for the bank’s business to support.Indeed, this might be a deal too far for wiser investment heads (regardless of all the hedge funds piling in here). Just because government yields are plunging doesn’t mean credit risk is improving; it usually means the opposite. In fairness, this issue is for bank capital specialists only but there’s always a deal that corrects the market’s over-enthusiasm for the diciest assets.The offer would have been unthinkable a year ago, and comes courtesy of a sustained decline in Greek sovereign yields, with five-year yields falling below their Italian equivalents, and a sixfold rally in Piraeus Bank's share price since February. It helps that imminent national elections are expected to deliver victory to the pro-business New Democracy Party. For Piraeus, it makes sense to strike now and the books were more than twice covered.Still, a big leap of faith is required to believe that that this ultra-high risk, CCC-rated junk bond will be repaid at that call date in five years time. Investors won’t want a repeat of what happened when Italy’s Banca Monte dei Paschi di Siena SpA issued a similar bond in January 2018. That now trades at close to half its initial value. Piraeus’s non-performing loans make up more than half of its total lending, despite its offloading of 500 million euros of them to private equity buyers this month. Even after the share price rally, the stock only trades at a price-to-book ratio of less than 0.2. The path to easing the bad debt burden will be arduous.As part of Piraeus’s strategic plan, the bank sees non-performing loans dropping to about 9% of the total by 2023, which requires the elimination of 21 billion euros of exposure. It has signed an agreement with Intrum AB, a Swedish debt collection specialist, to help manage its bad debt pile. However, the speed at which Greece’s lenders will be able to clean up their loan books is uncertain. The government and the Greek central bank have two separate, not entirely complementary, initiatives to help banks do this but they’re still obtaining European Union approvals.Piraeus’s plan to improve its fee income by 33% by 2023 looks ambitious too. As the biggest private lender to SMEs in Greece, its growth is tied ultimately to the country’s nascent economic recovery. A shareholder group that includes the EU-backed Hellenic Financial Stability Fund – as well as John Paulson, Vanguard, Blackrock Inc. and Schroders Plc – offers some reassurance. While success would be another important milestone in Greece’s long road to recovery, you’ll have needed nerves of steel to jump on this one.To contact the authors of this story: Marcus Ashworth at email@example.comElisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Jupiter Fund Management has appointed Wayne Mepham as its new chief financial officer, poaching the executive from rival money manager Schroders in the latest major change to its leadership team. Mepham is currently global head of finance at Schroders, where he has worked for past nine years, Jupiter said in a statement on Tuesday.
Advisers Glass Lewis say Schroders shareholders should vote against the investment firm’s pay report. Photograph: Toby Melville/Reuters The fund manager Schroders is at risk of a shareholder backlash after an influential advisory firm issued a warning about “excessive” bonuses and the appointment of a Schroder family member to its board. Glass Lewis has recommended that at next month’s annual meeting investors vote against the company’s pay report, as well as the election of Leonie Schroder, claiming she lacks the experience needed to challenge the firm’s executive team. It has also urged investors to block the re-election as chairman of Michael Dobson, who Glass Lewis says is responsible for the board’s make-up and “should be held accountable for this failure”. The advisory group said it had “severe reservations” about supporting the pay report due to the size of the bonuses granted to chief executive Peter Harrison. Harrison, who has been at the helm since 2016, was given a £6m bonus last year on a £500,000 salary. “We remain concerned that the annual bonus plan has consistently led to unnecessarily high payouts,” Glass Lewis said. “We cannot recommend that shareholders support this proposal.” A spokeswoman for Schroders said the company has a “clear and thorough process” for determining pay “which we have followed rigorously and which has served the firm and all its stakeholders well over many years”. The Glass Lewis report also takes aim at Leonie Schroder, whose family holds a 35% controlling stake in the business. She was appointed in March following the death of her father, Bruno. Glass Lewis said controlling shareholders should be “entitled” to representation, but stressed that directors need to have the experience to guide and challenge the executive team. “We do not believe a sufficiently robust rationale has been presented for the election of nominee [Leonie] Schroder, and question whether, in representing her family interests, she has sufficient core industry or sector experience to effectively challenge management,” the advisory firm explained. Schroders said the decision to appoint Leonie Schroder followed consultations with key members of the family trust and main shareholder group following Bruno’s death in February. “After careful consideration, the nominations committee decided to recommend to the board her appointment as a director,” a spokeswoman said. “As part of the nominations process, the company also engaged with a number of institutional shareholders – all indicated support for the proposal to appoint Leonie Schroder, given the overall mix of skills on the board and the majority of independent non-executive directors,” she added. The Schroders AGM will be held in London on 2 May.
Schroders Personal Wealth, a planned joint venture between asset manager Schroders and Lloyds Banking Group, announced its management team on Tuesday. Schroders and Lloyds said they were teaming up on the project in October last year, and at the time said it would be led by Schroders' co-head of intermediary, James Rainbow.
About a year ago, Lloyds announced it was pulling 109 billion pounds ($145 billion) of assets that SLA managed on behalf of Lloyds’s Scottish Widows unit, saying the 2017 merger of Standard Life and Aberdeen created a “material” competitor to the lender’s own insurance business. The balance of the funds is pledged to BlackRock Inc.
Britain's FTSE 100 fell on Thursday as several blue-chip stocks traded ex-dividend and financial stocks were hit after the European Central Bank delayed a rate hike at least until next year and offered a fresh round of cheap loans to banks. NMC Health and insurers Aviva and Admiral all slipped after earnings reports.
Like its peers, Schroders suffered in the fourth quarter as market volatility prompted clients to withdraw funds, as the firm detailed in its full-year results on Thursday. At a time when fees for managing other people’s money are on a downward spiral everywhere you look, that’s a pretty good performance.
Schroders posted a 15 percent fall in full-year pretax profit after restructuring costs and a fall in assets under management and fee income, sending shares in the British asset manager lower on Thursday. Pretax profit for the year ended December 31 fell to 649.9 million pounds from 760.2 million, said Schroders, which traces its roots back more than 200 years and is still majority owned by the Schroder family. Assets under management fell 6 percent to 421.4 billion pounds hit by weaker markets and net outflows of 9.5 billion pounds.
(Reuters) - Schroders said https://www.schroders.com/en/media-relations/newsroom/all_news_releases/schroders-appoints-new-uk-intermediary-head-of-operations-and-governance on Wednesday it had named Anna O'Donoghue as the head of operations and governance for its UK intermediary business.
British wealth and asset manager Schroders on Thursday announced the death of Bruno Schroder, a non-executive director and the great-great grandson of the company's co-founder John Henry Schroder. Schroder died after a short illness at the age of 86 on Wednesday. "Bruno made an enormous contribution to Schroders over more than 50 years," Schroders chairman Michael Dobson said.
Britain's FTSE 100 was lower in a broad sell-off across Asian and European markets on Tuesday as renewed worries about global economic slowdown hurt heavyweight energy, mining and banking stocks while easyJet surged following its results. The exporter-heavy FTSE 100 was down 0.6 percent at 1008 GMT. The FTSE 250 was up 0.2 percent.