Schroders Has a Good Strategy to Deal With Margin Pressure; Fair Value Estimate up 6%

Margin pressure sums up the challenge and investment case for Schroders. Like most of its U.K. peers, Schroders has seen a material decline in its management fee margin. To halt this decline, Schroders has laid out a strategy that hits all the right notes. It aims to focus its resources on higher-margin asset classes, increasing ownership of client relationships, and investing heavily in technology to compete in a digital world. Schroders is executing well on this strategy and early signs are that the decline in margins is at least slowing down. Schroders has made some judicious acquisitions that support its strategy