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

We increase our fair value estimate for narrow-moat Schroders to GBX 500 per share from GBX 470 per share to reflect resilience in assets under management, or AUM, inflows compared with peers in challenging market conditions. Schroders focuses its strategy on alternative asset management products that allow it to slow down shrinking margins and keep them relatively high although gradually declining. We believe that restructuring charges incurred in 2023 will also allow for further cost discipline that is crucial for Schroders' profitability in a shrinking margins environment.