Schroders PLC

SDR: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Schroders: Outflows Were Not Unexpected

Johann Scholtz , Svetlana Menshchikova

Nov 5, 2024

We do not believe that the sharp decline in Schroders' share price on the day of the group's third-quarter trading update is entirely justified. The outflows were not unexpected; we think they come from low-fee-margin mandates with limited impact on revenue. While traditional asset management in the UK is far from a growth industry, Schroders trades 55% below its 2021 highs while booking broadly stable earnings over this period. We do not believe fundamentals have deteriorated to such an extent to justify this sharp derating. We maintain our GBX 420 fair value estimate.

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Schroders PLC

Schroders: Outflows Were Not Unexpected

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