Train Doubles Schroders Stake But Calls For US Push To Grow Business - Report

Nick Train has doubled his holding in Schroders but has called for the UK asset manager to tackle the US market to join the ranks of the global elite.

According to the FT, Train increased his stake in the asset management giant after it experienced share price falls last year. Schroders fell some 30% in 2018, although it has seen a recovery this year.

The manager is now the largest independent shareholder in Schroders after the Schroders family itself, taking into account his combined stake within the £5.8bn UK Equity fund and the Finsbury Growth and Income investment trust.

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Commenting on the holding, Train said the group had built up a strong position in Europe and Asia, but would find it hard to grow further without heavy investment in its US-based business.

He said: "Most of the trillion-dollar asset managers are in the US because of the scale of the domestic savings pool — Schroders' big disadvantage is that it ... is not well represented there.

"How are they going to get to a trillion, or even three trillion, dollars? It has probably got something to do with the US."

Train said one way to do this would be to form distribution agreements with other US managers, in a similar way as its sub-advisory relationship to several products offered by Hartford Funds.

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Some 15% of the total £407bn of Schroders AUM is managed on behalf of US-based clients, and the firm attracted $3bn of new business from the region last year.

Train has also been positive about the group's wealth management joint venture with Lloyds Banking Group, saying it could become a "source of substantial growth".

About the author

Anna is news editor at Investment Week, having joined the title in January 2013. She covers the ETF beat and is responsible for the regular podcast series.

Prior to this role, she worked at Investment Europe covering European investment markets. She began her journalism career at Euromoney Institutional Investor in 2011.

 

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