Schroders puts brakes on local equities
SchroderInvestment Management Australiahas announced it will target only the retail and master trust markets with its Australian equity funds after cutting off institutional mandates.
The move by the specialist wholesale asset manager came as its total Australian equity funds under management surpassed $5 billion, approaching a self-imposed upper limit of $6 billion.
The repositioning towards the retail market comes from Schroders’ desire to maintain investment flexibility and protect the interests of its existing client base, after its funds under management increased by $2 billion over the past year.
“As we get closer to the self-imposed capacity limit it is appropriate that we slow down the level of institutional fund inflows,” Schroders chief investment officer Kenneth Lambden says.
“We think it is important to ensure that we can continue to deliver the product investors have sought,” he says.
Once the limit is reached only cashflows from existing clients, master trusts and retail clients will be accepted.
“We don’t want to make the mistake of other successful Australian equity managers who suffer a downturn in performance as they try to digest an increasing level of funds under management,” Schroders head of sales and marketing Greg Cooper says.
While the $6 billion limit will be reviewed, it is likely to remain in place for some time.
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
