LONDON (Reuters) – New Schroders CEO Richard Oldfield has more than halved the size of the asset manager’s executive team as he looks to reboot performance after a string of disappointing earnings updates and big ticket client exits.
Former finance chief Oldfield takes over from long-standing boss Peter Harrison who retired on Friday, and in his first move has cut the size of the executive committee from 23 to 9, according to a company statement on Monday.
Schroders has also hired Ed Houghton from rival Legal & General as its group head of strategy and investor engagement from mid-January. Among other changes, Karine Szenberg becomes sole head of Schroders’ client group.
There are no departures directly linked to the changes, a Schroders spokesperson said.
The challenges facing Oldfield were underscored last week when an underwhelming third quarter trading update outlining deeper-than-expected client fund outflows sent shares tumbling 14% to their lowest level in over four years.
Schroders’ shares are down 30% year-to-date, trailing several rivals including a 23% fall for embattled abrdn. Schroders’ shares were broadly flat in early trading on Monday.
Mid-sized asset managers have in recent years been squeezed by relentless competition from low-cost tracker funds sold by giants like BlackRock and inflationary pressure on costs.
“My objective from here, together with the ExCo, is to proceed at pace and with clear accountability to move the business forward,” Oldfield said in Monday’s statement, adding that he had started to identify key priorities.
Mary-Anne Daly and Georg Wunderlin will continue to oversee the wealth management and Schroders Capital private markets businesses, respectively, but have been named CEOs of the two units under the changes.
Bloomberg News first reported the management changes.
(Reporting by Iain Withers’ Editing by Kirsten Donovan)
