Twelve months after Chief Executive Officer Michael Dobson initiated an aggressive cost-cutting campaign, Schroders PLC's money management unit, Schroders Investment Management, has yet to reverse the decline in its key institutional business.
Third-quarter earnings figures released last month by London-listed Schroders showed outflow from its institutional business hit £1.8 billion ($2.6 billion) in the three months ended Sept. 30. Combined with first half losses, that means Schroders' institutional asset management business has lost £4.5 billion, or about 7%, in the first nine months of the year.
While the institutional losses were offset by a big rise in retail inflows, both market analysts and investment consultants are worried executives in charge of Schroders' institutional business can't pull the firm out of the nosedive it has entered.
It's especially important since institutional makes up more than 76% of Schroders' total assets.