Alan Brown, former global CIO at State Street Global Advisors, was named head of investment at Schroders PLC, effective July 5. He replaces Richard Horlick, who is leaving the company later this year to pursue other opportunities, said Richard King, Schroders' spokesman. He would not be more specific. Mr. Horlick, who could not be reached for comment, will step down from Schroders' board of directors May 25 but remain with the firm for six months.
Mr. Brown left SSgA in February amid reports of a succession dispute at the firm. SSgA eliminated the global CIO role, said Arlene Roberts, spokeswoman; his duties were assigned to regional CIOs.
Separately, Schroders today reported a rise in asset management revenue for the first quarter, to £146.3 million ($268.9 million), up 26.1% from the first quarter 2004. Assets under management rose 8.4% to £108.9 billion in the first quarter from £100.4 billion in the first quarter 2004.
It also reported retail inflows of £1.6 billion in the first quarter but a net institutional outflow of £500 million.
Huw van Steenis, banking analyst at Morgan Stanley, said the firm had seen a significant improvement in its institutional business and appeared to be winning more specialist mandates than losing balanced portfolios from U.K. pension clients for the first time since 1999. This past quarter's losses were mainly from U.S. and European clients, he added. The firm's strategy to target high-margin and retail business was paying off as was clear from the rise in revenue, he said.
Morgan Stanley has a buy recommendation on Schroders, Mr. van Steenis said.
Schroders also announced it contributed £30.3 million to its £389.2 million defined benefit plan, making it fully funded, according to spokeswoman Jo Godfrey.
