Global boutique investment specialist Schroders is continuing to build out business away from its UK home – today the firm announced the acquisition of STW Fixed Income Management in the US.
STW is a US investment grade bond manager with a value tilt and $12 billion in institutional assets from some 100 clients. According to Schroders CEO Michael Dobson, the move is increasing the firm’s US AUM to $35 billion, along with new product and service capabilities for the institutional client base.
The acquisition shows a number of key trends:
– fixed income strategies continue to rank high for clients, as institutions in the US and globally reassess asset allocation in a risk-on/risk-off market environment.
– Schroders globally has had tremendous success with various fixed and multi-asset income focused solutions. The broader product and service platforms will help solidify gains.
– as discussed in analyses in October, despite being London headquartered, Schroders in the last decade flipped its asset mix from 30% international and 70% UK-based to the opposite today (for a total of $305 billion).
– Schroders Vice chairman Massimo Tosato highlighted the US with only 10% of global AUM as a key growth region, alongside Asia.
– lastly, the purchase shows the trend towards industry consolidation and multi-convergence. As the needs of institutional and wholesale clients are converging, investment managers are increasingly restructuring platforms, client teams and sales approaches, both for local silos as well as within global expansion strategies.
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(c) Enskat Associates 2012
More details on the global M&A in the asset management industry can be found in EAQ, a quarterly asset management review featuring thought leaders globally.
Warren Enskat Group 