Schroders Plc (SDR), the U.K.’s biggest fund manager by assets, said its chairman and chief investment officer will step down after performance fees fell by almost half and net inflows dropped 88 percent.
Michael Miles, chairman of Schroders for nine years, will leave the company after its annual general meeting on May 3 and be replaced by Andrew Beeson, a senior independent director, the London-based firm said in a statement today. Alan Brown, chief investment officer since 2005, will leave on the same date.
“2011 was a particularly challenging year for investors,” Schroders said in the statement. “Net new business, whilst much reduced from the exceptionally strong result of the previous year, remained positive.”
Brown, 58, who was formerly CIO of State Street Global Advisors Ltd., will not be replaced, with the company’s four divisional heads for equities, fixed income, multiassets and commodities reporting directly to Chief Executive Officer Michael Dobson. Brown will continue at the firm as a special adviser and work with some of its biggest clients, the fund manager said in a separate statement.
Schroders’s net inflows dropped to 3.2 billion pounds ($5.1 billion), compared with 27.1 billion pounds in 2010, the company said in a statement today. That caused assets under management to decline 4.7 percent to 187.3 billion pounds. Performance fees fell by almost half to 36.6 million pounds compared with 2010, Schroders said.
The company’s net income was 315.8 million pounds for 2011, up 1.5 percent, and ahead of the 292.5 million-pound estimate of six analysts surveyed by Bloomberg.
The stock dropped 2.1 percent to 1,529 pence at 3:05 a.m. in London trading, valuing the firm at about 4.1 billion pounds. The FTSE 100 Index of leading U.K. firms was up 0.9 percent to 5,845.84 points.
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