Schroders shares slide as fee pressure leads to profit miss

British fund manager Schroders (SDR.L), opens new tab missed profit forecasts and flagged pressure on its margins in half-year results on Thursday, sending its shares sharply lower despite reporting record assets.

Schroders said clients have favoured lower-margin services, squeezing revenue and leading to an 8% fall in first-half profit to 315 million pounds ($403 million).

Analysts at JPMorgan said investors would likely react negatively to the company’s “margin erosion”, but welcomed a slight dip in costs.

Source: REUTER