Schroders in latest phase of international expansion

The fund-management group, Schroders, is preparing to move into India in the latest phase of its international expansion plans. It is believed the company is in discussions with a number of potential partners for the venture.

Schroders is well known in the Asia Pacific region, where it manages £29 billion in assets, approximately 25% of the company’s £137 billion funds under management. Furthermore, it has a presence in Australia, China, Hong Kong, Indonesia, Korea, Singapore and Taiwan.

The move into India comes six months after Schroders opened an office in Dubai. The company plans to double the $5 billion (£2.4 billion) it manages in the Middle East over the next 3 years.

However, there are strict regulations in India for foreign firms that want to launch investment funds in the country. Start-up firms capitalised under a certain level, such as the Schroders venture, must link up with a local partner, which will hold a 25% stake in the business.

SV Prasad has been chosen by Schroders as managing director of its Indian operation. Prasad is a former chief executive of Birla Sun Life Asset Management and president of the Indian asset management business of Zurich, the Swiss insurer.

Schroders’ Indian operation will provide a series of funds aimed at domestic investors, offshore funds and discretionary fund-management accounts.

Michael Dobson, Schroder’s chief executive, has implied that the group will look at bolt-on deals in America. The group confessed that its presence here needs to be strengthened.

In 2006, larger asset management fees and a fourfold increase in profits at its private banking business helped Schroders make a profit of £290 million.

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