Schroders PLC

Adjusted operating income was up 6% year on year, driven by markets, mix and strong investment performance, while adjusted operating profit was up 25% and adjusted operating EPS was up 29%. AUM reached a record GBP 824 billion, up 6%; gross inflows were GBP 142 billion, up 9%; and net inflows were GBP 11.2 billion. The company said it delivered GBP 75 million of in-year savings, gross transformational savings for the year were GBP 94 million, and adjusted operating expenses were flat year on year. The cost-to-income ratio ended at 71%, with management targeting further reduction toward 70% in 2026 and below 70% for full-year 2027. Nuveen’s offer is up to GBP 6.12 per share, comprised of GBP 5.90 in cash plus up to GBP 0.22 of permitted dividends, and the deal is expected to complete in the fourth quarter of this year.

Richard Oldfield framed 2025 as proof that the first year of the three-year transformation is working, saying the company delivered against plan and rebuilt momentum in assets, flows and earnings. He emphasized that the Nuveen deal is attractive because it accelerates Schroders’ strategy, strengthens the balance sheet and creates certainty and cash value for shareholders. His tone was upbeat and confident, but he also repeatedly stressed that the business is not taking its foot off the gas and still has work to do in Schroders Capital and Wealth Management.

Meagen Burnett said adjusted operating income rose 6%, supported by markets, mix and investment performance, while FX hurt net operating income by GBP 28 million. She highlighted that annualized net new revenue improved from minus GBP 46 million in 2024 to positive GBP 15 million in 2025, and that asset management net operating revenue increased 4%. On costs, she said gross transformational savings were GBP 94 million, reinvestment was GBP 19 million, inflation/FX/AUM items added GBP 54 million, and unanticipated building repairs added GBP 20 million; the result was a 71% cost-to-income ratio. She also said capital surplus ended at GBP 865 million after allowing for an estimated GBP 250 million Basel 3.1 impact, and reiterated the plan to reach about 70% in 2026 and below 70% in 2027.

Analysts focused on whether the strong fourth-quarter flow momentum had continued into 2026, Schroders Capital deployment and dry powder conversion, AI disruption in wealth, the Apollo partnership, and the rationale for accepting Nuveen’s offer. Management said the positive Q4 momentum carried into January, but cautioned that six weeks is not a forecast; on Schroders Capital, Oldfield said the firm needs to put more people into private equity and use AI to process opportunities faster. On AI, management said it is being used across client service, operations, research and portfolio work, and Burnett said a large part of the remaining transformation spend is tied to technology and data platforms rather than AI alone. In response to questions about valuation and process, Oldfield said Nuveen was not given access to insider financial information, that multiple conversations are typical, and that the board judged the offer best for shareholders after reviewing five-year plans.