Schroders is an investment manager, investing on behalf of people who save money. It also serves investors from across the world. Looking at the firm, you might wonder; how does Schroders make money?
The work of deploying funds into investments is not easy. You need to ensure that investors get a return on their investments.
I witnessed this first had when I worked at an investment bank earlier in my professional career.
When dealing with looking for investment deals, raising capital and managing investments, you can make some good money.
Such activities help Schroders generate money and revenues. I know you are interested in knowing how this business makes money.
The good news is that today, you are in luck.
In this article, you will learn and understand how Schroders makes money as a firm.
This is your ultimate guide into how investment management firms like Schroders make money today.
Let us get into it now.
How Does Schroders Make Money?
In summary, Schroders makes money from two main business segments;
- Asset Management
- Wealth Management
When it comes to making money, Schroders makes most of its money in terms of fees from investment management activities performed from within both asset and wealth management segments.
Schroders generates revenues from fees which include management fees, performance fees and carried-interest fees among others.
It is worth noting too that Schroders also makes money from interest income that is earned from it’s wealth management business segment.
Schroders has a broad investment expertise across private and public markets.
The team at the investment firm leverages this knowledge and expertise to manage investments on behalf of clients.
When you look at the company closely, you will realize that they have over $990 Billion of wealth and investments under management.
Having a global footprint allows Schroders to be the best at what they do. It operates across 36 locations in Europe, Asia, Americas, Middle East and Africa.
Schroders generates or earns money from fees and interest income.
This comes from providing asset and wealth management services to customers across the globe.