In a significant shake-up within the UK asset management industry, Schroders and Abrdn have each announced new chief executives, aiming to rejuvenate their firms’ fortunes in a challenging market environment.
Schroders has named Richard Oldfield as its new CEO, set to succeed Peter Harrison in November. Oldfield, who joined Schroders last October as finance chief, brings extensive experience from his previous role at PricewaterhouseCoopers, where he spent 30 years in senior positions. The appointment comes after a period of underwhelming financial performance for Schroders, highlighted by disappointing half-year earnings in August that missed profit forecasts and saw the company’s shares fall sharply.
“Richard Oldfield was a unanimous choice by our board,” said a Schroders spokesperson. “His deep financial expertise and understanding of our business make him ideally suited to lead us through these challenging times.”
Abrdn, on the other hand, has confirmed Jason Windsor as its new permanent CEO. Windsor, who has been serving as the interim CEO since May following the sudden departure of Stephen Bird, will now take on the role permanently. Windsor’s background includes 15 years at investment bank Morgan Stanley, and his leadership has already had a noticeable impact on Abrdn’s performance, helping the firm to outperform expectations and begin cost-cutting measures.
“The board is confident in Jason Windsor’s ability to steer Abrdn through its current challenges,” Abrdn Chairman Flint stated. “His commitment to our clients and his strategic vision are key reasons for his appointment.”
Both firms are navigating a tough landscape for asset managers, characterized by fierce competition from low-cost index-tracking products and inflationary pressures on operational costs. For Abrdn, recent years have been particularly tough, with over £10 billion in outflows annually. However, the company’s recent performance has provided a glimmer of hope.
The leadership changes come at a time when both companies are under significant pressure to improve their performance and adapt to evolving market conditions. Analysts have speculated that Abrdn’s new leadership could reignite discussions about a potential break-up of the company, which operates across traditional fund management and retail investing platforms.
For now, Schroders and Abrdn are both focusing on their new CEOs to drive future growth and address the challenges facing the asset management industry.
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