By Selena Li
HONG KONG (Reuters) -Schroders cut about one-sixth of staff at its fully-owned China fund manager, sources with knowledge said, the latest global asset manager to trim operations in the world’s second-largest economy as the group seeks to rein in costs under new CEO Richard Oldfield.
Schroder Investment Management China (SIMC), a 100%-owned Shanghai-based unit which the British fund firm launched in 2023, last week laid off around 10 staff from the venture’s 60-strong team, three sources told Reuters.
The cuts include most of the unit’s wholesale salespeople and some client-service staff, the sources said, with those affected being informed on April 8.
Schroders declined to comment.
Many Western money managers have hit snags launching and operating in China, although Schroders is one of the most established international players through a joint venture with local lender Bank of Communications which manages 68 billion pounds ($90 billion) of assets.
The cuts at the smaller SIMC unit reflect a shift at group level, as it draws back resources globally from underperforming areas including within China, the sources said, adding that the unit had struggled to scale up in the onshore market.
It runs around $1 billion of assets across four mutual funds, according to Reuters calculation based on the quarterly reports of these funds.
Schroders outlined plans last month to cut 150 million pounds ($199 million) from its costs over the next three years under chief executive Oldfield, in a bid to reboot flagging performance at the 221-year-old money manager.
Reuters reported in December that Schroders has also been seeking buyers for its Indonesian unit and is pursuing wider cost-cutting.
The SIMC unit faces fierce competition not only from domestic and global fund managers in China, but also from the well-established larger sister fund joint venture with Bocom, one of the sources and a fourth source with knowledge of the operations said.
All the sources declined to be named as they are not authorised to speak to media.
Many foreign firms have trimmed headcount in mainland China and pared back expansion plans. Last year, firms doing so included Fidelity International, Morgan Stanley and Legal & General.
($1 = 0.7550 pounds)
(Reporting by Selena Li in Hong Kong; additional reporting by Iain Withers in London and Engen Tham in Shanghai)
