2138001YYBULX5SZ2H242025-01-012025-12-312138001YYBULX5SZ2H242024-01-012024-12-31iso4217:GBPiso4217:GBPxbrli:shares2138001YYBULX5SZ2H242025-12-312138001YYBULX5SZ2H242024-12-312138001YYBULX5SZ2H242024-12-31ifrs-full:IssuedCapitalMember2138001YYBULX5SZ2H242024-12-31ifrs-full:SharePremiumMember2138001YYBULX5SZ2H242024-12-31ifrs-full:TreasurySharesMember2138001YYBULX5SZ2H242024-12-31schrodersplc:NetExchangeDifferencesReserveMember2138001YYBULX5SZ2H242024-12-31schrodersplc:AssociatesAndJointVenturesReserveMember2138001YYBULX5SZ2H242024-12-31ifrs-full:RetainedEarningsMember2138001YYBULX5SZ2H242024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138001YYBULX5SZ2H242024-12-31ifrs-full:NoncontrollingInterestsMember2138001YYBULX5SZ2H242025-01-012025-12-31ifrs-full:IssuedCapitalMember2138001YYBULX5SZ2H242025-01-012025-12-31ifrs-full:SharePremiumMember2138001YYBULX5SZ2H242025-01-012025-12-31ifrs-full:TreasurySharesMember2138001YYBULX5SZ2H242025-01-012025-12-31schrodersplc:NetExchangeDifferencesReserveMember2138001YYBULX5SZ2H242025-01-012025-12-31schrodersplc:AssociatesAndJointVenturesReserveMember2138001YYBULX5SZ2H242025-01-012025-12-31ifrs-full:RetainedEarningsMember2138001YYBULX5SZ2H242025-01-012025-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138001YYBULX5SZ2H242025-01-012025-12-31ifrs-full:NoncontrollingInterestsMember2138001YYBULX5SZ2H242025-12-31ifrs-full:IssuedCapitalMember2138001YYBULX5SZ2H242025-12-31ifrs-full:SharePremiumMember2138001YYBULX5SZ2H242025-12-31ifrs-full:TreasurySharesMember2138001YYBULX5SZ2H242025-12-31schrodersplc:NetExchangeDifferencesReserveMember2138001YYBULX5SZ2H242025-12-31schrodersplc:AssociatesAndJointVenturesReserveMember2138001YYBULX5SZ2H242025-12-31ifrs-full:RetainedEarningsMember2138001YYBULX5SZ2H242025-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138001YYBULX5SZ2H242025-12-31ifrs-full:NoncontrollingInterestsMember2138001YYBULX5SZ2H242023-12-31ifrs-full:IssuedCapitalMember2138001YYBULX5SZ2H242023-12-31ifrs-full:SharePremiumMember2138001YYBULX5SZ2H242023-12-31ifrs-full:TreasurySharesMember2138001YYBULX5SZ2H242023-12-31schrodersplc:NetExchangeDifferencesReserveMember2138001YYBULX5SZ2H242023-12-31schrodersplc:AssociatesAndJointVenturesReserveMember2138001YYBULX5SZ2H242023-12-31ifrs-full:RetainedEarningsMember2138001YYBULX5SZ2H242023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138001YYBULX5SZ2H242023-12-31ifrs-full:NoncontrollingInterestsMember2138001YYBULX5SZ2H242023-12-312138001YYBULX5SZ2H242024-01-012024-12-31ifrs-full:IssuedCapitalMember2138001YYBULX5SZ2H242024-01-012024-12-31ifrs-full:SharePremiumMember2138001YYBULX5SZ2H242024-01-012024-12-31ifrs-full:TreasurySharesMember2138001YYBULX5SZ2H242024-01-012024-12-31schrodersplc:NetExchangeDifferencesReserveMember2138001YYBULX5SZ2H242024-01-012024-12-31schrodersplc:AssociatesAndJointVenturesReserveMember2138001YYBULX5SZ2H242024-01-012024-12-31ifrs-full:RetainedEarningsMember2138001YYBULX5SZ2H242024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138001YYBULX5SZ2H242024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember
Active in everything
We partner with institutions, intermediaries
and individuals around the world to create
prosperity together. For over two centuries,
we have given clients an edge by seeing things
differently. They look to us for our active
perspective, which combines rigorous
research, innovative thinking and deep market
insight to help them see investment
opportunities and risks in a new light.
As stewards of our clients' assets, we use our
influence to help protect and grow the value of
their investments. This includes engaging with
the companies in which we invest and the
policymakers who drive standards for the
benefit of all market participants.
The success of these client partnerships
depends on their trust in our investment,
advisory and wealth management capabilities,
across public and private markets.
We believe that when we succeed for clients,
our shareholders and wider society also benefit.
Our purpose
Creating prosperity together.
Our vision
We partner with our clients to provide trusted
advice and invest in the assets and markets
that matter to them, building their future
prosperity through delivering excellent
investment outcomes.
Our values
We strive for excellence.
We promote innovation and teamwork.
We have passion and integrity.
Strategic report
Key performance indicators 2
Our strengths 4
Chair’s statement 6
Group Chief Executive’s statement 7
Group Chief Investment Officer’s statement 9
Our business model 10
Strategy 12
Business and financial review 16
Sustainability at Schroders 20
Non-financial and sustainability information statement 22
People and community 23
Risk management 25
Stakeholder engagement 32
Viability and going concern statement 34
Governance
Board of Directors and Company Secretary 36
Corporate governance report 40
Nomination and Governance Committee report 50
Audit and Risk Committee report 53
Remuneration report 61
Directors’ report 90
Statement of Directors’ responsibilities 95
Financial statements
Consolidated financial statements 97
Schroders plc financial statements 152
Independent auditor’s report 175
Shareholder and sustainability information
Shareholder information 183
Five-year consolidated financial summary 184
Climate-related financial disclosures 185
Governing our non-financial information 202
Glossary 203
Our Annual General Meeting (AGM) will be held in person at 1
London Wall Place, London, EC2Y 5AU on 16April 2026 at 11:30am.
Our 2025 reporting suite
Visit our 2025 online reporting site to watch and read more:
www.schroders.com/investors
Strategic report Governance Financial statements Shareholder and sustainability information
1 Schroders Annual Report and Accounts 2025
Adjusted net operating income
1, 2
(£m)
Our objective
Adjusted net operating income comprises net operating
revenue earned from the assets we manage, net gains on seed
and co-investments, share of profit of joint ventures and
associates, and other income. Weaim to grow adjusted net
operating income over time.
How we performed
£2,589.8m
Adjusted net operating income increased by £152.7 million to
£2,589.8 million benefitting from market returns and favourable
changes in the composition of our AUM. Statutory net operating
income was £2,700.5 million, an increase from £2,430.4 million
in 2024.
Adjusted cost to income ratio
2
(%)
Our objective
We have set a target to reduce our adjusted cost to income
ratio to less than 70% by the end of 2027, subject to normal
market conditions.
How we performed
71%
The adjusted cost to income ratio improved to 71% in 2025,
from 75% in 2024. This was primarily driven by higher net
operating income, reflecting the Group’s operational leverage,
along with accelerated delivery against our transformation
targets and continued cost control. The statutory operating cost
to income ratio was 75% in 2025 and 78% in 2024.
2,589.8
2,437.1
2,431.8
2,436.0
2,535.3
2025
2024
2023
2022
2021
71%
75%
74%
74%
68%
2025
2024
2023
2022
2021
Assets under management (£bn)
Our objective
We aim to grow our assets under management (AUM) over time
in excess of market growth, through positive investment
outperformance and net new business. As a sterling-denominated
reporter, currency movements also impact asset levels.
How we performed
£823.7bn
At the end of 2025, AUM stood at £823.7billion, an increase of
6%. Markets and investment performance increased AUM by
£75.3 billion, offset by currency movements of £18.4 billion and
£17.9 billion on disposals, principally the sale of our stake in
SPW. Net new business increased total AUM by £6.0 billion.
823.7
778.7
750.6
737.5
766.7
2025
2024
2023
2022
2021
Net new business (£bn)
Our objective
We seek to generate positive net new business (NNB) across
theGroup.
How we performed
£6.0bn
Net new business, excluding our joint ventures and associates,
was £11.2 billion in 2025. Net new business, including joint
ventures and associates, was £6.0 billion.
6.0
1.0
-7.6
37.3
11.2
-10.8
9.7
-1.6
2025
2024
2023
2022
2021
n
NNB excl. JVs and associates
1. The measurement of certain KPIs has been updated following the change to the presentation of our income statement (see page 151). Prior year numbers
have been restated here and throughout the report.
2. These KPIs represent alternative performance measures (APMs), definitions can be found in the Glossary on page 203.
Strategic report Governance Financial statements Shareholder and sustainability information
Key performance indicators
The outcomes we measured
Throughout the year, the Board tracked and reviewed the following key performance indicators (KPIs). These KPIs provide year-on-year
transparency for all stakeholders and are an important source of consistent insight into the strategic, financial and operational progress of
the business.
In 2025, the suite of KPIs was reviewed and updated to align more closely with the Group’s strategic priorities. As part of this, the adjusted
cost to income ratio was introduced as a KPI, and dividend per share was removed. The adjusted cost to income ratio is used to measure
operational efficiency and help track progress towards our strategic goal of returning the business to profitable growth. Our primary
statutory measure, profit before tax, was £673.8 million in 2025 (2024: £558.1 million).
2 Schroders Annual Report and Accounts 2025
17.2
-4.7
Client investment performance (%)
Our objective
We target at least 60% of our AUM outperforming their stated
comparators over a rolling three-year period.
How we performed
70%
In 2025, 70% of assets outperformed their relevant comparator
over three years. Over one and five years, 71% and 73% of
assets outperformed, respectively, the first time since 2021 that
all performance metrics have been above 70%.
More details on our performance reporting can be found on
page 204.
Portfolio temperature score (°C)
Our objective
We aim to achieve a portfolio temperature score of 2.2°C for our
in-scope assets by 2030. This score is based on the targets set by
investee companies across their Scope 1 and 2 emissions.
How we performed
2.4°C
The portfolio temperature score of in-scope assets remained
constant at 2.4°C at the end of 2025. This is ahead of the linear
pace ofreduction required to meet our target. This reflects the
commitment of the companies we invest in, our engagement
efforts and our investment decisions.
70
58
60
73
79
2025
2024
2023
2022
2021
2.4°C
2.4°C
2.5°C
2.6°C
2.8°C
2025
2024
2023
2022
2021
Retention of highly rated employees (%)
Our objective
Developing and retaining talented people is key to our ongoing
success. We actively monitor retention, focusing onthose who
have received a strong performance rating.
How we performed
95%
The retention rate of our highly rated employees remained high
at 95%. This represents a committed and engaged workforce,
aligned with our values.
95
94
96
94
94
2025
2024
2023
2022
2021
Basic adjusted operating earnings
pershare
1, 2
(p)
Our objective
We recognise the potential impact of market volatility on results
in the short term; however, in line with our strategy, we aim to
target growth in adjusted operating earnings per share.
How we performed
36.6p
In 2025, basic adjusted operating earnings per share was 36.6p,
an increase of 29% on 2024. Basic total earnings per share was
34.1p, an increase from 26.4p in 2024.
36.6
28.4
30.7
33.2
41.5
2025
2024
2023
2022
2021
1. The measurement of certain KPIs has been updated following the change to the presentation of our income statement (see page 151). Prior year numbers
have been restated here and throughout the report.
2. These KPIs represent alternative performance measures (APMs), definitions can be found in the Glossary on page 203.
Strategic report Governance Financial statements Shareholder and sustainability information
Key performance indicators continued
3 Schroders Annual Report and Accounts 2025
CLIENT
INSPIRED
We aspire to transform client relationships into
deeper partnerships. We dedicate ourselves to
understanding clients’ needs, earning their
trust, and orchestrating all of our expertise to
help them succeed.
ACTIVE
IN EVERYTHING
Our active perspective combines rigorous
research, innovative thinking and deep market
insight. It means we can help clients see
opportunities and risks differently.
Strategic report Governance Financial statements Shareholder and sustainability information
Our strengths
OUR
COMPETITIVE
EDGE
4 Schroders Annual Report and Accounts 2025
For Schroders, “active” is a mindset, not just an
investment strategy. We are active in how we engage
with the world, solve complex problems, respond to
clients’ needs, and drive our business forward.
Leading investment performance
We have consistently been one of the top three European asset
managers on fund performance for listed funds for the past six
years, in research by UBS. Overall, 71%, 70% and 73% of our
clients’ investments outperformed their benchmarks for one,
three and five years respectively.
Active client insight
We learnt from our 2025 Global Investor Insights Survey
that80% of respondents are more likely to increase allocation
to active management, and 55% said portfolio resilience is
theirpriority.
Unlocking potential with active management
We completed more than 8,000 company interactions which,
combined with active asset allocation and a focus on working
with clients to address their needs, enabled us to target
returns, resilience and income.
Accessible new active fund formats
We launched our first two European active exchange-traded
funds (ETFs), bringing relevant products to meet clients’
evolving needs. Features like ease of trading and liquidity
provide accessibility. We have existing active ETF capabilities in
the US and Australia and plan to expand the European range.
Client-led solutions
We won a £3.3 billion mandate with PGGM, one of the world’s
leading pension investors, based in the Netherlands, and a £4.0
billion mandate with UK wealth manager St. James’s Place. Our
ability to build customised solutions, and our client-focused
sustainable investment capabilities were key.
Future-focused innovation
We partnered with Hargreaves Lansdown to offer the UK’s
firstLong-Term Asset Funds (LTAFs) tailored for experienced
private investors, and we launched the Global Digital Assets
Centre of Excellence in Singapore to help shape the future of
asset management.
TRUSTED
WORLDWIDE
Fulfilling our purpose depends on trust, with
global reach and deep local relationships.
Ourreputation is a strength in every region
where we operate, and our brand gives us an
edge in the market.
PEOPLE
DRIVEN
Talented teams are fundamental to our active
philosophy, with proprietary technology
enhancing their capabilities. We prioritise
excellence and diversity of thought in pursuit
of high performance and client success.
Strategic report Governance Financial statements Shareholder and sustainability information
Our strengths continued
5 Schroders Annual Report and Accounts 2025
Depth and strength in our leadership
Our senior global equities leadership team has an average of
26 years’ industry experience. We have strengthened our
senior team across many areas of the business, including new
strategic leadership in Wealth Management and Client Group.
Global collaboration delivering client value
Collaboration is embedded in our approach to delivering value
for clients. By sharing insights and expertise across public and
private market capabilities globally, we are able to deliver
bespoke solutions and build lasting partnerships with clients.
Expertise strengthened by technology
Our proprietary technology, tools and data analytics support
objective and efficient investment decisions. For example, one
tool enhances the process of reviewing and summarising
company insights, reducing analysis time by 60%. It enables
teams to deliver enhanced insights and opportunities to
achieve outperformance for clients in considerably less time.
A top-5 global asset management brand
The Schroders brand ranks fifth overall out of 2,770 global
asset managers and is the top non-US firm in an independent
global asset management brand study by NMG Consulting. We
have held this position for seven years.
Long-term strategic partnerships built on trust
We extend our access to opportunities in high-growth markets
through relationships with Axis Bank in India, BOCOM in China,
Nippon Life in Singapore, Hartford Funds in the US and
Phoenix Group in the UK. We consider trust in our investment
expertise to be a key factor in these long-standing strategic
partnerships and joint ventures.
Client loyalty and referrals
Average client duration across Public Markets and Schroders
Capital, a measure of how long we hold assets, increased from
4.3 years in 2024 to 4.6 years, reflecting our increased focus on
client retention. We have many long-standing relationships: 13
agreements with 12 institutional clients have been active for 25
years or more, and in our Wealth business we have served one
family for over 75 years, across four generations.
Focused on delivering for stakeholders
2025 was a significant year as we set out
plans to return the business to sustainable
profitable growth and began an ambitious
programme of change.
Focusing the business where we have an edge, keeping close to
clients and applying firm cost and capital discipline are the levers we
have set to achieve growth. We are making good progress,
delivering transformation with determination and speed. In financial
terms our transformation is ahead of target, having already delivered
£75 million of planned three-year net savings.
For our employees, the advantages have been greater clarity of
purpose while holding true to our values.
For our clients, the benefits are that we are applying more dedicated,
specialist resource to understanding their needs and identifying
solutions. Global events have presented a volatile external backdrop
as we have worked to simplify and transform our business. Markets
have risen broadly over the year, but this has book-ended shorter
periods of extreme turbulence sparked by a wide range of
geopolitical and fiscal risks. As the year ended, valuations became an
increasing reason for caution.
It is during uncertain times, however, that we can demonstrate our
value as trusted partners to clients. Our dedication to active
management, with a clear articulation of what this means, are key
towhat we offer. Confidence in this distinctive offering stands
alongside the strong client investment performance we have
reported. We see active as more than an investment strategy: it is a
mindset we bring to every aspect of what we do. We believe that a
forward-looking approach to the risks confronting clients is essential.
It is through this approach that we can deliver the very best for
them, in terms of investment performance, service and meeting their
overarching objectives.
Through a period of ongoing transformation our executive team has
led with dedication, energy and passion. This was the first full year in
office for Richard Oldfield as Group Chief Executive and for Meagen
Burnett as Chief Financial Officer. It is also the year that Johanna
Kyrklund stepped up to the Board as Group Chief Investment Officer.
Their natural ability to develop and lead client-centric yet profitable
organisations – critical factors in their selection for these roles in
2024 – has played out throughout 2025 in terms of strategic
decision-making, leadership of our people and shareholder
interaction. Richard and Meagen’s emphasis on the latter has led to
constructive and supportive shareholder feedback. Johanna and her
team have played a vital part in highlighting the value of Schroders’
active management expertise.
Alongside Richard, Meagen and Johanna have also been consistently
visible, approachable and inspiring within our organisation. They
exemplify Schroders’ cultural values and radiate the energy required
to achieve change.
As part of our transformation, and to support the executive
leadership team, key appointments have been made across Client
Group and Wealth Management. These new hires will be
foundational for our growth strategy, based on anticipating and
meeting clients’ needs. We welcome them and look forward to their
contribution to a new phase of Schroders’ growth.
Transformation continues to be an important backdrop to our
strong financial results. As Richard sets out on the opposite page,
assets under management reached £823.7 billion, supported by
positive net new business, and we have exceeded market
expectations for adjusted operating profit. I am delighted by the
results but we are not complacent in the slightest. Financial markets
were in our favour and we are just one year into the multi-year
transformation that we set out to the market in Spring 2025.
This year the Board is recommending a final dividend of 15.0 pence
per share (2024: 15.0 pence per share). This brings the full-year
dividend to 21.5 pence per share (2024: 21.5 pence per share), flat
on last year, as we seek to bring the dividend back in line with the
50% payout policy target.
Subject to shareholder approval at the Annual General Meeting on
16 April 2026, the final dividend will be paid on 23April 2026 to
shareholders on the register on 13March 2026.
Organisational transformation while we retain a focus on clients and
profitable growth is not easy. In a people and client-centric business
like ours, it demands commitment and energy from everyone. I am
extremely grateful to colleagues around the world for their
professionalism, adaptability and resilience. We are only part of the
way through our journey, but we are making excellent progress. As
we focus our business under the refreshed leadership of Richard
and his team, we are positioning ourselves for sustained future
growth from which we will all benefit together.
Dame Elizabeth Corley
Chair
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
Chair’s statement
6 Schroders Annual Report and Accounts 2025
Our dedication to active
management is key to how
we work alongside clients,
solving their complex
problems together.
Dame Elizabeth Corley
Chair
Actively creating better outcomes
Success for our clients and sustainable,
profitable growth for Schroders: our model
proves that an active approach offers value
in a complex world.
Sales are up; net new revenues are up; costs are down; and – most
important of all – we are delivering the strong investment
performance our clients need and expect. We must acknowledge
external factors influencing our progress, including the supportive
effect of financial markets, but there is a lot to be proud of in 2025.
There is also a lot more to do in the years ahead. Our first priority
must be to accelerate the pace of organic growth in our Wealth
Management and Schroders Capital businesses.
Early in 2025 we set out ambitious plans to reposition our business
for strong growth now and into the future. We have covered much
ground in year one but are not complacent: we are ahead of many of
our targets, but not all. Our achievements to date are reflected in our
financial results.
Assets under management (AUM) have reached a new high of
£823.7 billion, boosted by positive net new business and
supportive markets. We have grown revenues and are ahead
of our targets on costs, enabling us to generate adjusted operating
profit of £756.6 million, an increase of 25% year on year.
Investment performance is a key tenet of our purpose to create
prosperity together with our clients. I am pleased to see that over
one, three and five years our investment professionals have
delivered strong performance, with 71%, 70% and 73% of assets
outperforming their respective benchmarks.
Our transformation in practice
Repositioning for growth started with fundamental changes to our
operating and technology platform. During 2025 we refined our client
proposition, rationalising the number of products we offer, merging
and closing some strategies, while launching others (detailed below).
We also began to reshape Client Group to scale up delivery.
The start of our transformation entailed a thorough examination of
our business globally, with the aim of simplifying and refocusing our
resources where we know we can succeed. We took some difficult
yet deliberate decisions to achieve this.
We recognised that our opportunity to succeed in certain markets
and segments was limited. Our Chief Financial Officer, Meagen
Burnett, sets out the actions we have taken to exit those areas and
sharpen the Group’s strategic focus on page 16. We have also
takensteps to reshape our Wealth Management business, regaining
full ownership of Cazenove Capital in exchange for our stake in
Schroders Personal Wealth (SPW). We have renewed our strategic
relationship with Lloyds Banking Group by entering into new, multi-
year asset management agreements to manage the SPW and
Scottish Widows assets. These changes position us to focus more
closely on the areas where we can create the greatest value for
ourWealth Management clients and strengthen our long-term
growth potential.
Within Client Group we restructured teams and designed a new
sales and marketing model where central support is focused
onfewer core propositions. The goal is to anticipate clients’
requirements and improve our speed to market with the
bestsolutions.
In all these developments we underscore the qualities that
differentiate us: our trusted global brand coupled with local know-
how; and our commitment to active management.
Investing in our people
To achieve scale we need to build support around our strongest
capabilities. That has meant investing in specialist teams and
introducing new leadership, particularly in client-facing roles within
Schroders Capital, and within Wealth Management and Client Group.
In private markets we established the Schroders Capital Business
Development team, ensuring that we can take deep, specialist
knowledge to clients. A new head of Client Group, with supporting
appointments, joined in 2025 and has energised our global sales
operations. And our new Wealth Management CEO is refreshing his
leadership team as we build on our success in meeting the needs of
high-net-worth families and individuals. This team will set new
ambitions for a segment where we have already earned the deep
trust of many clients and where we have the opportunity to build
relationships with new generations of wealth owners.
Strategic report Governance Financial statements Shareholder and sustainability information
From our Group Chief Executive
7 Schroders Annual Report and Accounts 2025
Our strategy to align our
active capabilities to clients’
needs is starting to deliver, as
we return to earnings growth.
Richard Oldfield
Group Chief Executive
There have been leadership changes elsewhere, with new country
and regional heads being appointed across Asia and in Italy, among
other senior personnel changes. We have also established a new
Strategic Partnership team to grow our relationships with key clients.
Leveraging the whole Group’s strength in partnerships – existing
and new – is a key source of value for our shareholders.
Listening to all of our people and measuring sentiment are
fundamental to maintaining a resilient, motivated workforce –
especially during change. I am pleased that our anonymised staff
survey shows high levels of commitment, with 77% saying they are
proud to work for Schroders.
Our conviction in active management is winning for
our clients and our business
We are doubling down on our foundational commitment to active
management. We see the popularity of active investment strategies
rising in line with clients’ apprehension of increasingly complex risks.
This was captured in Schroders’ 2025 Global Investor Insights
Survey, polling the attitudes of almost 1,000 professional investors.
Almost all (94%) were concerned about market concentration, with
many looking to revisit their exposures. Three in four respondents
believed actively managed strategies offered value in current
markets and 80% expected to increase investments in active
strategies over the coming 12 months.
Active investment at Schroders is so much more than an alternative
to passive index funds. It is a philosophy; a state of perpetual
curiosity; a problem-solving mindset that puts us in lock-step with
our clients. It is supported by the deep experience, research and
proprietary tools that we have developed over decades. It is not only
about asset selection, it is also about ongoing stewardship: we
actively engage with the businesses in which we invest to protect
and enhance the value of our clients’ holdings.
Crucially, this approach is winning us business. During 2025 we
benefitted from flows into a number of strategies including US
equities, global equities and credit. More specifically, we secured a
£3.3 billion sustainable equity mandate from Dutch pension investor
PGGM, leveraging our proprietary research platform, including
SustainEx
TM
. We won a further large emerging markets investment
from a major Asian national pension fund, where again, an ability to
meet unique client preferences was key. In France, a leading public
sector pensions provider invested further in our climate solutions
offering; while in the UK further commitments from existing clients
were a vote of confidence in our active approach to managing US
equities and corporate bonds.
Looking ahead – profitably scaling the business
There are many examples in 2025 where our teams’ innovative work
resulted in new and better solutions for clients. In September and
October we launched new active exchange-traded funds (ETFs) on
XETRA Deutsche Börse, Borsa Italiana, SIX Swiss exchange and the
London Stock Exchange. In the UK, we partnered with Hargreaves
Lansdown, the UK’s largest retail investment platform, to offer two
Long-Term Asset Funds (LTAFs) to a wider group of private investors.
We continue to explore opportunities in digital assets and to utilise
emerging technologies to improve our processes and solutions.
Innovations like these are critical to meet the targets we have set
ourselves through this programme of multi-year change.
In our Public Markets business, our target is to stabilise revenues by
the end of 2027. In 2025, net operating revenue was £1,527.9 million
(2024: £1,452.3 million), benefitting not only from strong markets,
but also from the actions we have taken to drive value in the
business and for our clients.
In Schroders Capital, we committed to generate cumulative net new
business of £20 billion over three years from 2025 to 2027 inclusive.
Having delivered £4.6 billion in 2025, we cannot be complacent.
However, we have the platform and products to succeed in this
market. Our focus in 2025 has been laying the foundations to scale,
as we detailed in the Schroders Capital investor event that we held
on 2 December.
This ambition to scale is supported by several factors: the build-out
of our specialist Business Development team, reaching our target of
40 people over the year; investment of our own balance sheet
alongside our clients through seed investments and co-investments,
and leveraging the wider Group’s strength in partnerships. The latter
entails both fostering closer collaboration in current relationships
and developing new ones.
In Wealth Management, our target is to achieve a net new business
rate of 5%–7% of opening AUM per year. Across UK private clients we
have seen a net new business rate of over 5%, despite macro-
economic and tax policy uncertainty. We achieved lower net flows
than anticipated in charities where, despite growth in market share,
strong gross inflows were offset by a limited number of low-margin
outflows. Flows were also muted in our UK adviser business,
Benchmark, and into our overseas offering. Combined, these factors
reduced the total Wealth Management net new business rate to 2.7%.
In relation to costs, our focus and discipline mean we are tracking
ahead of target to meet our goal of £150 million annualised net
savings over three years to the end of 2027. Having set out to
make in-year savings of £50 million in 2025, we managed to
deliver £75 million.
Stepping back and assessing the wider picture, I am pleased to say
that businesses like ours are broadly supported by policy dynamics
in our biggest markets.
Challenges in developed economies drew some alarming headlines
in 2025, but these are galvanising policymakers. In the EU and UK,
two of our biggest markets, the rejuvenation of capital markets, and
the need for capital to support businesses as they grow and hire, are
core missions for governments and regulators. Active asset
managers like Schroders are critical: we support IPOs and provide
funding to companies and projects in different forms and at different
stages. This is a prerequisite if capital markets, and ultimately
economies, are to thrive.
Finally, looking back over the immense change and work of 2025, I
do not underestimate what is being asked of colleagues. More than
ever, we draw on the adaptability of our people as we evolve in step
with our clients’ needs. Change is challenging but also energising.
Strong growth is what will put us in the best position to offer our
people rewarding careers.
We will always be a business that innovates and learns alongside its
clients. That is our culture, and that is what delivers benefits for our
shareholders, our people and our clients.
Richard Oldfield
Group Chief Executive
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
From our Group Chief Executive continued
8 Schroders Annual Report and Accounts 2025
Navigating complexity, building strength
Actively choosing what you own and
knowing why you own it is fundamental
when business models are tested and
opportunities emerge from disruption.
Our active ethos is about applying judgement, insight and discipline
to help our clients navigate uncertainty and capture opportunity. We
have a distinctive combination of global reach, fundamental research
and quantitative capabilities that allows us to take a long-term
perspective while responding decisively to short-term challenges.
The breadth and integration of our capabilities across public and
private markets strengthens our perspectives and helps us to deliver
the solutions our clients need.
In this landscape, we are seeing clients seek return opportunities,
portfolio resilience, predictable income and trusted advice. We have the
tools to meet their needs: active allocation and investment selection
across markets; the ability to offer sources of downside protection and
risk management; powerful research and insight capabilities; and our
leading expertise in sustainability. You can read more about how these
dynamics inform our strategy on pages 12 to 15.
Themes driving client demand
Expensive valuations, geopolitical uncertainty and high levels of
index concentration in public markets have increased risk in client
portfolios. Inflows into our US large cap strategy provide an
interesting example of how investors have looked to active
management to help manage concentration. Allocations to “value” in
public markets, a strategy that focuses on companies that are
undervalued relative to fundamentals, and to our Schroders Capital
Private Equity (GPE), a semi-liquid evergreen fund that focuses on
lower mid-market buyout investments, provide exposures which are
less exposed to valuation risk.
Another theme that continues to attract a lot of client interest is
“income”. We have a very broad range of income-generating
strategies across Fixed Income and Equities, as well as diversifying
sources of income such as insurance-linked securities, securitised
debt and infrastructure debt. Supported by strong structuring
capabilities in core solutions, our multi-asset team brings these
elements together to deliver balanced outcomes aligned with our
clients’ objectives.
Through partnership and by sharing our insights and experience to
tackle clients’ individual challenges, our customised solutions and
advisory approach delivered significant wins. And in spite of the
political backdrop, we have continued to see demand for sustainable
investment, particularly from large institutions. An equity investment
mandate worth £3.3 billion with PGGM, one of the world’s leading
pension investors in the Netherlands highlighted our strengths in
these areas. You can read more about how sustainability is
embedded in our investment approach on pages 20 to 22.
We are long-term investors, and active owners. Our approach
extends beyond the assets we select; we add value by influencing
and encouraging boards and management teams to adapt and
change in the interest of long-term profitability. We engage with
policymakers because effective regulatory frameworks should
support healthy markets and a supportive environment for client-
focused innovation.
Investing in our capabilities
We launched two new active ETFs in Europe, meeting client demand
for exposure though the flexibility of this type of wrapper and adding
to existing capabilities in Australia and the US. We also made key
new hires focused on this and on bringing together our strengths in
active management across public and private markets to deliver
client solutions at scale.
Our ability to deliver insights, our operating platform and our
technology are all essential to the service clients expect across the
breadth of our capabilities. We have embraced AI – not as a
replacement for judgement, but as a tool to enhance it. Through a
combination of proprietary tools and strategic partnerships, our
investors gain insights and a measurable boost in productivity.
Looking ahead
Markets defied many commentators’ expectations in 2025, closing
the year at new heights and providing healthy returns. That leaves
equity valuations looking high, but not at extremes yet. Indicators
suggest to us that the risk of recession remains low, and the inflation
cycle is in a benign phase. However, geopolitical events remain
impossible to predict with any certainty and markets will continue to
test our assumptions. Many passive investors may be unaware of
how concentrated their exposure is to specific areas of the market,
and the risks this presents. Our job as active managers remains the
same: research deeply, assess risk from every angle, and make
decisions in conditions of uncertainty.
The challenges of 2025 have underscored the value of active
management – and the importance of innovation, collaboration and
resilience. We will continue to navigate complexity with care,
conviction and clarity, always guided by our purpose: to create
prosperity together with our clients.
Johanna Kyrklund
Group Chief Investment Officer
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
From our Group Chief Investment Officer
9 Schroders Annual Report and Accounts 2025
In a year of unprecedented
change and uncertainty, the
value of our active principles
and expertise has never
been clearer.
Johanna Kyrklund
Group Chief Investment Officer
Capabilities for client-focused solutions
Our business model enables us to develop scalable solutions, together with clients. Schroders is built
on two segments: Asset Management and Wealth Management. Across these, we have a breadth of
complementary capabilities, with global reach and local relationships, offering relevance to clients in
a complex world.
Client engagement
The solutions we create are founded on clients’ needs. Sales, Client Service, Product and Marketing teams coordinate client engagement.
Asset Management
£605.7bn AUM
Active investment management across public and private markets through funds and
institutional mandates. We combine asset class expertise to create bespoke solutions.
Wealth Management
£123.9bn AUM
Investment, advisory and platform
services across the wealth spectrum.
Public Markets
We actively manage clients' investments
across stocks, bonds and other
securities that are traded in public
markets. Individual investors can access
our funds through intermediaries and
investment platforms. We partner with
institutional clients to develop strategies
through segregated accounts, tailored
to their needs.
Schroders Capital
We help clients to access investment
opportunities in private markets, focusing
on private equity, private debt and credit
alternatives, real estate and
infrastructure investment. A specialist in
mid-market high growth themes, across
regions and sectors, Schroders Capital
aims to help clients generate long-term
value and diversify their portfolios.
Associates and joint ventures
£94.1bn AUM
We partner with other leading firms, including BOCOM in China, Nippon Life in
Singapore, Axis in India and Phoenix Group in the UK. These partnerships provide
access or greater reach in markets with high potential.
Wealth Management
We work with individuals, families,
financial advisers and charities to grow
and protect their wealth for the long
term. Our Wealth Management
services include investment portfolios,
wealth and estate planning, and
banking services.
Cazenove Capital serves high- and ultra-
high-net-worth clients and family offices
in the UK. Schroders Wealth
Management serves these client
segments internationally. A specialist
team also serves charities and
foundations in this business.
Benchmark provides an investment
platform for financial advisers to help
them meet their clients’ needs. In the UK,
it also offers investment advice and
wealth planning for individual investors.
Corporate functions
Service delivery across the Group is enabled by robust and flexible operating systems, which include corporate functions: Global
Technology, Operations, Finance, Risk and Compliance, People and Culture, Legal and Governance, Internal Audit and Tax.
Diversified across channels, regions and asset classes (AUM)
Channels
l
Institutional
64%
l
Intermediary
19%
l
Wealth Management
17%
Regions
l
UK
47%
l
EMEA
16%
l
Asia Pacific
25%
l
Americas
12%
Asset classes
l
Core solutions
16%
l
Equities
31%
l
Multi-asset
14%
l
Fixed income
12%
l
Private markets
10%
l
Wealth Management
17%
Strategic report Governance Financial statements Shareholder and sustainability information
Our business model
10 Schroders Annual Report and Accounts 2025
How our business works
We combine our broad investment expertise with client insights and market knowledge to develop
client-inspired solutions. We actively manage their investment capital with the goal of creating
prosperity together and achieving positive outcomes for all stakeholders.
Our purpose: creating prosperity together
Understand our
clients’ needs
We invest time to understand our clients’
evolving needs. Combining a global client
perspective with deep local knowledge, we
seek to build deeper, longer-lasting
relationships. In Asset Management, we
offer investment opportunities across public
and private markets that respond to clients’
needs. In Wealth Management, our
differentiated brands offer services that are
designed for a range of clients, according to
their specific needs and circumstances.
Create innovative products
and solutions
We recognise that clients have a wide variety
of needs. Our approach to designing
innovative products and solutions is highly
collaborative, combining client insights with
market and regulatory knowledge and our
renowned investment capabilities across
public and private markets. We prioritise
attention to detail and timely delivery of new
products into the market. Our products are
designed to suit our clients’ risk and return
profiles, and their sustainability preferences.
We test them rigorously to ensure that they
are fit for purpose.
Actively manage investments
Asset Management
Our asset class specialists actively manage clients’ investments.
Using insights based on our proprietary research and
technology, they seek opportunities aligned with clients’ long-
term objectives.
Wealth Management
We manage investments for individuals and families, based on
careful consideration of their circumstances and priorities. We
focus on the needs of current and future generations through
our wealth planning and platform services. Our specialist team
serves the investment needs of charities and foundations.
How we earn money
We generate revenue by charging fees as a percentage of the assets we manage, and for the use of our platform or advisory services,
where relevant. We also sometimes earn performance-based revenues, transaction fees and returns on seed and co-investments.
How we create value over the long term
Performance for clients
Our active approach seeks to solve
complex problems, answer clients’
needs and deliver investment
outperformance. It is vital that we never
lose sight of the people and institutions
who entrust us with their money.
Shareholder returns
We focus on working with clients to
create better outcomes, driving cost
discipline within the business and
thoughtfully deploying capital to
areaswith higher growth potential.
Indoing so, we aim to drive earnings
growth and create long-term value
forour shareholders.
Active stewardship of assets
We manage £823.7billion of assets on
behalf of our clients. We seek
opportunities for returns by actively
engaging with management teams and
boards, while helping the businesses
we invest in transition to more
sustainable models.
Client investment performance
(5-year)
73%
Adjusted operating
earnings per share
36.6p
Interactions with investee companies
across a range of topics
>8,000
Strategic report Governance Financial statements Shareholder and sustainability information
Our business model continued
11 Schroders Annual Report and Accounts 2025
Understanding external dynamics
Our global research and local insight give us a clear view of the factors shaping markets and investor
behaviour. Our deep client relationships help us understand the distinct objectives of each client type
and how broader global trends influence their needs.
Global trends
Wider macroeconomic and industry trends set the backdrop for global markets, shaping how economies evolve and influencing
long-term investment opportunities and risks.
Evolving policy priorities
Increasingly complex geopolitical dynamics have led
governments to review defence policy, while maintaining their
focus on economic growth and inflation management. The US
and Europe are using tariffs and industrial policies to steer
investment towards strategic sectors. Such shifts will influence
where future opportunities and risks emerge.
Technology and innovation
Artificial intelligence is transforming industries and leading to
major spending on data and energy infrastructure. The US
technology sector is expected to drive returns in the near term,
however, growth projections are not uniform and fundamentals
continue to matter. While opportunities are significant, rising
debt-funded investment highlights the need for selectivity.
Debt and fiscal pressures
Rising long-term interest rates are intensifying concerns about
fiscal sustainability, especially as debt dynamics in major global
economies have deteriorated and spending pressures persist.
Meanwhile, combined monetary and fiscal support may see
inflationary pressures re-emerge, which may contribute to
greater volatility in financial markets.
Climate transition
Energy security and the shift to cleaner growth are
reshapingeconomies. The need for capital to move into
renewables, adaptation and low-carbon innovation remains.
Strongsustainability insights can help identify future winners
from the transition.
Demographic shifts
Populations are ageing in developed economies while
younger workforces expand elsewhere, prompting pension
reform and changes in savings behaviour. At the same time, a
major intergenerational transfer of wealth is underway,
influencing consumption patterns and driving demand for
income, advice and long-term investment solutions.
Concentration risk
Across a number of global markets, a small number of large
companies now dominate equity indices, delivering strong
returns but heightening stock-specific risk. With markets
narrowing and volatility rising, investors may consider
diversification across regions, styles and asset classes to help
manage concentration risk and broaden sources of return.
Unique client objectives
Each client has their own objectives, risk tolerance and time horizon, reflecting the diversity of priorities that drive investment
decisions. It is our fiduciary duty to work with clients to understand these factors and provide solutions that adequately meet
theirneeds.
Wealth
Banks, advisers and retail investment platforms are serving
clients whose wealth is expanding and shifting across
generations. These intermediaries, and our own advisers to
clients within our wealth business, need to provide
personalised strategies that balance performance,
diversification and purpose that evolves with the changing
policy landscape.
Family offices
Family offices seek customised solutions that reflect their
distinct structures, values and time horizons. They require
holistic strategies that manage complexity, support long-term
wealth preservation and address the diverse investment and
governance needs of multiple generations.
Endowments, charities and foundations
Universities, charities and other foundations aim to deliver
long-term public benefit. They need mission-aligned
strategiesthat balance growth, income and risk while
preserving capital for future beneficiaries and maintaining
organisational sustainability.
Insurance
Focused on resilience to inflation, volatility and demographic
change, insurance companies need duration-matched returns,
stable income and effective asset-liability solutions that can
deliver within strict regulatory and capital frameworks.
Pensions
Corporate defined benefit, defined contribution and public
pension funds aim to improve retirement outcomes for
members. They need holistic portfolio solutions that provide
investment outcomes that address savings gaps or manage
surpluses through sustainable run-on approaches.
Official institutions
Central banks, sovereign wealth funds and government
institutions oversee large, long-term pools of capital.
Theyneed prudent risk management, liquidity planning,
specialist insight and ongoing training to navigate evolving
policy priorities and maintain financial stability.
Strategic report Governance Financial statements Shareholder and sustainability information
Strategic context
12 Schroders Annual Report and Accounts 2025
Opportunities to meet client demand
By analysing external factors and understanding the unique needs of each client segment, we seek
toanticipate change and respond to areas of growing demand. Drawing on the full breadth of
Schroders’ expertise, we tailor our capabilities across markets and client segments to address four
recurring themes and meet clients’ evolving objectives.
How we address client investment needs
Return
opportunities
Our strength lies in active investing, using deep proprietary
research and disciplined investment selection to uncover value.
We meet our clients’ need for return opportunities primarily
through public and private equity, including global, emerging
markets, value and Asian strategies. In private equity, we
provide access to small and mid-cap markets, which have
outperformed larger companies in recent years.
By combining insights from more than 11,000 company
research pieces a year with dynamic asset allocation, we help
clients access growth where it is most resilient and avoid areas
of concentration risk.
Future
resilience
Clients increasingly want portfolios built not just for today’s
markets but for the challenges ahead. Through our multi-
asset and outsourced solutions capabilities, we help clients
meet defined objectives – from managing risk budgets to
addressing long-term liabilities.
In private markets, our real estate and infrastructure
strategies provide inflation-linked, forward-looking exposure.
Sustainability is embedded across our investment processes
as a key tool for managing risk, strengthening resilience and
identifying tomorrow’s winners.
Predictable
income
With yields normalising after years of low rates, the demand
has shifted from simply reaching for yield to building portfolios
that deliver sustainable cash flow and inflation protection.
We have several solutions for clients who are looking for
stable cash flows – be that for wealth clients as populations
age, or for insurers who are looking for predictable yield.
We have a suite of traditional fixed income strategies, which
include credit, global unconstrained, US and emerging market
debt. Dividend-paying equities and alternative income
strategies such as securitised credit and insurance-linked
securities also provide differentiated streams of income for
our clients.
Trusted
advice
Rising policy uncertainty and growing financial complexity are
increasing demand for trusted advice and holistic solutions.
The trust our clients place in us fosters stronger partnerships
and helps us deliver better outcomes. Increasingly, we are
creating bespoke mandates to meet specific requirements,
such as tailored sustainability solutions or multi-private
assetcombinations.
For high-net-worth clients, delivering strong investment
outcomes remains essential, but success increasingly depends
on broader support, from estate planning to philanthropy and
intergenerational wealth solutions that help clients plan for
their family’s future. We enable advisers to guide their clients
through similar transitions via our integrated adviser
technology platform business.
Strategic report Governance Financial statements Shareholder and sustainability information
Strategic context continued
13 Schroders Annual Report and Accounts 2025
Refocusing for the future
In 2025, we launched our three-year plan to return the business to profitable growth. As we pursue
stronger earnings through revenue initiatives and cost discipline, our commitment to clients remains
paramount. We are focusing on where we can create the greatest value, simplifying our operations
and scaling our core strengths to deliver better outcomes, greater efficiency and sustainable growth.
Three objectives, one goal
Our strategy
Our strategic objectives enable us to focus and deliver long-term benefits for clients,
shareholders and society.
Simplify Scale Deliver
Our financial targets
1
:
Asset Management Wealth Management
Public Markets Schroders Capital
Achieve a net new
business rate
2
of
5 to 7% per annum
Stabilise revenues
Generate £20bn
cumulative net
newbusiness
Annualised net cost efficiencies: £150m by the end of 2027
Achieving profitable growth depends on the combination of effective execution against our
growth targets and rigorous cost discipline:
Reduce adjusted cost to income ratio to <70% by end of 2027
3
Drive earnings growth
For information on the link between strategy and our principal risks, refer to page 27.
1. For the years 2025-2027 inclusive.
2. Net new business as a percentage of opening AUM.
3. Subject to normal market conditions.
Strategic report Governance Financial statements Shareholder and sustainability information
Our strategy
14 Schroders Annual Report and Accounts 2025
Actions that have driven progress
We have made significant progress against the transformation programme underpinning our
strategy. We have moved at pace, delivering substantial change ahead of target while continuing to
serve our clients and improve profitability. This work lays the foundation for a simpler, more efficient
and resilient business.
Our future focus:
Client outcomes
Strive to maintain investment
outperformance and continue to deliver
excellent client service
Public Markets
Expand our active ETF range to allow
access to active management with
increased liquidity and flexibility
Wealth Management
Invest in our operating platform to
improve client experience and ensure it
is future-fit
Schroders Capital
Scale our differentiated products that
align with client demand with further
investment from our balance sheet
Our people
Cultivate an environment where our
talented employees are empowered to
thrive and share in Schroders’ success
Strategic partnerships
Drive value creation through closer
collaboration with our partners, sharing
knowledge and innovating together
Strategic report Governance Financial statements Shareholder and sustainability information
Strategic progress
15 Schroders Annual Report and Accounts 2025
Q2 Reshaping at pace
– Established two bespoke sustainability mandates worth £7.3 billion
– Welcomed the new CEO of Wealth Management
– Appointed a new Global Head of Client Group
– Broadened our long-standing operating partnership with UST across our
operations and technology functions to improve efficiency and drive scale
– Exited Private Credit Australia
1. March 2025: NMG 2024 Global Asset Management Study.
2025 Delivering results
– Delivered three-year client investment outperformance of 70%
– Drove net flows of £8.2 billion into our leading capabilities in Public Markets
– Maintained our position as top five global asset management brand
1
– Identified 16.2% of our public fund range to be merged or closed
– Reduced our adjusted cost to income ratio from 75% to 71%
– Grew our operating earnings per share by 29% year on year to 36.6p
Positioning Schroders for long-term growth
Q1 Launching our plan
– Announced ambitious three-year targets to drive profitable growth
– Enhanced disclosure and simplified reporting to improve transparency
– Instilled refreshed rigour in our expense and capital management
– Focused our procurement process in order to streamline our suppliers
Q4 Realigning our resources
– Reached our target size of 40 professionals in the Schroders Capital Business
Development team
– Appointed a new Head of Investment to drive innovation and support growth
in Public Markets
– Regained sole ownership of Cazenove Capital in exchange for our stake in
Schroders Personal Wealth
Q3 Evolving our offering
– Increased client access by launching active ETF range in Europe
– Partnered with Hargreaves Lansdown to launch the UK’s first Long-Term Asset
Fund on a retail platform
– Began managing a £7 billion UK pension fund mandate
– Closed our Munich Real Estate offering to streamline our portfolio
Driving sustainable value through focus
In 2025, our active approach enabled us to deliver client investment
performance of at least 70% over one, three and five years. At the
same time, we strengthened client relationships, with engagements
increasing by more than 30% year on year. We also saw continued
commercial momentum, reflected in gross inflows of £142.0 billion,
up 9% (excluding joint ventures and associates).
We grew net operating revenue excluding performance fees and
carried interest by 5% (2024: 2%), supported by strong markets and
improved business mix. Favourable market conditions and
investment performance increased average AUM (excluding joint
ventures and associates) by 5%. In addition, strong equity market
gains increased the proportion of asset management AUM
(excluding joint ventures and associates) invested in equities by 1.5%,
which was revenue-accretive given higher average fee rates.
Including higher performance fees and net carried interest and
increased returns on seed and co-investments, adjusted net
operating income increased 6%.
Our significant progress against our transformation targets and
focus on cost discipline ensured that the growth in revenues was not
matched by an increase in costs. Instead, we maintained stable
adjusted operating expenses year on year. This improvement in
operating leverage has resulted in a 25% increase in adjusted
operating profit and a 29% increase in adjusted operating basic
earnings per share.
A year ago, we committed to four key priorities to drive our progress:
1) Accelerate pace of improvement and deploy
resource and capital effectively
We continue to make strong progress against our three-year
transformation programme, moving at pace to simplify the Group,
improve operating leverage and deploy resources and capital
more effectively.
Accelerating cost efficiencies and reinvestment
We further accelerated delivery against our transformation cost
target, achieving £75 million of in-year savings through the income
statement net of reinvestment, ahead of our expectation of £50
million. On an annualised basis, we have delivered cost savings of
£102 million, net of reinvestment, of our three-year £150 million
annualised savings target. This was delivered despite incurring a £20
million unanticipated charge to support a programme of remedial
works to our London office building.
Savings were driven by continued simplification of our operating
model, tighter control of our supplier footprint and the expansion of
strategic operating partnerships, including our long-standing
relationship with UST. These actions are improving scalability and
resilience across our Technology and Operations functions, while
maintaining a strong focus on client service.
Consistent with our strategy, we have reinvested selectively to
support future growth, including targeted hiring in priority
investment areas, hiring for key leadership roles across Wealth
Management and Public Markets, strengthening our client coverage
model and building out specialist sales capability in Schroders Capital.
2025 represented the first phase of our transformation programme,
with a primary focus on resizing the organisation and laying the
foundations to continue delivering cost efficiencies as we increasingly
pivot towards growth.
We remain firmly committed to delivering £150 million of annualised
net cost savings by the end of 2027.
Portfolio restructuring
Alongside cost actions, we have taken decisive steps to simplify our
business portfolio, sharpen our strategic focus and exit markets
where we do not see sufficient scale or long-term strategic
advantage. During the year, we closed our convertibles desk, exited
our real estate business in Munich and our private credit business in
Australia, announced our intention to close our business in Brazil,
and progressed the restructuring of our business in South Korea. In
addition, we initiated the sale of our Indonesian asset management
business (subject to regulatory approval). We also transitioned the
full ownership of Schroders Personal Wealth (SPW) to Lloyds Banking
Group, enabling us to focus on our core strengths within our Wealth
Management business.
These actions, while difficult, were important to simplify the Group,
improve capital efficiency and ensure resources are focused on
areas where we have clear competitive strengths and the greatest
opportunity to deliver sustainable, profitable growth.
Strategic report Governance Financial statements Shareholder and sustainability information
Business and financial review
16 Schroders Annual Report and Accounts 2025
We have taken a disciplined
approach to refocusing the
business and laying solid
foundations for long-term growth.
Meagen Burnett
Chief Financial Officer
2) Invest in leading capabilities and broaden client
access in Public Markets
At the end of 2025, we were ahead of our objective to stabilise
revenues in Public Markets, with net operating revenue including
performance fees increasing by 5% year on year. This was supported
by strong market conditions, whilst favourable channel and regional
mix helped mitigate ongoing revenue margin pressure. We
generated NNB of £3.7 billion, with improved demand across both
intermediary and institutional channels. Intermediary net flows
strengthened through the year, with the final quarter delivering our
strongest intermediary flows since the first quarter of 2021. We
enter 2026 with a tailwind from the growth in AUM delivered in the
second half of 2025.
The nine leading capabilities which we highlighted in our strategy
update in March delivered combined net inflows of £8.2 billion, with
strongest demand for global equities, credit, and core solutions. We
continued to actively reshape the product range and optimise the
operating platform around these capabilities. Over 16% of the Public
Markets fund range is in the process of merger or closure.
Importantly, this period of transformation has not compromised the
strength of our investment franchise. We retained over 95% of highly
rated employees in Public Markets and improved our three-year
investment performance.
We continued to innovate to drive scale and broaden investor access
to our capabilities, including through the launch of European Active
ETFs and public–private credit. To support the execution of these
initiatives and the broader growth of Public Markets, we have
reinvested in talent, appointing a new Head of Investment and a new
Head of ETFs.
3) Drive flows into our differentiated, specialist
capabilities in Schroders Capital
Over the year, we reviewed our private markets portfolio and exited
markets and capabilities where we did not have sufficient scale or a
clear right to win. These actions, outlined above, were taken to
concentrate resources on areas where we have strong competitive
positions and see durable client demand.
Schroders Capital generated £10.9 billion of gross fundraising, with
non-fee-earning dry powder increasing by £0.7 billion to £4.9 billion,
reflecting continued client appetite across our core strategies.
We generated NNB of £4.6 billion, including £0.5 billion from Future
Growth Capital (FGC). By pillar, we recorded NNB of £1.9 billion in
Private Equity, £1.4 billion in Private Debt and Credit Alternatives,
£0.8 billion in Infrastructure, and broadly flat NNB in Real Estate.
In December 2025, we won a mandate from Mercer in the UK
defined contribution pension market, creating a further opportunity
to expand our evergreen private markets range. This included the
launch of a bespoke long-term asset fund (LTAF), jointly designed
with Mercer, broadening access to diversified private markets
exposure. FGC was appointed as the investment manager of
Mercer’s new private markets LTAF.
To support future fundraising, we completed the build-out of our
dedicated Schroders Capital Business Development team, reaching
our target of 40 sales specialists. This specialist coverage enhances
our ability to engage with clients across regions and channels,
particularly in institutional and wealth markets.
The Group has committed up to £500 million of seed and co-
investment to support the growth of Schroders Capital. Deployments
and commitments continued during the year, supporting fund
launches and planned launches, accelerating fundraising and
strengthening alignment with client interests, notably the Greencoat
Global Fund and BlueOrchard Climate Action Mobilisation Fund.
Taken together, these actions reflect a deliberate focus on building
scale, sharpening differentiation and positioning Schroders Capital to
capture future growth as market conditions improve. Looking ahead,
in February 2026 we also announced a strategic partnership with
Apollo to co‑develop next‑generation public‑private investment
solutions, further strengthening our private markets proposition.
4) Sustain and build on our successful track record in
Wealth Management
It was a year of change for the Wealth business, with our new CEO
refreshing the leadership team and undertaking a strategic review. We
strengthened our Wealth Management segment by regaining full
ownership of Cazenove Capital in exchange for our stake in SPW. We
have established a new multi-year asset management agreement to
continue managing the SPW assets.
Overall, Wealth Management delivered £3.4 billion of NNB, equivalent
to an organic growth rate of 2.7%, below our expectations. Despite
continued policy uncertainty we saw strong organic growth of 5.2%
within our UK private client book.
Our Charities team recorded increased gross inflows in 2025 and have
grown their charity market share from 10.7% to 14.1% over the past
five years. A small number of large, low-margin outflows in the fourth
quarter, combined with elevated reserve drawdowns, resulted in
negative net new business for the year.
Against a backdrop of continued macro-economic and policy
uncertainty, Benchmark net flows remained muted in the fourth
quarter, resulting in total NNB for 2025 of £1.0 billion, equivalent to a
NNB rate of 2.9%.
Wealth Management continues to be a key pillar of revenue and profit
growth for the Group. In 2025, Wealth Management net operating
revenues increased 10%. Adjusted operating profit for the Wealth
Management segment increased at a compound annual growth rate
of 15% over the last three years.
Outlook
Over the past year, we have taken decisive action to reshape the
Group, strengthening focus, improving operating leverage and
reinforcing capital discipline. We remain committed to embedding
the changes we have made in the first year of our transformation,
and to our target of £150 million annualised net savings.
As we look ahead to 2026, we do so against a market backdrop that
remains uncertain and demanding, with elevated valuations in certain
asset classes. In these environments, clients need active management
most.
Whilst improving momentum in the fourth quarter in Public Markets
positions us strongly as we enter 2026, our focus remains on
delivering continued strong investment performance, rather than
relying on favourable market conditions or a sustained turn in flows.
In Schroders Capital, the priority is to convert the investment made in
our specialist business development team into sustained NNB
delivery, against a backdrop of more subdued global fundraising.
In Wealth Management, we enter 2026 with confidence in the
continued strength of our UK Cazenove Capital business, underpinned
by a strong pipeline across charities and UK private clients.
We have a clear understanding of the opportunities and challenges
that lie ahead for our own business. Our focus remains on disciplined
execution of our strategy, supporting clients with our active approach
through complexity and volatility, and delivering against our ambition
to return to sustainable, profitable growth.
Meagen Burnett
Chief Financial Officer
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
Business and financial review continued
17 Schroders Annual Report and Accounts 2025
£bn
1 January
2025
Gross
inflows
Gross
outflows Net flows Transfers
1
Acquisitions
and
disposals
2
Investment
returns,
FX and other
3
31 December
2025
Equities
190.2
46.0
(46.4)
(0.4)
(0.4)
–
35.7
225.1
Fixed income
81.9
33.1
(33.6)
(0.5)
3.0
–
2.6
87.0
Multi-asset
83.7
12.8
(16.3)
(3.5)
12.4
–
9.8
102.4
Core solutions
109.1
21.5
(13.4)
8.1
1.2
–
0.2
118.6
Public Markets
464.9
113.4
(109.7)
3.7
16.2
–
48.3
533.1
Private Markets
70.1
10.2
(6.1)
4.1
–
(1.4)
(0.2)
72.6
Asset Management
535.0
123.6
(115.8)
7.8
16.2
(1.4)
48.1
605.7
Cazenove Capital and other Wealth
92.2
14.4
(12.0)
2.4
(16.2)
–
6.9
85.3
Benchmark
34.6
4.0
(3.0)
1.0
–
0.6
2.4
38.6
Wealth Management
126.8
18.4
(15.0)
3.4
(16.2)
0.6
9.3
123.9
Total excl. JVs and associates
661.8
142.0
(130.8)
11.2
–
(0.8)
57.4
729.6
JVs and associates
116.9
462.6
(467.8)
(5.2)
–
(17.1)
(0.5)
94.1
Group total
778.7
604.6
(598.6)
6.0
–
(17.9)
56.9
823.7
1. The transfer of £16.2 billion from Wealth Management to Asset Management relates to assets managed on behalf of Schroders Personal Wealth (SPW).
2. Principally relates to the disposal of SPW.
3. Includes markets, foreign exchange and investment performance. Foreign exchange decreased AUM including joint ventures and associates by around £18.4
billion (2024:decrease of £7.9 billion) and decreased AUM excluding joint ventures and associates by around £13.3 billion (2024: decrease of £6.9 billion).
Financial performance
AUM including joint ventures and associates
reached £823.7 billion (2024: £778.7 billion),
driven by strong investment returns,
favourable market performance and
positive NNB.
Markets and investment returns, including
those from joint ventures and associates,
contributed £56.9 billion. This was despite
adverse foreign exchange movements,
principally the weakening of the US dollar,
reducing AUM by £18.4 billion. Net disposals,
including the sale of our stake in SPW,
resulted in a further decrease of £17.9 billion.
Net inflows of £6.0 billion were driven by
Public Markets, Schroders Capital and Wealth
Management, partly offset by outflows from
our associates and joint ventures.
Average AUM excluding joint ventures and
associates increased 5% year on year to
£686.2 billion (2024: £652.3 billion). This
contributed to a 5% increase in net
operating revenues excluding performance
fees and net carried interest. Performance
fees and net carried interest increased to
£79.4 million (2024: £63.4 million),
underpinned by strong investment
performance, resulting in total net operating
revenue of £2,504.3 million, up 6% year on
year (2024: £2,370.0 million).
Our adjusted share of profits from joint
ventures and associates reflected modest
improvement, increasing to £49.3 million
(2024: £47.7 million). This was despite the
sale of SPW at the start of the fourth
quarter. Overall, adjusted net operating
income for the year was £2,589.8 million
(2024: £2,437.1 million), up 6%.
Total adjusted operating expenses were
stable at £1,833.2 million (2024: £1,834.0
million), with net in-year savings from our
transformation programme of £75 million
and disciplined cost control helping mitigate
inflationary pressures. Together with the
benefit of operating leverage from higher
net operating income, this resulted in an
improvement in the adjusted cost to income
ratio from 75% to 71%. Within this,
operating compensation costs were
£1,138.5 million (2024: £1,154.9 million),
down 1%. Non-compensation costs
increased to £694.7 million (2024:£679.1
million), reflecting a switch from fixed
compensation costs as we expand our
partnership with UST and the recognition of
a provision for remedial building works
required at our London premises.
Adjusted operating profit was £756.6 million
(2024: £603.1 million), up 25% year on year.
Profit before tax was £673.8 million (2024:
£558.1 million), an increase of 21%,
reflecting the one-off gain of £113.3 million
from the sale of SPW, which offset the costs
of transformation and other portfolio
restructuring items
4
totalling £152.5 million.
The Board has proposed a final dividend of
15.0 pence per share (2024: 15.0 pence
per share).
Asset Management segment
Asset Management adjusted net operating
income for the year was £2,030.4 million
(2024: £1,934.7 million), up 5%. Further
detail on the components of this is set
outbelow.
Adjusted operating expenses decreased 2%
to £1,434.7 million (2024: £1,469.7 million),
demonstrating the benefit of savings
through our transformation programme
and broader cost control.
Overall, these movements resulted in an
adjusted operating profit of £595.7 million
(2024: £465.0 million) for the Asset
Management segment.
Public Markets
Our Public Markets business saw net inflows
of £3.7 billion (2024: net outflows of £21.6
billion) and total net operating revenue of
£1,527.9 million (2024: £1,452.3 million).
Within this, equities experienced marginal
net outflows of £0.4 billion (2024: net
outflows of £18.2 billion). Net flows
benefitted from mandates awarded through
the year, including £4.0 billion from St.
James’s Place and £3.3 billion from PGGM,
although these gains and demand for our
global and quantitative equity products were
partly offset by outflows from Emerging
Market and Asia Pacific equity strategies.
AUM in equities finished the year up 18% at
£225.1 billion (2024: £190.2 billion), with net
operating revenue of £945.2 million (2024:
£913.1 million). The net operating revenue
margin excluding performance fees reduced
by a basis point to 45 basis points (2024: 46
basis points).
In fixed income, global and European bonds
continued to attract strong client demand.
However, net outflows for the asset class as
a whole amounted to £0.5 billion (2024: net
inflows of £1.4 billion) largely due to
redemptions from US, Asia Pacific, and UK
strategies. AUM ended the year at £87.0
billion (2024: £81.9 billion). Net operating
revenue was £281.7 million (2024: £255.6
million), while the net operating revenue
margin excluding performance fees
improved by 2 basis points to 34 basis points
(2024: 32 basis points) reflecting positive mix
effects.
4. Includes a £20.6 million expected credit loss charge reported outside of operating profit, within other net (loss)/gain on financial instruments and other income.
Strategic report Governance Financial statements Shareholder and sustainability information
Business and financial review continued
18 Schroders Annual Report and Accounts 2025
Multi-asset strategies experienced net
outflows of £3.5 billion (2024: net outflows of
£10.3 billion). AUM increased to £102.4
billion (2024: £83.7 billion) due to markets
and investment performance, and the
transfer of assets managed on behalf of
SPW from the Wealth Management
segment. Net operating revenue totalled
£234.5 million, up from £222.2 million, while
the net operating revenue margin excluding
performance feesreduced to 24 basis points
(2024: 25 basis points).
Core solutions recorded significant net
inflows of £8.1 billion (2024: net inflows of
£5.5 billion). This strong flow activity was
underpinned by continued success in
partnering with pension clients on
outsourced CIO and fiduciary management
solutions. AUM increased to £118.6 billion,
up from £109.1 billion last year. Net
operating revenue rose to £66.5 million
compared to £61.4 million previously. The
net operating revenue margin excluding
performance fees was stable at 6 basis
points (2024: 6 basis points).
Schroders Capital
Schroders Capital generated gross
fundraising of £10.9 billion (2024: £10.8
billion) with good contributions across all
asset class pillars. Non-fee-earning dry
powder amounted to £4.9 billion at year end
(2024: £4.2 billion).
Excluding flows from FGC, NNB was £4.1
billion (2024: £4.5 billion), contributing to an
increase in AUM to £72.6 billion (2024: £70.1
billion). Net operating revenue, inclusive of
performance fees and carried interest, rose
to £438.7 million (2024: £426.7 million). The
underlying net operating revenue margin,
excluding performance-related items,
remained at 57 basis points (2024: 57 basis
points).
Asset Management joint ventures and
associates
Our total share of profits from Asset
Management joint ventures and associates
was £30.3 million (2024: £37.1 million),
impacted by softer results from our Fund
Management Company venture with Bank of
Communications in China due to client
redemptions.
Asset Management joint ventures and
associates experienced net outflows of £5.6
billion (2024: inflows of £5.7 billion),
contributing to a 7% decrease in AUM,
closing the period at £94.1 billion (2024:
£101.2 billion).
Wealth Management segment
Wealth Management generated total net
new business of £3.4 billion (2024: net
inflows of £6.3 billion), with a strong
contribution from UK private clients within
Cazenove Capital.
The sale of our interest in SPW impacted
Wealth Management AUM in two ways.
Firstly, the £16.2 billion of assets we continue
to manage on behalf of SPW have been
transferred to the Asset Management
segment. Secondly, the business no longer
represents a joint venture of the Group, and
so its assets no longer form part of our
AUM. Reflecting these changes, Wealth
Management AUM excluding joint ventures
ended the periodat £123.9 billion
(2024:£126.8 billion). Net operating revenue
was £537.7 million (2024: £491.0 million).
Adjusted net operating income increased
11% to £559.4 million (2024: £502.4 million).
The net operating revenue margin
excluding performance fees and network
adviser fees remained at 40 basis points
(2024: 40 basis points).
Our adjusted share of profits from Wealth
Management joint ventures and associates
contributed £19.0 million (2024: £10.6
million) with the increase principally driven
by improved efficiencies and reduced third-
party costs in SPW prior to its sale.
Adjusted operating expenses were £361.1
million (2024: £325.6 million), resulting in
adjusted operating profit for the segment of
£198.3 million (2024: £176.8 million).
Financial strength and liquidity
Our year-end capital position remains
strong, with a regulatory capital surplus of
£1,190 million (2024: £919 million).
TheGroup’s net assets were £4.5 billion
(2024: £4.5 billion).
The different forms of business that we
conduct affect our total assets and liquidity.
Generally, assets that aremanaged by the
Group on behalf of clients are not included
in the consolidated statement of financial
position. There are, however, certain
exceptions to this.
Within Asset Management, certain clients
invest through life insurance policies that
aremanaged by our Life Company, Schroder
Pension Management Limited. The assets
backing these policies are held by the Life
Company and are therefore included in the
consolidated statement of financial position
along with a matching policyholder liability.
Additionally, we consolidate certain pooled
funds which we are deemed to control
under accounting standards.
Within Wealth Management, the subsidiaries
that provide banking services are legally
responsible for the banking assets and
liabilities. They are therefore included in the
consolidated statement of financial position.
The assets are managed to earn a net
interest margin while having regard for
theliquidity demands that may arise
fromclients.
After adjusting for these structures, the
Group’s total assets comprised cash and
other financial assets of £2.2 billion (2024:
£2.0 billion) and other assets of £3.9 billion
(2024: £4.2 billion).
Financial assets include seed investments and
co-investments. During 2025,
seed investments increased to £336 million
(2024: £297 million) and co-investments
increased to £167 million (2024: £155 million).
Other assets include goodwill and intangible
assets, which are inadmissible for regulatory
capital purposes, and assets that support
our ongoing operating activities in the form
of working capital.
Other liabilities principally comprise trade
and other payables, lease liabilities and the
Group’s Tier 2 notes.
The Group has a committed revolving
creditfacility of £850.0 million provided by
ten banks that matures in November 2029
andwhich was unutilised at year end
(2024: unutilised).
Strategic report Governance Financial statements Shareholder and sustainability information
Business and financial review continued
19 Schroders Annual Report and Accounts 2025
Sustainability is embedded in our
business model and strategy
We help our clients manage risk and meet their investment and sustainability objectives by
connecting environmental and social change to investment opportunities.
Sustainability is a fundamental part of our active management commitment and long-term perspective. Through insight, proprietary
tools, stewardship and innovative solutions, we integrate sustainability considerations into our investment processes
1
to help achieve
our clients’ performance objectives. We also apply similar principles to our own business.
The sustainability landscape in 2025
The political backdrop to sustainable investment has changed markedly over the last few years. During 2025, the US announced its
withdrawal from the Paris Agreement, ended all federal diversity, equity and inclusion programmes and rolled back a wide range of
environmental regulations. The EU pulled back the scope of planned sustainability reporting requirements and announced delays to
several planned new regulations. Changing policy direction led some companies to pull back the extent or communication of their
sustainability ambitions and to limit the number of new commitments.
This backdrop highlights the importance of pragmatism. At the same time, growing evidence of structural impacts from social and
environmental change reinforces the importance of our continued focus. During 2025, Arctic sea ice coverage hit new lows, the costs of
extreme weather events reached record levels and the number of armed conflicts reached a 50-year high.
We continue to believe that our commitment to examining and preparing for environmental and social changes provides a competitive
advantage that is valued by many of our clients. More than half of the world’s largest asset owners have made public sustainability
commitments and many have prioritised sustainability-related objectives, which we are well positioned to help them achieve.
Client-led
Sustainability is an important focus for
many of our clients and our priority is to
support their objectives. We discussed
sustainability-related topics in 956
meetings with clients during 2025.
We were entrusted with over £7.8
billion in new sustainability-focused
AUM during 2025.
Active management
For more than five years, we have
considered relevant sustainability
factors, and integrated that analysis into
investment decisions, across the
portfolios we manage.
1
That integration is supported by the
suite of proprietary tools and models
we have developed, including
CONTEXT
TM
, SustainEx
TM
, ThemEx
TM
and
climate-focused tools.
Active owners
Our Engagement Blueprint details the
areas we prioritise in our sustainability-
related engagement and the steps
wefollow.
We voted at the shareholder meetings
of 7,042 listed companies in line with
the voting principles and policy we
havedeveloped.
AUM in sustainability-focused
portfolios
£42.9bn
2024: £38.6bn
SustainEx
TM
scores
beating benchmark
91%
2024: 90%
Companies engaged on
sustainability topics
588
2024: 908
1. This is the process of identifying, analysing and incorporating relevant and material environmental, social or governance factors (including climate change) into
investment decisions. Such factors may not be the primary factors that influence an investment decision.
Strategic report Governance Financial statements Shareholder and sustainability information
Sustainability at Schroders
20 Schroders Annual Report and Accounts 2025
Inspire
We apply our philosophy of long-term
sustainability to the way we manage our
own business
We aim to lead by example through our
own corporate actions, ensuring
accountability to all our stakeholders.
Influence
We use our influence as an active owner
We engage management teams and use
voting to drive change that we believe will
protect and grow the value of our clients’
assets and investments.
Insights
We understand our clients’ needs
andapply evidence and expertise
withconviction
Data and analysis, rather than opinion, help
us stand apart from peers or convention.
Innovate
We create innovative products
andsolutions
We help clients achieve both their
performance and sustainability objectives.
Helping our clients navigate complexity
We focus on the long-term sustainability trends we believe will be most important to our clients and
our ability to deliver the returns and outcomes they expect.
Climate
The impacts of climate change are already
being felt in increased physical damage and
regulatory intervention. To help manage the
risks and identify the opportunities those
changes present, we have invested in
research and proprietary analysis.
Investing in companies and assets which are
themselves transitioning towards lower-
carbon business models has delivered
stronger returns than focusing on
companies with already-low emissions.
Identifying those companies relies on a
combination of the extensive quantitative
modelling we have developed, the
fundamental insights and judgements of our
investment teams and the encouragement
we can provide through engagement.
During 2025, we engaged with 381
companies on climate-related topics and
voted on 93 climate-related resolutions at
company meetings. Similar principles apply
in our engagement with external managers
and investments where we do not have
voting rights.
We publicly track the results of our climate
strategy using the CDP-WWF Temperature
Scoring Methodology. This translates
companies’ decarbonisation targets into a
long-term temperature rise, reflecting the
outcome if the global economy
decarbonised at that pace. Our latest score
is 2.4°C, reflecting the commitments of the
companies we invest in, our engagement
efforts and our investment decisions.
Temperature alignment
2.4°C
2024: 2.4°C
With policy progress to date falling short of
the levels needed to limit temperature rises
to the goals detailed in the Paris Agreement,
we are increasingly focusing on assessing
the risks and opportunities physical climate
risks present to the investments we manage,
as well as the opportunities stemming from
the need for greater investment in resilience.
While integration of material sustainability
analysis into investment decisions has been a
priority across Schroders for several years, we
also apply our expertise to develop products
and solutions to help our clients meet their
own sustainability objectives, including
decarbonisation goals. We have identified
opportunities for innovative solutions in both
public and private markets, such as a fund
launched by BlueOrchard offering climate
finance to small and medium-sized
enterprises in emerging markets.
We have made significant changes to our
own business over recent years, including
the installation of a solar photovoltaic panel
system at the Schroders Campus in
Horsham and reaching 100% renewable
electricity use globally in 2025.
We made CDP’s 2025 Corporate A List for
climate change (based on 2024 data),
meaning we were among the top 4% of
nearly 20,000 companies scored. Achieving
an A score reflects not just disclosure, but
credible, verified action across governance,
targets and value chains.
Our climate-related financial disclosures can
be found on pages 185 to 201.
CDP climate change rating
A
2024: A-
Emerging issues
While climate change is a key focus for many
policymakers, portfolio companies and
clients, sustainability covers a wide range of
topics to which we apply a similarly
thoughtful lens.
Nature loss is a growing challenge and focus
for our clients. We have developed
NatCapEx
TM
– a model to quantify
companies’ nature-related impacts and
exposures – both to assess portfolio risks
and opportunities and to support our clients
with specific nature-related strategies. We
apply similar analysis to our investments in
private markets, albeit constrained by the
availability of data.
In 2025, we published a Group Nature
Report, detailing our commitment to
manage nature-related risks actively and
meet our clients’ investment expectations in
this area. The report follows the
recommendations of the Taskforce on
Nature-related Disclosures (TNFD). The
report is available at www.schroders.com/
nature-report
Taskforce on Nature-related Financial
Disclosures (TNFD)
Early adopter
Human capital management is a key
competitive differentiator in global
industries; we have invested in developing
analysis to identify those companies with
stronger practices and performances in that
area, which has proven valuable in
supporting our clients through collaborative
research and bespoke analysis.
Human rights and modern slavery have
become a bigger focus as consumer
awareness has grown, and regulators
havebecome more focused on the impacts
of human rights failures. Respecting human
rights and preventing violations such
asmodern slavery is a priority in both
theinvestments we manage and our
ownbusiness.
To help support that priority, we apply
consistent principles to identify risks within
portfolios and among our suppliers and
partners. Human rights is one of the six
active ownership priorities detailed in our
Engagement Blueprint. We also have
mandatory annual modern slavery
e-learning training for all employees
1
.
Our Modern Slavery Statement is available at
www.schroders.com/modern-slavery-
statement
Corporate governance
Corporate governance has been a long-
standing focus, since hiring our first
governance-focused analyst over 25 years
ago. We continue to bring thoughtful
principles and investment experience to our
corporate governance policies.
During 2025, we published research
challenging conventional board tenure
norms and examining the effectiveness of
engagement on board structures. We were
grateful to convene three Director Dialogue
meetings to discuss governance-related
issues with directors of UK-listed companies.
Looking forward
The sustainable investment landscape is
changing. Political pressures are slowing
thepace of regulatory change, and in
somecases reversing governments’
historical priorities. On the other hand,
tangible evidence of the effects of
environmental andsocial change is growing
stronger. Increasingly, our clients are
looking for pragmatic, thoughtful and
investment-centric approaches to navigating
that backdrop.
We are evolving and directing our
capabilities on supporting our clients to
deliver those objectives. By focusing on
transition and change, and leveraging our
analytical capabilities and active ownership,
we believe we can help clients benefit from
the value which can be unlocked as
companies and assets improve across a
range of sustainability-related areas.
1. Excluding Benchmark Capital (and subsidiaries) and Schroders Greencoat.
Strategic report Governance Financial statements Shareholder and sustainability information
Sustainability at Schroders continued
21 Schroders Annual Report and Accounts 2025
We aim to lead by example
We run our business with purpose and integrity, demonstrating high standards of responsible
business practices.
Our approach in our own business
Responsible business practices are essential to sustaining long-term value for all our stakeholders and
strengthening trust in our brand. By embedding strong governance, environmental stewardship and
social responsibility into our operations, we help to reduce risk, build resilience and contribute positively
tolocal communities and wider society.
MSCI ESG Rating
AAA
2024: AAA
Our focus on materiality
We assess the environmental and social
risks and opportunities that could have
a significant impact on our investments’
or our business’ long-term value. Our
latest assessment has highlighted that
the following sustainability-related
topics are the most financially material
to our clients and our business. These
priorities will be reviewed periodically to
ensure we are responding to our
stakeholders’ needs and expectations.
We focus our efforts on these issues,
and on areas where we are in a strong
position to add value.
Climate
Our people
Business conduct
Product transparency
Our Sustainability and Impact Product
Framework offers our clients a variety
of ways to achieve their specific
sustainability goals. Our TCFD product
reports are available at
www.schroders.com/tcfd-product-reports
Corporate sustainability framework
Our corporate sustainability framework outlines our priorities for managing
sustainability-related issues for our business. The “Non-financial and sustainability
information statement” on the right signposts to further information on these topics.
People Planet Collective action
Our goals We aim to foster an
inclusive, supportive
environment where
our people can
achieve their
fullpotential.
We are transitioning to
net zero across our
operations, reducing
our emissions in
linewith our science-
based targets.
We create positive
impact by inspiring
collective action for
charitable causes in
our communities
around the world.
The
foundations
Responsible business practices
Including governance, anti-bribery and corruption, human rights and
supply chain management.
Industry engagement
As a large, global and active investment
manager we have an opportunity to
engagewith policymakers and industry
groups to share our views and help
encourage changes which support our
objectives and industry.
We believe our experience and perspective
can provide valuable insight and we
regularly respond to industry consultations
and opportunities to engage with
policymakers and regulators. We publish
these responses on our website at
www.schroders.com/consultations
We participate in a range of sustainability-
related initiatives where we believe their
aims align with ours and where involvement
brings clear benefits to our clients and our
business. Currently, we actively participate in
the Principles for Responsible Investment,
Institutional Investors Group on Climate
Change, Asia Investor Group on Climate
Change and Global Impact Investing
Network, among others.
Strategic report Governance Financial statements Shareholder and sustainability information
Sustainability at Schroders continued
22 Schroders Annual Report and Accounts 2025
Non-financial and sustainability
information statement
In accordance with sections 414CA and
414CB of the Companies Act 2006, which
outline requirements for non-financial
reporting, the table below is intended to
indicate where in the Annual Report our
stakeholders can find the content they
need to understand our development,
performance and position regarding
non-financial and sustainability matters,
including environmental issues, our
employees, social matters, respect for
human rights, and anti-corruption and
anti-bribery efforts. Non-financial key
performance indicators can be found
throughout the below-referenced
sections and on pages 2 to 3.
Description of business model
Pages 10 to 11
Description of principal risks,
impacts on the business and
riskmitigation
Pages 25 to 31
Sustainability at Schroders
Pages 20 to 22
Governing our non-financial
information
Page 202
Climate and environment
Climate-related financial disclosures,
prepared in accordance with the
Companies (Strategic Report) (Climate-
related Financial Disclosures)
Regulations 2022 and FCA UK Listing
Rule 6.6.6R(8).
Pages 20 to 22 and 185 to 201
Our people
Pages 23 to 24, 52, 61 to 71
Social matters
Pages 23 to 24 and 32 to 33
Human rights
Pages 20 to 22 and 32 to 33
Anti-bribery and anti-corruption
Pages 25 to 31 and 53 to 60
Our people, our edge
Our people’s expertise, our trusted brand, and our focus on client-driven innovation give us an edge
and enable us to deliver effective investment solutions.
Our purpose is clear: creating prosperity
together. Our people bring this to life
through their expertise and commitment.
United by this purpose, our teams deliver
trusted advice, drive innovation and seek
toachieve investment outcomes that
createlasting value for clients, communities
and shareholders.
We are committed to being an employer of
choice. We aim to provide meaningful
opportunities for growth and foster an
inclusive, supportive environment where our
people can achieve their full potential. Our
focus is on building enterprise leadership
capabilities at every level, encouraging
engagement and pride in what we do, and
rewarding performance excellence.
Our employee sentiment scores remained
robust despite change programmes.
Measuring sentiment and listening to our
people are fundamental to maintaining a
resilient and motivated workforce –
especially during periods of transformation.
In addition to continuous informal
engagements, our global pulse survey and
Global Employee Forum ensure our people’s
voices are heard, providing leadership with
direct insights into emerging issues and
innovative ideas.
Driven by purpose, defined by pride
In 2025, the Board introduced a firm-wide
scorecard to align employee goals with our
purpose to drive both business success and
personal growth. Clear and transparent
expectations empower our people to deliver
for clients and shareholders, and strive for
excellence together. For more information
on our strategic priorities, progress, and
future focus, see pages 14 and 15.
Pride in working for Schroders is a central
measure of how our people experience our
purpose in practice. Our global pulse survey
shows that 77% of employees are proud to
work here.
This year, we launched the Global Inclusion
Forum to strengthen our commitment to
amplifying diverse perspectives. Feedback
from our people shows that 80% agree
Schroders is committed to inclusion and
diversity. These feedback loops enable
employee experience to shape business
decisions and ongoing progress.
Details of our Board-approved inclusion and
diversity aspirations and progress can be
found on page 52. Workforce data including a
gender breakdown of employees, senior
managers and subsidiary board members, as
required by Section 414C(8) of the Companies
Act 2006 can be found on page 92.
Leading with vision,
accelerating growth
Our success in a fast-changing industry
comes from the vision, expertise and
adaptability of our people. By developing
leadership at every level, our people are
empowered and accountable for achieving
measurable outcomes defined by our firm-
wide scorecard to align employee goals with
the Group strategy, driving business success
and personal growth.
In 2025, we looked to evolve our culture by
launching Schroders Behaviours – practical
actions that bring our core values of
excellence, innovation, teamwork, passion
and integrity into everyday work. While our
values define what we stand for, these
behaviours set clear expectations and help
our people apply our values in practice to
serve our clients better.
Our early careers programmes and talent
initiatives like “Spotlight” develop future
leaders by building essential skills and global
connections, creating strong talent pipelines.
Internal mobility is central to our approach,
with 29% of vacancies filled by existing
colleagues, demonstrating our commitment
to develop talent from within.
To widen access to career opportunities,
wehave introduced new approaches to
recruitment and job design that support
greater inclusion and help us attract a
broader range of talent. This enables us
toreflect the clients and communities we
serve better.
As an equal opportunities employer,
Schroders gives fair consideration to all
applicants, including those with disabilities.
We support colleagues facing health or
capability challenges with reasonable
adjustments, retraining or redeployment.
More information on workforce diversity and
representation – including our latest gender
pay gap reporting – can be found in our
Reporting Centre (www.schroders.com/
reportingcentre).
Schroders recognised for
gender balance: Best Overall,
Balance in Business Awards
2025
We are proud to have been named Best
Overall at the Balance in Business
Awards 2025, recognising our ongoing
commitment to gender balance.
Our commitment to inclusion
80%
The percentage of employees who
agree that we are committed to
fostering an inclusive and diverse
culture in the workplace. Whilst results
have softened slightly, we remain
committed to our 2030 inclusion and
diversity aspirations. More information
is available on page 92.
2024: 89%
Retention of highly rated
employees
95%
Retention of highly rated employees
as at 31 December 2025. By nurturing
talent at every level and supporting
our high-performing workforce,
wesharpen our active edge and
create lasting value for our clients
andour people.
2024: 94%
Transforming with confidence,
supporting wellbeing
Throughout 2025, our business has
undergone significant transformation. We
recognise that these changes have involved
difficult decisions, including some of our
people leaving the business. We have
managed these transitions carefully, with a
strong focus on supporting those affected
and investing in the ongoing growth and
wellbeing of our people.
As we focus on simplifying our operations,
scaling our capabilities and delivering for
clients, it is the adaptability and resilience of
our people that drive our progress. Our
People and Culture team, alongside our
leadership and wellbeing specialists, remain
committed to providing clear and practical
guidance. We work to make support
resources visible and accessible to everyone.
This supportive framework enables our
people to thrive during change, encouraging
innovation and learning across the business.
Strategic report Governance Financial statements Shareholder and sustainability information
People and community
23 Schroders Annual Report and Accounts 2025
We treat mental and physical health as
equally important. Our holistic approach
combines data-driven insights and
employeefeedback to ensure wellbeing
programmes continually evolve to meet our
people's needs.
Where teams engage, we see measurable
improvements in sentiment, behaviours and
performance – with an average net
promoter score of +70 – and in our latest
pulse survey 70% of employees responded
favourably to the statement “Schroders
cares about my health and wellbeing”.
By closely monitoring engagement with
support services and reviewing key
workforce trends, we can identify needs
early and offer timely assistance.
Confidential support is always available
through our global Employee
AssistanceProgramme, while our
progressive policies, including for mental
health and menopause, enable colleagues to
have the workplace adaptations they need
throughout their careers.
People at Schroders trust and
respect each other
76%
The percentage of employees who
agree there is a culture of trust and
respect, reflecting a strong and
positive workplace environment.
Despite a decrease from 2024, this
remains above global benchmarks,
which is notable as we navigate a
period of transformation
2024: 87%
Rewarding performance, inspiring
achievement
Our approach to pay and reward is
intentional, transparent and closely linked
toshort- and long-term business
performance. Our Fair Pay for Performance
framework aims to ensure reward decisions
are balanced, fair and drive high
performance. We consider annual
performance, market context, peer
comparisons and individual achievement,
including skills and future potential.
We offer a flexible range of benefits tailored
to local markets and individual needs, with
inclusive policies to support our people at
every stage of their career.
In 2025, we performed a detailed firm-wide
salary review and benchmarking process
across the Group, in consultation with an
employee advisory group that included
individuals from a range of functions, levels
and regions across the business. For more
details, see the Remuneration Report on
page 63.
Supporting environmental and
social causes where we operate
Investing in our communities and
supporting charitable causes demonstrates
how we act with purpose. This fosters a
sense of pride and belonging among
ourpeople and creates a positive impact
onsociety.
Our Global Charity Committee oversees our
approach and reports to our Group
Sustainability and Impact Committee.
Regional committees, champions and
employee resource groups help mobilise
and co-ordinate local activities, supporting
collective action across our global workforce.
Corporate giving
In 2025, we committed £5.5 million
1
to
charitable causes around the world (2024:
£5.9 million), £2.1 million of which was
outside the UK (2024: £1.2 million).
Charity partnerships
Our charity partnerships aim to improve
equality and protect the planet. Most
charities are selected at a regional or
country level, enabling our people to
connect with local charities and causes.
These partnerships can offer opportunities
for our people to contribute to positive
change in areas such as mental health and
wellbeing, education, inclusion, social
mobility and the environment.
In 2025 we launched a new global
partnership with Fauna & Flora, an
international wildlife conservation charity.
Through the Schroders “Better Futures
Fund”, we are committing £1 million per year
for three years to support nature, people
and climate. We have selected five projects
around the world that protect habitats and
empower local communities.
Donations committed to charitable
causes
1
£5.5 million
2024: £5.9 million
Employee giving
We encourage employees to give their time
and develop their skills by providing 16
hours of paid volunteer time each year. We
promote a range of opportunities to suit
different skills and time commitments. In
2025, our employees recorded more than
8,200 hours of volunteering during office
hours, representing a 24% increase from
2024. This equates to a monetary value of
just over £1,000,000
2
.
We also offer matching schemes to support
fundraising both inside and outside the
office, as well as personal payroll giving.
These initiatives amplify our people’s efforts
in fundraising and donating to causes that
matter to them.
UK Dormant Assets Scheme
In 2025, we were among the first
participants to join the UK Dormant Assets
Scheme, which has now expanded into the
investments and wealth management
sector. The Scheme allows dormant assets
to be channelled into environmental and
social causes, while safeguarding the right of
customers to reclaim their funds in full at
any point.
“As an active manager,
our people are
fundamental to
everything we do. Their
expertise, diversity of
thought, and
collaborative spirit drive
our ability to deliver
exceptional outcomes for
our clients.”
Neil Tomlinson
Group General Counsel and Interim
Chief People Officer
1. We have included charitable donations, memberships and sponsorships as per the Business for Societal Impact (B4SI) methodology.
2. Calculated using the B4SI methodology.
Strategic report Governance Financial statements Shareholder and sustainability information
People and community continued
24 Schroders Annual Report and Accounts 2025
Our Risk
Management
framework
Our Risk Management framework has played a pivotal role in
enabling us to manage risks during the current period of
business transformation. It has allowed us to identify, assess
and escalate risks effectively, while maintaining operational
resilience and regulatory compliance throughout change. By
maintaining robust internal controls and a proactive risk
culture, we are well positioned to pursue our strategic
objectives with confidence, protecting our reputation and
delivering sustainable performance in a dynamic environment.
Managing risks
The Board is accountable for the maintenance of an effective system
of internal control and risk management. It assesses the most
significant risks facing the business, using quantitative exposure
measures, such as stress tests, where appropriate, to understand
the potential impact on the business.
Non-executive oversight of the Risk Management framework with
respect to standards of integrity, risk management and internal
control is exercised through the Audit and Risk Committee.
The Group Chief Executive is responsible for the firm’s Risk and
Control framework. Independent monitoring and reporting of risks
and controls is undertaken by the second line of defence.
Risk management is embedded in all areas of the Group. The Group
Chief Executive, the Chief Risk Officer and the Group Executive
Committee (Group ExCo), as the principal advisory committee to
theGroup Chief Executive, regularly review the key risks we face.
Members of the Group ExCo have risk management responsibility
for their respective business areas. Legal entity boards are
responsible for managing risks in line with regulatory and
legalrequirements.
The Chief Risk Officer chairs the Group Risk Committee (GRC), which
meets five times per year and is attended by senior management
across the firm. The GRC reviews and monitors the adequacy and
effectiveness of the Group’s Risk Management framework, including
relevant policies and limits. It also reviews emerging risks and
changes to existing risks.
The GRC is supported by a number of sub-committees, including the
Group Conflicts Committee, the Financial Crime Committee and the
Information Security Risk Oversight Committee. These sub-
committees review and challenge risks and report significant risk
matters to the GRC.
Lines of defence
The first line of defence in managing and mitigating risk consists of
the business functions and line managers across the Group. Heads
of each function take the lead role in identifying risks and
implementing and maintaining appropriate controls to manage
these risks. This is supported by our Risk and Control Assessment
(RCA) process.
This year we changed our definition of the second line of defence,
limiting this to our Risk and Compliance function. Other corporate
functions such as People and Culture, Legal and Governance, Tax
and Finance have moved to the first line. This change reflects Risk
and Compliance being the only function that acts independently to
oversee all the Group’s key risks. The other corporate functions will
continue to oversee specific risks relating to their disciplines. The
compliance assurance programme reviews the effective operation of
relevant key processes against regulatory requirements.
Internal Audit provides independent challenge and assurance over
the Group’s control environment, risk management and governance
arrangements implemented by management, and forms the third
line of defence. The internal audit programme includes regular
assessments of the adequacy and effectiveness of these
arrangements, together with recommendations for improvement.
The team also carries out thematic compliance monitoring work.
We maintain comprehensive insurance cover, with a broad range of
policies covering a number of insurable events.
Managing risks during transformation
We are committed to maintaining stability in the organisation,
and for our clients, by effectively managing the risks associated
with transformation. We have a comprehensive governance
framework providing strong oversight, prioritisation and
accountability across all strategic pillars.
Managing people and capacity risk is an ongoing priority,
particularly regarding the retention of critical employees and
skills during periods of significant change, alongside business-
as-usual activity. We are providing targeted support and clear,
transparent communication to our teams to ensure continuity
and retain key expertise, whilst also fostering a strong
understanding and engagement with the rationale and
objectives underpinning our transformation.
Second-line oversight is being provided by Risk and Compliance
who are actively engaged in providing advice and guidance on
identifying and managing the risks associated with high-priority
initiatives. This helps ensure critical risks are escalated and
managed appropriately through the relevant governance
forums. Third-line oversight is being provided through a series
of audits.
At the heart of our strategy and decision-making are clients and
stakeholders. We focus on maintaining strong client
communications, addressing client questions and fully
understanding their requirements.
Strategic report Governance Financial statements Shareholder and sustainability information
Risk management
25 Schroders Annual Report and Accounts 2025
Areas of focus for
risk management
Supporting Public Markets, Schroders Capital and
Wealth Management
We have continued to evolve and align our Risk Management
framework to meet the needs of the business as it develops. We
have updated our Liquidity Risk framework to support robust
liquidity risk oversight of open-ended private market vehicles.
Enhancements to the assessment of public market fund liquidity
have continued, for example via tailored liquidity stress testing.
Transparency and oversight of risks associated with Group-wide
cross-investments (e.g. public market funds holding units in private
market funds) have been strengthened.
We have worked closely with the business to realign our RCAs to our
new business structures. The realignment enables risks to be
appropriately identified, mitigated, monitored and managed with
accountability and transparency. RCAs remain a core part of our
Operational Risk Management framework. We have used our RCAs
to help inform our approach to the new material controls
requirements in the revised UK Corporate Governance Code, which
will take effect at the end of 2026.
Our Risk and Compliance function is committed to continual
evolution. As part of our transformation initiatives, we have sought
internal and external input on how we can continue to make
enhancements. We plan to review the operating model across our
first and second lines of defence, and adapt our Risk Management
framework based on advice received. This will enable us to continue
to support the business in achieving its strategic objectives.
Counterparty assessment
We have enhanced the Counterparty Assessment framework
through the development of an internal rating model that integrates
quantitative and qualitative methodologies to provide a robust,
forward-looking assessment of creditworthiness. The model will be
fully aligned with Basel 3.1 (as required) and will inform both
onboarding and renewal processes by benchmarking external credit
ratings against our internal model. Outputs from the model will
enable internal ratings to be prioritised when appropriate. Regular
working groups facilitate continuous improvement, underscoring
our commitment to rigorous, data-driven credit risk management.
Cyber risk
The Board receives regular information from management on key
technology projects and cyber security trends, and throughout 2025
has received updates from the Chief Information Security Officer.
The Information Security Risk Oversight Committee oversees the
management of cyber risk and in 2025 sponsored an independent
information security review undertaken by a third-party consultancy.
This review highlighted the progress that has been made in our
cyber security capabilities over the last three years.
The Group-wide multi-year programme is ongoing and continues to
enhance our cyber defences. In parallel we run an ongoing
programme of cyber testing, with each test simulating a cyber attack.
These tests enable us to assess our progress continually and identify
areas to prioritise.
Attacks by organised crime groups (for example targeted
ransomware) remain a risk for all financial services organisations.
Operational resilience
In an increasingly complex and interconnected environment, our
ability to anticipate, withstand and recover from operational
disruptions is crucial for our clients, our partners and regulators. We
have made significant progress in advancing our Operational
Resilience framework, meeting the compliance deadlines set by the
PRA, FCA, and the Digital Operational Resilience Act (DORA) – the
European regulatory standard. However, true resilience requires
continuous improvement. Accordingly, we are committed to further
strengthening our resilience capabilities through an ongoing
programme of severe but plausible scenario testing. These
comprehensive exercises involve collaboration with critical third
parties and include table-top exercises and simulation tests. Through
this proactive approach, we aim to identify areas for enhancement
and respond effectively to emerging risks, thereby safeguarding the
interests of all our stakeholders.
Making use of artificial intelligence (AI) in Risk
and Compliance
We have developed a Genie “persona prompt” to review our
RCAs. Genie is an internal AI assistant. A '’persona prompt” is a
set of instructions provided to an AI tool enabling it to perform
tasks in line with a specific character or role. Our Genie persona
highlights areas within RCAs that may benefit from further
second-line review and challenge, enhancing the consistency of
our approach.
To enhance our approach to credit risk and to deliver cost
savings, we have introduced an internally developed AI solution
this year, replacing an external provider. Our new Company
News Summaries tool strengthens our ongoing monitoring, for
example by highlighting negative news on counterparties. It is
now fully embedded in our dashboards and integrated into
credit risk analysts’ daily workflows. The tool continues to be
used alongside a range of established inputs to ensure robust
risk oversight and timely responses to emerging risks.
Our Responsible AI Committee provides guidance on and
oversight of our use of the technology across the firm. Given the
continued importance of controlling AI risks, and to provide a
clear escalation route to the most senior individuals in the firm,
the Responsible AI Committee has become a sub-committee of
Strategic report Governance Financial statements Shareholder and sustainability information
Risk management continued
26 Schroders Annual Report and Accounts 2025
Risk assessment
Market conditions over the last few years have demonstrated
the importance of having robust emerging risk processes.
Emerging risks and changes to existing risks are identified
throughout the year by the first line of defence or through the
horizon scanning and monitoring activities performed by the second
line. They are reviewed and discussed at relevant risk committees
(for example, the GRC and its sub-committees or the Asset Class Risk
and Performance committees). Those relevant to specific entities are
discussed at entity boards and those affecting the Schroders Group
are considered by the Audit and Risk Committee and Board.
Periodically, we also complete a formal assessment of the risks faced
by our business using a top–down and bottom–up approach.
The top–down approach uses analysis from the Risk team and
discussions with senior management and subject-matter experts
around the Group. Existing risks and emerging risk trends are
reviewed against the current internal and external environment,
geopolitical factors, market conditions, changing client demand and
regulatory sentiment. Each risk is then analysed to assess how it can
be managed and mitigated.
The bottom–up approach uses the results from our RCAs, trends
inrisk events and high-impact issues logged in our operational
riskdatabase.
The results of these assessments are used to inform our key risks,
which are presented to the GRC prior to the Audit and Risk
Committee and Board.
The Board has ultimate accountability for identifying, managing and
monitoring the firm’s principal risks, ensuring these are aligned with
Schroders’ risk appetite and strategic objectives. To assist the Board,
the Audit and Risk Committee reviews the Group’s key risks and
proposed principal risk disclosures. It monitors these risks
throughout the year by reviewing a quarterly dashboard of metrics
and other papers covering a range of risk topics. The Remuneration
Committee is responsible for ensuring that all relevant risk and
conduct considerations have been taken into account as part of
determining remuneration policies and outcomes, and therefore
supports the Audit and Risk Committee and Board in providing
oversight of the conduct aspects of People and Conduct risk.
We have reviewed the list of key risks and identified a sub-set that
represents the Group’s principal risks. These are the principal risks
most likely to impact our strategy, business model, external
reputation and future performance. We have consolidated several
risks that were previously reported separately, recognising that they
related to similar factors. This enables us to provide stakeholders
with a more integrated view of the risks most material to the Group.
Specifically, fee attrition, changing investor requirements and
product strategy and management risk have been incorporated
within business model disruption risk. Market returns has been
integrated into financial risk. Financial crime risk has been included
within regulatory risk, and conduct risk has been moved within
people risk. Third party risk has been disclosed as a new principal
risk this year as a result of our increased use of outsourcing.
Reputational risk has been removed given it arises as a consequence
of other principal risks.
The numeric icons are for presentational purposes only and do not
indicate a rank. The risks represent our exposure after mitigating
controls are applied. Trend arrows are included to show our
assessment of how our risk profile has changed since last year.
Commentary to explain the changes can be found on pages 28 to 31.
Principal risks 2025 2024
Business model disruption
Financial risk
Information security and technology risk
Investment performance risk
Operational process risk
People and conduct risk
* *
Regulatory risk
Sustainability risk including climate change
Third party risk N/A
Transformation risk
* *
* We reported these risks as having increased in the 2024 Annual Report and
Accounts because, whilst they were stable in 2024, they had increased
between 31 Dec 2024 and March 2025 when the report was published.
Movement versus prior-year
position
Categories of risk
Increased
l
Strategic risk
Remained the same
l
Business risk
Decreased
l
Operational risk
Our strategy and risk appetite
Our strategy is set with an understanding of the strategic risks
inherent in the environment in which we operate. There are set out
in the table above and are described in more detail on pages 28 to
31. By closely analysing external factors, our Group ExCo is able to
design a strategy that is robust and adaptable. Our business and
operational risks (also noted above) are the risks that could impact
the execution of our strategic objectives. For these risks, we develop
risk appetite statements that define the levels of risk the Board is
willing to accept in the pursuit of the Group’s strategy.
Our risk appetite statements are reviewed and approved annually.
We have a Group-level risk appetite statement and a number of
entity-level statements. Each risk appetite statement is supported
bya number of metrics and tolerances to enable us to provide an
assessment of risk position versus appetite. We monitor these
metrics on a quarterly basis and review and update our risk
appetitestatements at least annually, or following periods of
organisational change.
We confirm that the Group has an effective risk and controls
process, supported by an appropriate governance framework.
Strategic report Governance Financial statements Shareholder and sustainability information
Risk management continued
27 Schroders Annual Report and Accounts 2025
Description How we manage this
Business model disruption
Our business model faces potential disruption from a range of external
factors. Technological advancements, particularly the rapid evolution of
AI, present both challenges and opportunities, not only for our firm but
also for the broader asset management industry, our clients’ businesses,
and the industries in which they operate. At the same time, the broader
environment continues to shift through trends such as product
innovation, changes in market participation, increasing protectionism,
and the forces of deglobalisation.
Client demands are evolving rapidly. There is growing pressure on
traditional active management fees, driven by increased competition from
lower-cost passive products and cyclical demand for lower-margin
strategies. As clients increasingly expect more value at lower cost, the
importance of innovative and competitive product offerings is
heightened. Advancements in client distribution technology are also
facilitating changes in how clients wish to access investment services,
requiring us to ensure that our platform and product range remain
relevant and responsive to their needs.
Further, there is a risk that intermediaries may capture a greater share of
revenue streams, which could erode our margins if we do not respond
effectively. If we fail to adapt or extend our business model and product
suite in response to these shifts, we risk not meeting our clients’ evolving
investment objectives or maintaining our competitive position, potentially
leading to a reduction in assets under management.
In addition, ongoing geopolitical uncertainty, including the imposition of
sanctions and the outbreak of conflicts, poses an external threat that
could adversely affect our global business activities.
We have established a substantial transformation
programme to ensure this risk is mitigated and
stakeholder value can be preserved and enhanced in
thefuture.
We continue to invest in the development of our
technology platform to create efficiency and enable
innovation. Our approach is to be at the forefront of
disruptive and transformative technologies such as AI
and blockchain, adopting these responsibly through an
appropriate governance framework.
We regularly monitor developments in countries
subjectto geopolitical risk and take steps to protect
ourpeople and assets where necessary. This includes
monitoring and reviewing portfolio exposures,
potentialsingle nameand/or sector vulnerability, and
possible outcomesunder different scenarios.
We continue to build and adapt our investment,
distribution and solutions capabilities to anticipate and
address evolving client needs. In response to ongoing
fee pressures and industry shifts, our focus extends
beyond investment excellence to encompass our ability
to develop deep partnerships – offering integrated
solutions that align investment strategies with clients’
broader objectives.
The launch of our European active exchange-traded
funds is another example how we address evolving
clientneeds.
Financial risk
We are exposed to market, credit, liquidity and capital risks resulting from
our balance sheet exposures including our principal investments. Market,
credit and liquidity risks also impact the assets managed on behalf of
clients. Adverse movements in financial markets – including equity, credit,
interest rates, and currency – can lead to reductions in the value of assets
under management (AUM), impact revenues, and restrict our ability to
raise and deploy capital, particularly in private markets. Heightened and
persistent geopolitical uncertainty, evolving global government policies,
and volatile foreign exchange rates further amplify these risks,
contributing to unpredictable market conditions. Sustained market
declines or spikes in volatility could therefore undermine the Group’s
strategic objectives and financial performance.
We manage capital, liquidity and the Group’s own
investments through Board-set limits and through the
Group Capital Committee. Equity market and credit
spread risks in seed investments are hedged where it is
economic and practicable to do so, and foreign currency
Group investments are hedged back to sterling. We
monitor our credit and counterparty exposure in the
Group balance sheet, in our bank lending portfolios and
in our client assets.
We have diversified income streams across a range of
markets to mitigate a considerable fall in any one area.
Our focus on growing our Schroders Capital product
range and investment capabilities, as well as the
continued success of our Wealth Management business,
allows us to have a broader range of income streams
which are less directly linked to markets.
Strategic report Governance Financial statements Shareholder and sustainability information
Risk management continued
28 Schroders Annual Report and Accounts 2025
Description How we manage this
Information security and technology risk
Information security risk relates to the confidentiality, integrity or
availability of services being negatively impacted by the activities of a
malicious insider or external party. Technology risk refers to the failure to
deliver scalability, integrity and availability of systems that leads to a
negative impact on the Schroders business and our client experience.
Advances in AI and deep-fake technology create opportunities for more
advanced social engineering techniques to be used in cyber attacks.
These advances and other information identified through our threat
intelligence and active cyber testing continue to provide insight into the
areas we should focus on to enhance our cyber defence capabilities.
The overall transition to cloud-based services has yielded substantial
benefits to our organisation but has also meant we are reliant on the
cloud service provider, which brings its own risks. We plan to replace our
Wealth Management system and will need to manage this carefully to
minimise client disruption.
Cyber threats, stemming from highly capable criminal organisations and
state-sponsored entities, persist and continue to grow, but we continually
adapt and advance in response to these threats. This includes ensuring
we have response and recovery capabilities that are frequently tested,
and effective, to minimise impact in the event that we are compromised.
There is a risk of data loss as we make changes to our workforce. Overall
the trend remains stable.
We have a dedicated Information Security function
responsible for the design and operation of our
Information Security Risk framework, which includes
oversight of critical third parties’ cyber capabilities.
Information security risk is overseen by specialists
withinboth the second and third lines of defence and is
monitored by the Information Security Risk Oversight
Committee. This governance ensures clear
accountability, independent risk challenge, and
escalation, with regular monitoring and review of cyber
risk metrics aligned to the National Institute of
Standardsand Technology (NIST) Cybersecurity
Framework. We operate a Global Technology Risk
Committee to oversee operational risk associated with
ITservices across the organisation. A Responsible AI
Committee provides guidance and oversight of our
useof the technology.
Our data loss prevention controls seek to prevent the
loss of sensitive information and intellectual property.
We monitor our people closely and act decisively in
closing down system access when roles change, or
whenstaff are at risk of redundancy or leave the firm.
Investment performance risk
There is a risk that portfolios may not meet their investment objectives
(including sustainability objectives) or that there is a failure to deliver
consistent and above-average performance. There is a risk that clients will
move their assets elsewhere if we are unable to outperform competitors
or unable to deliver the investment objectives. Strong investment
performance is critical to the success of Schroders.
In 2025, 70% of client assets outperformed benchmarks over three years
and 73% outperformed benchmarks over five years.
The management of investment performance risk is a
core skill of the Group. We have clearly defined
investment processes designed to meet investment
targets within stated parameters. The Group Investment
Risk team provides additional review and challenge of
investment risks across Public Markets, Schroders
Capital and Wealth Management.
Oversight of both risk and performance is embedded
inour business processes and governance.
We use sustainability risk toolkits to support day-to-day
risk oversight and formal review and challenge of
investment risk at Asset Class Risk and Performance
committees. We have an Integration Accreditation
framework which we use to assess the integration of
sustainability factors into our investment desks’
processes, and re-accredit them on an annual basis.
Strategic report Governance Financial statements Shareholder and sustainability information
Risk management continued
29 Schroders Annual Report and Accounts 2025
Description How we manage this
Operational process risk
Operational process risk is the risk of inadequate, failed or inefficient
internal processes within our organisation, which gives rise to the
potential for loss or negative impact. Examples of significant business
processes are compliance with fund or mandate restrictions,
implementation of mandate changes, asset pricing, trade execution for
investment portfolios, whether these occur within Schroders or appointed
third parties. It also includes risks from the potential ineffective
management of joint ventures and associates.
The ongoing transformation programme will result in changes to people,
processes and systems. This may increase the likelihood of operational
process errors.
Our key business processes are reviewed regularly and
the risks are assessed through the RCA process.
Operational risk events are reviewed to identify root
causes and implement control improvements. We have a
well-established process to assess the risks within our
supply chain. We review suppliers throughout the
supplier life cycle to identify potential risks which may
impact the quality or continuity of service.
During 2025 we established a second-line oversight
framework for transformation risk.
People and conduct risk
People and conduct risk may arise from: an inability to attract, look after
and retain employees to support business activities or strategic initiatives;
non-compliance with legislation; failure to manage employee
performance and morale; poor conduct and behaviour which may impact
our culture; and disputes with employees.
Our global pulse survey shows that 77% of employees are proud to work
for Schroders. Retention of key talent remains a focus.
We regularly review our employee value proposition.
Deferred compensation arrangements targeted at key
employees support retention, and succession and
development plans are in place for key roles. We
monitoremployee engagement and morale through
regular pulse surveys and look at these scores when
assessing the performance of each business area. We
have policies and procedures to manage employee
issues and interests appropriately, handling them fairly
and in compliance with local legislation. We encourage
appropriate conduct via our Conduct Risk framework
and values.
For more details of how we are mitigating risks relating
to organisational change see “Transformation risk” on
page 31.
Regulatory risk
Regulatory risk is the risk of fines, penalties, censure or other
administrative sanctions arising from our failure to identify or meet
regulatory requirements and expectations including those relating to the
prevention of financial crime. We are subject to an extensive and evolving
regulatory framework in all jurisdictions in which we operate. There is a
risk that changes to regulations (or the pace of such change) may have a
material effect on our ability to achieve our strategic objectives.
We promote a strong compliance culture and seek to
maintain good relationships with our regulators,
engaging with them openly and regularly. We have a
suite of compliance policies that set out the controls
required for regulatory compliance, supported by
training and compliance assurance programmes. To
reinforce our commitment to integrity further, we have a
robust whistleblowing process that is designed to
empower employees and external parties to report
concerns anonymously without fear of retaliation,
ensuring that all voices are heard and issues are
investigated and addressed promptly.
Strategic report Governance Financial statements Shareholder and sustainability information
Risk management continued
30 Schroders Annual Report and Accounts 2025
Description How we manage this
Sustainability risk including climate change
Sustainability risk including climate change is the risk of failure to
understand, accurately assess and manage the disruptive impacts of
social and environmental changes on our business. It covers a wide range
of topics, with consequences for many aspects of our business.
Sustainability as a value proposition expands beyond investment
performance risk. Not meeting our disclosed sustainability commitments,
including corporate climate change targets, could adversely impact our
reputation, reduce our ability to differentiate in the market, and impair
our capacity to attract talent. This can materially impact our business
model and commercial success. Political and social attitudes towards
sustainable and climate issues have diverged in recent years, and political
efforts to tackle global challenges have waned further. There is a risk that
clients who are critical of sustainability, or those with stronger purpose-
led missions, may choose to invest elsewhere if they perceive our position
on sustainability as being different from theirs. This could lead to a
reduction in AUM. Conversely, the opportunity to leverage distinctive
capabilities could enable us to differentiate our services and product
range, which will be attractive for some clients. Therefore on balance this
risk remains at the same level as reported previously.
The impact of climate on each of our principal risks is set out on page 197.
We have established a corporate sustainability strategy
which is formally reviewed on an annual basis.
Sustainability trends influencing our industry, the
corresponding climate and nature-related risks and
opportunities are regularly assessed, informing how we
respond in the short and long term. Ongoing risk
mitigation in line with the established policies and
procedures is embedded within business governance.
This includes our emphasis on integrating sustainability
into established functions across the Group, including
investment decisions, client engagement priorities,
product development strategies and our compliance,
legal and regulatory controls and oversight. We have
conviction in our approach of actively managing the
risksand opportunities associated with sustainability
including climate change.
Third party risk
The firm is reliant on material suppliers and third parties to perform or
support many of our critical services. Therefore, disruptions to these
services or failures to deliver in line with contractual requirements can
lead to a negative impact on our clients, our staff and the firm. This risk
has increased in 2025 as we have increased our use of third parties,
hence disclosing this as a principal risk.
We have an established framework that enables third
party relationships to be properly onboarded, overseen
and managed. This includes a dedicated Procurement
team and policy as well as a Third Party Risk
Management Policy. Any material issues observed as
part of the ongoing management and oversight are
reported and assessed by senior management.
Transformation risk
Failure to manage and/or deliver transformation effectively across the
firm could impact our ability to achieve our strategic objectives, including
future growth of the business. Given the oversight of the transformation
programme by senior management, and substantial progress made in
2025, we are currently on track for successful completion and the risk is
stable. We continue to monitor and manage the potential impact for
other areas like our people, our reputation and our operations.
In 2025 we have focused on identifying areas where we
can be more efficient while enabling the business to
continue to grow. Our transformation plans are being
carefully designed and executed with a long-term
outlook and clients at the centre of our decisions.
We have established a Group Planning and
Transformation Office to ensure that all initiatives are
effectively co-ordinated across the business. This office
sequences activities in a manner that mitigates inherent
risks and is closely managed. Communication is handled
with care, and there is oversight from senior individuals
who maintain strong connections with the Group ExCo.
Strategic report Governance Financial statements Shareholder and sustainability information
Risk management continued
31 Schroders Annual Report and Accounts 2025
Schroders Annual Report and Accounts 2025
Our stakeholders
This section highlights our proactive approach to stakeholder engagement and outlines how
stakeholders’ interests have shaped our decisions throughout the year.
Stakeholder
How do we engage with them and consider
their interests?
Outcomes
Clients
Building our clients’
futureprosperity
Our purpose is to create
prosperity together. Our vision
is to partner with our clients,
providing trusted advice,
andto invest in the assets
andmarkets that matter to
them, building their future
prosperity through excellent
investment outcomes.
We engage with clients through specialist teams based in
regional hubs around the world, combining our global
presence with strong local client relationships. This
approach allows us to provide expertise across Public
Markets, Schroders Capital and Wealth Management,
aligning our products and services to client needs and
delivering dedicated support through Client Service Hubs.
In 2025, we continued to prioritise client engagement and
understanding through a comprehensive approach that
integrates feedback and insights from a diverse client base.
The transformation of Client Group during the year created
new opportunities across the firm to enhance collaboration
with and for our clients, marked by the appointment of our
new Global Head of Client Group in August.
By engaging with clients and considering their interests, we
aim to build and maintain strong relationships, addressing
their needs and concerns proactively. Factors that could
affect these relationships include changes in client
expectations and market dynamics, which we continuously
monitor and adapt to.
Schroders continues to rank
fifth in brand awareness
among over 2,770 managers.
The 2025 Schroders Global
Investor Insights Survey found
that, due to macroeconomic
and portfolio resilience
concerns, 80% of respondents
planned to increase their use
of active management over the
next 12 months.
Shareholders
Delivering long-term
sustainable value for
ourshareholders
The engagement and support
of our shareholders is vital to
achieving our strategic
objectives and driving business
growth. The support of our
shareholder base plays a
crucial role in endorsing the
long-term approach we take in
managing our business.
Our Annual General Meeting remains a cornerstone of
engagement with our shareholders. In the first quarter we
unveiled our strategy update. Our results announcements
and regular quarterly trading updates in the first and third
quarters are also important opportunities to update
shareholders on progress.
We also hold specific roadshows to provide further context
and respond to investor questions. Throughout the year,
Elizabeth Corley, Richard Oldfield and Meagen Burnett,
together with the Investor Relations team, met with many
shareholders across our base to continue building these
important relationships. In December, following our
Schroders Capital Investor Day, our CEO of Schroders
Capital also met with shareholders to discuss our ambitions
in private markets. In December, we hosted a retail investor
engagement webinar through ShareSoc
1
.
We remain proactive in engaging with shareholders to
ensure their views and perspectives are considered in our
decision-making and to strengthen the partnerships that
underpin our long-term success.
The interests of our
shareholders closely align with
those of our clients. Meeting
client needs allows us to deliver
value to those who have
invested in our business.
In 2025, we enhanced
transparency and simplified
reporting to give shareholders
clearer insight into progress
and performance. By focusing
on delivering against our
strategic objectives, we create
the conditions for long-term
success, in which our
shareholders also participate.
Our people
Fostering a purpose-led,
inclusive andhigh-
performing culture
Our employees are key to the
success of our strategy,
transformation and delivery for
clients. Their skills and
commitment drive our
progress. We support an
inclusive, high-performing
culture and invest in our
people, recognising that
diverse perspectives
strengthen our ability to deliver
a broad range of insights and
solutions for our clients.
We are committed to proactive engagement, ensuring
colleagues remain informed and involved through a mix of
in-person, hybrid and digital channels. Regular town halls
led by the Group Chief Executive and Group Executive
Committee provide updates on strategy and performance,
supported by intranet and email communications, video
blogs and “pulse point” sessions.
Open dialogue is central to our approach. Live Q&A
sessions follow every town hall, while our pulse survey,
Global Employee Forum, Global Inclusion Forum and
employee resource groups provide valuable feedback
directly to the Board.
This two-way engagement ensures employee views are
reflected in decision-making, supports high levels of
contribution to business performance, and enables
Directors to take colleague interests into account when
making principal decisions.
Feedback from surveys, forums and networks directly
shapes our decisions and helps us create a stronger, more
inclusive culture.
78% of respondents to our
employee pulse survey said
they understood how their
rolelinks to Schroders'
overallgoal and purpose,
demonstrating a strong sense
of connection and alignment
with our strategy.
We remain committed to open
communication and
consultation with our Global
Employee Forum, Global
Inclusion Forum and other
employee-led networks. Our
networks see more than 3,500
active memberships, with
colleagues often participating
in multiple networks. By
listening to our people and
acting on their views, we
continue to evolve and deliver
a workplace where everyone is
empowered to thrive.
1. ShareSoc - the short name and registered trade mark of the UK Individual Shareholders Society.
Strategic report Governance Financial statements Shareholder and sustainability information
Stakeholder engagement
32 Schroders Annual Report and Accounts 2025
Stakeholder
How do we engage with them and consider
their interests?
Outcomes
Portfolio
companies
Working with
investeeholdings
Engaging with portfolio
companies and management
teams is central to the value
wedeliver as an active
investment manager.
Engaging with portfolio companies helps us understand
management priorities and strategies, while giving us
opportunities to support companies to strengthen their
long-term resilience and sustainability.
Our Engagement Blueprints set out our principles for
engaging with companies in both Public Markets and
Schroders Capital. We focus on material sustainable risks and
opportunities that are important or potentially important to
their long-term performance. This includes engaging and
voting to encourage improved transparency, governance and
oversight, and strategy and action related to these risks and
opportunities. Investment teams across Schroders engage
with investee management teams, with support from the
central Sustainable Investment team in relevant areas.
Active ownership is a key
element of the value we can
bring to our clients. Through
thoughtful and constructive
engagement, we can support
boards and management
teams to adapt to change, and
deliver more resilient business
models as well as stronger
investment outcomes.
In 2025, we had over 8,000
interactions with management
teams on a wide range of
topics, of which we recorded
956 as sustainability-focused.
Wider society
Supporting our
communities and the
environment
We recognise the responsibility
we have to wider society. Our
corporate sustainability
strategy is embedded into our
business and focuses on
improving equality and
protecting the planet.
Our global and regional charity committees consider
causes across the globe for our corporate charitable
donations. Our annual “people” campaign aims to raise
awareness and funds for causes reflecting the current
socio-economic climate. We respond to humanitarian
appeals with corporate donations, and support employees
to volunteer, fundraise or donate through paid leave,
contribution matching and payroll giving.
We conduct an annual greenhouse gas inventory and carry
out periodic risk assessments of our global offices to
manage our environmental risks and opportunities.
Membership of industry initiatives keeps us informed on
emerging trends and best practice.
In 2025, we committed £5.5
million to charitable causes,
including £1 million for a new
global partnership with Fauna
& Flora.
Our total operational Scope 1
and 2 greenhouse gas
emissions decreased by 41%
from the 2019 base year. We
maintained our target of
sourcing 100% renewable
electricity for our global offices,
which we achieved a year
ahead of schedule in 2024.
Regulators
Building respectful
relationships
We are committed to engaging
proactively with regulators and
key industry bodies by sharing
insights, supporting policy
development, and advocating
for better functioning markets.
In addition to our Compliance and Risk teams, who directly
liaise with regulators, we have a dedicated public policy
presence in the UK and Brussels for the EU.
Our Public Policy team engages regularly with officials, and
our responses to formal consultations are available on our
website
1
. Senior management maintains regular meetings
with regulators, fostering strong relationships. The Audit
and Risk Committee receives reports on regulatory
engagement and the potential impact of regulatory
changes on our business.
Through our engagement, we aim to comply with current
requirements, shape future ones, and contribute to a
competitive and resilient financial system.
In 2025, the Public Policy team
addressed UK topics including
the proposed sustainability
reporting standards and, in the
EU, the Commission’s Savings
and Investment Union
initiative, particularly
securitisation reform. We
engaged with supervisory
teams on operational
resilience, the Overseas Fund
Regime, Consumer Duty, and
valuation and liquidity of
private markets. We also
collaborated with supervisors
to launch the UK’s first Long-
Term Asset Funds (LTAFs) for
experienced private and
institutional investors.
External
suppliers
Working with trusted
partners
Our global network of external
partners and suppliers
supports our corporate
strategy by providing expertise
and specialist skills.
Our Procurement and Third-Party Risk Management Policy
governs the Group’s sourcing and oversight of, and
engagement with, suppliers. Day-to-day oversight and
engagement is conducted by our Procurement team
andrelevant business teams. Material issues are escalated
where necessary to senior management and relevant
committees. Throughout 2025, we have continued to
review our global supply chain, reducing the number of
suppliers and placing greater reliance on a smaller group
ofkey partners. This approach enables more focused
andeffective engagement and supports our
transformationagenda.
We recognise our suppliers as
essential stakeholders and
support fair payment practices
by making timely payments in
accordance with agreed terms.
Our annual Modern Slavery
Statement, approved by the
Board, sets out our approach
to assessing and managing
modern slavery risks in our
supply chain.
Section 172 statement
In fulfilling their duties under section 172 of the Companies Act, the Directors have considered the factors set out in section
172(1)(a) to (f), together with the interests of the Company’s key stakeholders. Examples of how stakeholder interests have been
considered are provided throughout this report. Specific examples of how these interests and the section 172 factors have
influenced the Board’s principal decisions during the year are set out on page 46.
For further information please refer to our KPIs on pages 2 to 3, Sustainability at Schroders on pages 20 to 22, People and
community on pages 23 to 24, and our Climate-related financial disclosures on pages 185 to 201.
1. www.schroders.com/policymakers/
Strategic report Governance Financial statements Shareholder and sustainability information
Stakeholder engagement continued
33 Schroders Annual Report and Accounts 2025
Viability and going concern statement
In accordance with the UK Corporate Governance Code, the
Directors have carried out a robust assessment of the key risks
facing the Group and expect that Schroders plc will continue to
be viable for at least the next five years.
Assessment of prospects
The five-year period to December 2030 is consistent with the Group’s
strategic business planning and forecasting period. The Group’s
strategic and financial planning process includes a detailed review
ofthe business model and key assumptions. It is led by the Group
Chief Executive and Chief Financial Officer in conjunction with
management teams. The outlook was most recently updated in
February 2026. The business planning process considers the risks
that may materially impact the Group, and assesses the need for
business model changes. The business plan reflects the Group’s
strategy and diversified business model, which aresummarised on
pages 12 to 15 and 10 to 11 respectively.
Key assumptions underpinning the financial planning process
include: AUM growth from both markets and net new business;
changes to net operating revenue margins owing to changes in
business mix, planned business activity and industry-wide margin
pressures; and additional costs including those arising from
continued investment in the development of thebusiness.
Progress against financial budgets and key objectives is
reviewedthroughout the year by both the Board and the Group
Executive Committee (Group ExCo), along with periodic reviews of
the capital and dividendpolicies.
Assessment of viability
The assessment of the Group’s viability requires the Directors to
consider the principal risks that could affect the Group, which are
outlined on pages 25 to 31. The Directors review the key risks
regularly and consider the options available to the Group to mitigate
these risks so as to ensure the ongoing viability of the Group.
Stress testing is performed on the Group’s business plan and
considers the impact of a number of the Group’s key risks
crystallising over the assessment period. This includes consideration
of new and emerging risks, identified through the business planning
process, that could have a material impact over the five-year
planning period.
The severe but plausible stress scenarios applied to the business
planinclude consideration of the following factors:
– a deterioration in the value of our AUM, for example as a result
ofa severe period of market stress, the return of significant
inflationary pressures combined with a marked slowdown in
global growth, or the early crystallisation of certain climate
change risks
– a significant decline in net operating revenue margins
reducingprojected revenues
– the impact of a material operational risk event or poor
performance which could lead to reputational damage and
significant outflows of our AUM.
The Group also assesses the impact of regulatory stress
scenariospublished by the Bank of England. Thestress scenarios are
consistent with those used in the Group’sconsolidated Internal
Capital Adequacy Assessment Process and Internal Liquidity
Adequacy Assessment Process.
Having reviewed the results of the stress tests, including a scenario
that combines a number of the factors set out above, the Directors
have concluded that the Group would have sufficient capital and
liquid resources and that the Group’s ongoing viability would be
sustained. In drawing this conclusion, the Directors assessed the
management actions that are available to the Group and were
comfortable that they are sufficient in order to maintain adequate
capital and liquidity surpluses. The Directors also have regard to
business model changes that might be required given the new
environment in which the Group would be operating.
It is possible that a stress event could be more severe and have
agreater impact than we have determined is plausible. In this
context,we conduct reverse stress tests, which demonstrate the
unlikely and very extreme conditions required to make our business
model non-viable.
The Directors’ current, reasonable expectation is that Schroders plc
will be able to continue in operation, meeting its liabilities as they fall
due, over a viability horizon of at least five years. The Board’s five-
year viability and longer-term assessment is based on information
known today.
Going concern
The going concern disclosure below provides an assessment
ofthe Group's ability to continue operating for at least the next
12 months.
The Group’s business activities, together with the factors likely to
affect its future development, performance and position, are set
out in this Strategic report. In addition, the financial statements
include: information on the Group’s approach to managing its
capital and financial risk; details of its financial instruments and
hedging activities; and its exposures to credit and liquidity risk.
The Group has considerable financial resources, a broad range
of products and a diversified client mix and geographical
footprint. As a consequence, the Directors believe that the
Group is well placed to manage its business risks in the context
of the current economic outlook.
Accordingly, the Directors have a reasonable expectation that
the Company and the Group have adequate resources to
continue in operational existence for a period of at least 12
months from the date the Annual Report and Accounts is
approved. They therefore continue to adopt the going concern
basis in preparing the Annual Report and Accounts.
Pages 1 to 34 constitute the Strategic report, which was approved
bythe Board on 11February 2026 and signed on its behalf by:
Richard Oldfield
Group Chief Executive
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
Viability and going concern statement
34 Schroders Annual Report and Accounts 2025
GOVERNANCE
Governance
Board of Directors and Company Secretary 36
Corporate governance report 40
Nomination and Governance Committee report 50
Audit and Risk Committee report 53
Remuneration report 61
Directors’ report 90
Statement of Directors’ responsibilities 95
Strategic report Governance Financial statements Shareholder and sustainability information
35 Schroders Annual Report and Accounts 2025
Leading the way
Skills, experience and contribution Current external appointments
Dame Elizabeth Corley
Chair
Elizabeth was appointed as an independent non-executive Director in
September 2021 and became Chair at the conclusion of the 2022 Annual
General Meeting.
Elizabeth is a non-executive Director of London Stock Exchange Group
plc, Chair Emerita of the Impact Investing Institute and a Trustee of the
British Museum Trust. She was previously the CEO of Allianz Global
Investors and a non-executive Director of Morgan Stanley Inc., Pearson
plc and BAE Systems plc.
Elizabeth is a leading figure in financial services with over 45 years’
experience, and is active in representing the investment industry and
developing standards. Elizabeth has significant expertise in asset
management, impact investing and sustainability, and brings a wealth of
investor, governance and boardroom experience to the Board.
– Non-executive Director of
London Stock Exchange
Groupplc
– Chair Emerita of the Impact
Investing Institute
– Trustee of the British
Museum Trust
Richard Oldfield
Group Chief Executive
Richard was appointed as Group Chief Executive on 8 November 2024,
having joined Schroders in October 2023 as a Director and Chief
FinancialOfficer.
Richard is a chartered accountant and was Network Vice Chairman and
Global Markets Leader at PricewaterhouseCoopers (PwC) until October
2023, where he led market-facing activities, initiatives and strategy. Prior
to this, he held several senior management positions at PwC UK,
including Head of Clients and Markets, Head of Strategy and
Communications, and UK Banking and Capital Markets Assurance Leader.
His experience includes time spent working across Africa, Asia, Europe
and North America.
Richard brings extensive capability in leading an international business,
combined with technical and strategic capabilities. His global perspective,
deep understanding of client needs, and experience in advising large
multinational financial services organisations are instrumental in
supporting the delivery of our strategy.
– Trustee and Chair of the
Finance and Administration
Committee of The Duke of
Edinburgh’s International
Award Foundation
– Member of the FCA
Practitioner Panel
Meagen Burnett
Chief Financial Officer
Meagen joined Schroders in January 2023 as Chief Operating Officer. In
January 2025, she became Chief Financial Officer, overseeing the Group’s
Finance function including tax and treasury, as well as operations,
technology, commercial transformation and corporate services.
Prior to joining Schroders, Meagen spent 11 years at M&G plc as Chief
Operating Officer and held various transformation, operational, audit, risk
and IT control roles at J.P. Morgan, Goldman Sachs and KPMG.
With more than 25 years spent in financial services, Meagen is an
experienced leader in delivering organisational change. She brings a
strong commercial focus to resource and capital allocation and drives
innovation and efficiency across our business processes.
– None
Johanna Kyrklund
Group Chief
Investment Officer
Johanna joined Schroders in 2007, was appointed Group Chief
Investment Officer in September 2019, and as an executive Director
inJanuary 2025. She is responsible for overseeing the investment
performance, philosophy and process across all asset classes at the firm
as well as leading the Public Markets business.
Prior to joining Schroders, Johanna was a fund manager at Insight
Investment from 2005 to 2007 and Head of Asset Allocation at Deutsche
Asset Management from 1997 to 2005.
Johanna brings extensive investment experience, a depth of industry
knowledge and a strong focus on client outcomes. Her role on the Board
underscores the importance of active investment expertise at Schroders.
– Member of Christ Church
Investment Committee
Strategic report Governance Financial statements Shareholder and sustainability information
Board of Directors and Company Secretary
36 Schroders Annual Report and Accounts 2025
Collectively responsible for the direction, oversight and
performance of the Company
Nomination and Governance
Committee
Audit and Risk Committee
Remuneration Committee Chair
Skills, experience and contribution Current external appointments
Iain Mackay
Senior Independent
Director
Iain was appointed to the Board as an independent non-executive
Director in January 2024, and was appointed as Senior Independent
Director in May 2025.
Iain is a chartered accountant and was Chief Financial Officer at GSK plc
until 2023. He was a member of the GSK leadership team and was
responsible for Global Finance and several of GSK’s key global functions,
including Investor Relations, Digital and Tech, and Global Procurement.
Prior to joining GSK, Iain was Group Finance Director at HSBC Holdings
plc, a position he held for eight years. Iain has lived and worked in Asia,
the US and Europe and, before HSBC, was at General Electric,
Schlumberger Dowell and Price Waterhouse.
In addition to his experience as Chief Financial Officer of FTSE 100
companies, Iain brings considerable knowledge of global organisations
operating in many of the international markets where we are located.
– Non-executive Director and
Chair of the Audit and
RiskCommittee of
NationalGrid plc
– Non-executive Director of
UK Government
Investments
– Director of O-I-Glass, Inc.
Claire Fitzalan Howard
Non-executive Director
Claire was appointed as a non-executive Director in April 2020.
Claire is a non-executive Director of Caledonia Investments plc, Director
and Trustee of the Schroder Charity Trust and a Trustee of a number of
charitable foundations. She was previously a non-executive Director of
Gauntlet Insurance Services.
Claire brings experience of family-owned businesses in financial services
and from her non-executive roles. Claire is a descendant of John Henry
Schroder, co-founder of the Schroders business in 1804. Claire’s
appointment reflects the commitment to Schroders of the Principal
Shareholder Group, which has been an important part of Schroders’
success over the long term.
– Non-executive Director of
Caledonia Investments plc
– Director and Trustee of the
Schroder Charity Trust
– Trustee of a number of
charitable foundations
Rakhi Goss-Custard
Independent non-
executive Director
1
Rakhi was appointed as an independent non-executive Director in
January 2017.
Rakhi is an experienced executive in digital retailing, having spent 12
years at Amazon, where she was Director of UK Media. Prior to joining
Amazon, she held roles at TomTom and in management consultancy in
the US. She was previously a non-executive Director of Intu plc,
Rightmove plc and Kingfisher plc.
Rakhi’s experience in the digital world through her work at Amazon, and
more recently through her experience as a non-executive Director on
other boards, is highly valuable to the Group as digital innovation has an
increasingly important impact on the asset management industry.
1. Rakhi will be stepping down from the Board with effect from the conclusion of
the Annual General Meeting on 16 April 2026.
– Non-executive Director
ofTrainline plc and Chair
ofthe Remuneration
Committee
Ian King CBE
Independent non-
executive Director
Ian was appointed as an independent non-executive Director in
January2017.
Ian was Chief Executive of BAE Systems plc from 2008 to 2017, having
been originally appointed to the BAE board as Chief Operating Officer,
UKand Rest of the World. Prior to this, he was Chief Executive of Alenia
Marconi Systems. Ian also served as a non-executive Director and Senior
Independent Director of Rotork plc until June 2014. In December 2025,
Ian was awarded a CBE in the King’s New Year Honours List for services
to the transport and defence sectors.
Ian brings strong global leadership expertise, gained through senior
roles in major multinational companies and in capital markets as both an
executive and non-executive director.
– Senior Adviser to the board
of Gleacher Shacklock LLP
– Chairman of Senior plc
– Director of High Speed Two
(HS2) Limited and lead non-
executive Director for the
Department for Transport
Strategic report Governance Financial statements Shareholder and sustainability information
Board of Directors and Company Secretary continued
37 Schroders Annual Report and Accounts 2025
Skills, experience and contribution Current external appointments
Leonie Schroder
Non-executive Director
Leonie was appointed as a non-executive Director in March 2019.
Leonie is currently a Director and Trustee of the Schroder Charity Trust
and has held a number of roles in the charity sector.
Leonie is a descendant of John Henry Schroder, co-founder of the
Schroders business in 1804. Leonie’s appointment reflects the
commitment to Schroders of the Principal Shareholder Group, which has
been an important part of Schroders’ success over the long term.
– Director and Trustee of the
Schroder Charity Trust
– Director of a number of
private limited companies
Annette Thomas
Independent non-
executive Director
Annette was appointed as an independent non-executive Director in
September 2023 and became the designated non-executive Director
responsible for engagement with the workforce in January 2026.
Annette has 25 years’ experience in leading global publishing and data
analytics businesses, across academic, educational and consumer media
verticals. Most recently, she served as CEO of Guardian Media Group, a
position she held until June 2021. Prior to this, Annette was CEO of the
Web of Science Group at Clarivate plc, a data, analytics and software
business focused on research and higher education. She has also served
as CEO of Macmillan Publishers and led the digital and global
transformation of Nature Publishing Group.
Annette brings experience in leading global publishing and data analytics
businesses, together with her expertise in digital, data and analytics. This
provides great benefit to the Group as we continue to invest in these
important areas.
– Non-executive Director
ofPearson plc
– Non-executive Director
ofEcoVadis
– Senior Adviser to
GeneralAtlantic
Frederic Wakeman
Independent non-
executive Director
2
Frederic was appointed as an independent non-executive Director in
January 2024.
Frederic was Managing Partner and Head of TMT at Advent International,
a leading global private equity investor. During his 23-year career,
Frederic managed Advent’s London and New York offices and served on
both its European and North American Investment Advisory Committees.
Frederic brings insights into the sustainability and conservation sectors.
He also brings experience of private equity and private markets
moregenerally, which is of great benefit as we continue to build
Schroders Capital.
2. Frederic will succeed Matthew Westerman as Chair of the Remuneration
Committee with effect from the conclusion of the Annual General Meeting on 16
April 2026.
– Founder of Blue Endeavor
Ventures
– Co-founder of Scale-Up Fund
Strategic report Governance Financial statements Shareholder and sustainability information
Board of Directors and Company Secretary continued
38 Schroders Annual Report and Accounts 2025
Skills, experience and contribution Current external appointments
Matthew Westerman
CBE
Independent non-
executive Director
3
Matthew was appointed as an independent non-executive Director in
March 2020 and was appointed as Chair of the Remuneration Committee
in April 2022.
Matthew started his career at Credit Suisse First Boston, later joining
Rothschild & Co, where he became Managing Director and Joint Chief
Executive of ABN AMRO Rothschild. In 2000, he moved to Goldman
Sachs, becoming a partner in 2002 and leading major businesses within
the Investment Banking Division. He left Goldman Sachs in 2016 to
become Co-Head of Global Banking at HSBC. In June 2024, Matthew was
awarded a CBE in the King’s Birthday Honours List for services to
museums and cultural heritage.
Matthew brings significant experience of global financial markets after a
distinguished career in investment banking.
3. Matthew will step down as Chair of the Remuneration Committee with effect
from the conclusion of the Annual General Meeting on 16 April 2026. He will
remain a member of the Committee.
– Director of MW&L Capital
Partners
– Foundation Fellow of Balliol
College, Oxford
– Trustee of the UK Holocaust
Memorial Foundation
Kate Graham
Group Company
Secretary
Kate was appointed as Group Company Secretary in May 2024.
Kate was previously Deputy Group Company Secretary at Aviva, leading
the global Governance team, and Partner at PwC, where she led the
Listed and Financial Services Governance practice.
Kate is responsible for the Group’s governance framework and is the
principal adviser on all governance matters.
Kate brings great experience in operating commercial and effective
governance frameworks for multinational and regulated groups.
– Member of the Governance
Committee of the Institute of
Chartered Accountants in
England and Wales
In February 2026, the Company announced its intention that William Lin will join the Board as an independent non-executive Director in May
2026. As William’s intended effective appointment date falls after 11 February 2026, it is not reflected in the charts below.
Composition of the Board at 11February 2026
Board composition
Non-executive
Directors’ tenure Board gender diversity Board ethnic diversity
n
Executive Directors 25%
n
Non-independent
non-executive
Directors
17%
n
Independent non-
executive Directors
58%
n
0–3 years 33%
n
3–6 years 33%
n
6–9 years 33%
n
Male 42%
n
Female 58%
n
White 83%
n
Ethnically diverse 17%
Strategic report Governance Financial statements Shareholder and sustainability information
Board of Directors and Company Secretary continued
39 Schroders Annual Report and Accounts 2025
Active oversight, challenge
and engagement
I am pleased to present our Governance report for 2025. The
following pages set out an overview of the activities of the
Board and its Committees throughout the year, how we fulfilled
our responsibilities and the governance frameworks that
support both the Board and the wider business.
Strategy and transformation
In March 2025, the Company presented a simplified strategy,
outlining the aspirations for Public Markets, Schroders Capital and
Wealth Management. During the year, the Board continued to
oversee and test the execution of that strategy, including a particular
focus on the Wealth Management and Schroders Capital businesses
in November.
The transformation programme underpinning that strategy has
been challenged and discussed by the Board and the Audit and Risk
Committee over the course of the year. We have welcomed the
rigour and transparency regarding the related KPIs that have
enabled management to deliver at pace against our targets.
Performance and our clients
Johanna Kyrklund’s appointment to the Board as Group Chief
Investment Officer in 2025 reinforced the Board’s commitment to
investment performance and client outcomes. Her insights have
strengthened the Board’s focus on the quality of Schroders’ active
investment expertise, particularly at a time when market conditions
have heightened clients’ appreciation of active management.
Clients have remained central to the Board’s discussions, with
considerations ranging across investment performance, client
experience, the impact of the Company’s brand and reputation,
leadership of the Client Group, strategic partnerships and the strength
of active management in managing the risks confronting our clients.
Culture and our people
During a year of considerable change, the Board monitored the
impact of that change on our people, and also considered the
culture that would be required to accelerate growth objectives and
drive accountability. The Board relied on key performance indicators
in the global pulse survey and employee feedback from the Global
Employee Forum to assess and monitor how well culture is
understood and embedded throughout the organisation.
Non-executive Directors are encouraged to engage with our
business and attend client events. The Board also receives training
and regular briefings throughout the year, detailed on page 43.
Our Board
Deborah Waterhouse stood down as an independent non-executive
Director at the AGM in 2025, and Rakhi Goss-Custard will be
stepping down from the Board at the conclusion of the AGM in April
2026. I would like to thank Deborah and Rakhi for their significant
contribution to the Board during their tenure as Directors.
In February 2026, we were pleased to announce our intention to
appoint William Lin to the Board with effect from May 2026. William
brings extensive international and transformation expertise and I,
and the Board, look forward to working with him.
The Nomination and Governance Committee Report contains details
of the Board composition and succession planning activities
undertaken in the year.
Our shareholders
I have had the opportunity to meet with several of our shareholders
over the course of this year. Common themes from those meetings
included support for the simplification of the business, and the
capital discipline demonstrated in our quarterly results updates, as
well as a focus on future long-term growth plans.
Looking ahead
The Board’s objectives for 2026 are set out on page 49, informed by
the external Board performance review we undertook this year. The
Board will continue to oversee the execution of our growth strategy
with an ongoing focus on delivering for our clients, cost discipline,
and embedding and monitoring our desired culture. I am looking
ahead with confidence to the longer-term opportunities for growth.
Dame Elizabeth Corley
Chair
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report
40 Schroders Annual Report and Accounts 2025
With optimism and a renewed
sense of purpose, we will
pursue a focused strategy and
streamlined operational plan.
Dame Elizabeth Corley
Chair
2025 Board and Committee attendance
Directors are expected to attend all meetings of the Board and Committees on which they serve. Details of Board and Committee attendance
are included in the table below.
Where a Director is unable to attend a meeting, their views are sought in advance and shared with the Board.
Board
1
Nomination and
Governance
Committee
2
Audit and Risk
Committee
3
Remuneration
Committee
4
Chair
Dame Elizabeth Corley
8/8
5/5
Executive Directors
Richard Oldfield
8/8
Meagen Burnett
8/8
Johanna Kyrklund
8/8
Non-executive Directors
Iain Mackay
5
8/8
5/5
7/7
2/2
Claire Fitzalan Howard
8/8
5/5
Rakhi Goss-Custard
8/8
5/5
7/7
Ian King
6
8/8
5/5
8/8
Leonie Schroder
8/8
5/5
Annette Thomas
7
8/8
5/5
8/8
Frederic Wakeman
8/8
5/5
7/7
7/8
Deborah Waterhouse
8
0/3
0/1
0/2
Matthew Westerman
8/8
4/5
7/7
8/8
1. There were seven scheduled Board meetings held during the year and one ad hoc meeting to consider strategy updates in December.
2. There were five scheduled Nomination and Governance Committee meetings held during the year.
3. There were five scheduled Audit and Risk Committee meetings held during the year and two ad hoc meetings to consider 2024 and 2025 corporate reporting
and annual results.
4. There were five scheduled Remuneration Committee meetings held during the year and three ad hoc meetings to consider the Directors’ Remuneration
Policy review.
5. Iain Mackay was appointed as Senior Independent Director at the conclusion of the Company’s AGM on 1 May 2025, succeeding Ian King. Iain Mackay was
appointed as a member of the Remuneration Committee on 18 September 2025.
6. Ian King stepped down from the role of Senior Independent Director at the conclusion of the Company’s AGM on 1 May 2025, remaining on the Board as an
independent non-executive Director.
7. In January 2026, Annette Thomas succeeded Ian King as our designated non-executive Director responsible for engagement with the workforce and, as part
of this role, chairs the Global Employee Forum.
8. Deborah Waterhouse retired from the Board at the conclusion of the Company’s AGM on 1 May 2025. Deborah did not attend meetings in January, February
and March 2025 due to unforeseen circumstances.
The Board and its Committees
The Board has collective responsibility for the direction, oversight
and performance of the Company. It is accountable to shareholders
and other stakeholders for the creation and delivery of strong,
sustainable financial performance and long-term shareholder value.
In discharging its responsibilities, the Board takes appropriate
account of the interests of our wider stakeholders, including clients,
shareholders, our people, portfolio companies, wider society,
regulators, and external suppliers. Certain decisions can only be
taken by the Board, including on the Group’s overall strategy,
significant new business activities, and the strategy for management
of the Group’s capital. These areas are contained in the Schedule of
Matters Reserved to the Board, which can be found on the
Company’s website
9
, and are summarised on page 42.
The Board has delegated specific responsibilities to Board
Committees, notably the Nomination and Governance Committee,
the Audit and Risk Committee and the Remuneration Committee.
The papers for and minutes of Committee meetings are made
available to all Directors. At each scheduled Board meeting, the Chair
of each Committee provides the Board with an update of the work
currently being carried out by the Committee they chair.
Membership of the Committees is detailed in each Committee’s
report. The Committees’ terms of reference can be found on the
Company’s website
10
.
The Chair also has regular meetings with the non-executive
Directorswithout the executive Directors being present. These
meetings are informal discussions and do not have fixed agendas.
Atleast once ayear the Chair also meets with just the independent
non-executive Directors.
Board calls are used as an additional avenue for communication to
supplement the formal Board meeting programme; these are held
between the scheduled meetings.
9. www.schroders.com/board-matters
10. www.schroders.com/board-committees
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report continued
41 Schroders Annual Report and Accounts 2025
Governance framework
Matters reserved to the Board
The Group’s overall strategy
The Company’s capital
strategy and changes to
thecapital or
corporatestructure
Significant new
businessactivities
Dividend policy
Annual Report and
financialandregulatory
announcements
Annual budgets and financial
commitments and material
or strategic acquisitions
anddisposals
Risk Management framework,
risk appetite and
tolerancelimits
Board and Committee
composition, succession
planning and Committee
termsof reference
Remuneration strategy
Corporate governance
arrangements, including
Boardconflicts of interest
Maintenance of an effective
system of internal controls
and risk management
Assessing and embedding
Group culture and values
The full Schedule of Matters Reserved to the Board can be found on the Company’s website, at www.schroders.com/board-matters
Chair
The Chair is responsible forthe leadership
of the Board, ensuring itseffectiveness and
setting its agenda. She is responsible for
creating an environment for open, robust
andeffective debate and challenge. The
Chair is also responsible for ensuring
effective communication withshareholders
and other stakeholders.
Group Chief Executive
The Group Chief Executive is responsible
for the executive management of the
Company and its subsidiaries. He is
responsible for proposing the strategy for
the Group and for itsexecution. He is
assisted by members of the Group ExCo,
the GRC and the GSI.
Chief Financial Officer
The Chief Financial Officer has direct
responsibility forfinancial management,
capital and treasury, with oversight of
operations and technology. She is
assistedby members of the Group
CapitalCommittee.
Group Chief Investment Officer
The Group Chief Investment Officer is
responsible for the oversight of investment
performance across all business lines.
Senior Independent Director (SID)
The SID acts as a sounding board for the
Chair, oversees the Chair’s evaluation,
andserves as an intermediary for other
Directors if needed. He is also available
asan alternative point of contact
forshareholders and stakeholders
asrequired.
Non-executive Directors
Non-executive Directors are expected to:
provide independent oversight and
constructive challenge; help develop
proposals on strategy; and oversee
performance and resources, including key
appointments andstandards of conduct.
1. Matthew will step down as Chair of the Remuneration Committee with effect from the conclusion of the Annual General Meeting on 16 April 2026. He will be
succeeded by Frederic Wakeman.
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report continued
42 Schroders Annual Report and Accounts 2025
Board
The Board is collectively responsible for the direction, oversight and performance of the Company.
Group Executive
Committee (Group ExCo)
The Group ExCo comprises senior
management who have primary
responsibility for the delivery and execution
of the Group’s strategy, and for operational
performance. It is an advisory committee to
the Group Chief Executive.
Group Risk Committee (GRC)
The GRC assists the Group Chief Executive in
discharging his responsibilities in respect of
risk and controls. The GRCis chaired by the
Chief Risk Officer and has a number of
sub-committees, which lookat specific
areasof risk.
Group Capital Committee
The Group Capital Committee assists the
Chief FinancialOfficer in managing the
Group’s capital, liquidity, seed investments,
co-investments and other investments.
Group Sustainability and
Impact Committee (GSI)
The GSI Committee comprises senior
management across the Group and provides
advice to the Group Chief Executive to assist
him in discharging his responsibilities
regarding sustainability and impact.
Nomination and
Governance
Committee
Responsible for reviewing
the composition of the
Board and its Committees,
executive succession, and
overseeing the Group’s
governance arrangements.
Audit and Risk
Committee
Responsible for overseeing
financial and non-financial
reporting, the Risk
Management and Internal
Control framework, and
internal and external audit.
Remuneration
Committee
Responsible for reviewing
the remuneration strategy
of the Group,
theRemuneration Policy
for Directors and
overseeing remuneration
business-wide.
Chair:
Dame Elizabeth Corley
Chair:
Iain Mackay
Chair:
Matthew Westerman
1
Independence
The Board remains committed to ensuring that at least half
theBoard, excluding the Chair, are independent Directors. All the
non-executive Directors are independent in terms of character
andjudgement.
Claire Fitzalan Howard and Leonie Schroder are not considered
independent under the UK Corporate Governance Code as they are
both members of the Principal Shareholder Group. The Nomination
and Governance Committee believes the judgement and experience
of Claire Fitzalan Howard and Leonie Schroder continue to add value
to the Board and the Group. The Board has therefore recommended
their re-election at the 2026 AGM.
Ian King was appointed to the Board on 1 January 2017 and has now
served for more than nine years. As the search for additional
independent non-executive Directors continues, and to maintain an
appropriate balance of skills and experience, the Board proposes to
extend his tenure until the end of 2026, subject to shareholder
approval at the 2026 AGM. The Board considers Ian’s industry and
transformation experience to be important to the overall balance of
skills on the Board as we continue to deliver our strategy. His senior
board-level insight and deep understanding of the Group will also
support continuity as the transformation progresses. In reviewing
Board composition, the Board considered the tenure of all Directors
and the need for non-executive Directors to maintain independence
of mind and objective judgement. The Board concluded that Ian
continues to provide effective challenge and remains independent in
character and judgement.
Director appointments and time commitment
The rules providing for the appointment, election, re-election and
removal of Directors are contained in the Company’s Articles of
Association. The Company may only amend its Articles of Association
by special resolution of the shareholders.
In accordance with the Articles of Association, William Lin will not
stand for election at the 2026 AGM, as his intended effective date
falls after the meeting. All other Directors are required to seek re-
election on an annual basis unless they are retiring from the Board.
Rakhi Goss-Custard will not be seeking re-election as a Director and
will stand down at the conclusion of the 2026 AGM. Details of the
Directors’ length of tenure are set out on page 39.
Non-executive Directors’ letters of appointment stipulate that they
are expected to commit sufficient time to discharge their duties.
The Board has adopted a policy that allows executive Directors to
take up one external non-executive directorship. Non-executive
Directors are required to consult the Chair before taking on any
additional appointments. The Board is satisfied that all Directors
continue to be effective and demonstrate commitment to their
respective roles.
For details of executive Directors’ service contracts, termination
arrangements, and non-executive Directors’ letters of appointment,
please refer to the Remuneration report from page 61.
Board training
The Board believes that the ongoing development and briefing of
Directors is an important part of the Board’s agenda. The Board
receives regular briefings throughout the year to provide it with a
deeper understanding of the Group. The Chair and Group Company
Secretary, with input from Board members, discuss briefing topics
annually and agree what these should cover.
In 2025, the Board received a dedicated briefing on cyber security,
which included a crisis simulation exercise and a review of the
Board’s role in managing cyber risk. Additional briefings were
provided on the strategic application of artificial intelligence and on
changes in the UK pensions and savings market.
Members of the Board Committees also receive regular updates on
technical developments at scheduled Committee meetings.
Board induction
The Group Company Secretary supports the Chair and Group Chief
Executive in providing a personalised induction programme for all
new Directors. This helps familiarise newly appointed Directors with
their duties and the Group’s culture and values, strategy, business
model, businesses, operations, risks and governance arrangements.
The induction process is reviewed regularly and is updated and
tailored to ensure that it remains appropriate. Induction and briefing
meetings are generally open to any Director to attend if they wish to.
Committee-specific inductions are also arranged when membership
changes, and these induction processes are tailored to the skills and
knowledge of the individual and the forthcoming Committee agenda
items. In September 2025, Iain Mackay was appointed to the
Remuneration Committee and received a personalised induction led
by the Global Head of Reward and People Risk. The induction
covered the Committee’s remit, the Group’s approach to
remuneration, and key areas of focus.
Upon William’s appointment, a comprehensive and tailored induction
programme will be provided. The induction will include:
– meeting all members of the Group ExCo and their teams to gain
an insight into, and an understanding of, the opportunities and
challenges facing their area of responsibility
– one-to-one meetings with other senior management across the
Group, including first, second and third lines of defence, to
understand the Group’s Risk Management framework and
internal controls and our technology platforms
– an overview of the Group’s ownership structure and significant
shareholders.
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report continued
43 Schroders Annual Report and Accounts 2025
Compliance with the 2024 UK Corporate Governance Code (Code)
1
During 2025, the Board complied with the Code and applied all its principles and provisions.
The following table sets out examples of how the Board has applied each principle, assisting our shareholders to evaluate our Code compliance.
Code principle
Board leadership and company purpose
A Role of the Board The Company is led by an effective Board that is collectively responsible for the Company’s long-term
sustainable success and ensures that due regard is given to the interests of our stakeholders. The Board
reviews the Group’s financial performance at each scheduled meeting and maintains ultimate responsibility
for the Group’s control framework.
See “Key areas of focus, stakeholder engagement and outcomes” on pages 46 to 47.
B Our purpose, values
and strategy
The Board has collective responsibility for setting the Company’s overall strategy and purpose in line with
the Group’s culture and values. The Board retains authority over key decisions, such as significant new
business activities and capital management.
See “Key areas of focus, stakeholder engagement and outcomes” on pages 46 to 47.
C Outcomes The Board considers stakeholder feedback in its discussions and decision-making. The outcomes of
Boarddecisions reflect Schroders’ strategy and objectives and aim to support the long-term success of
thebusiness.
See “Key areas of focus, stakeholder engagement and outcomes” on pages 46 to 47.
D Engagement The Board recognises that engaging with and taking account of the views of the Group’s stakeholders is key
to delivering the Group’s strategy and long-term objectives.
See “Key areas of focus, stakeholder engagement and outcomes” on pages 46 to 47.
E Workforce
engagement
During the year, the Board received and discussed updates on Schroders’ people and culture. The Board
has a designated non-executive Director responsible for engagement with the workforce. That role provides
two-way communication between the Board and employees, working alongside our employee
representative groups. In addition, the Chair and non-executive Directors take opportunities to engage
informally with our people across the business, including during visits to our offices outside London; this
year, the Board visited Zurich.
See “Key areas of focus, stakeholder engagement and outcomes” on pages 46 to 47.
Division of responsibilities
F The role of the Chair The roles of the Chair and Group Chief Executive are separate. The Chair has overall responsibility for the
leadership of the Board and for its effectiveness in all aspects of its operation. Dame Elizabeth Corley has
been Chair since the conclusion of the 2022 AGM and was considered independent on appointment.
Job descriptions for the Chair and Group Chief Executive can be found at
www.schroders.com/board-matters.
G Board composition The Board is committed to ensuring that at least half the Board, excluding the Chair, are independent
Directors. The Board operates effectively with a balanced composition of executive Directors, independent
non-executive Directors, and Directors connected to the Principal Shareholder Group. No individual or
group of individuals can dominate the Board’s decision-making.
During 2025, the succession planning process was focused on reviewing the composition of the Board over
the short, medium and long term, and the recruitment of additional independent non-executive Directors.
See page 39 for the composition of the Board and page 51 for the succession process.
H Role of the non-
executive Directors
Non-executive Directors are expected to provide independent oversight and constructive challenge, and
help to develop proposals on strategy. They monitor management performance, review the Company’s
financial information and assess the adequacy of controls and risk management systems.
I Group Company
Secretary
All Directors have access to the advice and support of the Group Company Secretary and her team.
Through them, Directors can request additional briefings on the business and external developments, or
request to receive independent professional advice at the Company’s expense.
1. The 2024 Code is available at www.frc.org.uk.
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report continued
44 Schroders Annual Report and Accounts 2025
Composition, succession and evaluation
J Appointments
to theBoard
The process for Board appointments is led by the Nomination and Governance Committee, which makes
recommendations to the Board.
See the Nomination and Governance Committee report on pages 50 to 52.
K Skills, experience
andknowledge
of theBoard
During 2025, the Nomination and Governance Committee carried out a succession planning process to
ensure the Board’s composition, skills, and experience remain appropriate.
See the Nomination and Governance Committee report on pages 50 to 52.
L Board performance
review
In accordance with the Code requirement, an external Board performance review was conducted in 2025,
facilitated by Christopher Saul Associates. The previous externally facilitated Board performance review was
conducted by Independent Board Evaluation (IBE) in 2022, while the reviews in 2023 and 2024 were
conducted internally.
See “2025 Board performance review” on page 49.
Audit, risk and internal control
M Internal and
external audit
The Audit and Risk Committee oversees the relationship with the external auditor, Ernst & Young (EY). The
Head of Group Internal Audit reports directly to the Committee Chair.
See the Audit and Risk Committee report on pages 53 to 60.
N Fair, balanced and
understandable
assessment
The Audit and Risk Committee reviews the Company’s financial reporting in detail and recommends
totheBoard whether the Annual Report and Accounts, when taken as a whole, are fair, balanced
andunderstandable.
See the Audit and Risk Committee report on pages 53 to 60.
O Risk management
and internal control
framework
The Audit and Risk Committee conducts an annual assessment of the effectiveness of the system of internal
controls and reviews the adequacy of risk management arrangements in line with the business and
strategy. The Committee also considers principal, emerging and thematic risks that could affect the Group.
See the Audit and Risk Committee report on pages 53 to 60.
Remuneration
P Policies and practices Executive remuneration is designed to align with our purpose. Our existing Directors’ Remuneration Policy,
approved at the 2023 AGM, applies for three years. We will seek shareholder approval for our updated
Directors’ Remuneration Policy, which was developed following engagement with our shareholders, at the
2026 AGM.
See the Remuneration report on pages 61 to 89.
See the updated Directors’ Remuneration Policy on pages 72 to 78.
Q Remuneration policy The Remuneration Committee provides independent oversight of the Group’s Remuneration Policy and
determines the remuneration of the Chair and the executive Directors within the shareholder-approved
policy. Directors do not participate in decisions regarding their own remuneration.
See the Remuneration report on pages 61 to 89.
See the updated Directors’ Remuneration Policy on pages 72 to 78.
R Exercising
independent
judgement
and discretion
We operate a simple and transparent pay-for-performance approach, aligning executive remuneration
with shareholder and client interests, financial performance, and progress towards strategic objectives.
See the Remuneration report on pages 61 to 89.
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report continued
45 Schroders Annual Report and Accounts 2025
Key areas of focus, stakeholder engagement and outcomes
At each scheduled Board meeting, the Board discusses reports from: the Group Chief Executive on the performance of the business; the
Chief Financial Officer on financial performance; and the Group Company Secretary on governance developments. The Group Chief
Investment Officer presents a quarterly investment report. Following each Committee meeting, the Committee Chairs provide a report to
the Board.
During 2025, the Board considered the Group’s growth strategy, capital position, business performance, progress made against our
transformation programme, our clients, our strategy in the context of external markets, our culture and people, and engagement with
shareholders and regulators.
In discharging their section 172 duties, the Directors have had regard to the matters outlined in section 172(1)(a) to (f), together with the
interests of the Company’s key stakeholders. The Board considered stakeholder interests as part of its discussions and decision-making
throughout the year. Details of our key stakeholders, how we engage with them, and the results of that engagement are outlined on pages
32 and 33.
The Directors acknowledge that not every decision made will necessarily result in a positive outcome for all stakeholders. By considering
theCompany’s purpose, vision and values together with its strategic priorities, and having a process for decision-making, the Board does,
however, aim to make sure that its approach to decision-making is aligned with stakeholder interests. The Board remains committed
topromoting the long-term success of the Company for the benefit of all members and to acting fairly between the interests of
allshareholders.
The examples provided in the table below and overleaf show how the Board considered matters set out in section 172 in respect of key
decisions made during 2025, taking into account the views of key stakeholders while continuing to promote the Group’s long-term success.
Key stakeholders
Clients Shareholders Our people Portfolio companies Wider society
Regulators External suppliers
For more detail on our stakeholders, see pages 32 to 33.
Engagement and
stakeholder input
Board discussions/decisions Outcome (action)
People and culture
(Employees)
Cultural change and employee
engagement have been central to the
Board’s oversight of the transformation
programme, including consideration of
the enterprise-wide behaviours
required to accelerate our organic
growth plans.
We have remained committed to open
dialogue with our employees through
our Transformation Communications
Hub, Company-wide town halls,
divisional and functional briefings, and
support and wellbeing initiatives. Our
pulse surveys are also used to monitor
employee engagement and morale.
We launched a Global Inclusion Forum
and strengthened our engagement
with the Global Employee Forum. These
structured forums create clear channels
for Board engagement, increase the
visibility of diverse employee
perspectives at Board level, and enable
the Board to monitor diversity and
inclusion across the group.
Assessing and monitoring the impact of
transformation and organisational
change on our people and culture has
been a particular focus for the Board,
and discussions in 2025 focused on the
behaviours required to improve
efficiency, linking performance and
reward, and the importance of fostering
a diverse and inclusive culture. In
addition, the Board has considered how
to increase opportunities for employee
development and progression.
The Board reviewed themes arising
from employee feedback obtained
viaour global pulse survey.
Thesereports gave clear insights
intoemployee sentiment.
In addition to the Board’s discussions
regarding culture, the Nomination and
Governance Committee reviewed and
discussed the approach to executive
management succession planning and
talent development, with a particular
focus on enterprise-wide leadership.
The Board supported the review of
culture initiated by management during
the year, which focused on developing
enterprise-wide leadership and
embedding the desired organisational
culture of accountability. The clear
articulation of that culture will enable
the Board to assess how effectively the
desired culture is being embedded.
The Board supported the Group Chief
Executive in making key appointments,
including the CEO of Wealth
Management and the Global Head of
Client Group, strengthening the senior
leadership team.
In January 2026, Annette Thomas
assumed the role of designated non-
executive Director responsible for
engagement with the workforce and,
aspart of this role, chairs the Global
Employee Forum, providing a clear
andformal route for a breadth of
employee perspectives to be
communicated to the Board.
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report continued
46 Schroders Annual Report and Accounts 2025
Engagement and
stakeholder input
Board discussions/decisions Outcome (action)
Simplification, transformation and growth
Simplification
The Company has widely
communicated the initiatives
supporting our growth strategy and
transformation programme to our
external and internal stakeholders.
We have focused on those products
and business areas where Schroders
has clear strengths and a competitive
advantage, with a goal of driving
earnings growth. Simplification in this
area has included refining our global
footprint and exiting activities where we
do not have a competitive edge.
Clients were kept informed about any
changes impacting them via regular
engagement meetings and more
formal communication where required.
The Board discussed and set the
strategy as presented in March 2025
and approved the targets for the
related transformation programme. In
doing so, the Board considered the
likely long-term consequences of these
decisions, in order to shape a strategy
that supports sustainable growth.
During the year, the Board reviewed
progress against the underlying KPIs.
Key considerations included the
financial impacts of transformation and
the closure or sale of businesses in
non-growth areas.
The Board considered the impact on
stakeholders during its discussions
onthese changes, including the
importance of assessing and
monitoring the impact on clients
andemployees.
As part of our commitment to clients,
the Board made the decision to
disengage from the joint venture
withLloyds Banking Group and regain
full ownership of Cazenove Capital in
exchange for our stake in Schroders
Personal Wealth. The remaining
partnership with Lloyds Banking Group
allows us to focus on where we can
deliver the greatest value and
reinforces our position as a trusted
partner, helping more people
acrossthe UK to grow and preserve
their wealth.
Following the strategic review of our
global footprint, the Board also took the
decision to exit two markets where it
was recognised we could not scale
alone – Brazil and Indonesia.
Transformation
By remaining proactive and visible
about what sets Schroders apart
throughout our transformation, we aim
to strengthen our brand and reputation
and demonstrate to employees and
shareholders that we value our people
and their contributions.
Regular employee engagement
mechanisms, such as pulse surveys,
forums, town halls and digital feedback
tools, have enabled the Board to
maintain a clear understanding of our
people’s experiences and priorities.
Through our market announcements
we have highlighted the areas where
we have made strides in progressing
our transformation agenda and we will
continue to keep our stakeholders
updated on progress against our
growth ambitions during 2026.
The Board discussed continued efforts
by the Company to keep our people
informed, engaged and supported as
we execute on the transformation plan.
The Board remained cognisant of
maintaining the Company’s strong
andrespected brand and reputation,
which are underpinned by high
standards of business conduct and
supported by talented teams, client
loyalty, long-term strategic
partnerships, and our global reach
combined with deep local relationships.
The Board received updates on and
reviewed the impacts of transformation
on our technology and operations
infrastructure, and on our people
andculture, and discussed client
responses to changes. The Board also
approved a new risk appetite statement
for transformation risk.
When decisions were approved relating
to the transformation of the business
during the year, particular attention was
given to the impact on our people and
employee morale. The need to manage
and communicate changes with
respect, whilst investing in the ongoing
growth and wellbeing of our people,
was an area of focus for the Board.
The Board also supported a decision to
expand our long-standing relationship
with UST, outsourcing technology
services to improve the operating
leverage in our business.
Growth
We provided shareholders with a
strategy update alongside our full-year
results for 2024, and continued that
engagement in the second half of the
year, including via investor events in the
US, Asia and Europe. There has also
been a proactive communication
programme with our clients to keep
them abreast of changes.
We have continued to communicate
with our stakeholders throughout the
year via regular regulatory
announcements, providing updates on
our progress against our strategic
ambition to return to profitable growth.
Further details on how we have
engaged with our key stakeholders
during the year are included on pages
32 and 33.
The Board considered the activities
required to achieve the growth plans
outlined in March 2025, including the
products required to meet clients’
evolving needs.
At the strategy session in November,
the Board conducted a deep dive on
the Schroders Capital and Wealth
Management strategies and business
plans. Discussions covered the desired
future state and how our proposition,
footprint and operating model would
need to evolve so as to support
optimally a modern, scalable and
globally competitive business.
The Board reviewed the execution plan,
governance framework and business
case that would support investment
and enable disciplined delivery and
measurable outcomes.
In support of our growth strategy, we
listed our first two European active
exchange-traded funds (ETFs) on the
London Stock Exchange during the
year, further demonstrating our ability
to develop and offer clients actively
managed and relevant products.
The Board approved a firm-wide
scorecard to align employee goals
withthe Group strategy, enhancing
accountability and decision-making,
anddriving business success and
personal growth.
Strategic report Governance Financial statements Shareholder and sustainability information
Corporate governance report continued
47 Schroders Annual Report and Accounts 2025
2025 Board objectives
The 2024 Board performance review was undertaken internally and, in light of the findings of that review, the Board set the following high-
level objectives for 2025.
Objective Progress made during 2025
Strategy
– Execution of transformation,
supported by clear key
performance indicators
(KPIs)
– Maintaining an appropriate
balance between
immediateactions and
longer-term strategy
The Board monitored the progress of the transformation programme and approved a new risk appetite
statement for transformation risk. Key considerations included the financial impact of transformation, the
closure or sale of businesses in areas without growth potential, Group technology and operations
infrastructure, sales and marketing transformation, and the effects of transformation on our clients,
people and culture. The Board also discussed cyber, information security resilience and opportunities to
accelerate our artificial intelligence capabilities.
The Board introduced a firm-wide scorecard to align employee goals with the Group strategy, and to
enhance accountability and decision-making. Revised management accounts were also introduced to
enable performance to be measured against the agreed KPIs.
Alongside monitoring the effects of immediate transformation actions, the Board remained focused on
longer-term strategy. Discussions covered positioning the Group for longer-term growth and identifying
opportunities for accelerated growth, with focused discussions on Wealth Management and Schroders
Capital. The Board endorsed management's refreshed growth strategy based on deploying active
management across asset classes to deliver client-focused solutions.
Clients
– A sustained focus on
investment performance,
client satisfaction and sales
effectiveness
The Board actively monitored investment performance throughout the year, supported by the Group
Chief Investment Officer’s quarterly investment report, and closely examined any areas of
underperformance.
Sales effectiveness was a central topic of the Client Group transformation, which the Board is continuing
to consider into 2026. In support of this, the Remuneration Committee discussed the links between
performance ratings and compensation outcomes.
The Board encouraged a thoughtful approach to proposed product rationalisation, including the closure
or merger of underperforming or sub-scale funds. The Board also discussed client responses to changes
arising from the transformation programme as well as the Active Edge brand campaign and the role of
active management.
People
– Executive management
pipeline, succession and
personal development plans
– Monitoring the impact of
organisational change on
our people and culture
andassessing how the
desired culture was
beingembedded
The Nomination and Governance Committee reviewed the proposed approach to executive management
succession planning and talent development, and discussed progress on the Group ExCo succession
plan. The Board supported the Group Chief Executive in making key appointments, including the CEO of
Wealth Management and the Global Head of Client Group.
Board discussions were focused on the impact of organisational change on our people and culture. The
Board also supported management in considering the culture and behaviours needed to achieve our
organic growth goals, develop enterprise-wide leadership and drive accountability, as well as the need to
embed a culture that is both diverse and inclusive.
Governance
– A long-term approach to
Board evolution
– Active oversight by the
Board of reputation
The Board reviewed the Company’s reputation, considering its main drivers, potential threats, and related
reputation management strategies.
The Nomination and Governance Committee focused on longer-term Board succession planning. The
Committee assessed the existing skills and experience on the Board against those anticipated to be
needed over the next two to five years. This assessment informed the role profiles for the independent
non-executive Director recruitment. The Committee met with several candidates for the independent
non-executive Director positions, of whom the shortlisted candidates were interviewed by the Board.
In November 2025, the Nomination and Governance Committee reviewed the effectiveness of the
refreshed Governance framework, including the adoption of the related governance principles by the
subsidiaries within the Group. In addition, there has been increased engagement between the Board and
subsidiary boards, including joint training sessions and opportunities for informal networking.
Strategic report Governance Financial statements Shareholder and sustainability information
2025 Board objectives
48 Schroders Annual Report and Accounts 2025
2025 Board performance review
The Board approved the appointment of Christopher Saul Associates to conduct the 2025 Board performance review (the performance
review), which included an assessment of the Board, its principal Committees and individual Directors. The performance review also
considered how effectively the Board understands the views and requirements of stakeholders. The Chair and the Senior Independent
Director were available to the reviewer as escalation points if required. Christopher Saul Associates has no other connection with
theCompany.
The performance review included one-on-one interviews with each Director and the Group Company Secretary, as well as members of the
Group ExCo and a number of other non-Board members who attend or support the Board and its Committees, including the Company’s
external auditor. The performance review also included the evaluator attending a cycle of meetings of the Board, Audit and Risk Committee,
Remuneration Committee and Nomination and Governance Committee, as well as a review of Board and Committee minutes, papers and
other corporate documents.
A Board performance review report, including a summary of the performance of the Board’s principal Committees, was presented to the
Board in January 2026. Iain Mackay, as Senior Independent Director, discussed the feedback regarding the performance of the Chair with
the rest of the Board before giving feedback to the Chair.
The performance review concluded that the Board and its Committees were working effectively, with positive progress made in relation to
Board dynamics in the last twelve months. The new executive Directors had settled into their roles, with a good relationship evident
between them, and with the non-executive Directors. The relationship between the Chair and the Group Chief Executive was effective, with
a clear distinction between the two roles maintained. The Senior Independent Director received positive feedback in relation to his
transition into the role during the year. The Board was considered collegiate, highly professional and well led by the Chair, with meetings
that were thoughtfully well structured. Looking ahead, with the focus on sustainable growth, the Board was advised to challenge itself on
the “must wins” for the year ahead. The non-executive Directors remained well informed, engaged throughout and contributed
thoughtfully to the discussion in meetings.
The Audit and Risk, Nomination and Governance, and Remuneration Committees were effective and well integrated with the Board. Further
details on the findings of the Committee reviews are included in each of the individual Committee reports.
The executive Directors work well together and the Group ExCo have a constructive and respectful relationship with the Board. The review
suggested steps to deepen relationships between the Board and the Group ExCo and to allow non-executive Directors to become more
familiar with the capabilities of the Group ExCo members as part of the Board’s focus on succession and talent development.
Board oversight of subsidiaries had increased and become more prominent during the year, which was welcomed. The Board’s
engagement with clients was considered appropriate, and its relationship with regulators was positive and constructive.
Communicationwith employees, particularly regarding transformation plans, showed careful consideration for the impact on
peopleduring Board discussions.
The review made several recommendations for the Board to consider, including:
– Succession: Continued active focus on the plans for non-executive Director recruitment, and on executive succession, during the
course of 2026.
– Strategy: Continued oversight of longer-term growth plans for Wealth Management and Schroders Capital and a clear articulation of
the value provided by the diversified group.
– Risk and compliance: Continued focus from the Audit and Risk Committee on the refinement of the Risk Management operating
model and respective roles of first and second lines of defence.
– People: Close monitoring of the people risks that inevitably arise during a period of transformation.
– Key subsidiaries: Continued enhancement of the oversight of the effectiveness of subsidiary governance.
The Chair and the Group Company Secretary were tasked with taking the recommendations forward.
2026 Board objectives
Strategy
– Oversight of the
execution of longer-term
growth plans, particularly
for Wealth Management
and Schroders Capital,
with a continued focus
on product innovation
– Ensuring strategic plans
remain agile and
responsive to evolving
market conditions,
including the impact
oftechnology
Clients
– Continued focus on
reputation and client
satisfaction
– Greater focus on
salesperformance,
including deep dives
bybusiness area
People
– Executive management
succession planning,
including the
development of
enterprise-wide
leadership skills
– Continued monitoring
ofhow the desired
organisational culture
isembedded
Risk and Governance
– Through the Audit and
Risk Committee,
refinement of the Risk
Management operating
model and respective
roles of first and second
lines of defence
– Building stronger
relationships with
theboards of
subsidiarycompanies
Strategic report Governance Financial statements Shareholder and sustainability information
2025 Board objectives continued
49 Schroders Annual Report and Accounts 2025
As an outcome of the external Board performance review process, the Board agreed a number of objectives under the major themes of
strategy, clients, people, risk and governance.
Securing future leadership in
a time of change
Dame Elizabeth Corley
Chair of the Nomination and Governance Committee
Committee membership
Dame Elizabeth Corley (Chair)
Claire Fitzalan Howard
Rakhi Goss-Custard
Ian King
Iain Mackay
Leonie Schroder
Annette Thomas
Frederic Wakeman
Deborah Waterhouse (until 1 May 2025)
Matthew Westerman
See page 41 for meeting attendance.
I am pleased to present my report as Chair of the Nomination
and Governance Committee.
In my report last year, I outlined a number of priorities for the
Committee in 2025. These included enhancing Board composition,
strengthening executive succession planning to ensure it remains
effective and agile, and building a robust internal talent pipeline for
future executive leadership.
The appointment of independent non-executive Directors was an
important focus for the Committee this year. In February 2026, we
announced our intention to appoint William Lin to the Board with
effect from May 2026, bringing extensive international and
transformation expertise. Our search for additional independent
non-executive Directors will continue during the first half of 2026.
Looking ahead, the Committee will continue to focus on Board
composition and non-executive Director recruitment and on its
oversight of executive succession planning to strengthen leadership
capability across the Group further.
Key areas of focus during 2025
– Considered Board succession planning, including the Board composition and skill set required to oversee the performance of the
business over the medium term, and led the search and appointment process for a new independent non-executive Director
– Discussed, and recommended to the Board, changes to Committee composition and the appointment of Iain Mackay as Senior
Independent Director
– Considered executive management succession planning and talent development
– Monitored progress against the Board’s 2025 objectives
– Oversaw the effectiveness of the corporate governance arrangements for the Company and its subsidiaries
Responsibilities of the Nomination and Governance Committee
The Committee is responsible for keeping under review the composition of the Board and its Committees. It oversees succession
planning for Directors and executive management, monitors inclusion and diversity policies and practices, and considers corporate
governance matters across the Company and its subsidiaries, including Board, Committee and Director performance.
The Committee’s terms of reference are available on the Company’s website at www.schroders.com/board-committees.
Biographical details and experience of the Committee members are set out on pages 36 to 39.
Strategic report Governance Financial statements Shareholder and sustainability information
Nomination and Governance Committee report
50 Schroders Annual Report and Accounts 2025
Board responsibilities
During the year, the Committee oversaw a number of changes to
independent non-executive Director responsibilities. In anticipation
of his completing nine years on the Board in 2026, and after seven
years in the role, Ian King stood down as Senior Independent
Director and was succeeded by Iain Mackay, with effect from 1 May
2025. In January 2026, Annette Thomas succeeded Ian King as our
designated non-executive Director responsible for engagement with
the workforce.
Iain Mackay was appointed as a member of the Remuneration
Committee in September 2025. Iain’s appointment reinforces the link
between the Audit and Risk Committee and the Remuneration
Committee, promoting a fully integrated approach to reward, risk
and performance oversight. Iain brings financial expertise and deep
understanding of risk management to the Committee.
In January 2026, the Company announced that Frederic Wakeman
will succeed Matthew Westerman as Chair of the Remuneration
Committee following the conclusion of the 2026 AGM. This transition
reflects Matthew’s appointment as non-executive Chair of Schroder
& Co. Limited, subject to regulatory approval. Frederic, who has
served on the Committee since August 2024, brings extensive
experience in leading high-performing, client-focused businesses,
astrong focus on financial performance, and deep knowledge of
both public and private markets. Matthew will remain a member
ofthe Committee.
Board succession planning
The Committee undertakes a thorough annual review of the Board’s
composition to support discussions on succession planning. During
the year, the Committee initiated a search for additional non-
executive Directors. This followed Deborah Waterhouse’s decision
not to seek re-election at our 2025 AGM and in anticipation of the
planned retirement of Rakhi Goss-Custard, who will reach her nine-
year tenure in 2026. On behalf of the Board, I would like to thank
Deborah and Rakhi for their valuable contributions during their time
as Directors.
The Board’s skills matrix informed the search process by identifying
both the existing strengths and the capabilities required to support
the Group’s long-term strategy. The Board is well balanced, with
strong coverage across core areas including strategy, asset
management, clients and people and reward. However, the matrix
highlighted opportunities to strengthen skills in digital innovation
and transformation, international expertise, recent executive
experience, and the continuity of senior Board-level insight.
Candidates were sought whose experience would complement the
Board’s existing capabilities and address areas where future gaps
were anticipated.
To support the process, the Committee engaged Nurole and Egon
Zehnder. In line with Provision 20 of the UK Corporate Governance
Code, the Committee confirms that Nurole has no connection with
the Company other than its work advising on Board appointments.
Egon Zehnder provides the Company with additional services,
including executive coaching and mentoring, leadership
assessments and development programmes.
A sub-committee was established to oversee the recruitment
process, including the initial shortlisting of candidates. Interviews
were conducted by all Directors, following which the Committee
made a formal recommendation to appoint William Lin to the Board
for approval.
William brings extensive international experience and expertise in
leading large-scale transformation across complex global
organisations. His global perspective, including deep experience in
Asia, will be a valuable addition to the Board.
All Directors receive a comprehensive and tailored induction plan,
including internal appointments. Further details on the induction
process can be found on page 43.
Executive succession planning and talent development
The Committee reviewed executive succession plans during the year,
with a focus on the strength and depth of the leadership team
supporting the executive Directors. In July, it approved a refreshed,
enterprise-wide approach to succession planning, aimed at building
a future-ready leadership pipeline with a particular emphasis on
enterprise leadership, transformation, and cross-functional
capability. A fair, transparent and systematic talent assessment
process underpins this approach, enabling targeted development
programmes to address capability gaps and reinforce areas of
strength. The initial focus is on the Group Executive Committee and
functional executive committees, ensuring that credible, high-
potential successors are identified for each role, with clear
development plans in place.
Diversity in recruitment and succession
The Committee considers different aspects of inclusion and diversity
in both appointment and succession planning. This helps to develop
a pipeline that is diverse, inclusive and provides equal opportunities.
Our Board Diversity Policy is on page 52 and further detail on
inclusion and diversity initiatives can be found on page 92.
Directors standing for election and re-election
At the February 2026 meeting, the Committee agreed that all
Directors standing for re-election continue to make valuable
contributions to the Board’s deliberations and recommended their
re‑election. This recommendation includes Ian King, who has served
on the Board for more than nine years. The Committee considered
his tenure in the context of the Board’s overall composition and
remains satisfied that he continues to provide effective challenge
and demonstrates independence of mind and objective judgement.
The recommendation also includes Leonie Schroder and Matthew
Westerman, who will have served on the Board for more than six
years at the date of the AGM. In making this recommendation, the
Committee considered feedback from the external Board
performance review conducted by Christopher Saul Associates, and
the outcome of the Board succession planning referred to above.
As required by the UK Listing Rules, the appointment of independent
Directors must be approved by a simple majority of allshareholders
and by a simple majority of the independent shareholders. Further
details are set out in the 2026 Notice of AGM.
Oversight of Board objectives
In 2024, the Committee’s remit was expanded to include oversight of
governance matters. As part of this, the Committee assumed
oversight of progress against the Board objectives set out in the
2024 Annual Report which were aligned to the themes of strategy,
clients, people and governance, while maintaining a focus on
operational delivery.
Throughout the year, the Committee reviewed the objectives and the
progress made against them. It identified opportunities to enhance
the objectives, particularly in relation to transformation, and
emphasised the importance of embedding the right behaviours and
reinforcing a culture of accountability. As a result, an additional
objective was introduced to reflect the Board’s role in shaping,
evolving and embedding the Group’s culture. Progress against these
objectives is described on page 48.
Strategic report Governance Financial statements Shareholder and sustainability information
Nomination and Governance Committee report continued
51 Schroders Annual Report and Accounts 2025
Subsidiary governance
The responsibilities of the Committee include reviewing and makinga
recommendation to the Board regarding approval of
thecorporategovernance arrangements of the Company and its
subsidiaries, andassessing the ongoing operation and effectiveness
of those arrangements. The Committee also monitors whether these
arrangements adhere to best practice in corporate governance,
recommending changes to the framework to the Boardasnecessary.
During the year, the Committee oversaw the continued
implementation of the Group Governance framework, with a focus
on enhancements across technology, processes and people. Key
developments included the transition to a new governance
technology platform, aimed at strengthening oversight and
reporting capabilities, and the introduction of a Global Entity
Governance Policy, which sets a baseline standard of governance for
all subsidiaries globally. In addition, the Committee reviewed
proposals to strengthen the appointment process for internal
directors to subsidiary boards, supporting consistency and
transparency across the Group’s governance practices.
Committeemembers took opportunities to engage with our
subsidiary non-executive Directors during the year, including joint
training sessions and more informal networking. The Committee
noted that Matthew Westerman’s appointment as Chair of Schroder
& Co. Limited, subject to regulatory approval, will further strengthen
the connection with the Schroder & Co. Limited Board and between
the Wealth Management Audit and Risk Committee and the Board
Audit and Risk Committee.
Assessing Board and Committee performance
A key role of the Committee is to oversee the annual Board and
Committee performance review. In line with best practice, a formal
and rigorous review of Board and Committee performance is
conducted annually, with an externally facilitated review conducted
every three years. Our last external review was conducted in 2022.
In2025, the Board performance review was conducted externally by
Christopher Saul Associates.
The process, findings and resulting recommendations can be found
on page 49 and have been reviewed by Christopher Saul Associates.
Committee performance in 2025
The annual review of the Committee’s effectiveness was undertaken
as part of the overall external Board performance review process
which is described on page 49. Governance matters, including
subsidiary oversight, had been managed well. Areas identified as
requiring further focus and clear, actionable plans during 2026
included Board and executive succession planning.
Priorities for 2026
As we move into 2026, the Committee will continue to focus on
Board composition to oversee the delivery of the Group’s strategic
priorities and support organisational change. Recruitment of non-
executive Directors will remain a focus, with continued emphasis on
maintaining a balance of skills, experience, diversity and
independence aligned to the long-term needs of the business.
TheCommittee will also maintain oversight of executive succession
planning, supporting the targeted implementation of the refreshed
enterprise-wide approach to strengthening leadership capability
across the Group. In addition, the Committee will focus on
embedding the Entity Governance Principles and further developing
the subsidiary governance dashboard to enhance transparency and
accountability for governance across the organisation.
By order of the Board.
Dame Elizabeth Corley
Chair of the Nomination and Governance Committee
11February 2026
Policy on Board diversity
The Board recognises the importance of diversity and that it is a wider issue than gender and ethnicity.
We look for diversity of skills, thought, experience and background, which is important for the effectiveness of our Board, its Committees
and the management team. Diversity across our workforce is discussed by the full Board. The specific diversity aspirations for the Group
are set by the Board, on recommendation from management, as part of our People and Culture updates. All appointments are made
onmerit.
The Board understands the value of gender and ethnic diversity and is committed to having a minimum of 40% of Board positions held
by women and to meet the Parker Review’s recommendations of having at least one Director from an ethnic minority on the Board. As at
11February 2026, the Board meets both the gender and ethnicity recommendations, with women comprising 58% of the Board and two
Directors from an ethnic minority. We intend only to use the services of executive search firms which have signed up to the Voluntary
Code of Conduct for Executive Search Firms.
Details of our inclusion and diversity initiatives, progress toward achieving our objectives, and gender diversity statistics for both the
Board and senior management can be found on page 92.
Strategic report Governance Financial statements Shareholder and sustainability information
Nomination and Governance Committee report continued
52 Schroders Annual Report and Accounts 2025
Strengthening risk management
and controls
Iain Mackay
Chair of the Audit and Risk Committee
Committee membership
Iain Mackay (Chair)
Rakhi Goss-Custard
Frederic Wakeman
Deborah Waterhouse (until 1 May 2025)
Matthew Westerman
See page 41 for meeting attendance.
I am pleased to present the Committee’s report for the year
ended 31December 2025. The Committee has a broad agenda
and plays a key role in overseeing the strength of the
Company’s financial statements and the robustness of the
Group’s system of internal controls and financial and risk
management. We continue to work closely with both senior
management and the external auditor to understand the
changing landscape, both externally and across the business,
and are grateful to Ernst & Young (EY), our external auditor,
fortheir ongoing assurance and challenge.
The Committee recognises the importance of our system of internal
controls and the role it plays in mitigating risk. During the year,
wecontinued to consider updates from management on the
proposed approach to the new requirements for reporting and
assurance of material controls in the revised UK Corporate
Governance Code, which applies from 2026. We carefully considered
our approach to implementation over the year, focusing on refining
our methodology to ensure we have appropriate assurance over our
internal controls.
The transformation activities of the Group were a key consideration
for the Committee over the year, to ensure the effective management
of potential risks and ensure operational resilience has been
appropriately considered in light of structural changes.
TheCommittee was updated on transformation progress and the
oversight undertaken by the second line for transformation risk.
Group Internal Audit activities were re-prioritised over the year to
provide assurance and oversight of transformation across the Group.
In addition, operational resilience remained a key focus, particularly
with increased transformation activities over the year. The Group’s
operational resilience self-assessment, which the Committee
considered, identifies our important business services, provides
information on oversight of critical third parties, sets out impact
tolerances to avoid intolerable harm to our clients, and identifies
areas where we should enhance our operational resilience. The
Committee also considered various operational stress scenarios to
support the Board’s conclusions on the viability and going concern
statement set out on page 34.
Sustainability and climate-related risks, relating to both our business
and the investments we manage, remain an important topic for the
Committee and are considered in our quarterly reports. The
Committee also discussed and was supportive of integrating the
Company’s key sustainability and climate reporting into the Annual
Report for 2025.
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report
53 Schroders Annual Report and Accounts 2025
Role of the Audit and Risk Committee
– The principal role of the Committee is to assist the Board in fulfilling its oversight responsibilities in relation to financial reporting,
financial controls, audit, risk management and internal controls. All members of the Committee are independent non-executive
Directors. Biographical details and the experience of Committee members are set out on pages 36 to 39.
– The Board has determined that members collectively possess the necessary competence for the sector in which the Group operates
based on their previous experience in other organisations. Additionally, the Board considers that Iain Mackay, a chartered
accountant, has the recent and relevant financial experience required to chair the Committee. Invitations to attend all Committee
meetings are extended to the Chair, Group Chief Executive and Chief Financial Officer, and Directors who are not members attend
on an ad hoc basis.
– The Committee also benefits from the advice of the Global Head of Finance, the Chief Risk Officer, the Head of Group Internal Audit
and the Group General Counsel. The Committee also invited other senior management to attend as appropriate. The Chair of the
Wealth Management Audit and Risk Committee (WMARC), who is an independent non-executive Director of Schroder & Co. Limited,
attended one meeting of the Committee and a written update is provided to each meeting on matters related to core elements of
the Wealth Management business. Representatives from EY, including Simon Michaelson, Lead Audit Partner for the 2025 financial
year, attended all of the Committee’s scheduled meetings.
– Private meetings are held with the external auditor in the absence of management. Additionally, private meetings were held with the
Chief Financial Officer, Chief Risk Officer, and Head of Group Internal Audit. These meetings provide an opportunity for any matters
to be raised confidentially.
The Committee continues to play an important role in reviewing
conduct risk in the Group. This includes oversight of the operation
and evolution of our Conduct Risk framework, designed to identify
emerging trends and heightened areas of risk. Conduct risk is
informed by a number of elements, including conduct risk appetite
statements and oversight by the second line of defence.
In the face of escalating cyber attack threats, the Committee
continued to prioritise cyber security and technology risk while
considering metrics, challenging progress and evaluating the
necessary technology and operational models to assess the Group’s
readiness for evolving threats, including an external assessment of
the Group’s information security controls.
I would like to thank Deborah Waterhouse for her significant
contribution over her five years on the Committee. I would also like
to thank James Beszant and welcome Simon Michaelson as our
LeadAudit Partner for the 2025 financial year. I am grateful to
management, the external auditor and all members of the
Committee for their support in 2025, and look forward to our
continuing work in 2026.
Iain Mackay
Chair of the Audit and Risk Committee
11February 2026
The Committee’s primary responsibilities are
the oversight of:
Financial reporting, financial controls
and audit
– The content and integrity of financial and Pillar 3 reporting
– The appropriateness of accounting estimates and judgements
– The effectiveness of the Financial Control framework,
including considering the appropriateness of the going
concern and viability statements
– The effectiveness and independence of the external auditor
– The recommendation to the Board of the appointment of the
external auditor
Risk management and internal controls
– The Group’s Risk and Control framework, whistleblowing
procedures and the Financial Crime framework
– The Group’s Internal Capital Adequacy Assessment Process
(ICAAP), Internal Liquidity Adequacy Assessment Process
(ILAAP), wind-down plan, risk appetite, recovery plan,
resolution process and operational resilience self-assessment
– The Group’s conduct risk processes and procedures
– The Group’s regulatory compliance and conduct processes
and procedures, and its relationships with regulators and
compliance monitoring
– The Group’s Internal Audit function
– The Group’s legal risk profile, emerging litigation risks
anddisputes
– Emerging and thematic risks that may have a material impact
on the Group’s operations
– Information and cyber security, technology risk and
resilience, and the emerging risks of AI
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report continued
54 Schroders Annual Report and Accounts 2025
Financial reporting and financial controls
– As part of the Group’s annual reporting cycle, the Committee
considered the 2024 Annual Report and Accounts and 2025
half-year results, including financial estimates and judgements
and governance considerations.
– Ahead of preparing the 2025 Annual Report and Accounts,
updates were provided on the effectiveness of our internal
controls, and on the Group accounting policies. The going
concern and viability statements, Pillar 3 regulatory disclosures
and climate-related disclosures within the annual report were
also considered.
– In relation to the 2025 half-year results, the Committee
considered changes to the presentation of the Group income
statement and associated KPIs.
– The Committee evaluated the proposal to accelerate the
Group’s financial and corporate reporting by three weeks for
the 2025 year end, considering the perceived risks and
implications in its implementation.
– The Head of Group Tax updated the Committee on the Group’s
tax strategy, our approach to tax risk, the key tax risks facing the
Group, and how the Group’s effective tax rate is expected to
evolve in the coming years.
External audit
– When considering the 2024 Annual Report and Accounts, the
Committee assessed the oversight and independence of the
external auditor and audit effectiveness.
– In relation to audit quality and effectiveness, the Committee
discussed the results of the external auditor feedback
questionnaire and noted the areas of improvement that had
been identified. EY presented plans to respond to the feedback,
and these were discussed by the Committee. The Committee
reviewed EY’s audit plan for 2025, including key audit matters
and focus areas. Fees for non-audit services were reviewed and
approved by the Committee.
– The Committee reviewed and discussed the findings of the
Financial Reporting Council (FRC)’s 2024/25 audit quality
inspection report, and considered any impact on the Company’s
audit approach and testing strategy.
– Policies for safeguarding the independence of the external
auditor were considered and reapproved.
– The Committee received an update on management’s
preparations for the upcoming external audit tender.
Internal Audit
– As part of the governance considerations for the 2024 Annual
Report and Accounts, the Committee considered the annual
assessment of the Group’s governance and Risk Management
and Control framework, conducted by Group Internal Audit.
– The Internal Audit Charter was reviewed and reapproved.
– Looking ahead to 2026, the Committee considered and
approved the 2026 internal audit and compliance testing plan,
which is based on an assessment of the risks the business faces.
Risk management and internal controls
– When reviewing the 2024 Annual Report and Accounts and
Pillar3 disclosures, and 2025 half-year results, the Committee
considered the Group’s key risks and Risk Management
framework. The Chair of the WMARC provided an update on the
activities of the WMARC and its oversight of the financial
reporting, risk management and internal controls of the core
business entities within Wealth Management.
– The Committee considered the ICAAP, ILAAP, Group wind-down
plan, Group recovery plan and operational resilience self-
assessment for recommendation to the Board. The approach
taken for the Group’s resolution process was also considered.
The Committee approved the stress scenarios for use in the
Internal Capital and Risk Assessment required for Schroder
Investment Management Limited under the Investment Firms
Prudential Regime.
– Group Financial Crime Compliance provided a review of financial
crime risk, including updates on the regulatory landscape and
effectiveness of the Group Financial Crime framework, and on
the Group’s financial crime control systems.
– Thematic issues were considered throughout the year,
including whistleblowing, our conduct risk oversight,
transformation risk, third party risk management and a deep
dive into our Benchmark Capital business.
– Our Chief Technology Officer and Chief Information Security
Officer provided updates on information security and
technology risk and resilience, including progress against our
cyber strategy, the cyber threat landscape, and the evolution of
AI and other emerging technology risks, which was
supplemented by an external information security assessment
of the Group. The Committee provided oversight of structural
changes in Group Technology as part of the Group’s wider
transformation activities.
– The Committee considered transformation risk as part of the
wider Group’s objective of implementing strategic change,
focusing on managing structural and operational risks and
ensuring effective oversight and controls had been
implemented and maintained.
– The Committee reviewed climate-related disclosures in line with
the Task Force on Climate-related Financial Disclosures (TCFD)
framework and recommended the Group’s Climate Report 2024
to the Board for approval. Sustainability risks were also
considered as part of the Committee’s review of key risks.
– The Chief Risk Officer outlined a proposal on implementing the
new requirements for reporting and assurance of material
controls in the revised UK Corporate Governance Code; the
proposal highlighted the planned assurance for material
controls, leveraging our existing Internal Control framework
where applicable.
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report continued
55 Schroders Annual Report and Accounts 2025
Key areas of focus during 2025
The key areas that the Committee considered are set out below. In addition, at each quarterly meeting the Committee received updates
from Group Finance, Internal Audit, Risk and Compliance, Legal and the external auditor, covering ongoing projects and the key issues
that had arisen since the last meeting. The Committee also reviews a quarterly dashboard of metrics to monitor key risks, as well as
internal audit metrics and the status of relevant change projects and sustainability targets.
Significant accounting estimates and judgements
The preparation of the financial statements requires the application of certain estimates and judgements. The material areas of estimation
and/or judgement are set out in the note on the presentation of the financial statements on page 151. Each of these areas is considered by
the Committee based on reports prepared by management.
During 2025, the Committee considered the potential implications of construction issues identified in respect of the head office building in
London. The Committee continues to monitor ongoing developments onthis matter. The Committee also considered the estimates applied
in the valuation of the financial liability to acquire outstanding interests in certain businesses, including Greencoat. In 2025, this resulted in a
reduction to the carrying value of the liability which has been recognised in equity. Additionally, the Committee considered changes to the
presentation of the financial statements made in 2025 and the impact of the transformation programme. This included the recognition and
separate presentation of transformation costs and the accounting for portfolio restructuring activity, most notably the sale of the Group’s
stake in Scottish Widows Schroder Wealth Holdings Limited (SPW) as part of the transaction to regain full ownership of Cazenove Capital. The
most significant estimates and judgements in respect of the 2025 financial statements relate to the accounting for the defined benefit
pension scheme and carried interest. The Committee’s agreed actions are summarised in the table below.
Throughout the year, the Committee receives reports from the external auditor, EY. These reports set out the audit procedures performed,
challenges raised to management, and conclusions reached on areas of judgement and estimation. Further information on how EY
challenged management is included within the Independent auditor’s report on pages 175 to 181.
Significant estimates and judgements Action and conclusion
Pension scheme
The Group’s principal defined benefit pension scheme (Scheme)
is in respect of certain UK employees and former employees.
The Scheme was closed to future accrual on 30April 2011 and,
as at 31December 2025, had a funding surplus. The pension
obligation, which was valued as £505.3 million at the year end,
isestimated based on a number of assumptions, including
mortality rates, future investment returns, interest rates and
inflation. The Scheme’s assets are invested in a portfolio
designed to generate returns that closely align with known
cashflow requirements and to hedge the interest rate and
inflation risks.
Group Finance provided the Committee with a report that
included the key financial assumptions which had been applied
by the independent qualified actuaries, Aon Solutions UK
Limited, to determine the Scheme surplus. EY’s report to the
Committee set out its audit procedures and conclusions on the
pension assets and liabilities, including those procedures
completed by EY’s specialists.
The Committee considered and challenged the proposed
assumptions and was satisfied that the estimates
wereappropriate.
Please refer to note 23 for more information on the estimates and judgements made in respect of the Scheme.
Carried interest
The Group recognises carried interest from its Schroders
Capital business. This revenue stream is dependent on the
future value of certain investments that may not crystallise until
an uncertain date in the future. The Group is contractually
committed to make payments to various parties based on a
relevant proportion of carried interest received, including as
part of deferred consideration arrangements.
For financial reporting purposes, the Group is required to
estimate the value of carried interest receivable, which was
£155.8 million as at 31December 2025, in accordance with
therequirements of IFRS15 Revenue from Contracts with
Customers, and the fair value of related amounts payable
basedon the requirements of IFRS9 Financial Instruments.
The key inputs used in determining carried interest comprised
the fair value of the relevant assets on which carried interest
may be earned, future growth rates, the expected realisation
dates and the discount rates.
The Committee received a report from Group Finance,
whichreviewed the assumptions and inputs for estimating
theamounts receivable and payable in respect of carried
interest. The Committee challenged management and
considered the judgement applied in determining the
principalassumptions, and the sensitivity of the relevant
balances to those assumptions.
The Committee discussed the accounting for carried interest
with EY and considered the findings from its audit work. Once
the Committee was satisfied with the estimates and judgements
applied, the estimated carrying values were approved.
The Committee considered the disclosures presented in respect
of 2025 and concluded that they were appropriate.
Please refer to note 2 for the estimates and judgements made in respect of carried interest receivable and amounts payable in
respect of carried interest.
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report continued
56 Schroders Annual Report and Accounts 2025
Financial reporting and financial controls
The Committee reviews whether suitable accounting policies have
been adopted and whether management has made appropriate
estimates and judgements, including those summarised on page
151. The Committee is also required to report to shareholders on the
process it followed in its review of significant estimates and
judgements that it considered during the year, as set out on page 56.
Financial reporting is reliant on there being an appropriate financial
control environment. The Committee receives reports on the existing
control environment as well as plans to enhance controls in the
future, along with progress made against previous planned changes.
These reports provide a detailed summary of the controls that exist
across the Finance function globally and support the Group’s risk
and control assessments. For more details, see pages 25 to 31.
The Committee received reports throughout the year on regulatory,
legal and other matters which may have a potential impact on the
Group’s financial reporting. The matters considered included the
FCA’s industry-wide review of the provision of ongoing services
provided by financial advisers. This did not result in a material impact
on the Group’s financial performance for the year.
The Committee assessed a proposal to accelerate the Group’s
financial reporting for the 2025 year end and considered the
potential risk implications and changes to current processes,
including the impact on financial reporting and internal control.
The Committee considers other controls that might have an impact
on financial reporting. During 2025, the Committee considered
management’s assessment of the cyber risks posed to the Group.
The Committee also reviews the Group’s tax strategy annually.
The financial control environment, including our information
technology environment, is also subject to audit procedures by the
Group’s internal and external auditors. After considering reports
from Group Finance, Internal Audit and EY, the Committee
considered that an effective system of internal controls had been
inplace during the course of 2025.
The Committee conducted an in-depth review of the Group’s
financial projections and the application of appropriate stress
scenarios. The Committee took into account the impact of risks,
including climate change and prevailing macroeconomic factors,
andwas able to recommend that the Board can make the viability
statement, as set out on page 34, and to support the going concern
basis of preparation of the financial statements.
Legal
Legal reports provide the Committee with information about
emerging legal risks and notable developments in new law and
regulation. The reports also provide detail on any material ongoing
disputes and litigation in which the Group is interested or may have
exposure. During the year, notable topics on which the Committee
was briefed included progress in new product initiatives, such as
active ETFs and implementation of the FCA’s new sustainability
product labelling regime, developing UK regulation in employment
and corporate reporting, as well as policy changes relevant to
Schroders’ offerings in the EU, the US and Asia.
Risk management and internal controls
The Board has overall responsibility for the Company’s system of
internal controls, the ongoing monitoring of risk and internal control
systems, and for reporting on any significant failings or weaknesses.
The system of controls is designed to manage rather than eliminate
the risk of failure to achieve the Group’s strategic objectives, and can
only provide reasonable assurance against material misstatement or
loss. The Board has delegated to the Committee responsibility for
monitoring and reviewing the effectiveness of the Risk Management
and Internal Control framework.
The Committee carried out the annual assessment of the
effectiveness of internal controls during 2025, including those
related to the financial reporting process. The Committee also
considered the adequacy of the Group’s risk management
arrangements in the context of the Group’s business and strategy.
Incarrying out this assessment, the Committee reviews the results of
the annual Risk and Control Assessments, any significant risk events,
and actions taken to remediate these. The Committee also
considered reports from the Global Head of Finance, Group General
Counsel, Chief Risk Officer, Head of Group Internal Audit and EY.
Thisenabled an evaluation of the effectiveness of the Group’s
Internal Controls framework. As part of the internal control process,
each member of the Group Executive Committee has attested to the
appropriateness and adequacy of risk management arrangements in
their area, and has confirmed that appropriate controls are in place.
The Group continually works to enhance systems to support and
improve the control environment.
Fair, balanced and understandable
A key focus for the Committee is its work in assisting the Board in confirming that the Annual Report and Accounts, when taken as a
whole, is fair, balanced and understandable, and assessing whether it provides the information necessary for shareholders to assess
theGroup’s position and performance, business model and strategy. In assessing this, the Committee considered the key messages
communicated in the 2025 Annual Report and Accounts, as well as the information provided to the Committee and the Board as a
wholeduring the year.
The Committee, having completed its review, recommended to the Board that, when taken as a whole, the 2025 Annual Report and
Accounts is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Group’s position
and performance, business model and strategy.
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report continued
57 Schroders Annual Report and Accounts 2025
UK Corporate Governance Code
During the year the Committee continued to review progress against
the key changes contained in the UK Corporate Governance Code
affecting the Group, being the requirement for the Board to provide
a declaration of the effectiveness of our material controls, as set out
in Provision 29 of the Code.
Over the year, material controls were identified and debated by the
Committee, and consideration was given to the current assurance
processes and broader Risk Management and Compliance
framework. The Committee also discussed a proposed plan for
implementation, which is ongoing and includes comprehensive
actions over 2026 to ensure clear understanding and ownership
fordemonstrating control effectiveness.
Risk and Compliance
Risk and Compliance reports set out changes in the level or nature
ofthe key risks faced by the Group. These reports also cover
developments in the approach to managing these risks, the
procedures in place to identify and manage emerging risks,
andinformation on significant operational risk events.
The reports outlined the Group’s management of key regulatory
engagements and change programmes throughout the year.
Thisincluded changes to our processes for regulatory change
horizon scanning, tracking and ownership, and the planning and
execution of the compliance assurance programme covering testing
and monitoring. The reports explained how specific emerging risks
were being managed and made reference to our regular cross-
functional emerging risk meetings. These provide a forum to
identifyand communicate emerging risks, enabling them to be
escalated to relevant individuals and management appropriately.
Additional specific reports allowed the Committee to consider a
range of factors when determining the key emerging and thematic
risks and uncertainties faced by the Group. These included
assessments of risk tolerance and stress testing of the Group’s
capital and liquidity positions, as well as the production of the
Group’s operational resilience self-assessment, recovery plan,
resolution process and wind-down plan. The Committee also
considered the management of third party risks and risks related
tothe Benchmark Capital business.
During the year the Committee reviewed the Group’s arrangements
in relation to conflicts of interest, financial crime, information and
technology risk, and conduct risk. Additionally, the Committee
considered regulatory change and the supervisory horizon,
engagement with regulators, cyber resilience, oversight of third-
party suppliers, and the Group’s whistleblowing protocols.
TheCommittee also received updates from Group Financial Crime
on the programme of work for strengthening the Group’s Financial
Crime framework and compliance with global financial crime
regulations. The Committee reviewed the Group's key risks and the
proposed principal risk disclosures. To provide stakeholders with a
more integrated view of the risks most material to the Group, the
Committee agreed to consolidate several risks that were previously
reported separately, recognising they arose due to similar factors.
Further information can be found in the “Risk management” section
of the Strategic report set out on pages 25 to 31.
Internal Audit
The Committee has authority to appoint or remove the Head of Group
Internal Audit, who reports directly to the Chair of the Committee.
During 2025, the Committee approved the Internal Audit Charter.
The Committee also has responsibility for approving the Internal
Audit budget and plan and being satisfied that the function has
appropriate resources and skills and continues to be an effective and
valued assurance function within the Group. The function monitors
developments in internal audit practices and undertakes quality and
assurance activities. In satisfying itself as to the quality, experience
and expertise of the function, the Committee reviews reports on
progress against a rolling plan of audits approved by the Committee.
These reports cover any significant findings from audits performed,
including any observations on culture and recommendations to
improve the control environment, and their subsequent remediation.
In addition, the Committee had regular interaction with the Head of
Group Internal Audit, both at Committee meetings and through
other regular meetings outside the formal schedule.
During 2025, a broad range of audits were conducted across the
Group. The 2025 internal audit plan was regularly reassessed by the
Committee and Internal Audit to allow for the appropriate allocation
of resources and to remain in line with the risk profile of the
business; it was also redesigned over the year to create capacity
forthe audit of key Group transformation activities.
The annual internal audit and compliance testing plans are
developed using a risk-based approach to provide proportionate
assurance over the Group’s controls for the key risks set out on
pages 25 to 31. For example, as in previous years, in 2026 a range of
audits will be undertaken to test the adequacy of aspects of the
Group’s cyber security and other technology risks. Planned audits
include coverage of risks arising from our transformation
programme, alongside operational, business and strategic risks.
Aswell as undertaking internal audit projects, senior Group Internal
Audit employees attend relevant oversight and management
committees and regulated entity Board meetings to provide input
and challenge on the topics discussed.
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report continued
58 Schroders Annual Report and Accounts 2025
Oversight of the external auditor
Auditor oversight conclusion
The Committee is satisfied with EY’s work and that it is objective and
independent. Accordingly, the Committee has recommended to the
Board that a resolution be put to the 2026 AGM for the
reappointment of EY as external auditor, and the Board has
accepted this recommendation. When making the recommendation
to the Board, the Committee confirmed that the recommendation
was free from influence by a third party and that no contractual term
of the kind mentioned under Article 16(6) of the Audit Regulation had
been imposed on the Company.
The Committee places great importance on the quality, effectiveness
and independence of the external audit process. The Committee
oversees the relationship with EY, including safeguarding
independence, approving non-audit fees, recommending the
auditor’s appointment at the AGM and determining the
auditor’sremuneration.
The external audit was last put out to tender in 2016, with EY starting
as the Group’s auditor for the financial year commencing 1January
2018. In line with regulation, the Company will commence a
competitive audit tender in 2026, led by the Committee, which will
complete by 2027 at the latest.
Ahead of recommending the reappointment of the external auditor
to the Board and shareholders, we perform an assessment of
external audit quality to ensure we maintain the highest possible
standards. James Beszant was the Lead Audit Partner from the 2023
audit to the conclusion of the 2024 audit. At that time, having served
on the audit team since the 31December 2018 year end, James was
required to rotate after the 31December 2024 year end, and Simon
Michaelson has succeeded James as Lead Audit Partner for the 2025
audit. The Committee confirms that the Company has complied with,
throughout the year under review and as at the date of this report,
the provisions of the Competition and Markets Authority (Penalties)
Order 2014 relating to the UK audit market for large companies.
During the course of the year, the Committee did not make any
changes to the scope of the audit as it concluded that it was sufficient.
Assessment of audit quality and effectiveness
The Committee is responsible for evaluating the performance of the
external auditor. In February 2025, ahead of consideration of the
2024 Annual Report and Accounts, the Committee received initial
feedback on the conduct of the 2024 audit, which identified no
significant areas of concern. A full assessment of the external auditor
was carried out by way of a questionnaire prepared in accordance
with the FRC’s guidance and completed by key stakeholders.
Interviews with senior managers and Group Finance were also held.
The findings of the questionnaire were presented to the Committee
in May 2025. EY generally scored highly in the auditor effectiveness
questionnaire and was assessed to have delivered an effective audit
in its seventh year. Areas of improvement were identified and
discussed with EY to allow for enhancements to be made ahead of
the 2025 audit.
The Committee reviewed the 2025 external audit plan presented to
the Committee in May 2025. The plan included considering the
impact of business transformation and strategic change, including
accounting for potential restructuring costs and the implications of
the acceleration of the year-end reporting cycle on existing
processes and audit strategy. Updates were received from the
external auditor throughout the year, demonstrating that
professional scepticism had been applied through challenge of
judgements, estimates and disclosures. Matters arising from the
audit were communicated to the Committee on an ongoing basis.
The Committee reviewed and discussed the findings of the FRC’s
audit quality inspection report results for EY. The Committee
discussed the impact on the Schroders audit plan, and how EY
maintains and monitors a high-quality audit generally, noting the
importance of continued investment in the digitalisation of audit
procedures through AI capability, allowing more focused time on
analysis of judgements and risks. EY undertakes a range of
processes that are designed to promote, embed and monitor audit
quality. The structure of the audit team has been designed by the
Lead Audit Partner to deliver and maintain a high-quality audit.
EY continues to assess the structure, experience and knowledge of
the team, with a view to maintaining and enhancing audit quality
andencouraging collaboration. In making this assessment,
theCommittee and EY have discussed and considered several Audit
Quality Indicators (AQIs). These include: audit planning milestones;
hours spent; internal and external reviews and results; training
undertaken and experience of the team; senior team members’
responsibilities and their time commitments; and the extent to which
specialists are involved in the audit.
Independence and non-audit services
The Committee has responsibility for monitoring the independence
and objectivity of the external auditor. Since its appointment, EY has
continued to confirm its independence, and this remained the case
during 2025 and prior to issuing its opinion on the Annual Report
and Accounts. In addition to the annual review of effectiveness,
theCommittee considered EY’s independence and objectivity
throughout the year. No Committee member has a relationship with
the external auditor which impacts independence.
A key factor in ensuring auditor independence is the Committee’s
consideration of the provision of certain non-audit services by EY.
The Committee maintains a policy on the engagement of the auditor
for the provision of non-audit services, to safeguard its
independence and objectivity. This policy is reviewed annually and
takes account of relevant regulatory restrictions and guidance in the
jurisdictions in which the Group operates, including those in the UK.
The policy prohibits the provision of certain non-audit services and
contains rules regarding the Committee approving permitted non-
audit services.
Details of the total fees paid to EY are set out in note 3(c) to the
accounts. The policy on non-audit services restricts the appointment
of EY to the provision of services that are closely related to the audit.
Other services, where they are not prohibited, may also be
considered, but these will not normally be approved by the
Committee. Certain services that are provided to the Group are
closely related to the audit but are not required by regulation.
TheCommittee considers that these services are most appropriately
performed by the Group’s external auditor as they support the
statutory audit and provide the external auditor with relevant
insights on aspects of the business, although they are not
necessarily directly related to the financial statements.
Non-audit fees, excluding audit-related assurance services required
under regulation, equated to 17% of audit fees (2024: 16%).
During 2025, non-audit services mainly comprised assurance
services in respect of controls reports and regulatory reporting
normally conducted by the Group’s external auditor. These services
are assurance in nature and are not considered to present a risk
toindependence.
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report continued
59 Schroders Annual Report and Accounts 2025
Audit Committees and the External Audit:
MinimumStandard
In May 2023, the FRC published the Audit Committees and the
External Audit: Minimum Standard, which took effect immediately for
FTSE350 companies on a comply or explain basis. This report
describes how the Committee has complied with each relevant
provision of the Minimum Standard during the year.
Committee performance in 2025
The annual review of the Committee’s effectiveness was undertaken
as part of the overall external Board performance review process
which is described on page 49. The effectiveness of the Committee
was described as very strong. Preparation for meetings was
comprehensive and meetings were well chaired, allowing for focused
discussions and inviting thoughtful contributions and challenge.
Committee’s assessment of internal control and risk
management arrangements
The Committee was content with the effectiveness of the Group’s
processes governing financial and regulatory reporting and controls,
its culture, its ethical standards and its relationships with regulators.
The Committee was also satisfied with the appropriateness and
adequacy of the Group’s risk management arrangements and
supporting risk management systems, including the risk monitoring
processes, the Internal Control framework and the three lines of
defence model.
Priorities for 2026
During 2026, as well as considering standing items of business
informed by the Committee’s terms of reference, the Committee will
also focus on the following areas in 2026:
– refinement of the Risk Management operating model and
respective roles of first and second lines of defence
– cyber security and information technology risks
– operational resilience
– regulatory change
– business transformation and industry thematic risks
– implementing the requirements of Provision 29 of the 2024 UK
Corporate Governance Code
– audit tender.
By order of the Board.
Iain Mackay
Chair of the Audit and Risk Committee
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
Audit and Risk Committee report continued
60 Schroders Annual Report and Accounts 2025
Incentivising the
delivery of our
strategy
Matthew Westerman
Chair of the Remuneration Committee
Committee membership
Matthew Westerman (Chair)
Ian King
Iain Mackay (from 18 September 2025)
Annette Thomas
Frederic Wakeman
See page 41 for meeting attendance and
page 42 for a summary of the responsibilities
of the Committee.
On behalf of the Remuneration Committee, I am pleased
topresent our Directors’ Remuneration Policy, alongside an
overview of executive Director and widerworkforce
remuneration for the 2025 financial year.
2025 was a year of strategic evolution and significant change for the
business. At the start of the year, we welcomed Meagen Burnett and
Johanna Kyrklund to the Board, whose appointments have brought
valuable expertise and fresh perspectives. Their addition further
strengthens the Board’s executive leadership following Richard
Oldfield’s appointment as Group Chief Executive in November 2024.
In March 2025, we announced our three-year transformation
programme, which sets out a clear strategy to create a high-
performing, resilient and growing business. A key priority for the
executive Directors, with support from the Committee, was therefore
to incentivise employees appropriately to deliver on this plan and to
reward them for the achievements to date.
Directors’ Remuneration Policy review
In line with the normal three-year cycle, the Committee performed
acomprehensive review of the Directors’ Remuneration Policy
(thePolicy) during 2025. The Committee undertook extensive
shareholder consultation, offering our major shareholders an
opportunity to provide feedback that helped to shape the final
Policyproposals.
Whilst our review of the current Policy highlighted that its overall
construct remained fit for purpose, it was apparent that changes to
the Policy and its implementation were needed in some areas to
improve alignment to the Group’s strategy. We are therefore
incorporating new metrics into the 2026 annual bonus and long-
term incentive plan (LTIP) scorecards, closely aligned to our ongoing
transformation programme and growth ambitions. At the same time,
we are also proposing to transition to a three-year LTIP performance
period to align more closely to our strategic time horizons.
It was also clear that fixed pay levels for executive Directors had
fallen significantly behind market, having not been increased since
2014. We are therefore proposing material one-off salary increases
for the Group Chief Executive (CEO) and Chief Financial Officer (CFO),
as well as a moderate increase for the Group Chief Investment
Officer (CIO). These increases will take effect within their respective
total remuneration caps, and will apply when calculating LTIP grants
and minimum shareholding requirements, thereby increasing long-
term shareholder alignment.
The Board has also reviewed the remuneration policy applicable to
independent non-executive Directors (INEDs) and will be introducing
a minimum shareholding requirement of 100% of base fees, to be
attained within three years. This Policy change will also increase
alignment between the INEDs and our shareholders.
Full details of the Policy proposal are set out on pages 72 to 78.
Key actions taken in 2025
Directors’
Remuneration
Policyreview
– Detailed review of our current Policy and a range of potential enhancements, with input from an extensive
shareholder consultation.
– Determined changes to bonus and LTIP metrics to drive alignment to our transformation objectives.
LTIPperformance period also adjusted to 3 years to improve alignment to our strategic time horizons.
– Executive Director fixed pay levels reviewed, in line with approach for wider workforce, and increases to
£800,000, £550,000 and £425,000 determined for the CEO, CFO and CIO respectively.
Wider workforce
fixed pay review
– Comprehensive review of our fixed pay levels across the organisation to support competitive pay for our
talent and address inflationary pressure, resulting in salary increases totalling up to £35 million for 2026.
– The total increase will be managed within our stated targets to reduce our cost-to-income ratio and achieve
£150 million of annualised cost savings by the end of 2027.
2025 executive
Director outcomes
– Determined annual bonus scorecard outcomes of 96% for the CEO, 99% for the CFO and 88% for the CIO.
– Strengthened long-term shareholder alignment for the second consecutive year, by increasing LTIP grants
within the existing total remuneration caps. This resulted in a LTIP grant of £2.4 million for the CEO for 2025
(from £1.5 million for 2024) whilst the CFO and CIO will be granted £1.1 million and £1.0 million respectively.
2022 LTIP vesting – Determined an expected outcome of 20% for the 2022 LTIP, the performance period for which ended on 31
December 2025, for our previous executive Directors, Peter Harrison and Richard Keers.
Strategic report Governance Financial statements Shareholder and sustainability information
Remuneration report
61 Schroders Annual Report and Accounts 2025
Role of the Remuneration Committee
The principal role of the Committee is to assist the Board in fulfilling its oversight ofexecutive Director and wider workforce
remuneration. All members of the Committee are independent non-executive Directors. Biographical details and the experience of
members are set out on pages 36 to 39. The Board has determined that, by virtue of their previous experience gained in other
organisations, members collectively have the competence required relevant to the sector in which the Group operates.
The Committee’s primary responsibilities include:
– reviewing the Group’s remuneration strategy and recommending the Directors’ Remuneration Policy to theBoard
– determining the remuneration of theGroup Chair and the executive Directors within the Policy approved byshareholders
– determining the level and structure ofremuneration for other senior executives (including members of the Group Executive
Committee (Group ExCo), the Chief Risk Officer, the Head of Group Internal Audit and the Group Company Secretary), monitoring
the level and structure of remuneration forother material risk takers, and overseeing remuneration more broadlyacross the Group
– recommending to the Board theannual spend on variableremuneration
– reviewing the design and operation ofshare-based remuneration, other deferred remuneration plans and employee carried
interest-sharing arrangements
– overseeing any major change in theemployee benefits structure throughout the Group
– reviewing remuneration disclosures and compliance with relevant requirements
– receiving and considering feedback from shareholders and representative shareholder bodies.
The Committee’s terms of reference areavailable on our website at www.schroders.com/board-committees.
Approach to wider workforce remuneration
Our people are paramount to the successful delivery of our strategy.
We need to continue to attract, motivate and retain the best people
tohelp drive the changes we have outlined and deliver the level
ofperformance we aspire to achieve. One component of this is
ensuring that our fixed pay levels remain competitive,
fairandattractive.
In 2025, we performed a detailed firm-wide salary review and
benchmarking process with the aim of addressing areas where fixed
pay had fallen behind competitive market levels. At the same time,
we aimed to adjust for inflationary pressure in many of the countries
in which we operate, particularly for our more junior employees. As a
result of this exercise, we will deliver salary increases for the majority
of our workforce, with material increases targeted at individuals in
areas of our business where we were behind market.
The total increase of up to £35 million will be managed within our
stated targets to reduce our cost to income ratio and achieve
£150million of annualised cost savings by the end of 2027.
As set out above, fixed pay levels for the executive Directors have
also been reviewed, in line with the approach taken for the wider
workforce and using similar comparator groups. Further details of
the Group-wide remuneration outcomes are set out on page 63.
2025 executive Director remuneration outcomes
During the first year of our three-year transformation programme,
we have achieved record assets under management (AUM) in
supportive markets and delivered strong investment performance.
We are also outperforming our cost targets and have grown
revenues, resulting in an adjusted operating profit of £756.6 million.
The executive Directors have remained focused on supporting the
delivery of our transformation, with rapid progress and positive
results already realised. Notably, we simplified our operations,
launched our first two European active exchange-traded funds
(ETFs), and regained full ownership of Cazenove Capital. The delivery
on our transformation objectives reflects our commitment to
building a resilient business for the future.
The Committee carefully considered the Group’s achievements,
aswell as individual performance, over the year when determining
the bonus outcomes for the executive Directors. The 2025 annual
bonus scorecard resulted in an outcome of 69% of the maximum
70% for the financial element of the scorecard and between 20% and
30% of the maximum 30% for the non-financial element. As a result,
the overall scorecard outcomes are 96%, 99% and 88% of maximum
for the CEO, CFO and CIO respectively. While these outcomes result
in material increases compared to the prior year, the Committee is
comfortable that they are appropriate in the context of the Group’s
very strong performance in the year. Further details of 2025
performance and outcomes are set out on pages 63 to 66.
In addition to annual bonuses, executive Directors are also eligible
toreceive LTIP awards. For the LTIP awards to be granted in
March2026 in respect of 2025, the Committee determined to
increase the grants within the total remuneration caps for the
second consecutive year, further increasing the weighting towards
long-term performance and alignment with shareholders. This will
result in awards of £2.4 million, £1.1 million and £1.0 million for the
CEO, CFO and CIO respectively.
2022 LTIP vesting
In March 2022, LTIP awards were granted to Peter Harrison and
Richard Keers, the CEO and CFO at the time, subject to performance
conditions over a four-year performance period ending on 31
December 2025. Upon the retirement of Mr Harrison and Mr Keers,
their respective awards were pro-rated to reflect the time served
over the performance period.
We anticipate that the 2022 LTIP awards will vest in March 2026 at
20% of maximum. This outcome reflects earnings per share (EPS)
and net new business (NNB) metrics lapsing in full, alongside full
achievement of the climate metric. The Committee reviewed the
expected vesting outcome and was comfortable that the outcome is
appropriate. A 12-month holding period will apply to the LTIP awards
once vested. Further details of the 2022 LTIP awards are on page 80.
Regulatory developments
The Committee reviewed relevant regulatory developments during
the year, including changes to the Prudential Regulation Authority
(PRA) remuneration rules. While these changes currently have limited
impact on the Group’s remuneration practices, the Committee is
mindful of potential future changes being considered by the
Financial Conduct Authority (FCA) and will continue to monitor
theseclosely to consider any resulting implications.
Other areas considered by the Committee in 2025
– Overall fixed and variable compensation spend for the year
– Review of compensation outcomes, including control function
input, sustainability of earnings, diversity and competitiveness
– Review of gender and ethnicity pay gaps
– Review of key remuneration disclosures
– Regulatory matters, including our Material Risk Taker
identification framework, annual independent review of
remuneration and Group Risk Adjustment framework
– Shareholder and voting agency feedback on remuneration
– Annual reviews of terms of reference, advisers and Group ExCo
shareholding levels
Strategic report Governance Financial statements Shareholder and sustainability information
Remuneration report continued
62 Schroders Annual Report and Accounts 2025
2025 outcomes
Performance context
As at 31December 2025, AUM reached a record level of £823.7
billion, driven by positive net new business of £11.2 billion, robust
investment performance and favourable market conditions. We have
grown revenues and are outperforming our cost targets, which has
enabled us to deliver adjusted operating profit of £756.6 million
(2024: £603.1 million). The Board has recommended a final dividend
of 15.0 pence per share. This results in a total dividend for the year
of 21.5 pence per share (2024: 21.5 pence per share).
From a strategic perspective, we also made strong progress against
our key priorities in 2025. As well as launching our first two European
active ETFs and bringing Cazenove Capital back into full ownership,
we continued the simplification of our geographic footprint,
announcing plans to leave two non-core markets (Indonesia and
Brazil). These achievements demonstrate our commitment to
achieving progress against our transformation targets, and lay the
groundwork for a more efficient and resilient business in the future.
For more information on our strategic and financial performance,
please see the Group Chief Executive’s and Chief Financial Officer’s
statements, beginning on page 7 and page 16 respectively.
Group-wide remuneration outcomes
When discussing remuneration outcomes for the wider workforce
this year, the executive Directors and the Committee focused on the
need to incentivise the delivery of our transformation programme
and reward the significant achievements made to date. Our people
are paramount to the successful delivery of our strategy and we are
proud that 95% of our high performers were retained in 2025.
The Committee considered both financial and non-financial
performance when setting the bonus pool, as well as an assessment
of overall market conditions and wider stakeholder experience.
TheCommittee and Board concluded that a bonus pool of
£304 million struck the right balance across relevant stakeholders,
including shareholders, clients and employees. Salaryincreases
made earlier in 2025 were lower than previous years, partially
offsetting the increase in the bonus pool and resulting in total
compensation changes for employees that were generally between
+1% and +11%.
As set out on the previous page, a firm-wide salary review and
benchmarking process was undertaken in the year to improve
competitiveness, recognising salaries had fallen behind the market
insome business areas. This review was also intended to address
inflationary pressure on salaries in many of the countries in which we
operate, particularly for our more junior employees. The result of this
overall review was that over 75% of employees are receiving a salary
increase for 2026. These increases will be reflected in total
compensation outcomes for 2026.
Individual bonus and salary amounts were determined according to
our Fair Pay for Performance framework, summarised to the right.
Inreviewing outcomes, the Committee evaluated analytics on
differentiation, diversity and competitiveness and was satisfied that
the year-end process was rigorous and that outcomes reflected
financial and non-financial performance, including conduct.
Outcomes for the wider workforce 2025 2024
Bonus-eligible employees
5,226
5,761
Bonus pool
£304m
£275m
% change bonus (median)
14.3%
-3%
% change total compensation (median)
3.8%
5%
% change future salary (median)
3.8%
0%
Key performance and remuneration metrics
Adjusted net operating
income
Adjusted operating earnings
per share
6%
0%
2025
2024
29%
-7%
2025
2024
Adjusted operating profit Dividend per share
25%
-4%
2025
2024
0%
0%
2025
2024
Headcount Annual bonus pool
-10%
-1%
2025
2024
11%
-4%
2025
2024
Fixed remuneration costs Total remuneration costs
-8%
5%
2025
2024
-2%
2%
2025
2024
Strategic report Governance Financial statements Shareholder and,sustainability information
2025 outcomes
63 Schroders Annual Report and Accounts 2025
Fair pay for performance
Remuneration outcomes for our employees are governed by
our Fair Pay for Performance framework. This framework,
available to all employees on our intranet, describes the
variety of factors considered in making pay decisions at
Schroders, including:
– Annual performance – including individual
performance, contribution, behaviours and conduct,
business and team performance, and Group-wide
performance and affordability
– Individual context – including an individual’s skills/
experience, progression, succession and future
potentialas well as consideration of multi-year
performance context
– Market context – consideration of market pay levels
fora given role/geography and review of relevant
competitor insights, local market conditions and
generalmarket outlook
– Internal and external relativities – ensuring fairness
ofoutcomes versus peers and market
Executive Directors’ remuneration outcomes
2025 annual bonus
Executive Directors’ bonuses are determined by the Committee
through a balanced scorecard approach. At the start of 2025,
theCommittee established and disclosed metrics consisting of 70%
financial factors and 30% non-financial factors. These metrics were
selected to ensure alignment to the Group’s three-year
transformation strategy, as announced in March 2025.
Target ranges for each financial metric were set with reference to the
Board-approved budget, market expectations, prior-year outcomes,
strategic priorities and the wider market outlook. When setting these
ranges, the Committee also remained mindful of the potential
significant impact that evolving market conditions could have on
bonus outcomes. As in previous years, the ranges were set such that
meeting the threshold leads to a 25% payout, achieving the target
leads to a 65% payout, and reaching the maximum leads to a 100%
payout. No changes were made during the year to the metrics or
target ranges.
At the end of the year, the Committee assessed the level of
performance against these financial target ranges to determine the
appropriate outcome. The table belowprovides details of the target
ranges for the financial metrics and the corresponding payouts.
Theoverall financial scorecard outcome was 69% out of the
maximum 70%.
The bonus scorecard also includes non-financial performance,
whichtheCommittee evaluates based on quantitative and qualitative
objectives established at the beginning of the year. The Committee
acknowledged the achievements detailed on the next page,
whichinclude: the launch of our active ETF product range in Europe;
launch of our Active Edge campaign; and the strengthening of our
Wealth Management platform by regaining full ownership of
Cazenove Capital. The Committee also recognised the progress
against the transformation programme since it was announced to
the market in March 2025. This non-financial evaluation is combined
with anassessment ofeach individual’s personal performance, as
summarised on page 66.
Based on performance achieved against the non-financial
component of the Group scorecard as well as personal performance,
the Committee confirmed non-financial scorecard outcomes of 27%
for Richard Oldfield, 30% for Meagen Burnett and 20% for Johanna
Kyrklund, outofthe maximum 30%.
Whilst the combined financial and non-financial scorecard outcomes
result in material increases to annual bonus outcomes compared to
the prior year, the Committee is comfortable that they are appropriate
in the context of the Group’s very strong performance in the year.
2026 LTIP grant
For the LTIP awards to be granted in March 2026 in respect of 2025,
the Committee determined to increase the grants within the total
remuneration caps for the second consecutive year, further
increasing the long-term alignment to shareholders. This will
resultin awards of £2.4 million, £1.1 million and £1.0 million for
theCEO, CFO and CIO respectively.
These awards will be granted under the final year of our current
Policy. However, in line with the changes proposed under our new
Policy, the 2026 LTIP performance period will be measured over
three years followed by a two-year holding period to ensure the
overall incentive horizon remains at five years.
Further details of this change and the performance measures that
apply to the grant are set out on page 71.
2022 LTIP vesting
None of the current executive Directors received LTIP awards in
March 2022, for the performance period concluding on 31
December 2025, and therefore no amounts will vest to them.
Vesting outcomes for 2022 LTIP awards made to former executive
Directors are set out on page 80.
Assessment of the financial metrics of the executive Directors’ 2025 annual bonusscorecard
2025 scorecard metric Weighting
Targets
Outcome
Metric payout
% of max for
metric
Bonus payout
% of max
bonusThreshold 25% Target 65%
Maximum
100%
Adjusted operating profit (£m) 30% 540 610 710 757 100% 30%
Investment performance 20% 50% 60% 70% 70% 100% 20%
Annualised net new revenue (£bn) excluding
JVs and associates
10% 0.0 12.0 23.0 30.2 100% 10%
Proportion of AUM that outperforms its
sustainability benchmark (SustainEx
TM
)
10% 86% 89% 93% 91% 85% 9%
Total outcome of the financial metrics 69%
Strategic report Governance Financial statements Shareholder and,sustainability information
2025 outcomes continued
64 Schroders Annual Report and Accounts 2025
Non-financial assessment for executive Directors’ annual bonus scorecard
Criteria Performance in 2025
Strategic progress (see pages 12 to 15 for more information)
Transformation
andstrategy
– Achieved in-year cost savings of £75 million, making significant progress towards our 2027 transformation
target of £150 million.
– Made progress towards three-year target of stabilising of Public Markets revenues and Schroders Capital net
new business target of £20 billion by the end of 2027.
– Announced our strategic decision to exit two markets – Indonesia and Brazil.
– Invested in talent, with strengthened leadership in Wealth Management and Client Group.
– Development of a Capital Allocation framework to prioritise the use of capital to support the maximisation of
return on shareholders’ capital.
Operating model review – Simplified the Client Group operating model to enhance accountability for sales and to create capacity to grow
in a scalable way.
– Established a centre of excellence in Singapore to strengthen our digital assets capabilities, enhancing our
ongoing collaboration with the Monetary Authority of Singapore (MAS).
– Transitioned to an outsourced managed service model for certain IT infrastructure and other services with our
long-established partner, UST.
– Reshaped our management accounts to improve consistency, clarity and alignment to other publicly
listedcompanies.
Continued growth of
Wealth Management
– Strengthened our Wealth Management platform by regaining full ownership of Cazenove Capital in exchange
for our stake in Schroders Personal Wealth.
– Wealth Management achieved £3.4 billion net new business, achieving 3% organic growth.
Client engagement and feedback (see pages 32 to 33 for more information)
Delivering for clients – Engagement with clients up more than 30% year on year.
– Launch of the first two European active ETFs.
– Active Edge campaign launched.
– Partnership with Hargreaves Lansdown to offer Long-Term Asset Funds (LTAFs) tailored for experienced
private investors.
– Established a new multi-year investment management agreement to continue managing Schroders Personal
Wealth and Scottish Widows assets.
Sustainability (see pages 20 to 22 for more information)
Climate engagement
with companies
– Strong engagement with companies on sustainability topics. During 2025, we engaged with 381 companies
on climate-related topics and voted on 93 climate-focused resolutions at company meetings.
– In-scope Group investments reached a 2.4°C temperature alignment score, in line with our near-term target
of 2.2°C by 2030, based on CDP-WWF methodology.
– Developed an innovative analytical framework to assess companies’ decarbonisation prospects, which has
supported portfolio analysis and strategies tailored to clients’ investment objectives.
Progress versus
theGroup’s own
multi-year climate-
related targets
– Good progress made against our multi-year target of reducing Scope 1 and Scope 2 emissions by 46% by
2030 from a 2019 base year, with a 41% reduction achieved in 2025, a 4% reduction from 2024 and
outperforming the 1.5°C science-based trajectory.
– Sourced 100% renewable electricity for all owned or leased offices, globally.
– Achieved 60% reduction in Scope 3 business travel emissions in 2025, ahead of the 50% reduction target
by2030.
Continued evolution
ofour Sustainability
framework
– As political momentum toward climate action has slowed, we have emphasised our proprietary transition and
decarbonisation capabilities in client engagement.
– Our clients appointed us to manage over £7.8 billion in new sustainability-focused mandates during 2025.
– We were a TNFD early adopter, leveraging analysis using our proprietary NatCapEx
TM
model which estimates
companies’ nature-related impacts and exposures.
People and talent (see pages 23 to 24 for more information)
Retention and
engagement
– 77% of our people are proud to work at Schroders.
– 95% of high performers retained.
– Over 75% of employees receiving a salary increase in 2026 as a result of our salary review and
benchmarkingexercise.
– Successfully managed the first year of our transformation programme without business disruption.
Inclusion and diversity – 80% of our people believe that Schroders is committed to inclusion and diversity.
– “Best Overall” in the FTSE 100, FTSE 250 and Private Companies category at the INSEAD Business In Balance
awards 2025.
Risk and governance (see pages 25 to 31 for more information)
Governance, risk and
reputation
– Continued progress against Group-wide multi-year programme to enhance cyber defences.
– Advanced our Operational Resilience framework, meeting deadlines set by PRA, FCA and Digital Operational
Resilience Act (DORA).
– Good standing with regulators, with sustained effort put into relationships.
Strategic report Governance Financial statements Shareholder and,sustainability information
2025 outcomes continued
65 Schroders Annual Report and Accounts 2025
Personal performance assessment for the Group
ChiefExecutive
Richard Oldfield has had a remarkably strong first full year as Group
Chief Executive, an assessment confirmed by those who work closely
with him, including members of the Group Executive Committee and
other members of the Board. His performance this year has been
notable for achieving clarity of strategy linked to objectives;
aninfusion of energy and renewed purpose; and reinforced
accountability for delivery against our stretching objectives,
bothstrategic and operational.
Richard has built on and strengthened our global leadership, taking
time to reinforce teamwork and shared values. His awareness of,
andrespect for, external stakeholders has been consistent, and
together with the other executive Directors who have joined the
Board, he has ensured that focus on service and relevance for our
clients has not wavered, even as we undertake significant
organisational simplification and improvements in efficiency.
As a result of the non-financial performance achieved in the
Groupscorecard and Richard’s personal performance,
theCommittee confirmed a non-financial bonus scorecard payout
of27% of the maximum 30%. The resulting scorecard outcome
wastherefore 96% of maximum for Mr Oldfield, equating to a
bonusof £5,799,000.
Personal performance assessment for the Chief
FinancialOfficer
In her first year in role as Chief Financial Officer, Meagen Burnett has
delivered exemplary leadership and made a significant and positive
impact across the Group. She has played a pivotal role in advancing
key priorities, successfully driving the transformation agenda and
creating value across financial, operational, and cultural areas.
Under Meagen’s leadership, the Group has achieved substantial cost
savings while upholding a strong control environment during a
period of significant change. She has shown ongoing commitment to
her professional growth and promoted an inclusive and high-
performing culture, with our employee sentiment scores remaining
robust. Her commercial acumen, decisiveleadership, and ability to
empower others have been clear differentiators. The Board greatly
appreciates Meagen’s contribution, which has been instrumental in
supporting the Group’s success and continued progress in 2025.
As a result of the non-financial performance achieved in the
Groupscorecard, as well as Meagen’s personal performance,
theCommittee confirmed a non-financial bonus scorecard payout of
30% of the maximum 30%. The resulting scorecard outcome of 99%
of maximum for Ms Burnett equated to a bonus of £1,948,000.
Personal performance assessment for the Group Chief
Investment Officer
Since her appointment to the Board, Johanna Kyrklund has
demonstrated outstanding leadership and delivered impressive
results as Group Chief Investment Officer. Under Johanna’s
leadership, the Group has exceeded investment performance targets,
with 73% of strategies outperforming relevant comparators over five
years. Johanna has also streamlined operations and achieved
significant transformation-related cost savings in Public Markets.
Johanna is equally notable for the culture she cultivates within her
teams, championing collaboration and inclusivity. Over the year,
shehas driven operational improvement and provided steady and
accessible leadership. Her deep expertise inspires confidence
among clients, colleagues and stakeholders.
As a result of the non-financial performance achieved in the
Groupscorecard and Johanna Kyrklund’s personal performance,
theCommittee confirmed a non-financial bonus scorecard payout
of20% of the maximum 30%. The resulting scorecard outcome was
therefore 88% of maximum for Ms Kyrklund, equating to a bonus
of£4,460,000.
Total remuneration outcomes for 2025
The graphs illustrate the total remuneration outcomes for the executive Directors, and how these outcomes compare with the individuals’
maximum total remuneration for 2025.
1
Executive Director Single total remuneration figure (£’000)
Group Chief Executive
Richard Oldfield
2025 actual
2025 maximum
Chief Financial Officer
Meagen Burnett
2025 actual
2025 maximum
Group Chief Investment Officer
Johanna Kyrklund
2025 actual
2025 maximum
n
Fixed pay
n
Upfront bonus – cash
n
Upfront bonus – fund award
n
Deferred bonus – share award
n
Deferred bonus – fund award
n
LTIP
1. 2025 actual remuneration reflects the amount shown in the single figure table on page 79. As noted on page 64, the current executive Directors did not
receive 2022 LTIP awards and therefore no amounts vested to them in 2025. 2025 maximum remuneration includes the LTIP grants to be made in 2026 in
respect of 2025.
Strategic report Governance Financial statements Shareholder and,sustainability information
2025 outcomes continued
66 Schroders Annual Report and Accounts 2025
9,000
3,500
6,500
2,370
6,327
4,891
Policy review and 2026 implementation
In line with the three-year Policy cycle, a review of the executive Directors’ Remuneration Policy
wasundertaken in 2025. We consulted extensively with shareholders as part of this process and
havevalued the ongoing dialogue and constructive feedback, which informed development and
finalisation of these proposals. As outlined earlier in the Chair’s letter, we are proposing several
changes to ensure continued alignment with our strategic priorities and market practice, and will
beseeking shareholder approval for the new Policy at our 2026 AGM.
Key outcomes from the review
– Overall shape of the remuneration framework under the new Policy is unchanged – fixed pay plus annual bonus and LTIP,
operatingunder a total remuneration cap.
– No change in the total remuneration caps under the Policy. For the Chief Financial Officer, we are making an increase within the
existing Policy to move the cap back to the level of her predecessor to reflect her experience in, and the scope of, the role.
– Staying within these total remuneration caps, we are increasing base salaries to address fixed pay levels that have become
uncompetitive over the last ten years, in line with a broader firm-wide initiative.
– We are increasing the alignment of our framework to the strategic and transformation timeline that the new executive team has
communicated to the market, by shortening the LTIP performance period from four to three years while maintaining an overall five-
year time horizon. At the same time, we are increasing the proportion of total remuneration that is delivered through the LTIP.
– We are refining the annual bonus and LTIP metrics to ensure that targets appropriately reward the team for delivering on Schroders’
transformation goals and creating value for clients and shareholders.
Context for the Policy review
Schroders set out a refreshed strategy in March 2025, focused on
putting the business on a clear trajectory of continued long-term
growth. The strategy places emphasis on a return to profitable
growth and includes stretching targets of achieving £150 million of
cost savings and reducing our cost to income ratio to below 70%,
both by 2027.
With the appointment of Richard Oldfield, Meagen Burnett and
Johanna Kyrklund, and the formation of a new Group Executive
Committee over the last 18 months, there has been a fresh focus
onsimplification, commercial discipline and delivery. From a
remuneration perspective, the Committee considers it paramount
that the Policy and its implementation incentivise the team to deliver
these ambitious transformation goals, create long-term shareholder
value and reward them fairly if they do so.
Our current Policy was approved at the 2023 AGM with 96%
shareholder support, with only minor amendments to the 2020
Policy, which also received a strong voting outcome. Since adoption,
we have seen ongoing support for the implementation of the Policy
at the 2024 and 2025 AGMs.
Our review highlighted that, whilst the Policy has a number of
strengths that we wish to retain and remains fit for purpose in terms
of its overall shape, there are several challenges to address.
Wedeveloped and consulted extensively during the year on our
proposals with our top 20 shareholders, representing c.82% of our
share capital, along with relevant proxy agencies. The feedback
received from shareholders was constructive and was used to
informthe Committee’s thinking as it developed during the review.
The following sections set out the proposed changes in detail.
1. Balance between fixed and variable remuneration
Executive Directors’ salaries have fallen significantly behind the
market, having last been increased in 2014. This reflects similar
themes within the business and, as a result, this year we have
performed a firm-wide salary review exercise to ensure that our
people are paid fairly and competitively, including our executive
Directors. Details of this exercise are set out on page 63.
In determining what constitutes appropriate positioning for the
executive Directors, the Committee has sought to triangulate a
number of relevant reference points, recognising that there is no “one
answer”. This includes UK-listed investment and wealth management
firms, global asset management firms, and broader UK-listed
businesses of a similar size and complexity. These groups typically
differ significantly in terms of the balance of their fixed and variable
elements, and as such the Committee has aimed for positioning
which, overall, is competitive against these three groups when viewed
in the round. The table below shows the current and proposed
salaries for the CEO, CFO and CIO, and the charts on the following
page illustrate the positioning relative to our comparator groups
(noting that comparators for the CIO role are not widely available).
Role 2025 salary 2026 salary
CEO £500,000 £800,000
CFO £375,000 £550,000
CIO £375,000 £425,000
As these increases are being made within the existing total
remuneration caps, there will not be any ratcheting effect on variable
remuneration. It will result in a rebalancing of pay – while
maintaining a significant emphasis on performance-related pay –
and is consistent with the salary review and benchmarking initiative
for the wider Schroders workforce highlighted on page 63.
During the consultation, there was broad-based support for these
increases and general recognition from shareholders that there was
a significant market-competitive challenge to address. We also
discussed with shareholders whether the increases should be
phased over more than one year. The Committee believes that it is
critical to address the competitive gap immediately to retain and
motivate key leadership talent. Leaving individuals significantly below
market for several years during the transformation period would
likely increase potential retention risks. A single increase also aligns
with the approach for other employees. Shareholders were
supportive of this approach in the circumstances of this review.
1. The global asset management comparator group used by the Committee consists of: AllianceBernstein, Allianz Global Investors, Ameriprise, Amundi, AXA
Investment Managers, BNP Paribas Asset Management, DWS, Fidelity International, Franklin Templeton Investments, HSBC, Invesco, Janus Henderson, M&G
Investments, Neuberger Berman, T.Rowe Price Associates, UBS Asset Management, Wellington Management Company.
Strategic report Governance Financial statements Shareholder and,sustainability information
Policy Review and 2026 implementation
67 Schroders Annual Report and Accounts 2025
Group Chief Executive
FTSE 350 Investment Management and Wealth (stock ticker and ranking by market capitalisation) FTSE 31-100 | Global
Asset Management
ASHM
(12)
JUP
(14)
SDR
(5)
IHP
(13)
IPO
(15)
ICG
(3)
RAT
(11)
QLT
(8)
N91
(10)
III
(1)
SDR
(5)
ABDN
(6)
BPT
(7)
EMG
(9)
STJ
(2)
MNG
(4)
31-
100
Global
AM
—
250,000
500,000
750,000
1,000,000
Chief Financial Officer
FTSE 350 Investment Management and Wealth (stock ticker and ranking by market capitalisation) FTSE 31-100 | Global
Asset Management
ASHM
(12)
IPO
(15)
SDR
(5)
IHP
(13)
JUP
(14)
RAT
(11)
QLT
(8)
ABDN
(6)
III
(1)
N91
(10)
SDR
(5)
EMG
(9)
ICG
(3)
MNG
(4)
STJ
(2)
BPT
(7)
31-
100
Global
AM
—
250,000
500,000
750,000
n
Schroders 2025
n
Schroders 2026
n
FTSE 350 IMW
n
LQ-M
n
M-UQ
2. Increase alignment with our strategic and
transformationtimeline
Our refreshed strategy has set out transformation targets to the end
of 2027. Due to a combination of the tenure of the executive team
and the four-year performance period of our current LTIP, there is
currently limited alignment with this transformation timeline.
Duringconsultation, shareholders were supportive of our desire to
align remuneration as closely as possible with the timescales for the
transformation programme.
The Committee considered how best to address this for 2026
onwards and is proposing two key changes:
– Resetting the LTIP performance period for future awards from
four years to three years. This creates closer alignment with the
timeframe for delivering our transformation goals and brings the
framework into line with standard market practice both in the UK
and internationally. Retaining a two-year holding period ensures
the overall incentive horizon remains at five years. These changes
will also apply to the 2026 LTIP grant to be made under the final
year of our current Policy.
– Increasing the proportion of total remuneration delivered
through the LTIP by maintaining awards at the higher percentage
of salary level introduced for the CEO last year (300%) and
granting at 200% and 235% of new salaries respectively for the
CFO and CIO, balanced by a concurrent reduction in the annual
bonus potential for the relevant performance year.
3. Refine metrics to ensure appropriate reward for
delivering transformation goals and creating value for
clients and shareholders
We have reviewed the measures used in our annual bonus and LTIP
to ensure that they reflect and incentivise performance against our
financial, strategic and transformation priorities. Our executives
should be held accountable for delivering on the goals that we have
set out to the market and be rewarded if they create value for our
clients and shareholders by doing so.
As a result of the review, the following changes are proposed:
2026 annual bonus
– 20% of the 70% financial element of the annual bonus will be
focused on critical transformation metrics, including revenue and
net new business growth and net cost savings, with targets
aligned to externally disclosed 2027 ambitions.
– The remaining 50% of the financial element will continue to be
based on adjusted operating profit and client investment
performance, which remain important metrics.
– Key non-financial goals will continue to comprise the remaining
30% of the scorecard.
2026 LTIP
– 25% of the LTIP will be based on an adjusted operating cost to
income ratio metric, in line with our stated goal to reduce this
from 75% to less than 70%.
– 25% will be based on return on tangible equity, reflecting our
focus on long-term value creation.
– The remaining 50% will continue to be based on earnings growth
and client investment performance, which remain critical long-
term success indicators for the business.
While we have removed the sustainability metrics from the 2026 LTIP
in order to make space for a greater focus on transformation,
ourcommercial focus in this key area has not changed. We will
continue to assess our progress on critical sustainability goals as
part of the non-financial element of the annual bonus.
These proposals were received positively during the consultation
process, with shareholders particularly welcoming the introduction
of a return on tangible equity focus into the LTIP.
4. Reinstate the CFO’s total remuneration cap
Since appointment as CFO, Meagen Burnett has performed strongly
and her responsibilities have expanded, notably including leadership
of the transformation programme. Given her development in role,
her total remuneration cap (currently £3.5 million) will be moved
back up to the level of her predecessor for 2026 (£4.5 million). This is
a change within the current Policy limits.
Other changes
Other minor changes have been made to the Policy to reflect
regulatory changes (e.g. on malus and clawback), update pension
arrangements for newly hired executive Directors to maintain parity
with the wider workforce, and uplift certain de minimis thresholds to
account for inflation over the period.
Conclusion
The Committee firmly believes that the proposed changes to our
Policy (and to the implementation of the Policy) will help ensure that
remuneration at Schroders remains competitive, focused on our
strategic and transformation agenda, and aligned with the interests
of our shareholders and other stakeholders.
The following pages illustrate how our approach to remuneration
creates alignment with our key stakeholders and how the Policy will
be implemented for 2025 and 2026.
Strategic report Governance Financial statements Shareholder and,sustainability information
Policy review and 2026 implementation continued
68 Schroders Annual Report and Accounts 2025
Our remuneration philosophy
Our vision is to partner with our clients to provide trusted advice and invest in the assets and markets that matter to them, building their
future prosperity through delivering excellent investment outcomes. Paying our people based on the value we create for our stakeholders
will secure our ability to deliver our purpose of creating prosperity together. This is why the remuneration principles underpinning how all our
people are paid are centred on creating alignment with our key stakeholder groups.
How our approach to remuneration creates alignment with our key stakeholders
Our key stakeholders Our remuneration principles
Our executive Director remuneration
approach
Shareholders
Aligned with shareholders
A proportion of variable remuneration for higher-earning
employees and material risk takers is granted in the form
of deferred awards over Schroders shares. This aligns
the interests of employees and shareholders.
ExecutiveDirectors and other members of the Group
Executive Committee are required, over time, to acquire
and retain a significant holding of Schroders shares or
rights to shares. Vested share-based awards from
bonuses are unable to be exercised until the
requirement has been met.
– 75% of deferred bonus paid in shares.
– Material portion of variable
remuneration is delivered through
theLTIP.
– Stretching shareholding requirements.
– Requirement to maintain a level of
shareholding for two years on
steppingdown.
Aligned with financial performance
Schroders manages its overall cost base by reference to
its cost to income ratio, defined as the ratio of operating
expenses to net operating income. Within this
framework, compensation expense – including the pool
from which any variable pay is funded – is controlled as a
component of the overall cost to income ratio.
– Financial metrics comprise 70% of the
annual bonus scorecard.
– 80% of 2026 LTIP awards based on
long-term financial performance,
including return on tangible equity,
with the balance based on
investmentperformance.
Clients
Aligned with clients
A proportion of variable remuneration for higher-earning
employees and material risk takers is granted as fund
awards, which are notional investments in funds
managed by the Group. This aligns the interests of
employees and clients.
– 25% of deferred bonus paid in
fundawards.
– Client investment performance
included in the annual bonus scorecard
and as a 2026 LTIP measure.
Our people
Competitive
Employees receive a competitive remuneration package,
which is reviewed annually and benchmarked by
reference totheexternal market. This allows us to
attract,retain and motivate highly talented people,
regardless of gender, age, race, sexual orientation,
disability, religion, socio-economic background or other
diversity facet.
– Competitiveness considered by
reference to total compensation for
comparable roles at other large
international wealth and asset
management firms, along with
similarly-sized UK-listed businesses.
– Benchmarking forms a point of
reference, not a primary factor,
inremuneration decisions.
Designed to encourage retention
Deferred variable remuneration does not give rise to any
immediate entitlement. Awards normally require the
participant to be employed continuously by the Group
until at least the third anniversary of grant in order to
vest in full.
– 60% of variable pay deferred over at
least a three-year period, with an
additional six-month holding period on
part of the annual bonus.
– 2026 LTIP subject to three-year
performance period and additional
two-year holding period, ensuring
norelease until at least five years
fromaward.
Society and
environment
Designed to promote the long-term
sustainable success of the Group
Sustainable leadership is key to our business and flows
from our long-term outlook. Performance against
sustainability goals is considered in the annual
compensation review for individuals who have the
abilityto influence our investment and business
operations, ensuring alignment with our commitment
toresponsible practices.
– Annual bonus scorecard includes
sustainability-aligned metrics in the
non-financial scorecard elements.
– In-flight 2025 LTIP includes metric
measuring progress towards our 2030
own emissions goal.
Strategic report Governance Financial statements Shareholder and,sustainability information
Policy review and 2026 implementation continued
69 Schroders Annual Report and Accounts 2025
Our remuneration philosophy continued
As set out on the previous page, the remuneration principles underpinning how we pay all our employees also apply to our executive
Directors. The graphic below summarises the key pay elements that apply to our executive Directors, along with the timescales over which
the remuneration in respect of the 2025 performance year is released. The following page then sets out how the Policy will be implemented
for 2026.
Illustration of 2025 implementation of our executive Directors’ Remuneration Policy
Pay
elements
Total annual compensation
Fixed
pay
Upfront annual bonus
Deferred annual bonus LTIP
60% of variable remuneration
Award
mechanics
50% delivered in cash
50% delivered in fund awards
75% delivered in share awards
25% delivered in fund awards
100%
delivered
in shares
Alignment over the longer term: Illustration of timescales for 2025 performance year
Cash
bonus
6-month
release
1-year
release
1.5-year
release
2-year
release
2.5-year
release
3-year
release
3.5-year
release
5-year
release
Feb
2026
Sep
2026
Mar
2027
Sep
2027
Mar
2028
Sep
2028
Mar
2029
Sep
2029
Mar
2030
Sep
2030
Mar
2031
Sep
2031
Mar
2032
Sep
2032
Mar
2033
Sep
2033
Upfront annual bonus: half paid in cash in February after the end of
the performance year and half granted as an upfront fund award,
subject to a six-month holding period.
Deferred annual bonus: granted 75% as a deferred share award,
available to exercise in equal instalments after 1, 2 and 3 years from
grant, and 25% as a deferred fund award, available to exercise in
equal instalments after 1.5, 2.5 and 3.5 years from grant.
Shareholding requirement: CEO - 500% base salary Other executive Directors - 300% base salary
Strategic report Governance Financial statements Shareholder and,sustainability information
Policy review and 2026 implementation continued
70 Schroders Annual Report and Accounts 2025
Malus may be applied
from the date on
which the award is
granted/established
until settlement.
Clawback may be
applied for a period of
up to seven years
from the date of
grant, unless the
Committee decides to
extend it in the event
of an investigation
that could lead to the
application of
clawback were it not
for the expiry of the
clawback period.
Cash
Funds
Shares
Funds
Shares
Funds
Shares
Funds
Holding
period
Shares
Policy implementation for all executive Directors in 2026
Element Approach 2026 implementation
Salaries – Reviewed annually. For the
executive Directors, salaries are
adjusted infrequently.
– Salaries for the executive Directors will be increased to £800,000 for
Group Chief Executive, £550,000 for Chief Financial Officer and £425,000
for Group Chief Investment Officer. These are the first increases for the
executive Director roles since 2014.
– See earlier in this report for commentary regarding the 2026 salary levels.
2026
annual
bonus
– The Committee determines
executive Director bonuses based
on a scorecard of metrics.
– Financial performance factors
make up 70% of the scorecard and
the remaining 30% is based on
non-financial factors.
– In setting the metrics and target
ranges, the Committee takes
intoaccount the Board-approved
budget, market expectations,
prior-year achievements,
strategicpriorities and the wider
economic landscape.
– The Committee may apply
discretion to adjust annual bonus
awards to the extent it deems it
appropriate to align to the results
achieved, overall stakeholder
experience, and/or in light of
unforeseen circumstances.
– Upfront fund awards and deferred
share and fund awards are
granted under the Deferred Award
Plan (DAP), which shareholders
approved at the 2020 AGM.
– Overall performance measures and weightings will be as follows:
Measure Link to strategy
Financial (70%)
Adjusted Operating
Profit (30%)
A key measure of financial performance as reported
tostakeholders.
Client Investment
Performance over three
years (20%)
Key client measure aligned to our vision of helping to
buildfuture prosperity for clients through excellent
investment outcomes.
Transformation
progress (10%)
Key strategic measure that will recognise progress against
2027 targets on revenues for Public Markets, cumulative
net new business for Schroders Capital and net new
business growth for Wealth Management.
Cost savings (10%) Progress towards our externally disclosed target of £150
million of annualised net cost savings by the end of 2027.
Non-financial (30%)
Strategic progress;
client engagement
andfeedback;
sustainability; people
and talent; risk and
governance;
personalgoals
All fundamental to the Group’s long-term success. The
Committee robustly assesses progress against each of
these measures through a combination of quantitative and
qualitative metrics.
2026
LTIP
award
– Awards are granted annually,
basedon performance in the
preceding year.
– Awards vest subject to a three-year
performance period, plus an
additional two-year holding period
post vesting.
– The Committee may apply
discretion to adjust vesting to the
extent it judges appropriate to
align the results to the overall
stakeholder experience.
– Awards are granted under LTIP
rules approved by shareholders
in2020.
– The Committee has approved LTIP awards of £2.4 million (300% of 2026
salary) for the Group Chief Executive, £1.1 million (200% of 2026 salary)
for the CFO and £1.0 million (235% of 2026 salary) for the CIO. These
awards reflect performance in2025, arein line with the current Policy and
will be granted in March 2026, with the following performance conditions:
Link to strategy
Threshold
(25% vesting)
Maximum
(100% vesting)
Adjusted Operating
Earnings per Share
(EPS) (30%)
Measuring our objective
to deliver earnings
growth through
focusedinvestment
andcost efficiency.
7% CAGR 14% CAGR
Client Investment
Performance over five
years (20%)
Key client measure
aligned to our vision of
helping to build future
prosperity for clients
through excellent
investment outcomes.
55% 75%
Adjusted Operating
Cost to Income
ratio(25%)
Aligned to externally
disclosed target of 70%
by 2027.
70% 68%
Return on Tangible
Equity (25%)
Metric focused on
maximising
shareholderreturns.
17.5% 21.5%
Navigation of this report and shareholder voting
This report from the Chair of the Remuneration Committee, together with the notes on pages 79 to 89, constitutes the annual report
onremuneration (ARR), which will be presented for an advisory vote by shareholders at the 2026 AGM. Where required and indicated,
thisinformation has been audited by Ernst & Young.
The Directors’ Remuneration Policy, presented in full on pages 72 to 78, will be put to a binding shareholder vote at the upcoming AGM.
Wevalue the feedback from our shareholders and look forward to receiving your support on both resolutions.
I will be stepping down as Chair of the Remuneration Committee at the 2026 AGM, while continuing as a member. I am pleased that Frederic
Wakeman, a valued member of the Committee since August 2024, will succeed me as Chair. I am grateful to management and all members
of the Committee for their support in 2025, and wish Fred the best in his new role.
Matthew Westerman
Chair of the Remuneration Committee
11February 2026
Strategic report Governance Financial statements Shareholder and,sustainability information
Policy review and 2026 implementation continued
71 Schroders Annual Report and Accounts 2025
Directors’ Remuneration Policy
The Committee aims to ensure remuneration policies and practices promote Schroders’ long-term
strategy while supporting effective risk management and alignment with key stakeholders.
This section sets out the new Directors’ Remuneration Policy proposed by the Committee and the Board. Shareholders will be asked to
approve the new policy at the 2026 AGM. This policy will take effect for Directors from the date it is approved and is expected to apply for
three years.
Remuneration Policy for the executive Directors
The table below sets out the policy for each component of remuneration for the executive Directors. The Remuneration Policy for
non-executive Directors is set out on page 76.
Component, purpose and link to strategy Operation and maximum opportunity
Fixed pay Base salary
To help recruit, reward and
retain talent of the calibre and
experience required to develop
and deliver the Group’s strategy.
Takes account of the individual’s
role and responsibilities,
skillsand experience, and
ongoing contribution.
We aim to pay executive Directors base salaries that are competitive with other
comparable asset management firms, both public and private. There is no policy
maximum for salary within the set maximum total remuneration for each
executiveDirector; however, if salaries for the executive Directors are increased,
thepercentage increase will not normally exceed the average annualised increase
across the wider workforce. Larger increases may be awarded if Directors’ salaries
have fallen significantly below competitors. Base salary is normally paid monthly in
cash via payroll.
Benefits and allowances
Support individual health and
wellbeing and reflect local
market practice.
Executive Directors receive flexible access to a range of benefits in kind on the same
basis as other London-based employees. Directors are covered by the Group’s
Directors’ and Officers’ Liability Insurance. Executive Directors may also benefit from
private use of a car and driver and/or security support, if deemed necessary. The cost
of providing benefits varies according to a range of factors, such as insurance
premium rates, so no formal maximum exists.
Benefits include the ability to participate in the Share Incentive Plan (SIP) on the same
basis as other eligible employees. The value of any SIP matching shares awarded to
the executive Directors during the year is included within the value reported for
benefits and allowances. SIP participation for the executive Directors is subject to the
same statutory maximum limits as for other eligible employees, currently £1,800 per
tax year in partnership shares (or 10% of income if lower) and a maximum ratio of 2:1
for matching shares.
Additional benefits may be provided if required, for example to support
internationalrelocation.
Retirement benefits
Enable and encourage provision
for retirement, and reflect local
market practice.
Executive Directors may participate in pension arrangements, or receive cash in lieu,
on the same basis as other London-based employees. That basis is 16% of
pensionable salary plus a contribution to match employee contributions up to a
further 2% for employees offered contracts of employment before 1 February 2024;
or 8% of pensionable salary plus a contribution to match employee contributions
upto a further 5% for employees offered contracts of employment on or after
1February 2024. There is flexibility and choice over the balance between employer
pension contributions and cash in lieu.
Maximum
total
remuneration
To provide shareholders with
certainty on the maximum total
remuneration that each
executive Director can be
awarded each year.
The Committee has defined a maximum limit for the total remuneration of each
executive Director each year, based on the aggregate value of: fixed remuneration
paid in the year; annual bonus awarded in respect of the year; and the grant-date
market value of shares under the LTIP award granted following the financial year
end. This will not exceed £9,000,000 for the Group Chief Executive, £4,500,000 for
the Chief Financial Officer and £6,500,000 for the Group Chief Investment Officer.
Shareholding
requirements
To align the interests of
executive Directors with those
ofshareholders.
The personal shareholding policy for the Group Chief Executive requires the
retention of shares or rights to shares equivalent to at least 500% of base salary.
Forthe other executive Directors, the requirement is at least 300% of base salary.
On stepping down, executive Directors are required to maintain for a period of two
years a holding of shares or interests in shares equal in number to that calculated
under the personal shareholding policy at the point they ceased to be an executive
Director, or the number actually held if lower. Executives would normally be required
to sign a commitment to adhere to this requirement as part of stepping down.
Strategic report Governance Financial statements Shareholder and,sustainability information
Directors’ Remuneration Policy
72 Schroders Annual Report and Accounts 2025
Component, purpose and link to strategy Operation and maximum opportunity
Annual bonus
award
To incentivise and reward the
achievement of financial,
non-financial and personal
objectives for the year, which
areconsistent with the Group’s
multi-year strategy.
Bonus deferral enhances
alignment of interests with
thoseof shareholders and
clients, and provides an
incentiveto stay at Schroders.
In setting executive Directors’ bonuses, the Committee operates an annual bonus
scorecard. Financial performance factors will make up at least 70% of the scorecard
each year. The remainder, no more than 30% of the scorecard, will be based on a
combination of non-financial factors. For threshold performance, 25% of the maximum
opportunity is payable.
Annual bonus awards for the executive Directors operate such that:
– the proportion of bonus that is deferred is initially fixed at 60%
– the amount of the bonus that is deferred is reduced to reflect any LTIP award
madein respect of the year, such that, at a minimum, 60% of overall variable pay
isdeferred
– the deferred portion of the annual bonus is granted as a combination of share awards
and fund awards, with the mix compliant with minimum regulatory requirements
– the remainder of the bonus is paid in cash and/or upfront fund awards with a
holding period applied where required by regulations.
For deferred bonus awards, the deferral period is normally at least three years,
withvesting in three equal instalments on or around the first, second and third
anniversaries of grant. On vesting, awards may be subject to an additional holding
period, during which the underlying share awards or notional fund units cannot be
sold. Malus and clawback terms apply to the entire annual bonus award (see page 74).
Deferred bonus awards are normally made under the Deferred Award Plan (DAP),
which was approved by shareholders at the 2020 AGM. The DAP rules allow awards to
be used as part of recruitment, in which case the Committee can set a different vesting
period to better align with the awards that the recruit is forfeiting.
Share awards accrue additional shares equivalent to dividends paid on a compound
basis until the share award is exercised. If dividend equivalents cannot be awarded
due to regulations, the number of shares to be awarded may be based on a share
price discounted by reference to an expected dividend yield over the vesting period.
Fund awards are conditional rights to receive a cash sum based on the value of a
notional investment in a range of Schroders funds.
Long Term
Incentive
Plan (LTIP)
To incentivise and reward the
achievement of the Group’s long-
term strategic priorities.
LTIP awards are share-based awards typically granted to executive Directors in March
each year. Annual LTIP awards can be up to four times base salary at the time of grant
for any individual. If dividend equivalents cannot be awarded due to regulations,
thenumber of shares to be awarded may be based on a share price discounted by
reference to an expected dividend yield over the vesting period.
LTIP awards normally have a three-year performance period. The Committee
determines the performance conditions for each award and uses its judgement to set
challenging criteria that are consistent with the Group’s strategy, at least half of which
will be financially based. If threshold performance is achieved, 25% of the award will
vest, rising to 100% vesting at maximum performance.
On vesting, awards may be subject to a holding period, during which the underlying
shares cannot be sold. The total of the performance period and the holding period will
not be less than five years. Malus and clawback terms apply (see page 74).
The plan rules allow LTIP awards to be used as part of recruitment, in which case the
Committee can set a different vesting period and performance conditions to better
align with the awards that the recruit is forfeiting.
Notes to the policy table
In approving the application of this policy to the executive Directors, authority is granted for the Group to honour any commitments entered
into with current or former Directors prior to the approval and implementation of the policy (such as payment of pension or the grandfathering
of past awards), provided that such commitments complied with any applicable remuneration policy in effect at the time they were entered
into. Any remuneration commitment made prior to an individual becoming a Director and not in anticipation of their appointment to the Board
may be honoured, whether or not it is not consistent with the Directors’ Remuneration Policy in place at the time it is fulfilled. For these
purposes, commitments include the satisfaction of past awards of variable remuneration, the terms of which were set at the time the award
isgranted.
The rules of the DAP and the LTIP were submitted to shareholders for approval at the 2020 AGM. There are various discretions afforded to
the Committee in these incentive plans, such as the treatment of leavers, the discretion to override formulaic LTIP outcomes, discretion to
adjust the structure of awards in the event a participant is internationally mobile to avoid unfavourable legal, regulatory or tax outcomes for
participants or the Group, or in the event of a variation of the Company’s share capital or other corporate event. At the Committee’s
discretion, share-based awards may be settled in cash, but this would only be used in exceptional circumstances, for instance in a jurisdiction
where settlement in shares would create an adverse outcome for the Group or award holder. The terms of awards may be amended in
accordance with the relevant plan rules, for example to take account of legal, tax and regulatory changes. The general application of each
plan is subject to variation in some jurisdictions to reflect local restrictions, regulation and practice.
Strategic report Governance Financial statements Shareholder and,sustainability information
Directors’ Remuneration Policy continued
73 Schroders Annual Report and Accounts 2025
Performance conditions and approach to target setting
At the beginning of each performance year, the Committee sets
scorecard metrics and targets for the annual bonus and LTIP
scorecards, taking into account the Board-approved budget,
marketexpectations, prior-year achievements, strategic priorities
and the wider economic landscape. Metrics are chosen to reflect
Schroders’ strategy and broader stakeholder experience and will
generally include the key measures of progress and success as set
out in the Strategic and Annual Reports. Non-financial factors may
include (but are not limited to) measures relating to strategic
progress, client engagement, sustainability, people and talent,
riskand governance, and each executive Director’s personal
objectives for the year.
The Committee may amend performance conditions if an event
occurs that causes it to consider that it is appropriate to do so,
provided that the amended performance condition is, in the opinion
of the Committee, not materially more or less difficult to satisfy than
it was originally intended to be. To avoid overly formulaic outcomes
for both the annual bonus and LTIP, the Committee has the
discretion to alter the scorecard outcome (including to nil) to the
extent it judges the outcomes do not align with results achieved.
Thisdiscretion may be exercised in circumstances that include a
member of the Group suffering a material failure of risk
management or if the Committee judges that the unadjusted
outcome from the performance conditions does not reflect the
underlying performance of the Group, any member of the Group,
any business unit or the participant. Any such adjustment would be
disclosed in the relevant annual report on remuneration.
Malus and Clawback Policy
The policy sets out a range of circumstances in which malus and/or
clawback may be applied. For executive Directors this includes:
– fraud, misconduct or misbehaviour by the participant
– material error by the participant
– material failure of risk management
– failure to uphold appropriate standards of fitness or propriety
– material downturn in financial performance, including
corporatefailure
– material financial misstatement, error or misrepresentation for
which the participant has significant responsibility or which has
led to a larger award than would otherwise have been the case
– an award has vested/been settled, or is capable of vesting/being
settled, to a greater extent than would otherwise have been the
case, as a result of erroneous or misleading data
– an award received in breach of regulatory requirements or where
the financial sustainability of the Group or any member of the
Group would be adversely affected
– the Group has suffered regulatory sanctions to which the
participant’s conduct contributed
– participation in or responsibility for conduct resulting in material
losses (malus trigger only)
– breach of any of the policies or codes to which the individual is
subject (malus trigger only)
– participation in or responsibility for an event resulting in
materialadverse consequences for the Group’s reputation
(malustriggeronly)
– any other circumstances that may justify it, including local
regulatory obligations.
Malus may be applied from the date on which the award is granted/
established until settlement. Clawback may be applied for a period
ofup to seven years from the date of grant, unless the Committee
decides to extend it in the event of an investigation that could lead
tothe application of clawback were it not for the expiry of the
clawback period. The clawback period is deemed appropriate, as it
exceeds the typical timeframe within which risks, misstatements
ormisconduct may emerge. To ensure enforceability, all DAP
participants must accept the terms of their awards,
confirmingadherence to the DAP rules and Group Malus and
Clawback Policy. The executive Directors’ contracts also explicitly
provide for clawback. The Group Malus and Clawback Policy also
applies to LTIP awards. For completeness, the Committee confirms
that no executive Director had malus or clawback applied to their
pay during 2025.
Considerations when setting policy and the Committee’s
decision-making process
In recommending the Directors’ Remuneration Policy to the Board
and to shareholders, the Committee intends that policies and
practices promote Schroders’ long-term strategy and sustainable
growth, while supporting effective risk management so as not to
encourage excessive or inappropriate risk-taking. The Group’s
remuneration policies and practices take account of legislation,
regulation, corporate governance standards, best practice and
guidance issued by regulators, shareholders and shareholder
representative bodies.
Reward policies comply with the relevant provisions of the FCA’s
Remuneration Codes, the Remuneration Part of the PRA Rulebook
and the latest UK Corporate Governance Code.
The responsibilities of the Committee are set out in its terms of
reference and summarised on page 62. To avoid conflicts of interest,
no Director or employee participates in decisions determining their
own remuneration. In determining the remuneration of the
GroupGeneral Counsel, Chief People Officer, Chief Risk Officer
andHead of Group Internal Audit, the Committee intends that
remuneration is appropriate based on the achievement of objectives
linked to their functions and that any conflicts of interest are
identified and managed.
The Committee assesses the performance of its external advisers
annually, to ensure that the advice provided is independent of any
support provided to management (see page 88).
Strategic report Governance Financial statements Shareholder and,sustainability information
Directors’ Remuneration Policy continued
74 Schroders Annual Report and Accounts 2025
Executive Directors’ Remuneration Policy illustration
The diagram on page 70 illustrates the structure of the executive Directors’ remuneration, including the timing of when they receive each
component of their total remuneration.
The potential value of each component of remuneration for the executive Directors is illustrated below. These scenario charts show, for each
of the executive Directors, the relative split of fixed components of remuneration, annual bonus awards and LTIP awards, in accordance with
the proposed Directors’ Remuneration Policy.
Executive Directors’ Remuneration Policy illustration
(£)
Group Chief Executive
Richard Oldfield
Chief Financial Officer
Meagen Burnett
Group Chief
InvestmentOfficer
Johanna Kyrklund
n
Fixed pay
n
Upfront bonus – cash
n
Upfront bonus – fund award
n
Deferred bonus – share award
n
Deferred bonus – fund award
n
LTIP
Assumptions
Fixed
pay
Fixed pay consists of base salary, benefits and allowances and retirement benefits.
Base salary is the annual salary effective from 1 March 2026. Benefits and allowances and retirement benefits are the actual
amounts received in respect of 2025, as shown in the single total remuneration figure table on page 79.
Threshold Mid-point Maximum
Annual
bonus
award
The amount payable if all the threshold
targets in the annual bonus scorecard
are met, which is 25% of the
maximumscenario.
The mid-point of the threshold and
maximum scenarios.
The maximum payable if the targets for
each metric in the annual bonus
scorecard are met in full.
In all three scenarios the annual bonus award is partly paid in cash, partly granted as an upfront fund award and partly
subject to deferral into share and fund awards, as outlined in the policy.
LTIP
The face value of the March 2026 award,
assuming 25% vesting.
The mid-point of the threshold and
maximum scenarios.
The face value of the March 2026 award,
assuming 100% vesting.
The maximum scenario above includes the face value of the March 2026 LTIP award, assuming 100% vesting. If the Schroders share price
increased between the date of grant and date of vesting of the LTIP award, the remuneration value disclosed in the single total remuneration
figure table would be higher. For example, share price growth of 50% on the LTIP award between grant and vest would increase maximum
total remuneration values to £10.2 million, £5.1 million and £7.0 million respectively for the CEO, CFO and CIO, calculated by uplifting the face
value at grant of the LTIP shares to be granted in March 2026 by 50%.
Strategic report Governance Financial statements Shareholder and,sustainability information
Directors’ Remuneration Policy continued
75 Schroders Annual Report and Accounts 2025
Approach to remuneration for the wider workforce
Schroders applies its remuneration principles consistently across
theGroup and, unless local market conditions require otherwise,
also seeks to apply the same remuneration structure to all
permanent employees. Base salaries, benefits and pension are
reviewed in the context of local market practice and requirements.
All permanent employees are eligible for an annual bonus if they join
before 1 October in the relevant year. Bonuses are fully discretionary
and based on performance against a number of financial and non-
financial factors, which may change year to year to reflect the
priorities of the Group, business area and individual, while taking into
consideration alignment with Schroders’ values and behaviours.
Individuals in receipt of larger bonuses are subject to a graduated
level of deferral up to 50%. Individuals identified as material risk
takers under the remuneration regulations applicable to Schroders
are subject to deferral at least in line with those requirements.
Bonuses for these individuals are typically delivered in a mixture of
cash, shares and funds. Additional deferred awards may be used
selectively each year to reward key individuals, for example those
with sustained high performance and potential. Some employees
participate in carried interest plans and other long-term incentive
structures designed for particular areas of the business. Currently
only the executive Directors and Group Executive Committee
members participate in the LTIP.
The Committee discusses key remuneration topics for the wider
workforce throughout the year, including the annual bonus pool
andresulting pay outcomes, the budget and allocation approach for
salary increases, gender and ethnicity pay gaps, regulatory
remuneration matters and ad hoc proposals requiring the
Committee’s review and approval under its terms of reference.
TheCommittee does not set fixed ratios for Directors’ pay relative to
other employees as it believes this would restrict flexibility in aligning
reward and performance appropriately. To help aid the decision-
making of the Committee and Board, feedback from employees is
gathered by management and the Board in a range of ways through
the year, including via the Global Employee Forum, currently chaired
by Annette Thomas – who is also a Remuneration Committee
member – regular employee engagement surveys and town
hallmeetings.
Directors’ service contracts and letters of appointment
Each of the executive Directors has a rolling service contract with
amutual notice period of six months. Each of the non-executive
Directors has a letter of appointment with a mutual notice period
ofsix months. Letters of appointment and service contracts are
available for shareholders to view at the Company’s registered office
on business days between the hours of 9am and 5pm and will be
available at each AGM.
Remuneration Policy for the non-executive Directors
The table below sets out the Remuneration Policy for non-executive Directors, who only receive fixed pay and benefits.
From 2026, we have introduced a minimum shareholding requirement for our independent non-executive Directors (INEDs) to strengthen
alignment with shareholder interests. This update to our policy is consistent with the changes to the guidance to the UK Corporate Governance
Code issued by the Financial Reporting Council in November 2025.
Component Policy and operation
Fixed
pay
Fees
To reflect the skills, experience
and time required to
undertake the role.
Fees for the Chair are determined by the Committee, and fees for other non-executive Directors
are determined by the Board, in each case based on market information for similarly-sized FTSE
companies and FTSE 100 financial services firms. Non-executive Directors do not participate in
decisions concerning their own fees. Fees are usually reviewed biennially.
Benefits
To enable the non-executive
Directors to undertake
theirroles.
Non-executive Directors’ benefits are principally expenses incurred in connection with the
Group’s business and reflect business needs. Non-executive Directors may receive private use
ofa driver, car parking, meals, travel costs and tax on reimbursed expenses deemed taxable by
HMRC. Non-executive Directors do not participate in post-employment or retirement benefits,
or in any of the Group’s incentive arrangements.
Minimum shareholding
requirement
To align the interests of the
INEDs with those of our
shareholders.
During their tenure on the Board, each INED is encouraged to establish and maintain a
minimum shareholding equivalent to 100% of their annual base fee (excluding Committee fees
and other allowances). INEDs have up to three years to meet this requirement from the earlier
of the 2026 AGM or the date of their appointment as an INED.
New non-executive Directors receive fees and benefits in line with the policy for other non-executive Directors. When recruiting new non-
executive Directors, the Board’s policy is that letters of appointment will have a mutual notice period of six months.
Strategic report Governance Financial statements Shareholder and,sustainability information
Directors’ Remuneration Policy continued
76 Schroders Annual Report and Accounts 2025
Recruitment of new Directors
The table below summarises the Remuneration Policy when hiring new executive Directors.
Component Policy and operation
Overall
approach
On appointment, the Committee aims to pay executive Directors remuneration that is appropriate in level and structure
to attract, motivate, retain and reward Directors of the quality required to run the Group successfully, while avoiding
paying more than is necessary.
Maximum total
remuneration
On appointment of any new executive Directors to the Board, the Committee will consider the appropriate maximum
total remuneration value for the role, within the parameters of the current policy.
Notice periods
The Group’s general policy is that each executive Director will have a rolling contract of employment with mutual notice
periods of six months. The Committee will consider the appropriate notice period when appointing any new executive
Director. If necessary to secure a new hire, a notice period of up to 12 months may be offered. When recruiting new
executive Directors, the Committee’s policy is that contracts will not contain any provision for compensation upon
earlytermination.
Base salary
Base salary is likely to be set at a similar level as for other executive Directors, provided this is justifiable by reference to
the candidate’s skills and experience, the anticipated role scope, and taking into account external market rates for roles
with similar responsibilities, remuneration in the individual’s previous roles and wider internal relativities.
Other fixed
pay
Benefits and allowances, retirement benefits and SIP participation will be provided to new executive Directors on a
similar basis as those available to other employees. If the Group hires a new executive Director internationally then
relocation support may be offered in the relevant location, on a similar basis to that which might be offered for other
employees. This may include support such as temporary accommodation, assistance finding new accommodation,
transportation of household goods, school search for children moving internationally with the Director, tax advice and
assistance preparing tax returns, and other allowances/support provided to other employees.
Annual bonus
award
New executive Directors would be eligible to be considered for annual bonus awards in the same way as existing
Directors. Consideration may be given to making an award to compensate for any variable pay opportunity forgone
from a previous employer as a result of joining Schroders if considered essential to secure the candidate, as detailed in
the “Buyout awards” section below. In line with the requirements of the PRA and FCA remuneration rules, any bonus
buyout will be limited to the individual’s first year of service, subject to the Group’s deferral arrangement, and any
performance requirements will be determined by the Committee.
LTIP
New executive Directors would be eligible to be considered for LTIP awards in the same way as existing Directors.
Legal fees
The Group may pay reasonable fees for a new executive Director to obtain independent legal advice in relation to their
appointment, including any tax due thereon.
Buyout awards
Where a candidate will forfeit remuneration as a result of leaving their current employer on joining Schroders, the Group
may mitigate that loss by making one-off awards as a term of their appointment. The Committee will take reasonable
steps (within the terms of the Group’s incentive plans) so that any buyout awards are aligned in amount and terms with
the remuneration being forfeited. Malus and clawback terms will apply to any such awards. Any buyout awards are not
included in the "Maximum total remuneration” section above.
Appointments
outside the UK
If a new executive Director is based outside the UK, the Committee will adapt the terms of the Directors’ Remuneration
Policy to comply with local requirements and so the executive Director can participate to the extent possible in similar
arrangements to those available to other employees in that jurisdiction.
Grandfathering
Any remuneration commitment made prior to an individual becoming a Director and not in anticipation of their
appointment to the Board will be honoured, whether or not it is consistent with the Directors’ Remuneration Policy in
place at the time it is fulfilled.
Strategic report Governance Financial statements Shareholder and,sustainability information
Directors’ Remuneration Policy continued
77 Schroders Annual Report and Accounts 2025
Policy on termination arrangements
The table below sets out the Remuneration Policy on termination of a Director.
Component Policy and operation
Overall
approach
When an executive Director leaves the Group, the Committee will review the circumstances and apply the treatment
thatit believes is appropriate. Any payments will be determined in accordance with the Directors’ Remuneration Policy,
as well as the terms of the Director’s service contract and the rules of any applicable incentive plans. There are no
contractual provisions for non-executive Directors to receive compensation upon termination.
Fixed pay
Base salary, benefits and allowances, and retirement benefits for executive Directors, and fees for non-executive
Directors, will continue to be paid through the notice period. The Committee also has the discretion to make a
paymentin lieu of notice, normally based on salary only for executive Directors or fees only for non-executive Directors.
Certain benefits (for example medical or life insurance) may continue until the end of the normal cover period and
others may be extended to post termination where appropriate, for example repatriation for globally mobile individuals
or assistance with tax return services. The treatment of shares acquired or awarded under the SIP will be in accordance
with the plan rules.
Annual bonus
award
Departing executive Directors do not have a contractual entitlement to an annual bonus award. If a departing Director
works during the notice period in support of the Group’s strategic priorities as set out in the annual bonus scorecard
and supports an effective transition of responsibilities, or leaves due to death, ill health, injury or disability, the
Committee may recommend to the Board that a discretionary payment be made to reflect the Director’s contribution
during the proportion of the financial year worked. Any such payment will normally be subject to the same deferral
arrangements as an annual bonus award, provided this is permitted and effective under applicable law and regulations,
and except in the case of death, ill health, injury or disability when at the Committee’s discretion payment may be fully
incash.
DAP awards
The treatment of awards under the DAP will be in accordance with the relevant plan rules. The normal treatment is that
unvested awards are forfeited. In certain circumstances, such as death, ill health or injury, or otherwise at the
Committee’s discretion (which might be used in circumstances such as retirement with the agreement of the Company
or leaving by mutual agreement), those rules permit participants to retain some or all of their unvested awards following
the termination of their employment. Any unvested awards that are retained vest on their normal vesting date, or vest
immediately in the case of death, ill health, injury or disability at the Committee’s discretion.
LTIP awards
The treatment of awards under the LTIP will be in accordance with the relevant plan rules. The normal treatment is that
unvested awards are forfeited. In certain circumstances, such as death, ill health or injury, or otherwise at the
Committee’s discretion (which might be used in circumstances such as retirement with the agreement of the Company
or leaving by mutual agreement), the award may still vest after the performance period, subject to the performance
conditions and holding period, with the proportion that vests reduced pro rata for the portion of the performance
period that has elapsed at the date of departure. Vesting may be accelerated in the case of death, ill health, injury or
disability at the Committee’s discretion, with the proportion that vests determined by estimating the extent to which the
performance conditions will be met.
Malus and
clawback
The malus and clawback terms (see page 74 for details) continue to apply to variable remuneration awards after an
executive Director steps down.
Restrictive
covenants
Executive Directors’ service contracts include restrictions prohibiting the solicitation of Schroders’ clients or employees
for a period of 12 months after leaving employment, against which any period spent on notice or garden leave is offset.
If the Committee uses its discretion to permit a departing Director to retain unvested DAP or LTIP awards, the unvested
portions that the leaver is allowed to retain normally remain at risk of forfeiture for a specified period if they join a
competitor or solicit Schroders’ clients or employees before the award vests. The same applies if a retiring executive
Director is allowed to retain portions of their unvested awards and then takes up an executive role at another publicly
listed company within 12 months.
Shareholding
requirements
On stepping down, executive Directors are required to maintain for a period of two years a holding of shares or interests
in shares equal in number to that calculated under the personal shareholding policy at the point they ceased to be an
executive Director, or the number actually held if lower. Executives would normally be required to sign a commitment to
adhere to this requirement as part of stepping down.
Legal fees
The Group may pay reasonable fees for a departing Director to obtain independent legal advice in relation to their
termination arrangements and nominal consideration for agreement to any contractual terms protecting the Company’s
rights following termination. If the value of either of these exceeds £15,000 it will be disclosed in the annual report on
remuneration.
Retirement
gifts
The Board may choose to make a retirement gift to a departing Director. If the value of any such gift exceeds £10,000 it
will be disclosed in the annual report on remuneration.
Settlement
agreements
The Committee may agree additional exit payments where such payments are made in good faith to discharge an
existing legal obligation, as damages for breach of such obligation, in settlement or compromise of any claim or
potential claim arising on termination of a Director’s office or employment, or to strengthen the Group’s rights post
termination. This may include the provision of outplacement support. If the value of any such payment exceeds £15,000
it will be disclosed in the annual report on remuneration.
Other
payments
Other payments to former Directors that do not exceed £15,000 will not be disclosed in the annual report on
remuneration. Payments can also be made where an amendment to the policy authorising the Company to make the
payment has been approved by shareholders.
Change of
control
Outstanding awards will be treated in line with the provisions under which they were granted. If there is a takeover or
delisting of the Company, DAP awards will normally vest in full. The extent to which LTIP awards vest in these
circumstances will be determined by the Committee in its discretion taking into account (i) its estimate of the extent to
which the relevant performance conditions would have been satisfied over the original performance period and (ii) the
proportion of the performance period that has elapsed. For all awards, the Committee also has discretion to: (i) allow
awards to continue; (ii) grant rollover, transition or other alternative awards in the form of cash or equity; and/or (iii)
takesteps to ensure continued compliance with the regulatory remuneration requirements.
Strategic report Governance Financial statements Shareholder and,sustainability information
Directors’ Remuneration Policy continued
78 Schroders Annual Report and Accounts 2025
Notes to the report on remuneration
These notes set out on pages 79 to 89 supplement the information on pages 61 to 78, combining both statutory and voluntary disclosures.
You can also find more information about our current global workforce, along with details of our voluntary global and UK ethnicity pay gaps,
by visiting our website: www.schroders.com/inclusion-and-diversity
Additional detail on 2025 executive Director pay outcomes
Single total remuneration figure for each executive Director (audited)
The total remuneration of each executive Director for the years ended 31December 2025 to 31December 2023 is set out in the table below.
(£’000)
Base
salary
1
Benefits and
allowances
2
Retirement
benefits
3
Total fixed
pay
Initial bonus
outcome
Discretionary
bonus
reduction/
waiver
Annual
bonus
award
4
LTIP vested
5
Total
variable pay
Total
remuneration
2025 Richard Oldfield 479 9 40 528 5,799 – 5,799 – 5,799 6,327
Meagen Burnett 375 7 40 422 1,948 – 1,948 – 1,948 2,370
Johanna Kyrklund 375 16 40 431 4,460 – 4,460 – 4,460 4,891
2024 Richard Oldfield 375 7 40 422 1,732 (342) 1,390 – 1,390 1,812
Peter Harrison 429 13 39 481 4,553 (550) 4,003 – 4,003 4,484
2023 Peter Harrison 500 16 45 561 5,879 (250) 5,629 – 5,629 6,190
Richard Oldfield 94 1 10 105 731 – 731 – 731 836
Richard Keers 281 5 34 320 2,066 – 2,066 – 2,066 2,386
1. Represents the value of salary earned and paid during the financial year. Upon appointment as Group Chief Executive, Richard Oldfield deferred his salary
increase from £375,000 to £500,000 until 1 March 2025.
2. Includes one or more of: private healthcare, life assurance, permanent total disability insurance, Share Incentive Plan matching shares, private use of a
company car and driver and certain legacy allowances relating to discontinued benefits.
3. Represents the aggregate of employer contributions to defined contribution (DC) pension arrangements and cash in lieu of pension. The table below shows
how the retirement benefits figures are comprised for each executive Director.
4. Pages 64 to 66 set out the basis on which annual bonus awards for 2025 were determined. The table on page 80 breaks down the annual bonus awards for
2025 into cash paid in February 2026 and the upfront fund awards, deferred fund awards and deferred share awards that will be granted in March 2026.
Details of the 2024 and 2023 annual bonus determination are set out in the 2024 and 2023 Directors’ Remuneration Reports respectively.
5. As noted on page 64, none of the current executive Directors were eligible for awards under the 2022 LTIP, whose performance period concluded on 31
December 2025. Peter Harrison received a 2022 LTIP grant, pro-rated for time in employment, with further details of expected vesting set out on page 80.
Page 71 sets out information on LTIP awards to be granted to the executive Directors in March 2026 in respect of 2025. Page 84 sets out information on
LTIP awards granted to the executive Directors during 2025 in respect of 2024. The former executive Directors waived entitlement to the 2020 and 2021 LTIP
awards, therefore no amounts vested in respect of these awards for 2023 or 2024.
Retirement benefits – additional detail (audited)
The following table shows details of retirement benefits provided to executive Directors for the years ended 31December 2025 and
31December 2024. For the executive Directors, the sum of employer contributions and cash in lieu each year is reflected in the single total
remuneration figures above. Employer contributions represent contributions paid into DC pension arrangements during the year and
exclude any contributions made by the Directors. There has been no defined benefit (DB) pension accrual since 30 April 2011.
£’000
2025 employer
contributions
2025 cash in lieu
of pension
2025 retirement
benefits total
2024 employer
contributions
2024 cash in lieu
of pension
2024 retirement
benefits total
Normal
retirement age
3
Richard Oldfield
1
– 40 40 – 40 40 60
Meagen Burnett
1
5 35 40 – – – 60
Johanna Kyrklund
1
4 36 40 – – – 60
Peter Harrison
2
– – – 9 30 39 60
1. Meagen Burnett and Johanna Kyrklund were not executive Directors in 2024. Both received a combination of employer contributions to the Group’s DC
pension arrangement and cash in lieu of pension contributions. Richard Oldfield received cash in lieu of pension contributions.
2. Peter Harrison received a combination of employer contributions to the Group’s DC pension arrangement and cash in lieu of pension contributions.
3. Normal retirement age is the earliest age at which a Director can elect to draw their pension under the rules of the Schroders Retirement Benefits Scheme
without the need to seek the consent of the Company or the pension scheme trustee.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration
79 Schroders Annual Report and Accounts 2025
Variable pay awards – additional detail (audited)
The table below sets out details of how the 2025 annual bonus award for each executive Director was structured, including the portion
granted under the Deferred Award Plan (DAP), along with the face value of the LTIP award to be granted in March 2026 (see page 71).
£’000
Upfront cash
bonus award
DAP award
Total annual
bonus award
Percentage
deferred
LTIP award
Percentage of
total variable
pay deferred
Upfront fund
award
Deferred share
award
Deferred fund
award Total DAP award
LTIP to be
granted in 2025
Richard Oldfield 1,640 1,640 1,889 630 4,159 5,799 43 % 2,400 60 %
Meagen Burnett 610 610 546 182 1,338 1,948 37 % 1,100 60 %
Johanna Kyrklund 1,092 1,092 1,707 569 3,368 4,460 51 % 1,000 60 %
Upfront fund awards normally cannot be exercised for six months from grant, but are not at risk of forfeiture if the holder resigns and
leaves the Group. Deferred share awards are conditional rights to receive Schroders shares, granted as nil-cost options. They normally
require the holder to remain in employment for three years following grant to vest in full and are available to exercise in three equal
instalments on or around the first, second and third anniversaries of grant. Deferred fund awards are conditional rights to receive a
cashsum with an initial value equal to the value of bonus being deferred, granted as nil-cost options. That value is notionally invested in
a range of Schroders funds and so the actual amount paid when the award is exercised is the initial amount plus or minus returns on
those notional investments. They normally require the holder to remain in employment for three years following grant to vest in full,
subject to an additional six-month holding period. They are therefore available to exercise in three equal instalments on or around six
months from the first, second and third anniversaries of grant. No shares can be sold by executive Directors until they have met the
shareholding requirements, as set out on page 85.
Assessment of 2022 LTIP award vesting
LTIP awards were granted in March 2022 to Peter Harrison and Richard Keers with face values of £600,000 and £400,000 respectively.
Bothindividuals are no longer in role, and their awards were pro-rated for time in employment on departure.
These awards were subject to performance conditions over the period from 1 January 2022 to 31December 2025. The earnings per share
(EPS) and net new business (NNB) financial targets are expected to lapse in full, whilst the climate metric target is expected to be met in full,
with 100% of global electricity from renewable sources and a Leadership CDP rating in all four years. As a result, the expected vesting
outcome is 20% out of a maximum 100%.
The current executive Directors were not eligible to receive 2022 LTIP awards.
2022 LTIP metric Weighting
Targets
Outcome
Metric payout
% of max for
metric
Bonus payout
% of max
bonusThreshold (25%) Maximum (100%)
Earnings per share
1
40%
20% higher than
the growth in a
composite index
40% higher than
the growth in a
composite index
-33.1% 0% 0%
Cumulative net new business
2
40% £15bn £25bn £8.5bn 0% 0%
Climate impact
3
20%
92% of global
electricity from
renewable
sources
100% of global
electricity from
renewable sources
100% 100% 20%
Overall vesting 20%
1. EPS excluding revenue and costs relating to acquisitions classified as exceptionals but including any other exceptionals.
2. NNB excluding joint ventures and associates.
3. Climate impact target measuring Schroders’ global electricity from renewable sources, subject to an underpin of maintaining a Leadership CDP rating in all
four years.
Key takeaways from section
Annual bonus awards of £5,799,000, £1,948,000 and £4,460,000 were made to the Group Chief Executive, Chief Financial Officer and
Group Chief Investment Officer respectively, based on the 2025 balanced scorecard outcomes.
In combination with the LTIP awards to be granted in March 2026, 60% of executive Director variable pay for 2025 was deferred,
providing long-term alignment and retention. A significant portion of the bonus was delivered in share and fund awards, creating
alignment with shareholders and clients.
The 2022 LTIP awards made to Peter Harrison and Richard Keers are expected to vest at 20% of maximum, with awards pro-rated for
time served in role.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
80 Schroders Annual Report and Accounts 2025
Non-executive Directors’ remuneration (audited)
Non-executive Directors receive fixed fees to reflect their Board and Committee responsibilities. They are not eligible to participate in any variable
pay arrangements. This section provides an overview of the fees and resulting total remuneration received by each non-executive Director.
The fees for the non-executive Directors were not changed in 2025. The structure of non-executive Directors’ fees is shown below.
£
Chair
625,000
Board member
80,000
Senior Independent Director
25,000
Audit and Risk Committee Chair
1
25,000
Audit and Risk Committee member
20,000
Nomination and Governance Committee Chair
–
Nomination and Governance Committee member
–
Remuneration Committee Chair
1
25,000
Remuneration Committee member
20,000
1. In addition to the Committee membership fee.
The total remuneration of each of the non-executive Directors for the years ended 31December 2025 and 31December 2024 is set out in
the table below:
2025 2024
£'000 Basic fee
Committee
Chair
Committee
member SID
Taxable
benefits Total Basic fee
Committee
Chair
Committee
member SID
Taxable
benefits Total
Dame Elizabeth Corley
625
–
–
–
–
625
625
–
–
–
2
627
Rhian Davies
–
–
–
–
–
–
26
8
13
–
–
47
Claire Fitzalan Howard
80
–
–
–
–
80
80
–
–
–
1
81
Rakhi Goss-Custard
80
–
20
–
–
100
80
–
20
–
–
100
Ian King
80
–
20
8
1
109
80
20
25
–
125
Iain Mackay
80
25
26
17
18
166
80
17
20
–
–
117
Leonie Schroder
80
–
–
–
–
80
80
–
–
–
–
80
Annette Thomas
80
–
20
–
1
101
80
–
20
–
–
100
Frederic Wakeman
80
–
40
–
10
130
80
–
28
–
–
108
Deborah Waterhouse
27
–
7
–
–
34
80
–
28
–
1
110
Matthew Westerman
80
25
40
–
–
145
80
25
40
–
–
145
The fees shown in each Director’s case reflect the portion of 2025 and 2024 that they each served in their respective roles.
– Rhian Davies stepped down from the Board on 25 April 2024.
– Ian King stepped down from the role of Senior Independent Director at the conclusion of the Company’s AGM on 1 May 2025,
remainingon the Board as an independent non-executive Director.
– Iain Mackay was appointed as Senior Independent Director at the conclusion of the Company’s AGM on 1 May 2025, succeeding
IanKing. Iain Mackay was appointed as a member of the Remuneration Committee on 18 September 2025.
– Deborah Waterhouse stepped down from the Board at the conclusion of the Company’s AGM on 1 May 2025.
Taxable benefits showing in the table above represent travel expenses reimbursed by the Company, including for US-based Directors.
Key takeaways from section
– Non-executive Director remuneration comprised fixed pay only.
– There have been no changes to the structure or levels of non-executive Director fees in 2025.
– Year-on-year changes in total remuneration paid to non-executive Directors reflect changes in Committee responsibilities and/or
the timing of their appointments.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
81 Schroders Annual Report and Accounts 2025
Workforce and Director pay outcomes
The statutory disclosures presented in this section offer insights into the relationship between employee and executive Director pay
outcomes. The higher proportion of total remuneration that is variable for executives can sometimes make year-on-year comparisons
challenging. Looking at multiple years of data can help identify overarching trends.
UK pay ratios
The table below compares the Group Chief Executive’s single total remuneration figure for 2025 with the remuneration of the Group’s UK
workforce as at 31December 2025, along with the comparative figures for the previous year.
As noted on page 66, the bonus outcome for the Group Chief Executive in 2025 represents an overall scorecard outcome of 96%, reflecting
strong performance and favourable markets in the year. This is in contrast to 2024 when the bonus outcome for Mr Harrison was reduced by
a discretionary downwards adjustment applied by the Committee to reflect the stakeholder experience in the year. The median (and quartile)
outcomes for UK employee total pay and benefits have moderately increased in the year but the median salary was unchanged as a result of
salary increases made earlier in 2025 being lower than previous years. As a result of these factors, the CEO pay ratio has increased this year.
The Group is committed to ensuring pay fairness throughout its workforce, and the principle of providing greater certainty in remuneration
through proportionally higher fixed pay for junior and lower-paid employees aligns with the Group’s pay and reward policies for the
globalworkforce.
Method
Pay ratio
to lower
quartile
UK
employee
Pay ratio
to
median
UK
employee
Pay ratio
to upper
quartile
UK
employee
Lower quartile UK
employee
Median UK employee
Upper quartile UK
employee
Total pay
and
benefits
Total
salary
Total pay
and
benefits
Total
salary
Total pay
and
benefits
Total
salary
2025 Option A 94:1 58:1 34:1 67,358 55,000 108,725 80,000 185,748 124,100
2024
Option A
69:1
44:1
27:1
69,105
54,100
107,218
80,000
173,378
120,000
2023
Option A
93:1
59:1
37:1
66,536
52,938
105,779
78,000
169,250
115,000
2022
Option A
74:1
46:1
28:1
63,067
49,702
101,409
75,000
167,622
110,000
2021
Option A
134:1
84:1
49:1
63,093
47,000
100,761
69,433
173,941
100,000
2020
Option A
110:1
70:1
42:1
57,205
45,000
89,541
58,000
150,310
122,500
2019
Option A
117:1
72:1
42:1
55,400
50,000
89,743
68,000
154,667
85,000
The rules that require this disclosure set out three methodologies that companies can adopt, termed Options A, B and C. The Group has
adopted Option A as this is the most robust methodology, requiring the Group to calculate the pay and benefits of all its UK employees in
order to identify the total remuneration at the upper quartile, median and lower quartile. We have based the calculation of these total
remuneration quartiles on salaries as at 31December 2025 plus any annual bonus award in respect of 2025, any LTIP with a performance
period ending in 2025, and any other incentive awards granted during 2025. In calculating these ratios, salaries for employees who work
part-time have been pro-rated up to a full-time equivalent. Total pay and benefits for UK employees does not include taxable travel benefits
such as the reimbursement of occasional travel home from work that was covered by the Group’s Travel and Expenses Policy; and certain
non-taxable benefits are excluded, including Share Incentive Plan matching shares and “‘Give as You Earn” matching payments. No other
assumptions or statistical modelling were required.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
82 Schroders Annual Report and Accounts 2025
Comparing Director and wider workforce pay
The Committee considers executive Director pay structures and outcomes in the context of wider workforce pay. The table below compares
percentage change in base salary/fees, benefits and annual bonus awards for the Directors with the average change across employees of the
Group as a whole for the past five performance years. The outcome for employees of Schroders plc is also included to satisfy the statutory
requirement, but is shown as “not applicable” given that the legal entity does not itself have any employees. The values shown for the
executive Directors are based on those shown in the single total remuneration figure table on page 79 and those for non-executive Directors
are based on the table on page 81. The employee mean and median figures in this table represent the change experienced for individual
employees who were employed by Schroders in comparator years.
2025 2024 2023 2022 2021
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Executive Directors
Richard
Oldfield 28% 4% 317% 299% 327% 90% n/a n/a n/a n/a n/a n/a n/a n/a n/a
Meagen
Burnett n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Johanna
Kyrklund n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Non-executive Directors¹
Dame
Elizabeth
Corley 0% -100% n/a 0% -43% n/a 40 % 180 % n/a n/a n/a n/a n/a n/a n/a
Rhian Davies n/a n/a n/a -68% n/a n/a 0 % 180 % n/a 0 % 0 % n/a 0 % 0 % n/a
Claire
Fitzalan
Howard 0% (57%) n/a 0% -70% n/a 0 % 260 % n/a 0 % 0 % n/a 51 % 0 % n/a
Rakhi Goss-
Custard 0% 0% n/a 0% n/a n/a 0 % 108 % n/a 0 % -50 % n/a 0 % 0 % n/a
Ian King
(13%) 109% n/a 0% n/a n/a
2 % 54 % n/a 2 % 0 % n/a 0 % 0 % n/a
Iain Mackay
26% n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a n/a n/a n/a n/a
Leonie
Schroder 0% 0% n/a 0% n/a n/a 0 % n/a n/a 0 % n/a n/a 0 % -100 % n/a
Annette
Thomas 0% n/a n/a 200% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Frederic
Wakeman 11% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Deborah
Waterhouse (69%) (87%) n/a -10% -62% n/a 11 % 157 % n/a 8 % 0 % n/a 0 % 0 % n/a
Matthew
Westerman 0% 0% n/a 0% n/a n/a 6 % n/a n/a 14 % n/a n/a 43 % n/a n/a
Employees
Employees
of Schroders
plc n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Employees of the Group²
,
³
,
⁴
Mean 4% 8% 28% 7% 7% 2% 8 % 10 % -4 % 10 % 8 %
-10%⁵
9 % 5 %
+49%⁵
-22%⁶ +78%⁶
Median 0% 7% 14% 4% 5% -3% 6 % 7 % -15 % 5 % 6 %
-17%⁵
2 % 3 %
+34%⁵
-28%⁶ +62%⁶
1. The fee increases shown reflect the timing of appointment to the Board and/or roles on Board Committees as set out on page 81. Increases in benefits reflect
travel expenses, which vary each year based on actual usage, with amounts listed on page 81.
2. For base salary, employees of the Group are those who were in employment between 31December 2024 and 31December 2025 and the figures shown
represent the salary increase over this period. Salary adjustments agreed as part of the 2025 compensation review will be effective in 2026.
3. For benefits, the mean percentage change for employees of the Group is a per capita figure for those who were in employment for all of the two years under
review and represents the average change in benefits value during the year; while the median is the median percentage change for individual employees
within the same population.
4. For bonus, the mean and median percentage changes for employees of the Group are the mean and the median respectively of the individual year-on-year
percentage changes in bonus for employees who were in employment and eligible for a bonus for all of 2024 and 2025. More commentary on the annual
bonus award for each executive Director can be found on pages 64 to 66.
5. Excluding Share in Success Award, an award granted in December 2021 to circa 4,600 employees valued at the equivalent of 5% of annual salary.
6. Including Share in Success Award.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
83 Schroders Annual Report and Accounts 2025
Alignment with shareholders and clients
By delivering a substantial portion of variable pay in shares and funds, we foster meaningful alignment between our executive Directors,
shareholders and clients. The tables below provide details of awards granted, movements in share and fund awards heldby the executive
Directors in the year and the total share interests for all our Directors.
DAP and LTIP awards granted during 2025 (audited)
The following awards were granted under the DAP on 11 March 2025 in respect of deferred bonuses for performance during 2024.
Nofurther performance conditions need to be met for awards to vest. The terms of the awards are the same as those that apply to the
deferred bonus awards described on page 80. These awards were included in the 2024 single total remuneration figures disclosed last year
for Richard Oldfield, and form part of the prior-year value shown in this year’s single total remuneration figures on page 79. They are also
shown in the tables of rights under fund and share awards later in this section.
Individual
Basis of DAP award
granted
Face value at grant (£’000)
Share price
at grant
Number of
shares Performance conditions
Upfront fund
awards
Deferred share
awards
Deferred
fund awards
Total DAP
award
Richard Oldfield
Deferral of
bonus awarded
for performance
in 2024
578 176 59 813 4.07 43,102
Awarded for
performance in 2024. No
further performance
conditions apply
Meagen Burnett
250 375 375 1,000 4.07 92,047
Johanna Kyrklund
460 276 1,404 2,140 4.07 67,746
The following awards under the LTIP were granted on 10 March 2025 as nil-cost options. They are also reflected in the table of rights under
share awards on page 85. Vesting of LTIP awards granted during 2025 is subject to the performance conditions detailed in the 2024 Annual
Report and Accounts.
Individual
Basis of LTIP award
granted
Face value at
grant (£’000)
Vesting
maximum as %
of face value
% of face value
that would vest
at threshold
1
Share price at grant
Number of
shares End of performance period
Richard Oldfield
A specified face
value of shares
on the date of
grant
1,500 100 % 25 % 4.07 368,188 31/12/2028
Meagen Burnett
938 100 % 25 % 4.07 230,117 31/12/2028
Johanna Kyrklund
750 100 % 25 % 4.07 184,094 31/12/2028
1. Percentage of face value that would vest if performance measures were at the threshold level to achieve non-zero vesting.
All DAP share awards and LTIP awards were granted over ordinary shares. The number of shares under each DAP share award and LTIP
award is determined by dividing the grant date face value by the mid-market closing share price on the last trading day prior to the date of
grant. Annual bonus and LTIP awards (including bonus awards delivered via the DAP) are subject to the Group Malus and Clawback Policy.
Directors’ rights under fund awards (audited)
Directors had the following fund award rights under the Group’s incentive plans, based on the award values at grant:
Unvested fund
awards £’000
Vested fund
awards £’000 Total £’000
Richard Oldfield
At 31 December 2024
70
–
70
Granted
59
578
637
Vested
(23)
23
–
Exercised
–
(578)
(578)
At 31 December 2025
106
23
129
Meagen Burnett
At 31 December 2024
452
43
495
Granted
375
250
625
Vested
(123)
123
–
Exercised
–
(417)
(417)
At 31 December 2025
704
–
704
Johanna Kyrklund
At 31 December 2024
2,477
4,855
7,333
Granted
1,404
460
1,864
Vested
(1,093)
1,093
–
Exercised
–
(2,663)
(2,663)
At 31 December 2025
2,788
3,746
6,534
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
84 Schroders Annual Report and Accounts 2025
Directors’ rights under share awards (audited)
Directors had the following share rights under the Group’s incentive plans. These are in the form of nil-cost options, shown based on the
number of shares in each case.
Unvested LTIP awards
1
Other unvested share
awards
2
Vested but
unexercised share
awards Total
Richard Oldfield
(ordinary shares)
At 31 December 2024
101,600
56,381
–
157,981
Granted
368,188
43,102
–
411,290
Dividend-equivalent accrual
–
5,052
1,177
6,229
Vested
–
(18,793)
18,793
–
Lapsed where LTIP conditions
were not met
– – – –
Exercised
–
–
–
–
At 31 December 2025
469,788
85,742
19,970
575,500
Meagen Burnett
(ordinary shares)
At 31 December 2024
–
127,592
53,142
180,734
Granted
230,117
92,047
–
322,164
Dividend-equivalent accrual
–
9,085
7,999
17,084
Vested
–
(74,567)
74,567
–
Lapsed where LTIP conditions
were not met
– – – –
Exercised
–
–
–
–
At 31 December 2025
230,117
154,157
135,708
519,982
Johanna Kyrklund
(ordinary shares)
At 31 December 2024
–
310,936
601,672
912,608
Granted
184,094
67,746
–
251,840
Dividend-equivalent accrual
–
11,822
46,627
58,449
Vested
–
(189,908)
189,908
–
Lapsed where LTIP conditions
were not met
– – – –
Exercised
–
–
(170,996)
(170,996)
At 31 December 2025
184,094
200,596
667,211
1,051,901
1. These awards will only vest to the extent that the relevant performance conditions are met.
2. No performance conditions apply for these awards.
During 2025, Johanna Kyrklund received an aggregate gain of £629,265, settled in shares, from exercising nil-cost options over 170,996
ordinary shares, granted as part of her prior-year deferred awards.
Executive Director alignment to shareholders
To align the interests of senior management with those of shareholders, the executive Directors and the other members of the Group ExCo
are required, over time, to acquire and retain a holding of Schroders shares or rights to shares. The required shareholdings are 500% of base
salary for the Group Chief Executive and 300% of base salary for the other executive Directors. Shares that count towards this shareholding
policy include the estimated after-tax value of unvested deferred bonus share awards under the DAP (shown as “Other unvested share
awards” above) and vested DAP or LTIP awards (shown as “Vested but unexercised share awards” above). Unvested LTIP awards do not
counttowards the shareholding policy as these rights to shares are subject to performance conditions.
Richard Oldfield, who was appointed as Group Chief Executive on 8November 2024, and Meagen Burnett, who was appointed as an
executive Director on 1 January 2025, will not be able to sell any share awards until they meet the required level. Johanna Kyrklund’s
shareholdings are currently in excess of the required level. The number of shares required to be held will significantly increase on
1March2026, when the increased salaries set out earlier in this report take effect.
Value of shareholding vs. shareholding policy (% of salary) (audited)
Group Chief Executive
Richard Oldfield
500%
328% 451%
Policy
Actual
Chief Financial Officer
Meagen Burnett
300%
241% 284%
Policy
Actual
Chief Group Investment Officer
Johanna Kyrklund
300%
736% 244%
Policy
Actual
n
Policy
n
Shareholding
n
LTIP shares subject to performance conditions
The actual shareholdings in the illustration above are based on salaries and shares held at 31 December 2025, other than the inclusion of
deferred share awards to be granted under the DAP in respect of performance in 2025 (see page 80). For illustration purposes, the estimated
after-tax value of LTIP awards that remain subject to performance conditions are shown separately in the charts above, including those to be
granted in respect of performance in 2025.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
85 Schroders Annual Report and Accounts 2025
Directors’ share interests (audited)
The Directors and their connected persons had the following interests in shares in the Company.
Number of shares at 31 December 2025
Ordinary shares of 20 pence each
Executive Directors
Richard Oldfield
105,313
Meagen Burnett
1,917
Johanna Kyrklund
10,696
Non-executive Directors
Dame Elizabeth Corley
105,294
Claire Fitzalan Howard
1
637,545,055
Rakhi Goss-Custard
8,301
Ian King
13,205
Iain Mackay
—
Leonie Schroder
1
684,673,399
Annette Thomas
—
Frederic Wakeman
—
Deborah Waterhouse
2
4,190
Matthew Westerman
11,764
Between 31December 2025 and 11February 2026, the only movements in the Directors’ share interests were the acquisition under the
ShareIncentive Plan of 113, 92 and 46 ordinary shares by Richard Oldfield, Meagen Burnett and Johanna Kyrklund respectively.
1. The interests of Claire Fitzalan Howard and Leonie Schroder include their personal holdings and the beneficial interests held by them and their connected
persons in their capacity as members of a class of potential beneficiaries under certain settlements made by members of the Schroder family.
2. The interests of Deborah Waterhouse refer to the position as at 1 May 2025, the date she stepped down as a Director of the Company.
Key takeaways from section
– Alignment to shareholders is a key pillar of our remuneration approach, with senior leadership required to hold a meaningful
number of shares.
– The number of shares required to be held will significantly increase on 1 March 2026, when the increased salaries set out earlier in
this report take effect.
– Richard Oldfield, who was appointed as Group Chief Executive on 8November 2024, and Meagen Burnett, who was appointed as
Chief Financial Officer on 1 January 2025, will not be able to sell any share awards until they meet the required level.
– Johanna Kyrklund has met her shareholding requirement, and must maintain shareholdings equivalent to at least 300% of salary.
Contextualising pay outcomes with overall performance
The disclosures that follow provide further details of the relationship between pay outcomes and performance delivered for shareholders.
Relative spend on pay
The charts below illustrate the relative spend on pay for 2025 compared with 2024. The values are taken from the financial statements and
show how remuneration costs compare with shareholder distributions, taxes arising and earnings retained, to illustrate how net operating
income is used.
2025 2024
25%
8%
4%
29%
3%
11%
8%
12%
n
Fixed remuneration
£696.6m -8%
n
Variable remuneration – upfront
£228.3m +12%
n
Variable remuneration – deferred
£99m -4%
n
Other operating expenses
£805.4m +22%
n
Other income/expenses
£82.8m +84%
n
Corporate tax and social security
£296.7m +33%
n
Retained earnings
£241.6m +145%
n
Interim and prior year final
dividend paid
£335.8m +0.5%
31%
8%
4%
27%
2%
9%
4%
14%
n
Fixed remuneration
£759.8m
n
Variable remuneration – upfront
£203.6m
n
Variable remuneration – deferred
£103.3m
n
Other operating expenses
£662m
n
Other income/expenses
£45m
n
Corporate tax and social security
£223.3m
n
Retained earnings
£98.8m
n
Interim and prior year final
dividend paid
£334.2m
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
86 Schroders Annual Report and Accounts 2025
The Group Chief Executive’s total remuneration over the past ten years
The chart below illustrates the Group Chief Executive’s single total remuneration figure over the past tenyears and compares itwith the total
shareholder return ofSchroders shares and the FTSE 100, of which Schroders was a constituent over this period. Further detail on the single
total remuneration figure outcomes andhow variable pay plans have paid out each year isshown in the tablebelow.
Value of £100 invested on
31 December 2015
Group Chief Executive's single total remuneration figure
(£m)
Michael Dobson (MD)
Peter Harrison (PH)
Richard Oldfield (RO)
Schroders ordinary shares
FTSE 100 Index
2015 2016 2017 2018 2019 2020 2021 2022
2023 2024 2025
0.00
50.00
100.00
150.00
200.00
250.00
0
2
4
6
8
10
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Single total remuneration figure
(£’000)¹
,
²
MD
2,451
PH
6,311
7,059
6,735
6,453
6,321
8,434
4,696
6,190
4,484
RO
1,812
6,327
Annual bonus award (outcome as a
% of maximum, oractualaward as
a % of ten-year highest bonus)
3
MD
25%
PH
70%
82%
78%
72%
69%
97%
49%
75%
47%
RO
54%
96%
LTIP (vesting as a % of maximum)
4,5
50%
n/a
0%
50%
50%
50%
50%
n/a
n/a
n/a
1. 2016 remuneration for Michael Dobson reflects the actual remuneration that he received for the portion of 2016 that he served as Group Chief Executive.
2. Peter Harrison was Group Chief Executive from 3 April 2016 until 8 November 2024. The 2016 and 2024 remuneration values above reflect his full-year single
total remuneration figure. Richard Oldfield was appointed Group Chief Executive on 8 November 2024. His 2024 remuneration values are for the full year,
notwithstanding that remuneration outcomes primarily relate to his former role as Chief Financial Officer.
3. From 2020, this represents the Group Chief Executive’s actual annual bonus award as a percentage of the maximum annual bonus award for the year.
Foryears prior to 2020, each annual bonus award is shown as a percentage of the highest bonus award over the past ten years, as no maximum annual
bonusopportunity was in place.
4. 2017 shows the LTIP vesting outcome as “n/a” as Mr Harrison did not receive an LTIP award in 2014 and so had no LTIP due to vest based on performance to
the end of 2017. Mr Harrison waived his 2020 and 2021 LTIP grants, so 2023 and 2024 also show as “n/a”.
5. Mr Oldfield was not eligible to receive a 2022 LTIP vesting, so the 2025 vesting outcome shows “n/a”. Further details of the 2022 LTIP expected vesting
outcomes for the former executive Directors are set out on page 80.
Key takeaways from section
– The relative spend on pay has remained largely consistent from prior years, demonstrating the close linkage between pay and
financial performance.
– Schroders plc total shareholder return is 22% over the past ten years. The single total figure of remuneration paid to the Schroders
Group Chief Executive has remained broadly flat over this same period.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
87 Schroders Annual Report and Accounts 2025
Shareholder voting on remuneration
Each year, shareholders are invited to vote on our annual remuneration report (ARR). In 2023, we also put our Directors’ Remuneration
Policytovote as it had been three years since it was last voted on. The graphs below summarise the voting outcomes ontheseresolutions.
Anew Directors’ Remuneration Policy will be put to shareholder vote at the 2026 AGM.
The following votes were cast in respect of the ARR at our 2025 AGM and the Directors’ Remuneration Policy at our 2023 AGM.
To approve the annual remuneration report at
the 2025 AGM
l
Votes for 1,410,319,377
l
Votes against 10,670,754
Votes withheld 5,431,250
Votes for Votes against
2025 AGM 99% 1%
To approve the triennial Directors’ Remuneration Policy at
the 2023 AGM
l
Votes for 1,347,696,221
l
Votes against 56,519,151
Votes withheld 203,965
Votes for Votes against
2023 AGM 96% 4%
Key takeaways from section
– At the 2025 AGM, we continued to receive strong support from our shareholders in respect of our annual report on remuneration.
– The revised Directors’ Remuneration Policy, presented in full on pages 72 to 78, will be put to a binding shareholder vote at the
upcoming 2026 AGM.
– We value the feedback from our shareholders and look forward to receiving your support on both resolutions.
Other statutory disclosures
Committee advisers
After a competitive bidding process, the Committee appointed
Deloitte as advisers from September 2023. The Committee assesses
the performance of itsadvisers, the associated fees and the quality of
advice provided annually, and ensures that the advice is independent
of any support provided tomanagement. In its latest annual review of
advisers, the Committee elected to retain Deloitte to provide advice
on executive Director pay during the year.
Deloitte attended seven meetings as independent Remuneration
Committee advisers in 2025. A fixed fee structure has operated
since appointment to cover standard services, with any additional
items charged on a time/cost basis. The total fees paid to Deloitte
for advice to the Committee during 2025 on executive Director pay
totalled £228,125.
Deloitte also provide professional services in the ordinary course
of business, including HR consulting services and advice to
management on remuneration design and its regulatory implications,
tax, social security, governance, operational and technical issues;
aswell as other professional services to the Group, including tax,
consulting and regulatory, and support for corporate acquisitions.
The Committee monitors its advisers’ independence, noting that
advice received is predominantly based on objective data trends and
facts. Where relevant, advisers were asked to leave meetings when
sensitive strategic context was being discussed, in recognition of the
advisory roles they may have for competitors.
The Committee also received a market update and data from
Meridian Compensation Partners (Meridian) and used data from
McLagan (Aon) Limited (McLagan) on market conditions and
competitive rates of pay. McLagan provides remuneration
benchmarking data covering a wide cross-section of the Group’s
competitors, including firms that are not publicly listed and so are
notrequired to publish the remuneration of their directors.
Meridianprovides remuneration benchmarking data for US firms.
The total fees paid for advice to the Committee during 2025 on
executive Director pay totalled £20,576 and £8,250 for Meridian and
McLagan respectively.
The Committee is satisfied that the advice received from both
advisers was independent and objective. McLagan is part of Aon plc,
which also provides advice and services to the Group in relation to
pension benefit valuations and pension actuarial advice. Meridian’s
and McLagan’s fees were charged on the basis of a fixed fee for the
preparation of reports setting out the information requested. Neither
Deloitte, Meridian nor McLagan has a connection to the Company or
any individual Director, save as outlined above.
At the invitation of the Committee Chair, the Group Chair, Group Chief
Executive and Chief Financial Officer attended all eight meetings,
andthe Group Chief Investment Officer attended two meetings.
Theexecutive Directors left the meetings when relevant to avoid any
conflicts of interest. The Chief People Officer (and Group General
Counsel in their role as interim Chief People Officer) attended
meetings to provide advice and support to the Committee, and the
Global Head of Reward and People Risk acted as secretary to the
Committee. The Global Head of Sustainable Investment also attended
relevant meetings to provide expert input on the topic of
sustainability measurement.
The Committee received regular updates from the Conduct
Assessment Group, which comprised the control function heads and
Chief People Officer, to ensure that the Group is taking account of
compliance and conduct risk considerations as part of the firm’s
compensation processes. The Chief Risk Officer, Group General
Counsel and Head of Group Internal Audit also advised the
Committee on matters that could influence remuneration
decisions, and were available to attend meetings if required.
To avoid conflicts of interest, no Director or employee participates in
decisions determining their own remuneration.
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
88 Schroders Annual Report and Accounts 2025
Fees from external appointments
The executive Directors are permitted to retain for their own benefit
fees they receive from any external non-executive directorships,
provided the directorships do not relate to any interest held by the
Group. Richard Oldfield, Meagen Burnett and Johanna Kyrklund did
not receive any fees in respect of external non-executive roles during
the course of their appointment to the Company in 2025.
Payments for loss of office and payments to pastDirectors
No payments for loss of office were paid to Directors or former
Directors during 2025. No payments to past Directors were paid
during 2025, except those previously disclosed.
Directors’ service contracts and letters of appointment
Each of the executive Directors has a rolling service contract with a
mutual notice period of six months. Each of the non-executive
Directors has a letter of appointment with a mutual notice period of
six months. Shareholders may review letters of appointment and
service contracts at the Company’s registered office from the date
ofdispatch of the Notice of AGM on business days between 9am
and5pm. Additionally, these documents are available for viewing
ateach AGM.
Further remuneration disclosures
The remuneration disclosures required under the UK Capital
Requirements Regulation are incorporated into the Group’s Pillar 3
disclosures andare available at www.schroders.com/pillar3.
Otherregulatory remuneration disclosures can be found at
www.schroders.com/rem-disclosures.
Committee performance in 2025
The annual review of the Committee’s effectiveness was undertaken
as part of the overall external Board performance review process,
which is described on page 49. The effectiveness of the Committee
was described as very strong. Meetings were well prepared, inclusive
and well chaired, with good discussion around key issues.
By order of the Board
Matthew Westerman
Chair of the Remuneration Committee
11February 2026
Strategic report Governance Financial statements Shareholder and,sustainability information
Notes to the report on remuneration continued
89 Schroders Annual Report and Accounts 2025
Directors’ report
Share capital
Schroders has developed under stable ownership for more than 220
years and has been a public company whose ordinary shares have
been listed on the London Stock Exchange since 1959.
As at 31 December 2025 and the date of this report, the Company’s
share capital comprises 1,612,071,525 ordinary shares of 20 pence
each, of which 1,360,247 are held in treasury by the Company. The
total voting rights in the Company are 1,610,711,278.
Under the terms of the Schroders Employee Benefit Trust and
the Schroder US Holdings Inc. Grantor Trust, ordinary shares are
held in trust on behalf of employee share plan participants.
Thetrustees may exercise their voting rights in any way they think
appropriate. In doing so, they may consider the financial and
non-financial interests of the beneficiaries and their dependants.
Asat 9February 2026, being the last practicable date before the
publication of the Annual Report and Accounts, the Schroders
Employee Benefit Trust and the Schroder US Holdings Inc. Grantor
Trust together held 43,987,771 ordinary shares.
Under the terms of the Share Incentive Plan, as at 9February 2026,
7,402,541 ordinary shares were held in trust on behalf of plan
participants. At the participants’ direction, the trustees can exercise
their voting rights over ordinary shares in respect of participant share
entitlements.
There are no restrictions on the transfer of the Company’s shares,
except for:
– restrictions imposed by laws and regulations
– restrictions on the transfer of shares imposed under the
Company’s Articles of Association or under Part 22 of the UK
Companies Act 2006, in either case after a failure to supply
information required to be disclosed following service of a
request under section 793 of the UK Companies Act 2006
– restrictions on the transfer of shares held under certain
employee share plans while they remain subject to the plan.
The Company is not aware of any agreement between shareholders
that may restrict the transfer of securities or voting rights.
Principal Shareholder Group
The history of Schroders began in 1804 when JH Schröder became a
partner in J.F. Schröder & Co, a London-based firm founded by his
brother JF Schröder. It has evolved since then into the company
today known as Schroders plc. Throughout that time, the Schroder
family have maintained a significant interest in the business, which
the Company believes has been a significant benefit to it. Today, the
interests of some members of the Schroder family (being certain
descendants of the late Helmut Schroder and, in some cases, their
spouse or former spouse) are spread across a number of parties,
who are collectively known as the Principal Shareholder Group.
The Principal Shareholder Group comprises a number of private
trustee companies (and investment companies controlled by those
trustee companies), a number of private investment companies, a
number of Schroder family individuals, and a Schroder family charity,
which, directly or indirectly, are shareholders of the Company.
The Principal Shareholder Group currently holds 713,021,408
ordinary shares (44.27% of the issued ordinary shares excluding
treasury shares) in the Company. This is comprised as follows:
A. 659,767,010 of the ordinary shares (40.96%) are owned directly
or indirectly by four private trustee companies which act as the
trustees of various trusts settled by certain members of the
Schroder family and investment companies wholly owned by the
private trust companies. The trustee companies are Vincitas
Limited, Veritas Limited, Alster Limited and Treva Limited. Flavida
Limited and Fervida Limited are protector companies which act as
protectors of certain of those trusts, and therefore also form part
of the Principal Shareholder Group.
B. 29,457,871 of the ordinary shares (1.83%) are owned by certain
trustee and investment companies following the execution of the
estate of Bruno Lionel Schroder (deceased). The trustee
companies are Lionel Trustees (UK) I Limited and Lionel Trustees
(UK) II Limited. The investment companies are MEB Investments
Limited, CRH Investments Limited and JMF Investments Limited.
C. 21,437,731 of the ordinary shares (1.33%) are personally held,
directly or indirectly, by certain Schroder family individuals (who
are direct descendants of the late Helmut Schroder or, in some
cases, a former spouse of such direct descendants).
D. 2,358,796 of the ordinary shares (0.15%) are owned by the
Schroder Charity Trust, a family charity.
Companies with a shareholder or shareholders who could, when
acting in concert, exercise 30% or more of the voting rights of a
company at a general meeting were required under the Listing Rules
to enter into a binding agreement with that shareholder or
shareholders. This was intended to ensure that the parties to the
agreement comply with certain independence provisions in the
Listing Rules. Accordingly, on 14 November 2014, the Company
entered into such an agreement with members of the Principal
Shareholder Group holding ordinary shares at that time.
On 29July 2024, the Listing Rules were amended and a relationship
agreement was no longer required, and as such
the Relationship Agreement automatically terminated on that
date with immediate effect, in accordance with its terms.
The UK Listing Rules maintain the requirement for companies
with a controlling shareholder (such as the Principal Shareholder
Group) to demonstrate that they can carry on business
independently from their controlling shareholder. They are also
required to include certain disclosures regarding compliance with
these independence requirements. These can be found below.
The Company’s Group provides private banking and wealth
management services to certain members of the Principal
Shareholder Group. These arrangements are conducted at arm’s
length and on normal commercial terms. In accordance with UK
Listing Rule 6.2.3, the Board confirms that, for the year ended
31December 2025:
– the Company has complied with the independence provisions
included in the UK Listing Rules
– so far as the Company is aware, the independence provisions
included in the UK Listing Rules have been complied with by the
members of the Principal Shareholder Group.
Strategic report Governance Financial statements Shareholder and sustainability information
Directors’ report
90 Schroders Annual Report and Accounts 2025
The information in the following sections of this Annual Report
and Accounts forms part of this Directors’ report:
– Strategic report
– Board of Directors and Company Secretary
– Corporate governance report, including the Nomination
and Governance Committee report and the Audit and Risk
Committee report
– Statement of Directors’ responsibilities
Substantial shareholdings
The table below shows the notifiable holdings of major shareholders
in the voting rights of the Company, as at 31December 2025,
asdisclosed to the Company in accordance with the Disclosure
Guidance and Transparency Rules.
Shareholder % of voting rights held
Vincitas Limited
1
24.18
Veritas Limited
1
15.22
Flavida Limited
1
24.27
Fervida Limited
1
16.27
Tikehau Capital SCA 5.20
Silchester International Investors LLP
5.01
HSBC Holdings plc
2
3.45
Sir Michael Kadoorie
3
3.44
1. Flavida Limited and Fervida Limited are protector companies and have
made notifications as protectors of certain settlements, which include the
holdings of Vincitas Limited and Veritas Limited.
2. HSBC Holdings plc is acting as a corporate director for the underlying client.
3. Shares are held through Orchid Equity Limited.
There have been no other changes to the notifications disclosed in
the table or additional notifications as at the date of this report.
It is our policy to provide shareholders with a progressive and
sustainable dividend, targeting a payout ratio of around 50%. The
payout ratio is determined as the total dividend per share in respect
of the year, divided by the Group’s basic operating earnings per
share. In line with this policy, the Board recommends a final dividend
of 15.0 pence per share (2024: 15.0 pence per share), which, if
approved by shareholders at the 2026 AGM, will be paid on 23April
2026 to shareholders on the register of members at close of
business on 13March 2026. It means a total dividend for the year of
21.5 pence per share (2024: 21.5 pence per share), representing a
payout ratio of 59% (2024: 76%
4
).
2025 2024
pence £m pence £m
Interim
6.5
101.6
6.5
101.2
Final
5
15.0
234.9
15.0
234.2
Total
21.5
336.5
21.5
335.4
4. The 2024 comparatives have been re-presented (see Presentational
changes on page 151)
5. Subject to approval by shareholders at the 2026 AGM. Final proposed
dividend for 2025, actual paid for 2024.
In setting the dividend, the Board has regard to overall Group
strategy, capital requirements, liquidity and profitability.
Thisapproach enables the Group to maintain sufficient surplus
capital to take advantage of future investment opportunities, while
providing financial security to withstand possible risk scenarios and
periods of economic downturn.
The distributable profits of Schroders plc are £2.7 billion (2024: £2.8
billion). The Group’s ability to pay dividends is, however, restricted by
the need to hold regulatory capital and to maintain sufficient
operating capital to support its ongoing business activities. Operating
capital requirements include co-investments with clients and seed
investments in our funds to support new investment strategies.
Certain circumstances could adversely impact the Group’s ability to
pay dividends in line with the policy. This includes a significant
increase in the ratio of total costs to net income. After deducting the
regulatory capital requirement and the regulatory capital buffer,
there continues to be sufficient capital to maintain our current
dividend level for at least two years before taking account of any
future profits. The Schroders Employee Benefit Trust and the
Schroder US Holdings Inc. Grantor Trust have waived their rights to
dividends paid on the ordinary shares in respect of 2025 and future
periods. See notes 6 and 21 to the financial statements.
2026 Annual General Meeting
The 2026 AGM will be held on Thursday 16April 2026 at 11.30am.
Allresolutions are voted on separately and the final voting results will
be published as soon as practicable after the meeting. Together with
the rest of the Board, the Chairs of the Nomination and Governance,
Audit and Risk, and Remuneration Committees will be present to
answer questions.
Rule 9 waiver and authority to purchase own shares
The Company simplified its dual share class structure on
20September 2022. As a result, the aggregate holding of the Principal
Shareholder Group decreased from 47.93% of ordinary shares.
At the 2025 AGM, the Company was authorised by shareholders to
purchase up to 122,131,453 ordinary shares. At the 2026 AGM, the
Board will seek authority to purchase up to 122,513,543 ordinary
shares so that, if such repurchases were exclusively from persons
other than the Principal Shareholder Group, this would not result in
the Principal Shareholder Group holding more than 47.93% of the
Company’s voting ordinary shares, which is the level it held prior to
the simplification of the Company’s dual share class structure in
September 2022. Exercise of this authority would be subject to prior
consent of the Prudential Regulation Authority.
If the Company were to buy back shares, it is likely that the Principal
Shareholder Group’s overall ownership in the Company would
passively increase from the current level of 44.27% (excluding
treasury shares). If this were to happen, under the Takeover Code
the Principal Shareholder Group would be required to make a
mandatory cash offer for the whole Company. However, the
Company has obtained a waiver from the Takeover Panel that
exempts the Principal Shareholder Group from this obligation as
aresult of any buyback of shares. This waiver is conditional on the
independent shareholders approving the Waiver Resolution at the
2026 AGM.
Importantly, the waiver will not permit the Principal Shareholder
Group’s holding of ordinary shares to increase above the 47.93%
holding of voting ordinary shares held prior to the simplification of
the Company’s dual share class structure without triggering a
mandatory cash offer for the whole Company.
The Board expects to seek renewal of the Buyback Authority (and the
associated Waiver Resolution) annually until such time as the
Principal Shareholder Group’s holding of ordinary shares (excluding
treasury shares) has returned to the level of 47.93%.
Strategic report Governance Financial statements Shareholder and sustainability information
Directors’ report continued
91 Schroders Annual Report and Accounts 2025
Schroders Annual Report and Accounts 2025
Stakeholder engagement
Details of the Company’s approach to stakeholder engagement and
how stakeholders’ interests have shaped our decisions throughout
the year can be found on pages 32 to 33 and 46 to 47.
Employment practices
Details of the Company’s employment practices, including diversity
and employee engagement, can be found in the Strategic report
on pages 23 to 24.
Workforce diversity
Understanding and valuing our diversity starts with accurate data.
Bycontinuously collecting and analysing data on representation,
wegain meaningful insights that help shape a more inclusive culture
at Schroders. These insights guide where we focus our actions and
help us hold ourselves to account.
We ask colleagues to update their diversity information regularly and
make sure new joiners know why this matters. By ensuring our data
is up to date and accurate, we build a clearer and more reliable
picture of our workforce.
We are committed to being transparent about our progress.
That is why we voluntarily publish our UK ethnicity pay gap and
global gender pay gap, enabling a clear view of how we’re
progressing inclusion and diversity at Schroders. More on workforce
diversity andrepresentation – including our latest gender pay gap
reporting – can be found in our Reporting Centre
(www.schroders.com/reportingcentre).
We meet the FTSE Women Leaders targets for women’s board
representation and comply with the Parker Review
recommendations. As a signatory to the Women in Finance Charter,
we support its principles and regularly publish updates on our
progress to maintain transparency. Our Board-approved 2030
inclusion and diversity aspirations include increasing ethnic minority
representation among our UK employee population to 25% and to
20% in our UK senior management population. We are committed to
ensuring equal opportunities for all, making appointments based on
each person’s skills and experience.
As at 31December 2025, the Company has met the following FCA
Diversity Targets (as required by UK Listing Rule 6.6.6(9):
– at least 40% of the Board being women (2025: 58%)
– at least one of the senior Board positions being held by a
woman (2025: Chair, CFO)
– at least one member of the Board being from an ethnic minority
background (2025: two).
The data required by UK Listing Rule 6.6.6(9) for the Board of
Directors and executive management is set out in the table below.
Asrequired by UK Listing Rule 6.6.6(11), the data is based on
information collected via self-reporting by employees and Board
members and existing information held by the Company’s People
and Culture, and Legal and Governance teams.
Gender diversity – as at 31 December 2025
Schroders plc Board – Gender diversity representation
2025
Number of Board
members
Percentage of the
Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
1
Percentage of
executive
management
Men
5
42%
2
6
60%
Women
7
58%
2
4
40%
Not specified/prefer not to say
–
–%
–
–
–%
Schroders plc senior management – Gender diversity representation
2025
Senior managers
2
Subsidiary board
members
3
Total senior
management
4
All employees
Men
65%
76%
68%
55%
Women
35%
24%
32%
45%
Not specified/prefer not to say
–%
–%
–%
–%
1. Executive management refers to the Group Executive Committee (Group ExCo) and the Group Company Secretary.
2. Senior managers includes members of the Group ExCo, the direct reports of the Group ExCo (ExCo-1) and the direct reports one level below that (ExCo-2), in each
case excluding administrative and other ancillary roles. The data excludes Board members of Schroders plc and includes some employees who are also subsidiary
board members.
3. Subsidiary board members comprises board members of subsidiaries who are not classified as senior managers.
4. Total senior management refers to the total of senior managers and subsidiary board members.
Ethnic diversity representation – as at 31 December 2025
2025
Number of
Board
members
Percentage of the
Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
1
Percentage of
executive
management
White British or other white (including minority white groups)
10
84%
4
10
100%
Mixed/Multiple ethnic groups
1
8%
–
–
–%
Asian/Asian British
1
8%
–
–
–%
Black/African/Caribbean/Black British
–
–%
–
–
–%
Other ethnic group, including Arab
–
–%
–
–
–%
Not specified/prefer not to say
–
–%
–
–
–%
Strategic report Governance Financial statements Shareholder and sustainability information
Directors’ report continued
92 Schroders Annual Report and Accounts 2025
Indemnities and insurance
Shareholders have authorised the Company to provide indemnities
to, and to fund defence costs for, Directors in certain circumstances.
On appointment, all Directors are granted an indemnity as defined in
the Companies Act 2006 in respect of any third-party liabilities that
they may incur as a result of their service on the Board. All Directors’
indemnities were in place during the financial year and remain in
force. Directors’ and Officers’ Liability Insurance is maintained by the
Company for all Directors.
Under the Trust Deed and Rules of the Schroders Retirement Benefit
Scheme (Scheme), the Company provides a qualifying pension
scheme indemnity in line with the Companies Act 2006. The
indemnity covers each Director of the trustee company that acts as a
trustee of the Scheme. The provisions have been in force during the
financial year.
As part of the integration of Cazenove Capital, the Cazenove Capital
Management Limited Pension Scheme was merged with the
Schroders Retirement Benefits Scheme, with effect from
31December 2014. Pursuant to that merger, a qualifying pension
scheme indemnity in line with the Companies Act 2006 is provided
by Schroders plc for the benefit of the directors of Cazenove Capital
Management Pension Trustee Limited, a subsidiary of the Company
at that time. This indemnity remains in force and covers, to the
extent permitted by law, certain losses or liabilities incurred by the
directors of Cazenove Capital Management Pension Trustee Limited
in connection with that company’s activities as trustee of the
Cazenove Capital Management Limited Pension Scheme.
Directors’ Conflicts of Interest and Recusal Policy
The Company has procedures to identify, authorise and manage
conflicts of interest, including of Directors of the Company. They have
operated effectively during the year. In circumstances where a
potential conflict arises, the Board (excluding the Director concerned)
will consider the situation and either authorise the arrangement in
accordance with the Companies Act 2006 and the Company’s Articles
of Association, or take other appropriate action.
All potential conflicts authorised by the Board are recorded in a
conflicts register, which is maintained by the Group Company
Secretary and reviewed by the Board annually. Directors have a
continuing duty to update the Board with any changes to their
conflicts of interest.
Change of control
The Company does not consider that it is a party to any significant
agreements that take effect, alter or terminate upon a change of
control of the Company following a takeover bid that are required to
be disclosed pursuant to paragraph 13(2)(j) of Schedule 7 of the Large
and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 (as amended), other than as disclosed below.
Under the Group’s Revolving Credit Facility Agreement, if a change of
control of the Company occurs, the lenders are not obliged to provide
further funding under the facility. The Company and lenders have up
to 30 days to agree the continued use of the facility. If there is no
agreement, repayment of the facility and accrued interest may be
requested by the lenders with not less than ten days’ notice.
The Company entered into an amended Shareholders’ Agreement
with Greencoat management shareholders on 10April 2022,
inrelation to their respective shareholdings in Greencoat Capital
Holdings Limited. On a change of control of the Company to a
personwho does not form part of the Principal Shareholder Group,
the management shareholders have the right to sell their shares to
Schroder International Holdings Limited, a subsidiary of the Company.
Directors’ and employees’ employment contracts do not normally
provide for compensation for loss of office or employment as a result
of a change of control. However, the provisions of the Company’s
employee share schemes may cause awards granted to employees
under such schemes to vest on a change of control.
Political donations
No political donations or contributions were made or expenditure
incurred by the Company or its subsidiaries during the year (2024: nil)
and there is no intention to make or incur any in the current year.
Disclosure required by UKLR 6.2.23
On 15 January 2026, the Group published a trading update stating that adjusted operating profit for the year ended 31 December 2025 was
expected to be at least £745 million. This constituted a profit estimate under UK Listing Rule 6.2.23. The Group’s actual adjusted operating
profit for the year was £756.6 million, which is ahead of this estimate however remains within 10% of the figure reported in the trading
update. Further details on financial performance can be found in the Business and Financial Review on page 16.
UK Listing Rules (UKLR) – compliance with UKLR 6.6.1
The majority of the disclosures required under UKLR 6.6.1 are not applicable to Schroders. The table below sets out the location of the
disclosures for those requirements that are applicable.
Applicable sub-paragraph within UKLR 6.6.1 Disclosure provided
(2) Any information required by UKLR 6.2.23R (Publication of unaudited financial information)
See page 93
(11) Details of any arrangements under which a shareholder has waived or agreed to waive any dividends.
See pages 91, 111 and 137
(12) Where a shareholder has agreed to waive future dividends, details of such waiver together with those
relating to dividends which are payable during the period under review.
See pages 91, 111 and 137
(13) A statement made by the board that the company continues to comply with the requirement in UKLR 6.2.3R.
See page 90
Strategic report Governance Financial statements Shareholder and sustainability information
Directors’ report continued
93 Schroders Annual Report and Accounts 2025
Treasury shares
At 31 December 2025, the Company’s issued share capital comprised 1,612,071,525 ordinary shares with a nominal value of 20 pence each.
Asat the latest practicable date (11 February 2025), the Company held 1,360,247 shares in treasury, representing 0.08% of the issued share
capital of the Company. Treasury shares do not receive dividends and are not included when calculating the total voting rights in the Company.
The shares are held in treasury with the intention of using them to satisfy awards under the Company’’s employee share schemes (or otherwise
being cancelled, reducing the Company’s issued share capital). During the year, the following transfers from treasury were made:
– On 13 March 2025, 5,023,417 treasury shares were transferred from treasury to the Employee Benefit Trust to satisfy awards under the
Company’s employee share schemes.
Streamlined Energy and Carbon Reporting (SECR)
Details of the Company’s approach to decarbonisation and disclosures on Scope 1 and Scope 2 emissions and associated energy
consumption are included as part of our climate-related disclosures on pages 185 to 201.
Our 2025 operational metrics provide details on our total operational greenhouse gas (GHG) emissions and energy data and are reported in
line with the SECR requirements. For more detail on our operational emissions, calculation methodology and associated targets please refer
to pages 198 and 201.
Our operational GHG emissions
1
GHG emissions (tCO
2
e) 2025 2024
2019
(base year)
Total Scope 1 emissions 687 483 1,110
Total Scope 2 emissions (location-based) 3,310 3,679 5,718
Total Scope 2 emissions (market-based) 405 380 3,255
Total Scope 1 and 2 emissions (location-based) 3,997 4,162 6,828
Of which UK Scope 1 and 2 (location-based) 2,306 2,366 4,621
Total Scope 1 and 2 emissions (market-based) 1,092 863 4,365
Of which UK Scope 1 and 2 (market-based) 711 494 2,408
Total Scope 3 operational emissions 128,311 161,948 115,048
Metrics
Scope 1 and 2 tCO
2
e per employee
2
0.65 0.65 1.27
Total global energy consumption (kWh) 17,344,655 17,710,047 26,265,797
Of which UK energy consumption 12,158,568 12,036,727 18,495,195
1. Incendium Consulting Ltd assured all of our operational emissions and progress towards targets. This assurance was provided in accordance with AA1000AS
v3 Type 2 moderate level assurance.
2. Average employees: the average number of employees for our reporting period is as follows: 2025: 6,110; 2024: 6,385; and 2019: 5,359.
Energy efficiency measures
We are committed to minimising the environmental impact of our operations and to delivering continuous improvement in our
environmental performance. We are doing this by decreasing energy demand and switching to low-carbon electricity sources. We have also
installed onsite renewables and removed sources of fossil fuels. Our office energy efficiency measures include equipment and lighting
upgrades, adjusting temperature set points and plant run times and transitioning IT servers to cloud-based infrastructure. For more
information on our actions see page 193.
Risk management objectives and policies
Details of the Group’s Risk Management framework are set out on page25. Specific information around risk management objectives, policies
(e.g. hedging) and exposure is contained in note 19 to the financial statements.
Subsequent events
Subsequent to the year end, the Board of Schroders plc reached a preliminary agreement with Pantheon LLC, a wholly-owned subsidiary of
Nuveen, LLC, on the financial terms of a possible offer to acquire the entire issued and to be issued ordinary share capital of Schroders plc, to
be implemented by way of a scheme of arrangement.
By order of the Board.
Kate Graham
Company Secretary
11February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
Directors’ report continued
94 Schroders Annual Report and Accounts 2025
Statement of
Directors’
responsibilities
The Directors are responsible for preparing the Annual Report
and the consolidated financial statements in accordance with
applicable law and regulations.
The Companies Act 2006, being the applicable law in the UK,
requires the Directors to prepare financial statements for each
financial year. The Directors have prepared the financial statements
in accordance with UK-adopted international accounting standards
and in conformity with the requirements of the Companies Act 2006.
Under the Companies Act 2006, the Directors must not approve the
financial statements unless they are satisfied that the statements
give a true and fair view of the state of affairs of the Company and
the Group, and of the profit or loss of the Group for that period.
In preparing those financial statements, the Directors are required to:
– select suitable accounting policies in accordance with IAS 8
Accounting Policies, Changes in Accounting Estimates and
Errors and then apply them consistently
– make estimates and judgements that are reasonable
andprudent
– present information, including accounting policies, in a
mannerthat provides relevant, reliable, comparable and
understandableinformation
– provide additional disclosure where compliance with the
specificrequirements of UK-adopted international accounting
standards is insufficient to enable users to understand the
impact of a particular transaction, other event or condition
onthe Company or Group’s financial position or
financialperformance
– state whether the financial statements comply with UK-adopted
international accounting standards, subject to any material
departure disclosed, and explained, in the financial statements
– prepare the financial statements on a going concern basis,
unless it is inappropriate to presume that the Company or
Group will continue in business, in which case there should be
supporting assumptions or qualifications as necessary.
The Directors are also required by the Disclosure and Transparency
Rules of the Financial Conduct Authority (FCA) to include a
management report containing a fair review of the business and
a description of the principal risks and uncertainties facing the
Company and the Group.
The Directors are responsible for keeping proper books of
accounting records that are sufficient to show and explain the
Company’s transactions, and disclose with reasonable accuracy
at any time the Company’s and the Group’s financial position,
and to enable them to ensure that the financial statements and the
Remuneration report comply with the Companies Act 2006. They are
also responsible for safeguarding the Company’s and the Group’s
assets, and for taking reasonable steps to prevent and detect fraud
and other irregularities.
Directors’ statement
Each of the Directors, whose name and functions are listed in the
“Board of Directors and Company Secretary” section of this Annual
Report and Accounts, confirms that, to the best of each person’s
knowledge and belief:
– The consolidated financial statements, prepared in accordance
with UK-adopted international accounting standards, give a true
and fair view of the assets, liabilities, financial position and profit
of the Company and the Group.
– The Directors’ report contained in this Annual Report and
Accounts, which comprises the sections described on page 90,
includes a fair review of the business’ development
andperformance and the Company’s and Group’s position,
anda description of the principal risks and uncertainties that
they face.
– So far as the Directors are aware, there is no relevant audit
information which the Company’s auditors are unaware of.
– The Directors have taken all the steps that ought to have been
taken as a Director to make himself or herself aware of any
relevant audit information, and to establish that the Company’s
auditors are aware of that information.
In addition, each of the Directors considers that this Annual Report
and Accounts, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess
the Company’s performance, business model and strategy.
The Directors are responsible for the maintenance and integrity of the
audited financial information on the website at www.schroders.com.
Legislation in the UK governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Forward-looking statements
This Annual Report and Accounts and the Schroders website may
contain forward-looking statements with respect to the financial
condition, performance and position, strategy, results of
operations and businesses of the Schroders Group. Such
statements and forecasts involve risk and uncertainty because
they are based on current expectations and assumptions but
relate to events and depend upon circumstances in the future; you
should not place reliance on them. Without limitation, any
statements preceded or followed by or that include the words
‘targets’, ‘plans’, ‘sees’, ‘believes’, ‘expects’, ‘aims’, ‘confident’, ‘will
have’, ‘will be’, ‘will ensure’, ‘likely’, ‘estimates’, ‘foresee’ or
‘anticipates’ or the negative of these terms or other similar terms
are intended to identify such forward-looking statements. There
are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied
by forward-looking statements and forecasts. Forward-looking
statements and forecasts are based on the Directors’ current view
and information known to them at the date of this statement. The
Directors do not make any undertaking to update or revise any
forward-looking statements, whether as a result of new
information, future events or otherwise. Nothing in this
announcement or in the Annual Report and Accounts or on the
Schroders website should be construed as a forecast, estimate or
projection of future financial performance.
Strategic report Governance Financial statements Shareholder and sustainability information
Statement of Directors’ responsibilities
95 Schroders Annual Report and Accounts 2025
FINANCIAL
STATEMENTS
Financial statements
Consolidated financial statements 97
Schroders plc financial statements 152
Independent auditor’s report 175
Strategic report Governance Financial statements Shareholder and sustainability information
96 Schroders Annual Report and Accounts 2025
Consolidated financial statements
Consolidated income statement
98
Consolidated statement of comprehensive income
99
Consolidated statement of financial position
100
Consolidated statement of changes in equity
101
Consolidated cash flow statement
102
Notes to the accounts
1.
Segmental reporting
103
2.
Net operating revenue
105
3.
Total expenses
108
4.
Tax expense
109
5.
Earnings per share
111
6.
Dividends
111
7.
Trade and other receivables
112
8.
Financial assets and liabilities
113
9.
Issued debt
117
10.
Associates and joint ventures
117
11.
Property, plant and equipment
120
12.
Leases
120
13.
Goodwill and intangible assets
121
14.
Deferred tax
123
15.
Unit-linked liabilities and assets backing unit-linked liabilities
124
16.
Trade and other payables
126
17.
Provisions and contingent liabilities
127
18.
Derivative contracts
128
19.
Financial instrument risk management
130
20.
Share capital and share premium
137
21.
Own shares
137
22.
Reconciliation of net cash from operating activities
138
23.
Retirement benefit obligations
139
24.
Share-based payments
144
25.
Related party transactions
147
26.
Interests in structured entities
148
Presentation of the financial statements
150
Schroders plc financial statements
Schroders plc – Statement of financial position
152
Schroders plc – Statement of changes in equity
153
Schroders plc – Cash flow statement
154
Schroders plc – Notes to the accounts
27.
Significant accounting policies
155
28.
Expenses and other disclosures
155
29.
Trade and other receivables
155
30.
Trade and other payables
155
31.
Deferred tax
156
32.
Financial instrument risk management
156
33.
Own shares
157
34.
Related party transactions
157
35.
Subsidiaries and other related undertakings
158
36.
Subsequent Events
174
Independent auditor’s report
175
Strategic report Governance Financial statements Shareholder and sustainability information
97 Schroders Annual Report and Accounts 2025
Consolidated income statement
for the year ended 31December 2025
2025
2024
1
Notes
£m
£m
Revenue
3,250.7
3,067.0
Cost of sales
(746.4)
(697.0)
Net operating revenue
2
2,504.3
2,370.0
Share of profit of associates and joint ventures
10(a)
51.2
42.1
Gain on disposal of joint venture
10(a)
113.3
–
Net gain on financial instruments and other income
31.7
18.3
Net operating income
2,700.5
2,430.4
Operating expenses
3
(2,026.6)
(1,901.6)
Operating profit
673.9
528.8
Other net (loss)/gain on financial instruments and other income
(21.8)
2.8
Interest income
45.1
44.2
Interest expense
(23.4)
(17.7)
Profit before tax
673.8
558.1
Tax
4(a)
(123.4)
(125.1)
Profit after tax
550.4
433.0
Attributable to:
Equity holders of Schroders plc
539.8
417.0
Non-controlling interest holders
10.6
16.0
Profit after tax
550.4
433.0
Earnings per share
Basic
5
34.1p
26.4p
Diluted
5
33.6p
26.0p
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements
98 Schroders Annual Report and Accounts 2025
Consolidated statement of comprehensive income
for the year ended 31December 2025
2025
2024
Notes
£m
£m
Profit after tax
550.4
433.0
Items that may be reclassified to the income statement:
Net exchange differences on translation of foreign operations after hedging
(3.2)
(56.1)
Net (loss)/gain on financial assets at fair value through other comprehensive income
(0.4)
0.4
Net loss on financial assets at fair value through other comprehensive income held by associates
10(a)
(0.5)
–
(4.1)
(55.7)
Items that have been reclassified to the income statement
0.4
0.6
Items that will not be reclassified to the income statement:
Net actuarial loss on defined benefit pension schemes
23
(0.7)
(7.4)
Tax on items taken directly to other comprehensive income
4(b)
0.2
1.9
(0.5)
(5.5)
Other comprehensive income for the year, net of tax
(4.2)
(60.6)
Total comprehensive income for the year
546.2
372.4
Attributable to:
Equity holders of Schroders plc
535.6
356.4
Non-controlling interest holders
10.6
16.0
Total comprehensive income for the year
546.2
372.4
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
99 Schroders Annual Report and Accounts 2025
Consolidated statement of financial position
at 31December 2025
2025
2024
Notes
£m
£m
Assets
Cash and cash equivalents
4,576.6
4,066.4
Trade and other receivables
7
1,113.3
1,026.4
Financial assets
8
3,409.9
3,227.9
Associates and joint ventures
10
376.1
550.0
Property, plant and equipment
11, 12
443.5
488.6
Goodwill and intangible assets
13
1,715.8
1,840.5
Deferred tax
14
123.4
160.4
Retirement benefit scheme surplus
23
126.1
131.0
11,884.7
11,491.2
Assets backing unit-linked liabilities
Cash and cash equivalents
103.8
148.3
Financial assets
12,624.2
9,310.4
15
12,728.0
9,458.7
Total assets
24,612.7
20,949.9
Liabilities
Trade and other payables
16
1,109.1
1,063.0
Financial liabilities
8
5,515.7
5,113.6
Current tax
35.2
29.0
Issued debt
9
256.1
256.0
Lease liabilities
12
317.5
345.7
Provisions
17
83.0
60.3
Deferred tax
14
104.3
120.3
Retirement benefit scheme deficits
7.4
7.9
7,428.3
6,995.8
Unit-linked liabilities
15
12,728.0
9,458.7
Total liabilities
20,156.3
16,454.5
Net assets
4,456.4
4,495.4
Equity attributable to equity holders of Schroders plc
4,456.0
4,410.3
Non-controlling interest
0.4
85.1
Total equity
4,456.4
4,495.4
The financial statements were approved by the Board of Directors on 11 February 2026 and signed on its behalf by:
Meagen Burnett
Director
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
100 Schroders Annual Report and Accounts 2025
Consolidated statement of changes in equity
for the year ended 31December 2025
Attributable to equity holders of Schroders plc
Net Associates
exchange and joint Non-
Share Share Own differences ventures Profit and controlling Total
capital premiumsharesreservereserve
loss reserve
Total
interestequity
Notes
£m
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January 2025
322.4
84.3
(159.9)
178.8
233.8
3,750.9
4,410.3
85.1
4,495.4
Profit for the year
–
–
–
–
51.2
488 .6
539 .8
10.6
550 .4
Other comprehensive income
1
–
–
–
(2.6)
(0.5)
(1.1)
(4.2)
–
(4.2)
Total comprehensive income
for the year
–
–
–
(2.6)
50.7
487.5
535.6
10.6
546.2
Own shares purchased
21
–
–
(11.5)
–
–
–
(11.5)
–
(11.5)
Share-based payments
24
–
–
–
–
–
31.3
31.3
–
31.3
Tax in respect of share schemes
4(c)
–
–
–
–
–
2.3
2.3
–
2.3
Other movements
2
–
–
–
–
–
(176.2)
(176.2)
(93.5)
(269.7)
Dividends
6
–
–
–
–
–
(335.8)
(335.8)
(1.8)
(337.6)
Transactions with shareholders
–
–
(11.5)
–
–
(478.4)
(489.9)
(95.3)
(585.2)
Transfers
–
–
72.9
–
(7.6)
(65.3)
–
–
–
At 31 December 2025
322.4
84.3
(98.5)
176.2
276.9
3,694.7
4,456.0
0.4
4,456.4
Attributable to equity holders of Schroders plc
Net Associates
exchange and joint Non-
Share Share Own differences ventures Profit and controlling Total
capitalpremiumsharesreservereserve
loss reserve
Total
interestequity
Notes
£m
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January 2024
322.4
84.3
(172.1)
234.9
215.2
3,705.9
4,390.6
73.1
4,463.7
Profit for the year
–
–
–
–
42.1
374.9
417.0
16.0
433.0
Other comprehensive income
1
–
–
–
(56.1)
–
(4.5)
(60.6)
–
(60.6)
Total comprehensive income
for the year
–
–
–
(56.1)
42.1
370.4
356.4
16.0
372.4
Own shares purchased
21
–
–
(59.8)
–
–
–
(59.8)
–
(59.8)
Share-based payments
24
–
–
–
–
–
30.4
30.4
–
30.4
Tax in respect of share schemes
4(c)
–
–
–
–
–
0.7
0.7
–
0.7
Other movements
2
–
–
–
–
–
26.2
26.2
2.9
29.1
Dividends
6
–
–
–
–
–
(334.2)
(334.2)
(6.9)
(341.1)
Transactions with shareholders
–
–
(59.8)
–
–
(276.9)
(336.7)
(4.0)
(340.7)
Transfers
–
–
72.0
–
(23.5)
(48.5)
–
–
–
At 31 December 2024
322.4
84.3
(159.9)
178.8
233.8
3,750.9
4,410.3
85.1
4,495.4
1. Other comprehensive income reported in the net exchange differences reserve comprises the net foreign exchange loss on the translation of
foreign operations net of hedging and any recycling on realisations. Other comprehensive income reported in the associates and joint ventures reserve
comprises post-tax fair value movements on financial assets at fair value through other comprehensive income, net of items that have been reclassified to the
income statement. Other comprehensive income reported in the profit and loss reserve comprises the post-tax actuarial loss on the Group’s retirement
benefit schemes and post-tax fair value movements on financial assets at fair value through other comprehensive income, net of items that have
been reclassified to the income statement.
2. Other movements in the profit and loss reserve principally relate to the purchase of non-controlling interests (see Basis of consolidation on page
150) and financial liabilities in respect of options to purchase the remaining non-controlling interest in certain subsidiaries (see note 8).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
101 Schroders Annual Report and Accounts 2025
Consolidated cash flow statement
for the year ended 31 December 2025
2025
2024
Notes
£m
£m
Net cash from operating activities
1
22
914.4
1,048.2
Cash flows from investing activities
Net acquisition of businesses, associates and joint ventures
(26.2)
(49.6)
Net acquisition of property, plant and equipment and software
(19.1)
(70.5)
Acquisition of financial assets
(4,392.3)
(3,703.9)
Disposal of financial assets
4,369.1
3,077.2
Non-banking interest received
48.5
39.8
Distributions received from associates and joint ventures
8.3
12.2
Net cash used in investing activities
(11.7)
(694.8)
Cash flows from financing activities
Issuance of loan notes
–
248.8
Purchase of subsidiary shares from non-controlling interest holders
(35.0)
(9.9)
Lease payments
12
(46.8)
(46.0)
Acquisition of own shares
21
(11.5)
(59.8)
Dividends paid
6
(337.6)
(341.1)
Interest on issued debt
(15.9)
(4.0)
Other
(1.2)
(1.0)
Net cash used in financing activities
(448.0)
(213.0)
Net increase in cash and cash equivalents
454.7
140.4
Opening cash and cash equivalents
4,214.7
4,103.0
Net increase in cash and cash equivalents
454.7
140.4
Effect of exchange rate changes
11.0
(28.7)
Closing cash and cash equivalents
4,680.4
4,214.7
Closing cash and cash equivalents consists of:
Cash and cash equivalents available for use by the Group
4,549.7
4,054.0
Cash held in consolidated pooled investment vehicles
26.9
12.4
Cash and cash equivalents presented within assets
4,576.6
4,066.4
Cash and cash equivalents presented within assets backing unit-linked liabilities
15
103.8
148.3
Closing cash and cash equivalents
4,680.4
4,214.7
1. Includes Wealth Management interest income received of £221.1 million (2024: £227.6 million) and interest paid of £178.6 million (2024: £182.6 million).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
102 Schroders Annual Report and Accounts 2025
Notes to the accounts
1 Segmental reporting
(a) Adjusted operating profit by segment
The Group has two operating segments: Asset Management and Wealth Management. The Asset Management segment principally
comprises investment management including advisory services in respect of equity, fixed income, multi-asset solutions and private
assets and alternatives products. The Wealth Management segment principally comprises investment management, wealth planning
and financial advice, platform services and banking services. The Group segment represents the Group head office costs including
relevant allocations for support services.
Operating expenses include an allocation of costs between the individual business segments on a basis that aligns the charge with the
resources employed by the Group in respect of particular business functions. This allocation provides management with the relevant
information as to the business performance to effectively manage and control expenditure.
Segmental information is presented on the same basis as that provided for internal reporting purposes to the Group’s chief operating
decision-maker, the Group Chief Executive. This reporting is based on adjusted measures which are used by management to assess th e
operational performance of the business. Adjusted measures exclude significant items of income and expenditure that have been
separately presented by virtue of their nature to enable a better understanding of the Group’s financial performance. These include
acquisition costs and related items, transformation costs, and portfolio restructuring items.
Acquisition costs and related items include deal costs associated with corporate transactions, costs associated with the integration of
acquired businesses and amortisation of acquired intangibles. Transformation costs have been incurred in reorganising parts of the
Group to drive cost efficiencies and allow reinvestment in building the skills needed to support the future growth of the business.
They principally comprise redundancy costs and project expenditure. Portfolio restructuring principally comprises non-recurring
charges resulting from the discontinuation and sale of business operations, valuation adjustments on intangible assets and gains or
losses on disposals.
A reconciliation of adjusted operating profit to operating profit is included in note 1(b).
Operating segments
Asset Wealth
Management
Management
Group segment
Total
Year ended 31 December 2025
£m
£m
£m
£m
Revenue
2,420.6
830.1
–
3,250.7
Cost of sales
(454.0)
(292.4)
–
(746.4)
Net operating revenue
1,966.6
537.7
–
2,504.3
Adjusted share of profit of associates and joint ventures
30.3
19.0
–
49.3
Adjusted net gain on financial instruments and other income
33.5
2.7
–
36.2
Adjusted net operating income
2,030.4
559.4
–
2,589.8
Adjusted operating expenses
(1,434.7)
(361.1)
(37.4)
(1,833.2)
Adjusted operating profit
595.7
198.3
(37.4)
756.6
Operating segments
Asset Wealth
Management
Management
Group segment
Total
Year ended 31 December 2024
1
£m
£m
£m
£m
Revenue
2,295.1
771.9
–
3,067.0
Cost of sales
(416.1)
(280.9)
–
(697.0)
Net operating revenue
1,879.0
491.0
–
2,370.0
Adjusted share of profit of associates and joint ventures
37.1
10.6
–
47.7
Adjusted net gain on financial instruments and other income
18.6
0.8
–
19.4
Adjusted net operating income
1,934.7
502.4
–
2,437.1
Adjusted operating expenses
(1,469.7)
(325.6)
(38.7)
(1,834.0)
Adjusted operating profit
465.0
176.8
(38.7)
603.1
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
Segment assets and liabilities are not presented as such information is not presented on a regular basis to the Group’s chief operating
decision-maker .
Consolidated financial statements continued
103 Schroders Annual Report and Accounts 2025
1 Segmental reporting continued
(b) Reconciliation from adjusted operating profit to operating profit
Acquisition costs Transformation Portfolio
Adjusted and related items costs
restructuring
Total
Year ended 31 December 2025
£m
£m
£m
£m
£m
Revenue
3,250.7
–
–
–
3,250.7
Cost of sales
(746.4)
–
–
–
(746.4)
Net operating revenue
2,504.3
–
–
–
2,504.3
Share of profit of associates and joint ventures
49.3
(3.8)
–
5.7
51.2
Gain on disposal of joint venture
–
–
–
113.3
113.3
Net gain on financial instruments and other income
36.2
0.1
–
(4.6)
31.7
Net operating income
2,589.8
(3.7)
–
114.4
2,700.5
Operating expenses
(1,833.2)
(60.4)
(79.4)
(53.6)
(2,026.6)
Operating profit
756.6
(64.1)
(79.4)
60.8
673.9
Adjusted
Acquisition costs
and related items Total
Year ended 31 December 2024
1
£m £m £m
Revenue
3,067.0
–
3,067.0
Cost of sales
(697.0)
–
(697.0)
Net operating revenue
2,370.0
–
2,370.0
Share of profit of associates and joint ventures
47.7
(5.6)
42.1
Net gain on financial instruments and other income
19.4
(1.1)
18.3
Net operating income
2,437.1
(6.7)
2,430.4
Operating expenses
(1,834.0)
(67.6)
(1,901.6)
Operating profit
603.1
(74.3)
528.8
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
(c) Geographical information
The Group’s non-current assets
1
are located in the following countries:
2025
2024
£m
£m
United Kingdom
1,602.5
2,005.7
Switzerland
327.6
242.7
China
291.8
286.9
India
75.2
69.3
United States
67.8
86.1
France
66.5
66.6
Hong Kong
26.5
32.1
Other
79.7
92.8
Total
2,537.6
2,882.2
1. Comprises the following non-current assets: property, plant and equipment, goodwill and intangible assets, associates and joint ventures and prepayments.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
104 Schroders Annual Report and Accounts 2025
2 Net operating revenue
Revenue
The Group’s primary source of revenue is fee income from investment management activities performed within both the Asset
Management and Wealth Management segments. Fee income includes management fees, performance fees, carried interest
and other fees. Revenue also includes interest income earned within the Wealth Management segment.
Management fees are generated through investment management agreements and are generally based on an agreed percentage
of the valuation of AUM. Management fees are recognised as the service is provided.
Performance fees and carried interest are earned from certain arrangements when contractually agreed performance levels are
exceeded within specified performance measurement periods. They are only recognised where it is highly probable that a significant
reversal will not occur in future periods. Performance fees are typically earned over one year and are recognised at the end of the
performance period. Carried interest is earned over a longer time frame and is recognised over the period for which the service is
provided and when certain performance hurdles are expected to be met. This may result in the recognition of revenue before the
contractual crystallisation date.
Other fees principally comprise revenues for other services, which typically vary according to the volume of transactions. Other fees
are recognised as the relevant service is provided.
Within Wealth Management, earning a net interest margin is a core activity and interest income is therefore recognised within revenue.
Interest income is earned as a result of placing loans and deposits with central banks and other financial institutions, advancing loans
and overdrafts to clients, and holding debt securities. Interest income is recognised as it is earned using the effective interest method,
which allocates interest at a constant rate of return over the expected life of the financial instrument based on the estimated future
cash flows.
Cost of sales
Fee expenses incurred by the Group that relate directly to revenue are presented as cost of sales. These expenses include commissions,
external fund manager fees and distribution fees payable to financial institutions, investment platform providers and financial advisers
that distribute the Group’s products.
Fee expense is generally based on an agreed percentage of the valuation of AUM and is recognised as the service is received.
Cost of sales also includes the cost of financial obligations arising from carried interest. Amounts payable in respect of carried interest
are determined based on the proportion of carried interest income that is payable to third parties.
Within Wealth Management, earning a net interest margin is a core activity and the associated interest expense is therefore recognised
within cost of sales. Interest expense is payable as a result of taking deposits from clients. Interest expense is recognised using the
effective interest method (see above).
(a) Net operating revenue by segment
Asset Wealth
Management
Management
Total
Year ended 31 December 2025
£m
£m
£m
Management fees
2,307.9
437.9
2,745.8
Performance fees
51.3
0.3
51.6
Carried interest
36.5
–
36.5
Other fees
24.9
153.8
178.7
Wealth Management interest income
–
238.1
238.1
Revenue
2,420.6
830.1
3,250.7
Fee expense
(445.3)
(113.5)
(558.8)
Cost of financial obligations in respect of carried interest
(8.7)
–
(8.7)
Wealth Management interest expense
–
(178.9)
(178.9)
Cost of sales
(454.0)
(292.4)
(746.4)
Net operating revenue
1,966.6
537.7
2,504.3
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
105 Schroders Annual Report and Accounts 2025
2 Net operating revenue continued
(a) Net operating revenue by segment continued
Asset Wealth
Management
Management
Total
Year ended 31 December 2024
1
£m
£m
£m
Management fees
2,208.7
391.0
2,599.7
Performance fees
33.2
0.5
33.7
Carried interest
35.2
–
35.2
Other fees
18.0
135.8
153.8
Wealth Management interest income
–
244.6
244.6
Revenue
2,295.1
771.9
3,067.0
Fee expense
(410.6)
(98.6)
(509.2)
Cost of financial obligations in respect of carried interest
(5.5)
–
(5.5)
Wealth Management interest expense
–
(182.3)
(182.3)
Cost of sales
(416.1)
(280.9)
(697.0)
Net operating revenue
1,879.0
491.0
2,370.0
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
(b) Net operating revenue by region based on the location of clients
Continental
Europe &
UK
Middle East
Asia Pacific
Americas
Total
Year ended 31 December 2025
£m
£m
£m
£m
£m
Management fees
974.9
870.2
557.4
343.3
2,745.8
Performance fees
8.0
9.3
30.2
4.1
51.6
Carried interest
–
36.5
–
–
36.5
Other fees
152.1
13.8
12.8
–
178.7
Wealth Management interest income
227.1
8.4
2.6
–
238.1
Revenue
1,362.1
938.2
603.0
347.4
3,250.7
Fee expense
(155.9)
(216.8)
(149.2)
(36.9)
(558.8)
Cost of financial obligations in respect of carried interest
–
(8.7)
–
–
(8.7)
Wealth Management interest expense
(177.7)
(0.2)
(1.0)
–
(178.9)
Cost of sales
(333.6)
(225.7)
(150.2)
(36.9)
(746.4)
Net operating revenue
1,028.5
712.5
452.8
310.5
2,504.3
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
106 Schroders Annual Report and Accounts 2025
2 Net operating revenue continued
(b) Net operating revenue by region based on the location of clients continued
Continental
Europe &
UK
Middle East
Asia Pacific
Americas
Total
Year ended 31 December 2024
1
£m
£m
£m
£m
£m
Management fees
918.8
795.0
541.7
344.2
2,599.7
Performance fees
8.4
8.9
9.9
6.5
33.7
Carried interest
–
35.2
–
–
35.2
Other fees
133.4
14.1
6.3
–
153.8
Wealth Management interest income
227.6
14.1
2.9
–
244.6
Revenue
1,288.2
867.3
560.8
350.7
3,067.0
Fee expense
(136.9)
(196.9)
(139.6)
(35.8)
(509.2)
Cost of financial obligations in respect of carried interest
–
(5.5)
–
–
(5.5)
Wealth Management interest expense
(180.8)
(0.6)
(0.9)
–
(182.3)
Cost of sales
(317.7)
(203.0)
(140.5)
(35.8)
(697.0)
Net operating revenue
970.5
664.3
420.3
314.9
2,370.0
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
Estimates and judgements – revenue
The principal estimates and judgements for revenue relate to carried interest. Carried interest represents the Group’s contractual right
to a share of the profits of 150 private asset investment vehicles (2024: 141 vehicles), if certain performance hurdles are met. It is
recognised as the services are provided and it is highly probable that a significant reversal will not occur.
The amount of carried interest that will ultimately be received by the Group is dependent on the cash flows realised by the respective
investment vehicles when the underlying investments are successfully disposed of. The resultant cash flows are assessed against the
applicable performance hurdle, which is dependent on the capital invested and the timing and quantum of distributions. For accounting
purposes, the outcome is discounted to determine the present value of the carried interest to be recognised. The actual amount
receivable at maturity will depend on the realised value and may differ from the projected value.
The Group estimates the cash flows that will be received by the investment vehicles with reference to the current fair value of the
underlying investments. Judgement is applied to determine certain assumptions used in the estimate. Those assumptions principally
relate to the future growth and the timing of distributions. No future growth is assumed, reflecting the uncertainty of future investment
returns. The timing of distributions to clients is based on individual investment managers’ expectations as to the realisation of cash flows
from the successful disposal of the underlying securities.
The Group assesses the nature and maturity of the respective investment vehicles. This helps the Group to understand whether a
significant risk of reversal exists and to determine whether the revenue should be recognised or further constrained in accordance with
the accounting standards.
Estimates and judgements – cost of sales
The principal estimates and judgements for cost of sales relate to carried interest. The crystallisation of associated financial obligations
in respect of carried interest (carried interest payable, see note 8) is contingent on the Group receiving the related revenue. The areas
of estimation and judgements are the same as those used to determine the present value of the carried interest receivable, adjusted
to reflect the portion that is payable to third parties. The actual amount payable at maturity will depend on the realised value of the
carried interest receivable and may differ from the projected value. An increase in the growth rate of 3% would increase cost of sales by
£4.8 million (2024: £3.4 million), although this would be smaller than the corresponding increase in revenue. An average acceleration/
delay in crystallisation dates of one year would increase/reduce cost of sales by £7.0 million/£6.3 million (2024: £5.0 million/£5.0 million)
and this amount would be lower than the corresponding increase/reduction in revenue.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
107 Schroders Annual Report and Accounts 2025
3 Total expenses
Total expenses represent the Group’s administrative expenses including compensation costs. They are generally recognised as the
services are received. Certain costs, such as depreciation of property, plant and equipment and amortisation of intangible assets,
are expensed evenly over the useful life of the asset or relevant contract.
The biggest component of the Group’s total expenses is the cost of employee benefits, as shown below. Other costs primarily consist
of accommodation, information technology, marketing and outsourcing costs.
Employee benefits expense includes salaries and wages, together with the cost of other benefits provided to employees such as pension
and bonuses. The Group makes some performance awards to employees that are deferred over a specified vesting period. Such awards
are expensed to the income statement over the performance and vesting periods. The Group holds investments that are linked to these
performance awards in order to hedge the related exposure. Gains and losses on these investments are netted against the relevant
costs in the income statement but are presented separately below.
Further detail on other employee benefits can be found elsewhere within these financial statements. See note 23 for pension costs
and note 24 for compensation that is awarded in Schroders plc shares.
(a) Reconciliation from adjusted operating expenses to operating expenses
Adjusted operating expenses represent the operating expenses incurred in running the business, excluding any acquisition costs and related
items, transformation costs and portfolio restructuring items (see note 1(a)).
Acquisition costs Transformation Portfolio
Adjusted and related items costs
restructuring
Total
Year ended 31 December 2025
£m
£m
£m
£m
£m
Compensation costs
1,138.5
2.4
51.5
4.4
1,196.8
Depreciation, amortisation and impairment
125.1
56.9
2.4
43.5
227.9
Other
569.6
1.1
25.5
5.7
601.9
Operating expenses
1,833.2
60.4
79.4
53.6
2,026.6
Acquisition costs
Adjusted
and related items
Total
Year ended 31 December 2024
1
£m
£m
£m
Compensation costs
1,154.9
10.6
1,165.5
Depreciation, amortisation and impairment
135.6
55.5
191.1
Other
543.5
1.5
545.0
Operating expenses
1,834.0
67.6
1,901.6
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
(b) Employee benefits expense and number of employees
2025
2024
1
Year ended 31 December
£m
£m
Salaries, wages and other remuneration
1,054.3
1,011.9
Social security costs
112.5
98.2
Pension costs
73.7
80.0
Employee benefits expense
1,240.5
1,190.1
Net gain on financial instruments held to hedge deferred cash awards
(43.7)
(24.6)
Employee benefits expense – net of hedging
1,196.8
1,165.5
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
Information about the compensation of key management personnel can be found in note 25. Details of the amounts payable to Directors along
with the number of Directors who exercised share options in the year is provided in the Remuneration report on pages 61 to 89.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
108 Schroders Annual Report and Accounts 2025
3 Total expenses continued
(b) Employee benefits expense and number of employees continued
The monthly average number of employees of the Company and its subsidiary undertakings during the year was:
2025
2024
1
Number
Number
Full-time employees
5,884
6,208
Contract and temporary employees
226
177
6,110
6,385
Employed as follows:
Asset Management
4,801
5,054
Wealth Management
1,288
1,310
Group segment
21
21
6,110
6,385
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
(c) Audit and other services
2025
2024
1
Year ended 31 December
£m
£m
Fees payable to the auditor for the audit of the Company and Consolidated financial statements
0.9
0.8
Fees payable to the auditor and its associates for other services:
Audit of the Company’s subsidiaries
5.5
5.3
Audit-related assurance services
1.4
1.4
Other assurance services
0.8
0.8
8.6
8.3
1. An additional £0.4 million was payable in relation to the 2024 audit, bringing the total fees to £8.7 million.
4 Tax expense
The Group is headquartered in the UK and pays taxes according to the rates applicable in the countries and states in which it operates.
Most taxes are recorded in the income statement (see part (a)) and relate to taxes payable for the reporting period (current tax).
The charge also includes benefits and charges relating to when income or expenses are recognised in a different period for tax and
accounting purposes or when there are specific treatments applicable relating to items such as acquisitions (deferred tax – see note 14).
Some current and deferred taxes are recorded through other comprehensive income (see part (b)) or directly to equity where the tax
arises from changes in the value of remuneration settled as shares (see part (c)).
(a) Analysis of tax charge reported in the income statement
2025
2024
Year ended 31 December
£m
£m
UK current year charge
28.0
27.0
Rest of the world current year charge
69.1
72.3
Global minimum top-up tax
2.1
2.7
Prior year adjustments
3.2
(7.8)
Total current tax
102.4
94.2
Origination and reversal of temporary differences
21.7
33.0
Prior year adjustments
–
(2.7)
Effect of changes in corporation tax rates
(0.7)
0.6
Total deferred tax
21.0
30.9
Tax charge reported in the income statement
123.4
125.1
On 1 January 2024, the Group became subject to the global minimum top-up tax under Pillar Two legislation and any additional tax was levied
on the ultimate parent. The top-up tax relates to the Group's operations in Dubai, Singapore, Guernsey and Jersey. From 1 January 2025, any
additional tax is levied on companies within those jurisdictions.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
109 Schroders Annual Report and Accounts 2025
4 Tax expense continued
(b) Analysis of tax credit reported in other comprehensive income
2025
2024
Year ended 31 December
£m
£m
Deferred tax credit on actuarial gains and losses on defined benefit pension schemes
(0.2)
(1.9)
Tax credit reported in other comprehensive income
(0.2)
(1.9)
(c) Analysis of tax credit reported in equity
2025
2024
Year ended 31 December
£m
£m
Current tax credit on Deferred Award Plan and other share-based remuneration
(0.5)
(0.8)
Deferred tax (credit)/charge on Deferred Award Plan and other share-based remuneration
(1.8)
0.1
Tax credit reported in equity
(2.3)
(0.7)
(d) Factors affecting tax charge for the year
The UK rate of corporation tax applicable for 2025 is a standard rate of 25% (2024: 25%). The tax charge for the year is lower (2024: lower)
than a charge based on the UK rate. The differences are explained below:
2025
2024
Year ended 31 December
£m
£m
Profit before tax
673.8
558.1
Less share of profit of associates and joint ventures after amortisation
(51.2)
(42.1)
Profit before tax of Group entities
622.6
516.0
Profit before tax of consolidated Group entities multiplied by corporation tax at the UK rate
155.7
129.0
Effects of:
Different statutory tax rates of overseas jurisdictions
(15.0)
(15.2)
Global minimum top-up tax
2.1
2.7
Permanent differences including non-taxable income and non-deductible expenses
(30.1)
16.7
Net movement in temporary differences for which no deferred tax is recognised
8.2
1.8
Deferred tax adjustments in respect of changes in corporation tax rates
(0.7)
0.6
Prior year adjustments
3.2
(10.5)
Tax charge reported in the income statement
123.4
125.1
Estimates and judgements
The calculation of the Group’s tax charge involves a degree of estimation and judgement. Liabilities relating to open and judgemental
matters, including those in relation to deferred taxes, are based on the Group’s assessment of the most likely outcome based on the
information available. As a result, certain tax amounts are based on estimates using factors that are relevant to the specific judgement.
The Group engages constructively and transparently with tax authorities with a view to early resolution of any uncertain tax matters.
Where the final tax outcome of these matters is different from the amounts provided, such differences will impact the tax charge in a
future period. Such estimates are based on assumptions made on the probability of potential challenge within certain jurisdictions and
the possible outcome based on relevant facts and circumstances, including local tax laws. There was no individual judgemental
component of the tax expense that was material to the Group results when taking into account the likely range of potential outcomes
(2024: none).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
110 Schroders Annual Report and Accounts 2025
5 Earnings per share
Earnings per share shows the portion of the Group’s profit after tax that is attributable to each share issued by the Company, excluding
own shares held by the Group. The calculation is based on the weighted average number of shares in issue during the year. The diluted
figure recalculates that number as if all share options that would be expected to be exercised, as they have value to the option holder,
had been exercised in the year. Shares that may be issued are not taken into account if the impact does not reduce earnings per share.
Adjusted earnings per share is calculated on adjusted operating profit after tax attributable to ordinary equity holders.
2025
2024
1
Year ended 31 December
£m
£m
Adjusted operating profit before tax
756.6
603.1
Tax on adjusted operating profit
(158.9)
(133.6)
Adjusted operating profit after tax
597.7
469.5
Less adjusted operating profit after tax attributable to non-controlling interest holders
(17.8)
(20.5)
Adjusted operating profit after tax attributable to equity holders of Schroders plc
579.9
449.0
Reconciliation of the number of shares used in calculating basic and diluted earnings per share:
2025
2024
Number
Number
Year ended 31 December
Millions
Millions
Weighted average number of shares used in the calculation of basic earnings per share
1,585.3
1,578.6
Effect of dilutive potential shares – share options
19.2
26.1
Effect of dilutive potential shares – contingently issuable shares
1.1
0.4
Weighted average number of shares used in the calculation of diluted earnings per share
1,605.6
1,605.1
Earnings per share figures:
2025
2024
Year ended 31 December
Pence
Pence
Earnings per share – basic
34.1
26.4
Earnings per share – diluted
33.6
26.0
Adjusted operating earnings per share – basic
1
36.6
28.4
Adjusted operating earnings per share – diluted
1
36.1
28.0
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
6 Dividends
Dividends are distributions of profit to holders of the Group’s share capital, usually announced with the Group’s half-year and annual
results. Dividends are recognised only when they are paid to or approved by shareholders. The reduction in equity in the year therefore
comprises the prior year final dividend and the current year interim dividend.
2026
2025
2024
Pence per Pence per Pence per
£m share £m share £m share
Prior year final dividend paid
234.2
15.0
233.0
15.0
Interim dividend paid
101.6
6.5
101.2
6.5
Total dividends paid
335.8
21.5
334.2
21.5
Current year final dividend
recommended
234.9
15.0
Dividends of £10.5 million (2024: £12.4 million) on shares held by employee benefit trusts have been waived. The Board has recommended a
2025 final dividend of 15.0 pence per share (2024: 15.0 pence), amounting to £234.9 million (2024: £234.2 million). The dividend will be paid
on 23 April 2026 to shareholders on the register at 13 March 2026 and will be accounted for in 2026.
The Group paid £1.8 million of dividends to holders of non-controlling interests in subsidiaries of the Group during 2025 (2024: £6.9 million),
resulting in total dividends paid of £337.6 million (2024: £341.1 million).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
111 Schroders Annual Report and Accounts 2025
7 Trade and other receivables
Trade and other receivables include prepayments and deposits with banks in the form of bullion as well as amounts the Group is due
to receive from third parties in the normal course of business. Trade and other receivables, other than deposits with banks in the form
of bullion, are recorded initially at fair value and subsequently at amortised cost (see note 8). Prepayments arise where the Group pays
cash in advance for services. As the service is provided, the prepayment is reduced and the operating expense is recognised in the
income statement. Accrued income, other than amounts relating to carried interest, represents unbilled revenue and is not dependent
on future performance. Amounts due from third parties also include settlement accounts for transactions undertaken on behalf of
funds and investors. Deposits with banks in the form of bullion are recorded at fair value.
2025
2024
Non-current
Current
Total
Non-current
Current
Total
£m
£m
£m
£m
£m
£m
Trade and other receivables held at amortised cost:
Fee debtors
–
74.1
74.1
–
102.6
102.6
Settlement accounts
–
167.8
167.8
–
156.2
156.2
Accrued income
154.4
492.6
647.0
128.3
427.9
556.2
Prepayments
2.2
66.6
68.8
3.1
60.7
63.8
Other receivables
1
50.4
71.9
122.3
37.6
60.0
97.6
Current tax
–
30.0
30.0
–
47.5
47.5
207.0
903.0
1,110.0
169.0
854.9
1,023.9
Trade and other receivables held at fair value:
Deposits with banks in the form of bullion
–
3.3
3.3
–
2.5
2.5
Total trade and other receivables
207.0
906.3
1,113.3
169.0
857.4
1,026.4
1. Includes £35.1 million (2024: £35.0 million) relating to an insurance receivable for remedial building works (see note 17).
The fair value of trade and other receivables held at amortised cost approximates their carrying value. Deposits with banks in the form
of bullion are categorised as level 1 in the fair value hierarchy. See note 8 for details on the fair value hierarchy.
Estimates and judgements – carried interest receivable
Accrued income includes £155.8 million (2024: £131.2 million) of receivables in respect of carried interest. This income is due over a
number of years and only when contractually agreed performance levels are exceeded. The income received may vary as a result of the
actual experience, including future investment returns, differing from that assumed. Further information regarding the estimates and
judgements applied is set out in note 2.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
112 Schroders Annual Report and Accounts 2025
8 Financial assets and liabilities
Financial assets
The Group holds financial assets including loans and advances to clients and banks, equities, debt securities, pooled investment
vehicles and derivatives (see note 18) to support the Group capital strategies, activities within the Wealth Management banking book
and client facilitation.
The Group initially recognises all financial assets at fair value. The Group subsequently measures each financial asset at fair value
through profit or loss (FVTPL), fair value through other comprehensive income (FVOCI) or amortised cost. Fair value is the price that
would be received to sell an asset or paid to transfer a liability between market participants. Amortised cost is the amount determined
based on moving the initial fair value to the maturity value on a systematic basis using the effective interest rate, taking account of
repayment dates and initial expected premiums or discounts.
Financial assets at amortised cost
Financial assets are measured at amortised cost when their contractual cash flows represent solely payments of principal and interest
and they are held within a business model designed to collect cash flows. This classification typically applies to the Group’s loans and
advances, trade receivables and some debt securities held by the Group’s Wealth Management entities. The carrying value of amortised
cost financial assets is adjusted for impairment under the expected credit loss (ECL) model. Movements in the ECL provision are
recognised in net gain on financial instruments and other income and in other net (loss)/gain on financial instruments and other income
in the income statement (see note 19).
Financial assets at FVOCI
Financial assets are measured at FVOCI when their contractual cash flows represent solely payments of principal and interest and they
are held within a business model designed to collect cash flows and to sell assets. This classification applies to certain debt securities,
principally within the Group’s Wealth Management entities. Impairment is recognised for debt securities classified as FVOCI under the
ECL model. Movements in the ECL provision are recognised in net gain on financial instruments and other income in the income
statement (see note 19). Unrealised gains and losses on debt securities classified as financial assets at FVOCI are recorded in other
comprehensive income. Cumulative gains and losses are reclassified to the income statement if the asset is sold or otherwise realised.
Interest earned on FVOCI assets is recognised using the effective interest method.
Financial assets at FVTPL
All other financial assets are measured at FVTPL. Net gains and losses on seed investments, co-investments and other investments
where investing is part of the Group’s main business activities, are presented within net gain on financial instruments and other income;
net gains and losses on the Group’s other investments are presented within other net gain on financial instruments and other income;
and net gains and losses on investments that are held to hedge deferred employee cash awards are presented within operating
expenses (see note 3). This separate presentation provides more relevant information about the applicable components of the Group’s
income statement.
Financial liabilities
The Group’s financial liabilities principally comprise deposits by Wealth Management clients and banking counterparties. They also
include derivatives (see note 18) to support the Group capital strategies, activities within the Wealth Management banking book and
client facilitation. Financial liabilities also arise from obligations in respect of carried interest, contingent consideration and other
liabilities arising from acquisitions completed by the Group, and third party interests in consolidated funds.
The Group initially recognises all financial liabilities at fair value. These are subsequently measured at amortised cost or fair value.
Financial liabilities at amortised cost
The majority of the Group’s financial liabilities are measured at amortised cost and this typically applies to the Group’s Wealth
Management client accounts, banking deposits and trade payables.
Financial liabilities at FVTPL
Financial liabilities are measured at FVTPL when this reduces an accounting mismatch or when otherwise required by the accounting
standards. This classification typically applies to financial obligations in respect of carried interest, third party interests in consolidated
funds (see Basis of preparation on page 150) and contingent consideration.
Net gains and losses are presented in the income statement based on the substance of the instrument. Net gains and losses on
financial obligations in respect of carried interest are presented within cost of sales; and net gains and losses on contingent
consideration are presented within net gain on financial instruments and other income. This separate presentation provides more
relevant information about the applicable components of the Group’s income statement.
Liabilities to purchase subsidiary shares
Financial liabilities in relation to equity transactions arise on certain acquisitions where the Group has a liability to purchase the
remaining interest in a subsidiary that is not wholly owned by the Group (see Basis of consolidation on page 150).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
113 Schroders Annual Report and Accounts 2025
8 Financial assets and liabilities continued
2025
Not at
Level 1
Level 2
Level 3
fair value Total
£m
£m
£m
£m
£m
Financial assets at amortised cost:
Loans and advances to banks
–
–
–
202.8
202.8
Loans and advances to clients
–
–
–
393.5
393.5
Debt securities
–
–
–
352.0
352.0
–
–
–
948.3
948.3
Financial assets at FVOCI:
Debt securities
1,138.1
1.9
10.4
–
1,150.4
1,138.1
1.9
10.4
–
1,150.4
Financial assets at FVTPL:
Debt securities
–
146.0
–
–
146.0
Pooled investment vehicles
704.4
65.7
241.7
–
1,011.8
Equities
58.1
0.5
90.4
–
149.0
Derivative contracts
0.5
3.9
–
–
4.4
763.0
216.1
332.1
–
1,311.2
Total financial assets
1,901.1
218.0
342.5
948.3
3,409.9
Financial liabilities at amortised cost:
Client accounts
–
–
–
5,131.8
5,131.8
Deposits by banks
–
–
–
33.1
33.1
–
–
–
5,164.9
5,164.9
Financial liabilities at FVTPL:
Derivative contracts
0.1
5.6
–
–
5.7
Other financial liabilities
91.7
–
187.0
–
278.7
91.8
5.6
187.0
–
284.4
Liabilities to purchase subsidiary shares
–
–
66.4
–
66.4
Total financial liabilities
91.8
5.6
253.4
5,164.9
5,515.7
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
114 Schroders Annual Report and Accounts 2025
8 Financial assets and liabilities continued
2024
Not at
Level 1
Level 2
Level 3
fair value Total
£m
£m
£m
£m
£m
Financial assets at amortised cost:
Loans and advances to banks
–
–
–
286.5
286.5
Loans and advances to clients
–
–
–
390.0
390.0
Debt securities
–
–
–
311.8
311.8
–
–
–
988.3
988.3
Financial assets at FVOCI:
Debt securities
1,103.7
2.0
9.5
–
1,115.2
1,103.7
2.0
9.5
–
1,115.2
Financial assets at FVTPL:
Debt securities
13.4
40.5
–
–
53.9
Pooled investment vehicles
663.6
19.1
206.5
–
889.2
Equities
117.5
0.3
55.5
–
173.3
Derivative contracts
0.7
7.3
–
–
8.0
795.2
67.2
262.0
–
1,124.4
Total financial assets
1,898.9
69.2
271.5
988.3
3,227.9
Financial liabilities at amortised cost:
Client accounts
–
–
–
4,725.0
4,725.0
Deposits by banks
–
–
–
30.1
30.1
–
–
–
4,755.1
4,755.1
Financial liabilities at FVTPL:
Derivative contracts
–
11.4
–
–
11.4
Other financial liabilities
101.8
–
104.6
–
206.4
101.8
11.4
104.6
–
217.8
Liabilities to purchase subsidiary shares
–
–
140.7
–
140.7
Total financial liabilities
101.8
11.4
245.3
4,755.1
5,113.6
The Group has recognised a net gain on financial instruments at fair value through profit or loss of £58.9 million (2024: net gain of £20.8
million). A net gain on financial instruments at fair value through other comprehensive income of £0.2 million (2024: net loss of £0.6 million)
has been reclassified to the income statement.
The fair value of financial assets and liabilities at amortised cost approximates their carrying value. No financial assets or liabilities
were transferred between levels during the year (2024: none).
2025
2024
Financial Financial Financial Financial
assets liabilities assets liabilities
£m
£m
£m
£m
Current
2,614.2
5,373.5
2,565.3
4,907.9
Non-current
795.7
142.2
662.6
205.7
3,409.9
5,515.7
3,227.9
5,113.6
See note 18 and 19 for the contractual maturities of derivative contracts, client accounts and deposits by banks. The Group's other financial
liabilities and liabilities to purchase subsidiary shares (undiscounted) contractually mature in the following time periods:
2025
2024
£m
£m
Less than 1 year
208.3
135.2
1 – 5 years
173.1
265.3
More than 5 years
16.1
10.8
189.2
276.1
397.5
411.3
The Group had investment call commitments in respect of financial assets at 31 December 2025 of £80.1 million (2024: £95.7 million).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
115 Schroders Annual Report and Accounts 2025
8 Financial assets and liabilities continued
Movements in financial assets and liabilities categorised as level 3 during the year were:
2025
2024
Liabilities to Liabilities to
Financial Financial purchase Financial Financial purchase
assets liabilities subsidiary assets liabilities subsidiary
at FVTPL at FVTPL shares at FVTPL at FVTPL shares
£m
£m
£m
£m
£m
£m
At 1 January
262.0
104.6
140.7
228.1
96.9
177.6
Exchange translation adjustments
(0.2)
(0.2)
(0.6)
(3.8)
(1.7)
–
Net (loss)/gain recognised in the income
statement
(0.7)
10.6
–
2.7
8.7
–
Remeasurements
–
–
(47.3)
–
–
(36.7)
Additions
89.0
91.1
–
56.4
8.6
3.7
Disposals and settlements
(18.0)
(19.1)
(26.4)
(21.4)
(7.9)
(3.9)
At 31 December
332.1
187.0
66.4
262.0
104.6
140.7
Estimates and judgements
The Group holds financial instruments that are measured at fair value. The fair value of financial instruments may be derived from readily
available sources or may require some estimation. The degree of estimation involved depends on the individual financial instrument and
is reflected in the fair value hierarchy below. Judgements may include determining which valuation approach to apply as well as
determining appropriate assumptions. For level 2 and 3 financial instruments, the judgement applied by the Group gives rise to an
estimate of fair value. The approach to determining the fair value estimate of level 2 and 3 financial instruments is set out below. The fair
value levels are based on the degree to which the fair value is observable and are defined as follows:
– Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities
and principally comprise investments in pooled investment vehicles, quoted equities, sovereign government debt and exchange-
traded derivatives.
– Level 2 fair value measurements are those derived from inputs that are directly or indirectly observable from market data, other
than quoted prices included in level 1. The Group’s level 2 financial instruments principally comprise holdings in pooled investment
vehicles, foreign exchange contracts, corporate debt securities and asset- and mortgage-backed securities. Valuation techniques
may include using a broker quote in an inactive market or an evaluated price based on a compilation of primarily observable market
information utilising information readily available via external sources. For funds not priced on a daily basis, the net asset value that
is issued monthly or quarterly is used.
– Level 3 fair value measurements are those derived from valuation techniques that include significant inputs that are not based on
observable market data. The Group’s level 3 financial assets principally comprise holdings in pooled investment vehicles, including
private equity funds, holdings in property investment vehicles that operate hotel businesses, and direct investments held via
consolidated funds. The pooled investment vehicles and direct investments are measured in accordance with the International
Private Equity and Venture Capital Valuation Guidelines 2022 using the valuation technique that is most suitable to the applicable
investment. The property investment vehicles are valued based on the expected future cash flows that could be generated from the
underlying hotel businesses. Given the application of different valuation techniques, and as the investments are not homogenous in
nature, there are no significant assumptions or reasonably possible alternatives that would lead to a material change in fair value.
The Group’s financial liabilities categorised as level 3 principally consist of third-party liabilities related to carried interest
arrangements, obligations arising from contingent consideration and other liabilities to purchase the remaining interest in acquired
subsidiaries. Information about the estimates and judgements made in determining the fair value of carried interest payable is set
out in note 2. Liabilities in respect of options to purchase the remaining interest in certain subsidiaries require judgement in
determining the appropriate assumptions to be applied in the estimation of the fair value. The amount that will ultimately be paid in
relation to an option is dependent on the future earnings of the subsidiary and may be subject to a cap over the enterprise value. In
estimating the liability, the assumptions principally relate to the future earnings of the business, the market multiple applied to the
earnings and the rate applied to discount the liability back to present value. The future earnings of the applicable subsidiaries are
estimated based on cash flow forecasts specific to the individual business and consequently there is no one assumption that is
individually material to the valuation. Market multiples are applied to the forecast earnings to estimate the fair value of the business.
Market multiples reflect the nature of the business and take into account observable market transactions where appropriate. Market
multiples range from 12 to 15 times earnings. An increase/decrease in market multiples of one would increase/decrease the
financial liability by £2 million/£2 million (2024: £7 million/£7 million). A discount rate of 14% has been used to discount these
liabilities. An increase/decrease in the discount rate of 1% would decrease/increase the financial liability by £4 million/£4 million
(2024: £2 million/£2 million). The remaining level 3 liabilities are measured using different valuation methodologies and
assumptions, and there are no significant assumptions or reasonably possible alternatives that would lead to a material change in
fair value.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
116 Schroders Annual Report and Accounts 2025
9 Issued debt
2025
2024
£m
£m
Subordinated debt in issue
256.1
256.0
On 18 April 2024, the Group issued £250.0 million of subordinated notes, which are eligible as Tier 2 regulatory capital, with a maturity date of
18 July 2034. These notes are financial instruments measured at amortised cost and bear interest at a fixed rate of 6.346% per annum to 18
July 2029, and at a reset rate thereafter. The reset rate would be determined with reference to the then current 5-year gilt yield and the
original reoffer spread of 225 basis points. The Group has the option to redeem all of the notes between 18 April 2029 and 18 July 2029. The
fair value of the notes at 31 December 2025 was £267.3 million (2024: £259.4 million) and they would be categorised as level 2 within the fair
value hierarchy (see note 8).
10 Associates and joint ventures
Associates are entities in which the Group has an investment and over which it has significant influence, but not control, through
participation in the financial and operating policy decisions. Joint ventures are entities in which the Group has an investment where it,
along with one or more other shareholders, has contractually agreed to share control of the business and where the major decisions
require the unanimous consent of the joint partners. In both cases, the Group initially records the investment at the fair value of the
purchase consideration, including purchase-related costs. The Group’s income statement reflects its share of the entity’s profit or loss
after tax and amortisation of intangible assets. The Group’s statement of other comprehensive income records the Group’s share of
gains and losses arising from the entity’s financial assets at FVOCI (see note 8). The statement of financial position subsequently records
the Group’s share of the net assets of the entity plus any goodwill and intangible assets that arose on purchase, less subsequent
amortisation. The statement of changes in equity records the Group’s share of other equity movements of the entity. At each reporting
date, the Group applies judgement to determine whether there is any indication that the carrying value of associates and joint ventures
may be impaired.
The associates and joint ventures reserve in the statement of changes in equity represents the Group’s share of profits in its investments
yet to be received (for example, in the form of dividends or distributions), less any amortisation of intangible assets. Certain associates
are held within financial assets at FVTPL where permitted by the accounting standards (see note 8). Information about the Group’s
principal associates measured at fair value is disclosed within this note.
(a) Investments in associates and joint ventures accounted for using the equity method
2025
2024
Associates
Joint ventures
Total
Associates
Joint ventures
Total
£m
£m
£m
£m
£m
£m
At 1 January
368.9
181.1
550.0
348.2
183.5
531.7
Exchange translation adjustments
(18.0)
0.1
(17.9)
(2.4)
(0.7)
(3.1)
Additions
10.0
–
10.0
17.6
1.0
18.6
Disposals
(1.2)
(195.5)
(196.7)
(8.0)
–
(8.0)
Profit for the year after tax
29.6
21.6
51.2
36.5
5.6
42.1
Other comprehensive income for the year, net of tax
(0.5)
–
(0.5)
–
–
–
Impairment
(5.1)
(4.0)
(9.1)
(8.0)
–
(8.0)
Distributions of profit
(10.1)
(0.8)
(10.9)
(15.0)
(8.3)
(23.3)
At 31 December
373.6
2.5
376.1
368.9
181.1
550.0
On 9 October 2025, the Group disposed of its investment in Scottish Widows Schroder Wealth Holdings Limited (SPW). The 49.9% interest
was acquired by Lloyds Banking Group in exchange for its 19.1% interest in Schroder Wealth Holdings Limited (SWHL). No cash was paid or
received as part of the transaction. A gain of £113.3 million has been recognised and presented separately within net operating income in the
income statement but excluded from adjusted net operating income. The impact of acquiring the interest in SWHL is recognised within
equity (see Basis of consolidation on page 150).
Information about the significant associates and joint ventures held by the Group at 31 December 2025 is shown below. The companies
are unlisted.
Principal place Percentage owned
Name of associate or joint venture
Nature of its business
of business
Class of share
by the Group
Bank of Communications Schroder Fund Management
Investment management
China
Ordinary shares
30.0%
Company Limited (BOCOM FMC)
Axis Asset Management Company Limited (Axis)
Investment management
India
Ordinary shares
25.0%
Schroder BOCOM Wealth Management Company
Wealth management
China
Ordinary shares
51.0%
Limited (BOCOM WMC)
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
117 Schroders Annual Report and Accounts 2025
10 Associates and joint ventures continued
(a) Investments in associates and joint ventures accounted for using the equity method continued
2025
SPW
BOCOM FMC
Axis
BOCOM WMC
Other
Total
£m
£m
£m
£m
£m
£m
Non-current assets
–
36.7
110.4
4.4
868.4
1,019.9
Current assets
–
892.1
186.5
81.4
175.1
1,335.1
Non-current liabilities
–
(1.0)
–
(0.2)
(892.9)
(894.1)
Current liabilities
–
(124.1)
(30.5)
(5.7)
(109.7)
(270.0)
Total equity
–
803.7
266.4
79.9
40.9
1,190.9
Group's share of net assets
–
241.1
66.6
40.7
16.8
365.2
Goodwill and intangible assets
–
–
8.6
–
2.3
10.9
Deferred tax liability
–
–
–
–
–
–
Carrying value held by the Group
–
241.1
75.2
40.7
19.1
376.1
Net income
167.5
179.4
132.4
5.5
33.8
518.6
Profit/(loss) for the year
45.1
80.6
57.4
(9.2)
(9.4)
164.5
Other comprehensive income
–
(1.7)
–
–
–
(1.7)
Total comprehensive income
45.1
78.9
57.4
(9.2)
(9.4)
162.8
Group’s share of profit/(loss) for the year
1
20.7
24.2
14.3
(4.7)
(3.3)
51.2
Group’s share of other comprehensive income
–
(0.5)
–
–
–
(0.5)
Group's share of total comprehensive income
1
20.7
23.7
14.3
(4.7)
(3.3)
50.7
2024
SPW
BOCOM FMC
Axis
BOCOM WMC
Other
Total
£m
£m
£m
£m
£m
£m
Non-current assets
191.6
42.9
77.5
8.4
1,086.6
1,407.0
Current assets
160.2
874.2
191.6
89.5
165.8
1,481.3
Non-current liabilities
(33.0)
–
–
(1.4)
(1,072.1)
(1,106.5)
Current liabilities
(67.1)
(136.6)
(30.8)
(4.2)
(113.3)
(352.0)
Total equity
251.7
780.5
238.3
92.3
67.0
1,429.8
Group's share of net assets
125.6
234.2
59.6
47.1
19.0
485.5
Goodwill and intangible assets
49.5
–
9.7
–
6.4
65.6
Deferred tax liability
(1.1)
–
–
–
–
(1.1)
Carrying value held by the Group
174.0
234.2
69.3
47.1
25.4
550.0
Net income
156.6
208.8
132.3
5.7
54.4
557.8
Profit/(loss) for the year
15.1
95.7
60.4
(10.4)
(2.6)
158.2
Total comprehensive income
15.1
95.7
60.4
(10.4)
(2.6)
158.2
Group's share of total comprehensive income
1
5.2
28.7
15.1
(5.3)
(1.6)
42.1
1. Includes a £2.0 million (2024: £3.1 million) amortisation charge on intangible assets recognised on acquisition.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
118 Schroders Annual Report and Accounts 2025
10 Associates and joint ventures continued
(b) Investments in associates measured at fair value
Where the Group holds units in pooled investment vehicles that give the Group significant influence, but not control, through participation
in the financial and operating policy decisions, the Group records such investments at fair value. Information about the Group’s associates
measured at fair value is shown below. The investments are recorded as financial assets within the statement of financial position.
2025
Schroder
Matching Plus
Buy and
Maintain Credit Schroder QEP SMP Synthetic SMP Synthetic SMP Synthetic
Schroder ISF Sterling Cashflow Global Active Nominal Gilt Index Linked Gilt Index Linked Gilt
China A All Cap (2032-2040) Value Fund Fund (2018-2037) Fund (2028-2037) Fund (2048-2057)
£m
£m
£m
£m
£m
£m
Current assets
52.1
150.7
392.9
752.3
2,063.0
564.9
Current liabilities
(0.5)
(1.7)
(1.0)
(614.2)
(1,654.2)
(311.0)
Total equity
51.6
149.0
391.9
138.1
408.8
253.9
Net income
13.5
3.1
14.7
(24.6)
(89.9)
(113.9)
Profit/(loss) for the year
13.5
3.1
14.7
(24.6)
(89.9)
(113.9)
Total comprehensive income
13.5
3.1
14.7
(24.6)
(89.9)
(113.9)
Country of incorporation
1
LU
LU
UK
LU
LU
LU
Percentage owned by the Group
20%
28%
26%
35%
31%
21%
2024
Schroder
Matching Plus Buy
Schroders Capital and Maintain
Semi-Liquid BlueOrchard Schroder QEP Schroder Long SMP Synthetic Credit Sterling
Global Real Estate Impact Credit Global Active Dated Corporate Nominal Gilt Fund Cashflow
Total Return Fund Value Fund Bond Fund (2038-2057) (2032-2040)
£m
£m
£m
£m
£m
£m
Current assets
42.4
26.4
322.3
148.2
1,595.8
219.5
Current liabilities
(10.1)
–
(0.6)
(0.7)
(1,091.0)
(48.7)
Total equity
32.3
26.4
321.7
147.5
504.8
170.8
Net income
0.6
1.5
10.4
8.6
51.9
4.7
Profit for the year
0.6
1.5
10.4
8.6
51.9
4.7
Total comprehensive income
0.6
1.5
10.4
8.6
51.9
4.7
Country of incorporation
1
LU
LU
UK
UK
LU
LU
Percentage owned by the Group
33%
33%
27%
20%
23%
27%
1. Country abbreviations: Luxembourg (LU) and United Kingdom (UK).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
119 Schroders Annual Report and Accounts 2025
11 Property, plant and equipment
The Group’s property, plant and equipment provides the infrastructure to enable the Group to operate and principally comprises
leasehold improvements, freehold land and buildings, fixtures and fittings and computer equipment. Right-of-use assets in the form of
leases are also included within property, plant and equipment (see note 12). Assets are initially stated at cost, which includes expenditure
associated with the acquisition. The cost of the asset is recognised in the income statement as a depreciation charge on a straight-line
basis over the estimated useful life, with the exception of land which is assumed to have an indefinite useful life.
2025
2024
Leasehold Land and Other Leasehold Land and
improvements buildings
assets
Total
improvements
buildings Other assets
Total
£m
£m
£m
£m
£m
£m
£m
£m
Cost
At 1 January
215.9
19.7
157.9
393.5
210.7
19.7
166.4
396.8
Exchange translation adjustments
0.5
–
(0.6)
(0.1)
(1.3)
–
(1.0)
(2.3)
Additions
0.6
–
1.9
2.5
15.8
–
8.0
23.8
Disposals
(0.5)
–
(3.6)
(4.1)
(9.3)
–
(15.5)
(24.8)
At 31 December
216.5
19.7
155.6
391.8
215.9
19.7
157.9
393.5
Accumulated depreciation
At 1 January
(92.9)
(3.0)
(112.3)
(208.2)
(89.3)
(2.6)
(118.7)
(210.6)
Exchange translation adjustments
0.6
–
0.4
1.0
0.7
–
0.8
1.5
Depreciation charge
(13.0)
(0.4)
(7.7)
(21.1)
(13.6)
(0.4)
(9.3)
(23.3)
Disposals
0.5
–
3.2
3.7
9.3
–
14.9
24.2
At 31 December
(104.8)
(3.4)
(116.4)
(224.6)
(92.9)
(3.0)
(112.3)
(208.2)
Net book value at 31 December
111.7
16.3
39.2
167.2
123.0
16.7
45.6
185.3
Right-of-use assets (see note 12)
276.3
303.3
Property, plant and equipment net
book value at 31 December
443.5
488.6
The Group has no contractual commitments for the acquisition of property, plant and equipment at 31 December 2025 (2024: nil).
12 Leases
The Group’s lease arrangements primarily consist of operating leases relating to office space.
The Group initially records a lease liability in the statement of financial position reflecting the present value of the future contractual cash
flows to be made over the lease term, discounted using the Group’s incremental borrowing rate. This is the rate that the Group would
have to pay for a loan of a similar term and with similar security to obtain an asset of similar value. A right-of-use (ROU) asset is recorded
at the value of the lease liability plus any directly related costs and estimated future dilapidation expense and is presented within
property, plant and equipment (see note 11) on the balance sheet. Interest is accrued on the lease liability using the effective interest
method to give a constant rate of return over the life of the lease while the balance is reduced as lease payments are made. The ROU
asset is depreciated from commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term as
the benefit of the asset is consumed. Increases or decreases that occur at contractually agreed market rent review dates are included in
the lease liability once revised market rents have been agreed.
The Group considers whether the lease term should reflect options to extend or reduce the life of the lease. Relevant factors that could
create an economic incentive to exercise the option are considered and the extension/termination is included if it is reasonably certain to
be exercised. After the commencement date, the Group reassesses the lease term if there is a significant event or change in
circumstances that is within its control and affects the likelihood that it will exercise (or not exercise) the option. Should this occur, the
Group modifies the lease liability and associated ROU asset to reflect the revised remaining expected cash flows.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
120 Schroders Annual Report and Accounts 2025
12 Leases continued
2025
2024
Right-of-use Lease Right-of-use Lease
assets liabilities assets liabilities
£m
£m
£m
£m
At 1 January
303.3
345.7
278.1
318.7
Exchange translation adjustments
0.4
(0.2)
(0.9)
(0.6)
Additions and remeasurements of lease obligations
9.2
7.6
64.6
63.9
Lease payments
–
(46.8)
–
(46.0)
Depreciation charge
(36.6)
–
(38.5)
–
Interest expense
–
11.2
–
9.7
At 31 December
276.3
317.5
303.3
345.7
2025
2024
£m
£m
Lease liabilities – current
28.5
36.4
Lease liabilities – non-current
289.0
309.3
317.5
345.7
The Group’s lease liabilities (undiscounted) contractually mature in the following time periods:
2025
2024
£m
£m
Less than 1 year
38.6
47.0
1 – 5 years
144.1
148.9
More than 5 years
208.0
230.3
352.1
379.2
390.7
426.2
The Group has contractual commitments for future leases not yet commenced at 31 December 2025 of £15.5 million (2024: £11.4 million).
13 Goodwill and intangible assets
Intangible assets (other than software) arise when the Group acquires a business and the fair value paid exceeds the fair value of the
net tangible assets acquired. This premium reflects additional value that the Group determines to be attached to the business.
Identifiable acquired intangible assets relating to business combinations include technology and contractual agreements to manage
client assets and gain additional access to new or existing clients and geographies. Where such assets can be identified, they are
classified as acquired intangible assets and amortised to the income statement within operating expenses on a straight-line basis,
primarily over seven years.
Consideration paid to acquire a business in excess of the acquisition date fair value of net tangible and identifiable intangible assets
is known as goodwill. Goodwill is not charged to the income statement unless its value has diminished. The assessment of whether
goodwill has become impaired is based on the expected future returns of the relevant cash-generating unit (CGU) as a whole.
Software purchased and developed for use in the business is also classified as an intangible asset. The cost of purchasing and
developing software is taken to the income statement over time as an amortisation charge within operating expenses. The treatment is
similar to that for property, plant and equipment, and the asset is normally amortised on a straight-line basis over three to five years,
but can have an estimated useful life of up to ten years.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
121 Schroders Annual Report and Accounts 2025
13 Goodwill and intangible assets continued
2025
2024
Acquired Acquired
intangible intangible
Goodwill
assets
Software
Total
Goodwill
assets
Software
Total
£m
£m
£m
£m
£m
£m
£m
£m
Cost
At 1 January
1,269.6
750.6
656.0
2,676.2
1,255.0
730.6
632.7
2,618.3
Exchange translation adjustments
15.9
5.5
2.1
23.5
(17.3)
(6.5)
(2.8)
(26.6)
Additions
6.2
5.8
16.6
28.6
31.9
26.5
46.7
105.1
Disposals
–
–
(7.4)
(7.4)
–
–
(20.6)
(20.6)
Impairment
1
(17.1)
(16.4)
(12.4)
(45.9)
–
–
–
–
At 31 December
1,274.6
745.5
654.9
2,675.0
1,269.6
750.6
656.0
2,676.2
Accumulated amortisation
At 1 January
–
(419.0)
(416.7)
(835.7)
–
(367.7)
(365.4)
(733.1)
Exchange translation adjustments
–
(4.2)
(1.6)
(5.8)
–
4.4
1.7
6.1
Amortisation charge
–
(56.9)
(67.6)
(124.5)
–
(55.7)
(73.6)
(129.3)
Disposals
–
–
6.8
6.8
–
–
20.6
20.6
At 31 December
–
(480.1)
(479.1)
(959.2)
–
(419.0)
(416.7)
(835.7)
Carrying amount at 31 December
1,274.6
265.4
175.8
1,715.8
1,269.6
331.6
239.3
1,840.5
1. Principally resulting from the discontinuation and sale of business operations. Impairments principally arose within the Asset Management segment.
The Group completed two business combinations during the year ended 31 December 2025, resulting in £4.1 million of identifiable
intangible assets and £6.2 million of Benchmark goodwill. The Group acquired £1.7 million of customer contracts through Benchmark that
were not considered to be business combinations.
The Group has no contractual commitments for the acquisition of software at 31 December 2025 (2024: nil).
Estimates and judgements
The Group estimates the fair value of identifiable intangible assets acquired at the acquisition date based on forecast profits,
taking account of synergies, derived from existing contractual arrangements. This assessment involves judgement in determining
assumptions relating to potential future revenues, profit margins, appropriate discount rates and the expected duration of client
relationships. The difference between the fair value of the consideration and the value of the identifiable assets and liabilities acquired,
including intangible assets, is accounted for as goodwill.
At each reporting date, the Group applies judgement to determine whether there is any indication that an acquired intangible asset
may be impaired. If any indication exists, a full assessment is undertaken. Goodwill is assessed for impairment on an annual basis.
If the assessment of goodwill or an acquired intangible asset determines that the carrying value exceeds the estimated recoverable
amount at that time, the assets are written down to their recoverable amount. The recoverable amount of goodwill is determined using a
discounted cash flow model. Any impairment is recognised in the income statement and cannot be reversed. Following the closure of the
Munich Real Estate operations in 2025, the goodwill associated with the business was written off.
Goodwill acquired in a business combination is allocated to the CGU, or group of CGUs, that are expected to benefit from that business
combination. Following changes to the operating structure of the Group, the BlueOrchard business was deemed to represent a separate
group of CGUs to which goodwill is allocated. The Benchmark business within Wealth Management is assessed separately from the rest
of Wealth Management. Accordingly, there are four groups of CGUs to which goodwill is allocated: £915.0 million to Asset Management
(excluding BlueOrchard); £79.1 million to BlueOrchard; £180.5 million to Wealth Management (excluding Benchmark); and £100.0 million
to Benchmark. In 2024, there were three groups of CGUs to which goodwill was allocated: £995.2 million to Asset Management; £180.6
million to Wealth Management (excluding Benchmark); and £93.8 million to Benchmark.
The recoverable amounts of the CGUs are determined from value-in-use calculations applying a discounted cash flow model using the
Group’s five-year strategic business plan. The key assumptions on which the Group’s cash flow projections are based include long-term
market growth rates of 2% per annum (2024: 2%), post-tax discount rates ranging from 11% to 14% (2024: 10% to 13%), expected flows
and expected changes to revenue margins. The results of the calculations indicate that goodwill is not impaired. Using a pre-tax discount
rate on pre-tax cash flows would not produce a materially different result.
Reasonable movements (1%) in the growth rate and/or the discount rate would not lead to a material impairment. This is due to the
amount of goodwill allocated to the relevant CGU relative to the size of the relevant future profitability estimate. A comparison of actual
results to the projected results used to assess goodwill impairment in prior years shows that the Group would have recognised no
changes (2024: nil) to its goodwill asset in the year as a result of inaccurate projections.
The recoverable amount of acquired intangible assets is the greater of fair value less costs to sell and the updated discounted valuation
of the remaining net residual income stream. Any impairment is recognised in the income statement but may be reversed if relevant
conditions improve.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
122 Schroders Annual Report and Accounts 2025
14 Deferred tax
Deferred tax assets and liabilities represent amounts of tax that will become recoverable and payable in future accounting periods.
They arise as a result of temporary differences, where the time at which profits and losses are recognised for tax purposes differs from
the time at which the relevant transaction is recorded. A deferred tax asset represents a tax reduction that is expected to arise in a future
period based on past transactions. A deferred tax liability represents taxes that will become payable in a future period as a result of
current or prior year transactions.
Deferred tax liabilities also arise on certain acquisitions where the amortisation of the acquired intangible asset does not result in a tax
deduction. The deferred tax liability is established on acquisition and is released to the income statement to match the intangible asset
amortisation. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the year-end date.
2025
Accelerated Deferred Intangible Other net
capital employee Pension assets on temporary
allowances awards
schemes
Tax losses
acquisition
differences
Total
£m
£m
£m
£m
£m
£m
£m
At 1 January
19.4
92.9
(32.2)
57.9
(80.1)
(17.8)
40.1
Income statement (charge)/credit
(4.0)
1.3
1.0
(28.8)
17.4
(8.6)
(21.7)
Income statement (charge)/credit due to changes in tax rate
(0.1)
0.4
–
–
–
0.4
0.7
Credit to statement of other comprehensive income
–
–
0.2
–
–
–
0.2
Credit to equity
–
1.8
–
–
–
–
1.8
Business combinations
–
–
–
–
(1.0)
–
(1.0)
Exchange adjustments
(0.2)
(1.1)
–
0.4
0.2
(0.3)
(1.0)
At 31 December
15.1
95.3
(31.0)
29.5
(63.5)
(26.3)
19.1
2024
Accelerated Deferred Intangible Other net
capital employee Pension assets on temporary
allowances awards
schemes
Tax losses
acquisition
differences
Total
£m
£m
£m
£m
£m
£m
£m
At 1 January
23.3
105.9
(34.0)
88.3
(88.1)
(19.8)
75.6
Income statement (charge)/credit
(3.6)
(12.0)
(0.1)
(29.9)
12.8
2.5
(30.3)
Income statement (charge)/credit due to changes in tax rate
(0.4)
(0.2)
–
(0.1)
–
0.1
(0.6)
Credit to statement of other comprehensive income
–
–
1.9
–
–
–
1.9
Charge to equity
–
(0.1)
–
–
–
–
(0.1)
Business combinations
–
–
–
–
(5.5)
–
(5.5)
Exchange adjustments
0.1
(0.7)
–
(0.4)
0.7
(0.6)
(0.9)
At 31 December
19.4
92.9
(32.2)
57.9
(80.1)
(17.8)
40.1
Included in the deferred tax asset is an asset relating to UK tax deductions for share-based remuneration which is dependent on the prices
of the Company’s ordinary shares at the time the awards are exercised.
A deferred tax asset of £13.7 million (2024: £10.5 million) relating to £57.0 million of realised and unrealised capital losses has not been
recognised as there is insufficient evidence that there will be sufficient taxable gains in the future against which the deferred tax asset could
be utilised.
A deferred tax asset of £20.4 million (2024: £24.4 million) relating to £85.3 million of losses and other temporary differences has not been
recognised as there is insufficient evidence that there will be sufficient taxable profits against which these losses and temporary differences
can be utilised.
The Group has applied the mandatory IAS 12 Income Taxes temporary exemption from the recognition and disclosure of deferred taxes
arising from implementation of the OECD’s Pillar Two model rules.
After offsetting deferred tax assets and liabilities where appropriate within territories, the net deferred tax asset comprises:
2025
2024
£m
£m
Deferred tax assets
123.4
160.4
Deferred tax liabilities
(104.3)
(120.3)
19.1
40.1
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
123 Schroders Annual Report and Accounts 2025
15 Unit-linked liabilities and assets backing unit-linked liabilities
The Group operates a unit-linked life assurance business through the wholly owned subsidiary Schroder Pension Management Limited
(the Life Company). The Life Company provides unit-linked investment products through a life assurance wrapper. The investment
products do not provide cover for insurance risk and are therefore recognised and accounted for as financial instruments and presented
as financial liabilities due to Life Company investors (policyholders) within unit-linked liabilities. The financial risks of these products are
largely borne by the third-party investors, consistent with other investment products managed by the Group. However, since the Life
Company, which is a subsidiary, issues the investment instrument and holds the relevant financial assets, both the investments and the
third-party obligations are recorded in the statement of financial position.
The investment product is almost identical to a unit trust. As it is a life assurance product, the contractual rights and obligations of the
investments remain with the Group and the AUM are therefore included on the statement of financial position, together with the liability
to investors. The Group earns fee income from managing the investment, which is included in revenue.
Financial assets held by the Life Company are measured at FVTPL. Other balances include cash and receivables, which are measured at
amortised cost (see note 8). The unit-linked liabilities are measured at FVTPL to avoid an accounting mismatch. The Life Company’s
assets are regarded as current assets as they represent the amount available to Life Company investors (or third-party investors in
consolidated funds) who are able to withdraw their funds on call, subject to certain restrictions in the case of illiquidity. Gains and losses
from assets held to cover investor obligations are attributable to investors in the Life Company or to third-party investors in the funds.
As a result, any gain or loss is offset by a change in the obligation to investors.
2025
2024
£m
£m
Financial liabilities due to Life Company investors
8,623.4
7,228.0
Financial liabilities due to third parties
1
4,104.6
2,230.7
12,728.0
9,458.7
1. In accordance with the accounting standards, the Group is deemed to hold a controlling interest in certain funds as a result of the investments held by the
Life Company. This results in all of the assets and liabilities of those funds being consolidated within the statement of financial position and the third-party
interest in the fund being recorded as a financial liability due to third-party investors.
The Group has no primary exposure to market risk, credit risk or liquidity risk in relation to the investments due to Life Company investors.
The risks and rewards associated with its investments are borne by the investors in the Life Company’s investment products or third-party
investors in the funds and not by the Life Company itself. Consequently, no further financial instrument risk disclosures are included.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
124 Schroders Annual Report and Accounts 2025
15 Unit-linked liabilities and assets backing unit-linked liabilities continued
Fair value measurements of Life Company financial assets and liabilities
Each of the Life Company’s financial assets and liabilities has been categorised within the fair value hierarchy as shown below. These levels
are based on the degree to which the fair value is observable and are defined in note 8.
2025
Not at
Level 1
Level 2
Level 3
fair value
Total
£m
£m
£m
£m
£m
Assets backing unit-linked liabilities
Financial assets at fair value through profit or loss:
Debt securities
2,990.4
1,455.4
–
–
4,445.8
Pooled investment vehicles
3,995.5
84.6
60.0
–
4,140.1
Equities
3,798.6
0.1
85.7
–
3,884.4
Derivative contracts
5.7
79.4
–
–
85.1
10,790.2
1,619.5
145.7
–
12,555.4
Financial assets at amortised cost:
Cash and cash equivalents
–
–
–
103.8
103.8
Trade and other receivables
–
–
–
68.8
68.8
–
–
–
172.6
172.6
Total assets backing unit-linked liabilities
10,790.2
1,619.5
145.7
172.6
12,728.0
Unit-linked liabilities
11,514.3
1,181.1
–
32.6
12,728.0
2024
Not at
Level 1
Level 2
Level 3
fair value
Total
£m
£m
£m
£m
£m
Assets backing unit-linked liabilities
Financial assets at fair value through profit or loss:
Debt securities
903.0
1,737.1
–
–
2,640.1
Pooled investment vehicles
2,939.9
151.5
52.5
–
3,143.9
Equities
3,355.1
–
93.3
–
3,448.4
Derivative contracts
0.8
26.8
–
–
27.6
7,198.8
1,915.4
145.8
–
9,260.0
Financial assets at amortised cost:
Cash and cash equivalents
–
–
–
148.3
148.3
Trade and other receivables
–
–
–
50.4
50.4
–
–
–
198.7
198.7
Total assets backing unit-linked liabilities
7,198.8
1,915.4
145.8
198.7
9,458.7
Unit-linked liabilities
9,399.8
43.9
–
15.0
9,458.7
The fair value of financial instruments not held at fair value approximates their carrying value. No financial assets were transferred between
levels during the year (2024: none).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
125 Schroders Annual Report and Accounts 2025
15 Unit-linked liabilities and assets backing unit-linked liabilities continued
Movements in financial assets and liabilities categorised as level 3 during the year were:
2025
2024
Assets backing Assets backing
unit-linked Unit-linked unit-linked Unit-linked
liabilities liabilities liabilities liabilities
£m
£m
£m
£m
At 1 January
145.8
–
18.3
–
Exchange translation adjustments
–
–
(0.1)
–
Net loss in the income statement
(8.4)
–
(3.5)
–
Additions
40.9
60.0
138.3
–
Disposals
(32.6)
(60.0)
(7.2)
–
At 31 December
145.7
–
145.8
–
Estimates and judgements – fair value measurements
Each instrument has been categorised within one of three levels in the fair value hierarchy (see note 8). Level 1 investments principally
comprise quoted equities, investments in pooled investment vehicles, sovereign government debt and exchange-traded derivatives.
Level 2 investments principally comprise debt securities such as commercial paper and certificates of deposit. Level 3 investments
principally comprise investments in private equity funds. There are no assumptions that are individually significant or reasonably possible
alternatives that would lead to a material change in the fair value of these assets.
16 Trade and other payables
Trade and other payables include amounts the Group is due to pay in the normal course of business, accruals and deferred income
(being fees received in advance of services provided as well as deferred cash awards), and bullion deposits by customers. Trade and
other payables, other than deferred cash awards and bullion deposits, are recorded initially at fair value and subsequently at amortised
cost (see note 8). Amounts due to be paid by the Group in the normal course of business are made up of creditors and accruals.
Accruals represent costs, including remuneration, that are not yet billed or due for payment, but for which the goods or services have
been received. Deferred cash awards (being deferred employee remuneration payable in cash) and bullion deposits by customers are
recorded at fair value.
2025
2024
Non-current
Current
Total
Non-current
Current
Total
£m
£m
£m
£m
£m
£m
Trade and other payables at amortised cost:
Settlement accounts
–
132.3
132.3
–
155.8
155.8
Trade creditors
–
28.7
28.7
–
21.8
21.8
Social security
22.0
91.7
113.7
22.0
81.0
103.0
Accruals and deferred income
48.4
526.7
575.1
34.0
500.0
534.0
Other payables
1.3
17.6
18.9
2.0
25.2
27.2
71.7
797.0
868.7
58.0
783.8
841.8
Trade and other payables at fair value:
Deferred cash awards
90.5
146.6
237.1
48.5
170.2
218.7
Bullion deposits by customers
–
3.3
3.3
–
2.5
2.5
90.5
149.9
240.4
48.5
172.7
221.2
Total trade and other payables
162.2
946.9
1,109.1
106.5
956.5
1,063.0
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
126 Schroders Annual Report and Accounts 2025
16 Trade and other payables continued
The fair value of trade and other payables held at amortised cost approximates their carrying value. The fair value of bullion deposits by
customers is derived from level 1 inputs (see note 8). The fair value of deferred cash awards is derived from level 1 inputs, being equal to the
fair value of the units in funds to which the employee award is linked.
The Group’s trade and other payables contractually mature in the following time periods:
2025
2024
£m
£m
Less than 1 year
1
946.9
956.5
1 – 5 years
158.9
104.1
More than 5 years
3.3
2.4
162.2
106.5
1,109.1
1,063.0
1. Settlement accounts are generally settled within four working days (2024: four working days) and trade creditors have an average settlement period of 21
working days (2024: 22 working days).
17 Provisions and contingent liabilities
Provisions are liabilities where there is uncertainty over the timing or amount of settlement and therefore they usually require the
use of estimates. They are recognised when three conditions are fulfilled: when the Group has a present obligation (legal or
constructive) as a result of a past event; when it is probable that the Group will incur a loss in order to settle the obligation; and when
a reliable estimate can be made of the amount of the obligation. They are recorded at the Group’s best estimate of the cost of
settling the obligation. Any differences between those estimates and the amounts for which the Group actually becomes liable are
taken to the income statement as additional charges where the Group has underestimated and credits where the Group has
overestimated. Where the estimated timing and settlement are longer term, the amount is discounted using a rate reflecting specific
risks associated with the provision.
Contingent liabilities are potential liabilities, which could include a dependency on events not within the Group’s control, but where
there is a possible obligation. Contingent liabilities are disclosed only where significant and are not included within the statement of
financial position.
Legal,
regulatory
Dilapidations
and other
Total
£m
£m
£m
At 1 January 2025
18.9
41.4
60.3
Exchange translation adjustments
–
0.1
0.1
Utilised
(0.5)
(3.7)
(4.2)
Charged
0.5
25.6
26.1
Released
–
(0.3)
(0.3)
Additions
1.0
–
1.0
At 31 December 2025
19.9
63.1
83.0
In 2025, the Group increased its provision for remedial building works to £54.0 million (31 December 2024: £37.5 million). An associated
insurance receivable of £35.1 million (31 December 2024: £35.0 million) has been recognised within other receivables as it is virtually certain
that a recovery under the insurance policy will be made. The expense and associated reimbursement have been presented net in the Group’s
income statement.
Legal,
regulatory
Dilapidations
and other
Total
£m
£m
£m
Current – 2025
0.2
22.9
23.1
Non-current – 2025
19.7
40.2
59.9
19.9
63.1
83.0
Current – 2024
0.2
7.2
7.4
Non-current – 2024
18.7
34.2
52.9
18.9
41.4
60.3
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
127 Schroders Annual Report and Accounts 2025
17 Provisions and contingent liabilities continued
Dilapidation provisions associated with the Group’s office leases are expected to be settled predominantly in 12 years (2024: 12 years).
See note 12 for further details of the Group’s leases.
Legal obligations associated with the Group’s remedial building works are expected to be settled mainly within five years (2024: five years).
Other legal and regulatory obligations associated with the Group’s business arise from past events that are expected to be settled mainly
within two years (2024: two years).
Estimates and judgements
The timing and amount of settlement of each legal claim or potential claim, regulatory matter and constructive obligation are uncertain.
The Group applies judgement to determine whether a provision is required. The Group performs an assessment of the timing and
amount of each event and reviews this assessment periodically. For some provisions there is greater certainty as the cash flows have
largely been determined. Potential legal claims, regulatory-related costs and other obligations to third parties arise as a consequence
of normal business activity. They can arise from actual or alleged breaches of obligations and may be covered by the Group’s insurance
arrangements, but subject to insurance excess. In certain circumstances, legal and regulatory claims can arise despite there being no
error or breach. The Group’s risk management and compliance procedures are designed to mitigate, but are not able to eliminate, the
risk of losses occurring. Where such claims and costs arise there is often uncertainty over whether a payment will be required and
estimation is required in determining the quantum and timing of that payment. As a result, there is also uncertainty over the timing and
amount of any insurance recovery, although this does not change the likelihood of insurance cover being available, where applicable.
The Group makes periodic assessments of all cash flows, including taking external advice where appropriate, to determine an
appropriate provision. Some matters may be settled through commercial negotiation as well as being covered in whole or in part by the
Group’s insurance arrangements. The Group has made provisions based on the reasonable expectation of likely outflows. The inherent
uncertainty in such matters and the results of negotiations and insurance cover may result in different outcomes.
Judgement has been applied in recognising a provision and associated insurance recoverable for the expected cost of remedial building
works, as required under the terms of the lease for our head office building. Given the nature and extent of the work is still to be
determined based on further technical, legal and commercial analysis, there is uncertainty over the timing, cost and impact. The amount
provided represents our current best estimates of the costs we expect to incur. Judgement has been applied in concluding that the
insurance receivable meets the 'virtually certain' threshold, and the amount recognised reflects our best estimate of the proportion of
costs that are recoverable. Both amounts reflect our current understanding of the nature and extent of the issues, taking into account
the information available to date and third party advice received.
There are no key judgements or estimates that would result in any additional material provisions being recognised or any material
contingent liabilities being disclosed in the financial statements (2024: none). The provisions included in the financial statements at
31 December 2025 are based on estimates of reasonable ranges of likely outcomes, applying assumptions regarding the probability
of payments being due and the settlement value. The aggregate reasonable ranges have been assessed as not materially different
to the carrying values.
18 Derivative contracts
(a) The Group’s use of derivatives
The Group holds derivatives for risk management, client facilitation and within its consolidated structured entities to provide exposure to
market returns. The Group most commonly uses forward foreign exchange contracts, where it agrees to buy or sell specified amounts of
a named currency at a future date, allowing the Group to effectively fix exchange rates so that it can avoid unpredictable gains and
losses on financial instruments in foreign currency assets and liabilities. The Group uses futures, total return swaps and credit default
swaps to hedge market-related gains and losses on its seed investments where the purpose of investing is to help establish a new
product rather than gain additional market exposure.
The Group designates certain derivatives as hedges of a net investment in a foreign operation. In these scenarios, and where relevant
conditions are met, hedge accounting is applied and the Group formally documents the relationship between the derivative and any
hedged item, its risk management objectives and its strategy for undertaking the various hedging transactions. It also documents its
assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are
effective in offsetting changes in the fair value of hedged items. In respect of hedges of a net investment in a foreign operation,
the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised directly in other
comprehensive income. The Group’s net investment hedges are generally fully effective, but any ineffective portion that may arise
is recognised in the income statement. On disposal of the foreign operation, together with the hedged gain or loss, the cumulative
gain or loss on the hedging instrument is transferred to the income statement.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
128 Schroders Annual Report and Accounts 2025
18 Derivative contracts continued
(a) The Group’s use of derivatives continued
Risk management: The Group actively seeks to limit and manage its exposures to risk where those exposures are not desired by the Group.
This may take the form of unwanted exposures to a particular currency, type of interest rate or other price risk. By entering into derivative
contracts, the Group is able to mitigate or eliminate such exposures. The principal risks that the Group faces through such use of derivative
contracts are credit risk and liquidity risk.
Client facilitation: The Group’s Wealth Management entities are involved in providing portfolio management, banking and investment
advisory services, primarily to private clients. In carrying out this business, they transact as agent or as principal in financial assets and
liabilities (including derivatives) in order to facilitate client portfolio requirements. Wealth Management’s policy is to hedge, as appropriate,
market risk on its client facilitation positions. This does not eliminate credit risk.
For details of how the Group manages its exposure to credit risk, see below and note 19.
(b) Derivatives used by the Group
Forwards are contractual obligations to buy or sell foreign currency on a future date at a specified exchange rate. The maximum exposure
to credit risk is represented by the fair value of the contracts.
Currency, interest rate, total return and credit default swaps are commitments to exchange one set of cash flows for another. Swaps result
in an economic exchange of currencies, interest rates or total returns (for example, fixed rate for floating rate) or a combination of these
(i.e. cross-currency interest rate swaps). No exchange of principal takes place, except in the case of certain currency swaps. The Group’s credit
risk represents the potential cost of replacing the swap contracts if counterparties fail to perform their obligations. This risk is monitored on
an ongoing basis with reference to the current fair value, the proportion of the notional amount of the contracts, and the liquidity of the
market. To control the level of credit risk taken, the Group assesses counterparties in accordance with its internal policies and procedures.
Futures contracts are standardised contracts to buy or sell specified assets for an agreed price at a specified future date. Contracts are
negotiated at a futures exchange, which acts as an intermediary between the two parties. For futures contracts, the maximum exposure
to credit risk is represented by the fair value of the contracts.
The fair value of derivative instruments becomes favourable (assets) or unfavourable (liabilities) as a result of fluctuations in market interest
rates, indices, foreign exchange rates and other relevant variables relative to their terms. The aggregate contractual amount of derivative
financial instruments held, the extent to which instruments are favourable or unfavourable, and thus the aggregate fair values of derivative
financial assets and liabilities can fluctuate significantly from time to time. The fair values and contractual maturities are set out below:
2025
2024
Assets
Liabilities
Assets
Liabilities
£m
£m
£m
£m
Equity contracts
0.6
(1.7)
1.2
(0.5)
Forward foreign exchange contracts
3.8
(4.0)
6.8
(11.0)
4.4
(5.7)
8.0
(11.5)
2025
2024
Assets
Liabilities
Assets
Liabilities
£m
£m
£m
£m
Net-settled derivative contracts
1
maturing/repricing
2
in:
Less than 1 year
0.6
(1.7)
1.2
(0.5)
0.6
(1.7)
1.2
(0.5)
Gross-settled derivatives
3
maturing/repricing
2
in less than 1 year:
Gross inflows
594.1
598.6
645.6
529.6
Gross outflows
(590.4)
(602.5)
(638.6)
(540.8)
Difference between future contractual cash flows and fair value
0.1
(0.1)
(0.2)
0.2
3.8
(4.0)
6.8
(11.0)
4.4
(5.7)
8.0
(11.5)
1. Equity contracts.
2. Whichever is earlier.
3. Forward foreign exchange contracts.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
129 Schroders Annual Report and Accounts 2025
19 Financial instrument risk management
The Group Capital Committee is responsible for the management of the Group’s capital and sets objectives for how it is deployed.
This note explains how the Group manages its capital, setting out the nature of the risks the Group faces as a result of its operations,
and how these risks are quantified and managed.
The Group is exposed to different forms of financial instrument risk including: (i) the risk that money owed to the Group will not be
received (credit risk); (ii) the risk that the Group may not have sufficient cash available to pay its creditors as they fall due (liquidity risk);
and (iii) the risk that the value of assets will fluctuate as a result of movements in factors such as market prices, interest rates and foreign
exchange rates (market risk). The management of such risks is embedded in managerial responsibilities fundamental to the wellbeing of
the Group.
The Group’s primary exposure to financial instrument risk is derived from the financial instruments that it holds as principal. In addition,
due to the nature of the business, the Group’s exposure extends to the impact on investment management and other fees that
are determined on the basis of a percentage of AUM and are therefore impacted by the financial instrument risk exposure of our
clients – the secondary exposure. This note deals only with the direct or primary exposure of the risks from the Group’s holding of
financial instruments.
Disclosures relating to unit-linked liabilities and assets backing unit-linked liabilities are included in note 15.
(a) Capital
The Group is supervised in the United Kingdom (UK) on a consolidated basis by the Prudential Regulation Authority (PRA). The PRA sets
capital requirements for the Group and monitors the Group’s capital adequacy on an ongoing basis. Regulated subsidiaries within the
Group are supervised by their local regulators who set and monitor local capital adequacy requirements.
The Group’s approach to capital management is to maintain a strong capital position to enable it to invest in the future of the Group, in
line with its strategy, and to manage the risks inherent in conducting its business. Capital management is an important part of the Group’s
risk management framework and is underpinned by the Internal Capital Adequacy Assessment Process (ICAAP). The ICAAP considers the
relevant current and future risks to the business and the capital considered necessary to support these risks. The Group actively monitors
its capital base to ensure it maintains sufficient and appropriate capital resources to cover the relevant risks to the business and to meet
consolidated and local regulatory and working capital requirements. Capital held by the Group is also available to absorb potential losses
arising from financial instrument risk.
At 31 December 2025, the Group had total regulatory own funds of £2,569 million (2024: £2,396 million), consisting of Common Equity
Tier 1 and Tier 2 capital (2024: same). The Group’s overall regulatory capital requirement was £1,379 million (2024: £1,477 million).
Therefore, at 31 December 2025 the Group had surplus capital of £1,190 million (2024: £919 million). The Group’s capital ratio was 24.2%
(2024: 20.9%).
The Group’s overall capital requirement comprises a Total Capital Requirement (TCR), which was £1,005 million at 31 December 2025
(2024: £1,085 million), and a capital requirement in respect of regulatory buffers and our insurance companies, which was £374 million at
31 December 2025 (2024: £392 million). The TCR is the minimum amount of capital that the Group is required to maintain at all times.
Further information on the Group’s capital position is included in the Group’s Pillar 3 disclosures.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
130 Schroders Annual Report and Accounts 2025
19 Financial instrument risk management continued
(b) Breakdown of assets and liabilities
The tables below provide a detailed breakdown of the Group’s assets and liabilities in accordance with IFRS 9:
2025
Financial assets Financial
at fair value Liabilities to instruments
Financial through other purchase at fair value
instruments at comprehensive subsidiary through Non-financial
amortised cost income shares
profit or loss
1
instruments
Total
£m
£m
£m
£m
£m
£m
Assets
Cash and cash equivalents
4,207.8
–
–
368.8
–
4,576.6
Trade and other receivables
951.6
–
–
–
161.7
1,113.3
Financial assets:
Loans and advances to banks
202.8
–
–
–
–
202.8
Loans and advances to clients
393.5
–
–
–
–
393.5
Debt securities
352.0
1,150.4
–
146.0
–
1,648.4
Pooled investment vehicles
–
–
–
1,011.8
–
1,011.8
Equities
–
–
–
149.0
–
149.0
Derivatives
–
–
–
4.4
–
4.4
Associates and joint ventures
–
–
–
–
376.1
376.1
Property, plant and equipment
–
–
–
–
443.5
443.5
Goodwill and intangible assets
–
–
–
–
1,715.8
1,715.8
Deferred tax
–
–
–
–
123.4
123.4
Retirement benefit scheme surplus
–
–
–
–
126.1
126.1
Assets backing unit-linked liabilities
172.6
–
–
12,555.4
–
12,728.0
Total assets
6,280.3
1,150.4
–
14,235.4
2,946.6
24,612.7
Liabilities
Trade and other payables
755.0
–
–
237.1
117.0
1,109.1
Financial liabilities
5,164.9
–
66.4
284.4
–
5,515.7
Current tax
–
–
–
–
35.2
35.2
Issued debt
256.1
–
–
–
–
256.1
Lease liabilities
317.5
–
–
–
–
317.5
Provisions
–
–
–
–
83.0
83.0
Deferred tax
–
–
–
–
104.3
104.3
Retirement benefit scheme deficits
–
–
–
–
7.4
7.4
Unit-linked liabilities
32.6
–
–
12,695.4
–
12,728.0
Total liabilities
6,526.1
–
66.4
13,216.9
346.9
20,156.3
Capital
4,456.4
1. Financial assets at fair value through profit or loss are mandatorily measured at fair value through profit or loss. Cash and cash equivalents at fair value
through profit or loss are interests in money market funds and are all level 1. Financial liabilities at fair value through profit or loss include £13,159.6 million of
liabilities that are designated at fair value through profit or loss and £57.3 million that are mandatorily measured at fair value through profit or loss.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
131 Schroders Annual Report and Accounts 2025
19 Financial instrument risk management continued
(b) Breakdown of assets and liabilities continued
2024
Financial assets Financial
at fair value Liabilities to instruments
Financial through other purchase at fair value
instruments at comprehensive subsidiary through Non-financial
amortised cost income shares
profit or loss
1
instruments
Total
£m
£m
£m
£m
£m
£m
Assets
Cash and cash equivalents
3,703.8
–
–
362.6
–
4,066.4
Trade and other receivables
912.6
–
–
–
113.8
1,026.4
Financial assets:
Loans and advances to banks
286.5
–
–
–
–
286.5
Loans and advances to clients
390.0
–
–
–
–
390.0
Debt securities
311.8
1,115.2
–
53.9
–
1,480.9
Pooled investment vehicles
–
–
–
889.2
–
889.2
Equities
–
–
–
173.3
–
173.3
Derivatives
–
–
–
8.0
–
8.0
Associates and joint ventures
–
–
–
–
550.0
550.0
Property, plant and equipment
–
–
–
–
488.6
488.6
Goodwill and intangible assets
–
–
–
–
1,840.5
1,840.5
Deferred tax
–
–
–
–
160.4
160.4
Retirement benefit scheme surplus
–
–
–
–
131.0
131.0
Assets backing unit-linked liabilities
198.7
–
–
9,260.0
–
9,458.7
Total assets
5,803.4
1,115.2
–
10,747.0
3,284.3
20,949.9
Liabilities
Trade and other payables
738.8
–
–
218.7
105.5
1,063.0
Financial liabilities
4,755.1
–
140.7
217.8
–
5,113.6
Current tax
–
–
–
–
29.0
29.0
Issued debt
256.0
–
–
–
–
256.0
Lease liabilities
345.7
–
–
–
–
345.7
Provisions
–
–
–
–
60.3
60.3
Deferred tax
–
–
–
–
120.3
120.3
Retirement benefit scheme deficits
–
–
–
–
7.9
7.9
Unit-linked liabilities
15.0
–
–
9,443.7
–
9,458.7
Total liabilities
6,110.6
–
140.7
9,880.2
323.0
16,454.5
Capital
4,495.4
1. Financial assets at fair value through profit or loss are mandatorily measured at fair value through profit or loss. Cash and cash equivalents at fair value
through profit or loss are interests in money market funds and are all level 1. Financial liabilities at fair value through profit or loss include £9,788.1 million of
liabilities that are designated at fair value through profit or loss and £92.3 million that are mandatorily measured at fair value through profit or loss.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
132 Schroders Annual Report and Accounts 2025
19 Financial instrument risk management continued
(c) Credit risk, liquidity risk and market risk
The Group is exposed to credit, liquidity and market risk as a result of the financial instruments it holds. Settlement of financial instruments
(on both a principal and agency basis) also gives rise to operational risk. The Group’s risk management framework is critical for the effective
management of these risks and considerable resources are dedicated to this area. Risk management is the direct responsibility of the
Board, with responsibility for oversight delegated to the Audit and Risk Committee. The Group applies the three lines of defence model to
risk management, which includes financial instrument risk. More details on the risk management framework and approach are set out in the
Risk Management report and the Audit and Risk Committee report on pages 25 and 53 respectively.
(i) Credit risk
Credit risk is the risk that a counterparty to a financial instrument, loan or commitment will cause the Group financial loss by failing to
discharge its obligations. For this purpose, the impact on fair value of a credit loss arising from credit spread price changes in a portfolio
of investments is excluded. This risk is addressed within pricing risk.
The Group has exposure to credit risk from its normal activities where it is exposed to the risk that a counterparty will be unable to pay
amounts when due. The Group carefully manages its exposure to credit risk by monitoring exposures to individual counterparties and
sectors, monitoring counterparties’ creditworthiness, taking collateral and reducing settlement risk where possible and approving lending
policies that specify the type of acceptable collateral and lending margins. The Group’s maximum exposure to credit risk is represented by
the gross carrying value of its financial assets.
Externally published credit ratings are indicators of the level of credit risk associated with a counterparty. A breakdown of the Group’s relevant
financial assets held with rated and unrated counterparties is set out below:
Cash and cash equivalents
Loans and advances to banks
Debt securities
2025
2024
2025
2024
2025
2024
£m
£m
£m
£m
£m
£m
Credit rating:
AAA
159.7
191.0
–
–
247.0
212.4
AA+
77.9
–
–
–
127.3
127.6
AA
93.9
84.5
–
–
–
10.3
AA-
2,963.1
2,220.2
66.9
66.6
816.7
819.6
A+
751.7
1,264.3
26.1
41.8
219.1
188.3
A
408.6
175.1
30.4
137.1
75.3
32.9
A-
103.7
117.8
79.4
41.0
37.9
25.1
BBB+ and lower
11.8
8.4
–
–
100.3
22.3
Not rated
6.2
5.1
–
–
24.8
42.4
4,576.6
4,066.4
202.8
286.5
1,648.4
1,480.9
Expected credit losses are calculated on all of the Group’s financial assets that are measured at amortised cost and all debt instruments that
are measured at fair value through other comprehensive income. Factors considered in determining whether a default has taken place
include how many days past the due date a payment is, deterioration in the credit quality of a counterparty, and knowledge of specific events
that could influence a counterparty’s ability to pay.
A three-stage model is used for calculating expected credit losses, which requires financial assets to be assessed as:
• Performing (stage 1) – financial assets where there has been no significant increase in credit risk since initial recognition;
• Under-performing (stage 2) – financial assets where there has been a significant increase in credit risk since initial recognition,
but not credit-impaired; or,
• Non-performing (stage 3) – financial assets that are credit-impaired.
For financial assets in stage 1, expected credit losses are calculated based on the credit losses that are expected to be incurred over the
following 12-month period. For financial assets in stages 2 and 3, expected credit losses are calculated based on credit losses expected to
be incurred over the life of the instrument. The Group applies the simplified approach to calculate expected credit losses for trade and other
receivables. Under this approach, instruments are not categorised into three stages and expected credit losses are calculated based on the
life of the instrument.
Wealth Management activities
All client credit requests are presented to the relevant Wealth Management approval authorities and counterparty exposures are monitored
daily against limits. Loans, overdrafts and advances to clients, as well as certain derivative positions, are secured on a range of assets
including real estate (both residential and commercial), cash, client portfolios and investment bonds.
The Group does not usually provide loans, overdrafts or advances to clients on an unsecured basis. Where disposal of non-cash collateral is
required, in the event of default, the terms and conditions relevant to the specific contract and country will apply. Portfolios held as collateral
are marked to market daily and positions compared to clients’ exposures. Credit limits are set following an assessment of the market value
and lending value of each type of collateral, depending on the perceived risk associated with the collateral. Clients are contacted if these limits
are expected to be or are breached, or if collateral is not sufficient to cover the outstanding exposure.
The Group also holds collateral on some short-term advances to banks through reverse repurchase agreements. The collateral accepted
includes certain investment-grade securities that can be sold or rehypothecated without default of the provider. At 31 December 2025, the
fair value of collateral that could be sold or rehypothecated but had not been, relating solely to these arrangements, was £1,068.9 million
(2024: £1,526.6 million).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
133 Schroders Annual Report and Accounts 2025
19 Financial instrument risk management continued
(c) Credit risk, liquidity risk and market risk continued
Policies governing counterparty and market risk limits are established and monitored by the relevant Wealth Management asset and liability
management committees. All instruments held within the Wealth Management treasury book have an investment-grade credit rating.
Wealth Management adopts a conservative approach to its treasury investments, placing funds with, or purchasing debt securities issued by,
UK and overseas banks and corporates, central banks, supranational banks and sovereigns.
The ECL provision on financial assets at amortised cost within the Wealth Management entities at 31 December 2025 was £5.6 million (2024:
£2.2 million). There was one (2024: one) non-performing (stage 3) client loan of £7.3 million (2024: £6.9 million) resulting in an ECL provision
of £5.1 million at 31 December 2025 (2024: £1.8 million). All other financial assets at amortised cost (excluding trade and other receivables to
which the three-stage model is not applied) were performing (stage 1) (2024: same).
The ECL provision on financial assets at fair value through other comprehensive income within the Wealth Management entities
at 31 December 2025 was £0.4 million (2024: £0.4 million). All financial assets at fair value through other comprehensive income were
performing (stage 1) (2024: same).
Other activities
Fee debtors and other receivables arise from the Group’s asset management activities and amounts are monitored regularly.
Historically, default levels have been insignificant and, unless a client has withdrawn its funds, there is an ongoing relationship between
the Group and the client.
Fee debtors past due but not in default at 31 December 2025 were £49.3 million (2024: £54.6 million), the majority of which were less than 90
days past due (2024: less than 90 days).
The Group seeks to manage its exposure to credit risk arising from debt securities and derivatives within the investment portfolio by
adopting a conservative approach and through ongoing credit analysis, and it may hedge some of the credit risk with credit default swaps.
Corporate bond portfolios, when in place, have an investment-grade mandate, and exposure to sub-investment-grade debt is low.
Most derivative positions, other than forward foreign exchange contracts and total return swaps, are taken in exchange-traded securities
where credit risk is minimal. Forward foreign exchange positions generally have a maturity between one and three months.
The Group’s cash and cash equivalents in the non-Wealth Management entities are held primarily in current accounts, on deposit with well-
rated banks, or invested in money market or similar funds.
The ECL provision on financial assets at amortised cost within non-Wealth Management entities at 31 December 2025 was £22.5 million
(2024: £1.6 million). Debt securities at amortised cost included £22.3 million of a previously under-performing (stage 2) financial asset that
was reclassified to non-performing (stage 3) during the year, resulting in an ECL provision of £22.3 million at 31 December 2025 (2024: £1.4
million). All other financial assets at amortised cost (excluding trade and other receivables to which the three-stage model is not applied) were
performing (stage 1) (2024: same).
(ii) Liquidity risk
Liquidity risk is the risk that the Group cannot meet its obligations as they fall due or can only do so at a cost. The Group has a clearly defined
liquidity risk management framework in place in the form of a Consolidated Group Internal Liquidity Adequacy Assessment Process (ILAAP).
The Group policy is that its subsidiaries should trade solvently, comply with regulatory liquidity requirements and have access to adequate
liquidity for all activities undertaken in the normal course of business. As part of its ILAAP, the Group performs stress testing to confirm that
sufficient liquidity is available to cover severe but plausible stress events.
Wealth Management activities
The principal liquidity risk in the Group’s Wealth Management business arises from its banking activities, where the timing of cash flows from
liabilities relating to client accounts can be impacted by client action. The Group’s liquidity policy aims to maintain sufficient liquidity within the
relevant entities to meet regulatory and prudential requirements, and to cover cash flow imbalances and fluctuations in funding and the
timely repayment of funds to depositors.
Liquidity positions are actively monitored against both regulatory and internal limits, and cash flows are managed to ensure sufficient liquidity
is available to cover potential risks.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
134 Schroders Annual Report and Accounts 2025
19 Financial instrument risk management continued
(c) Credit risk, liquidity risk and market risk continued
(ii) Liquidity risk continued
The contractual maturity of Wealth Management financial assets and liabilities is set out below:
2025
Less than 1 year
1 to 5 years
Total
£m
£m
£m
Assets
Cash and cash equivalents
3,550.0
–
3,550.0
Loans and advances to banks
200.3
–
200.3
Loans and advances to clients
157.4
234.4
391.8
Debt securities
1,084.1
406.0
1,490.1
Derivative contracts
1.3
–
1.3
4,993.1
640.4
5,633.5
Liabilities
Client accounts
5,131.9
–
5,131.9
Deposits by banks
33.1
–
33.1
Derivative contracts
1.2
–
1.2
5,166.2
–
5,166.2
Undrawn loan facilities
5.0
42.8
47.8
Cumulative gap
(178.1)
419.5
419.5
2024
Less than 1 year 1 to 5 years Total
£m £m £m
Assets
Cash and cash equivalents
3,246.4
–
3,246.4
Loans and advances to banks
166.3
–
166.3
Loans and advances to clients
172.2
216.5
388.7
Debt securities
1,117.5
275.5
1,393.0
Derivative contracts
4.1
–
4.1
4,706.5
492.0
5,198.5
Liabilities
Client accounts
4,724.8
–
4,724.8
Deposits by banks
30.1
–
30.1
Derivative contracts
3.8
–
3.8
4,758.7
–
4,758.7
Undrawn loan facilities
9.4
29.9
39.3
Cumulative gap (61.6) 400.5 400.5
Other activities
The Group’s exposure to liquidity risk outside its Wealth Management activities is low. Excluding the Life Company and consolidated funds,
the Asset Management segment, together with the Group’s capital and treasury management activities, held cash and cash equivalents of
£999.7 million (2024: £820.0 million). For contractual maturities of non-Wealth Management financial liabilities, refer to the respective
liability notes.
The Group has a committed revolving credit facility of £850.0 million (2024: £850.0 million), which expires on 7 November 2029. No money
was drawn down under the facility during 2025 (2024: none).
(iii) Market risk
Market risk is the risk that the value of assets will fluctuate as a result of movements in factors such as market prices, interest rates and
foreign exchange rates.
Pricing risk
Pricing risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices other
than those arising from interest rate risk or currency risk.
In respect of financial instrument risk, the Group’s exposure to pricing risk is principally through seed investments, co-investments and other
investments, including investments in funds hedging deferred employee compensation in the form of fund awards.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
135 Schroders Annual Report and Accounts 2025
19 Financial instrument risk management continued
(c) Credit risk, liquidity risk and market risk continued
(iii) Market risk continued
Pricing risk continued
The Group does not hedge exposures to pricing risk except in relation to seed investments, where it is practical to do so, and in respect of
deferred employee compensation awards, where these can be matched by interests in funds managed by the Group. Where financial
instruments are held to hedge deferred compensation awards, movements in the fair value of the asset are normally offset by changes in
the amounts payable to employees (see note 3).
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market interest rates.
Wealth Management activities
In Wealth Management, interest rate risk is monitored on a daily basis against policies and limits set by the relevant risk committee.
Interest rate risk is managed within set limits by matching asset and liability positions and through the use of interest rate swaps.
Sensitivity-based and stress-based models are used for monitoring interest rate risk. These models assess the impact of a prescribed shift
in interest rates and the potential impact of severe but plausible stress scenarios.
Other activities
Cash held by the other operating companies is not normally expected to be placed on deposit for longer than three months and is not
exposed to significant interest rate risk.
Foreign exchange risk
Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in foreign
exchange rates.
Wealth Management activities
In Wealth Management, foreign exchange risk is monitored each day against policies and limits set by the relevant risk committees.
Foreign exchange risk is managed within set limits by the treasury departments using spot, forward and foreign exchange swap contracts.
Other activities
The Group’s policy in relation to foreign exchange risks arising from revenue, expenditure and capital currency exposure from its Asset
Management activities is generally not to hedge. The Group’s revenue is earned and expenditure incurred in many currencies and the
resulting exposure is considered to be a normal part of the Group’s business activities.
The Group also has exposure to foreign currency on financial instruments not held in the functional currency of entities which resulted in a
£3.2 million gain in the income statement (2024: £21.4 million gain) and exposure arising from net investments in foreign operations which
resulted in a £9.4 million loss in other comprehensive income (2024: £54.4 million loss). The Group uses forward foreign exchange contracts
with third parties to mitigate some of these exposures. The gain or loss on these contracts is included in the income statement or statement of
other comprehensive income, as appropriate. The use of such instruments is subject to approval by the Group Capital Committee.
The sensitivities to market risk at 31 December are estimated as follows:
2025
2024
A reasonable change A reasonable change
in the variable within Increase/(decrease) in the variable within Increase/(decrease)
the next calendar year in post-tax profit the next calendar year in post-tax profit
Variable
1
%
£m
%
£m
Interest rates
2
-increase
0.25
2
0.25
1
-decrease
(0.5)
(3)
(0.5)
(3)
US dollar against sterling
-strengthen
10
3
10
2
-weaken
(10)
(3)
(10)
(1)
Euro against sterling
-strengthen
10
2
10
2
-weaken
(10)
(4)
(10)
(2)
US dollar against Euro
-strengthen
10
4
10
4
-weaken
(10)
(3)
(10)
(3)
FTSE All-Share Index
3
-increase
20
27
20
34
-decrease
(20)
(27)
(20)
(34)
1. The underlying assumption is that there is one variable increase/decrease with all other variables held constant.
2. Assumes that the fair value of assets and liabilities will not be affected by a change in interest rates.
3. Assumes that changes in the FTSE All-Share Index correlate to changes in the fair value of the Group’s equity investments.
The reasonable changes in variables will have no impact on any other components of equity. These sensitivities concern only the
direct impact on financial instruments and exclude indirect impacts on fee income and certain costs that may be affected by changes
in the variable. The changes used in the sensitivity analysis were provided by the Group’s Global Economics team, which determines
reasonable assumptions.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
136 Schroders Annual Report and Accounts 2025
20 Share capital and share premium
Share capital primarily comprises the number of issued ordinary shares in Schroders plc multiplied by their nominal value of 20 pence
each (2024: 20 pence each). Where the proceeds received on issue of the shares is greater than the nominal value the difference is
recorded in share premium. The Company has authority to buyback ordinary shares, restricted by minimum and maximum price caps
and a maximum number of shares. Any ordinary shares bought back may be cancelled or held in treasury. Unless renewed, authority
will expire at the Company’s next Annual General Meeting, or on 30 June 2026 if earlier.
Number of Total ordinary Share
shares shares premium
Millions
£m
£m
At 1 January 2025
1,612.1
322.4
84.3
At 31 December 2025
1,612.1
322.4
84.3
Number of Total ordinary Share
shares shares premium
Millions
£m
£m
At 1 January 2024
1,612.1
322.4
84.3
At 31 December 2024
1,612.1
322.4
84.3
21 Own shares
Own shares are recorded by the Group when ordinary shares are acquired by the Company or acquired through employee benefit
trusts. This enables the Group to hold some of its shares to settle option exercises or for other permitted purposes. Own shares are
held at cost and their purchase reduces the Group’s net assets by the amount spent. When shares vest unconditionally or are cancelled,
they are transferred from own shares to the profit and loss reserve at their weighted average cost.
Movements in own shares during the year were as follows:
2025
2024
£m
£m
At 1 January
159.9
172.1
Own shares purchased
11.5
59.8
Awards vested
(72.9)
(72.0)
At 31 December
98.5
159.9
During the year, 3.0 million (2024: 10.4 million) own shares were purchased and held for hedging share-based awards. In 2024, 6.4 million
shares were purchased and held in treasury. During the year, 5.0 million (2024: nil) of the shares held in treasury were transferred to
employee benefit trusts. 16.9 million shares (2024: 15.0 million shares) awarded to employees vested in the period and were transferred out
of own shares.
The total number of shares in the Company held within the Group’s employee benefit trusts and in treasury comprise:
2025
2024
Number of Number of Number of Number of
vested unvested vested unvested
shares shares Total shares shares Total
Millions
Millions
Millions
Millions
Millions
Millions
Total ordinary shares
23.0
23.6
46.6
22.0
37.5
59.5
2025
2024
Vested
Unvested
Vested Unvested
shares
shares
Total shares
shares
Total
£m
£m
£m
£m
£m
£m
Total ordinary shares
Cost
107.8
98.5
206.3
103.1
159.9
263.0
Fair value
93.7
96.0
189.7
71.4
121.2
192.6
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
137 Schroders Annual Report and Accounts 2025
22 Reconciliation of net cash from operating activities
This note should be read in conjunction with the cash flow statement. It provides a reconciliation to show how profit before tax,
which is based on accounting rules, translates to cash flows.
2025
2024
1
£m
£m
Profit before tax
673.8
558.1
Adjustments for income statement non-cash movements:
Depreciation of property, plant and equipment and amortisation of intangible assets
182.2
191.1
Net gain on financial instruments
(35.8)
(18.1)
Impairment of goodwill, intangible assets and associates and joint ventures
55.0
8.0
Gain on disposal of joint venture
(113.3)
–
Share-based payments
31.3
30.4
Net charge for provisions
25.3
38.8
Other non-cash movements
2
(32.6)
(42.6)
112.1
207.6
Adjustments for which the cash effects are investing or financing activities:
Interest income
(45.1)
(44.2)
Interest expense
23.4
17.7
Share of profit of associates and joint ventures after amortisation
(51.2)
(42.1)
(72.9)
(68.6)
Adjustments for statement of financial position movements:
(Increase)/decrease in loans and advances within Wealth Management
(33.2)
271.3
Increase in trade and other receivables
(98.9)
(88.0)
Increase in deposits and client accounts within Wealth Management
407.3
576.3
Increase/(decrease) in trade and other payables, other financial liabilities and provisions
33.8
(26.4)
309.0
733.2
Adjustments for Life Company and consolidated pooled investment vehicles movements:
Net (increase)/decrease in financial assets backing unit-linked liabilities
(3,313.8)
244.6
Net increase/(decrease) in unit-linked liabilities
3,269.3
(549.4)
Net increase in cash within consolidated pooled investment vehicles
14.4
6.7
(30.1)
(298.1)
Tax paid
(77.5)
(84.0)
Net cash from operating activities
914.4
1,048.2
1. The 2024 comparatives have been re-presented (see Presentational changes on page 151).
2. Other non-cash movements primarily consist of discount unwind within the net interest margin and exchange translation adjustments, before hedging activities.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
138 Schroders Annual Report and Accounts 2025
23 Retirement benefit obligations
The Group has two principal types of pension benefit for employees: defined benefit (DB), where the Group has an obligation to provide
participating employees with pension payments that represent a specified percentage of their final salary for each year of service, and
defined contribution (DC), where the Group’s contribution to an employee’s pension is measured as, and limited to, a specified percentage
of salary.
Accounting for DB schemes requires an assessment of the likely quantum of future pension payments to be made. If ring-fenced assets are
held specifically to meet this cost, the scheme is funded, and if not, it is unfunded. The Group periodically reviews its funded DB schemes
using actuarial specialists to assess whether it is on course to meet the expected pension payments that current and former employees are,
or will be, entitled to. In the case of a projected shortfall, a plan must be formulated to reverse the deficit.
The income statement charge or credit represents the sum of pension entitlements earned by employees in the period, plus a notional
net interest charge (if the scheme is in deficit) or income (if it is in surplus) based on the market yields on high-quality corporate bonds.
Experience differences, principally the difference between actual investment returns and the notional interest amount, as well as actuarial
changes in estimating the present value of future liabilities, are recorded in other comprehensive income.
Assets or liabilities recognised in the statement of financial position represent the differences between the fair value of plan assets (if any)
and the actuarially determined estimates of the present value of future liabilities. The Group closed its largest DB scheme to future accrual
on 30 April 2011, although it still operates some small unfunded schemes overseas. This means that no future service will contribute to the
closed scheme member benefits but those members continue to have the benefits determined by the Scheme rules as at 30 April 2011.
The Group’s exposure to funding DC pension schemes is limited to the contributions it has agreed to make. These contributions generally
stop when employment ceases. The income statement charge represents the contributions the Group has agreed to make into employees’
pension schemes in that year.
The disclosures within this note are provided mainly in respect of the principal DB scheme, which is the DB section of the funded Schroders
Retirement Benefits Scheme (the Scheme).
The income statement charge for retirement benefit costs is as follows:
2025
2024
£m
£m
Pension costs – defined contribution plans
(70.9)
(77.8)
Pension credit – defined benefit plans
2.8
2.9
Other post-employment benefits
(0.2)
(0.2)
(68.3)
(75.1)
(a) Profile of the Scheme
The Scheme is administered by a trustee company, Schroder Pension Trustee Limited (the Trustee). The board of the Trustee comprises
an independent chairman, three directors appointed by the employer and two directors elected by the Scheme members. The Trustee is
required by law to act in the interest of all relevant beneficiaries and is responsible for setting the investment strategy and for the day-to-day
administration of the benefits. The Trustee’s investment committee comprises five of the Trustee directors and two representatives of the
Group. This committee, which reports to the Trustee board, is responsible for making investment strategy recommendations to the board
of the Trustee and for monitoring the performance of the investment manager.
Under the Scheme, employees are entitled to annual pensions on retirement based on a specified percentage of their final pensionable
salary or, in the case of active members at 30 April 2011 (the date the DB section of the Scheme closed for future accrual), actual pensionable
salaries at that date, for each year of service. These benefits are adjusted for the effects of inflation, subject to a cap of 2.5% for pensions
accrued after 12 August 2007 and 5.0% for pensions accrued before that date.
At 31 December 2025, there were no active members in the DB section (2024: nil) and 2,292 active members in the DC section (2024: 2,528).
The weighted average duration of the Scheme’s DB obligation is 11 years (2024: 11 years). The Group expects that the plan liabilities will settle
gradually over time until all members have left the plan. On termination of the Scheme, any assets that remain after the Trustee has settled
the Scheme’s liabilities will be returned to the Group.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
139 Schroders Annual Report and Accounts 2025
23 Retirement benefit obligations continued
(a) Profile of the Scheme (continued)
Membership details of the DB section of the Scheme at 31 December are as follows:
2025
2024
Number of deferred members
810
884
Total deferred pensions (at date of leaving Scheme)
£6.9m per annum
£5.9m per annum
Average age (deferred)
58
57
Number of pensioners
1,186
1,137
Average age (pensioners)
71
71
Total pensions in payment
£27.2m per annum
£26.0m per annum
(b) Funding requirements
The last completed triennial valuation of the Scheme was carried out at 31 December 2023. The funding level at that date was 115% on the
technical provisions basis and no contribution to the Scheme was required. The next triennial valuation is due at 31 December 2026 and will
be performed in 2027.
(c) Risks of the Scheme
The Company and the Trustee have agreed a long-term strategy for reducing investment risk as and when appropriate. This includes
an asset-liability matching policy that aims to reduce the volatility of the funding level of the Scheme by investing in assets that perform
in line with the liabilities of the Scheme.
The most significant risks to which the Scheme exposes the Group are:
Asset volatility
The liabilities are calculated using a discount rate set with reference to bond yields. If assets underperform this yield, this will reduce the
surplus or may create a deficit. The Group manages this risk through a diversified investment strategy, with 64% (2024: 64%) of Scheme
assets held in a liability matching portfolio and the remainder split across semi-liquid credit, liquid growth and credit, and illiquid growth
portfolios. This asset mix is designed to provide returns that match or exceed the unwinding of the discount rate in the long term, but that
can create volatility and risk in the short term. The allocation to growth assets is monitored to ensure it remains appropriate given the
Scheme’s long-term objectives.
Credit risk
The assets of the Scheme include liability-driven investments (LDIs) and other fixed income instruments that expose the Group to credit risk.
A significant amount of this exposure is to the UK Government as a result of holding gilts and bonds guaranteed by the UK Government.
Other instruments held include derivatives, which are collateralised daily to cover unrealised gains or losses. The minimum rating for any
derivatives counterparty is BBB.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
140 Schroders Annual Report and Accounts 2025
23 Retirement benefit obligations continued
(c) Risks of the Scheme continued
Interest rate risk
A decrease in bond yields will increase the value placed on the Scheme’s liabilities for accounting purposes, although this should be partially
offset by an increase in the value of the Scheme’s liability matching portfolio, which comprises gilts, corporate bonds and other LDI
instruments. The liability matching investments have been designed to mitigate interest rate exposures measured on a funding rather than
an accounting basis. One of the principal differences between these bases is that the liability under the funding basis is calculated using a
discount rate set with reference to gilt yields; the latter uses corporate bond yields. As a result, the liability matching portfolio hedges against
interest rate risk by purchasing instruments that seek to replicate movements in gilt yields rather than corporate bond yields. Movements in
the different types of instrument are not exactly correlated, and it is therefore likely that a tracking error can arise when assessing whether
the liability matching portfolio has provided an effective hedge against interest rate risk on an accounting basis. At 31 December 2025,
the liability matching portfolio was designed to mitigate 95% (2024: 95%) of the Scheme’s exposure to changes in gilt yields.
Inflation risk
A significant proportion of the Scheme’s benefit obligations are linked to inflation and higher inflation will lead to higher liabilities. However,
in most cases, caps on the level of inflationary increases are in place. The majority of the growth assets are either unaffected by or not closely
correlated with inflation, which means that an increase in inflation will also decrease any Scheme surplus. The liability matching portfolio
includes instruments such as index-linked gilts to provide protection against inflation risk. At 31 December 2025, the liability matching
portfolio was designed to mitigate 95% (2024: 95%) of the Scheme’s exposure to inflation risk.
Life expectancy
The majority of the Scheme’s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an
increase in the liability.
(d) Reporting at 31 December
The principal financial assumptions used for the Scheme are:
2025
2024
%
%
Discount rate
5.5
5.4
RPI inflation rate
2.8
3.1
CPI inflation rate
2.2
2.5
Future pension increases (for benefits earned before 13 August 2007)
2.7
2.9
Future pension increases (for benefits earned after 13 August 2007)
1.9
2.0
Average number of years a current pensioner is expected to live beyond age 60:
Years
Years
Men
28
27
Women
29
29
Average number of years future pensioners currently aged 45 are expected to live beyond age 60:
Years
Years
Men
29
28
Women
30
30
Net interest income is determined by applying the discount rate to the opening net surplus in the Scheme. The Group determines the
appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of estimated future
cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers
the interest rates of high-quality, long-dated corporate bonds that are denominated in the currency in which the benefits will be paid.
Estimates and judgements
The Group estimates the carrying value of the Scheme by applying judgement to determine the assumptions used to calculate the
valuation of the pension obligation using member data and applying the Scheme rules. The Scheme assets are mainly quoted in an
active market. The sensitivity to those assumptions is set out below. The most significant judgemental assumption relates to mortality
rates, which are inherently uncertain. The Group’s mortality assumptions are based on standard mortality tables with Continuous
Mortality Investigation core projection factors and a long-term rate of mortality improvement of 1.0% (2024: 1.0%) per annum. An
additional adjustment, an “A parameter” set to 0.25% (2024: 0.25%) per annum, allows for the typically higher rate of mortality
improvement among members of the Scheme compared with general population statistics. The latest base mortality tables have been
adopted with no scaling (2024: nil) following a Scheme-specific review of the membership data.
The Group reviews its assumptions annually in conjunction with its independent actuaries and considers this adjustment appropriate
given the geographic and demographic profile of Scheme members. Other assumptions for pension obligations are based in part on
current market conditions.
The financial impact of the Scheme on the Group has been determined by independent qualified actuaries, Aon Solutions UK Limited, and is
based on an assessment of the Scheme at 31 December 2025.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
141 Schroders Annual Report and Accounts 2025
23 Retirement benefit obligations continued
(d) Reporting at 31 December continued
The amounts recognised in the income statement are:
2025
2024
£m
£m
Interest income on Scheme assets
(33.7)
(31.4)
Interest cost on Scheme liabilities
26.9
25.2
Net interest income recognised in the income statement in respect of the Scheme
(6.8)
(6.2)
Other charges in respect of defined benefit schemes
4.0
3.3
Total defined benefit schemes income statement credit
(2.8)
(2.9)
The amounts recognised in the statement of comprehensive income are:
2025
2024
£m
£m
Losses on Scheme assets in excess of that recognised in interest income
6.5
64.1
Actuarial losses/(gains) due to change in demographic assumptions
3.7
(6.9)
Actuarial gains due to change in financial assumptions
(11.9)
(58.6)
Actuarial losses due to experience
2.7
9.1
Total other comprehensive loss in respect of the Scheme
1.0
7.7
Other comprehensive gain in respect of other defined benefit schemes
(0.3)
(0.3)
Total other comprehensive loss in respect of defined benefit schemes
0.7
7.4
The sensitivity of the Scheme pension liabilities to changes in assumptions are:
2025
2024
Estimated Estimated Estimated Estimated
(increase)/ (increase)/ (increase)/ (increase)/
decrease in decrease in decrease in decrease in
pension liabilities pension liabilities pension liabilities pension liabilities
Assumption
Assumption change
£m
%
£m
%
Discount rate
Increase by 0.5% per annum
25.2
5.0
26.9
5.2
Discount rate
Decrease by 0.5% per annum
(27.7)
(5.5)
(30.7)
(6.0)
Expected rate of pension increases
Increase by 0.5% per annum
(19.7)
(3.9)
(20.2)
(3.9)
Expected rate of pension increases
Decrease by 0.5% per annum
19.2
3.8
19.9
3.9
Life expectancy
Increase by one year
(16.0)
(3.2)
(17.0)
(3.3)
Life expectancy
Decrease by one year
16.1
3.2
17.4
3.4
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
142 Schroders Annual Report and Accounts 2025
23 Retirement benefit obligations continued
(d) Reporting at 31 December continued
Movements in respect of the assets and liabilities of the Scheme are:
2025
2024
£m
£m
At 1 January
644.7
713.4
Interest income
33.7
31.4
Remeasurement of assets
(6.5)
(64.1)
Benefits paid
(29.8)
(30.2)
Contribution by employer
1
(8.0)
(3.8)
Administrative expenses
(2.7)
(2.0)
Fair value of plan assets
631.4
644.7
At 1 January
(513.7)
(575.1)
Interest cost
(26.9)
(25.2)
Actuarial (losses)/gains due to change in demographic assumptions
(3.7)
6.9
Actuarial gains due to change in financial assumptions
11.9
58.6
Actuarial losses due to experience
(2.7)
(9.1)
Benefits paid
29.8
30.2
Present value of funded obligations
(505.3)
(513.7)
Net assets
126.1
131.0
1. In July 2024, the trustees of the Scheme agreed that certain employer contributions due to the Defined Contribution section could be met by assets allocated
to the Defined Benefit section. The arrangement is subject to a monthly cap, is conditional on certain funding levels being maintained and will be monitored
by the trustees.
In June 2023, the High Court issued a ruling in respect of Virgin Media v NTL Pension Trustees II Limited (and others), which had the potential
to affect the Scheme’s liabilities. In September 2025, the Government published the draft Pension Schemes Bill, establishing a framework for
legislative remediation, with approval expected in 2026. This will give affected pension schemes the ability to retrospectively obtain written
actuarial confirmation that historic benefit changes met the necessary standards. The ruling is unlikely to impact the Scheme’s liabilities and
the valuation remains appropriate.
The Group did not materially change the basis of any of the principal financial assumptions underlying the calculation of the Scheme’s
net financial position during 2025, although such assumptions have been amended where applicable to reflect current market conditions
and expectations.
The fair values of the Scheme’s plan assets at the year end are:
2025
2024
Of which derived Of which derived
from quoted prices from quoted prices
(unadjusted) in an (unadjusted) in an
Value
active market
Value
active market
£m
£m
£m
£m
Liability matching portfolio:
Debt securities
692.1
391.7
674.8
374.3
Cash and cash equivalents
21.5
15.8
9.8
1.8
Derivative contracts
12.6
3.4
10.3
–
Repurchase agreements
(326.0)
–
(306.9)
–
400.2
410.9
388.0
376.1
Portfolio funds
228.0
142.6
253.9
55.0
Cash
3.2
–
2.8
–
631.4
553.5
644.7
431.1
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
143 Schroders Annual Report and Accounts 2025
24 Share-based payments
Share-based payments are remuneration payments to selected employees that take the form of an award of shares in Schroders plc.
Employees are generally not able to exercise such awards in full until three years after the award has been made, although conditions
vary between different types of award. The accounting for share-based awards settled by transferring shares to the employees (equity-
settled) differs from the accounting for similar awards settled in cash (cash-settled). The charge for equity-settled share-based payments
is determined based on the fair value of the award on the grant date. Such awards can include share awards that may or may not have
performance criteria. The initial fair value of the award takes into account the current value of shares expected to be issued (i.e. estimates
of the likely levels of forfeiture and achievement of performance criteria), and the contribution, if required, by the employee. This initial
fair value is charged to the income statement reflecting benefits received from employment, where relevant, in the performance period
and over the vesting period. The income statement charge is offset by a credit to the statement of changes in equity, where the award is
expected to be settled through the issue of shares. Such awards constituted 3.1% (2024: 3.0%) of salaries, wages and other
remuneration (see note 3).
The Group may make share-based payments to employees through awards over or linked to the value of ordinary shares. These
arrangements involve a maximum term of ten years.
It is the Group’s practice to hedge all awards to eliminate the impact of changes in the market value of shares between the grant date
and the exercise date.
Awards that lapse or are forfeited during the vesting period result in a credit to the income statement (reversing the previous charge) in
the year in which they lapse or are forfeited.
The Group recognised total expenses of £33.5 million (2024: £30.1 million) arising from share-based payment transactions during the year,
of which £31.3 million (2024: £30.4 million) were equity-settled share-based payment transactions.
The Group has the following share-based payment arrangements (further details of the current schemes may be found in the
Remuneration report):
(a) Deferred Award Plan
Awards over ordinary shares made under the Group’s Deferred Award Plan are charged at fair value as operating expenses in the
income statement. Fair value is determined at the date of grant and is equal to the market value of the shares at that time. The fair value
charges, adjusted to reflect actual levels of vesting, are spread over the performance period and the vesting periods of the awards.
Awards are structured as nil-cost options.
2025
2024
Number of Number of
ordinary shares ordinary shares
Millions Millions
Rights outstanding at 1 January
42.7
45.4
Granted/shares in lieu of dividends
8.9
9.6
Forfeited
(1.2)
(1.1)
Exercised
(12.0)
(11.2)
Rights outstanding at 31 December
38.4
42.7
Vested
17.5
14.5
Unvested
20.9
28.2
Weighted average fair value of shares granted (£)
4.02
3.89
Weighted average share price at date of exercise (£)
3.88
3.72
The weighted average exercise price per share is nil. A charge of £26.3 million (2024: £26.6 million) was recognised during the year.
The table below shows the expected charges for awards issued under the Deferred Award Plan to be expensed in future years:
£m
2026
8.7
2027
3.1
2028
0.6
12.4
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
144 Schroders Annual Report and Accounts 2025
24 Share-based payments continued
(b) Equity Compensation Plan
Awards over ordinary shares made under the Group’s Equity Compensation Plan are charged at fair value as operating expenses in the
income statement. Fair value is determined at the date of grant and is equal to the market value of the shares at that time. The fair value
charges, adjusted to reflect actual levels of vesting, are spread over the performance period and the vesting periods of the awards.
Awards are structured as nil-cost options. No new awards will be granted under this plan, as it has been superseded by the Deferred
Award Plan (DAP).
2025
2024
Number of Number of
ordinary shares ordinary shares
Millions Millions
Rights outstanding at 1 January
5.7
7.9
Granted/shares in lieu of dividends
0.3
0.4
Exercised
(2.1)
(2.6)
Rights outstanding at 31 December
3.9
5.7
Vested
3.9
5.7
Weighted average share price at date of exercise (£)
3.92
3.71
The weighted average exercise price per share is nil. There were no charges (2024: none) recognised during the year.
(c) Equity Incentive Plan
Awards over ordinary shares made under the Group’s Equity Incentive Plan are charged at fair value as operating expenses to the
income statement, over a five-year vesting period. Fair value is determined at the date of grant and is equal to the market value of the
shares at that time. Awards are structured as nil-cost options. No new awards will be granted under this plan, as it has been superseded
by the Deferred Award Plan (DAP).
2025
2024
Number of Number of
ordinary shares ordinary shares
Millions Millions
Rights outstanding at 1 January
2.8
4.2
Granted/shares in lieu of dividends
0.2
0.3
Forfeited
(0.1)
(0.1)
Exercised
(1.3)
(1.6)
Rights outstanding at 31 December
1.6
2.8
Vested
1.6
1.8
Unvested
–
1.0
Weighted average share price at date of exercise (£)
3.85
3.44
The weighted average exercise price per share is nil. A charge of £0.2 million (2024: £1.1 million) was recognised during the year.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
145 Schroders Annual Report and Accounts 2025
24 Share-based payments continued
(d) Long Term Incentive Plan
Awards over ordinary shares made under the Group’s Long Term Incentive Plan are charged at fair value to the income statement over a
four-year vesting period. Fair value is calculated using the market value of the shares at the grant date, discounted for dividends forgone
over the vesting period of the award and adjusted based on an estimate at the year-end date of the extent to which the performance
conditions are expected to be met. Awards are structured as nil-cost options.
2025
2024
Number of Number of
ordinary shares ordinary shares
Millions Millions
Rights outstanding at 1 January
0.6
0.5
Granted
1.4
0.3
Forfeited
(0.2)
(0.1)
Exercised
–
(0.1)
Rights outstanding at 31 December
1.8
0.6
Unvested
1.8
0.6
Weighted average fair value of shares granted (£)
4.07
3.94
Weighted average share price at date of exercise (£)
–
3.66
The weighted average exercise price per share is nil. A charge of £2.6 million (2024: £0.2 million) was recognised during the year.
The table below shows the expected charges for awards issued under the Long Term Incentive Plan to be expensed in future years:
£m
2026
0.6
2027
0.6
2028
0.6
1.8
(e) Share Incentive Plan
The employee monthly share purchase plan is open to UK permanent employees and provides free shares from the Group to match
the employee purchase of shares up to a maximum of £100 per month. The shares vest after one year.
Pursuant to this plan, the Group purchased 672,100 ordinary shares in 2025 (2024: 743,910). A charge of £2.2 million (2024: £2.5 million)
was recognised during the year.
(f) Cash-settled share-based awards
Certain employees have been awarded cash-settled equivalents to these share-based awards. The fair value of these awards is
determined using the same methods and models used to value the equivalent equity-settled awards. The fair value of the liability is
remeasured at each balance sheet date and at settlement date.
At 31 December 2025, the carrying value of liabilities arising from cash-settled share-based awards was £6.1 million (2024: £5.0 million).
The total intrinsic value at 31 December 2025 of liabilities for which the employee’s right to cash or other assets had vested by that date was
£5.0 million (2024: £3.5 million).
A charge of £2.2 million (2024: credit of £0.3 million) was recognised during the year. The liability was remeasured at the balance sheet date at
a share price of £4.07 (2024: £3.24).
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
146 Schroders Annual Report and Accounts 2025
25 Related party transactions
Transactions between the Group and parties related to the Group are required to be disclosed to the extent that they are necessary for
an understanding of the potential effect of the relationship on the financial statements. Other disclosures, such as key management
personnel compensation, are also required.
The Group is not deemed to be controlled or jointly controlled by a party directly or through intermediaries under the accounting standards.
As a result, the related parties of the Group are members of the Group, including associates and joint ventures, key management personnel,
close family members of key management personnel and any entity controlled by those parties.
Cash transactions with associates or joint ventures are reported in the cash flow statement and in note 10.
£18.9 million (2024: £23.5 million) was held in customer accounts in respect of amounts payable to key management personnel or their
related parties.
Included within loans and advances to clients are amounts due from related parties of £0.1 million (2024: £0.1 million). All related party loans
and advances were at commercial rates.
Some of the plan assets of the Schroders Retirement Benefit Scheme are invested in products managed by the Life Company (see note 15).
At 31 December 2025, the fair value of these assets was £62.3 million (2024: £55.0 million).
Transactions between the Group and its related parties were made at market rates. Any amounts outstanding are unsecured and will be
settled in cash. No guarantees have been given or received.
Key management personnel compensation
Key management personnel are defined as members of the Board, the Group Executive Committee (Group ExCo), and the Group Management
Committee until its dissolution in November 2024. The remuneration of key management personnel during the year was as follows:
2025
2024
Type of remuneration
Typical composition of this type of benefit
£m
£m
Short-term employee benefits
Salary and upfront bonus
20.6
21.4
Share-based payments
Deferred share awards
9.9
8.3
Other long-term benefits
Deferred cash awards
10.1
13.3
Termination benefits
Termination benefits
0.1
0.3
Post-employment benefits
Pension plans
0.1
0.3
40.8
43.6
The remuneration of key management personnel is based on individual performance and market rates. The remuneration policy (which
applies to Directors and management) is described in more detail at www.schroders.com/directors-remuneration-policy.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
147 Schroders Annual Report and Accounts 2025
26 Interests in structured entities
Structured entities are those entities that have been designed so that voting or similar rights are not the dominant factor in deciding
who has control, such as when any voting rights relate to administrative tasks only, or when the relevant activities are directed by
means of contractual arrangements. The Group’s interests in consolidated and unconsolidated structured entities are described below.
The Group has interests in structured entities as a result of contractual arrangements arising from its principal activity, the
management of assets on behalf of its clients. AUM, excluding deposits by Wealth Management clients and some segregated client
portfolios held within the Group’s Asset Management business, is managed within structured entities. These structured entities typically
consist of investment vehicles such as Open Ended Investment Companies, Authorised Unit Trusts, Limited Partnerships and Sociétés
d’Investissement à Capital Variable, which entitle investors to a percentage of the vehicle’s net asset value. The vehicles are financed by
the purchase of units or shares by investors. The Group also has interests in structured entities through proprietary investments.
These are mainly into vehicles that help facilitate the Group’s stated aim of generating a return on capital and when it makes seed
investments and co-investments in developing new investment strategies or as it invests alongside its clients. Additionally, the Group
holds interests in structured entities for liquidity management purposes, for example via investments in money market funds.
The Group does not ordinarily guarantee returns on the investments it manages or commit to financially support its structured entities.
A small proportion of the Group’s AUM, principally real estate funds, is permitted to raise finance through loans from banks and other
financial institutions. Where external finance is raised, the Group does not provide a guarantee for the repayment of any borrowings.
The business activity of all structured entities in which the Group has an interest, is the management of assets in order to generate
investment returns for investors from capital appreciation and/or investment income. The Group earns a management fee from its
structured entities, normally based on a percentage of the entity’s net asset value, committed capital value or gross asset value and,
where contractually agreed, a performance fee or carried interest, based on outperformance against predetermined benchmarks.
In addition, where the Group owns a proportion of the structured entity it is entitled to receive investment returns.
(a) Interests arising from managing assets
The Group’s interests in structured entities arising as a result of contractual relationships from its principal activity, the management of assets
on behalf of its clients, are reflected in the Group’s AUM excluding associates and joint ventures.
2025
AUM within AUM within
AUM outside consolidated unconsolidated
of structured structured structured
entities entities
entities
Total
£bn
£bn
£bn
£bn
Asset Management
324.6
6.1
275.0
605.7
Wealth Management
104.6
–
19.3
123.9
429.2
6.1
294.3
729.6
2024
AUM within AUM within
AUM outside consolidated unconsolidated
of structured structured structured
entities entities
entities
Total
£bn
£bn
£bn
£bn
Asset Management
285.9
5.4
243.7
535.0
Wealth Management
111.6
–
15.2
126.8
397.5
5.4
258.9
661.8
Certain AUM are managed outside of structured entities. Within Asset Management, this occurs either because it is formed of segregated
investment portfolios for institutional clients comprising directly held investments in individual financial instruments, or because the voting
structures of the vehicles themselves allow the investment manager to be removed without cause. Within Wealth Management, AUM is not
generally considered to be within structured entities as the contractual relationships exist directly with the client rather than with structured
entities, for example discretionary and advisory asset management and banking services. In addition, Wealth Management AUM in the form
of loans and advances to customers is managed outside of structured entities.
Certain structured entities are deemed to be controlled by the Group and are accounted for as subsidiaries and consolidated in accordance
with the accounting standards. AUM within consolidated structured entities represents the net assets of the beneficial interest in the
consolidated structured entity owned by third parties.
AUM within unconsolidated structured entities constitutes the remaining balance, represented principally by the net asset value of pooled
vehicles managed for intermediary clients, as well as some assets invested in pooled vehicles on behalf of institutional and Wealth
Management clients. The Group’s beneficial interest in structured entities is not included within AUM and is described separately overleaf.
The Group has no direct exposure to losses in relation to the AUM reported above, as the investment risk is borne by clients. The main risk
the Group faces from its interest in AUM managed on behalf of clients is the loss of fee income as a result of the withdrawal of funds by
clients. Outflows from funds are dependent on market sentiment, asset performance and investor considerations.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
148 Schroders Annual Report and Accounts 2025
26 Interests in structured entities continued
(a) Interests arising from managing assets continued
Revenue includes £1,478.9 million (2024: £1,398.5 million) of fees from structured entities managed by the Group. The table below shows the
carrying value of the Group’s interests in structured entities as a result of its management of assets, where income is accrued over the period
for which assets are managed but payment is yet to be received. The carrying value represents the Group’s maximum exposure to loss from
these interests.
2025
2024
£m
£m
Fee debtors from structured entities
37.7
36.0
Accrued income from structured entities
368.9
317.4
Total exposure due to investment management activities
406.6
353.4
(b) Interest arising from the Group’s investment in unconsolidated structured entities
The table below shows the carrying values of the Group’s proprietary investments in unconsolidated structured entities, which resulted in a
net gain on financial instruments and other income of £62.8 million (2024: gain of £32.3 million). The carrying values represent the Group’s
maximum exposure to loss from these interests.
2025
2024
£m
£m
Cash and cash equivalents
368.8
362.6
Financial assets
895.7
818.5
Total exposure due to the Group’s investments
1,264.5
1,181.1
The Group’s proprietary investments include interests in unconsolidated structured entities in the form of cash and cash equivalents
and financial assets. Cash and cash equivalents comprise investments in money market funds, none of which are managed by the Group
(2024: nil). Financial assets include seed investments, co‑investments, legacy private equity investments and investments hedging deferred
cash awards. Of the financial assets, £646.1 million (2024: £620.6 million) is invested in funds managed by the Group. The Group has no
interest apart from its role as investor in those funds for which it does not act as manager. The main risk the Group faces from its interests
in unconsolidated structured entities arising from proprietary investments is that the investments will decrease in value. Note 19 includes
further information on the Group’s exposure to market risk arising from proprietary investments.
The Group has contractual commitments to co-invest alongside its clients and provide a minimum level of capital for certain private assets
and alternative vehicles. The Group’s investment call commitments are set out in note 8.
The statement of financial position also includes the Life Company assets of £12,728.0 million (2024: £9,458.7 million), which are included in
AUM. The exposure to the risks and rewards associated with these assets is borne by unit-linked policyholders, or, where Life Company funds
are consolidated, third-party investors in those funds.
Financial support for consolidated structured entities where there is no contractual obligation to do so
The Group supports some of its funds through seed investments to enable the funds to establish a track record before they are more widely
marketed. During the year, the Group purchased units at a cost of £211.1 million (2024: £54.2 million) to provide seed investment
to investment funds managed by the Group, of which £74.1 million (2024: nil) resulted in the consolidation of those funds and £137.0 million
(2024: £54.2 million) did not.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
149 Schroders Annual Report and Accounts 2025
Presentation of the financial statements
(a) Basis of preparation
The consolidated financial statements are prepared in accordance
with UK-adopted international accounting standards and in
conformity with the requirements of the Companies Act 2006.
The consolidated financial information presented within these
financial statements has been prepared on the going concern basis.
In making an assessment on going concern, the Directors have
considered a wide range of information relating to present and
future conditions, including future capital requirements, prediction of
profitability and cash flows. These assessments showed the Group
has sufficient capital and liquidity to support future business
requirements and adequate resources to continue as a going
concern for at least 12 months following approval of the financial
statements.
The consolidated statement of financial position is shown in order
of liquidity. The classification between current and non-current is
set out in the notes. The Group’s Life Company business is reported
separately. If the assets and liabilities of the Group’s Life Company
business were to be included within existing captions on the
consolidated statement of financial position, the effect would be to
gross up a number of individual line items to a material extent. By
not doing this, the Group can provide a more transparent
presentation that shows the assets of the Life Company and the
related unit-linked liabilities as separate and distinct from the
remainder of the consolidated statement of financial position.
The Group’s principal accounting policies have been consistently
applied. Further information is provided below and highlighted in the
notes to the accounts.
(b) Future accounting developments
The Group did not implement the requirements of any standards or
interpretations that were in issue but were not required to be
adopted by the Group at the year-end date. No standards or
interpretations have been issued that are expected to have
a material impact on the consolidated financial statements.
(c) Basis of consolidation
The consolidated financial information includes the total
comprehensive gains or losses, the financial position and the cash
flows of the Company and its subsidiaries, associates and joint
ventures. This includes share ownership trusts established for
certain share-based awards.
In the case of associates and joint ventures, those entities are
presented as single line items in the consolidated income statement
and consolidated statement of financial position (see note 10).
Intercompany transactions and balances are eliminated on
consolidation. Consistent accounting policies have been applied
across the Group in the preparation of the consolidated financial
statements. Details of the Company’s related undertakings are
presented in note 35.
The entities included in the consolidation may vary year on year
due both to the restructuring of the Group (including acquisitions
and disposals) and changes to the number of pooled investment
vehicles controlled by the Group.
Where the Group controls a pooled investment vehicle, it is
consolidated and the third-party interest is recorded as a financial
liability until the Group loses control. This consolidation has no net
effect on the Group’s consolidated income statement.
The consolidated cash flow statement separately presents
acquisitions and disposals of interests in consolidated pooled
vehicles. Cash movements within the pooled vehicles are shown
net within cash flows from operating activities as the cash held within
the underlying pooled investment vehicles is restricted and is not
available to the Group for corporate purposes. This presentation
provides more relevant information about the impact of the Group’s
investment in pooled vehicles on corporate cash resources than an
analysis of the underlying cash flows of the vehicles.
The Group records any non-controlling interest at the proportionate
share of the acquiree’s identifiable assets. Where an option exists to
acquire a further interest in the shares of a subsidiary, a financial
liability is recognised. These liabilities are measured at the present
value of the expected amount payable on exercise. As the option
relates to a change in the ownership interest of a subsidiary, the
non-controlling interest is adjusted and changes in value are
recognised directly in equity. If these options expire unexercised,
the financial liability is derecognised with the corresponding credit
recognised directly in equity.
On 9 October 2025, the Group disposed of its investment in Scottish
Widows Schroder Wealth Holdings Limited (SPW). The 49.9% interest
was acquired by Lloyds Banking Group in exchange for its 19.1%
interest in Schroder Wealth Holdings Limited (SWHL). No cash was
paid or received as part of the transaction. A gain of £113.3 million
has been recognised in the consolidated income statement on the
disposal of the joint venture (see note 10(a)). A loss of £212.2 million
has been recognised within other movements in the consolidated
statement of changes in equity on derecognition of the non-
controlling interest. As a result of the transaction, equity attributable
to shareholders of Schroders plc decreased by £98.9 million.
The consolidated profit after tax of SWHL was £68.8 million for
the period to 9 October 2025 (full year 2024: £83.8 million) and no
dividends were paid to SWHL’s non-controlling interest (2024: £3.6
million). The net assets of SWHL at 31 December 2024 were
£377.4 million.
No non-controlling interest is considered to be individually material
to the Group on the basis of the carrying values at 31 December
2025 (2024: third-party interests of 19.1% in SWHL).
(d) Net gains and losses on foreign exchange
Many subsidiaries are denominated in currencies other than sterling.
The results of these subsidiaries are translated at the average rate
of exchange. At the year end, the assets and liabilities are translated
at the closing rate of exchange. Gains or losses on translation are
recorded in the consolidated statement of comprehensive income
and as a separate component of equity together with gains or losses
on any hedges of overseas operations. Such gains or losses are
transferred to the consolidated income statement on disposal or
liquidation of the relevant subsidiary. Transactions undertaken in
foreign currencies are translated into the functional currency of
the subsidiary at the exchange rate prevailing on the date of
the transaction.
Foreign currency assets and liabilities, other than those measured at
historical cost, are translated into the functional currency at the rates
of exchange ruling at the year-end date. Any exchange differences
arising are included within the consolidated income statement.
(e) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank, short-term
deposits with contractual maturities of three months or less and
money market funds. Cash equivalents are readily convertible to
known amounts of cash, are subject to an insignificant risk of
changes in value and are used for cash management purposes.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
150 Schroders Annual Report and Accounts 2025
Presentation of the financial statements
continued
(f) Estimates and judgements
The preparation of the consolidated financial statements in
conformity with UK-adopted international accounting standards
requires the use of certain significant accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Group’s accounting policies and in determining whether
certain assets and liabilities should be recorded or an impairment
recognised. Any areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements, are disclosed
within the notes and identified under the title estimates and
judgements. Estimates and judgements used in preparing the
financial statements are periodically evaluated and are based on
historical experience and other factors, including expectations of
future events that are believed to be reasonable. The resulting
accounting estimates may not equal the related actual results.
In applying IFRS 10 Consolidated Financial Statements, the
Group uses judgement to determine whether its interests in funds
(and other similar entities), including those held by the Life Company,
constitute controlling interests. The Group can have interests in
funds in the form of proprietary investments or through its role as
fund manager. The Group usually deems control to exist where the
Group is the fund manager and its share of total variable returns
exceeds 40% (including from ownership interests and management
and performance-based revenues). The Group usually deems that
control does not exist where the Group’s share of total variable
returns is below 30%. The Group reviews all facts and circumstances
to establish whether the Group has control. This includes
consideration of the purpose and design of the investee as well
as the rights held by other parties to remove the Group as the
fund manager.
The other estimates and judgements that could have a significant
effect on the carrying amounts of assets and liabilities are set out in
the following notes, including sensitivities where relevant or material:
Note 2
Net operating revenue
Note 4
Tax expense
Note 7
Trade and other receivables
Note 8
Financial assets and liabilities
Note 13
Goodwill and intangible assets
Note 15
Unit-linked liabilities and assets backing unit-linked liabilities
Note 17
Provisions and contingent liabilities
Note 23
Retirement benefit obligations
Climate risks have been considered in the preparation of these
consolidated financial statements, principally through the valuation
of financial assets and impairment assessments.
Financial assets measured at fair value are principally valued using
traded prices or market-observable inputs that incorporate potential
climate risks where appropriate. The valuation of some financial
instruments involves a greater level of judgement or estimation.
In these scenarios, climate risks are incorporated in the relevant
assumptions, such as cash flow forecasts, where appropriate. For
financial assets carried at amortised cost, credit risk assessments
also include climate risk considerations.
Impairment assessments relating to goodwill and other intangible
assets depend on value in use and discounted cash flow models.
These valuations include climate risks in the relevant assumptions
where appropriate.
The Group’s net operating revenues are typically earned as an
agreed percentage of the value of AUM or based on the
performance of the underlying AUM. The potential impact of climate
change on the Group’s AUM and future net operating revenue
generation is considered in the Risk management section of the
Strategic report.
These considerations did not have a material impact on the financial
reporting judgements and estimates in the current year. This reflects
the conclusion that climate change is not expected to have a
significant impact on the Group’s short-term cash flows including
those considered in the going concern and viability assessments.
(g) Presentational changes
The consolidated income statement and associated notes have been
re-presented to simplify the reporting of the Group’s performance
and provide greater comparability. As part of these changes, central
costs and acquisition costs and related items are now presented in
operating expenses.
Additionally, an adjusted operating profit measure is presented in
note 1 to the financial statements. Adjusted operating profit aligns
with the basis on which the Group monitors the ongoing
operational performance of the business and excludes acquisition
costs and related items, transformation costs, and portfolio
restructuring items.
The new presentation provides information that is more relevant to
understanding the Group’s underlying performance, enhancing both
clarity and comparability.
Reconciliation of previously reported operating profit to
revised operating profit
Year ended 31 December 2024
£m
Previously reported operating profit
640.5
Finance charges
11.5
Central costs
(59.2)
Gains on seed investments
10.3
Acquisition costs and related items
(74.3)
Revised operating profit
528.8
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
151 Schroders Annual Report and Accounts 2025
Schroders plc – Statement of financial position
at 31December 2025
2025 2024
Notes £m £m
Assets
Trade and other receivables
29
1,567.2
1,702.5
Deferred tax
31
29.4
35.8
Retirement benefit scheme surplus
23
126.1
131.0
Investments in subsidiaries
35
3,092.6
3,092.6
Total assets
4,815.3
4,961.9
Liabilities
Trade and other payables
30
22.7
28.8
Issued debt
9
256.1
256.0
Deferred tax
31
31.5
32.8
Total liabilities
310.3
317.6
Net assets
4,505.0
4,644.3
Total equity
4,505.0
4,644.3
The financial statements were approved by the Board of Directors on 11February 2026 and signed on its behalf by:
Meagen Burnett
Director
Strategic report Governance Financial statements Shareholder and,sustainability information
Schroders plc financial statements
152 Schroders Annual Report and Accounts 2025
Schroders plc – Statement of changes in equity
for the year ended 31December 2025
Share
capital
Share
premium
Own
shares
Profit and
loss reserve Total
Notes £m £m £m £m £m
At 1 January 2025
322.4
84.3
(148.5)
4,386.1
4,644.3
Profit for the year
–
–
–
176.2
176.2
Items that will not to be reclassified to the income statement:
Net actuarial loss on defined benefit pension scheme
23
–
–
–
(1.0)
(1.0)
Tax on items taken directly to other comprehensive income
–
–
–
0.3
0.3
Other comprehensive income
–
–
–
(0.7)
(0.7)
Total comprehensive income for the year
–
–
–
175.5
175.5
Own shares purchased
33
–
–
(10.4)
–
(10.4)
Share-based payments
–
–
–
31.3
31.3
Tax in respect of share schemes
–
–
–
0.1
0.1
Dividends
6
–
–
–
(335.8)
(335.8)
Transactions with shareholders
–
–
(10.4)
(304.4)
(314.8)
Transfers
–
–
66.6
(66.6)
–
At 31 December 2025
322.4
84.3
(92.3)
4,190.6
4,505.0
Share
capital
Share
premium
Own
shares
Profit and
loss reserve Total
Notes £m £m £m £m £m
At 1 January 2024
322.4
84.3
(158.2)
4,394.5
4,643.0
Profit for the year
–
–
–
372.4
372.4
Items that will not to be reclassified to the income statement:
Net actuarial loss on defined benefit pension scheme
23
–
–
–
(7.7)
(7.7)
Tax on items taken directly to other comprehensive income
–
–
–
1.9
1.9
Other comprehensive income
–
–
–
(5.8)
(5.8)
Total comprehensive income for the year
–
–
–
366.6
366.6
Own shares purchased
33
–
–
(55.8)
–
(55.8)
Share-based payments
–
–
–
24.7
24.7
Dividends
6
–
–
–
(334.2)
(334.2)
Transactions with shareholders
–
–
(55.8)
(309.5)
(365.3)
Transfers
–
–
65.5
(65.5)
–
At 31 December 2024
322.4
84.3
(148.5)
4,386.1
4,644.3
The distributable profits of Schroders plc are £2.7 billion (2024: £2.8 billion) and comprise retained profits of £2.8 billion (2024: £3.0 billion),
included within the profit and loss reserve, less amounts held within the own shares reserve.
The Group’s ability to pay dividends is however restricted by the need to hold regulatory capital and to maintain sufficient other operating
capital to support its ongoing business activities. In addition, the Group invests in its own funds as seed investment for the purpose of
supporting new investment strategies. An analysis of the Group’s capital position is provided in note 19.
Strategic report Governance Financial statements Shareholder and sustainability information
Schroders plc financial statements continued
153 Schroders Annual Report and Accounts 2025
Schroders plc – Cash flow statement
for the year ended 31December 2025
2025 2024
£m £m
Profit before tax
182.3
380.2
Adjustments for:
Decrease/(increase) in trade and other receivables
134.1
(275.7)
(Decrease)/increase in trade and other payables
(10.4)
1.9
Net adjustment in respect of the Scheme
3.9
(0.4)
Share-based payments
31.3
24.7
Amounts paid in respect of Group tax relief
(2.6)
(2.0)
Net interest income adjustment
17.2
9.7
Net cash from operating activities
355.8
138.4
Cash flows from financing activities:
Loan received from a Group company
6.3
6.8
Acquisition of own shares
(10.4)
(55.8)
Dividends paid
(335.8)
(334.2)
Issuance of loan notes
–
248.8
Interest on issued debt
(15.9)
(4.0)
Net cash used in financing activities
(355.8)
(138.4)
Net decrease in cash and cash equivalents
–
–
Opening cash and cash equivalents
–
–
Net decrease in cash and cash equivalents
–
–
Closing cash and cash equivalents
–
–
Strategic report Governance Financial statements Shareholder and sustainability information
Schroders plc financial statements continued
154 Schroders Annual Report and Accounts 2025
27 Significant accounting policies
The separate financial statements of Schroders plc (Company) have been prepared on a going concern basis in accordance with UK-
adopted international accounting standards and in conformity with the requirements of the Companies Act 2006. The Company has
taken advantage of the exemption in section 408 of the Act not to present its own income statement and statement of
comprehensive income.
The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are the same as
those set out in the Group’s financial statement note disclosures, where applicable. In addition, note 35 sets out the accounting policy in
respect ofinvestments in subsidiary undertakings.
28 Expenses and other disclosures
The auditor’s remuneration for audit services to the Company was £0.9 million (2024: £0.8 million). There was £0.1 million of other assurance
services in the year (2024: £0.2 million).
Key management personnel compensation
The remuneration policy is described in more detail at www.schroders.com/directors-remuneration-policy. The Company has no employees.
The key management personnel of the Company are defined as the Board of Directors. The remuneration of key management personnel,
borne by the Company, during the year wasasfollows:
Type of remuneration Typical composition of this type of benefit
2025 2024
£m £m
Short-term employee benefits
Salary and upfront bonus
10.6
6.0
Share-based payments
Deferred share awards
4.1
4.9
Other long-term benefits
Deferred cash awards
3.7
2.4
18.4
13.3
29 Trade and other receivables
2025 2024
£m £m
Amounts due from subsidiaries
1,564.7
1,701.9
Prepayments and accrued income
0.1
–
Other receivables
2.4
0.6
1,567.2
1,702.5
Trade and other receivables are initially recorded at fair value and subsequently at amortised cost. All trade and other receivables are due
within one year or repayable on demand.
The ECL provision on trade and other receivables at 31December 2025 was £1.5 million (2024: £1.7 million). Note 19 sets out the details of
the expected credit loss calculation.
The Company grants equity-settled awards to employees of its directly and indirectly owned subsidiaries, resulting in a corresponding
increase in amounts due from subsidiaries.
30 Trade and other payables
2025 2024
Non-current Current Total Non-current Current Total
Trade and other payables amortised at cost:
£m £m £m £m £m £m
Social security
1.8
1.4
3.2
1.5
1.0
2.5
Accruals
2.5
11.2
13.7
2.0
9.2
11.2
Amounts owed to subsidiaries
–
5.8
5.8
–
14.8
14.8
Other payables
–
–
–
–
0.3
0.3
4.3
18.4
22.7
3.5
25.3
28.8
The Company’s trade and other payables contractually mature in the following time periods:
2025 2024
£m £m
Less than one year
18.4
25.3
1 - 5 years
4.3
3.5
4.3
3.5
22.7
28.8
Amounts owed to subsidiaries include an interest-bearing loan of £2.6 million (2024: £8.9 million) that is repayable on demand.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
155 Schroders Annual Report and Accounts 2025
31 Deferred tax
2025 2024
Deferred
employee
awards Losses
Pension
surplus Total
Deferred
employee
awards Losses
Pension
surplus Total
£m £m £m £m £m £m £m £m
At 1 January
3.5
32.3
(32.8)
3.0
3.3
34.9
(34.6)
3.6
Income statement (charge)/credit
(0.2)
(6.3)
1.0
(5.5)
0.2
(2.6)
(0.1)
(2.5)
Credit to statement of other
comprehensive income
– – 0.3 0.3 – – 1.9 1.9
Credit taken to equity
0.1 – – 0.1 – – – –
At 31 December
3.4
26.0
(31.5)
(2.1)
3.5
32.3
(32.8)
3.0
A deferred asset of £3.2 million (2024: £3.4 million) relating to £12.8 million of realised capital losses has not been recognised as there is
insufficient evidence that there will be sufficient capital gains in the future against which the deferred tax asset could be utilised.
Net deferred tax at 31 December comprises a deferred tax asset of £29.4 million (2024: £35.8 million) and a deferred tax liability of £31.5
million (2024: £32.8 million).
32 Financial instrument risk management
The Company’s policy is to have adequate capital for all activities undertaken in the normal course of business. In particular, it should have
adequate capital to maintain sufficient liquid funds to meet peak working capital requirements. Generally, surplus capital is loaned back to
theGroup’s investment capital management entities.
The risk management processes of the Company are aligned with those of the Group as a whole. More details on the risk management
framework and approach are set out in the RiskManagement report and the Audit and Risk Committee report on pages 25 and 53
respectively as well as in note 19. The Company’s specific risk exposures are explained below.
Credit risk
The Company has exposure to credit risk from its normal activities where the risk is that a counterparty will be unable to pay in full amounts
when due. The Company’s counterparties are predominantly its subsidiaries and therefore there is minimal external credit risk exposure.
Liquidity risk
The Company holds sufficient liquid funds to cover its needs in the normal course of business. The Company can recall intercompany loans to
subsidiaries or utilise the Group loan facility to maintain sufficient liquidity.
Interest rate risk
At 31December 2025, if interest rates had been 25 bps higher (2024: 25 bps higher) or 50 bps lower (2024: 50 bps lower) with all other
variables held constant, the Company estimates that profit after tax for the year would have increased by £2.9 million (2024: increased by £3.1
million) ordecreased by £5.8 million (2024: decreased by £6.2 million) respectively. These changes are mainly as a result of net interest
income on the Company’s interest-bearing intercompany receivables and payables and cash. Other components of equity are not directly
affected by interest rate movements.
The model used to calculate the effect on post-tax profits does not take into account the indirect effect of interest rates on the fair value of
assets and liabilities.
Foreign exchange and pricing risk
The Company is not directly exposed to foreign exchange or pricing risk. The Company’s investments in its directly held subsidiaries are in
sterling and are held at historic cost. It has indirect exposure to foreign exchange and pricing risk in the Group, which could result in the
impairment of these subsidiaries. There are currently sufficient resources in subsidiaries to absorb any normal market events.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
156 Schroders Annual Report and Accounts 2025
33 Own shares
Movements in own shares during the year were as follows:
2025 2024
£m £m
At 1 January
148.5
158.2
Own shares purchased
10.4
55.8
Awards vested
(66.6)
(65.5)
At 31 December
92.3
148.5
During the year, 2.7 million (2024: 9.4 million) own shares were purchased and held for hedging share-based awards. In 2024, 6.4 million
shares were purchased and held in treasury. During the year, 5.0 million (2024: nil) of the shares held in treasury were transferred to
employee benefit trusts. 15.4 million shares (2024:13.8 million shares) awarded to employees vested in the year and were transferred out
ofown shares.
The total number of shares in the Company held within the Company’s employee benefit trusts and in treasury comprise:
2025 2024
Number of vested
shares
Number of
unvested
shares Total
Number of vested
shares
Number of
unvested
shares Total
Millions Millions Millions Millions Millions Millions
Total ordinary shares
23.0
21.3
44.3
22.0
34.0
56.0
2025 2024
Vested
shares
Unvested
shares Total
Vested
shares
Unvested
shares Total
£m £m £m £m £m £m
Total ordinary shares:
Cost
107.8
92.3
200.1
103.1
148.5
251.6
Fair value
93.7
86.5
180.2
71.4
109.9
181.3
34 Related party transactions
The Company is not deemed to be controlled or jointly controlled by a party directly or through intermediaries under the accounting
standards. As a result, the related parties of the Company comprise principally subsidiaries, associates and joint ventures, key management
personnel, close family members of key management personnel and any entity controlled by those parties.
The Company has determined that key management personnel comprises only the Board of Directors.
Transactions between related parties
Details of transactions between the Company and its subsidiaries, which are related parties of the Company, and transactions between
theCompany and other related parties, excluding compensation (which is set out in note 28), are disclosed below:
2025
Revenue Expenses Interest receivable Interest payable
Amounts owed by
related parties
Amounts owed
to related parties
£m £m £m £m £m £m
Subsidiaries of the Company
150.0
(2.9)
66.2
(0.9)
1,564.7
(5.8)
Key management personnel
0.6
–
–
(0.3)
0.1
(16.9)
2024
Revenue Expenses Interest receivable Interest payable
Amounts owed
by related
parties
Amounts owed
to related
parties
£m £m £m £m £m £m
Subsidiaries of the Company
358.0
(24.0)
71.9
(0.1)
1,701.9
(14.8)
Key management personnel
0.5
–
–
(0.2)
0.1
(20.6)
Transactions with related parties were made at market rates. The amounts outstanding are unsecured and will be settled in cash.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
157 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings
The Group operates globally, which results in the Company having a corporate structure consisting of a number of related
undertakings,comprising subsidiaries, joint ventures, associates and other qualifying undertakings. A full list of these undertakings, the
country of incorporation, registered office, classes of shares held and the effective percentage of equity owned at 31December 2025 is
disclosed below.
Additionally, related undertakings include entities where the Company has a significant holding of a share class or unit class of a pooled
vehicle. These holdings can arise through the Group’s investment management activities on behalf of clients or as part of the stated aim
of generating a return on capital. The seeding of structured entities in order to develop new investment strategies can give rise to these
holdings. A listing of related undertakings arising from the Company’s interest in structured entities along with registered offices
is included on pages 171 to 174.
(a) Related undertakings arising from the Company’s corporate structure
Fully owned subsidiaries
Name Share class Footnote % Address
UK
Leadenhall Securities Corporation Limited
OS
100%
1 London Wall Place, London, EC2Y 5AU, England
Schroder & Co. Limited
OS
100%
Schroder Administration Limited
OS
a
100%
Schroder Corporate Services Limited
OS
100%
Schroder Financial Holdings Limited
OS
100%
Schroder Financial Services Limited
OS
100%
Schroder International Holdings Limited
OS
100%
Schroder Investment Company Limited
OS
100%
Schroder Investment Management Limited
OS
100%
Schroder Private Assets Holdings Limited
OS
100%
Schroder Real Estate Investment Management Limited
OS
100%
Schroder Unit Trusts Limited
OS
100%
Schroder Wealth Holdings Limited
OS
100%
Schroder Wealth International Holdings Limited
OS
100%
Croydon Gateway Nominee 1 Limited
OS
g
100%
Croydon Gateway Nominee 2 Limited
OS
g
100%
Gatwick Hotel Feeder GP LLP
PI
100%
J. Henry Schroder Wagg & Co. Limited
OS
100%
Schroders Capital Junior Infrastructure Debt United Kingdom GP LLP
PI
100%
Schroder Investment Management North America Limited
OS
100%
Schroder Nominees Limited
OS
b
100%
Schroder Pension Management Limited
OS
100%
Schroder Pension Trustee Limited
OS
100%
Schroders IS Limited
OS
100%
UK PEM Partners Limited
OS
100%
Schroders Capital UK Self Storage GP LLP
PI
n
100%
Cazenove New Europe (CFM1) Limited
OS
b
100%
Cazenove New Europe (PPI) Limited
OS
b
100%
Cazenove New Europe Staff Interest Limited
OS
b
100%
Whitley Asset Management Limited
OS
c, d
100%
Sand Aire Limited
OS
b
100%
Schroder & Co Nominees Limited
OS
b
100%
Schroder Wealth Management (US) Limited
OS
100%
Schroders Capital Private Equity Founder Partner (GP) Limited
OS
100%
50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ,
Scotland
Schroders Capital Private Equity Founder Partner Limited
OS
100%
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
158 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class % Address
UK (continued)
Schroders Capital Private Equity GP LLP
PI
100%
50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ,
ScotlandTransPennine GP (Scot) LLP
PI
100%
Benchmark Capital Limited
OS
100%
Broadlands Business Campus, Langhurstwood Road,
Horsham, West Sussex, RH12 4QP, England
Benchmark Financial Planning Limited OS 100%
Best Practice IFA Group Limited OS 100%
Bright Square Pensions Limited OS 100%
Creative Technologies Ltd OS 100%
Evolution Wealth Network Limited OS 100%
Fusion Wealth Limited OS 100%
Jenkins Financial Planning Ltd OS 100%
Oculus Wealth Management Limited OS 100%
Oculus (Holdings) Limited OS c, d 100%
PP Nominees Limited OS 100%
PP Trustees Limited OS 100%
RIA Pension Trustees Limited OS 100%
Unique Financial Planning Limited OS 100%
Cusack Financial Management Limited OS o 100%
Verum Financial LLP
PI
l
100%
Kingston Bishop Limited (In Liquidation) OS m 100%
Town Wall House, Balkerne Hill, Colchester, Essex,
CO3 3AD, England
Champain Financial Services Limited (In Liquidation) OS 100%
4, Balkerne Hill, Colchester, Essex, CO3 3AD, United
Kingdom
Retirement Planning Partnership Ltd (In Liquidation) OS 100%
Kestrel House, Alma Road, Romsey, Hampshire, SO51
8ED, England
Advison Limited (In Liquidation)
OS
100%
Begbies Traynor (Central) LLP, Town Wall House,
Balkerne Hill, Colchester, Essex, CO3 3AD, England
Mark Cardy Consultancy Limited (In Liquidation)
OS g 100%
Oculus Wealth Management (North Dorset) Limited (In Liquidation)
OS 100%
Redbourne Wealth Management Limited (In Liquidation)
OS c, d 100%
Vercern Limited (In Liquidation)
OS g 100%
Wealth Planning Limited (In Liquidation)
OS
i
100%
Robertson Baxter Limited OS 100%
Beck House, Abbey Road, Shepley, Huddersfield,
HD8 8EP, England
Australia
Schroder Australia Holdings Pty Limited OS, R c, d 100%
Level 17, 39 Martin Place, Sydney, NSW, 2000,
Australia
Schroder Investment Management Australia Limited OS, CPS 100%
Austria
Schroder Real Estate Asset Management Österreich GmbH (In
Liquidation)
OS 100% Hegelgasse 8/10, Wien, 1010, Austria
Belgium
Algonquin Management Partners S.A. OS 100% Avenue Louise, 523 – 1050, Bruxelles, Belgium
Bermuda
Schroder Venture Managers Limited COS 100%
Wellesley House, 2nd Floor, 90 Pitts Bay Road,
Pembroke HM 08, Bermuda
Schroders (Bermuda) Limited OS 100%
SITCO Nominees Ltd OS 100%
Brazil
Schroder Investment Management Brasil Ltda OS 100%
Av Presidente Juscelino Kubitschek, 1327, 12º andar,
sala 121, São Paulo, SP, 04543-011, Brazil
Canada
Schroder Canada Investments Inc. COS 100% Cidel Financial Group, 60 Bloor Street West, 9th Floor,
Toronto, Ontario, M4W 3B8, Canada
Cayman Islands
AEROW SMA Management I L.P.
PI
100%
Maples & Calder, PO Box 309 GT, Ugland House, South
Church Street, George Town, Grand Cayman, KY1 113,
Cayman Islands
AEROW SMA Management II L.P. PI 100%
PEM Partners Ltd OS 100%
Schroders Capital cPl Global Management III L.P.
PI
100%
Clean Energy And Environment (China) Limited OS 100%
Walkers Corporate Limited, 190 Elgin Avenue, George
Town, Grand Cayman KY1 9001, Cayman Islands
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
159 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Chile
Schroders Chile SpA OS 100%
Avenida Cerro El Plomo 5420 Oficina 1104, Les
Condes, Santiago, Chile
China
Schroder Fund Management (China) Company Limited OS 100% Unit 33T52A, 33F, 100 Century Avenue, FTZ, Shanghai,
China
Schroder Investment Management (Shanghai) Co., Ltd. OS 100% Unit 40T12, 40F, 100 Century Avenue, FTZ, Shanghai,
China
Schroders Capital Private Fund Management (Shanghai)
Co., Ltd.
OS 100%
Schroders Capital Investment Management (Beijing) Co., Ltd. OS 100% Unit F1929-F1930, 19th Floor, 101, 4th to 19th Floor,
No.7 Finance Avenue, Xicheng District, Beijing, China,
China
Schroders Capital GP Management (Shanghai) Co., Ltd. OS 100% Room E-F, No. 828-838 Zhangyang Road, Shanghai
Free Trade
Zone, Shanghai, China
施罗德绿衣投资管理(无锡)有限公司 (Schroders Capital GP
Management Infra (Wuxi) Co., Ltd)
OS 100% 990-303, West Jianghai Road, Liangxi District, Wuxi,
China/Jiang Su, 214151, China
Curaçao
cPl Schroders Capital Investments Management B.V. OS 100%
Johan van, Walbeeckplein 11, Willemstad, Curaçao
Schroder Adveq Investors B.V. OS 100%
Schroders Capital Management (Curaçao) N.V. OS 100%
France
Schroder Real Estate (France) SAS OS 100%
1 rue Euler, 75008, Paris, France
Schroders Capital Mid Infra II UP OS 100%
Tour Franklin, 100-101 Terrasse Boieldieu, CS70395,
Paris La Défense Cedex, France, 92042, France
Schroder Mid Infra UP OS 100%
Schroders IDF IV UP OS 100%
Germany
Blitz 06-953 GmbH OS p 100%
Taunustor 1, 60310, Frankfurt, Germany
Real Neunzehnte Verwaltungsgesellschaft mbH OS 100%
Schroder Eurologistik Fonds Verwaltungs GmbH OS 100%
Schroder Holdings (Deutschland) GmbH CS 100%
Schroder Real Estate Investment Management GmbH OS 100%
Schroder Real Estate Kapitalverwaltungsgesellschaft mbH OS 100%
Schroders Capital Management (Deutschland) GmbH OS 100%
SIMA 5 Verwaltungsgesellschaft mbH OS 100%
Schroder Real Estate Asset Management Austria GmbH OS 100% Maximilianstraße 31, 80539, München, Germany
Schroder Real Estate Asset Management GmbH OS 100%
Guernsey
Burnaby Insurance (Guernsey) Limited OS 100% Heritage Hall, Le Marchant Street, St.Peter Port,
Guernsey, GY1 4JH, Channel Islands
CC Private Assets Equity PCC Limited
OS
100%
Trafalgar Court, Les Banques, St. Peter Port,
Guernsey, GY1 3QL, Channel Islands
CC Private Assets Yield Limited
OS
100%
CC Private Debt Feeder Company Limited
OS
100%
CC Private Equity Feeder Company PCC Limited
OS
100%
Schroder Venture Managers (Guernsey) Limited
OS, NCRPS
100%
Schroders Wealth Private Assets PCC Limited
OS
100%
Schroder Investment Management (Guernsey) Limited
OS
100%
PO Box 334, Regency Court, Glategny Esplanade, St.
Peter Port, Guernsey, GY1 3UF, Channel Islands
Schroder Investments (Guernsey) Limited
OS, R
100%
Schroder Nominees (Guernsey) Limited
OS
100%
Name
Share class % Address
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
160 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Guernsey (continued)
Schroder Investment Company (Guernsey) Limited OS,
Redeemable
100% PO Box 334, Regency Court, Glategny Esplanade, St.
Peter Port, Guernsey, GY1 3UF, Channel Islands
Schroders (C.I.) Limited OS 100%
Secquaero Re (Guernsey) ICC Ltd OS 100% PO Box 33, Dorey Court, Admiral Park, St.Peter Port,
Guernsey, GY1 4AT, Channel Islands
Hong Kong
Schroders Greencoat HK SLP Limited OS 100% 37/F One Taikoo Place, Taikoo Place, 979 King's Road,
Quarry Bay, Hong Kong
Schroder Investment Management (Hong Kong) Limited OS 100% Level 33, Two Pacific Place, 88 Queensway, Hong Kong
Ireland
Schroder Investment Management (Ireland) Limited OS 100% George’s Court, 54-62 Townsend Street, Dublin 2,
Ireland
Japan
Schroder Investment Management (Japan) Limited OS 100% 8-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo,
100-0005, Japan
Jersey
AAF Management II L.P.
PI
100%
26 New Street, St. Helier, Jersey, JE2 3RA, Channel
Islands
AAF Management III L.P. PI 100%
Confluentes Partners I L.P. PI 100%
Confluentes Partners II L.P. PI 100%
CPPEF Partners L.P. PI 100%
Cresta Management L.P. PI 100%
Cresta Management II L.P. PI 100%
Cresta Partners III L.P. PI 100%
Cresta Partners IV L.P. PI 100%
EEM Management L.P. PI 100%
EEM Management II L.P. PI 100%
EEM Opportunities Management L.P. PI 100%
Gemini Management L.P. PI 100%
GPEP Management I L.P. PI 100%
GPEP Management IV L.P. PI 100%
GPEP Partners V L.P. PI 100%
GPEP Partners VI L.P. PI 100%
IST3 Manesse PE Management L.P. PI 100%
IST3 Manesse PE2 Management L.P. PI 100%
Malatrex Partners L.P. PI 100%
Marmolata Partners L.P. PI 100%
Marmolata PE Impact Partners L.P. PI 100%
Matterhorn Partners L.P. PI 100%
Milele Partners L.P. PI 100%
PSY Private Equity Partners L.P. PI 100%
PSY Private Equity Partners II L.P. PI 100%
SA Co-Investment Management 1 L.P. PI 100%
SA RP CO Management 1 L.P. PI 100%
SA TG Management L.P. PI 100%
SA VS Management L.P. PI 100%
SA-EL Asia Partners I L.P. PI 100%
Name Share class % Address
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
161 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class Footnote % Address
Jersey (continued)
SA-EL Partners II L.P. PI 100%
26 New Street, St. Helier, Jersey, JE2 3RA, Channel
Islands
Salève 2017 Management L.P. PI 100%
Salève 2020 Management L.P. PI 100%
Salève 2022 Partners L.P. PI 100%
Salève 2025 Partners L.P. PI 100%
Schroders Capital PE UK Co-Investment FGC Partners L.P. PI 100%
SC Global Opportunities Management L.P. PI 100%
SC Global Opportunities Management II L.P. PI 100%
Schroders Capital Private Equity China Access Management L.P. PI 100%
Schroders Capital cPl Global Partners IV L.P. PI 100%
Schroders Capital cPl Global Partners V L.P. PI 100%
Schroders Capital Private Equity Asia Partners V L.P. PI 100%
Schroders Capital Private Equity Asia Partners VI L.P. PI 100%
Schroders Capital Private Equity China Partners IV L.P. PI 100%
Schroders Capital Private Equity China Partners VI L.P. PI 100%
Schroders Capital Private Equity Europe Direct Partners III L.P. PI 100%
Schroders Capital Private Equity Europe Direct Partners IV L.P. PI 100%
Schroders Capital Private Equity Europe Partners IX L.P. PI 100%
Schroders Capital Private Equity Global Direct Partners III L.P. PI 100%
Schroders Capital Private Equity Global Direct Partners IV EUR L.P. PI 100%
Schroders Capital Private Equity Global Innovation Partners IX L.P. PI 100%
Schroders Capital Private Equity Global Innovation Partners X L.P. PI 100%
Schroders Capital Private Equity Global Innovation Partner XI L.P. PI 100%
Schroders Capital Private Equity Global Partners II L.P. PI 100%
Schroders Capital Private Equity Global Partners III L.P. PI 100%
Schroders Capital Private Equity Global Partners IV L.P. PI 100%
Schroders Capital Private Equity Healthcare Partners L.P. PI 100%
Schroders Capital Private Equity India Partners L.P. PI 100%
Schroders Capital Private Equity Mature Secondaries (Orthros)
Management L.P.
PI 100%
Schroders Capital Private Equity Asia Management III L.P. PI 100%
Schroders Capital Private Equity Continuation Opportunities
Management L.P.
PI 100%
Schroders Capital Private Equity Continuation Opportunities Partners
II L.P.
PI 100%
Schroders Capital Private Equity Continuation Opportunities Partners
III EUR L.P.
PI 100%
Schroders Capital Private Equity Continuation Opportunities Partners
III USD L.P.
PI 100%
Schroders Capital Private Equity US Partners V L.P. PI 100%
Schroders Capital Private Equity US Partners VI L.P. PI 100%
Schroders Capital WPP Global Private Equity Management III L.P. PI 100%
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
162 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class % Address
Jersey (continued)
Schroders Capital Taft-Hartley Ventures Partners L.P. PI 100%
26 New Street, St. Helier, Jersey, JE2 3RA,
Channel Islands
Schroders Capital WPP Global Private Equity Management I L.P. PI 100%
Schroders Capital WPP Global Private Equity Management II L.P. PI 100%
TMC Management III L.P. PI 100%
TMC Management IV L.P. PI 100%
TMC Management V L.P. PI 100%
TMCO Management I L.P. PI 100%
Wilmersdorf Secondary Management II L.P. PI 100%
Schroders Capital Private Equity Global Direct Partners IV GBP L.P. PI 100%
Schroders Capital Private Equity Global Direct Partners IV USD L.P. PI 100%
Schroders Capital cPl Global Partners VI L.P. PI 100%
Schroders Capital Management (Jersey) Ltd OS 100%
IFC1, St. Helier, Jersey, JE2 3BX, Channel Islands
Schroders Capital Private Equity Wollstonecraft Management Ltd. OS 100%
Schroders Capital WPP Global Private Equity Management Ltd. OS 100%
SCWM PE Management Ltd OS 100%
UFCW No Ca Liquidating Mandate Management Ltd OS 100%
Croydon Gateway GP Limited OS g 100%
47 Esplanade, St. Helier, Jersey, JE1 0BD,
Channel Islands
Croydon Gateway Investments Limited OS g 100%
Income Plus Real Estate Debt GP Limited OS g 100%
Schroder Real Estate Managers (Jersey) Limited OS 100%
Schroder RECaP SSF Nominee 1 Limited OS i 100%
Schroder RECaP Nominee 2 Limited OS i 100%
SRECaP SSF GP Limited OS 100%
UK Retirement Living Fund (ReLF) GP Limited OS 100%
Schroders Capital UK Operating Hotels (GP) Limited OS 100%
Luxembourg
Confluentes Management S.à r.l. OS 100%
17, boulevard F.W. Raiffeisen, L-2411,
Luxembourg
Schroders Capital PE FGC Management S.à r.l. OS 100%
CPPEF Management S.à r.l. OS 100%
Cresta Management S.à r.l. OS 100%
GPEP Management S.à r.l. OS 100%
KVT PE Management S.à r.l. OS 100%
Manesse PE Management S.à r.l. OS 100%
Marmolata Management S.à r.l. OS 100%
Matterhorn Management S.à r.l. OS 100%
PE III Management S.à r.l. OS 100%
PSY Private Equity Management S.à r.l. OS 100%
Salève Management S.à r.l. OS 100%
Schroders Capital cPl Global Management S.à r.l. OS 100%
Schroders Capital Management (Luxembourg) S.à r.l. OS 100%
Schroders Capital Private Equity Asia Management V S.à r.l. OS 100%
Schroders Capital Private Equity Asia Management VI S.à r.l. OS 100%
Schroders Capital Private Equity China Management S.à r.l. OS 100%
Schroders Capital Private Equity Europe Direct Management III S.à
r.l.
OS 100%
Schroders Greencoat Global GP S.à r.l.
OS
100%
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
163 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class % Address
Luxembourg (continued)
Schroders Capital Private Equity Europe Management VIII S.à r.l.
OS
100%
17, boulevard F.W. Raiffeisen, L-2411,
Luxembourg
Schroders Capital Private Equity Europe Management IX S.à r.l.
OS
100%
Schroders Capital Private Equity Global Direct Management III S.à r.l.
OS
100%
Schroders Capital Private Equity Global Direct Management IV S.à r.l.
OS
100%
Schroders Capital Private Equity Global Innovation Management X S.à
r.l.
OS 100%
Schroders Capital Private Equity Global Innovation Management XI S.à
r.l.
OS 100%
Schroders Capital Private Equity Global Innovation Management XII S.à
r.l.
OS 100%
Schroders Capital Private Equity Global Management III S.à r.l.
OS
100%
Schroders Capital Private Equity Global Management IV S.à r.l.
OS
100%
Schroders Capital Private Equity Healthcare Management S.à r.l.
OS
100%
Schroders Capital Private Equity India Management S.à r.l.
OS
100%
Schroders Capital Private Equity Continuation Opportunities
Management II S.à r.l.
OS 100%
Schroders Capital Private Equity Continuation Opportunities
Management III S.à r.l.
OS 100%
Schroders Capital Private Equity US Management V S.à r.l.
OS
100%
Schroders Capital Private Equity US Management VI S.à r.l.
OS
100%
Schroders Capital Semi-Liquid Holding Management S.à r.l.
OS
100%
Schroders Capital Solutions Management S.à r.l.
OS
100%
Schroders Capital Private Equity Europe Direct Management IV S.à r.l.
OS
100%
Schroders Capital Junior Infrastructure Debt Europe II GP S.à r.l.
OS
100%
46A Avenue J.F. Kennedy, L-1855, Luxembourg
Schroders Capital Junior Infrastructure Debt Europe III GP S.à r.l.
OS
100%
Schroders Capital Senior Infrastructure Debt Europe V GP S.à r.l.
OS
100%
Schroders Capital European Operating Hotels GP S.à r.l.
OS
100%
404, Route d'Esch, L - 1471 Luxembourg
IED UK GP S.à r.l. OS 100% 4, rue du Fort Wallis, Luxembourg, L - 2714,
Luxembourg
Schroders Capital Real Estate Debt GP S.à r.l.
OS
100%
15 Boulevard Friedrich Wilhelm Raiffeisen, L - 2411,
Luxembourg
SNI Management S.à r.l.
OS
100%
BlueOrchard Asset Management (Luxembourg) S.A.
OS
100%
5 rue Höhenhof, L-1736 Senningerberg,
Luxembourg
BlueOrchard Invest S.à r.l.
OS
100%
Schroder Real Estate (CIP) GP S.à r.l.
OS
100%
Schroder Real Estate Investment Management (Luxembourg) S.à r.l.
OS
100%
Schroder Investment Management (Europe) S.A.
OS
100%
Schroders Greencoat Europe GP S.à r.l.
OS
100%
8, rue Lou Hemmer, L-1748 Senningerberg,
Luxembourg
Schroders Greencoat US - A SCSp
PI
100%
Schroders Greencoat US GP S.à r.l.
OS
100%
Schroders Capital High Yield Enhanced Return Infrastructure GP S.à r.l.
OS
100%
60, avenue J.F. Kennedy, L-1855 Luxembourg
Schroders Capital Senior Infrastructure Debt Europe VI GP S.à r.l.
OS
100%
Windmill Infrastructure Debt GP S.à.r.l
OS
100%
Netherlands
Schroders Capital Real Estate Netherlands B.V.
OS
100%
Strawinskylaan 1547, WTC, Level 15, 1077 XX
Amsterdam, Netherlands
Real Estate Fund Management B.V.
OS
100%
RES Participations B.V.
OS
100%
Schroder International Finance B.V.
OS
100%
1 London Wall Place, London, EC2Y 5AU, England
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
164 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class % Address
Peru
BlueOrchard America Latina S.A.C. OS 100%
Calle Dean, Valdivia 227, Office 501, San Isidro, Lima,
Peru
Singapore
Blueorchard Investments (Singapore) Pte. Ltd.
OS
100%
138 Market Street, #23-02, CapitaGreen, Singapore,
048946
Schroder & Co. (Asia) Limited
OS
100%
SWM Capital VCC
OS
100%
Schroder Singapore Holdings Private Limited
OS
100%
Schroder Investment Management (Singapore) Ltd.
OS
100%
China Renewable Energy Fund GP Pte. Ltd
OS
100%
77 Robinson Road, #13-00, Robinson 77, Singapore,
068896
China Renewable Energy Fund II GP Pte. Ltd.
OS
100%
South Korea
Schroders Korea Limited OS 100% 15th fl., Centropolis A, 26, Ujeongguk-ro,
Jongno-gu, Seoul, Republic of Korea
Switzerland
BlueOrchard Finance AG OS 100%
Talstrasse 11, 8001 Zurich, Switzerland
Schroders Capital Holding (Switzerland) AG
OS
100%
Schroder & Co Bank AG
OS
100%
Schroder Investment Management (Switzerland) AG
OS
100%
Schroders Capital Management (Switzerland) AG
OS
100%
Taiwan
Schroder Investment Management (Taiwan) Limited OS 100% 9/F, 108 Sec.5, Hsin-Yi Road, Hsin-Yi District,
Taipei 11047, Taiwan
United States
Schroder Venture Managers Inc.
COS 100%
7 Bryant Park, New York, New York, 10018, USA
Schroders Greencoat US GP LLC
OS
100%
Schroders Incorporated
COS 100%
9 East Loockerman Street, Dover, Kent, 19901, USA
Schroder FOCUS II GP, LLC
OS
100%
Corporate Trust Center, 1209 Orange Street,
Wilmington, Delaware, 19801, USA
Schroder Flexible Secured Income GP, LLC
OS
100%
Schroder Canada Inc.
OS
100%
Schroder Fund Advisors LLC
OS
100%
Schroder Taft-Hartley Income GP, LLC
OS
100%
Schroders Capital PILLARS GP, LLC
OS
100%
Schroders Capital ERISA Flexible Secured Income GP, LLC
OS
100%
Schroders Capital FOCUS III GP, LLC
OS
100%
Schroders Capital FOCUS IV GP, LLC
OS
100%
MPS FOCUS CO-INVEST GP, LLC
OS 100%
Schroders Capital Management (US) Inc.
OS 100%
Schroders Capital Securitized Hi-Grade Flexible Total Return GP, LLC
OS
100%
Schroder US Holdings Inc.
COS 100%
National Registered Agents, Inc., 160 Greentree Drive,
Suite 101, Dover, Delaware, 19904, USA
Schroder Investment Management North America Inc.
COS 100%
Subsidiaries where the ownership is less than 100%
Name Share class % Address
UK
Residential Land Development (GP) LLP PI g 67%
1 London Wall Place, London, EC2Y 5AU, England
Ruskin Square Phase One LLP PI g 50%
Greencoat Carlisle Place GP LLP PI f 77%
Greencoat Carlisle Place Investments Limited OS f 77%
Greencoat Cornwall Gardens GP LLP PI f 77%
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
165 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class % Address
UK (continued)
Greencoat Cornwall Gardens Investments Limited OS f 77%
1 London Wall Place, London, EC2Y 5AU, England
Greencoat Embankment GP LLP PI f 77%
Greencoat Embankment Investments Limited OS f 77%
Greencoat GRI Investments Limited OS f 77%
Greencoat Hudson GP LLP PI f 77%
Greencoat Hudson Investments Limited OS f 77%
Greencoat Sejong GP LLP PI f 77%
Greencoat Sejong Investments Limited OS f 77%
Greencoat Solar GP Unlimited OS f 77%
Greencoat Solar II GP Unlimited OS f 77%
Greencoat Solar II Investments LLP PI f 77%
Greencoat Solar Investments LLP PI f 77%
Greencoat Tachbrook GP LLP PI f 77%
Greencoat Tachbrook Investments Limited OS f 77%
Greencoat Tothill GP LLP PI f 77%
Greencoat Tothill Investments Limited OS f 77%
Greencoat Villiers GP LLP PI f 77%
Greencoat Villiers Investments Limited OS f 77%
Greencoat Wilton GP LLP PI f 77%
Greencoat Wilton Investments Limited OS f 77%
Greencoat York GP LLP PI f 77%
Greencoat York Investments Limited OS f 77%
Greencoat GRI (Feeder) GP Unlimited OS f 77%
Schroders Greencoat Francis Investments LLP PI f 77%
Schroders Greencoat Glasgow Terrace GP LLP PI f 77%
Schroders Greencoat Holdings Limited OS 77%
Schroders Greencoat Investment Limited OS f 77%
Schroders Greencoat LLP PI f 77%
Schroders Greencoat Piccadilly GP LLP PI f 77%
Schroders Greencoat Wessex Gardens GP LLP PI f 77%
Schroders Greencoat Willow GP LLP PI f 77%
Schroders Greencoat Woodmont Renewables GP LLP PI f 77%
Schroders Greencoat Beaufort GP LLP PI f 77%
Social Supported Housing CIP LLP PI 50%
Social Supported Housing GP LLP PI 50%
Greencoat Buckingham GP Unlimited OS f 77%
Greencoat Buckingham Investments LLP PI f 77%
Greencoat Capital Management Investment Limited OS f 77%
Finura Partners Limited
OS 79%
C/O Cantelowes Limited, 4th Floor, 20 Aldermanbury,
London, EC2V 7HY, England
Greencoat GRI GP LLP PI f 77%
50 Lothian Road, Festival Square, EH3 9WJ, Edinburgh,
Scotland
Greencoat Sejong FP LP PI f 77%
Schroders Greencoat Francis GP PI f 77%
Tenacity Wealth Management Limited (In Liquidation) OS m 79% Begbies Traynor, Town Wall House, Balkerne Hill,
Colchester, Essex, CO3 3AD, England
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
166 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class % Address
Argentina
Schroder Investment Management S.A.
OS
94.9%
Ing.Enrique Butty 220, Piso 12, Buenos Aires,
C1001AFB, Argentina
Schroder S.A. Sociedad Gerente de Fondos Comunes de Inversion
OS
95%
British Virgin Islands
Alpha Park Limited
OS
e
77.4%
Vistra Corporate Services Centre, Wickhams Cay II,
Road Town, Tortola, VG1110, British Virgin Islands
Flete Holdings Limited
OS
e
77.4%
Pamfleet China Limited
OS
e
77.4%
Cayman Islands
Pamfleet China Investment Management Limited
OS
e
77.4%
Maples Corporate Services Limited, PO Box 309,
Ugland House, Grand Cayman, KY1-1104,
Cayman Islands
Pamfleet China Investment Management II Limited
OS
e
54.2%
Pamfleet International Limited
OS
e
77.4%
Schroders HKHS G.P.
OS
e
77.4%
Schroder Adveq Technology Management V L.P.
PI
90%
Schroder Adveq Technology Management VI L.P.
PI
66%
Schroders Capital cPl Global Management L.P.
PI
63%
Schroders Capital cPl Global Management II L.P.
PI
89%
Schroders Capital Private Equity Asia Management L.P.
PI
76%
Schroders Capital Private Equity Asia Management II L.P.
PI
66%
Schroders Capital Private Equity Europe Management IV A L.P.
PI
60%
Schroders Capital Private Equity Europe Management IV B L.P.
PI
70%
France
Terre et Mer Holding SAS
OS
k
79.99%
1 rue Euler, 75008, Paris, France
Germany
CM Komplementär 06-379 GmbH & Co. KG
OS
94.99%
Taunustor 1, 60310, Frankfurt, Germany
Schroders Greencoat (Deutschland) GmbH
CS
f, g
77%
Schroder Real Estate Kapitalverwaltungsgesellschaft mbH
OS
99.7%
Guernsey
SV (Nominees) Limited OS i 51% PO Box 255, Trafalgar Court, Les Banques,
St. Peter Port, Guernsey, GY1 3QL, Channel Islands
Hong Kong
Pamfleet Asset Management (China) Limited
OS
e
77.4%
Level 33, 88 Queensway, Hong Kong
Pamfleet Asset Management (HK) Limited
OS
e
77.4%
Pamfleet (China II) Asset Management Limited
OS
e
54.2%
Pamfleet (HK) Limited
OS
e
77.4%
Pamfleet Holdings (Hong Kong) Limited
OS
77.4%
Indonesia
PT Schroder Investment Management Indonesia OS 99% 30th Floor, Indonesia Stock Exchange Building,
Tower 1, Jl Jendral Sudirman Kav 52-53, Jakarta,
12190, Indonesia
Ireland
Schroders Greencoat (Ireland) Limited OS f, g 77% Riverside One, 37-42 Sir John Rogerson’s Quay,
Dublin 2, D02 DX57, Ireland
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
167 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class % Address
Jersey
AAF Management I L.P.
PI
48%
26 New Street, St. Helier, Jersey, JE2 3RA,
Channel Islands
GPEP Management II L.P.
PI
71%
GPEP Management III L.P.
PI
70%
Schroders Capital Private Equity Asia Management IV L.P.
PI
70%
Schroders Capital Private Equity Europe Direct Management L.P.
PI
73%
Schroders Capital Private Equity Europe Management V L.P.
PI
75%
Schroders Capital Private Equity Europe Management VI L.P.
PI
75%
Schroders Capital Private Equity Europe Partners VII L.P
PI
47%
Schroders Capital Private Equity Europe Partners VIII L.P.
PI
78%
Schroders Capital Private Equity Europe Direct Partners II L.P.
PI
67%
Schroders Capital Private Equity Global Innovation Management VII L.P.
PI
46%
Schroders Capital Private Equity Global Innovation Management VIII L.P.
PI
78%
Schroders Capital Private Equity Global Management L.P.
PI
71%
Schroders Capital Private Equity Secondaries Management II L.P.
PI
52%
Schroders Capital Private Equity US Management III L.P
PI
51%
Schroders Capital Private Equity US Management IV L.P.
PI
73%
TMC Management I L.P.
PI
55%
TMC Management II L.P.
PI
50%
Wilmersdorf Secondary Management L.P.
PI
71%
UK Retirement Living (CIP) GP Limited OS 50% 47 Esplanade, St. Helier, Jersey, JE1 0BD, Channel
Islands
Luxembourg
Schroders Capital Hotels (CIP) SCSp
PI
75%
5 rue Höhenhof, L-1736 Senningerberg,
Luxembourg
SEOHF (CIP) SCSp
PI
99.9%
SEOHF AGGREGATOR (CIP) SCSp
PI
79%
SRE ReLF (CIP) SCSp
PI
74.7%
SRE SoHo (CIP) SCSp
PI
83.1%
SRE Invest SCSp PI 99.7% 15 boulevard F.W. Raiffeisen, L-2411, Luxembourg
Mexico
Consultora Schroders, S.A. de C.V. OS c, d 99.99% Montes Urales 760 Desp. 101, Col. Lomas de
Chapultepec, DF, 11000, Mexico
Netherlands
Data Invest B.V.
OS
21.9%
Strawinskylaan 1547, WTC Level 15, 1077 XX
Amsterdam, Netherlands
ITC Invest B.V.
OS
37.5%
RES Retail B.V.
OS
51.5%
Senectute Invest B.V.
OS
45.9%
Frame Offices B.V. OS 24% Coolsingel 104, 3011 AG, Rotterdam, Netherlands
Singapore
Pamfleet Asset Management (Singapore) Pte. Limited OS e 77.4% 138 Market Street, #23-01, CapitaGreen, Singapore,
048946
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
168 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class % Address
United States
Schroders Greencoat (US) LLC
OS
f, g
77%
Maples Fiduciary Services (Delaware) Inc., 4001
Kennett Pike, Suite 302, Wilmington, Delaware
19807, USA
Greencoat Columbus GP LLC
OS
f
77%
Greencoat Columbus II GP LLC
OS
f
77%
SG US Blocker LLC
PI
77%
The Corporation Trust Company, 1209 Orange Street,
Wilmington DE 19801, USA
SG US Aggregator LLC
PI
77%
Associates and joint ventures
Name Share class % Address
UK
Chartered Independent Limited OS h 49% 6 Church Street, Wellington, Telford, TF1 1DG,
England
Kellands (Bristol) Limited OS 30.8% Quays Office Park, Conference Avenue,
Portishead, Bristol, BS20 7LZ, England
Future Growth Capital (Holdings) Limited
OS
d
50.1%
1 London Wall Place, London, EC2Y 5AU, England
Future Growth Capital Limited
OS
50.1%
Nippon Life Schroders Asset Management Europe Limited
OS
c
33%
British Virgin Islands
Graceful Lane Limited OS 30% Vistra Corporate Services Centre, Wickhams Cay II,
Road Town, Tortola, VG1110, British Virgin Islands
China
Bank of Communications Schroder Fund Management Company
Limited
OS 30% 2nd Floor Bank of Communications Tower,
188 Middle Yincheng Road, Pudong New Area,
Shanghai, 200120, China
Schroder BOCOM Wealth Management Co, Limited OS 51% Floor 59, Wheelock Square, No. 1717, West
Nanjing Road, Jingan District, Shanghai, China
France
JV Hotel Paris La Villette SAS
OS
50%
1 rue Euler, 75008, Paris, France
Guernsey
Schroder Ventures Investments Limited OS, R, D, B
Preference
i 51.3% PO Box 255, Trafalgar Court Les Banques,
St. Peter Port, Guernsey, GY1 3QL, Channel Islands
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
169 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Associates and joint ventures continued
Name Share class % Address
India
Axis Asset Management Company Limited OS g 25% 1st Floor, Axis House C-2 Wadia International Centre,
Pandurang Budhkar Marg, Worli-Mumbai, 400025,
India
Axis Mutual Fund Trustee Limited OS g 25%
Singapore
Nippon Life Global Investors Singapore Limited OS 33% 138 Market Street, #34-02, CapitaGreen, 048946,
Singapore
United States
A10 Capital Parent Company LLC COS 19.3% 800 W, Main Street, Suite 1100, Boise, Idaho, ID 83702,
United States of America
Share class abbreviations
CS
Capital shares.
COS
Common stock.
NCRPS
Non-cumulative redeemable
preference shares.
CPS
Convertible preference shares.
D
Deferred shares.
OS
Ordinary shares.
PI
Partnership interest.
PS
Promote shares.
R Redeemable preference shares.
Footnotes
a Held directly by the Company.
b Dormant company.
c The Company holds ordinary B shares.
d The Company holds ordinary A shares.
e Owned through Pamfleet Holdings (Hong Kong)
Limited.
f Owned through Schroders Greencoat Holdings
Limited.
g Financial year end 31 March.
h Financial year end 31 May.
i Financial year end 30 June.
j Financial year end 31 August.
k Financial year end 30 April.
l Financial year end 30 November.
m Financial year end 28 February.
n Financial year end 31 January.
o Financial year end 30 December.
p Financial year end 29 December.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
170 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(b) Related undertakings arising from the Company’s interests in structured entities
The Company’s related undertakings also include funds in which it holds investments. These include fully and partially owned funds that are
classified as subsidiaries. Due to the number of share classes or unit classes that can exist in these vehicles, a significant holding in a single
share class or unit class is possible without that undertaking being classified as a subsidiary or associate.
Fund name Share/unit class
Holding in share/
unit class
Total holding in
undertaking via
share/unit class
UK
Schroder Active Asset Allocation Portfolio
Q1 Accumulation 100% 100%
Schroder Diversified Growth Fund*
I Accumulation 90% 86%
Schroder Diversified Growth Fund*
X Accumulation 35% 1%
Schroder European Fund
I Income 44% 2%
Schroder Flexible Retirement Fund*
X Accumulation 100% 85%
Schroder Global Emerging Markets Fund*
A Accumulation 66% 37%
Schroder Global Equity Fund
I Accumulation 33% 5%
Schroder Global Sustainable Food And Water Fund*
X Accumulation 60% 60%
Schroder Global Sustainable Value Equity Fund
X Accumulation 55% 6%
Schroder India Equity Fund*
X Accumulation 100% 73%
Schroder Institutional UK Smaller Companies
X Accumulation 74% 5%
Schroder Life Dynamic Structured Equity Fund
I Accumulation 42% 42%
Schroder Life Global Diversified Equity
I Accumulation 55% 55%
Schroder Life Matching Index Linked Gilt Fund (2048-57)
I Accumulation 100% 2%
Schroder Life Matching Index Linked Gilt Fund (2058-77)
I Accumulation 100% 6%
Schroder Life Matching Nominal Gilt Fund (2038-57)
I Accumulation 100% 1%
Schroder Life Matching Nominal Gilt Fund (2058-77)
I Accumulation 100% 9%
Schroder Life UK Equity Portfolio
IES 1 100% 1%
Schroder Long Dated Corporate Bond Fund
I Accumulation 47% 11%
Schroder QEP Global Active Value Fund
I Accumulation 99% 26%
Schroder Sterling Broad Market Bond
I Accumulation 34% 2%
Schroder Sustainable Future Multi-Asset Fund*
Z Accumulation 47% 37%
Schroder Sustainable Multi-Factor Equity Fund*
X Accumulation 75% 50%
Schroders Capital UK Innovation LTAF
XT Accumulation 100% 1%
Schroders Greencoat Global Renewables+ LTAF
GBP Accumulation
100%
13%
Australia
Schroder Equity Opportunities Fund
I Accumulation 100% 0%
Brazil
Schroder Premium Diversified Credit Vintage A FIC FIM CP
Unspecified 80% 80%
Cayman Islands
Musashi Smart Premia Fund (Exclusively For Qualified Institutional Investors
With Re-Sale Restriction For The Japanese Investors)
B 100% 0%
Musashi Smart Premia Fund (Exclusively For Qualified Institutional Investors
With Re-Sale Restriction For The Japanese Investors)
C 100% 0%
China
Schroder China Dynamic Equity Fund
A Accumulation 26% 17%
Schroder Hengxiang Bond Fund
A Accumulation 82% 15%
Guernsey
Schroder Institutional Developing Markets Fund
B Income 100% 4%
Hong Kong
Schroder Asian Asset Income Fund
I Accumulation USD 100% 0%
Ireland
Schroder Global Investment Grade Corporate Bond Active UCITS ETF
EUR Hedged
23%
0%
Schroder Global Investment Grade Corporate Bond Active UCITS ETF
CHF Hedged
25%
0%
Luxembourg
BlueOrchard Covid-19 Fund
ST1 and ST2 20% 7%
BlueOrchard Impact Credit Fund
BO 27% 14%
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
171 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(b) Related undertakings arising from the Company’s interests in structured entities continued
Luxembourg (continued)
BlueOrchard Latin America and the Caribbean Gender, Diversity and Inclusion
Fund
BlueOrchard Affiliates 100% 3%
BlueOrchard Sustainable Asset Fund A 22% 22%
Schroder Alternative Solutions Commodity Fund I Accumulation GBP Hedged 100% 0%
Schroder Alternative Solutions Commodity Total Return Fund I Accumulation GBP Hedged 97% 1%
Schroder GAIA Oaktree Credit* E Accumulation 37% 22%
Schroder GAIA Oaktree Credit* I Accumulation 50% 10%
Schroder ISF Alternative Securitised Income IZ Accumulation 50% 0%
Schroder ISF Blueorchard Emerging Markets Climate Bond I Accumulation 100% 0%
Schroder ISF Carbon Neutral Credit* I Accumulation 100% 48%
Schroder ISF Circular Economy I Accumulation 98% 98%
Schroder ISF Emerging Europe I Accumulation 33% 0%
Schroder ISF Emerging Markets Debt Total Return I Accumulation GBP Hedged 100% 0%
Schroder ISF Emerging Markets Debt Total Return I Accumulation EUR Hedged 100% 0%
Schroder ISF Emerging Markets Equity Impact* I Accumulation 42% 39%
Schroder ISF Emerging Markets Local Currency Bond* I Accumulation 30% 29%
Schroder ISF Emerging Markets Multi Asset I Accumulation 100% 0%
Schroder ISF EURO Credit Conviction I Accumulation 100% 0%
Schroder ISF European Equity Impact* I Accumulation 100% 52%
Schroder ISF European Special Situations I Accumulation 100% 2%
Schroder ISF Global Climate Leaders* I Accumulation 51% 30%
Schroder ISF Global Consumer Trends* I Accumulation 100% 77%
Schroder ISF Global Energy I Accumulation 100% 0%
Schroder ISF Global Equity Impact I Accumulation 100% 96%
Schroder ISF Global Equity Yield I Accumulation EUR 100% 0%
Schroder ISF Global Inflation Linked Bond I Accumulation 100% 0%
Schroder ISF Global Multi-Asset Balanced I Accumulation CHF Hedged 98% 0%
Schroder ISF Global Multi-Asset Income I Accumulation 100% 0%
Schroder ISF Global Recovery I Accumulation 71% 1%
Schroder ISF Japanese Opportunities I Accumulation 39% 1%
Schroder ISF Multi-Asset Growth And Income I Accumulation 93% 3%
Schroder ISF Nordic Micro Cap I Accumulation 100% 0%
Schroder ISF Nordic Smaller Companies I Accumulation 100% 0%
Schroder ISF QEP Emerging Markets Ex China Core* I Accumulation 100% 92%
Schroder ISF Robotics And Automation I Accumulation 100% 6%
Schroder ISF Strategic Bond I Accumulation 100% 0%
Schroder ISF Sustainable Global Credit Income Short Duration I Accumulation GBP Hedged 100% 0%
Schroder ISF Sustainable Global Multi Credit I Accumulation EUR Hedged 100% 0%
Schroder ISF Swiss Equity I Accumulation 100% 0%
Schroder Matching Plus Buy And Maintain Credit Sterling Cashflow (2018-2032) I Distribution 30% 16%
Schroder Matching Plus Buy And Maintain Credit Sterling Cashflow (2032-2040) I Distribution 49% 28%
Schroder Matching Plus Synthetic Index Linked Gilt Fund (2028 - 2037) I Accumulation 31% 31%
Schroder Matching Plus Synthetic Index Linked Gilt Fund (2048-2057) I Accumulation 21% 21%
Schroder Matching Plus Synthetic Nominal Gilt Fund (2018 - 2037) I Accumulation 35% 35%
Schroder Matching Plus Synthetic Nominal Gilt Fund (2038 - 2057)* I Accumulation 47% 47%
Schroder Special Situations Fund Wealth Management USD Growth* IS Accumulation 57% 29%
Schroder SSF Sterling Liquidity Plus X Accumulation 100% 2%
Schroders Capital Europe Infrastructure Credit FCP-FPS I Accumulation 100% 3%
Schroders Capital Real Estate Debt Senior Loan EUR Unspecified 100% 96%
Schroders Capital Semi-Liquid European Loans I Accumulation GBP Hedged 100% 2%
Schroders Capital Semi-Liquid European Loans C Accumulation 67% 1%
Schroders Capital Semi-Liquid Global Energy Infrastructure C Accumulation 55% 0%
Schroders Capital Semi-Liquid Global Innovation Private Plus* I Accumulation 100% 49%
Fund Name Share/unit class
Holding in share/
unit class
Total holding in
undertaking via
share/unit class
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
172 Schroders Annual Report and Accounts 2025
Luxembourg (continued)
Schroders Capital Semi-Liquid Global Innovation Private Plus* C Accumulation 78% 5%
Schroders Capital Semi-Liquid Global Private Equity ELTIF* I Accumulation 53% 47%
Schroders Capital Semi-Liquid Global Private Equity ELTIF* R2 Accumulation 98% 2%
Schroders Capital Semi-Liquid Global Real Estate Total Return* I Accumulation 100% 36%
Schroders Capital Semi-Liquid Global Real Estate Total Return* C Accumulation 62% 4%
Schroders Capital Semi-Liquid High Income Credit* I Accumulation 100% 100%
SIF Core Insurance Linked Securities I Accumulation 24% 16%
SSSF Optimum Euro Credit* I Accumulation 43% 41%
SSSF Structured Income I Accumulation 100% 2%
United States
Hartford Schroders International Contrarian Value Fund Unspecified 100% 10%
Hartford Schroders Private Opportunities Fund SD Accumulation 27% 27%
Lincoln Inflation Plus I I Accumulation 98% 47%
Lincoln U.S. Equity Inc Maximizer I I Accumulation 99% 33%
Fund Name Share/unit class
Holding in share/
unit class
Total holding in
undertaking via
share/unit class
*Investments in structured entities that are consolidated.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
173 Schroders Annual Report and Accounts 2025
35 Subsidiaries and other related undertakings continued
(b) Related undertakings arising from the Company’s interests in structured entities continued
The registered offices for each of the related undertakings listed on pages 171 to 173 are reflected by country below:
UK
1 London Wall Place, London, EC2Y 5AU, England
Australia
Level 20, Angel Place, 123 Pitt Street, Sydney, NSW 2000, Australia
Brazil
Av. Presidente Wilson, nº 231, 11º andar, Rio de Janeiro, Brazil
Cayman Islands
Maples Corporate Services Limited, Ugland House, PO Box 309,
Grand Cayman, KY11-1104, Cayman Islands
China
Unit 33T52A, 33F Shanghai World Financial Center, 100 Century
Avenue, Shanghai, China
Guernsey
PO Box 255, Trafalgar Court, Les Banques, St Peter Port, Guernsey
Hong Kong
HBSC Institutional Trust Services (Asia) Limited, 1 Queen’s Road
Central, Hong Kong
Ireland
10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland
Luxembourg
The registered office for the Luxembourg-related undertakings is
5 rue Höhenhof, L-1736 Senningerberg, Luxembourg, except for
thefollowing:
The registered office for the following related undertakings is
2rue d’ Alsace, L-1122 Luxembourg
BlueOrchard LAC GDI
BlueOrchard Covid-19 Fund
The registered office for the following related undertakings is
15, Boulevard F.W. Raiffeisen L - 2411 Luxembourg
Schroders Capital Real Estate Debt Senior Loan EUR
United States
The registered office for the following related undertakings is 690
Lee Road, Wayne, Pennsylvania, 19087, USA
Hartford Schroders International Contrarian Value Fund
The registered office for the following related undertakings is
251 Little Falls Drive, Wilmington, DE 19808, USA
Hartford Schroders Private Opportunity Fund
The registered office for the following related undertakings is
C/O Corporation Service Company, 251 Little Falls Drive, Wilmington,
19808, USA
Lincoln Inflation Plus I
Lincoln U.S. Equity Inc Maximizer I
36 Subsequent events
Subsequent to the year end, the Board of Schroders plc reached a preliminary agreement with Pantheon LLC, a wholly-owned subsidiary of
Nuveen, LLC, on the financial terms of a possible offer to acquire the entire issued and to be issued ordinary share capital of Schroders plc, to
be implemented by way of a scheme of arrangement.
Strategic report Governance Financial statements Shareholder and sustainability information
Consolidated financial statements continued
Notes to the accounts continued
174 Schroders Annual Report and Accounts 2025
Independent auditor’s report to the
members of Schroders plc
Opinion
In our opinion:
– Schroders plc’s Group financial statements and Parent company
financial statements (the ‘financial statements’) give a true and fair
view of the state of the Group’s and of the Parent company’s
affairs as at 31 December 2025 and of the Group’s profit for the
year then ended;
– the Group financial statements have been properly prepared in
accordance with UK-adopted international accounting standards;
– the Parent company financial statements have been properly
prepared in accordance with UK-adopted international
accounting standards as applied in accordance with section 408
of the Companies Act 2006; and
– the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
We have audited the financial statements of Schroders plc (the
‘Parent company’) and its subsidiaries (the ‘Group’) for the year
ended31 December 2025 which comprise:
Group Parent company
Consolidated income
statementfor the year ended
31December 2025
Schroders plc - Statement of
financial position at 31
December 2025
Consolidated statement of
comprehensive income for the
year ended 31 December 2025
Schroders plc - Statement of
changes in equity for the year
ended 31 December 2025
Consolidated statement of
financial position at 31
December 2025
Schroders plc - Cash flow
statement for the year ended 31
December 2025
Consolidated statement of
changes in equity for the year
ended 31 December 2025
Schroders plc – Notes to the
accounts – 27 to 36, including
material accounting policy
information
Consolidated cash flow
statement for the year ended 31
December 2025
Notes to the accounts 1 to 26
including material accounting
policy information and
Presentation of the
financialstatements
The financial reporting framework that has been applied in their
preparation is applicable law and UK-adopted international
accounting standards and as regards the Parent company
financialstatements, as applied in accordance with section 408 of
theCompanies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our responsibilities
under those standards are further described in the ‘Auditor’s
responsibilities for the audit of the financial statements’ section of
our report. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion
Independence
We are independent of the Group and Parent company in
accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the Financial
Reporting Council’s (‘FRC’) Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were
not provided to the Group or the Parent company and we remain
independent of the Group and the Parent company in conducting
the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Ourevaluation of the Directors’ assessment of the Group and
Parentcompany’s ability to continue to adopt the going concern
basis of accounting included:
– assessing the assumptions used in management’s five-year
forecast by comparing to internal management information,
external market sources and current market conditions. We also
determined that the model is appropriate to enable management
to make an assessment of the going concern status of the Group
for a period of twelve months from the date the financial
statements are approved. We also performed back-testing on
prior year forecasts by comparing them to the Group’s results
over the same periods;
– evaluating the capital and liquidity position of the Group by
reviewing the Internal Capital Adequacy Assessment Process,
theInternal Liquidity Adequacy Assessment Process and the
Recovery Plan;
– assessing the appropriateness of the stress and reverse stress
test scenarios by considering the key risks identified by
management, our understanding of the business and the
external market environment. We evaluated the assumptions
used in the scenarios by comparing them to internal
management information and external market sources, tested
the clerical accuracy and assessed the conclusions reached in
thestress and reverse stress test scenarios;
– assessing the plausibility of the available options identified by
management to mitigate the impact of the key risks by
comparing them to our understanding of the Group;
– performing enquiries of management and those charged with
governance to identify risks or events that may impact the
Group’s ability to continue as a going concern. We also reviewed
management’s paper describing their assessment of going
concern approved by the Board and minutes of meetings of the
Board and its committees; and
– assessing the appropriateness of the going concern disclosures
by comparing them to management’s assessment for consistency
and for compliance with the relevant reporting requirements.
Based on the work we have performed, we have not identified any
material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the Group and Parent
company’s ability to continue as a going concern for twelve months
from the date the Annual Report and Accounts are approved.
In relation to the Group and Parent company’s reporting on how
they have applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the
Directors’ statement in the financial statements about whether the
directors considered it appropriate to adopt the going concern
basisof accounting.
Our responsibilities and the responsibilities of the Directors with
respect to going concern are described in the relevant sections of
this report. However, because not all future events or conditions can
be predicted, this statement is not a guarantee as to the Group and
Parent company’s ability to continue as a going concern.
Strategic report Governance Financial statements Shareholder and sustainability information
Independent auditor’s report to the members of Schroders plc
175 Schroders Annual Report and Accounts 2025
Overview of our audit approach
Audit scope – The Group is comprised of over 300 legal
entities domiciled in multiple countries.
– Certain of the Group’s processes over
financial reporting are centralised in key
operations hubs in London, Luxembourg,
Singapore, Zurich and Horsham. Where
appropriate, testing was performed in
theselocations.
– Our scoping accounted for 93% of revenue,
98% of profit before tax and 98% of
totalassets.
Key audit
matters
– Improper recognition of revenue and cost
ofsales
– Incorrect accounting for transformation
programmes and portfolio restructuring
Materiality – Overall Group materiality of £30.7 million
which represents 5% of adjusted profit
before tax.
An overview of the scope of the Parent company and
Group audits
Tailoring the scope
We have followed a risk-based approach when developing our audit
approach to obtain sufficient and appropriate audit evidence on
which to base our audit opinion. We performed risk assessment
procedures, with input from our overseas auditors, to identify and
assess risks of material misstatement of the Group financial
statements and identified significant accounts and disclosures.
Our audit was scoped by considering our understanding of the
Group and its business environment, its business activities and the
components that make up the Group, the applicable financial
reporting framework, the Group’s system of internal control, the
existence of centralised processes, IT applications, relevant
internalaudit results and the potential impact of climate change.
Ourapproach was designed to reflect how the Group is organised
aswell as ensuring our audit was both effective and risk focused,
with input from our component auditors.
Due to the centralised nature of the business, which includes shared
service centres and centralised processes, a significant portion of our
testing was performed centrally by the Group audit team in the UK
(‘the Group team’). This included certain procedures over revenue,
cost of sales, journal entries, taxation, variable compensation,
defined benefit pension schemes, provisions and information
technology controls. We considered quantitative and qualitative
factors regarding our scoping, including where we identified that
processes, controls and financial reporting were not centrally
managed, and instead performed locally.
Our scoping accounted for 93% of revenue, 98% of profit before tax
and 98% of total assets.
Our scoping to address the risk of material misstatement for
eachkey audit matter is set out in the key audit matters section of
our report.
Involvement with overseas teams
In establishing our overall approach to the Group audit, we
determined the type of work that needed to be undertaken at each
of the entities by us, as the Group audit engagement team, or by
overseas component auditors operating under our instruction. In
these instances, we received reporting from overseas component
audit teams, including Luxembourg, Switzerland and Singapore.
The Group team continued to follow a programme of planned visits
designed to support the oversight by the Senior Statutory Auditor of
overseas component audit teams. These visits involved gaining a
greater understanding of the business issues faced in each location,
discussing the audit approach with the local team and any issues
arising from their work, reviewing relevant audit working papers, and
attending meetings with local management. The Group team
interacted regularly with the component teams where appropriate
during various stages of the audit, reviewed relevant working papers
and were responsible for the scope and direction of the audit
process. Where relevant, the section on key audit matters details the
level of involvement we had with component auditors to enable us to
determine that sufficient audit evidence had been obtained as a
basis for our opinion on the Group as a whole.
This, together with the additional procedures performed at Group
level, gave us appropriate evidence for our opinion on the Group
financial statements.
Climate change
The Group has determined that the majority of its climate-related
risk lies in the assets it manages on behalf of its clients. This is
primarily explained in the Task Force for Climate related Financial
Disclosures and on page 31 in the Risk Management section of the
Annual Report and Accounts. The Group has also explained their
climate commitments on page 186. Allof these disclosures form part
of the ‘Other information’, ratherthan the audited financial
statements. Our procedures on these unaudited disclosures
therefore consisted solely of considering whether they are materially
inconsistent with the financial statements or our knowledge
obtained in the course of the audit or otherwise appear to be
materially misstated, in line with our responsibilities in relation to
‘Other information’.
In planning and performing our audit we assessed the potential
impacts of climate change on the Group’s business and any
consequential material impact on its financial statements.
The Group has explained in the Estimates and judgements section
ofthe Presentation of the financial statements on page 151 howthey
have reflected the impact of climate change in their financial
statements where management consider it appropriate. The
principal areas of consideration by management include the
measurement of financial assets and impairment assessments.
Significant judgements and estimates relating to climate change are
included within this section.
Our audit effort in considering the impact of climate change on the
financial statements was focused on evaluating management’s
assessment of the impact of climate risk, physical and transition,
theirclimate commitments, the effects of material climate risks
disclosed on pages 187 to 188 and the significant judgements and
estimates, and whether these have been appropriately reflected by
management in reaching their judgements in relation to the
measurement of financial assets and their impairment assessments.
As part of this evaluation, we performed our own risk assessment,
supported by our internal climate change specialists, to determine
the risks of material misstatement in the financial statements from
climate change which needed to be considered in our audit.
We also challenged the Directors’ considerations of climate change
risks in their assessment of going concern and viability and
associated disclosures.
Based on our work we have not identified the impact of climate
change on the financial statements to be a key audit matter or as a
factor that impacts a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had
the greatest effect on: the overall audit strategy, the allocation of
resources in the audit; and directing the efforts of the engagement
team. These matters were addressed in the context of our audit of
the financial statements as a whole, and in our opinion thereon, and
we do not provide a separate opinion on these matters.
Strategic report Governance Financial statements Shareholder and sustainability information
Independent auditor’s report to the members of Schroders plc continued
176 Schroders Annual Report and Accounts 2025
Risk Our response to the risk
Group only risk:
Improper recognition of revenue and cost
of sales (revenue £3,250.7 million, cost of
sales £746.4 million, 2024: revenue
£3,067.0 million, cost of sales £697.0
million)
Refer to the Audit and Risk Committee report
(page 53) and Note 2 of the Consolidated
financial statements.
Schroders manages mutual funds and private
funds (earning ‘gross fund fees’) in numerous
domiciles, which consist of many share classes.
Schroders also manages segregated portfolios
and unitised mandates for a range of
institutions. In addition, Schroders provides
wealth management services. The inputs and
calculation methodologies that drive the fees
vary significantly across this population. For
example, performance fees, fees related to
segregated accounts and fees generated
fromprivate assets have a range of
calculationmethodologies.
As part of this Schroders has fee expense
agreements in place with many parties.
Theseexpenses include commissions, carried
interest payable, external fund manager fees,
expenses paid on behalf of UK-managed
funds, and distribution fees payable to
financial institutions, investment platform
providers and financial advisers. The expenses
are generally based on Assets under
management (‘AUM’).
For certain revenue streams, management
must apply judgement in accordance with IFRS
15 – Revenue from contracts with customers
(‘IFRS 15’) to determine whether it is highly
probable that a significant reversal will not
occur in the future.
The following are identified as the key risks
orsubjective areas of revenue and cost of
sales recognition:
– Fee rates: Not all agreements in place have
been identified and accounted for. Terms
have not been correctly interpreted or
entered into the fee calculation and billing
or expense systems.
– AUM: There is a risk AUM is not accurate
and has not been properly attributed to
agreements, or third party fee or fee
expense arrangements.
– Calculation: Errors occur in externally
calculated revenues and manually
calculated revenues, such as gross fund
fees, performance fees, private asset fees
and solutions fees. Inappropriate
judgements are made by management in
the calculation and recognition of carried
interest receivable and payable.
There is also the risk that management may
influence the timing or recognition of
revenueand cost of sales in order to meet
market expectations or net operating income-
based targets.
We have:
– confirmed and updated our understanding of the procedures and controls in place,
both at Schroders through walkthrough procedures, and at third party administrators
(‘TPAs’) through review of independent controls assurance reports;
– IT systems: tested the controls over access to, and changes to, the systems
underpinning the processes, including testing controls over the flow of data between
systems for completeness and accuracy;
– fee agreements: tested the controls over new and amended fee agreements or
prospectuses. For a sample of fees, agreed the fee terms used in the calculation to
investment management agreements (‘IMAs’), fee letters or fund prospectuses;
– AUM: tested the controls in place, validating the source of the AUM used in the fee and
fee expense calculations. For a sample of fees, tested that AUM included in the fee
calculation systems agreed to administrator reports or Schroders’ investment
management systems;
– billing and cash management: For a sample of fees and expenses, compared the
amounts recorded to the cash received/paid, checking whether the revenue/cost of
salehas been recorded in the correct period, and assessed the recoverability of
debtorsthrough the testing of subsequent cash receipts and inspection of the aged
debtors report;
– analytical procedures: performed analytics over AUM-driven net operating revenues,
including cost of sales. We considered the expected margin per segment, ratio of cost
of sales to revenue and challenged management based on our expectations formed;
– review of other information: inspected the global operational incident log and
complaints registers to identify significant errors or control deficiencies reported by
management; and
– management override: in order to address the residual risk of management override
we performed enquiries of management, read minutes of board and committee
meetings held throughout the year and performed journal entry testing.
Additional procedures for specific revenue streams and cost of sales:
– Gross fund fees: for a sample of gross fund fees billed directly by the TPA, compared
the revenue recorded by Schroders to reports provided by the TPA;
– Segregated/unitised revenue: tested automated controls over the arithmetical
accuracy of a sample of fee calculations within the relevant systems including a
substantive test for each different fee type including where fee rebates are recognised
on a net basis;
– Wealth management revenue: for a sample of manual and automated fee and
commission income items, we agreed the fee rates through to customer agreements,
traced the fees charged to portfolio statements and recalculated the fee income
andtested the accrued revenue by agreeing a sample of transactions to
portfoliostatements; and
– Cost of sales processed on Group finance operations model: tested the controls
over new agreements and amended fee expense agreements. For a sample of fee
expenses calculated by Schroders and an additional sample calculated by third
parties,agreed the fee expense terms used in the calculation to IMAs, fee letters or
rebate agreements.
We have not tested controls for manually calculated revenues. Additional procedures are
listed below:
– Carried interest: challenged management over the judgements made by the
engagement team with respect to the risk and estimates used in the valuation of the
carried interest receivable and payable. This includes the constraints applied under IFRS
15. For a sample of funds, we have tested the inputs used in the calculations to
accounting records, third party sources and legal agreements as well as recalculated
the value of the carried interest liability; and compared the discounted carried interest
expense to the cost of sales recorded; and
– Solutions fees, performance fees and certain private assets fees: For a sample we
have agreed the inputs used in the relevant calculations to third party sources and
benchmarks, where applicable, and legal agreements and recalculated the value of the
relevant fee.
Strategic report Governance Financial statements Shareholder and sustainability information
Independent auditor’s report to the members of Schroders plc continued
177 Schroders Annual Report and Accounts 2025
Key observations communicated to the Schroders Audit and Risk Committee
Transactions tested have been recognised in accordance with the underlying agreements or other supporting documentation. Revenue has
been recorded materially in accordance with IFRS 15.
Based on the procedures performed, we have no matters to report in respect of revenue recognition.
How we scoped our audit to respond to the risk
Audit procedures over this risk covered 93% of the total revenue and 96% of the total cost of sales. Due to the centralised nature of the
revenue process, the majority of our revenue testing was performed by the Group team for Asset Management revenue, and by the Group
and Switzerland teams for Wealth Management revenue. All cost of sales testing was undertaken by the Group team.
Risk Our response to the risk
Group only risk:
Incorrect recognition of the impact of
thetransformation programme and
portfolio restructuring
Refer to the Report of the Board Audit and Risk
Committee; Accounting policies; and Notes 2, 3,
10 and 13 of the Consolidated Financial
Statements.
The Group reported an impact on Operating
profit for transformation costs of £79.4 million
and portfolio restructuring of £60.8 million,
including a gain on the share exchange for
their 49.9% holding in Schroders Personal
Wealth of £113.3 million. The Group’s
consolidated statement of financial position
includes goodwill and intangible assets
balances of £1,715.8 million as well as a
carrying value of associates and joint ventures
of £376.1 million.
Management are undergoing a three-year
transformation programme to simplify their
business portfolio, including restructuring or
exiting certain businesses, reduce operating
expenses and reinvest in talent through
selective hiring. In aggregate, these actions
have had a material effect on the Group’s
profit before tax.
Judgement is required to determine the
accounting for share exchanges and the
disposal of businesses.
Management are required to consider the
impact of changes to their business portfolio
on the carrying value of goodwill, intangibles
assets and associates and joint ventures.
Judgement is required to determine the
groups of assets (‘CGUs’) that should be
assessed for impairment and whether
impairment indicators exist for intangible
assets and associates and joint ventures,
including considering the performance of
previously acquired businesses. Where
impairment assessments are performed there
is complexity in estimating the value-in-use of
businesses or assets, including a risk that
incorrect assumptions are made regarding
future cashflows, discount rates, long-term
growth rates or customer retention rates.
Management are also required to consider the
disclosure requirements for restructuring
costs and items of income and expense that
are one-off in nature, including the impact on
Adjusted Profit Measures.
We have:
– updated our understanding of the processes and controls relevant to corporate activity
and impairment assessments;
– We held discussions with management and reviewed relevant Board papers and
minutes to understand the governance structures and oversight for the accounting
oftransactions; and
– considered management’s share exchange and disposal accounting treatment’s
compliance with IFRS. We challenged the judgements made by forming our own
independent view of the accounting treatment, based on the terms of the executed
legal agreements.
Impairment assessments:
– considered the appropriateness of the CGUs or groups of CGUs identified for which a
goodwill impairment assessment is performed;
– performed a search for impairment indicators for each CGU or group of CGUs, material
acquired intangible assets, and associate or joint venture, such as determining if there
has been a material decline in revenues and considering external market factors and
management’s portfolio restructuring;
– considered the appropriateness of the useful economic life (‘UEL’) over which material
intangible assets are amortised;
– with the support of our valuations specialists, considered the appropriateness of the
valuation methodology, terminal growth rate and discount rate used in the assessment
of impairment for each CGU, with reference to comparable companies and observable
market data. Using our specialists’ own assumptions, we derived a reasonable range for
the recoverable value for each CGU or group of CGUs and compared this to
management’s value-in-use;
– compared the future cash flow forecasts against divisional budgets, determining
whether key judgements are in line with our understanding of the business,
transformation programme and third party data;
– back tested the accuracy of prior cash flow forecasting against historical performance;
and
– performed sensitivity analysis by flexing the key assumptions to establish the values that
would result in an impairment.
Disclosures:
– we assessed the adequacy of disclosures made in the financial statements and their
compliance with the relevant accounting standards.
Key observations communicated to the Schroders Audit and Risk Committee
Transactions tested have been recognised in accordance with the relevant accounting standards. Based on the procedures performed, we
have no matters to report in respect of incorrect recognition of the impact of the transformation programme and portfolio restructuring.
How we scoped our audit to respond to the risk
All audit work performed to address this risk was undertaken by the Group team.
Strategic report Governance Financial statements Shareholder and sustainability information
Independent auditor’s report to the members of Schroders plc continued
178 Schroders Annual Report and Accounts 2025
In the current year, we have added a key audit matter in relation to
incorrect recognition of the impact of the transformation
programme and portfolio restructuring. This is due to the level of
judgement and estimation required to account for these changes to
the Group’s strategy.
With the exception of the additional key audit matter, there have
been no further changes to our risk assessment from the 2024 Audit
key audit matters. The incorrect recognition of revenue and cost of
sales key audit matters have been combined in the current year.
Our application of materiality
We apply the concept of materiality in planning and performing the
audit, in evaluating the effect of identified misstatements on the
audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in
the aggregate, could reasonably be expected to influence the economic
decisions of the users of the financial statements. Materiality provides a
basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be £30.7 million (2024:
£32 million), which is 5% of adjusted profit before tax (2024: 5% of
operating profit). Following the change in presentation of the income
statement in the year, we believe that adjusted profit before tax is
the most relevant performance measure to the stakeholders of the
Group. See below showing our calculation of the materiality basis:
Starting basis
Profit before tax - £673.8 million
Adjustments
Restructuring costs - £54.4 million
Gain on disposal - Schroders Personal Wealth -
£113.3 million
Materiality
Adjusted profit before tax £614.9 million
Materiality of £30.7 million (5% of
materialitybasis)
We determined materiality for the Parent company to be £45 million
(2024: £46 million), which is 1% (2024: 1%) of net assets. The Parent
company primarily holds investments in Group entities and, therefore,
net assets is considered to be the key focus for users of the
financialstatements.
During the course of our audit, we reassessed initial materiality
based on 31 December 2025 financial statement amounts and
adjusted our audit procedures accordingly.
Performance materiality
The application of materiality at the individual account or balance level.
It is set at an amount to reduce to an appropriately low level the
probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment
of the Group’s overall control environment, our judgement was that
performance materiality was 75% (2024: 75%) of our planning
materiality, namely £23.1 million (2024: £24 million). We have used
athreshold consistent with 2024 due to our prior experience as to
the low occurrence of material misstatements and our conclusions
as to the effectiveness of the control environment and
accountingprocesses.
Audit work was undertaken at the entity level for the purpose of
responding to the assessed risks of material misstatement of the
group financial statements. The performance materiality set for each
entity is based on the relative scale and risk of the entity to the
Group as a whole and our assessment of the risk of misstatement at
that entity. In the current year, the range of performance materiality
allocated to individual entities was £4.6 million to £12.7 million (2024:
£4.8 million to £13.2 million).
Reporting threshold
An amount below which identified misstatements are considered as
being clearly trivial.
We agreed with the Audit and Risk Committee that we would report
to them all uncorrected audit differences in excess of £1.5 million
(2024: £1.6 million), which is set at 5% of planning materiality, as well
as differences below that threshold that, in our view, warranted
reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in light of
other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the
Annual Report set out on pages 1 to 95 and 182 to 207, including the
Strategic report, Governance and Shareholder information sections,
other than the financial statements and our auditor’s report thereon.
The Directors are responsible for the other information contained
within the Annual Report.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated
inthis report, we do not express any form of assurance
conclusionthereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves.
If,based on the work we have performed, we conclude that there is a
material misstatement of the other information, we are required to
report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion, the part of the Directors’ Remuneration report to be
audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of
theaudit:
– the information given in the Strategic report and the Directors’
report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
– the Strategic report and the Directors’ report have been prepared
in accordance with applicable legal requirements.
Strategic report Governance Financial statements Shareholder and sustainability information
Independent auditor’s report to the members of Schroders plc continued
179 Schroders Annual Report and Accounts 2025
Matters on which we are required to report
byexception
In light of the knowledge and understanding of the Group and the
Parent company and its environment obtained in the course of the
audit, we have not identified material misstatements in the Strategic
report or the Directors’ report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
– adequate accounting records have not been kept by the Parent
company, or returns adequate for our audit have not been
received from branches not visited by us; or
– the Parent company financial statements and the part of the
Directors’ Remuneration report to be audited are not in
agreement with the accounting records and returns; or
– certain disclosures of directors’ remuneration specified by law are
not made; or
– we have not received all the information and explanations we
require for our audit.
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the Group and Parent company’s
compliance with the provisions of the UK Corporate Governance
Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements or our knowledge obtained during the audit:
– Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any material
uncertainties identified set out on page 34;
– Directors’ explanation as to its assessment of the company’s
prospects, the period this assessment covers and why the period
is appropriate set out on page 34;
– Directors’ statement on whether it has a reasonable expectation
that the Group will be able to continue in operation and meets its
liabilities set out on page 34;
– Directors’ statement on fair, balanced and understandable set out
on page 95;
– Board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks set out on pages 27 to 31;
– the section of the annual report that describes the review of
effectiveness of risk management and internal control systems
set out on pages 54 to 55; and
– the section describing the work of the Audit and Risk Committee,
as set out on pages 53 to 60.
Responsibilities of Directors
As explained more fully in the Statement of Directors’ responsibilities
set out on page 95, the Directors are responsible for the preparation
of the financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the Directors
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due
tofraud or error.
In preparing the financial statements, the Directors are responsible
for assessing the Group and Parent company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or the Parent company
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
financialstatements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
Strategic report Governance Financial statements Shareholder and sustainability information
Independent auditor’s report to the members of Schroders plc continued
180 Schroders Annual Report and Accounts 2025
Explanation as to what extent the audit was
considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with
laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including
fraud. The risk of not detecting a material misstatement due to fraud
is higher than the risk of not detecting one resulting from error,
asfraud may involve deliberate concealment by, for example, forgery
or intentional misrepresentations, or through collusion. The extent
to which our procedures are capable of detecting irregularities,
including fraud is detailed below.
However, the primary responsibility for the prevention and detection
of fraud rests with both those charged with governance of the
Parent company and management.
– We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Group and determined that
the most significant are those that relate to the reporting
framework (UK-adopted international accounting standards, the
Companies Act 2006 and UK Corporate Governance Code) and
relevant tax compliance regulations. In addition, we concluded
that there are certain significant laws and regulations which may
have an effect on the determination of the amounts and
disclosures in the financial statements being the Listing Rules and
relevant rules and regulations of the Prudential Regulation
Authority (‘PRA’), Financial Conduct Authority (‘FCA’) and those of
other applicable regulators around the world.
– We understood how Schroders plc is complying with those
frameworks by making enquiries of senior management,
including the Chief Financial Officer, General Counsel, Company
Secretary, Chief Risk Officer, Head of Internal Audit and the
Chairman of the Audit and Risk Committee. We corroborated our
understanding through our review of board and committee
meeting minutes, papers provided to the Audit and Risk
Committee, and correspondence received from the PRA and FCA.
– We assessed the susceptibility of the Group’s financial statements
to material misstatement, including how fraud might occur, by
meeting with management to understand where they considered
there was susceptibility to fraud. We also considered
performance targets and their potential influence on efforts
made by management to manage or influence the perceptions of
analysts. We considered the controls that the Group has
established to address risks identified, or that otherwise prevent,
deter and detect fraud; and how senior management monitors
these controls. Where the risk was considered to be higher, we
performed audit procedures to address each identified fraud risk.
– Based on this understanding we designed our audit procedures
to identify non-compliance with such laws and regulations. Our
procedures involved journal entry testing, with a focus on manual
journals and journals indicating large or unusual transactions
based on our understanding of the business; enquiries of senior
management, including those key hub locations; and focused
testing, as referred to in the key audit matters section above.
A further description of our responsibilities for the audit of the
financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’sreport.
Other matters we are required to address
– Following the recommendation from the Audit and Risk
Committee, we were appointed by the Parent company on
9March 2018 to audit the financial statements for the year
ending31 December 2018 and subsequent financial periods.
Ourappointment as auditor was approved by shareholders at the
Annual General Meeting on 26 April 2018.
– The period of total uninterrupted engagement including previous
renewals and reappointments is eight years, covering the years
ending 2018 to 2025.
– The audit opinion is consistent with the Audit Results Report to
the Board Audit and Risk Committee.
Use of our report
This report is made solely to the Parent company’s members, as a
body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to
the Parent company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Parent company and the
Parent company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Simon Michaelson
Senior statutory auditor
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
11 February 2026
Strategic report Governance Financial statements Shareholder and sustainability information
Independent auditor’s report to the members of Schroders plc continued
181 Schroders Annual Report and Accounts 2025
SHAREHOLDER AND
SUSTAINABILITY
INFORMATION
Shareholder and sustainability
information
Shareholder information 183
Five-year consolidated financial summary 184
Climate-related financial disclosures 185
Governing our non-financial information 202
Glossary 203
Strategic report Governance Financial statements Shareholder and sustainability information
Shareholder and sustainability information
182 Schroders Annual Report and Accounts 2025
Shareholder
information
Schroders plc
Registered in England and Wales Company No. 3909886
Registered office
1 London Wall Place, London, EC2Y 5AU
Tel: +44 (0) 207 658 6000
Email: companysecretary@schroders.com
Website: www.schroders.com
Share Registrar
Computershare Investor Services plc
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
UK shareholder helpline:
Freephone (UK callers only): 0800 923 1530
International: +44 117 378 8170
Email: WebCorres@computershare.co.uk
Website: www.investorcentre.co.uk
Financial calendar
Ex-dividend date
12March 2026
Record date
13March 2026
DRIP election date deadline
31March 2026
Annual General Meeting
16April 2026
Final dividend payment date
23April 2026
Half-year results announcement
30July 2026
Interim dividend paid
1
September 2026
1
Date to be confirmed.
Annual General Meeting (AGM)
Our AGM will be held in person at 1 London Wall Place, London,
EC2Y 5AU on Thursday 16April 2026 at 11.30am.
Investor Centre
Computershare is the Company’s share registrar. Investor Centre
is Computershare’s free, self-service website where shareholders
can manage their interests online.
The website enables shareholders to:
– view share balances
– change address details
– view payment and tax information
– update payment instructions
– update communication instructions.
Shareholders can register their email address at
www.investorcentre.co.uk to be notified electronically of events such
as AGMs, and can receive shareholder communications such as the
Annual Report and Accounts and the Notice of Meeting online.
Enquiries and notifications concerning dividends, share certificates
or transfers and address changes should be sent to the Registrar.
Dividends
Paying dividends into a bank or building society account helps
reduce the risk of fraud and will provide you with quicker access to
your funds than payment by cheque. Applications for an electronic
mandate can be made by contacting the Registrar.
If your dividend is paid directly into your bank or building society
account, you will receive an annual consolidated dividend
confirmation, which will be sent to you in September each year
at the time the interim dividend is paid.
Dividend confirmations are available electronically at
www.investorcentre.co.uk to those shareholders who have their
payments mandated to their bank or building society accounts, and
who have expressed a preference for electronic communications.
The Company operates a Dividend Reinvestment Plan (DRIP),
whichprovides shareholders with a way of increasing their
shareholding in the Company by reinvesting their dividends. A copy
of the DRIP terms and conditions and application form can be
obtained from the Registrar.
Details of dividend payments can be found in the Directors’ report
on page 91.
Schroders offers a service to shareholders in participating countries
that enables dividends to be received in local currencies. You can
check your eligibility and/or request a mandate form by contacting
the Registrar.
Warning to shareholders
Companies are aware that their shareholders have received
unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas-based
“brokers” who target UK shareholders, offering to sell them what
often turn out to be worthless or high-risk shares or investments.
These operations are commonly known as “boiler rooms”.
These“brokers” can be very persistent and extremely persuasive.
Shareholders are advised to be wary of any unsolicited advice,
offers to buy shares at a discount, or offers of free company reports.
If you receive any unsolicited investment advice:
– make sure you get the correct name of the person
andorganisation
– check that they are properly authorised by the Financial
Conduct Authority (FCA) before getting involved by visiting
register.fca.org.uk
– report the matter to the FCA by calling 0800 111 6768 or visiting
www.fca.org.uk/consumers/report-scam-unauthorised-firm
– do not deal with any firm that you are unsure about.
If you deal with an unauthorised firm, you will not be eligible to
receive payment under the Financial Services Compensation
Scheme. The FCA provides a list of the unauthorised firms it is aware
of, which can be accessed at www.fca.org.uk/consumers/warning-list-
unauthorised-firms.
More detailed information on this or similar activity can be found on the
FCA website at www.fca.org.uk/consumers/protect-yourself-scams.
Capital gains tax implications of simplification of the
Schroders plc dual share class structure
Information on capital gains tax relating to the Enfranchisement,
Compensatory Bonus issue and Sub-Division of Schroders plc
shares that took place in September 2022 can be found on the
Company’s website.
Strategic report Governance Financial statements Shareholder and sustainability information
Shareholder information
183 Schroders Annual Report and Accounts 2025
Five-year consolidated financial summary (unaudited)
2025 2024 2023 2022 2021
£m £m £m £m £m
Adjusted operating profit before tax 756.6 603.1 626.1 644.3 813.0
Tax (158.9) (133.6) (121.5) (110.2) (142.5)
Adjusted operating profit after tax 597.7 469.5 504.6 534.1 670.5
2025 2024 2023 2022 2021
£m £m £m £m £m
Profit before tax 673.8 558.1 487.6 586.9 764.1
Tax (123.4) (125.1) (85.0) (100.7) (140.3)
Profit after tax 550.4 433.0 402.6 486.2 623.8
2025 2024 2023 2022 2021
Adjusted operating earnings per share Pence Pence Pence Pence Pence
Basic earnings per share
1
36.6 28.4 30.7 33.2 41.5
Diluted earnings per share
1
36.1 28.0 30.1 32.6 40.8
2025 2024 2023 2022 2021
Earnings per share Pence Pence Pence Pence Pence
Basic earnings per share
1
34.1 26.4 24.6 30.4 38.7
Diluted earnings per share
1
33.6 26.0 24.2 29.9 38.1
Dividends 2025 2024 2023 2022 2021
Cost (£m) 335.8 334.2 333.0 332.1 318.6
Pence per share
2
21.5 21.5 21.5 21.4 20.4
Total equity (£m) 4,456.4 4,495.4 4,463.7 4,479.7 4,425.7
Net assets per share (pence)
3
276 279 277 278 275
2025 2024 2023 2022 2021
Group employees at year end 31 December Number Number Number Number Number
United Kingdom 3,597 3,946 3,897 3,788 3,329
Europe, Middle East and Africa 813 904 1,016 1,031 940
Asia Pacific 938 1,090 1,089 1,188 1,093
Americas 369 423 436 427 388
5,717 6,363 6,438 6,434 5,750
Exchange rates – closing 31 December 2025 2024 2023 2022 2021
Sterling:
Euro 1.15 1.21 1.15 1.13 1.19
US dollar 1.35 1.25 1.27 1.20 1.35
Swiss franc 1.07 1.13 1.07 1.11 1.23
Australian dollar 2.02 2.02 1.87 1.77 1.86
Hong Kong dollar 10.47 9.73 9.95 9.39 10.56
Japanese yen 210.83 196.83 179.72 158.72 155.97
Singaporean dollar 1.73 1.71 1.68 1.61 1.83
Chinese renminbi 9.40 9.14 9.04 8.36 8.63
Exchange rates – average 2025 2024 2023 2022 2021
Sterling:
Euro 1.17 1.18 1.15 1.17 1.16
US dollar 1.32 1.28 1.24 1.24 1.37
Swiss franc 1.10 1.12 1.12 1.18 1.25
Australian dollar 2.04 1.94 1.87 1.78 1.83
Hong Kong dollar 10.26 9.97 9.74 9.71 10.68
Japanese yen 197.80 192.84 175.10 161.25 151.02
Singaporean dollar 1.72 1.71 1.67 1.71 1.84
Chinese renminbi 9.45 9.18 8.81 8.32 8.86
1. See note 5 for the basis of this calculation. Prior year comparatives have been restated following the simplification of the Company’s dual share class structure
in 2022 and following the re-presentation of the consolidated income statement in 2025 (see Presentational changes on page 151).
2. Dividends per share are those amounts approved by the shareholders to be paid within the year on a per share basis to the shareholders on the register at
the specified dates. Prior year comparatives have been restated following the simplification of the Company’s dual share class structure in 2022.
3. Net assets per share are calculated by using the actual number of shares in issue at the year-end date. Prior year comparatives have been restated following
the simplification of the Company’s dual share class structure in 2022.
Strategic report Governance Financial statements Shareholder and sustainability information
Five-year consolidated financial summary
184 Schroders Annual Report and Accounts 2025
Task Force on Climate-related Financial
Disclosures and compliance summary
Our climate-related financial disclosures, prepared in accordance with the Companies (Strategic
Report) (Climate-related Financial Disclosures) Regulations 2022, are outlined below. The report
aligns with the Task Force on Climate-related Financial Disclosures (TCFD) framework, as required
under FCA UK Listing Rule 6.6.6R(8). It is consistent with the TCFD recommendations and relevant
recommended disclosures, including the supplemental guidance for the financial sector.
In this section, we refer to distinct businesses within the Group such
asPublic Markets, Schroders Capital and Wealth Management.
Thesebusinesses are involved, to varying degrees, with investing
directly (where we manage the investments directly) and indirectly
(where we select external asset managers to manage investments
on our behalf).
The following Financial Conduct Authority (FCA) regulated entities
within the Group are required to publish their own entity-level
reports in accordance with the FCA’s Environmental, Social and
Governance Sourcebook. These entities (see the list on the right) will
predominantly rely on these disclosures when publishing their own,
which will be completed by 30 June 2026.
– Schroder Investment Management Limited
– Schroder Investment Management North America Limited
– Schroder & Co. Limited
– Schroders Greencoat LLP
– Schroders IS Limited
– Schroder Pension Management Limited
– Schroder Real Estate Investment Management Limited
– Schroder Unit Trusts Limited.
Their individual reports may contain additional information that is
specific and material to them which has not been included in this
Group-level disclosure.
The table below contains a mapping of TCFD requirements and the
climate-related requirements under the Companies Act to the
relevant sections in the following pages.
TCFD Pillar Recommended disclosure CA 414CB
Page
reference
Governance
a. Describe the Board’s oversight of climate-related risks and opportunities
(a) 195
b. Describe management’s role in assessing and managing climate-related
risks and opportunities
(a) 195
Strategy
a. Describe the climate-related risks and opportunities the organization has
identified over the short, medium, and long term
(d) 187-188,
197
b. Describe the impact of climate-related risks and opportunities on the
organization’s businesses, strategy, and financial planning
(e) 186-194,
196-197
c. Describe the resilience of the organization’s strategy, taking into
consideration different climate-related scenarios, including a 2°C or
lowerscenario
(f) 192
Risk
management
a. Describe the organization’s processes for identifying and assessing climate-
related risks
(b) 196-197
b. Describe the organization’s processes for managing climate-related risks
(b) 196-197
c. Describe how processes for identifying, assessing, and managing climate-
related risks are integrated into the organization’s overall risk management
(c) 196-197
Metrics and
targets
a. Disclose the metrics used by the organization to assess climate-related risks
and opportunities in line with its strategy and risk management process
(h) 198-201
b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas
(GHG) emissions and the related risks
(h) 198-201
c. Describe the targets used by the organization to manage climate-related
risks and opportunities and performance against targets
(g) 186,
198-201
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures
185 Schroders Annual Report and Accounts 2025
Our climate strategy
Transition risks arising from policy change and uncertainty, shifting
consumer preferences and technological innovation are intersecting
with physical risks such as extreme and chronic weather events.
Together, these trends have material implications for our clients’
portfolios and for the way we manage our business.
Physical risks have become more pronounced, with greater
frequency and severity of extreme weather events. This has led to
anincreased focus on climate adaptation, alongside climate
mitigation. Over the long term, however, we believe that policy,
markets and innovation will continue to move economies and
industries to decarbonise.
For Schroders, these dynamics create both risks and opportunities.
They may influence asset valuations, reshape industries and test
business models. Yet they also open the door to innovation and the
growth of climate solutions that align with our clients’ objectives. By
combining our investment expertise with proprietary insights, we are
helping clients navigate these challenges.
We also recognise that effective risk management is essential.
Protecting the value of our clients’ assets requires us to identify,
assess and proactively manage climate-related risks with discipline.
The table on pages 187 to 188 sets out the climate-related risks and
opportunities we consider most material to our business and
explains how we are responding to them.
We are committed to managing our clients’ portfolios in line with
their investment objectives and to strengthening the long-term
sustainability of our business. Therefore, in 2021 we made our initial
commitment to transitioning our business and the portfolios we
manage toward a net zero future.
Our commitment remains unchanged. As stewards of capital, we
recognise our responsibility to assess the risks and opportunities
climate change presents for our clients’ portfolios. We reflect these
considerations in our investment decisions, while supporting the
transition to a more sustainable global economy.
SBT
progress
SBT
progress
Near-term targets Long-term targets
Align in-scope
1, 2
investment portfolios
with a 2.2°C pathway
3
2030
Align in-scope
1, 4
investment portfolios
with a 1.5°C pathway
3
2040
Wealth Management:
Listed equity and
credit funds to have
net zero ambition
5
2030
Listed equity and credit
funds are net zero-
aligned or have
achievednet zero
5
2040
Schroders Greencoat:
Reduce Scope 1 and 2
emissions intensity
by50%
6
2030
Reduce Scope 1 and 2
emissions by 46%
3
2030
Achieve 100%
renewable electricity
2025
Reduce business
travel emissions
by50%
3
2030
67% of our suppliers
7
to have set science-
based targets
3
2026
1. Directly managed listed equity, corporate bonds, real estate investment
trusts (REITs) and exchange-traded funds (ETFs).
2. Scopes 1 and 2.
3. Base year 2019.
4. Scopes 1, 2 and 3.
5. Refers to third-party and Schroders funds on our approved buy list, which
Wealth Management’s discretionary business selects from.
6. Base year 2022.
7. By GHG emissions.
SBT
Science-based targets (validated by the Science Based Targets initiative)
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
186 Schroders Annual Report and Accounts 2025
How we invest
How we run our business
41%
100%
60%
42%
2.4 2.7
SBT
SBT
SBT
SBT
SBT SBT
Climate risks and opportunities for our
clients and our business
Transition and physical risks and opportunities may affect how we
invest – i.e. the way in which we manage our portfolios – and also
how we run our business – i.e. the way in which we manage our
business overall, including the management of our operations.
How we invest: This relates to the processes which our investment
teams follow in making investment decisions. These investment
decisions result in our managed funds owning companies or assets
which may be exposed to climate risks or opportunities. Climate risks
or opportunities may result in lower or higher valuations or reduced
or increased profitability of companies or assets, thereby affecting
investment returns for our clients and our investment performance.
Persistent under- or outperformance may consequently affect the
Group’s AUM and our ability to retain clients or attract new business,
thereby affecting our revenues.
In this section, we make a distinction between direct investments,
i.e. where we manage the investments directly, and indirect
investments, i.e. where we select external asset managers to
manage investments on our behalf.
How we run our business: This relates to the typically centralised
actions or decisions related to how we manage our business. These
are usually conducted at the Group or business unit level including,
for example, those relating to product strategy or operations.
Climate risks or opportunities may directly result in higher or lower
Group costs or revenues, affecting returns for our shareholders.
Most of the risks and opportunities disclosed below emerge across
all timeframes; however, we have indicated the timeframe we
consider most significant for each risk or opportunity.
Timeframes
Short term (0–1 year)
The current reporting period, which covers existing activities to
manage climate issues.
Medium term (1–5 years)
Aligns with our strategic planning, business forecasting and
viability assessment. It is also the typical investment duration of
our clients.
Long term (5–10 years) and extended long term (10+ years)
Depending on real-world action, this period could see
continued transition risks and opportunities, as well as
intensifying physical climate risks and opportunities.
Materiality
When assessing materiality, we consider how the Group is
affected by climate change, taking into consideration the impact
of climate on our financial performance and position.
The table below summarises the climate issues – both risks and
opportunities – which we have deemed could have a material
impact on our financial performance and position in the
relevant timeframes. It also summarises our management
response to the identified issues.
Short- and medium-term climate issues
Risks Opportunities Our response
Investment
underperformance may
arise from:
– Transition, policy,
market: Climate-related
policy action and market
trends impacting the
revenues or costs of
theportfolio companies
orassets we are invested
in, particularly where
thepolicy landscape
isuncertain
– Physical (acute) :
Increasing severity and
frequency of acute
extreme weather events
impacting the revenues or
costs of the portfolio
companies or assets we
are invested in.
The above can impact our
portfolios either directly
orindirectly.
Investment
outperformance may
arisefrom:
– Transition, policy,
market: Portfolio
companies or assets we
are invested in which are
better positioned to deal
with climate-related policy
action or better aligned
with market trends,
particularly those involved
in delivering climate
mitigation solutions
– Physical (acute): Portfolio
companies or assets we are
invested in which benefit
from increased spending on
climate adaptation solutions.
The above can impact our
portfolios either directly
orindirectly.
We have developed frameworks to assess the transition plans
and decarbonisation targets of the companies, assets and
external asset managers we are invested in.
Direct investments
– We have developed a dashboard
1
for our investment teams
to identify the climate risks and opportunities their portfolio
companies are exposed to, including under different
climatescenarios.
– Within our real estate and infrastructure portfolios, we have
started to onboard geospatial asset-specific data providers
toimprove our asset-specific risk assessments and aid in
developing adaptation plans for assets.
– We engage with the management of companies, assets and
wider related stakeholders in our portfolios in order to
understand their exposure to climate risks and opportunities.
Where material, we encourage them to take appropriate
action through dialogue, by exercising our voting rights (for
listed companies) or via other escalation methods. We also
engage collaboratively via industry initiatives.
Indirect investments
– We conduct net zero assessments (typically annually) of our
external asset managers to understand i) their net zero
commitments and ii) if and how they analyse their portfolio
holdings to understand exposure to climate issues.
– We engage with our external asset managers to encourage
them to take appropriate action.
1. The dashboard mainly covers listed companies given data availability is typically better compared to privately held companies.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
187 Schroders Annual Report and Accounts 2025
How we invest
Risks Opportunities Our response
Potential loss of revenue
or increased costs from:
– Reputation: Negative
perception of the Group’s
approach to managing
climate issues which leads to
loss of business and clients
– Products and services:
Failure to establish climate-
aligned products to meet
client demand, or insufficient
demand leading to sub-scale
unprofitable funds
– Legal: Regulatory breaches
due to increasing volume,
scope and complexity of
climate regulation, which
leads to reputational
damage or fines.
Potential increased
revenue:
– Reputation: Positive
perception of the Group’s
climate capabilities and
solutions, which leads to
new business and clients
– Products and services:
Increased client demand
leads to the development
and growth of climate-
aligned products including
those focused on
decarbonisation, climate
mitigation and adaptation.
– We monitor the volume and sentiment of coverage in
publications and on social media and report this to the Group
Risk Committee and Audit and Risk Committee. We take
appropriate action to address areas that have resulted or may
result in an impaired reputation.
– We conduct client surveys for institutional and retail clients to
assess product demand.
– We maintain an internal working group focused on
understanding and supporting clients in meeting their climate
objectives within their portfolios.
– We apply a climate product framework to showcase our
capabilities and align our offering with clients’ preferences
and objectives.
– We implement an operating model with the aim to comply
with and monitor climate regulations.
Long- and extended long-term climate issues
Risks Opportunities Our response
Investment
underperformance may
arise from:
– Physical (chronic): Long-
term and extended long-
term acute and chronic
climate change impacts such
as temperature and sea-level
rises impacting the revenues
or costs of the portfolio
companies or assets we are
invested in.
The above can impact our
portfolios either directly
orindirectly.
Investment
outperformance may arise
from:
– Physical (chronic): Portfolio
companies or assets we are
invested in which are
betterpositioned to deal
with physical climate risks
through their development
of climate adaptation
solutions.
The above can impact our
portfolios either directly
orindirectly.
Direct investments
– We have developed a dashboard
1
for our investment teams
to identify the risks and opportunities their portfolio
companies are exposed to, including a climate scenario
whichincorporates chronic physical risks.
– Across private markets, climate-related components are
considered within the sustainability assessment during the
investment decision-making process.
Indirect investments
– We conduct net zero assessments (typically annually) of
external asset managers to understand i) their net zero
commitments and ii) if and how they analyse their portfolio
holdings to understand exposure to climate issues, including
long-term climate change.
1. The dashboard mainly covers listed companies given data availability is typically better compared to privately held companies.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
188 Schroders Annual Report and Accounts 2025
How we run our businessHow we invest
Progressing our climate strategy
Context
Delivering our decarbonisation strategy requires more than the
actions of a single firm. The global economy itself must transition,
and that depends on many factors, with a critical one being effective
government policy. Regulation and long-term policy frameworks will
be important to set clear direction for different sectors in the real
economy. Alongside this, investors have a duty to steward the
companies and assets which they own.
We believe that by proactively managing the risks and identifying the
opportunities presented by climate change, we are better placed to
deliver the performance our clients expect.
In many asset classes, it is possible to build portfolios today that only
invest in companies and assets already on a credible path to net zero
or providing solutions that enable faster decarbonisation of the
economy. However, restricting portfolios in this way risks creating
heavy sector and geographic concentrations and could sacrifice
returns for clients.
Our approach
Our approach is to focus on companies and assets from across
sectors and regions which are transitioning, which have provided
stronger performance as well as supporting real-world
decarbonisation, through capital allocation and stewardship.
Our climate strategy is underpinned by the need to meet clients’
objectives and protect and enhance the value of their investment
portfolios. It is therefore focused on understanding and assessing
where companies, assets and managers stand on their journey
towards net zero and to encourage them to mitigate the climate
risks embedded in their operating models which may arise from
action which is either too rapid or too slow.
We do this through:
– active management: developing proprietary models for climate
analysis that help our fund managers integrate climate risks and
opportunities into investment decision-making
– active ownership: engaging with company boards and
management teams to encourage robust transition plans and
disclosure of annual emissions performance, using our votes at
AGMs to hold them accountable, as well as engaging with
policymakers to advocate for consistent, long-term climate policy
– innovation: developing investment strategies which manage risks
and emphasise opportunities in companies and assets which are
transitioning or contributing to climate solutions, such as
renewable energy infrastructure.
Together, these actions can help to support the transition that is
needed in the wider economy and help address some of the climate
risks and opportunities set out in the table on pages 187 and 188.
Measuring our progress
We set clear, measurable targets that reflect the characteristics of
each asset class and which are aligned with our net zero
commitment. The majority of our AUM is in public markets, where we
use temperature scores
1
as our benchmark. These science-based
targets, validated by the Science Based Targets initiative (SBTi) in
2021, commit us to reducing the temperature alignment of our in-
scope
2
portfolios from 2.9°C in 2019 to 2.2°C by 2030.
Our latest score is 2.4°C, reflecting the commitments of the
companies we invest in, our engagement efforts and our investment
decisions. For our near-term (2030) targets, our portfolio
temperature score remains ahead of the linear reduction target,
based on the modelling of near-term investee Scope 1 and 2 targets.
Our long-term (2040) portfolio temperature score is in line with the
linear reduction target required.
SBTi-validated portfolio temperature scores
°C
Near-term (2030) Scopes 1 & 2
2.9
2.9
2.8
2.6
2.5
2.4
2.4
Linear target pathway Schroders
2019 2020 2021 2022 2023 2024
2025
2.25
2.50
2.75
3.00
°C
Long-term (2040) Scopes 1, 2 & 3
3.2
3.1
3.0
2.9
2.8
2.8
2.7
Linear target pathway Schroders
2019 2020 2021 2022 2023 2024
2025
2.50
2.75
3.00
3.25
For other asset classes, we use measures better suited to them.
Within Schroders Greencoat, the focus is on growing the capacity for
renewable energy generation of the assets it invests in and manages
on behalf of clients; this in turn leads us to set a carbon intensity-
based target, with emissions relative to power generation. We have
set a commitment to reduce the Scope 1 and 2 emissions intensity
by 50% by 2030 from a 2022 base year. More information on our
targets and progress are disclosed in the Schroders Greencoat ESG
Report, which can be found at www.schroderscapital.com/
schrodersgreencoat/esg.
For indirect investments managed by external managers – largely
overseen by our wealth management business – our targets focus
on the proportion of funds who have committed to aligning their
strategies with a net zero future. More information on these targets
and progress are disclosed in the Wealth Management Climate
Transition Action Plan update which can be found at
www.cazenovecapital.com/climate-transition-action-plan.
By tailoring targets to each part of our business, we can track
progress credibly while maintaining a consistent Group-wide focus
on long-term decarbonisation.
Further information can be found in the Metrics and
targets section on page 198.
1. Using CDP-WWF methodology (see Metrics and targets section for more information).
2. Listed equities, corporate bonds, real estate investment trusts (REITs) and exchange-traded funds (ETFs).
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
189 Schroders Annual Report and Accounts 2025
How we invest
Active management: measuring and managing exposure in our investment portfolios
To support our climate strategy, we have developed net zero
alignment frameworks for both our direct and indirect investments.
These frameworks are designed to assess where companies, assets
and managers stand on their journey towards net zero, providing a
structured and consistent way to evaluate ambition, credibility and
maturity. They also help us to monitor the progress being made on
actual decarbonisation.
Where the data is available, for example, for listed companies or for
assets in real estate and infrastructure, we apply quantitative
measures to assess the maturity of their transition plans.
In the case of external managers, the frameworks allow us to
evaluate the strength of their commitments and the credibility of
their plans to align with a net zero pathway. This is done annually as
part of our fund due diligence. They also play a role in guiding our
stewardship by helping to identify which managers are the most
suitable targets for engagement and where our influence can add
the most value.
The frameworks provide more than a snapshot of individual
positions. They give us portfolio-wide insights into the levels of
exposure to climate risks and opportunities, allowing us to
understand where vulnerabilities may exist and where value could be
created through transition.
Alongside these frameworks, we continue to develop tools and
dashboards that surface relevant climate information for integration
into the investment process. These provide fund managers with
clear insights into how their holdings are exposed to both risks and
opportunities, supporting more informed decision-making. For
example, our climate analytics toolkit brings together metrics such as
financed emissions, avoided emissions, net zero targets,
decarbonisation pathways and portfolio temperature scores; and,
where data allows, incorporates scenario analysis. By equipping our
teams with these tools, we allow for climate considerations to be
consistently embedded across investment decisions.
Net zero alignment framework
Direct
investments
Not aligned
Aligning to a net
zero pathway
Aligned to a net
zero pathway
Achieving net
zero
Not started
Displaying
awareness
Committed /
Preparing to
align
Indirect
investments
Not aligned or
not started
Committed / Preparing to align
Aligning to a net
zero pathway
Aligned to a net
zero pathway
Achieving net
zero
We apply these frameworks across a wide range of asset classes; adjustments to the
categories are made to accommodate nuances such as asset-class specifics, data
availability and maturity of the market.
Additional sub-categories have been introduced to
accommodate the data challenges and maturity levels within
private markets.
Active ownership: voting, engagement and operational management of assets
Climate change is one of our thematic priorities for engagement
across the asset classes in which we invest. We believe that active
engagement is one of the most effective tools available to support
the management of climate risks and opportunities. It can improve
risk management, drive more resilient business models and support
better long-term financial outcomes for our clients.
Our climate engagement objectives focus on encouraging our
investees to identify, manage and disclose material climate risks,
andto set credible transition targets. In practice, this means tailoring
our conversations to reflect the context in which each business
operates – recognising the nuances of different sectors, geographies
and levels of maturity on the path to decarbonisation. This approach
helps contribute to setting expectations that are both ambitious
andrealistic.
To guide this work, we use our Engagement Blueprints for Public
and Private Markets, which set out our active ownership approach
across asset classes and how we set climate objectives, as well as
how we escalate engagement when progress is slower than we
thinknecessary.
Public Markets voting
During the 2025 proxy voting season, we voted against the
directorsof companies on climate grounds on 75 occasions.
Thisrepresented a 56% increase relative to 2024 and reflects the
escalation of our engagement with companies we considered to be
lagging behind their peers in their sector and region on climate risk
management issues.
We supported 48 out of 93 shareholder resolutions on issues related
to climate risk, excluding “anti-ESG” resolutions.
Public Markets engagement
We conducted 550 climate-related engagements with 381
companies in the basic materials, utilities, energy, industrials and
financials sectors. The table below shows our engagements
categorised by sector.
Number of engagements by sector (Public Markets)
Utilities
72
Financials
78
Energy
81
Consumer cyclicals
52
Basic materials 57
Technology 51
Industrials 48
Consumer non-cyclicals 55
Healthcare 14
Real estate 31
Government activity 11
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
190 Schroders Annual Report and Accounts 2025
As part of our engagements, we met 11 sovereign issuers (captured
within the “Government activity” category in the table on the
previous page). We engage with sovereigns to address the risks
arising from climate change in order to support long-term sovereign
credit quality.
Most of our engagements were one-to-one with company
management; however, we also conducted 33 collaborative
engagements on climate-related topics, including with key groups
such as Climate Action 100+, Asia Investor Group on Climate Change,
the Institutional Investor Group on Climate Change in Europe,
andthe Interfaith Center on Corporate Responsibility in the US.
Since we published our Climate Transition Action Plan in 2021,
wehave made steady progress engaging companies we invest in
and asking them to mitigate climate risks by setting emissions
reduction goals. We have engaged with companies representing
78% of our financed emissions since 2021
1
.
We conducted our climate engagements along six sub-themes as
indicated in the table below.
Climate engagement by sub-theme %
Climate mitigation 47
Climate oversight 15
Climate adaptation 13
Climate solutions 9
Deforestation and Other – climate change 9
Just transition and resilience 7
Throughout the year, we monitored company progress against our
climate engagement objectives and overall, by the end of the year,
we considered that 47 objectives were achieved.
Schroders Capital operational management of assets
andengagement
Where we directly manage assets across our real estate and
infrastructure portfolios, we aim to manage these assets to robust
sustainability standards, including addressing decarbonisation
andmanaging climate risks, in order to protect and enhance
assetvalues.
We also engage with our investee companies and management
boards as well as key stakeholders such as industry bodies
andregulators to encourage greater transparency on climate-
related topics such as energy or material use and
decarbonisationcommitments.
Wealth Management engagement
In our dialogue with external asset managers, we encourage
management of climate risks such that effective investment
outcomes are generated in line with our clients’ objectives. We use
engagement to hold them accountable for integrating climate
considerations into their investment processes.
In 2025, within Wealth Management, we conducted 40 climate-
related engagements across 20 external asset managers.
How we run our business
Innovate: developing climate-related products and solutions to meet clients’ needs
Our focus as an active manager continues to be delivering our
clients’ investment outcomes. We assess our product range and
client demand so that we can effectively match our offering to client
needs. This informs our product strategy.
Whilst we have clients for whom climate change is not a focus or
objective, we are seeing an increasing number who have set their
own climate objectives and are at varying stages of their net zero
transition journeys. This has translated into growing demand for
products and bespoke solutions that meet these needs.
We have developed a climate product framework to help our clients
understand the range of strategies we can offer to meet their
climate objectives.
Climate product framework
Designed for clients with a
decarbonisation objective
and who want to invest in
core strategies
These strategies target specific
emissions reductions, either relative to
a benchmark or on an absolute basis.
Designed for clients who
want to invest in
companies transitioning
to net zero
These strategies invest in companies that
are actively transitioning to lower-
carbon business models and reducing
their GHG emissions.
Designed for clients who
want to invest in solutions
tackling climate change
These strategies invest in companies
whose products and services
contribute to specific climate-related
outcomes through technological
development and innovation.
We have also developed bespoke solutions for clients who want their specific climate goals reflected in their portfolios. This has included
strategies which focus on portfolio emissions reductions, supporting a real-economy transition, or targeting climate mitigation or adaptation
themes. We have developed quantitative models, within Public Markets, and more qualitative assessments in Schroders Capital, that help us
build these types of bespoke portfolios.
Our approach has been reinforced by strategic acquisitions and partnerships. The acquisition of BlueOrchard in 2019 expanded our impact
investment (including climate impact) capabilities, while the addition of Schroders Greencoat in 2021 strengthened our capabilities in
renewable energy infrastructure. As at 31 December 2025, Schroders Greencoat managed over £8.7 billion of renewable assets, making it
one of Europe’s largest specialist managers in the sector. Across the Group, we managed more than £15.8 billion in strategies with climate-
related objectives, which represents a growth of 13.5% year on year.
1. Based on the Scope 1, 2 and 3 emissions of investee companies within our public markets portfolios as at 31 December 2025. The percentage is
calculatedbased on year-end holdings but the engagement may have occurred in a prior year. Engagements that took place in 2025 covered 51.4% of
financed emissions.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
191 Schroders Annual Report and Accounts 2025
Climate scenario analysis
We analyse the exposure of our covered investments (see
“Definitions and scope" box to the right) to both transition and
physical climate risks using scenario analysis. The standard
scenariosused are as follows:
1. 1.5°C orderly – global temperature rise is limited to 1.5°C through
stringent climate policies and innovation, with net zero CO
2
e
emissions reached around 2050
2. 2°C disorderly – annual CO
2
e emissions do not fall until 2030,
requiring stronger policy action thereafter to limit warming to
below 2°C
3. 3°C Nationally Determined Contributions (NDCs) – outcomes
based on current pledged targets (NDCs) set by countries,
including where these are not yet underpinned by
implementedpolicies.
For the analysis shown below, we used MSCI’s aggregated Climate
Value-at-Risk (VaR) model applying the Network for Greening the
Financial System (NGFS) scenarios to assess potential impacts under
a range of future pathways.
Scenario analysis findings
Our covered investments are more exposed to climate risks under a
1.5°C scenario, with a potential impact of -8.8% of current market
value. The impact is slightly lower under the 2°C (-4.3%) and 3°C
(-3.9%) scenarios. The chart below illustrates how risks vary by sector:
while overall exposure increases under more ambitious transition
scenarios, the concentration of risk becomes more pronounced in
carbon-intensive industries such as energy and materials.
It is important to note that model outputs provide only one view of
possible outcomes. They do not capture the full complexity of
physical risks, including interconnected effects and the potential for
irreversible “tipping points” once critical thresholds are breached.
Evolving our strategy
We recognise that we will need to remain adaptable as policy and
investment outlooks shift and as climate risks and opportunities
evolve. We will adjust our approach to engagement and capital
allocation to reflect the conditions under which we invest.
As extreme weather events become more frequent and severe, we
have continued to focus on climate adaptation in our engagement
with portfolio companies whilst acknowledging that rapidly reducing
emissions is needed to avoid the worst climate impacts.
We have also expanded our climate-related product and
solutionsoffering to capture opportunities in transition, mitigation
and adaptation.
Definitions and scope
– Covered investments: listed equities and corporate bonds.
– Physical risks: exposure to approximately ten climate hazards,
including acute weather events such as cyclones and flooding,
and chronic weather changes such as increased rainfall or
prolonged heat. We apply the “aggressive” outcome across all
three scenarios.
– Transition risks: including shifts in carbon pricing, fossil fuel
demand, energy mix and emissions pathways.
– Time horizon: assessed from the reporting year to the end of
the century.
Limitations
These scenarios are not forecasts. They are intended to
illustrate a range of potential outcomes and highlight risks
andopportunities.
The model assumes no mitigation or adaptation actions by
companies over time and reflects a snapshot of current
holdings, without considering changes to portfolio composition
or the impact of engagement on portfolio holdings.
Carbon prices
The scenarios we use include various assumptions about
carbon pricing.
In addition, our proprietary SustainEx™ model applies a social
cost of carbon of US$110 per tonne to company and sovereign
emissions, providing fund managers with a view of the broader
costs or benefits companies and countries may create for
society and the environment.
Scenario analysis within Schroders Capital
Within our private markets business, a consistent quantitative
approach is not yet feasible given data constraints. Instead, we
integrate qualitative and/or quantitative climate scenario
analysis within specific asset-class processes and, as yet, do not
aggregate across them.
We have focused our quantitative climate scenario analysis
within our real estate and infrastructure asset classes, and have
enhanced our analysis using geospatial data providers.
Aggregated Climate VaR (%)
Covered investments exposure to aggregated climate risk, broken down by sector¹ ²
Net zero 2050 Delayed transition Nationally Determined Contributions
Net zero 2050 overall Delayed transition and NDCs overall
Energy Materials
Utilities
Consumer
staples
Consumer
discretionary
Industrials
Health care
Real estate
Communication
services
Information
technology
Financials
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
192 Schroders Annual Report and Accounts 2025
1. Schroders’ aggregated sectoral climate risk analysis using MSCI Climate VaR. Climate exposure data is mapped to covered investment holdings with
values expressed in present terms as a proportion of current market value. Note that the underlying models do not take into account investee responses
to climate-specific actions.
2. The horizontal lines represent aggregated Climate VAR of covered investment holdings while the columns represent the value for each individual sector.
How we run our business: Leading by
example in our own corporate actions
Direct activities: offices and fleet
Our target: reduce Scope 1 and 2 (location-based)
emissions by 46% by 2030
Our operational climate strategy focuses on reducing our
environmental impact by decreasing energy demand,
increasing energy efficiency and transitioning to low-carbon
sources of energy.
Scope 1 Scope 2
2030 1.5°C pathway 2030 target
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Our progress
In 2025, our total Scope 1 and 2 GHG emissions decreased by 41%
from the 2019 base year and decreased by 4% compared to 2024.
Specifically, our total Scope 1 GHG emissions decreased by 38%
fromthe 2019 base year and increased by 42% compared to 2024,
andour total Scope 2 GHG emissions decreased by 42% from the
2019 base year and decreased by 10% compared to 2024. The
combined overall reduction has been driven by the consolidation of
our offices including Switzerland at the end of 2024, which has
reduced energy demand. As our target uses the location-based
methodology, our Scope 2 emissions are also determined by the
emissions intensity of electricity grids. The decarbonisation of grids,
such as in the UK, has also supported emissions reductions.
Our actions
Reducing energy consumption: in 2025, we continued to
implement energy-saving and decarbonisation projects across our
main global operations. This included projects such as improving
plant efficiency, enhancing heating controls and decommissioning
old air-conditioning assets.
Implementing environmental management systems (EMS): in
2025, we added our Zurich office to the ISO 14001 certification. The
buildings that represent 83% of our building-related Scope 1 and 2
emissions are certified to the ISO 14001 standard. Certification
includes regular audits, holding us accountable to site-level targets.
Transitioning our company car fleet to hybrid and electric:
company car emissions accounted for 29% of our base year Scope 1
emissions. We therefore set a target to transition to hybrid or fully
electric vehicles by 2025, and to fully electric by 2030 unless
impractical. In 2025, 91% of our fleet was hybrid or electric, an
increase from 87% in 2024. Infrastructure challenges have
prevented us from meeting our 2025 goal. However, we estimate
95% of the fleet can transition by the end of their lease period.
Direct activities: office electricity sourcing
Our target: increase annual sourcing of renewable
electricity to 100% by 2025
1
Electricity use from our offices worldwide accounts for 89% of
our Scope 2 GHG emissions. Therefore, we are committed to
sourcing 100% renewable electricity for all our owned or leased
offices globally. We joined the RE100 initiative in 2019 and aim
to align with their renewable electricity sourcing criteria.
In 2024, we achieved 100% renewable electricity for our global
operations for the first time, one year ahead of schedule. We
remain committed to sourcing 100% renewable electricity each
year and doing what we can to increase the share of electricity
sourced through more direct methods, where possible.
Our progress
In 2025, we maintained the annual sourcing of renewable electricity
at 100%. Our 2025 figures align with the RE100 criteria, which will be
assessed in our 2026 CDP submission. Sourcing challenges still exist
in some regions where we operate; however, since the consumption
from these locations accounts for only 1% of our total electricity
consumption, we are able to exclude them from our boundary in
accordance with RE100 guidelines.
Our actions
Increase renewable electricity use: we aim to install onsite
renewables at our owned or controlled offices. Where this is not
possible, we purchase renewable electricity directly from suppliers or
switch to green electricity contracts. For offices where we do not
control the supply, we acquire renewable electricity certificates.
Engage stakeholders: we work with landlords and managing
agents to secure renewable electricity contracts, and include “green”
clauses in leases to support renewable electricity sourcing.
1. For all offices owned or leased by Schroders (to cover the boundary of
allScope 2 emissions within our financial control as defined by the
GHGProtocol).
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
193 Schroders Annual Report and Accounts 2025
Value chain activities: business travel
Our target: reduce absolute business travel GHG emissions
by 50% by 2030 from a 2019 base year
Our operational Scope 3 value chain emissions (excluding
financed emissions) are approximately 32 times greater than
our Scope 1 and 2 emissions. Since 96% ofthese Scope 3
emissions relate tobusiness travel and our supply chain,
wehave set additional targets fortheseareas.
By establishing a business travel emissions reduction target we
can reduce impacts across the value chain by encouraging
sustainable travel practices and partnering with airlines and
travel suppliers that are also taking climate action.
Our progress
Our business travel GHG emissions decreased by 60% from the 2019
base year and decreased by 35% compared to 2024. This is the first
year emissions have fallen since 2021, following increased travel
after Covid-19. It suggests that our travel emissions may be
stabilising at a much lower level than our pre-pandemic base year
emissions. In 2025, we flew fewer miles compared to 2024.
Theaverage emissions per mile of air travel also decreased by 27%
based on the Department for Environment, Food and Rural Affairs
(Defra) sources, leading to an overall reduction in travel emissions.
Our actions
Encouraging sustainable travel practices: business travel is a
necessary part of how we work and collaborate. However, we
continually challenge ourselves regarding the purpose, frequency
and mode of travel. Our Group Travel Policy also aims to keep travel
to a minimum and promote more sustainable transport options.
Travel data analytics and insights: we use advanced reporting
tools to analyse travel spend and emissions at the business unit
level. This data is provided to business leaders to inform planning
and travel budgeting.
Selecting sustainable travel partners: sustainability is a key
consideration when selecting preferred airline partners and we
routinely benchmark their sustainability performance and
commitments. All of our preferred airline partners have “net zero
by2050” targets.
Value chain activities: supply chain
Our target: encourage our suppliers to set science-based
targets so that 67% in scope
1
(by GHG emissions) have
done so by 2026
By establishing a supplier engagement target, we can influence
decarbonisation efforts within our supply chain and foster
stronger relationships. This approach will enhance efficiency,
transparency and resilience across the value chain.
We define science-based targets as those validated by, or
aligned with, SBTi criteria to support a 1.5°C pathway, covering
Scope 1, 2 and 3 emissions. We also recognise other
frameworks meeting SBTi standards, such as the Carbon Trust’s
Route to Net Zero Standard (Advancing) and the SME Climate
Commitment. Our methodology will continue to evolve to
incorporate emerging SBTi-aligned certifications.
Our progress
In 2025, 42% of our suppliers in scope
1
(by GHG emissions) had set a
science-based target, compared to 33% in 2024. The 9 percentage
point increase from 2024 is because more suppliers have set targets,
mainly in the legal and professional services sectors. Facilities
management suppliers who took part in our Climate Accelerator
Programme have also gone on to set their own targets. We are also
seeing progress in the number of suppliers setting other types of
climate targets or commitments.
Our actions
Setting supplier expectations:in 2025 we updated our supplier
contractual obligations and Supplier Code of Conduct, where we
require suppliers to comply with environmental regulations,
measure and report GHG emissions, establish an emissions
reduction plan and provide updates on their progress.
Supplier insights:we reviewed and updated supplier climate
targets and maturity ratings based on public disclosures and
science-aligned initiatives. This enables targeted engagement based
on strategic importance, spend, emissions and climate maturity.
Supplier engagement:we continue to collaborate with suppliers
through our Climate Accelerator Programme, which provides
advisory support, online tools and workshops to help them develop
and commit to science-based targets. All suppliers in our first cohort
have formally submitted their targets to the SBTi. We have started to
identify suppliers to join our second cohort, aiming to support them
to set science-aligned targets.
1. Includes the following Scope 3 categories: 1 Purchased goods and
services; 2 Capital goods; and 4 Upstream transportation and distribution.
Beyond value chain mitigation
Our primary focus is on decarbonisation, prioritising actions and influence to reduce GHG emissions. As we transition to net zero we see
a supplementary role for high-integrity carbon credits – used to neutralise unavoidable emissions during and after our transition. Since
2019, we have purchased carbon credits to mitigate impacts beyond our value chain. We have compensated for our Scope 1, 2 and all
relevant operational Scope 3 emissions – excluding emissions associated with suppliers and our investments – using carbon credits. We
believe this complements our science-based reduction strategy. More information is available at www.schroders.com/carbon-credits.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
194 Schroders Annual Report and Accounts 2025
Climate governance
Board oversight
The Board is responsible for approving the Group’s strategy, within
which sustainability is embedded. It retains ultimate responsibility for
overseeing sustainability-related matters, which are integrated into
the Group’s Governance and Enterprise Risk Management
frameworks. Oversight is exercised through direct Board
engagement, the work of its Committees, and delegation to the
Group Chief Executive.
Each year, the Board receives a sustainability briefing. In 2025, the
session covered external developments, including regulatory and
political changes, and assessed the Group’s strategic positioning and
emerging areas of client interest. The Board also reviewed the
Corporate Sustainability framework and received an update on
progress against the Group’s science-based targets. In addition to
this annual update, the Group Chief Executive escalates relevant
matters from the Group Sustainability and Impact (GSI) Committee
to the Board throughout the year, as required.
The Audit and Risk Committee is the principal Board committee
responsible for overseeing climate-related risks. It reviews the
sustainability risk appetite statement annually and receives quarterly
updates on risk exposures, climate-related performance indicators,
and relevant legal and regulatory developments. Further detail on
the Committee’s role and activities during the year can be found on
pages 53 to 60.
Remuneration linked to sustainability
The Remuneration Committee oversees the integration of
sustainability measures within the Group’s Remuneration framework.
Sustainability-aligned metrics are included in the non-financial
element of the annual bonus scorecard for executive Directors.
Performance against sustainability goals is considered in the annual
compensation review for individuals who have the ability to influence
our investment and business operations, ensuring alignment with
our commitment to responsible business practices. Further detail on
the Committee’s role and activities during the year can be found on
page 61.
Board induction and training
To support effective oversight, new Directors receive briefings on
sustainability matters as part of their induction programme.
Thesecover the Group’s sustainability commitments, progress
against targets, and key initiatives. Sustainability is also reflected in
the Board’s skills matrix to help maintain the necessary expertise for
overseeing climate-related risks and opportunities effectively.
Inaddition, the Board receives an annual sustainability briefing to
remain informed about emerging issues, regulatory developments,
and evolving stakeholder expectations.
Management’s role
Board-level accountability for sustainability matters is assigned to
theGroup Chief Executive. In fulfilling these responsibilities, he is
supported by the GSI Committee, which plays a central role in
overseeing the Group’s Sustainability framework. The Committee
meets quarterly and monitors progress against key commitments
and targets, including those related to climate, biodiversity and
human rights, and manages the Group’s external positioning on
sustainability matters. It also monitors the obligations under the
Group Climate Transition Action Plan.
During 2025, the Committee refined the Group’s sustainability
narrative and introduced a scorecard aligned with the Sustainability
framework to enhance transparency and performance monitoring.
The Committee reports to the Board through the Group
ChiefExecutive.
Management-level accountability is held by the Global Heads of
Corporate Sustainability and Sustainable Investment, both of
whomare members of the GSI Committee. They are supported
intheir responsibilities by a number of advisory committees and
working groups.
The Global Head of Corporate Sustainability is responsible for
delivering the Group’s sustainability objectives across its operations,
supported by a team of subject matter experts. She oversees the
collection, validation and reporting of environmental data, leads the
implementation of carbon reduction initiatives, and embeds
sustainability principles within organisational processes.
Sheprovides quarterly updates to the GSI Committee.
The Global Head of Sustainable Investment is responsible for
developing and overseeing the Group’s sustainable investment
strategy. He is supported by the Sustainability Executive Committee
(Sustainability ExCo), which typically meets monthly and includes
senior representatives from Public Markets, Schroders Capital and
Wealth Management. The Sustainability ExCo reviews regulatory
developments, advises on the evolution of sustainability and impact
investment frameworks, and monitors client engagement. It plays a
key role in disseminating sustainability-related information across
the business and provides quarterly reports to the GSI Committee.
Sustainable investment is further supported by dedicated teams and
expert individuals embedded across the firm, including within
investment teams and client-facing functions.
Entity governance
Group entities required to publish their own TCFD reports have
adopted the Group’s overarching governance approach, as outlined
in these disclosures. In addition to central governance structures,
certain Schroders entities and investment teams maintain dedicated
committees to oversee sustainable investment activities.
Within Asset Management, the Schroders Capital Sustainability and
Impact Committee is responsible for developing, co-ordinating and
implementing sustainability and impact initiatives across Schroders
Capital. Schroder Real Estate Investment Management Limited
(SREIM) has additional governance arrangements reflecting its focus
on real estate assets. The SREIM board receives reports from the
Head of Sustainability and Impact Investment, Real Estate which
include updates to the Real Estate Sustainability Policy and progress
towards climate targets.
Within Wealth Management, the Wealth Management Sustainable
Investment Committee has responsibility for recommending Wealth
Management’s sustainability models, as well as providing investment
strategy and direction for client portfolios that are linked to the
sustainable models. The Wealth Management Sustainability
Governance Forum oversees climate-related regulatory policies and
commitments for the wealth business. The Wealth Management
Executive Committee reviews new products and investment
offerings for the Group’s wealth management business, including
those related to sustainability.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
195 Schroders Annual Report and Accounts 2025
Climate risk management
Climate in strategic and financial planning
Sustainability, including climate change, is considered during our
strategy and financial planning processes. Each year, we review the
risks and opportunities that could materially affect the Group and
assess whether changes to our business model are required over a
five-year horizon. This review is led by the Group Chief Executive and
Chief Financial Officer, working closely with management teams,
andtakes into account forecast AUM and the potential impact of
changing client behaviour on future AUM and revenues. As part of
this process, we subject our business plan to stress testing. Stress
testing of the Group’s business plan assesses the impact of key, new
and emerging risks that could materially affect the Group over the
five-year planning period. The severe but plausible stress scenarios
applied include consideration of market stresses that reduce the
value of our AUM, the crystallisation of climate risks earlier than
expected, a material operational incident that damages our
reputation and drives outflows, and a sustained decline in net
operating revenue margins. In assessing the potential impact of
climate change on our AUM across different future pathways, we
consider the results of our climate scenario analysis (see page 192).
The findings from this analysis feed into our viability statement (page
34) and into our assessment of climate-related risks and
opportunities (pages 187 and 188).
Climate in risk management
The Group’s Risk Management framework (see page 25) explains
how we manage risks (including “sustainability risk including climate
change”). That section (pages 25 to 31) also describes our lines of
defence, risk appetite and risk assessment processes.
Risk management life cycle
The risk management life cycle is relevant to all aspects of the
Group, including our business operations and our investment
management business, regardless of product types or
investment strategy.
Identification
– We have “top-down” and “bottom-up” approaches to
identifying key risks across the Group.
– Line management are responsible for identifying detailed
risks, including climate-related risks that impact their
business areas. This includes risks within our investment
activities and own operations.
Assessment
– Our key risks are assessed by our Group Risk function and
discussed with senior management and subject matter
experts across the Group.
– Each key risk is assessed against the risk appetite statement
to determine whether it is within tolerance.
– Line management are responsible for assessing the risks
within their business areas (for example, via research and
analytics for investment activities).
– The assessments are presented to relevant governance
bodies (for example, the Group Risk Committee).
Management
– Risks are managed, and resources assigned, in line with
prioritisation by business areas.
– Progress is monitored by key committees, including the GSI
Committee and the Sustainability ExCo.
An internal working group including senior representatives from
Sustainable Investment, Corporate Sustainability, Finance and Legal
conducted an exercise which identified, assessed and prioritised the
Group’s exposure to climate risks and opportunities, amongst other
sustainability issues. This exercise informed the development of our
climate risks and opportunities table on pages 187 and 188.
Our fund managers across Schroders integrate material climate risk
considerations
1
within their investment process. We have developed
proprietary frameworks and tools to support these assessments. For
further detail please see pages 189 and 190.
Investment Risk independently oversees climate risk metrics (such as
financed emissions and weighted average carbon intensity for Scope
1 and 2 emissions) at the investment desk level. Where appropriate,
Investment Risk challenges how portfolios have taken account of or
mitigated climate risks. Such issues would also be raised at the
appropriate Asset Class Risk and Performance committees. Ongoing
portfolio compliance with any binding commitments related to
climate risk as described in investment policies and process
documents is monitored on a pre- and post-trade basis.
InvestmentRisk provides oversight over this monitoring process,
ensuring any actual, or potential, breaches are appropriately
escalated and appropriate remedial actions are undertaken. The
Model Validation team within Investment Risk independently reviews
the climate models and tools used by investment teams. On a
quarterly basis, the portfolio temperature score of in-scope Group
assets is calculated and our progress towards meeting our net zero
targets is reviewed. This is reported to the Audit and Risk Committee
and GSI Committee.
Legal provides advice and interpretation to help align our approach
to managing climate risk with applicable laws, regulations and any
applicable contractual obligations. It advises on various aspects of
the legal exposures related to climate change, such as liability risks,
disclosure requirements, and evolving regulatory frameworks. Legal
also supports the interpretation of climate-related legislation and
helps mitigate reputational and litigation risks.
Compliance provides advice to support adherence to external
regulatory requirements and, in turn, internal policies related to
climate risk. Compliance also plays a role in identifying gaps,
escalating breaches and supporting the integration of climate risk
into the firm’s broader Sustainability framework.
Internal Audit provides independent challenge and assurance
overrisk management, control and governance arrangements
implemented by management, including those pertaining to
climatechange.
Our Public Policy team actively engages with relevant regulators,
industry trade associations and other bodies in our key markets of
the UK and EU. This team also supports with regulatory horizon
scanning and provides our responses to formal consultations, in
order to provide insights to policymakers to influence the
simplification, unification and streamlining of regulation, including
climate-related regulation.
Facilities Management and Procurement manage our operational
risks, including climate risks, with regard to our offices and third-
party suppliers, with advice and support from the Corporate
Sustainability team. We periodically conduct a strategic review of our
offices, which includes a detailed assessment of the risks and
opportunities associated with our existing locations. We are
committed to certifying our largest offices to the ISO 14001 EMS
standard, which contains several requirements relating to climate
risk assessment and management. We assess the physical climate
risk exposure of our owned and leased offices across various
timeframes and scenarios. The outcome of these assessments
informs our site-specific action plans. We also conduct an
environmental assessment when reviewing new office building
locations, including those resulting from an acquisition. If a physical
climate event hinders our ability to operate, we have business
continuity arrangements in place. Our key suppliers are also subject
to ongoing monitoring, due diligence reviews and incident
management response planning. Our Supplier Code of Conduct
2
summarises the standards we expect.
1. This is the process of identifying, analysing and incorporating relevant and
material environmental, social or governance factors (including climate
change) into investment decisions. Such factors may not be the primary
factors that influence an investment decision.
2. www.schroders.com/supplier-code-of-conduct
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
196 Schroders Annual Report and Accounts 2025
The impact of climate on our Group principal risks
“Sustainability risk, including climate change” is disclosed on page 27 as a principal risk to the Group. However climate change is a pervasive
risk across many of our other principal risks and the following table details our other principal risks and the extent to which climate change
impacts each of these. Climate change has a greater impact on some of our principal risks – business model disruption, people and conduct
and regulatory risk, financial risk, investment performance risk – and these are reflected in our table on pages 187 and 188 using TCFD-
recommended terminology.
Business model
disruption
Climate change may drive the evolution of financial products and changes in regulation, resulting in
transition risks that may impact our business model.
Financial risk
Climate change may amplify market, credit, liquidity and capital risks by increasing the volatility and
unpredictability of financial markets, affecting asset values, capital flows, and AUM, and may be
exacerbated by challenges arising from heightened geopolitical and policy uncertainty.
Information
security and
technology risk
We do not envisage that all climate change risks will have a direct information security or technology
impact; however, this depends on the availability of appropriate data sources along with the
platforms that our analytical tools rely on.
Investment
performance risk
Investment performance may be impacted if the focus on sustainability or climate change leads to
poorer performance outcomes. In addition, there is a risk that portfolios do not meet their
sustainability or climate-related objectives, which may have a detrimental effect on our ability to
retain AUM.
Operational
process risk
Operational processes are impacted by climate change risks to the extent that they are new or need
to be adapted to facilitate investment analysis, product development and reporting, among others.
People and
conduct risk
Employees may be harder to retain or attract if we do not actively address climate change risks.
Regulatory risk
Numerous climate-related regulatory requirements continue to be implemented across the
jurisdictions we serve. Our failure to meet these requirements could result in regulatory censure or
fines relating to sustainability, making it more difficult for us to operate effectively as an asset
manager. Scrutiny of greenwashing risk remains high.
Third party risk
Climate-related events, for example extreme weather or regulatory change, can disrupt third parties
that Schroders relies on, increasing the risk of service interruptions and supply chain issues. Failure
to manage these risks effectively may compromise Schroders’ ability to meet its strategic and
regulatory obligations.
Transformation
risk
Climate-related factors can increase transformation delivery risk by requiring changes to business
models, processes and strategies, influencing the nature, pace and complexity of organisational
change. Regulatory developments, evolving stakeholder expectations and operational dependencies
driven by sustainability and climate change may introduce additional challenges and opportunities
throughout the transformation programme.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
197 Schroders Annual Report and Accounts 2025
Metrics and targets
Our climate targets, progress and actions are covered in pages 185 to 197 of these disclosures. We use a number of metrics to monitor our
performance against our climate strategy to make sure we respond effectively to the climate-related risks and opportunities facing our
business. This section outlines the metrics we report on and the methodologies used. These are aligned with the TCFD recommendations
and the approved methodologies of the SBTi.
How we invest
Financed emissions data methodologies
andapproach
Financed emissions methodology
We report the emissions from our portfolio holdings (Scope 3, category
15: investments) in line with the recommendations made by the TCFD.
We use methodologies and approaches for calculating financed
emissions and setting targets that are appropriate for each asset class,
and designed to mitigate what we perceive as investment risks.
– For our direct and indirect investments in equity, corporate bonds
and sovereign bonds we use the Partnership for Carbon
Accounting Financials (PCAF) methodology to inform our
calculations for absolute emissions, carbon footprint and the
weighted average carbon intensity (WACI) of our portfolios.
– For our directly managed real estate holdings, we use the PCAF’s
attribution guidance for real estate, whilst also aligning with our
annual Global Real Estate Sustainability Benchmark (GRESB)
product submissions methodology.
– For our infrastructure holdings within our Schroders Greencoat
business, we use the GHG Protocol’s guidance for our
organisational boundary (the equity-share approach) and for
calculating the emissions associated with our investments.
Financed emissions scope
We report data for a range of asset classes across our direct and
indirect investments. This includes: listed equities, corporate bonds,
real estate investment trusts (REITs) and exchange-traded funds
(ETFs), sovereign bonds, directly managed real estate holdings,
andinfrastructure within our Schroders Greencoat business. For
certain other asset classes, we can report financed emissions at
product level but do not aggregate to the asset-class level to report.
This largely relates to the reliability of the underlying data. This year,
we have introduced additional metrics for some of our indirect
investments, including carbon footprint and WACI, to enhance
transparency and demonstrate our ongoing commitment to climate-
related disclosures.
SBTi-validated targets methodology
Our science-based targets are set and validated against the SBTi’s
Financial Institutions Near-Term Criteria Version 1 (FINTCv1). This is
aligned with our “net zero by 2050” commitment. We calculate
portfolio temperature scores using the CDP-WWF temperature score
methodology, as per SBTi criteria. This approach calculates the
implied temperature pathway of our holdings based on the level of
ambition to reduce GHG emissions set by our investee companies.
The temperature scores are aggregated on an enterprise value
including cash emissions weighted basis.
SBTi-validated targets scope
We report data for the asset classes that are within the mandatory
scope of SBTi’s criteria as per FINTCv1: listed equities, corporate
bonds, REITs and ETFs (together known as “covered investments”).
Data quality score methodology
We follow PCAF’s methodology to determine the data quality score.
Wealth Management (indirect investments) targets methodology
We assess the extent to which external managers are integrating
climate risk analysis within the investment process of the funds
thatwe are invested in, via a (typically) annual questionnaire. Wethen
use this to classify our strategies across our Net Zero
Alignmentframework.
Wealth Management (indirect investments) targets scope
We report data for discretionary indirect investments on our
approved list only. Legacy assets – those that have either been
transferred in specie to us when we take on new clients or those that
are no longer approved but are still held by clients for various
reasons (typically due to capital gains) – are out of scope.
How we run
our business
Operational emissions data methodologies
and approach
Operational emissions methodology
We use a number of metrics to measure and monitor our
environmental impact, which help us establish our targets. Our
global emissions inventory is reported using the GHG Protocol
Corporate Standard, the GHG Protocol Corporate Value Chain
(Scope3) Standard, and the Global GHG Accounting and Reporting
Standard for the Financial Services Industry.
Operational targets methodology
Our targets are set and validated against the SBTi’s FINTCv1.
Wehave set Scope 1 and 2 (location-based) emissions reduction
targets, as these emissions derive from sources under our direct
financial control. Our targets align with the guidance from the
Intergovernmental Panel on Climate Change (IPCC) Special Report
tolimit global temperature rises to below 1.5°C by 2050.
Emission factors
We use a variety of emission factors, which are determined by the
source of emissions and their location in order that the most accurate
factor is applied. Sources include: Defra, the International Energy
Agency, the US Environmental Protection Agency, the National
Greenhouse Accounts and the Canada National Inventory Report.
Emissions recalculation process: The SBTi requires that
targets be recalculated to reflect any material changes in
climate science and business context. We review our GHG
inventory annually and will restate our data or recalculate our
targets as needed to reflect significant changes to our company
structure, modifications in methodology or errors. We define a
significant change as one that causes a cumulative increase or
decrease in emissions for a particular Scope exceeding 10% of
previously calculated figures. Any restatement or recalculation
will be detailed in our annual reporting.
Target review: The SBTi also stipulates that targets must be
reviewed and, if necessary, recalculated and revalidated at least
every five years.
Data limitations: We acknowledge that emissions data often
relies on estimates or proxy data, which means it can provide an
imperfect view of portfolio exposures or risks. This data can
change significantly from one year to the next as data quality
improves and estimation methods evolve. We strive to make
sure that the data we use is as accurate as possible; however,
we emphasise that any outputs should be regarded as
approximate rather than precise, and historical comparisons
may not be representative as portfolio holdings change.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
198 Schroders Annual Report and Accounts 2025
How we invest
Climate metrics and targets for our investment portfolios
Science-based targets for covered investments, validated by SBTi (°C)
SBTi portfolio temperature score targets progress 2025 2024 2019
Scope 1 and 2 temperature score target of 2.2°C by 2030 2.4 2.4 2.9
Scope 1, 2 and 3 temperature score target of 1.5°C by 2040 2.7 2.8 3.2
Implied linear reduction temperature score required for 2030 target 2.5 2.6 —
Implied linear reduction temperature score required for 2040 target 2.7 2.7 —
Financed emissions AUM coverage (%)
Investment type Asset class type
SBTi covered
investment % AUM
Direct investments
Listed equity, REITs and ETFs Y 42 %
Corporate bonds Y 12 %
Sovereign bonds
1
N 11 %
Infrastructure (Schroders Greencoat) N 1 %
Real estate N 3 %
Indirect investments
Externally managed investments in listed equity, corporate bonds, REITs and ETFs N 3 %
Total AUM coverage
2
(as a proportion of Schroders’ total AUM excl. associates and joint ventures) 72 %
1. This reflects our exposure to bonds issued by sovereign national territories as defined in the PCAF standard.
2. The total AUM covered relates to the proportion of Schroders’ total AUM excluding associates and joint ventures for which we are reporting financed
emissions data indicated in the Absolute emissions and Carbon footprint tables below.
Absolute emissions (MtCO
2
e unless otherwise indicated)
Investment
type
Asset class type Scope 2025 2024 2019 Coverage
Data quality
score
Direct investments
Listed equity, REITs and ETFs
Scope 1 and 2
14.4 13.0 28.7 100 %
2.3
Scope 3 108.3 105.0 177.2 100 % 4.0
Corporate bonds
Scope 1 and 2
5.2 5.5 9.8 100 %
2.8
Scope 3 38.4 36.9 42.6 100 % 4.1
Sovereign bonds
1
Production emissions Scope 1 (inc. LULUCF
2
) 14.6 13.4 N/A 100 % 2.1
Production emissions Scope 1 (exc.
LULUCF
2
)
14.6 13.7 N/A 100 % 4.0
Scope 2 and 3 absolute emissions
7.6 6.3 N/A 100 %
4.0
2024 2023
Infrastructure (Schroders
Greencoat) (ktCO
2
e)
3, 4, 5
Scope 1 and 2 123.4 91.9
Scope 3 1,131.7 993.6
Real estate (ktCO
2
e)
3, 6, 7, 8, 9
Scope 1 and 2 36.4 46.6
Scope 3 95.2 140.9
2025 2024 2019 Coverage
Data quality
score
Indirect
investments
Externally managed
investments in listed equity,
corporate bonds, REITs
andETFs
Scope 1 and 2 1.3 1.3 1.5 100 %
2.2
Scope 3 9.9 9.3 8.6 100 % 4.0
1. Not part of set targets, therefore no base year data available.
2. LULUCF – land use, land use change and forestry.
3. The data for our Schroders Capital businesses is provided on a one-year-
lagged basis due to data availability and collation timeframes.
4. This data includes Infrastructure Asia-managed funds to which Schroders
Greencoat provides advisory services.
5. Out-of scope emissions are the direct biogenic CO
2
emissions associated
with the combustion of biomass and biofuels, and relate only to our
bioenergy assets. Per GHG Protocol guidance, emissions for direct CO
2
emissions from biologically sequestered carbon are reported separately.
The 2024 out-of-scope emissions figure was 1,219 ktCO
2
e; 2023: 1,170
ktCO
2
e.
6. Emissions data is aggregated from product-level GRESB submissions. No
emissions data has been estimated via extrapolation or benchmarking.
7. Scope 1 and 2 absolute emissions represent direct investments only.
8. Scope 3 emissions relate to direct investments’ downstream leased assets
(tenant energy-related emissions) and indirect investments where data is
available. This may not represent 100% of the total Scope 3 emissions for
the portfolio and is impacted by our ability to obtain data from tenants.
9. Emissions data coverage represents 46% of real estate AUM in 2024 and
50% in 2023.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
199 Schroders Annual Report and Accounts 2025
Carbon footprint (tCO
2
e/$m invested unless otherwise indicated)
Asset class type Scope 2025 2024 2019
Direct investments
Listed equity, REITs and ETFs Scope 1 and 2
34.8 42.5 99.1
Scope 3 262.3 342.5 618.8
Corporate bonds Scope 1 and 2
44.9 55.0 94.3
Scope 3 334.1 364.5 413.3
Sovereign bonds
1
Production emissions Scope 1 (inc. LULUCF
2
) 131.7 160.0 N/A
Production emissions Scope 1 (exc. LULUCF
2
) 131.3 163.6 N/A
Scope 2 and 3 emissions
68.8 75.2 N/A
2024 2023
Infrastructure (Schroders
Greencoat) (tCO
2
e/MWh)
3,4,5
Scope 1 and 2 0.008 0.008
Scope 3 0.072 0.081
Real estate (kgCO
2
e/m
2
)
3,6,7,8
Scope 1 and 2 8.3 9.1
All scopes 29.9 36.6
2025 2024 2019
Indirect
investments
Externally managed investments
in listed equity, corporate bonds,
REITs and ETFs
Scope 1 and 2 39.3 45.6 70.6
Scope 3 289.5 326.7 423.2
1. Not part of set targets, therefore no base year data available.
2. LULUCF – land use, land use change and forestry.
3. The data for our Schroders Capital businesses is provided on a one-year-
lagged basis due to data availability and collation timeframes.
4. This data includes Infrastructure Asia-managed funds to which Schroders
Greencoat provides advisory services.
5. The base year is 2022.
6. Emissions data is aggregated from product-level GRESB submissions. No
emissions data has been estimated via extrapolation or benchmarking.
7. Scope 1, 2 and 3 emissions intensity represent direct and indirect
investments and reflects the combined emissions intensity status of the
portfolio.
8. Emissions data coverage represents 46% of real estate AUM in 2024 and
50% in 2023.
Weighted average carbon intensity (WACI, tCO
2
e/$m revenue)
1
Investment type Asset class type Scope 2025 2024 2019
Direct investments Listed equity, corporate bonds, REITs and ETFs Scope 1 and 2 99.4 93.7 180.0
Indirect investments
Externally managed investments in listed
equity, corporate bonds, REITs and ETFs
Scope 1 and 2 106.0 108.3 138.4
1. Emissions are allocated based on portfolio weights (the current value of the investment relative to the current portfolio value) rather than the equity
ownership approach.
Infrastructure (Schroders Greencoat)
1
Additional metrics Unit 2024
5
2023
Renewable energy generated
2
GWh 15,754 12,279
Carbon avoided
3
MtCO
2
e 7.5 5.7
Homes powered
4
millions 5.7 3.6
1. The data for our Schroders Capital businesses is provided on a one-year-
lagged basis due to data availability and collation timeframes.
2. GWh generated reflects the total renewable electricity generated by the
portfolio under management in the last 12 months to 31 December 2024.
3. Calculation assumes that renewable electricity generation replaced the
marginal generator in the relevant country and applies the carbon
intensity associated with the marginal generation asset (tCO
2
/MWh).
4. Based on the average annual household energy or heat consumption for
renewable electricity generation, using the latest reported figures and
reflecting the fund’s electricity and heat generation.
5. The 2024 metrics have been restated to incorporate additional data from
Asia Infrastructure managed funds, which was not available at the time of
publishing the Group’s Climate Report 2024. Asia Infrastructure managed
funds had not been included in prior reporting.
Wealth Management (indirect investments): Net
zeroalignment of listed equity and credit funds by
%of AUM
1, 2
2025 2024 2030T 2040T 2050T
Not aligned 73 % 65 %
Committed to aligning 24 % 28 %
Aligning to a net zero pathway 1 % 1 %
100 %
Aligned to a net zero pathway 2 % 6 %
100 %
Achieving net zero 0 % 0 % 100 %
1. This table shows the percentages for 2024 and 2025 across the categories.
For 2030 and beyond, the table shows the target percentages; the
composition of the bars is illustrative and may be subject to change.
2. Refers to third-party and Schroders funds on our approved buy list, which
Wealth Management’s discretionary business selects from.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
200 Schroders Annual Report and Accounts 2025
How we run our business
Operational climate metrics
Our operational science-based targets
Operational science-based targets (SBTs) progress 2025 2024 2019
Reduce absolute Scope 1 and 2 (location-based) emissions by 46% by 2030
1,2
41% 39% N/A
Increase annual sourcing of renewable electricity to 100% by 2025
2,3
100% 100% 50%
Reduce absolute Scope 3 business travel emissions by 50% by 2030
1,2
60% 39% N/A
67% of suppliers (by GHG emissions) to set science-based targets by 2026
1,2
42% 33% 1%
1. Target boundaries: 100% of emissions relevant to each Scope are included within the target boundary. All acquisitions are accounted for within this boundary
as long as they fall under our financial control. The target boundaries align with our financial control reporting boundary, with no exclusions.
2. From a 2019 base year.
3. Our RE100 target boundary includes all properties owned or leased by Schroders, covering all Scope 2 electricity emissions within our financial control.
Our operational GHG emissions
1
Greenhouse gas emissions (tCO₂e) 2025 2024 2019
Total Scope 1 emissions 687 483 1,110
Total Scope 2 emissions (location-based) 3,310 3,679 5,718
Total Scope 2 emissions (market-based) 405 380 3,255
Total Scope
1 and 2 emissions
(location-based)
UK operations 2,306 2,366 4,621
Outside UK operations 1,691 1,796 2,207
Total 3,997 4,162 6,828
Total Scope
1 and 2 emissions
(market-based)
UK operations 711 494 2,408
Outside UK operations 381 369 1,957
Total 1,092 863 4,365
Energy consumption (kWh)
UK operations 12,158,568
12,036,727
18,495,195
Outside UK operations 5,186,087
5,673,320 7,770,602
Total 17,344,655
17,710,047
26,265,797
Greenhouse gas emissions (tCO₂e) 2025 2024 2019
Material Scope 3 operational emissions
(covered by our science-based targets)
Supply chain (categories 1, 2 and 4) 115,069 143,648 88,090
Business travel (category 6) 8,648 13,386 21,852
Other Scope 3 operational emissions
2
4,594
4,914
5,106
Total Scope 3 operational emissions
128,311 161,948 115,048
Total operational emissions (location-based)
132,308 166,110 121,876
Metrics 2025 2024 2019
Scope 1 and 2 tCO
2
e per employee
3
0.65 0.65 1.27
Renewable electricity consumption (RE100) 100%
100% 50%
1. Incendium Consulting Ltd assured all of our operational emissions and progress towards targets. This assurance was provided in accordance with AA1000AS
v3 Type 2 moderate level assurance.
2. Scope 3, categories 3, 5, 7, 8 and 13.
3. The monthly average number of employees for our reporting period is as follows: 2025: 6,110; 2024: 6,385; and 2019: 5,359.
Strategic report Governance Financial statements Shareholder and sustainability information
Climate-related financial disclosures continued
201 Schroders Annual Report and Accounts 2025
Governing our non-financial information
The table below outlines Schroders’ policies across certain key non-financial areas, with links to where further information on these topics can
be found in this report.
Description of policies and policy outcomes
1
Climate and
environment
Further information
on pages 20 to 22 and
185 to 201.
We have made a number of climate and nature-related commitments to support achieving net zero by 2050, or
sooner. Our Group Climate Change Position Statement and Group Nature and Biodiversity Position Statement
outline our position in relation to environmental management, and on nature and biodiversity, for the
investments we manage and our operations.
Our people
Further information
on pages 23 to 24, 52
and 61 to 71
We seek to cultivate a purpose-led, high-performing culture that is inclusive and empowers all to have
theopportunities to grow. Our Values, and policy on Board diversity serve to achieve this outcome.
Our Directors’ Remuneration Policy outlines our approach for setting Directors’ remuneration.
Furthermore, our Group Whistleblowing Policy outlines the process for employees and third parties to report any
concerns, inconfidence and anonymously.
We have a number of internal policies and standards that are not published externally. These policies cover our
commitment to provide equal opportunities in employment and to prevent all forms of discrimination and sexual
harassment, as well as to encourage appropriate conduct and regulatory compliance.
Social matters
Further information
on pages 23 to 24 and
32 to 33.
Community investment is a core part of our culture. We have an internal policy that sets out a framework for
volunteering, offering paid time for employees to use their skills and time to support good causes.
Human rights
Further information
on pages 20 to 24 and
32 to 33
Schroders is committed to upholding human rights. Our Group Human Rights Position Statement outlines our
stance on respecting human rights.
Our Modern Slavery Statement includes details of the policies, processes and measures we have in place to
assess and manage modern slavery risks across our business.
Anti-bribery and anti-
corruption
Further information
on pages 25 to 31 and
53 to 60.
We maintain a strict policy of zero tolerance towards acts of bribery and corruption. Our utmost priority is to
safeguard the interests of our clients, shareholders, employees, third-party vendors and the wider community
from any form of financial crime.
To reinforce this commitment, we have implemented a comprehensive set of internal policies, covering aspects
such as financial crime (including bribery and corruption, inducements, money laundering, terrorist financing,
taxevasion, proliferation financing, fraud and sanctions), gifts and entertainment, and conflicts of interest, all of
which unequivocally prohibit any individual associated with our organisation from engaging in activities that
promote, endorse or facilitate financial crime.
Group tax strategy: We aim to comply with both the spirit and letter of the law and are committed to conducting
our tax affairs in an open and transparent way. Our tax strategy, available at
www.schroders.com/tax-strategy, sets out our approach to tax matters across the Group more generally.
Thisstrategy is reviewed and approved annually by the Audit and Risk Committee. We disclose our total tax
contribution, which shows the total amount of tax we pay and collect each year, at
www.schroders.com/tax-contribution.
The following policies and statements apply to multiple categories noted above:
Our Group Sustainable Investment Policy establishes our overall approach to sustainable investing. It outlines the governance structure
for managing sustainable investment activities in line with our guiding principles. The policy applies across our Public Markets, Schroders
Capital and Wealth Management businesses and covers themes such as climate and environment (including nature and biodiversity)
andhuman rights.
Our Engagement Blueprints outline our principles for engaging with investee companies and key stakeholders. They include measures
relating to climate and environment (including nature and biodiversity), human rights, employees and corporate governance.
Our Supplier Code of Conduct outlines the standards and behaviours we expect from our suppliers, including on climate and
environment, employees, human rights and anti-bribery and anti-corruption.
Our Statement of Compliance with the UN Principles for Responsible Investment further demonstrates our commitment to
environmental, social and governance factors.
1. Across Schroders, policies and statements of intent are in place to foster consistent governance on a range of issues. For the purposes of the non-financial
information statement, these include, but are not limited to, the policies and statements detailed in this report.
Strategic report Governance Financial statements Shareholder and sustainability information
Governing our non-financial information
202 Schroders Annual Report and Accounts 2025
Glossary
About our capabilities and business channels
Public Markets
Comprises equities, fixed income, multi-asset and core solutions
asset classes. Core solutions represent strategies designed to
deliver outcome-based solutions for clients including Liability
Driven Investment (LDI), Fiduciary Management and Outsourced
Chief Investment Officer (OCIO) services.
Schroders Capital
Provides clients access to opportunities in private markets, such
as private debt and credit alternatives, real estate, private equity
and infrastructure.
Wealth Management
Provides wealth management and financial planning for ultra-
high-net-worth, high-net-worth and affluent individuals
and charity clients as well as family offices and advisers.
Institutional channel
Represents assets managed on behalf of clients such as pension
funds, insurance companies and government funds including
sovereign wealth funds, with distribution direct to the sponsor
and through consultants.
Intermediary channel
Comprises assets within branded products that are distributed
through intermediaries including banks, platforms and
independent financial advisors (IFAs) and which share similar
economic characteristics in their relationship with the Group.
Alternative Performance Measures
An alternative performance measure (APM) is a financial
measure ofhistorical or future financial performance, financial
position, or cash flows, other than a financial measure defined
or specified inthe applicable financial reporting framework.
The Group’s APMs aredefined below.
Adjusted cost to income ratio
Adjusted operating expenses as a ratio of adjusted net
operating income (see notes 1(b) and 3(a)).
Adjusted operating profit
Adjusted operating profit is the profit measure used by
management in assessing the operational performance of the
business. It excludes acquisition costs and related items,
transformation costs and portfolio restructuring items (see note
1(b)).
Adjusted operating earnings per share
Adjusted operating profit after tax excluding non-controlling
adjusted operating earnings divided by the relevant weighted
average number of shares (see note 5).
Payout ratio
The total dividend per share in respect of the year (see note 6)
divided by the basic adjusted operating earnings per share.
Active management
The management of investments based on active decision-making
rather than with the objective of replicating the return of an index.
Annualised net new revenue
The net fee income that would be earned over a one-year timeframe
if the net new business was all transacted on the same day and there
were no market movements or other changes to assets under
management or fee rates over that year. It is calculated as gross new
funds from clients multiplied by the applicable net fee margin for
each flow, less gross funds withdrawn multiplied by the applicable
net fee margin for each flow. This measure provides additional
information to assess more accurately the impact of net new
business on the Group’s net operating revenue. Performance fees,
carried interest and transactional fees are not included.
Assets under management (AUM)
AUM represents the aggregate value of client assets managed,
advised or otherwise contracted, from which the Group, including
joint ventures and associates, earns operating revenue.
Asset Management AUM includes investment management, OCIO,
fiduciary management and liability management services.
For Schroders Capital Private Equity, the aggregate value of assets
managed includes client commitments on which we earn fees. This is
changed to the lower of committed funds and net asset value,
typically after seven years from the initial investment, in line with the
fee basis.
Wealth Management AUM comprises the aggregate value of assets
where Schroders provides advice or discretionary management
(Advised AUM), platform services (Platform AUM) and investment
management services (Managed AUM). Advised AUM comprises
assets where Schroders provides discretionary or advisory
management services, including assets where the client
independently makes investment decisions. Platform AUM
represents the value of assets on the platform that enables financial
advisers to administer and manage their clients’ accounts by
providing dealing and settlement services, valuation statements and
custody services through a third party. Managed AUM includes
assets where the client invests in Schroders’ funds.
Basis point (bps)
One one-hundredth of a percentage point (0.01%).
Carried interest
Carried interest is similar to the performance fees we may earn
inour Public Markets business, but is part of Schroders
Capitalfee structures.
CDP
CDP is a global non-profit that runs an environmental disclosure
system for companies, capital markets, cities, states and regions to
manage their environmental impacts.
Client duration
Client duration is an estimation of how long we hold clients’ assets
on average. It is calculated by dividing annual gross redemptions by
the beginning of period AUM. It helps us understand how our client
retention efforts are progressing.
Client Group
The Client Group brings together our key client-facing functions,
including Sales, Client Servicing, Product and Marketing.
Strategic report Governance Financial statements Shareholder and sustainability information
Glossary
203 Schroders Annual Report and Accounts 2025
Client investment performance
Client investment performance is a measure of how investments
are performing relative to a benchmark or other comparator. As an
active asset manager, we prioritise consistently delivering positive
investment outcomes for our clients, which is why our three-year
investment performance is a key performance indicator for the
Group. Itis calculated internally by Schroders to give shareholders
and financial analysts general guidance on how our invested assets
are performing. The data is aggregated and is intended to provide
information for comparison with prior reporting periods only. It is
not intended for clientsor potential clients investing in our products.
Calculations forinvestment performance are made gross of fees,
with the exception of those for which the stated comparator is a net-
of-fees competitor ranking. When a product’s investment
performance is disclosed in product or client documentation, it is
specific to the strategy or product. Performance will either be shown
net of fees at the relevant fund share-class level or it will be shown
gross of fees with a fee schedule forthe strategy supplied.
The calculation includes applicable assets under management that
have a complete track record over the one-year,three-year and five-
year reporting periods, respectively.
Applicable assets under management does not include our joint
ventures and associates and excludes £92.2 billion of assets,
principally comprising: those managed by third parties or held
on an execution-only basis, the majority of assets managed by
Schroders Capital Real Estate Hotels, non-discretionary assets and
assets held on a custody-only basis, and Wealth Management
platform assets on the Benchmark Fusion platform.
Performance is calculated relative to the relevant comparator for
eachinvestment strategy, as summarised below. These fall into one
offour categories, the percentages for each of which refer to the
three-year calculation:
– For 71% of assets included in the calculation, the comparator
is the relevant benchmark.
– If the relevant comparator is to competitor rankings, the relative
position of the fund to its peer group on a like-for-like basis
is used to calculate performance. This applies to 12% of assets
in the calculation.
– Assets for which the relevant comparator is an absolute return
target are measured against that absolute target. This applies
to 12% of assets in the calculation.
– Assets with no specific outperformance objective, including
those with a “buy and maintain” objective, are measured against
a cash alternative, if applicable. This applies to 5% of assets
in the calculation.
Climate adaptation
In human systems, the process of adjustment to actual or expected
climate and its effects, in order to moderate harm or exploit
beneficial opportunities. In natural systems, the process of
adjustment to actual climate and its effects; human intervention may
facilitate adjustment to expected climate and its effects.
Climate mitigation
A human intervention to reduce emissions or enhance the sinks of
greenhouse gases.
CONTEXT
TM
A proprietary tool developed and used to support the analysis of
companies’ and issuers’ management of the environmental, social
and governance trends, challenges and opportunities that Schroders
believes to be most relevant to that company’s or issuer’s industry. It
provides access to a wide range of data sources chosen by
Schroders. Any views or conclusions integrated into Schroders’
investment decision-making or research by fund managers or
analysts through the use of CONTEXT™ will reflect their judgement of
the sustainability of one or more aspects of the relevant company’s
or issuer’s business model rather than a systematic and data-driven
score of the company or issuer in question.
Defined benefit (DB) pension scheme
A pension scheme where the employer has an obligation to provide
participating employees with pension payments that represent
a specified percentage of their salary for each year of service.
Defined contribution (DC) pension scheme
A pension scheme where the employer’s contribution to an
employee’s pension is measured as, and limited to, a specified
amount, usually a percentage of salary. The value of the “pension
pot” can go up or downdepending on how the investments perform.
Digital Assets Centre of Excellence (CoE)
The CoE brings together a dedicated team of digital asset specialists
based in Singapore, driving thought leadership and the development
of best practice through policymaker engagement and industry
collaboration globally across Schroders and the broader asset
management industry.
Dry powder and non-fee-earning dry powder
Within Schroders Capital, fundraising comprises new funds invested
into our products and contractual commitments from clients to
invest their capital in the future. These commitments are called upon
once relevant investments have been identified and the capital is to
be deployed. Uncalled commitments are referred to as dry powder.
Depending on theapplicable fee arrangements, dry powder may or
may not attract management fees. Uncalled commitments that do
not attract fees are referred to as non-fee-earning dry powder.
Employee benefit trust
A type of discretionary trust established to hold cash or other assets
forthe benefit of employees, such as to satisfy share awards.
Enterprise leadership
Enterprise leadership means leading the organisation as a single,
cohesive unit, looking beyond individual functions to focus on the
common good. It involves connecting different parts of the business,
encouraging collaboration, and making decisions that benefit the
whole organisation, not just what is immediately visible.
EPS
Earnings per share.
ESG
Environmental, social and governance.
Strategic report Governance Financial statements Shareholder and sustainability information
Glossary continued
204 Schroders Annual Report and Accounts 2025
Fiduciary management
A form of investing where pension scheme trustees delegate some
or allof the investment decisions to a third-party “fiduciary manager”.
Thisreduces the day-to-day governance burden on trustees.
Fiduciary management offerings will often include investment
advice and a portfolio which consists of a growth solution and
a liability-driven investment (LDI) solution.
Financed emissions
Absolute carbon emissions that banks and investors finance through
their loans and investments. Schroders’ in-scope financed emissions
include all mandatory asset classes required by the Science Based
Targets initiative (SBTi), which consist of our listed equity, corporate
bond, realestate investment trust and exchange-traded fund exposure.
Fundraising
This is a term used in Schroders Capital to denote new funds
invested into our products and contractual commitments from
clients to invest their capital in the future.
Greenhouse gas (GHG)
A gas that absorbs and emits radiation in the atmosphere,
contributing to the greenhouse effect. The seven gases covered by
the United Nations Framework Convention on Climate Change
(UNFCCC) are carbon dioxide (CO
2
), methane (CH
4
), nitrous oxide
(N
2
O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur
hexafluoride (SF
6
), and nitrogen trifluoride (NF
3
). These gases trap
heat close to the surface of the earth and are a key cause of
climatechange.
Greenhouse Gas Protocol
Comprehensive global standardised framework to measure and
manage GHG emissions from private and public sector operations,
value chains and mitigation actions. The GHG Protocol supplies the
world’s most widely used GHG accounting standards.
GRESB
GRESB is an internationally recognised benchmark assessing the
ESG performance of property.
GRC
Group Risk Committee.
Group Executive Committee (Group ExCo)
The Group ExCo comprises senior Schroders management, who
have primary responsibility for the delivery and execution of the
Group's strategy, and for operational performance. It is an advisory
committee to the Group Chief Executive.
Highly rated employees
Employees who have received an “exceptional” rating in their annual
performance review, being the highest rating on our four point scale.
ICAAP
Internal Capital Adequacy Assessment Process.
IFRS
International Financial Reporting Standards.
ILAAP
Internal Liquidity Adequacy Assessment Process.
In-scope assets
Current in-scope asset classes for SBTi include directly managed
listed equities, corporate bonds, real estate investment trusts and
exchange-traded funds.
Investee companies
The companies we invest in on behalf of our clients.
Investment returns
The increase in AUM attributable to investment performance,
market movements and foreign exchange.
ISO 14001 Environmental Management (EMS) certification
ISO 14001 is the international standard for EMS and the most widely
used EMS in the world.
Liability-driven investment (LDI)
A form of investing where the main goal is to gain and maintain
sufficient assets to meet known liabilities, both current and future.
This form of investment is most prominent for defined benefit
pension schemes.
Life Company
Schroder Pension Management Limited, a wholly owned
subsidiary, which provides investment products through a life
assurancewrapper.
Longevity
The indicative period, expressed in years, that a client invests their
assets with us. This is calculated annually as the average AUM
divided by gross outflows for the year. We typically present a three-
year rolling average in order to allow for short-term fluctuations.
MSCI Climate Value-at-Risk model
The Morgan Stanley Capital International Climate Value-at-Risk
(Climate VaR) model is designed to provide a forward-looking and
return-based valuation assessment to measure climate-related
risksand opportunities in an investment portfolio. The fully
quantitative model offers insights into how climate change could
affect company valuations.
MSCI ESG rating
The Morgan Stanley Capital International ESG rating is designed
to measure a company’s resilience to long-term, industry-material
ESGrisks.
Net new business (NNB)
New funds from clients less funds withdrawn by clients in
accordance with Schroders policy. This is also described as net
inflows (when positive) or net outflows (when negative).
Net operating income
A sub-total comprising net operating revenue, share of profit
of associates and joint ventures, net gains on financial instruments
and other income.
Net operating revenue
A sub-total consisting of revenue less cost of sales as defined
in note 2 tothe financial statements.
Net operating revenue margins
Net operating revenue excluding performance fees and net carried
interest divided by the relevant average AUM.
Network for Greening the Financial System (NGFS)
scenarios
NGFS scenarios are six different scenarios to assess transition and
physical risks. The scenarios share similar socio-economic
assumptions. They assume a continuation of current economic and
population trends, though accounting for a Covid-19 type shock.
Net zero
A state of balance between greenhouse gas emissions produced
and greenhouse gas emission removals. According to the SBTi,
achieving netzero refers to reducing emissions by a minimum of
90% by 2050 andneutralising any remaining emissions through
carbon removals.
Operating profit
Operating profit includes the profits from associates and joint
ventures, total operating expenses including acquisition costs and
related items, transformation costs, and portfolio restructuring
items. It includes gains and losses on seed investments and co-
investments but excludes interest and gains and losses on other
investments.
Strategic report Governance Financial statements Shareholder and sustainability information
Glossary continued
205 Schroders Annual Report and Accounts 2025
Partnership for Carbon Accounting Financials (PCAF)
The PCAF is an industry GHG accounting standard used by SBTi
which provides asset-class methodologies and data resources for
the quantification of financed emissions from loans and investments.
Performance-based revenues
Includes fee types such as performance fees and net carried interest
income. Performance fees are earned when contractually agreed
performance levels are exceeded.
Physical risks
Reflect the risks associated with long-term changes in the climate
and with more extreme weather events which may impact future
business activities. In particular, they include: the impacts on the
value of investments held on behalf of clients, caused by direct or
indirect physical climate changes and events; risk to our businesses
and property assets; and risk to our suppliers and other partners
caused by climate events.
Pillars 1, 2 and 3
Pillar 1 sets rule-based minimum capital standards. Pillar 2
establishes the approach to supervisory review and the setting
of individual capital requirements, taking into consideration the firm’s
own assessment of how much capital is required to support the
business. Pillar 3 sets disclosure requirements, which aim to
promote market discipline byenabling market participants to
access information relating to regulatory capital and risk exposures.
See www.schroders.com/pillar3.
Platforms
Platforms in the UK savings market offer a range of investment
products, such as unit trusts, individual saving accounts (ISAs), unit-
linked life and pension bonds and self-invested personal pensions
(SIPPs) to facilitate investment in many funds from different
managers through one portal.
Portfolio temperature score
The method of interpreting an asset’s or portfolio’s exposure to
abstract climate risk, and communicating it as an intuitive implied
temperature score, measured in degrees Celsius. The temperature
score is calculated in accordance with the CDP-WWF temperature
rating methodology based on the carbon emissions reduction
targets set by the companies in our portfolios, and is intended to
serve as an indication of our portfolio’s alignment to different levels
of global warming.
Principal Shareholder Group
The Principal Shareholder Group is comprised of a number of private
trustee companies (and investment companies controlled by those
trustee companies), a number of private investment companies, a
number of Schroder family individuals, and a Schroder family charity,
which, directly or indirectly, are shareholders of the Company. The
Principal Shareholder Group currently holds 713,021,408 ordinary
shares (44.27%) of the issued ordinary shares excluding treasury
shares) in the Company.
Renewable energy
Energy collected from resources that are naturally replenished, such
as sunlight, wind, water and geothermal heat.
Return on tangible equity
Profit after tax attributable to equity holders of Schroders plc,
excluding amortisation and impairment on goodwill and acquired
intangible assets, divided by average tangible equity. Tangible equity
is defined as equity attributable to equity holders of Schroders plc,
excluding goodwill and acquired intangible assets.
Science-based target
A science-based target provides a clearly defined pathway for
companies to reduce their greenhouse gas emissions. The target is
considered “science-based” if it is in line with what the latest climate
science deems necessary to meet the goals of the Paris Agreement –
limiting global warming to well below 2°C above pre-industrial levels
and pursuing efforts to limit warming to 1.5°C.
Science Based Targets initiative (SBTi)
The Science Based Targets initiative defines and promotes best
practice in science-based target setting. Offering a range of target-
setting resources and guidance, the SBTi independently assesses
and approves companies’ targets in line with this criteria.
Scope 1 / Scope 2 / Scope 3
See GHG. Scope 1 is direct greenhouse gas emissions from sources
owned or controlled by the company, such as emissions from gas, oil
and company vehicles. Scope 2 is indirect greenhouse gas emissions
from sources owned or controlled by the company, such as
emissions from consumption of purchased electricity, heat or steam.
Scope 3 isindirect greenhouse gas emissions from sources not
owned or controlled by the company, such as emissions from
business travel orinvestments.
Seed investments and co-investments
Seed investments comprises initial investment put into a fund or
strategy to allow it to develop a performance track record before it is
marketed topotential clients. Co-investments comprise investments
made alongside our clients in private assets.
Senior management
Senior management includes members of the Group ExCo, the
direct reports of the Group ExCo (ExCo-1) and the direct reports one
level below that (ExCo-2), in each case excluding administrative and
other ancillary roles.
Sustainability-focused mandates
These are portfolios which are categorised as either Sustainable
Driven, Sustainable Thematic or Impact using our Sustainability and
Impact Product framework.
Sustainability-related engagement
Sustainability-related engagement is the process by which we gain
insights into our investee companies’ sustainability risks and
opportunities and how they are managed. We seek to influence our
investee companies by engaging with management teams to
encourage and support them in areas where improvement may be
required to deliver long-term value.
SustainEx™
Schroders’ proprietary tool used to estimate the net social and
environmental “cost” or “benefit” of an investment portfolio, having
regard to certain sustainability measures, in comparison to a
product’s benchmark where relevant. The aim of the model is to
enable our investors to assess the investments they may make,
having regard to such measures, and the risks those issuers
potentially face if the social and environmental “costs” they create
were to be reflected in their own financial costs.
tCO
2
e
Tonnes of carbon dioxide (CO
2
) equivalent. A unit of measurement
that isused to standardise the climate effects of various greenhouse
gases on the basis of their global warming potential.
Strategic report Governance Financial statements Shareholder and sustainability information
Glossary continued
206 Schroders Annual Report and Accounts 2025
ThemEx
TM
A proprietary model which analyses the thematic alignment of
individual companies and portfolios to the UN Sustainable
Development Goals (SDGs). The alignment score is derived from
proprietary qualitative analysis across themes, sectors, regions and
stocks. The mapping of business activities to SDGs utilises third-party
categorisation of companies’ divisional revenues. The ThemEx
TM
alignment score for a given company is limited by the granularity of
the underlying data and that company’s market capitalisation, sector
or region.
Total capital requirement
The requirement to hold the sum of Pillar 1 and Pillar 2A capital
requirements. Pillar 2A capital requirements are supplementary
requirements for those risk categories not captured by Pillar 1,
depending on specific circumstances of a company, as set out
by thePrudential Regulation Authority.
Total dividend per share
Unless otherwise stated, this is the total dividend in respect of
the year, comprising the interim dividend and the proposed final
dividend. This differs from the IFRS dividend, which comprises the
prior-year final and current-year interim dividends declared and paid
during the year.
Transition risks
Reflect the risks stemming from changes in the economy that will be
required to limit long-run temperature rises, including higher or
lower rates of demand growth, costs or risk profiles, to companies,
sectors or asset classes. These may include new or enhanced
corporate climate change laws and regulations, changes in investor
demand for climate-focused products, and more volatility in financial
markets as asset prices adjust to reflect the increasing regulation of
carbon emissions.
Morgan Stanley Capital International (MSCI) data
Certain information contained herein (the “Information”) is
sourced from/copyright of MSCI Inc., MSCI ESG Research LLC, or
their affiliates (“MSCI”), or information providers (together the
“MSCI Parties”) and may have been used to calculate scores,
signals or other indicators. The Information is for internal use
only and may not be reproduced or disseminated in whole or
part without prior written permission. The Information may not
be used for, nor does it constitute, an offer to buy or sell, or a
promotion or recommendation of, any security, financial
instrument or product, trading strategy, or index, nor should it
be taken as an indication or guarantee of any future
performance. Some funds may be based on or linked to MSCI
indexes, and MSCI may be compensated based on the fund’s
assets under management or other measures. MSCI has
established an information barrier between index research and
certain Information. None of the Information in and of itself can
be used to determine which securities to buy or sell or when to
buy or sell them. The Information is provided “as is” and the
user assumes the entire risk of any use it may make or permit to
be made of the Information. No MSCI Party warrants or
guarantees the originality, accuracy and/or completeness of the
Information and each expressly disclaims all express or implied
warranties. No MSCI Party shall have any liability for any errors
or omissions in connection with any Information herein, or any
liability for any direct, indirect, special, punitive, consequential or
any other damages (including lost profits) even if notified of the
possibility of such damages.
Strategic report Governance Financial statements Shareholder and sustainability information
Glossary continued
207 Schroders Annual Report and Accounts 2025
The paper used in this report is certified in accordance with the FSC® (Forest Stewardship Council®) and is recyclable and acid-free. It is
made from 100% recycled post-consumer waste to FSC® standards and is manufactured without chlorine bleaching (ECF). Pureprint Ltd is
FSC-certified and ISO-14001-certified, showing that it is committed to all-round excellence, and improving environmental performance is an
important part of this strategy. Pureprint Ltd aims to reduce at source the effect its operations have on the environment and is committed to
continual improvement, prevention of pollution and compliance with any legislation or industry standards.
Pureprint Ltd is a Carbon / Neutral® Printing Company.
Report produced by Black Sun Global, part of the Positive Change Group.
208 Schroders Annual Report and Accounts 2025