Schroders Personal Wealth is looking to launch its own funds this year to use on an exclusive basis with its clients.
Financial planning business Schroders Personal Wealth went live on 1 June and is a strategic partnership between Schroders and Lloyds Banking Group, combining Schroders’ investment and wealth management expertise and technology capabilities with Lloyds’
client base, multi-channel distribution and digital capabilities.
Chief executive of Schroders Personal Wealth James Rainbow said the firm is looking to transfer a range of multi-asset manager of manager funds currently run by Lloyds subsidiary Scottish Widows to Schroders Personal Wealth “late in the year”, subject to regulatory approval.
“The new business does two things. It provides clients with advice for the future and arranges solutions to match their needs. Having our own funds will allow greater control over the investment proposition,” Rainbow said.
The summer will now allow everyone to get used to the new systems and bed in. Then in the autumn we will promote the business externally for the first time – Schroders’ James Rainbow
“The funds are run on an open architecture basis and are manager of managers strategies. They won’t be sold broadly to the market but will be used as part of the Schroders Personal Wealth proposition.
“They will be a foundation stone of the business and will be overseen by [chief investment officer] Marcus Brookes.”
Currently, the Scottish Widows funds are being used by the wider Schroders business as investment solutions, Rainbow added.
Last month, Schroders announced 500 Lloyds and Schroders employees had transferred over to the new business. Rainbow added Schroders PersonalWealth now has 32,000 clients, £13bn in assets under administration and 26 people in its investment department, with 38 roles currently being advertised.
“We’ve been going for it,” Rainbow said. “In seven months we have created a new wealth planning and investment business from the ground up. We lifted the business from Lloyds and incorporated it into a new company.
“The summer will now allow everyone to get used to the new systems and bed in. Then in the autumn we will promote the business externally for the first time. The main focus for this year is making sure the business is operationally stable with solid foundations. Then we will gradually start thinking about new clients.”