Schroders is pursuing platform deals to boost its European exchange-traded fund (ETF) business, as the asset manager seeks to grow its presence in the region's competitive market. The London-based firm is targeting partnerships with distribution platforms to expand its ETF range, according to people familiar with the matter.
Strategic Push for European ETFs
The move comes as Schroders looks to capitalize on the growing demand for passive investment products in Europe. The asset manager currently offers a limited number of ETFs compared to larger rivals, but aims to increase its market share through strategic alliances.
Schroders already has a partnership with BlackRock for its ETF platform, but is now seeking additional deals with other platforms to distribute its funds. The company is particularly focused on markets like Germany, France, and Italy, where ETF adoption is rising.
Competitive Landscape
The European ETF market is dominated by a few large players, including BlackRock's iShares, Vanguard, and State Street. Schroders faces stiff competition but hopes its brand recognition and investment expertise will help it gain traction.
The asset manager has been expanding its ETF lineup in recent years, adding products that track various indices and themes. It also offers actively managed ETFs, which differentiate it from many competitors.
- Schroders' ETF assets under management have grown steadily, but remain small relative to its overall business.
- The company sees platform deals as a cost-effective way to reach a broader investor base.
- Regulatory changes in Europe, such as the introduction of the UCITS framework, have made it easier for ETF issuers to distribute across borders.
Future Outlook
Schroders is likely to continue pursuing partnerships and may consider acquisitions to accelerate its ETF growth. The firm's management has identified ETFs as a key growth area, alongside private markets and wealth management.
Industry observers note that Schroders' move reflects a broader trend among traditional asset managers to embrace passive investing. While the ETF market is highly competitive, there is still room for new entrants that can offer unique products or strong distribution.
Schroders declined to comment on specific platform negotiations, but a spokesperson said the company is committed to expanding its ETF business in Europe and other regions.
