Analysts at the US investment bank wrote in an equity research note on July 21 that although it views Schroders as “one of the best-positioned asset managers globally”, it doubted its ability to overcome the challenging environment confronting the fund management industry.
It also blamed the result of the UK referendum on its membership of the European Union for reducing growth expectations and further hurting fixed income yields.
It therefore took the decision to remove Schroders from its Pan-Europe Buy List.
Schroders’ assets under management as of March 31 stood at £324.9 billion.
Goldman Sachs said there were three main issues facing the fund manager were anaemic economic growth, difficulties structuring “compelling” products and tougher climate to grow assets under management.
Goldman Sachs wrote: “These issues appear to have become more acute in recent weeks. Growth expectations have been reduced in the aftermath of the UK referendum, while yields on many fixed instruments have declined further.”
The research note comes ahead of Schroders publishing its first-half 2016 results on July 28.
Schroders declined to comment.
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