HONG KONG, May 15 - Schroders is set to withdraw its wholly-owned China fund management business and has struck a deal for U.S. asset manager Neuberger Berman to take over its fund products, three people with direct knowledge of the negotiations told Reuters.
The transaction involves the transfer of fund products from Shanghai-headquartered Schroders Fund Management (China), which was launched in 2023. The sources said Neubergers wholly-owned China unit will assume those products, though they did not disclose any financial terms of the arrangement.
Those familiar with the situation described the move as part of Schroders broader effort to streamline operations and step back from smaller businesses. The timing follows a significant corporate development: about a month earlier, Schroders shareholders approved a 9.9 billion pound sale of one of Londons historic fund houses to U.S. rival Nuveen, creating what the announcement characterized as one of the worlds largest active fund managers.
All three sources who confirmed the Neuberger deal asked not to be named because they were not authorised to speak to the media. Schroders and Neuberger Berman both declined to comment when approached, and the people providing the account did not offer additional details on the structure or valuation of the transfer.
Financial specifics for the takeover were not immediately known, and no formal public disclosures from either firm were cited in the information provided by the sources. The reporting also noted the currency conversion rate used in the earlier sale announcement: $1 = 0.7492 pounds.
The described sequence of events - the shareholder-approved disposal to Nuveen followed by the proposed transfer of China products to Neubergers China unit - illustrates a period of portfolio reshaping for the British manager. Beyond the immediate transfer of products, the sources did not indicate further corporate actions or changes to Schroders broader strategy.
Note on sourcing: The details above derive from three individuals with knowledge of the matter who declined to be named and from statements that Schroders and Neuberger Berman declined to provide.