Schroders, the British asset management company, is seeking buyers for its Indonesian unit, which holds approximately $4 billion in assets. Sources familiar with the matter say the move comes as Schroders continues to streamline its operations and focus on more strategic markets. Discussions are still in the early stages and there is no certainty that a transaction will take place.
The Indonesian unit of Schroders has been an established player in the region, attracting significant investments over the years. However, the rapidly changing economic landscape and the increasing competitive pressures in the global asset management industry are likely driving the decision to seek buyers for this unit. Potential buyers could include other financial institutions or private equity firms looking to expand in Southeast Asia.
The interest in Schroders’ Indonesian unit has reportedly attracted attention from several financial institutions. Among them are the asset management divisions of HSBC and Allianz, as well as Bank Negara Indonesia.
Schroders trims Indonesian assets
These companies have not confirmed the matter. A Schroders Indonesia spokesperson was quoted as saying, “We are constantly in discussions with potential partners to ensure we continue to deliver exceptional service and value to our clients.” The company has engaged advisers, including UBS, to facilitate the potential transaction. However, the company has refrained from commenting on specific market rumors.
The decision to divest comes after three decades of Schroders’ efforts to expand in Indonesia. With the firm’s shares under pressure this year, investors are anticipated to advocate for a change in strategy. Schroders Indonesia represents 1.6% of the company’s total assets in the Asia-Pacific, its second-largest market by assets under management.
The potential divestment marks a significant strategic shift for Schroders as it evaluates the performance and alignment of its global operations under new leadership. The move is part of new CEO Richard Oldfield’s strategy to trim the investment manager’s underperforming units in an attempt to reboot performance after a string of disappointing earnings.
