Humans 1: Robots 0, as death of City trader “exaggerated” says Schroders boss
HUMAN traders are beating the robots, at least at grand old City institution Schroders, a feature of the Square Mile since 1804.
That’s the view of chief executive Peter Harrison, and he has the figures to prove it.
The results for 2020 show profits slightly down at £702 million, but more importantly funds under management jumping 15% to a record high of £575 billion.
That was largely on the back of strong investment performance that sees 81% of funds beating their benchmark over five years.
Harrison says Schroders have a team of data analysts who give what they find to the traders.
“We have humans interpreting the data rather than machines, that is where it makes sense,” he told the Standard. The death of active management, the City trader, has been exaggerated, he notes.
Schroders normally has 2,500 staff in stylish offices just off London Wall. Before the latest lockdown, around 1000 of them were back in most days. “People were quick to come back. Post vaccination I think most people will be in every week; there are massive benefits from people coming together.”
Harrison welcomed moves announced in the Budget yesterday to encourage pension funds to invest in a wider range of assets, including green initiatives and infrastructure projects.
“At the moment you have 30-year savings deals, pensions, that have to go into daily priced vehicle, shares. We have been working with the Treasury for a while on this and it is exactly what we wanted.”
“People don’t need to own more oil shares,” he added. Schroders is committed to net zero by 2050.
Schroders shares slipped 82p to 3510p today. They have boomed from 2000p last March.
