Money managers under the microscope
Schroders today reported exceptional losses of 167 million pounds — this was largely due to 147 million of writedowns on its own investments in hedge funds, private equity, fixed income and seed capital.
Analysts at UBS noted that these four areas had total investments of 585 million pounds at September 30, meaning the group had taken a 25 percent writedown.
Chief Executive Michael Dobson today confirmed that the writedowns included the group’s investment in private equity firm SVG.
Nevertheless, he insisted Schroders would keep its stake in SVG, and said it had in fact subscribed to SVG’s recent rights issue.