Schroders plans to increase its investment and headcount in Hong Kong following its acquisition by US-based Nuveen, according to global CEO Richard Oldfield. The company will deploy more capital in the region, with Oldfield citing Hong Kong’s importance as a hub for mainland China.
Hong Kong is a key location for Schroders, with the company overseeing approximately $320bn in assets across Asia, representing around 12% of its global portfolio. The city serves as a primary regional base for the company.
Oldfield stated that Hong Kong is a critical interface for mainland China through schemes like the Wealth Management Connect initiative, which allows Greater Bay Area residents to purchase wealth management products across regional boundaries. This initiative was established in 2021.
The Hong Kong administration’s five-year blueprint, unveiled last month, aims to increase economic alignment with mainland China, supporting Schroders’ decision to invest further in the region. Oldfield expressed excitement about the government’s efforts to make Hong Kong a more attractive location for private markets professionals.
Schroders will operate autonomously for 12 to 18 months under Oldfield’s leadership, with existing portfolio strategies remaining unchanged. They will increase their headcount in Hong Kong, with Oldfield noting that the city has already seen an increase in staff over the last nine months.
Asia is a key region for Schroders, with the company expecting its assets in the region to grow at a faster rate. Oldfield stated that Asia is central to Schroders’ future growth. The combination of Schroders and Nuveen will provide a broader set of capabilities to serve clients in the region, particularly in wealth, retirement, and private markets.
Schroders conducts its mainland Chinese operations through a partnership with Bank of Communications, while running offshore client services from Hong Kong.