Schroders to Sell China Mutual Funds Business to Nuveen in £10bn Deal

Schroders is preparing to exit its China mutual funds business, just three years after the London-listed group entered the market. The decision comes as the company is set to be taken over by Nuveen, a US-headquartered asset manager, in a £10bn deal.

The sale of the China operation forms part of the broader acquisition. Schroders had established the mutual funds business in China in 2023. The unit's performance has been affected by difficult market conditions in the country. Nuveen will gain control of Schroders' operations once the takeover is completed.

The deal requires regulatory approvals in multiple jurisdictions. Completion is expected to take several months.

China's asset management industry has faced headwinds from slowing economic growth and regulatory changes. Foreign firms have encountered varying degrees of success in the market since it was opened to greater outside participation. Schroders' exit follows similar moves by some other international groups.

The £10bn acquisition values Schroders at a premium to its recent share price. Nuveen plans to integrate the acquired businesses while deciding on the future of the China mutual funds unit. Industry participants will monitor how the combined entity approaches the Chinese market.