JV that had targeted the mass-affluent client section, the Financial Times reported yesterday. The report said the unit has missed growth targets. Lloyds will take control of Schroders’ 49.9 per cent stake in SPW, giving the UK-listed bank complete control, the report said, citing unnamed sources.
It is possible that Lloyds wants to pursue the mass-affluent market more directly itself, this news service understands.
WealthBriefing has contacted both organisations for comment; it had not received a comment at the time of going to press. The FT said neither firm commented when contacted on the matter.
Shares in Lloyds were up about 0.8 per cent late yesterday afternoon; shares in Schroders were down by 0.6 per cent. Lloyds is scheduled to publish third-quarter 2025 financial results on 23 October; Schroders publishes its figures on the same date.
Schroders Personal Wealth was formed in 2019. The joint venture has increased in size to now serving around 60,000 clients and managing £17 billion ($19.5 billion) from £13 billion in 2019. In terms of advised flow, it is number one in the market, this publication understands.
The UK wealth management market faces challenges from a sluggish economic growth, cost pressures on labour, technology and compliance, and rising tax. SPW was focused on the “mass-affluent” area, one that has been a difficult area for firms in a number of regions to master, as discussed here.
The story came out a day after JP Morgan announced it was rebranding the Nutmeg “robo-advisor” business – more of a retail/mass-affluent business model that in some ways competes with firms such as the wealth platform Hargreaves Lansdown.
Earlier this year, Schroders appointed Oliver Gregson (pictured) as its new CEO of wealth management, starting in June. He replaced Mary-Anne Daly, who stepped back from her full-time responsibilities as CEO.
Oliver Gregson
Lloyds has arguably retreated to some extent from forms of wealth management. It sold its international private banking business in 2013 to Geneva-based Union Bancaire Privée. As for Schroders, it added to its private banking and investment capabilities when it purchased Cazenove Capital in 2013.
WealthBriefing interviewed Schroders about its part of its wealth management business here; and interviewed Lloyds on part of its approach here.