Those investors looking to buy Schroders shares may be deterred by a downgrade to the stock from UBS. According to the bank, Schroders expectations are ‘too high’ and it has downgrade the asset manager to a sell.
Analysts from UBS, explained that expectations on flows and capital returns are above its cautious belief on both areas.
While flows appear to be generally improving into Europe, UBS doesn’t believe that Schroders will be a direct beneficiary of this.
Schroders shares have a dividend yield of 2.5%, which is far lower than the industry average of 4.7%.