British asset manager Schroders announced plans to increase its investment and staffing levels in Hong Kong following its recent acquisition by U.S. firm Nuveen. Schroders’ global CEO, Richard Oldfield, outlined the expansion during an online interview, emphasizing Hong Kong’s strategic importance as a gateway to mainland China’s financial markets.
The acquisition, completed in late October, created a combined entity managing approximately US$2.6 trillion in assets, making it Europe’s second-largest asset manager behind Amundi of France. Although Schroders will continue to operate independently for 12 to 18 months with current leadership intact, closer collaboration is expected between the sales teams of both organizations.
Oldfield highlighted Hong Kong’s pivotal role in connecting international investors with mainland China under initiatives such as the Wealth Management Connect scheme launched in 2021. This program facilitates cross-border investment by allowing residents of the Greater Bay Area to purchase wealth-management products across jurisdictions. He also pointed to recent policy measures, including the Chinese government’s first five-year plan for enhanced regional integration, as key drivers for increased Schroders presence in the city.
While immediate plans for office expansion have not been announced, Schroders has already grown its headcount in Hong Kong over the past nine months and intends to continue hiring. Oldfield expressed optimism about the city’s appeal as a hub for private markets professionals, noting efforts by the Hong Kong government to strengthen its position as a regional financial center.
The combined Schroders-Nuveen group manages around US$320 billion in assets across Asia, representing approximately 12 percent of its total managed wealth. Oldfield described Asia as the fastest-growing market segment for the firm and central to its future growth strategy, particularly in wealth management, retirement planning, and private markets—areas expected to benefit from the region’s expanding middle class and demographic trends such as population aging.
Despite recent regulatory tightening in mainland China, including new controls on cross-border investments and a 20 percent tax on overseas investment gains introduced in mid-2023, Oldfield remains confident in the long-term growth prospects for both Hong Kong and mainland Chinese markets. Schroders maintains an onshore presence in mainland China through a joint venture with Bank of Communications, while its Hong Kong operations primarily serve offshore clients.
The integration of Schroders and Nuveen aims to leverage their combined capabilities to better serve client needs and avoid overlapping sales efforts in key markets such as Hong Kong. This consolidation is expected to enhance their competitive positioning in Asia and globally as investor demand continues to evolve.