Asset manager Schroders to expand in Hong Kong after merger with Nuveen, CEO says

UK-based asset manager Schroders plans to expand its presence in Hong Kong following its merger with US asset manager Nuveen, according to the firm's global CEO Richard Oldfield. The acquisition, completed on Thursday, creates a financial giant with approximately $2.6 trillion in assets under management. Schroders will maintain its independent operations for 12 to 18 months post-merger, with Oldfield leading the team.

The new combined group would become Europe's second-largest asset manager, trailing only Paris-based Amundi, which manages $2.7 trillion in assets. Hong Kong remains a critical hub for Schroders, managing $320 billion in assets in Asia, accounting for about 12 percent of the total. Oldfield expressed excitement about the Hong Kong government's efforts to strengthen integration between the city and mainland China, particularly through the Wealth Management Connect scheme launched in 2021.

The scheme enables investors in the Greater Bay Area to access wealth-management products across borders. While there are no immediate plans to relocate to larger offices, Schroders expects to increase its workforce in Hong Kong in the coming months. The Asia-Pacific region has been Schroders' fastest-growing market globally over the past year, driven by international investors seeking diversification and growing local client investments as the middle class expands.

Despite Beijing's tightening of control on cross-border investments and a new 20 percent tax levy on overseas investments, Oldfield remains optimistic about Hong Kong's long-term growth and the demand for retirement savings solutions from an aging population.