Schroders PLC is an international asset management group. The group manages funds across all asset categories, including equities, bonds, alternative investments and Venture Capital. Among its clients, they are insurance companies, public authorities, pension funds and unit trust holders.

First quarter sales results showed assets under management increased by 7% to £200 billion in line with company’s guidance. This division recorded net inflows of £1.6 billion against £1.3 billion company’s consensus while Private Banking activity the smallest division recorded an outflow of £0.1 billion.
Since January the share has underperformed against FSTE 100 index about 6%, and since March it is underperforming also the Bloomberg Europe financial index.

The share was hardly penalized in the past weeks because of Europe situation. During last month the share fell nearly 20%, and now is testing an important support level in weekly data. This support of GBp 1174 was tested also in the end of 2011, playing as stepping stone.

For this reason we advise to take a long position on the stock in order to aim a first target around GBp 1400, and then the bullish trend could continue towards GBp 1500. We suggest a stop loss in the area of GBp 1130.