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Nick Train sinks £256m into Schroders as he pushes US invasion

Nick Train sinks £256m into Schroders as he pushes US invasion

In the latest of a series of punchy recent moves, Citywire AA-rated Nick Train has put around £256 million into Schroders, upping his stake by more than a third.

The purchase installs Train as the second largest holder of the stock after the Schroder family, with a 10% stake in the business worth £695 million at a price of £30.75, off from 2018’s record high of £37.73.

At the time of publication, a spokesperson for Lindsell Train had not returned a request for comment.

In a recent interview with the Financal TimesTrain said the company had built itself a solid position in asset management on this side of the Atlantic, but would need to invest heavily in its US operations if it wanted to compete on a global scale.

'Most of the trillion-dollar asset managers are in the US because of the scale of the domestic savings pool — Schroders’ big disadvantage is that it... is not well represented there,' he said.

'How are they going to get to a trillion, or even three trillion, dollars? It has probably got something to do with the US.'

Schroders is currently the fourth largest UK asset manager with total client assets of £410 billion.

Globally, it is only the 33rd largest, however, according to the asset managers league table compiled by data provider IPE, with assets a small fraction of the multiple trillions of dollars run by the largest international houses.

The company has recently partnered with Lloyds on a joint wealth management service, having been awarded £80 billion of the £109 billion in pension assets that the bank pulled from former partner Standard Life Aberdeen in early 2018.

Train (pictured) has made a series of hefty purchases this year, having spent almost £500 million this year to near-double his overall investment in Hargreaves Lansdown to nearly £1 billion, becoming second largest holder behind co-founder Peter Hargreaves.

While much smaller in financial terms, his March decision to take advantage of a dip in the share price of Celtic to up his stake to £28.1 million offers even greater stock conviction, given the Scottish Premiership team’s market cap of just £153 million.

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Nick Train
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