The history of Schroders as we know it today began in 1804 when Johann Heinrich Schröder becomes a partner in J. F. Schröder & Co. The London-based firm was founded by his brother, Johann Friedrich Schröder, in 1800. In the early days, the company focused on the finance of trade between America and Europe but soon developed a truly global client base.
The firm of Cazenove was established when Phillip Cazenove and his brother-in-law John Menet become partners.
Schroders took a big step forward when it began issuing bonds for overseas borrowers on the London market. The first one was issued in 1853 to finance the Matanzas and Sabanilla Railway in Cuba. Schroders established itself as a leading firm in railway finance over the next few years, raising funds for railway and infrastructure development across the US, Europe and Asia.
Phillip Cazenove branched out on his own and formed a new partnership with his son and nephew. The new company was involved in new issues such as His Highness the Nizam's State Railway Company.
Schroders introduced the Japanese government's first foreign loan to the London market to finance construction of Japan's first railway, between Tokyo and Yokohama.
Schroders had had strong connections with Latin America since the 18th century through trade in commodites. In 1871 it was appointed as the central British and European agent for the sale of Peruvian guano. Schroders went on to support infrastructure and state finances throught the region.
As business in the City of London tilted from trade towards purely financial activities, bond issuing began to overtake commercial credit acceptances as Schroders' foremost source of revenue. Following Baron Bruno Schröder's arrival at the firm in 1893, its capital began to be deployed more dynamically, focusing on higher yielding securities and loans.
By the start of the 20th century, Schroders was issuing bonds for clients in North and South America, South Africa, Russia, China, Japan and Europe. Schroders had 140 clients in New York at the turn of the century, reflecting the rapid expansion of the American economy.
Following the First World War, New York emerged as a financial centre to rival London. Schroders established the J Henry Schroder Banking Corporation or Schrobanco as it came to be known, in New York.
Schroders formed its first investment trust, the Continental and Industrial Trust Limited. Client funds were initially invested in German industrial companies but by the end of the decade the portfolio had been rebalanced towards American and British equities. This marked the beginning of client investment management at Schroders.
Schroders set up its first investment department. In the same year, Cazenove also began to manage funds for clients and investment trusts.
Schroders welcomed its first charity client in the UK. They are still a client today.
Cazenove began investing on behalf of pension funds and private individuals.
Schroders opened an office in Rio de Janeiro, reflecting its long-term interests in South America.
Schroders won its first pension fund mandate in the UK.
Schroders became a quoted public company, listed on the London Stock Exchange. The London and New York firms were combined for the first time under a new holding company called Schroders Limited.
Over the course of the 1960s, Schroders acquired a presence in each of the major financial markets. Subsidiary and associated companies are established in Hong Kong, Japan, Singapore, Australia, Brazil, Switzerland and other Continental European countries.
The international side of the Cazenove business grew rapidly in the 60s and 70s, and the first overseas offices were opened.
In Hong Kong, Schroders & Chartered was formed as a joint venture with Chartered Bank.
Schroders took its first steps into the world of alternative products, as it launched its first property fund.
Cazenove's fund management business was separately incorporated.
The existing New York operation was formed by combining the two predecessor firms - Schroder Capital Management International and Schroder Capital Management, the first of which had been registered as an Investment Advisor with the SEC since 1980.
Following the sale of the investment banking arm to Citigroup, Schroders became solely focussed on asset and wealth management for the first time.
Cazenove became incorporated, raising equity and debt finance from some of the leading institutional investors in the UK.
Schroders published its first responsible investment policy. We have incorporated environmental, social and governance considerations into our fundamental research process for almost 20 years, and are committed to being active owners of the companies in which we invest.
Cazenove launched the first ever fund of hedge funds for charities. It also opened offices in Frankfurt, Paris and Beijing and begins the restructuring of its fund management business.
Schroders celebrated its 200th anniversary and raised over £800,000 for cancer and children's charities.
Schroders launched the first in the Maximiser range of products. These funds use a covered call overlay strategy on top of an actively managed portfolio of stocks with the aim of providing investors with a higher level of yield in a low growth environment
As Schroders moved forwards with developing its investment management business, it began to focus on building out its distribution capabilities. This resulted in a number of new partnerships, joint ventures and acquisitions, including a joint venture with Bank of Communications Co. Ltd. in China (2005), followed by a partnership with Axis Asset Management in India (2012) and a small stake in UK online investment manager Nutmeg Saving and Investment Ltd. (2014)
Cazenove demerged from the Cazenove Group to create an independent wealth management business. This followed the joint venture between Cazenove and JP Morgan on their UK investment banking activities.
Schroders launched the first of its diversified growth strategies, signalling a firm commitment to providing multi-asset solutions to clients. Multi-asset investments has continued to be an important asset class and key growth area for the business.
Schroders began to develop liability driven investment solutions to help match investments with liabilities for institutional clients.
Schroders launched its GAIA platform, designed to provide investors with easier access to hedge fund expertise within a UCITS compliant framework
Cazenove Capital acquired the private wealth management company Thornhill Holdings Limited.
In line with its long term strategy of establishing offices in key countries around the world, Schroders opened an office in Chile, with the primary focus of providing service to the institutional clients in the market.
Schroders acquired Cazenove Capital Holdings, a leading independent wealth management and investment funds business.
As fixed income became an increasingly important part of the business, following the global financial crisis, Schroders made some targeted acquisitions in order to further enhance the existing fixed income team. This started with STW Fixed Income Management LLC in 2013 and was followed by the acquisition of Brookfield Investment Management Inc.’s asset-backed and mortgage-backed securities team in 2016.
Schroders' wealth management division began trading under the Cazenove Capital Management name.
Schroders launched a new online behavioural finance tool called incomeIQ to help investors determine their unique behavioural biases when making investment decisions.
Schroders entered into market for SME direct lending through a strategic relationship with NEOS Business Finance in the Netherlands.
As part of its continued efforts to enhance its distribution capabilities, Schroders entered into a strategic relationship with leading US based asset management company, Hartford Funds. As part of the relationship, Hartford Funds adopted 10 of Schroders' US mutual funds on to their platform.
Schroders made a strategic investment in a UK technology-led adviser support business called Benchmark Capital.
Cazenove Capital acquired the wealth management department of C. Hoare & Co. as part of its strategy for further growth within the business.
Schroders moved its North American headquarters to a new modern working environment in midtown Manhattan. This move to a more prominent location reflected Schroders’ continued focus on long-term growth in the US and Canadian markets, and increased brand visibility and awareness globally.