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Nick Train ramps up Schroders stake as he pushes US invasion

Nick Train ramps up Schroders stake as he pushes US invasion

Citywire AA-rated fund manager Nick Train has ramped up his stake in Schroders (SDR), taking his holding to 10% of the fund group's shares.

Steady buying from the fund manager took his stake to the 10% mark last week. His holding is worth around £703 million at today's £31.11 share price, down from 2018’s record high of £37.73.

Schroders is a major stake in the manager's £6.2 billion Lindsell Train UK Equity fund and £1.6 billion Finsbury Growth & Income (FGT) investment trust, representing 6.6% and 7.1% of the respective portfolios at the end of March.

Train is now the second largest holder of the stock after the Schroder family and the manager has doubled his stake in the space of just over two years.

In a recent interview with the Financial TimesTrain (pictured) said Schroders 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 the fourth largest UK asset anager 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's ramping up of his Schroders stake follows a similar targeting of shares in online stockbroker Hargreaves Lansdown (HRGV).

The manager's fund group Lindsell Train now owns more than 11% of the Bristol-based broker's shares, which are held in the Lindsell Train UK Equity and Finsbury Growth & Income trust as well as the Lindsell Train Global Equity fund Train runs with Michael Lindsell and James Bullock.

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