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Schroders Considers Sale, Spin-Off or Partnership for Benchmark Business

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  Published in Business and Finance on Thursday, December 4th 2025 at 12:46 GMT by Reuters

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Schroders Explores Strategic Options for Its Benchmark Business

In a move that could reshape the way investment managers measure performance in the UK, Schroders – one of the country’s largest asset‑management houses – is reportedly weighing a range of options for its benchmark arm. Sources close to the deal say the company is open to a sale, a spin‑off or a strategic partnership, with a view to refocusing on its core wealth‑management and investment‑management activities.

The Benchmark Business in Context

Schroders’ benchmark division, operating under the name Schroders Benchmark Management (SBM), was founded in 2014 to provide a comprehensive suite of benchmark and performance‑measurement solutions to institutional investors, hedge funds and asset‑management firms. Headquartered in London, the unit also has a presence in Hong Kong, Singapore, and New York, and employs roughly 80 people across the globe.

The unit’s services range from index construction and maintenance to customised benchmarks that help clients assess the performance of portfolios relative to market peers. While the business has a niche customer base, it competes in a crowded field dominated by large global index providers such as MSCI, S&P Global and Bloomberg. The benchmark market is also under increasing pressure from regulatory changes – notably MiFID II in the EU and the UK’s own Benchmark Regulation – that demand greater transparency and governance in the creation and management of indices.

Why the Strategic Review?

Sources say that the benchmark unit’s revenues have been under pressure in recent years. With the surge of passive investment vehicles, many traditional index providers have struggled to maintain margin on passive fees, and the UK market is no exception. In addition, Schroders’ own strategic priorities have evolved in the wake of its 2022 restructuring, which saw the company double‑down on wealth‑management solutions for high‑net‑worth households.

“Schroders wants to double‑down on what it does best,” one insider told Money UK. “The benchmark business is great, but it’s not where the bulk of the growth lies. We’re exploring ways to unlock value, whether that means selling the unit or giving it more autonomy.”

The firm is also considering the impact of the “Benchmark Regulation”, which requires index providers to disclose the governance process and the composition of the committee that oversees the benchmark. Some benchmark providers have already had to overhaul their processes to meet these standards, and smaller players like SBM face higher compliance costs relative to their size.

Potential Options on the Table

1. Full Sale
The most straightforward route is a sale to an external buyer. Several large index providers – MSCI, S&P Global and Bloomberg – have been identified as potential suitors. In a separate interview, a senior analyst confirmed that a deal of the size of SBM could fetch anywhere from £150 m to £250 m in cash, depending on the buyer’s strategic fit. A full sale would provide Schroders with a clean exit, freeing up capital that could be redirected toward its wealth‑management and digital‑investment platforms.

2. Spin‑Off or Public Listing
An alternative is a spin‑off that retains a minority stake in the benchmark arm. This would allow SBM to operate as an independent entity while still benefiting from Schroders’ corporate infrastructure. A public listing, though less likely given SBM’s modest scale, could still generate shareholder value and give the unit greater operational flexibility.

3. Strategic Partnership
Schroders is also exploring the possibility of a partnership, perhaps a joint venture, with another market player. A partnership could provide the benchmark unit with additional resources and global reach, while enabling Schroders to retain a stake and share in future upside.

4. In‑House Restructuring
A more conservative option involves a restructuring of SBM’s operations – reducing overheads, consolidating overlapping services, and potentially divesting non‑core offerings. This would keep the benchmark unit within Schroders but give it more autonomy and a leaner cost base.

Implications for Clients and the Market

If the benchmark business were to be sold or spun off, existing clients would likely experience continuity of service, as any reputable buyer would be keen to preserve the unit’s client relationships. However, the transition period could bring some uncertainty around pricing, data access, and governance oversight.

From a market perspective, the benchmark unit’s exit could consolidate the already‑tight benchmark landscape. A new owner might integrate SBM’s specialized benchmarks into a larger suite of index products, giving investors a broader choice but potentially reducing the diversity of bespoke solutions that SBM has traditionally offered.

Next Steps and Timeline

Sources say that the decision has not yet been made and that no formal announcement is expected until the company completes its due‑diligence process. Schroders’ board is said to be reviewing several potential offers, and the firm has indicated that any transaction would have to meet regulatory approval and fit within its broader strategic roadmap.

If a sale goes ahead, the timeline could span six to twelve months – a standard period for deals of this nature. The company will likely engage an adviser to manage the process and to evaluate offers from prospective buyers.

Bottom Line

Schroders’ contemplation of options for its benchmark arm signals a broader industry trend in which large asset managers are refining their core offerings and divesting niche units that do not fit the long‑term strategic narrative. While the benchmark business remains a valuable asset in terms of intellectual property and client relationships, the potential sale or spin‑off could unlock significant value for Schroders shareholders and streamline the firm’s focus on wealth‑management and investment strategies that drive growth in a post‑pandemic world. Investors and clients alike will watch closely as the company navigates this pivotal juncture in its corporate evolution.