Rating is premium but so is the price

 
 

SCHRODERS
Inflows £8.8bn Dividend 29p

Shares in fund managers are starting to look very expensive. Schroders has always commanded a premium rating because it is more diverse than most, both geographically and in terms of assets under management, with a spread of institutional and retail business and a range of asset classes. It does not have the heavy Asia Pacific weighting of Aberdeen, for example, which contributed to the latter’s disappointing update a week ago.

Neither do the shares offer the high yield that is available elsewhere, such as from Jupiter, as I wrote yesterday. The company has been jacking up dividends, by 35 per cent in each of the past two years and another 21 per cent at the halfway stage, but the shares