SCHRODERS is facing absence from the FTSE 100 for the first time in 12 years after a 26 per cent fall in its share price over the past six months.
The fund manager is now valued at £2.6 billion, making it vulnerable to ejection in Wednesday’s quarterly review of the benchmark index.
Shares in Schroders have been hit by an exodus of institutional clients that has seen a £4.6 billion outflow of funds under management in this year’s first six months.
A demotion of Schroders would be a blow to Michael Dobson, its chief executive, who stands to receive a bonus of £3.75 million if the price of non-voting shares in the company hits £13.32 by October 19 — 33 per cent above where they closed last Friday.
Rentokil Initial, the parcel delivery to pest control conglomerate, also faces ejection from the FTSE 100 after last month’s disappointing first-half figures.
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Changes to the index have been triggered by activity in the life insurance sector, in which Standard Life floated in July and in which Resolution, the life assurer formerly known as Britannic, has transformed itself through the £3.6 billion acquisition of the life insurance businesses of Abbey National earlier this year.
Standard Life, based in Edinburgh, is now valued at about £5.4 billion, ranking it 57th within the FTSE 100, with Resolution — which is valued at £4.1 billion — in 77th place.
Standard Life’s entry to the index will increase buying by tracker funds to a greater extent than Resolution’s because Standard Life has never previously been classified within the FTSE index series.
Among mid-caps, Southern Cross Healthcare, the care home operator that floated in July, and Keller, the engineer, are set to join the FTSE 250.
The changes decided on Wednesday will take effect from September 19.