UK asset management firm Schroders has unveiled a 5.1% stake in London-listed shipbroker Braemar.
The investor told the London Stock Exchange that it now holds more than 1.68m shares, putting it above the 5% threshold that requires it to disclose its stake.
Disclosure of the holding comes after the firm, one of the UK’s biggest investment companies, added Braemar to its Schroder UK Smaller Companies Fund, according to a second-quarter update for clients.
Although it did not explain the move into Braemar, Schroders said the fund has “turned more cautious” given margin pressures facing companies, particularly in those in the leisure sector that have large payrolls.
“Consumers are at risk of higher remortgage rates and there is concern both among business and individuals about the tax background under a new Labour government,” the firm said in the fund update.
“We are focused on companies that can at least maintain their price points as abating inflationary pressures make it harder to push through rises.”
The fund, managed by Andy Brough, also initiated new positions in communications equipment manufacturer Filtronic and electronic components maker Gooch & Housego.
The latest quarter also saw Schroders participate in the IPO of computer manufacturer Raspberry Pi before quickly exiting.
The fund has £357m ($453m) in total assets, according to Morningstar.
Schroders’ stake in Braemar, one of two London-listed shipbroking houses, would give Schroders the fourth-largest position, based on a list of top shareholders published in February.
At that time, Hargreaves Lansdown Asset Management was the biggest investor in Braemar with an 8.8% stake.
Braemar’s employee stock ownership plan was in second with a 7.2% stake, followed by Interactive Investor with 7%.
At the time, Schroders had no place on the list of investors with a 3% stake or more.
Based in London, Schroders reported last week that it has some £774bn ($982bn) assets under management. The figure represents growth on £726m in assets reported a year ago.
The 200-year-old firm reported £276m pre-tax profit for the first half of the year, essentially unchanged from a year earlier.
That was built on £1.18bn in net operating income, a dip from £1.21bn in the opening six months of 2023.
“Strong investment performance in our global equity and fixed income flagship strategies provided resilience to industry-related headwinds as investors moved away from regional equity strategies,” the company said of its public markets activities.
