Putting the flesh back into fund management: Live flesh show
Michael Dobson should have an interesting time turning around Schroders.
At least having been a non-executive director of the firm, the former Deutsche Asset Management boss has a pretty good idea of what he's letting himself in for.
One of the first headaches he may have to deal with, though, is in the back office - not somewhere this most suave of City characters would necessarily spend much of his time. However a legacy of his predecessor David Salisbury is the outsourcing contract with Chase's old custody division, now JPMorgan Investor Services.
Outsourcing the back-office was supposed to free up the investment staff to concentrate on what they're good at: investing and gathering assets. Outsourcing has been a buzzword in fund management for some time and the JPMorgan deal made a big splash when it was announced last year.
However, it seems not all is going to plan. A source familiar with the deal says it could be another three years before it starts to deliver. Schroders hopes to save some £15 million a year of the £60 million it spends on this part of the business. Not huge sums maybe but enough to make Dobson's job a little harder.