Is SDR.L (Schroders plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SDR.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 3 of 4 compliance screens. Schroders plc's core business activity was found to be non-compliant. Its interest income of 9.74% exceeds the ≤5% limit. Its cash & securities ratio of 50.37% exceeds the ≤33% threshold.

Schroders plc is a prominent British multinational asset management company, offering investment solutions across equities, fixed income , multi-asset, and alternatives. The firm serves a diverse clientele ranging from individual retail investors to massive institutional pension funds and sovereign wealth entities. With a global footprint, Schroders is deeply embedded in the traditional financial system, actively managing mutual funds and providing wealth management advisory services. For Muslim investors using HalalStocks.co.uk, Schroders plc is classified as Not Halal (Haram). The company only passed one of the four required AAOIFI screens, specifically the debt ratio. The primary issue lies in its core business model; as a conventional asset manager, it profits from managing non- shariah compliant instruments like conventional bonds and hedge funds, leading to a failure in the Business Activity screen. From a financial ratio perspective, the stock presents significant challenges for compliance. Although its debt load is relatively low at 10. 2% of its market cap, the company holds an excessive amount of cash and interest-bearing securities (50.4 %), well above the 33% limit. Furthermore, the interest income generated relative to its total revenue stands at 9. 74%, almost double the permissible 5% threshold, making purification impossible under standard guidelines. Investors should note that while Schroders does offer some specific Islamic investment products for clients, holding shares in the parent company itself remains imper missible due to the mixed nature of its overall revenue streams. Until the company significantly alters its balance sheet structure and revenue sources to reduce reliance on interest-based income, it remains outside the investable universe for strict shariah-compliant portfolios. Schroders plc operates in the Financial Services sector under the Asset Management industry and is headquartered in London, GB. The company is led by CEO Richard Oldfield and employs approximately 6,363 people.

SDR.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SDR.L passed 1 of these 4 screens.

SDR.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.