Slide 1: 2014 Half-year results Data Pack
Schroders 2014 Half-year results Data Pack July 2014
Slide 2: Contents
Contents Page Assets under management (AUM) 2 Regional diversification of AUM 3 Gross sales and net flows 4-5 Currency profile of AUM 6 AUM diversification 7-9 Asset Management AUM – detailed asset class analysis 10-12 Asset Management business flows 13-14 Net revenue and margins – Asset Management
Slide 3: Assets under management (AUM)
Assets under management (AUM) £271.5 billion at 30 June 2014 Asset Management £bn Institutional Intermediary Wealth Management Total 31 December 2013 144.3 88.5 30.1 262.9 Net flows 0.7 3.8 0.3 4.8 Investment returns 3.0 0.5 0.3 3.8 30 June 2014 148.0 92.8 30.7 271.5 2 Schroders 2014 H1 Results | 31
Slide 4: Regional diversification of AUM
Regional diversification of AUM 57% of revenues outside UK UK £109.4bn Continental Europe £49.5bn North America £32.8bn Asia Pacific £65.1bn Middle East £7.9bn South America £6.8bn 3 Schroders 2014 H1 Results | 31 July 2014
Slide 5: Gross sales
Gross sales £bn 20.0 19.7 20.0 19.2 18.9 18.3 17.5 15.0 10.0 5.0 0.0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Equities Fixed Income Multi-asset EMD, Commodities & Property Wealth Management 4 Schroders 2014 H1 Results | 31 July 2014
Slide 6: Net flows
Net flows £bn 7.5 5.6 5.0 3.8 2.4 2.5 1.0 (1.1) 1.0 0.0 -2.5 -5.0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Equities Fixed Income Multi-asset EMD, Commodities & Property Wealth Management 5 Schroders 2014 H1 Results | 31 July 2014
Slide 7: Currency profile of AUM
Currency profile of AUM Assets under management £271.5 billion 10% 2% 2% 27% 2% 2% 3% 4% 4% 7% 25% 12% GBP USD EUR AUD JPY CNY HKD CHF KRW TWD IDR Other* * Includes the following currencies which individually constitute 1% of AUM: BRL, SGD, INR, CAD, RUB and THB. 6 Schroders 2014 H1 Results | 31 Jul
Slide 8: Total AUM by channel, region and product
Total AUM by channel, region and product Assets under management £271.5 billion By channel By region* By product 11% 15% 11% 21% 40% 45% 55% 24% 34% 6% 21% 17% Equities Institutional UK Fixed Income Continental Europe** Intermediary EMD, Commodities & Property Asia Pacific Multi-asset Wealth Managem
Slide 9: Asset Management AUM by channel and product
Asset Management AUM by channel and product Institutional AUM £148.0bn Intermediary AUM £92.8bn 9% 4% 20% 26% 46% 57% 19% 19% Equities Fixed Income Multi-asset EMD, Commodities & Property 8 Schroders 2014 H1 Results | 31 July 2014
Slide 10: Asset Management AUM by channel and region
Asset Management AUM by channel and region* Institutional AUM £148.0bn Intermediary AUM £92.8bn 12% 19% 32% 37% 26% 28% 16% 30% UK Continental Europe** Asia Pacific Americas *By client domicile **Includes Middle East 9 Schroders 2014 H1 Results | 31 July 2014
Slide 11: Asset Management AUM – detailed asset class analysis
Asset Management AUM – detailed asset class analysis Assets under management £240.8 billion EMD, Commodities and Equities £121.9bn Fixed Income £44.8bn Multi-asset £57.2bn Property £16.9bn Asia Pacific 16% Americas 28% Americas 12% Agriculture and commodities 21% Australia 6% Asia Pacific 7% Asia Pa
Slide 12: Institutional AUM – detailed asset class analysis
Institutional AUM – detailed asset class analysis Assets under management £148.0 billion EMD, Commodities and Equities £68.7bn Fixed Income £27.3bn Multi-asset £39.0bn Property £13.0bn Asia Pacific 13% Americas 40% Americas 3% Agriculture and commodities 21% Australia 7% Asia Pacific 6% Asia Pacific
Slide 13: Intermediary AUM – detailed asset class analysis
Intermediary AUM – detailed asset class analysis Assets under management £92.8 billion EMD, Commodities and Equities £53.2bn Fixed Income £17.5bn Multi-asset £18.2bn Property £3.9bn Asia Pacific 20% Americas 8% Americas 31% Agriculture and commodities 21% Australia 5% Asia Pacific 10% Asia Pacific 2
Slide 14: Institutional
Institutional Assets under management: £148.0bn (31 Dec 2013: £144.3bn) £bn 10.0 6.7 7.5 7.0 7.0 6.0 5.4 5.0 2.3 1.6 0.9 1.0 0.0 (0.2) (0.3) (5.0) (4.4) (5.0) (5.4) (5.7) (6.1) (7.7) (10.0) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Gross inflows Gross outflows Net flows 13 Schroders 2014 H1 Re
Slide 15: Intermediary
Intermediary Assets under management: £92.8bn (31 Dec 2013: £88.5bn) £bn 15.0 12.3 12.1 10.3 10.4 11.2 9.0 10.0 5.0 3.5 2.8 2.0 1.0 0.1 0.0 (0.8) (5.0) (10.0) (9.3) (8.8) (8.9) (8.4) (11.1) (10.2) (15.0) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Gross inflows Gross outflows Net flows 14 Schrod
Slide 16: Net revenue and margins – Asset Management
Net revenue and margins – Asset Management Asset Management net revenue £621.0 million (H1 2013: £585.7 million) H1 2013 H1 2014 Performance fees – £m 11.8 8.3 Performance fees on average AUM 1 bps 1 bps Net revenue – £m 585.7 621.0 Net revenue on average AUM 55 bps 53 bps Costs* – £m 376.0 391.2 Co
Slide 17: Cost and return metrics for the Group
Cost and return metrics for the Group ► Compensation cost: operating revenue ratio FY 2013 H1 2014 = total Group compensation costs divided by Asset Compensation cost: operating revenue ratio* 46% 47% Management and Wealth Management net revenues** Bonus: ► Bonus: pre-bonus operating profit pre-bonu
Slide 18: Key performance indicators
Key performance indicators Compensation cost: operating revenue ratio 100% 80% 60% 49% 47% 40% 44% 46% 20% 0% FY 2011 FY 2012 FY 2013* H1 2014* Total Group compensation costs divided by Asset Management and Wealth Management net revenues (adjusted by the Remuneration Committee for allowable and disa
Slide 19: Key performance indicators
Key performance indicators Cost: net revenue ratio 100% 80% 70% 60% 66% 65% 66% 40% 20% 0% FY 2011 FY 2012 FY 2013* H1 2014* Total Group costs divided by net revenue * FY 2013 and H1 2014 YTD ratio exclude exceptional costs 18 Schroders 2014 H1 Results | 31 July 2014
Slide 20: Total costs
Total costs £m 249.2 244.1 244.6 250 233.5 213.5 212.9 71.8 72.2 74.9 65.0 200 60.4 60.1 150 100 177.4 169.2 168.5 172.4 153.1 152.8 50 0 Q1 2013 Q2 2013* Q3 2013* Q4 2013* Q1 2014* Q2 2014* Staff costs Non-staff costs * Excludes exceptional costs 19 Schroders 2014 H1 Results | 31 July 2014
Slide 21: Headcount
Headcount 4,000 3,500 3,533 3,528 3,513 3,540 3,000 3,140 3,059 2,500 2,000 1,500 1,000 500 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 20 Schroders 2014 H1 Results | 31 July 2014
Slide 22: Income statement progression
Income statement progression Asset Management profit before tax £m Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Institutional 136.8 138.4 129.9 152.1 136.4 137.4 Intermediary 153.0 157.5 185.1 194.4 169.8 177.4 Net revenue 289.8 295.9 315.0 346.5 306.2 314.8 Costs* (186.6) (189.4) (206.3) (202.6)
Slide 23: Income statement progression
Income statement progression Wealth Management profit/(loss) before tax £m Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net revenue 26.5 27.0 47.0 49.5 50.3 50.2 Costs* (21.6) (21.3) (36.6) (36.2) (37.0) (37.2) Wealth Management 4.9 5.7 10.4 13.3 13.3 13.0 profit* Exceptional costs** – – (2.6) (2
Slide 24: Income statement progression
Income statement progression Group segment profit/(loss) before tax £m Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net revenue 6.7 (0.8) 4.0 0.5 2.3 4.8 Costs* (5.3) (2.2) (6.3) (5.3) (4.8) (7.9) JVs and associates** (0.5) - 1.4 0.6 0.4 - Net finance income 4.0 3.4 2.5 2.2 2.5 2.8 Group profit/(
Slide 25: Balance sheet
Balance sheet As originally reported IFRS 10 restatement £m 31 December 2013 31 December 2013 30 June 2014 Intangible assets including 489.0 489.0 476.4 goodwill Other non-current assets 644.8 644.8 624.3 Current assets 4,355.5 4,369.2 4,389.8 Assets backing unit-linked 11,131.7 11,686.4 12,187.5 li
Slide 26: Movement in capital
Movement in capital £m 2014 Opening balance 2,268.6 Profit before tax and exceptional items 261.5 Exceptional costs (27.6) Exchange differences on translation of foreign operations after hedging (14.6) Net fair value movement arising from AFS financial assets 1.4 Actuarial gain on defined benefit pe
Slide 27: Forward-looking statements
Forward-looking statements These presentation slides may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of the Group. Such statements and forecasts involve risk and uncertainty because they are base