Slide 1: Schroders 2015 Q3 Results Data Pack
Schroders 2015 Q3 Results Data Pack November 2015
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 AUM flows 13-14 Net revenue and margins – Asset Management 15 In
Slide 3: Assets under management (AUM)
Assets under management (AUM) £294.8 billion at 30 September 2015 £bn Institutional Intermediary Asset Management Wealth Management Total 31 December 2014 171.1 97.8 268.9 31.1 300.0 Net flows 3.5 4.6 8.1 0.2 8.3 Investment returns* (7.3) (5.8) (13.1) (0.4) (13.5) 30 September 2015 167.3 96.6 263.9
Slide 4: Regional diversification of AUM
Regional diversification of AUM 61% of net revenues outside UK UK £121.6bn Continental Europe £52.7bn North America £32.9bn Asia Pacific £72.4bn Middle East £8.5bn South America £6.7bn 3 Schroders 2015 Q3 Results | 5 November 2015
Slide 5: Gross sales
Gross sales £bn 40.0 34.4 30.0 25.6 23.0 18.3 19.6 20.0 15.6 10.0 0.0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 4 Schroders 2015 Q3 Results | 5 November 2015
Slide 6: Net flows
Net flows £bn 20.0 17.8 15.0 10.0 5.1 5.0 3.7 2.2 1.0 0.0 (0.5) (5.0) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 5 Schroders 2015 Q3 Results | 5 November 2015
Slide 7: Currency profile of AUM
Currency profile of AUM Assets under management £294.8 billion 10% 2% 2% 3% 31% 4% 5% 5% 12% 26% GBP USD EUR AUD JPY CNY HKD CHF TWD Other* * Includes the following currencies which individually constitute 1% of AUM: KRW, INR, IDR, SGD, CAD, THB, SEK, BRL 6 Schroders 2015 Q3 Results | 5 November 201
Slide 8: Total AUM by channel, region and product
Total AUM by channel, region and product Assets under management £294.8 billion By channel By region* By product 10% 13% 10% 5% 41% 41% 25% 33% 57% 25% 21% 19% Equities Institutional UK Fixed Income Continental Europe** Multi-asset Intermediary Asia Pacific Emerging Market Debt, Wealth Management Co
Slide 9: Asset Management AUM by channel and product
Asset Management AUM by channel and product Institutional AUM £167.3bn Intermediary AUM £96.6bn 7% 3% 22% 42% 31% 53% 22% 20% Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate 8 Schroders 2015 Q3 Results | 5 November 2015
Slide 10: Asset Management AUM by channel and region
Asset Management AUM by channel and region* Institutional AUM £167.3bn Intermediary AUM £96.6bn 12% 17% 27% 42% 28% 27% 33% 14% UK Continental Europe** Asia Pacific Americas * By client domicile ** Includes Middle East 9 Schroders 2015 Q3 Results | 5 November 2015
Slide 11: Asset Management AUM – detailed asset class analysis
Asset Management AUM – detailed asset class analysis Assets under management £263.9 billion Emerging Market Debt, Commodities Equities £122.2bn Fixed Income £55.0bn Multi-asset £73.1bn and Real Estate £13.6bn Asia Pacific 17% Americas 33% LDI 22% Real estate 72% 16% Risk controlled growth - UK 21% Q
Slide 12: Institutional AUM – detailed asset class analysis
Institutional AUM – detailed asset class analysis Assets under management £167.3 billion Emerging Market Debt, Commodities Equities £70.3bn Fixed Income £34.2bn Multi-asset £51.9bn and Real Estate £10.9bn Quantitative equities 25% Americas 46% LDI 30% Real estate 76% Global 16% Global 17% Risk contr
Slide 13: Intermediary AUM – detailed asset class analysis
Intermediary AUM – detailed asset class analysis Assets under management £96.6 billion Emerging Market Debt, Commodities Equities £51.9bn Fixed Income £20.8bn Multi-asset £21.2bn and Real Estate £2.7bn Asia Pacific 21% Europe 36% Income 33% Real estate 54% UK 18% Global 25% Risk controlled growth -
Slide 14: Institutional flows
Institutional flows Assets under management: £167.3 billion (30 June 2015: £175.5 billion) £bn 25.0 21.0 20.0 16.1 15.0 10.0 9.3 7.4 5.4 5.7 4.9 5.0 2.0 1.6 0.8 0.0 (0.3) (0.1) (5.0) (4.9) (4.9) (5.0) (5.7) (5.8) (7.3) (10.0) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Gross inflows Gross outflo
Slide 15: Intermediary flows
Intermediary flows Assets under management: £96.6 billion (30 June 2015: £102.4 billion) £bn 14.7 13.9 15.0 11.2 11.8 11.9 10.0 9.6 5.0 2.9 1.3 1.6 1.9 1.0 0.0 (0.2) (5.0) (10.0) (10.2) (10.5) (10.3) (9.8) (11.8) (12.0) (15.0) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Gross inflows Gross outfl
Slide 16: Net revenue and margins – Asset Management
Net revenue and margins – Asset Management Asset Management net revenues £1,032.8 million (YTD Q3 2014: £950.5 million) FY 2014 YTD Q3 2014 YTD Q3 2015 Performance fees - £m 34.2 11.7 12.7 Performance fees on average AUM 1 bps 1 bps 1 bps Net revenue (ex performance fees) - £m 1,269.3 938.8 1,020.1
Slide 17: Income statement progression
Income statement progression Asset Management profit before tax £m Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Institutional 137.4 143.9 165.1 162.0 148.4 147.0 Intermediary 177.4 185.6 187.9 186.5 197.4 191.5 Net revenue 314.8 329.5 353.0 348.5 345.8 338.5 Costs (199.5) (211.6) (206.2) (216.4)
Slide 18: Income statement progression
Income statement progression Wealth Management profit before tax £m Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Net revenue 50.2 61.7 51.3 52.2 53.3 51.8 Costs (37.2) (38.8) (38.8) (37.3) (38.2) (35.3) Wealth Management profit before exceptional items 13.0 22.9 12.5 14.9 15.1 16.5 Exceptional it
Slide 19: Income statement progression
Income statement progression Group segment (loss)/profit before tax £m Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Net revenue 4.8 2.4 1.9 3.1 3.3 5.0 Costs (7.9) (5.3) (5.5) (6.9) (7.2) (6.6) Net finance income 2.8 3.1 3.2 3.6 1.9 2.2 Associates* - 0.1 4.2 1.2 5.7 1.0 Group (loss)/profit before
Slide 20: Cost and return metrics
Cost and return metrics Total Schroders Group costs Q3 2014 Q3 2015 ► Compensation cost: net revenue ratio FY 2014 YTD YTD = compensation costs divided by net revenues** Compensation cost: 45% 47% 45% net revenue ratio* ► Cost: net revenue ratio Headcount 3,556 3,574 3,786 = costs divided by net rev
Slide 21: Movement in capital
Movement in capital £m 2015 31 December 2014 2,537.8 Profit before tax and exceptional items 453.2 Exceptional items (14.3) Net fair value movement arising from AFS financial assets (15.5) Exchange differences on translation of foreign operations after hedging (4.5) Tax (80.1) Own shares purchased (
Slide 22: Group capital allocation
Group capital allocation Increase of £105 million since 31 December 2014 £m FY 2014 Q3 2015 Regulatory capital 673 684 Other operating capital 284 180 Investment capital* 725 931 Seed capital 163 163 Other** 693 685 Statutory Group capital 2,538 2,643 * Includes RWC Partners Limited and Schroder Ven
Slide 23: Forward-looking statements
Forward-looking statements This presentation may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of the Schroders Group. Such statements and forecasts involve risk and uncertainty because they are ba