Schroders PLC · LSE:SDR
Schroders — Investment Symposium 2022
9 slides from Schroders's conference presentation, March 2022
Slide 1: Investment Symposium 2022
Investment Symposium 2022 Stephen Kam, Investment Director, Asia ex Japan March 2022 Marketing material for professional investors or advisers only.
Slide 2: Cyclical markets led, while China lagged in 2021
Cyclical markets led, while China lagged in 2021 2021 performance of major markets in Asia Pacific region MSCI Taiwan MSCI India MSCI Australia MSCI Singapore MSCI China A Onshore MSCI Indonesia MSCI Thailand MSCI AC Asia Pacific ex JP MSCI Philippines MSCI Hong Kong MSCI Malaysia -EM MSCI Korea MSC
Slide 3: 'Common prosperity' – addressing growing income disparity
‘Common prosperity’ – addressing growing income disparity As in many countries, low social mobility is a big issue in China The Social Mobility Hurdle Number of generations it would take for those born in a low-income family to approach mean income Denmark 2 Finland 3 Norway 3 Sweden 3 Australia 4 L
Slide 4: China GDP growth slowed to 4% y/y in Q4 2021
China GDP growth slowed to 4% y/y in Q4 2021 Growth still unbalanced, manufacturing picked up in Q4 but retail sales were weak 2 Year Annualised Real Growth (%) 15 20 10 8 10 15 6 4 5 10 2 0 0 5 -2 -4 -5 0 -6 -10 -5 -8 -10 -15 -10 -12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 2021
Slide 5: China – policy easing on the way in 2022?
China – policy easing on the way in 2022? Strong export sector and post COVID rebound created room for policy tightening in 2021. Scope for relaxation in 2022 as economic momentum fades 2003–07: As global trade volume growth stayed strong in the period, 2021: Amid robust external demand conditions,
Slide 6: Why is the market so worried about the wave of new regulation?
Why is the market so worried about the wave of new regulation? If the government priority is shifting to a much greater focus on ‘common prosperity’ then revenues/margins/ROIC/capex may have to be sacrificed for the ‘greater good’ MSCI China index weighting China mobile Average Revenue Per User (RMB
Slide 7: Valuations have pulled back to more reasonable levels
Valuations have pulled back to more reasonable levels Both offshore and onshore markets now trading around long term average MSCI China Forward PE (x) MSCI China A Onshore Forward PE (x) 30 40 35 25 30 20 25 Avg +1Stdev 20.0x 15 Avg +1Stdev 14.8x 20 Avg 11.9x 15 Avg 14.8x 10 11.7x 14.0x Avg -1Stdev
Slide 8: Important information
Important information For professional investors and advisers only. The material is not suitable for retail clients. We define "Professional Investors" as those who have the appropriate expertise and knowledge e.g. asset managers, distributors and financial intermediaries. This information is a mark
Slide 9: Marketing material for professional investors or advisers only.
Marketing material for professional investors or advisers only.