Schroders Plc · LSE:SDR
Schroders — H1 2019 Earnings Presentation
23 slides from Schroders's earnings presentation, Aug 1, 2019
Slide 1: Half-year results 2019 Data pack
Half-year results 2019 Data pack
Slide 2: Contents
Contents Page Assets under management (AUM) 2 Regional diversification of AUM 3 Gross and net flows 4-5 Currency profile of AUM 6-7 AUM diversification 8-10 Asset Management AUM – detailed asset class analysis 11-13 Asset Management gross and net flows 14-15 Wealth Management 16 Net operating revenu
Slide 3: Assets under management (AUM)
Assets under management (AUM) £444.4 billion at 30 June 2019 Asset Wealth £bn Institutional Intermediary Total AUM Management Management 1 January 2019 242.3 121.2 363.5 43.7 407.2 Net flows 0.3 (2.4) (2.1) 0.9 (1.2) Acquisitions1 1.0 - 1.0 2.3 3.3 Investment returns 20.4 10.9 31.3 3.8 35.1 30 June
Slide 4: Regional diversification of AUM
Regional diversification of AUM1 65% of net operating revenues earned outside UK Continental UK Europe £182.9bn £82.1bn North America £59.0bn Middle East and Africa £10.0bn Asia Pacific South America £101.7bn £8.7bn 1 By client domicile. 3 Data Pack half-year 2019
Slide 5: Gross flows
Gross flows Half-yearly £bn 60.0 52.4 52.7 50.9 50.0 41.9 42.1 40.0 37.8 30.0 20.0 10.0 0.0 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management 4 Data Pack half-year 2019
Slide 6: Net flows
Net flows Half-yearly £bn 10.0 8.8 1.2 5.0 0.1 0.8 0.0 (5.0) (1.2) (10.0) (10.7) (15.0) H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management 5 Data Pack half-year 2019
Slide 7: Currency profile of AUM
Currency profile of AUM Assets under management £444.4 billion 12% 2% 2% 31% 4% 5% 6% 13% 25% USD1 GBP EUR CNY JPY AUD CHF KRW Other2 1 USD includes other currencies pegged to USD, including HKD. 2 Includes the following currencies which individually constitute 1% of AUM: TWD, IDR, INR, SGD, BRL, CA
Slide 8: Currency profile of Asset Management AUM
Currency profile of Asset Management AUM Asset Management AUM £393.7 billion Institutional £264.0bn Intermediary £129.7bn 2% 8% 9% 2% 2% 2% 2% 2% 2% 2% 33% 33% 4% 4% 5% 6% 7% 7% 12% 14% 19% 23% USD 1 GBP EUR CNY AUD JPY USD 1 EUR GBP CNY JPY AUD CHF KRW INR TWD Other IDR SGD KRW TWD Other 1 USD incl
Slide 9: Total AUM by channel, region and product
Total AUM by channel, region and product Assets under management £444.4 billion By channel By region1 By product 11% 9% 15% 11% 37% 41% 29% 21% 60% 18% 23% 25% Institutional UK Equities Intermediary Asia Pacific Multi-asset Wealth Management Fixed Income Europe, Middle East & Africa Wealth Managemen
Slide 10: Asset Management AUM by channel and product
Asset Management AUM by channel and product Assets under management £393.7 billion Institutional AUM £264.0bn Intermediary AUM £129.7bn 11% 8% 37% 18% 24% 53% 15% 34% Equities Multi-asset Fixed Income Private Assets & Alternatives 9 Data Pack half-year 2019
Slide 11: Asset Management AUM by channel and region
Asset Management AUM by channel and region1 Assets under management £393.7 billion Institutional AUM £264.0bn Intermediary AUM £129.7bn 12% 20% 26% 39% 17% 34% 28% 24% UK Asia Pacific Europe, Middle East & Africa Americas 1 By client domicile. 10 Data Pack half-year 2019
Slide 12: Asset Management AUM – detailed asset class analysis
Asset Management AUM – detailed asset class analysis Assets under management £393.7 billion Equities £166.2bn Multi-asset £109.7bn Fixed Income £78.5bn Private Assets & Alternatives £39.3bn Asia Pacific 22% Risk controlled growth 51% US 30% Real estate 38% Global 17% Global 22% Private equity 18% LD
Slide 13: Institutional AUM – detailed asset class analysis
Institutional AUM – detailed asset class analysis Assets under management £264.0 billion Equities £98.5bn Multi-asset £89.8bn Fixed Income £47.0bn Private Assets & Alternatives £28.7bn Global 22% Risk controlled growth 52% US 46% Real estate 46% Emerging markets 20% Global 20% Private equity 25% LDI
Slide 14: Intermediary AUM – detailed asset class analysis
Intermediary AUM – detailed asset class analysis Assets under management £129.7 billion Equities £67.7bn Multi-asset £19.9bn Fixed Income £31.5bn Private Assets & Alternatives £10.6bn Asia Pacific 27% Income 45% Europe 40% Securitised credit 32% UK 12% Risk controlled growth 43% Global 25% GAIA 29%
Slide 15: Institutional – gross and net flows
Institutional – gross and net flows Assets under management £264.0 billion £bn 30.0 21.0 19.6 18.8 20.0 15.2 15.0 16.5 10.0 2.8 1.4 0.2 0.3 0.0 (0.1) (10.0) (6.8) (15.3) (16.0) (16.2) (20.0) (18.2) (20.8) (21.8) (30.0) H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Gross inflows Gross outflows Net
Slide 16: Intermediary – gross and net flows
Intermediary – gross and net flows Assets under management £129.7 billion £bn 40.0 30.0 29.0 27.7 27.9 24.6 22.2 19.5 20.0 10.0 4.6 0.4 0.0 (1.2) (0.2) (2.4) (4.4) (10.0) (20.0) (23.1) (23.9) (24.2) (24.6) (30.0) (30.2) (28.1) (40.0) H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Gross inflows Gros
Slide 17: Wealth Management
Wealth Management Assets under management £50.7 billion Clients by portfolio size Gross and net flows £bn 5.0 14% 16% 4.4 4.0 3.8 3.8 3.3 3.4 7% 3.0 2.1 2.0 1.4 1.2 0.9 9% 16% 1.0 0.6 0.5 0.0 (0.2) (1.0) 11% 11% (2.0) (2.3) (3.0) (2.6) (2.5) 16% (3.0) (2.8) (3.2) (4.0) H2 2016 H1 2017 H2 2017 H1 201
Slide 18: Net operating revenue and margins – Asset Management
Net operating revenue and margins – Asset Management Asset Management net operating revenue £852.9 million £m FY 2018 H1 2018 H1 2019 Performance fees and net carried interest - £m 54.6 35.4 27.3 Net operating revenue (ex performance fees and net carried interest) - £m 1,734.2 875.7 825.6 Net operat
Slide 19: Income statement progression – Asset Management
Income statement progression Asset Management profit before tax £m H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Institutional 372.8 441.2 432.5 418.8 419.6 Intermediary 436.5 492.8 478.6 458.9 433.3 Net operating revenue 809.3 934.0 911.1 877.7 852.9 Net (loss)/gain on financial instruments and other inc
Slide 20: Income statement progression – Wealth Management
Income statement progression Wealth Management profit before tax £m H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Net operating revenue 130.8 136.1 139.9 142.0 140.4 Net gain on financial instruments and other income 2.9 3.4 3.7 3.8 3.2 Share of profit of associates and joint ventures - 0.1 0.2 0.2 0.4 Ne
Slide 21: Income statement progression – Group segment
Income statement progression Group segment profit/(loss) before tax £m H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Net gain on financial instruments and other income 18.6 16.5 18.8 10.3 21.5 Share of profit of associates 2.1 0.5 2.0 1.8 2.5 Net income 20.7 17.0 20.8 12.1 24.0 Operating expenses (15.3) (
Slide 22: Cost and return metrics
Cost and return metrics Total Schroders Group costs 2018 H1 2018 H1 2019 Total compensation ratio1 43% 43.5% 44.0% Total compensation ratio = compensation costs divided by net income2 Headcount 5,039 4,861 5,339 Total costs (£m)1 1,362.7 689.0 692.2 Ratio of total costs to net income = costs divided
Slide 23: Group capital
Group capital £m £m 4,000 4,000 3,621 3,621 3,576 3,576 3,500 3,500 3,000 1,164 1,242 1,205 3,000 1,341 2,500 2,500 216 96 2,000 535 567 2,000 1,126 1,084 1,500 465 474 1,500 165 176 Capital surplus 1,000 1,000 Working capital – Other 1 500 1,115 1,154 1,115 1,154 500 Dividend Working capital – Seed