Schroders Plc · LSE:SDR

Schroders — H1 2017 Earnings Presentation

22 slides from Schroders's earnings presentation, Jul 27, 2017

  1. Slide 1: Schroders 2017 Half-year Results Data Pack

    Schroders 2017 Half-year Results Data Pack 27 July 2017

  2. Slide 2: Contents

    Contents Page Asset under management and administration (AUMA) 2 Regional diversification of AUM 3 Gross sales 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 AUM flows 14-15 Net operating revenue and

  3. Slide 3: Assets under management and administration (AUMA)

    Assets under management and administration (AUMA) £418.2 billion at 30 June 2017 Asset Wealth £bn Institutional Intermediary Total AUM AUA AUMA2 Management Management1 1 January 2017 226.3 120.1 346.4 39.6 386.0 11.1 397.1 Net flows 1.4 (1.2) 0.2 0.6 0.8 Acquisitions3 - - - 2.5 2.5 Investment return

  4. Slide 4: Regional diversification of AUM

    Regional diversification of AUM* 65% of net operating revenues earned outside UK UK** £163.6bn North America Continental Europe £48.1bn £76.2bn Middle East and Africa £10.4bn Asia Pacific £100.0bn South America £8.6bn * By client domicile. **A further £11.3bn of assets under administration are locat

  5. Slide 5: Gross sales

    Gross sales Half-yearly £bn 60.0 52.4 50.0 48.6 41.9 38.9 40.0 35.5 30.0 20.0 10.0 0.0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 4

  6. Slide 6: Net flows

    Net flows Half-yearly £bn 10.0 8.8 4.2 1.0 5.0 0.1 0.8 0.0 (5.0) H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 5

  7. Slide 7: Currency profile of AUM

    Currency profile of AUM Assets under management £406.9 billion 10% 2% 2% 2% 30% 4% 5% 5% 12% 28% USD* GBP EUR JPY AUD CNY KRW TWD CHF Other** * USD includes other currencies pegged to USD, including HKD. ** Includes the following currencies which individually constitute 1% of AUM: IDR, INR, SGD, BRL

  8. Slide 8: Currency profile of Asset Management AUM

    Currency profile of Asset Management AUM Assets Management AUM £363.3 billion Institutional £238.6bn Intermediary £124.7bn USD* 32% USD* 33% EUR 18% GBP 24% GBP 16% EUR 10% JPY 7% AUD 6% CNY 5% CNY 5% AUD 4% JPY 5% IDR 2% KRW 3% TWD 2% TWD 2% SGD 2% KRW 2% CHF 2% CHF 2% Other 10% Other 8% * USD incl

  9. Slide 9: Total AUM by channel, region and product

    Total AUM by channel, region and product Assets under management £406.9 billion By channel By region* By product 11% 14% 11% 4% 40% 41% 31% 25% 24% 58% 21% 20% Equities UK Fixed Income Institutional Multi-asset Continental Europe, Middle East & Africa Intermediary Emerging Market Debt, Asia Pacific

  10. Slide 10: Asset Management AUM by channel and product

    Asset Management AUM by channel and product Assets under management £363.3 billion Institutional AUM £238.6bn Intermediary AUM £124.7bn 5% 2% 17% 32% 41% 56% 25% 22% Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate 9

  11. Slide 11: Asset Management AUM by channel and region

    Asset Management AUM by channel and region* Assets under management £363.3 billion Institutional AUM £238.6bn Intermediary AUM £124.7bn 10% 19% 26% 39% 27% 27% 37% 15% UK Continental Europe, Middle East & Africa Asia Pacific Americas * By client domicile. 10

  12. Slide 12: Asset Management AUM – detailed asset class analysis

    Asset Management AUM – detailed asset class analysis Assets under management £363.3 billion Emerging Market Debt, Commodities Equities £166.8bn Fixed Income £84.0bn Multi-asset £97.4bn and Real Estate £15.1bn Real estate 74% US 30% Risk controlled growth 35% Asia Pacific 19% LDI 25% Emerging market

  13. Slide 13: Institutional AUM – detailed asset class analysis

    Institutional AUM – detailed asset class analysis Assets under management £238.6 billion Emerging Market Debt, Commodities Equities £97.7bn Fixed Income £52.7bn Multi-asset £76.0bn and Real Estate £12.2bn Quantitative equities 22% US 45% Risk controlled growth 36% Real estate 79% Global 17% LDI 33%

  14. Slide 14: Intermediary AUM – detailed asset class analysis

    Intermediary AUM – detailed asset class analysis Assets under management £124.7 billion Emerging Market Debt, Commodities Equities £69.1bn Fixed Income £31.3bn Multi-asset £21.4bn and Real Estate £2.9bn Asia Pacific 24% Europe 36% Income 44% Real estate 51% Europe Global 22% Risk controlled growth 3

  15. Slide 15: Institutional

    Institutional Assets under management £238.6 billion £bn 25.0 19.6 20.0 17.9 16.7 15.3 15.2 15.0 10.0 5.2 4.4 5.0 3.6 1.4 0.0 (0.1) (5.0) (10.0) (10.1) (15.0) (13.1) (13.5) (15.3) (20.0) (18.2) (25.0) H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Gross inflows Gross outflows Net flows 14

  16. Slide 16: Intermediary

    Intermediary Assets under management £124.7 billion £bn 40.0 28.6 29.0 30.0 24.6 18.8 20.0 18.0 10.0 4.8 0.4 0.0 (0.5) (1.2) (3.3) (10.0) (20.0) (18.5) (22.1) (23.8) (24.2) (30.0) (30.2) (40.0) H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Gross inflows Gross outflows Net flows 15

  17. Slide 17: Net operating revenue and margins – Asset Management

    Net operating revenue and margins – Asset Management Asset Management net operating revenue £809.3 million FY 2016 H1 2016 H1 2017 Performance fees - £m 38.8 6.4 13.2 Performance fees on average AUM 1 bps 0 bps 1 bps Net operating revenue (ex performance fees) - £m 1,450.7 681.4 796.1 Net operating

  18. Slide 18: Income statement progression

    Income statement progression Asset Management profit before tax £m H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Institutional 309.0 319.7 316.1 376.4 372.8 Intermediary 383.9 380.8 371.7 425.3 436.5 Net operating revenue 692.9 700.5 687.8 801.7 809.3 Net gains/(losses) on financial instruments and other

  19. Slide 19: Income statement progression

    Income statement progression Wealth Management profit before tax £m H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Net operating revenue 105.7 101.6 107.1 116.2 130.8 Net (losses)/gains on financial instruments and other income (0.2) 0.1 0.1 0.6 2.9 Net income 105.5 101.7 107.2 116.8 133.7 Operating expens

  20. Slide 20: Income statement progression

    Income statement progression Group segment (loss)/profit before tax £m H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 Net gains on financial instruments and other income 11.9 18.2 14.3 15.6 18.6 Share of profit of associates* 6.9 1.8 3.6 1.2 2.1 Net income 18.8 20.0 17.9 16.8 20.7 Operating expenses (14.1)

  21. Slide 21: Cost and return metrics

    Cost and return metrics Total Schroders Group costs 2016 H1 2016 H1 2017 ►Total compensation ratio = compensation costs divided by net income** Total compensation ratio* 44% 45% 44% Headcount 4,145 3,866 4,299 ►Total cost ratio = costs divided by net income Total costs (£m)* 1,148.4 540.3 612.9 Tota

  22. Slide 22: Group Capital (£m)

    Group Capital (£m) Increase of £57m in the six months ended 30 June 2017 3,500 3,500 3,153 3,210 3,153 3,210 3,000 3,000 820 1,087 915 2,500 1,245 2,500 151 144 Investment Capital - Liquid Capital Surplus 93 409 2,000 2,000 213 325 Interim Dividend 204 Investment Capital - Illiquid* Capital Buffer 1

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