Schroders Plc · LSE:SDR
Schroders — Q1 2015 Earnings Presentation
23 slides from Schroders's earnings presentation, Apr 30, 2015
Slide 1: Schroders 2015 Q1 Results Data Pack
Schroders 2015 Q1 Results Data Pack April 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) £319.5 billion at 31 March 2015 £bn Institutional Intermediary Asset Management Wealth Management Total 31 December 2014 171.1 97.8 268.9 31.1 300.0 Net flows 2.0 2.9 4.9 0.2 5.1 Investment returns 7.9 5.2 13.1 1.3 14.4 31 March 2015 181.0 105.9 286.9 32.6 319.5 2 Schro
Slide 4: Regional diversification of AUM
Regional diversification of AUM 62% of net revenues outside UK UK £128.2bn Continental Europe £55.7bn North America Asia Pacific £37.1bn £81.6bn Middle East £9.1bn South America £7.8bn 3 Schroders 2015 Q1 Results | 30 April 2015
Slide 5: Gross sales
Gross sales £bn 40.0 34.4 30.0 25.6 19.7 19.6 18.3 20.0 10.0 0.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 4 Schroders 2015 Q1 Results | 30 April 2015
Slide 6: Net flows
Net flows £bn 20.0 17.8 15.0 10.0 5.1 3.8 5.0 2.2 1.0 0.0 (5.0) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 5 Schroders 2015 Q1 Results | 30 April 2015
Slide 7: Currency profile of AUM
Currency profile of AUM Assets under management £319.5 billion 7% 2% 2% 2% 2% 30% 3% 4% 5% 6% 11% 26% GBP USD EUR AUD JPY CNY HKD CHF TWD IDR KRW Other* * Includes the following currencies which individually constitute 1% of AUM: INR, SGD, BRL, THB, CAD 6 Schroders 2015 Q1 Results | 30 April 2015
Slide 8: Total AUM by channel, region and product
Total AUM by channel, region and product Assets under management £319.5 billion By channel By region* By product 10% 14% 10% 5% 40% 44% 33% 57% 26% 24% 20% 17% 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 £181.0bn Intermediary AUM £105.9bn 6% 3% 22% 30% 45% 55% 20% 19% Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate 8 Schroders 2015 Q1 Results | 30 April 2015
Slide 10: Asset Management AUM by channel and region
Asset Management AUM by channel and region* Institutional AUM £181.0bn Intermediary AUM £105.9bn 12% 18% 27% 40% 30% 27% 31% 15% UK Continental Europe** Asia Pacific Americas * By client domicile ** Includes Middle East 9 Schroders 2015 Q1 Results | 30 April 2015
Slide 11: Asset Management AUM – detailed asset class analysis
Asset Management AUM – detailed asset class analysis Assets under management £286.9 billion Emerging Market Debt, Commodities Equities £139.9bn Fixed Income £55.1bn Multi-asset £77.3bn and Real Estate £14.6bn Asia Pacific 18% Americas 29% UK 35% Real estate 66% Quantitative equities 17% Global 22% L
Slide 12: Institutional AUM – detailed asset class analysis
Institutional AUM – detailed asset class analysis Assets under management £181.0 billion Emerging Market Debt, Commodities Equities £81.7bn Fixed Income £34.1bn Multi-asset £53.9bn and Real Estate £11.3bn Quantitative equities 25% Americas 41% UK 48% Real estate 71% Global 16% Global 20% LDI 28% Agr
Slide 13: Intermediary AUM – detailed asset class analysis
Intermediary AUM – detailed asset class analysis Assets under management £105.9 billion Emerging Market Debt, Commodities Equities £58.2bn Fixed Income £21.0bn Multi-asset £23.4bn and Real Estate £3.3bn Asia Pacific 23% Europe 35% Asia Pacific 37% Real estate 47% UK 18% Global 26% Americas 29% Emerg
Slide 14: Institutional
Institutional Assets under management: £181.0 billion (31 December 2014: £171.1 billion) £bn 25.0 21.0 20.0 16.1 15.0 10.0 9.3 6.0 5.7 5.4 5.0 2.0 1.0 0.8 0.0 (0.3) (5.0) (5.0) (5.7) (4.9) (4.9) (7.3) (10.0) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Gross inflows Gross outflows Net flows 13 Schroders
Slide 15: Intermediary
Intermediary Assets under management: £105.9 billion (31 December 2014: £97.8 billion) £bn 14.7 15.0 12.1 11.8 11.9 11.2 10.0 5.0 2.8 2.9 1.0 1.3 1.6 0.0 (5.0) (10.0) (9.3) (10.2) (10.5) (10.3) (11.8) (15.0) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Gross inflows Gross outflows Net flows 14 Schroders
Slide 16: Net revenue and margins – Asset Management
Net revenue and margins – Asset Management Asset Management net revenue £348.5 million (Q1 2014: £306.2 million) £m FY 2014 Q1 2014 Q1 2015 Performance fees - £m 34.2 6.3 1.7 Performance fees on average AUM 1 bps 1 bps 0 bps Net revenue (ex performance fees) - £m 1,269.3 299.9 346.8 Net revenue (ex
Slide 17: Income statement progression
Income statement progression Asset Management profit before tax £m Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Institutional 136.4 137.4 143.9 165.1 162.0 Intermediary 169.8 177.4 185.6 187.9 186.5 Net revenue 306.2 314.8 329.5 353.0 348.5 Costs (191.7) (199.5) (211.6) (206.2) (216.4) Net finance charge
Slide 18: Income statement progression
Income statement progression Wealth Management profit before tax £m Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Net revenue 50.3 50.2 61.7 51.3 52.2 Costs (37.0) (37.2) (38.8) (38.8) (37.3) Wealth Management profit before exceptional items 13.3 13.0 22.9 12.5 14.9 Exceptional items (3.6) (5.3) (6.7) (4.
Slide 19: Income statement progression
Income statement progression Group segment (loss)/profit before tax £m Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Net revenue 2.3 4.8 2.4 1.9 3.1 Costs (4.8) (7.9) (5.3) (5.5) (6.9) Net finance income 2.5 2.8 3.1 3.2 3.6 Associates* 0.4 - 0.1 4.2 1.2 Group profit/(loss) before exceptional items 0.4 (0.
Slide 20: Cost and return metrics
Cost and return metrics Total Schroders Group costs ► Compensation cost: net revenue ratio FY 2014 Q1 2014 Q1 2015 = compensation costs divided by net revenues** Compensation cost: 45% 47% 45% net revenue ratio* ► Cost: net revenue ratio Headcount 3,556 3,513 3,611 = costs divided by net revenue Tot
Slide 21: Movement in capital
Movement in capital £m 2015 31 December 2014 2,537.8 Profit before tax and exceptional items 149.6 Exceptional items (7.9) Other (including tax) (17.2) 31 March 2015 2,662.3 20 Schroders 2015 Q1 Results | 30 April 2015
Slide 22: Group capital allocation
Group capital allocation Increase of £124 million as at 31 March 2015 £m FY 2014 Q1 2015 Regulatory capital 673 673 Other operating capital 284 204 Investment capital* 725 951 Seed capital 163 156 Other** 693 678 Statutory Group capital 2,538 2,662 * Includes RWC Partners Limited and Schroder Ventur
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