Schroders Plc · LSE:SDR
Schroders — H1 2015 Earnings Presentation
23 slides from Schroders's earnings presentation, Jul 30, 2015
Slide 1: Schroders 2015 H1 Results Data Pack
Schroders 2015 H1 Results Data Pack July 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) £309.9 billion at 30 June 2015 £bn Institutional Intermediary Asset Management Wealth Management Total 31 December 2014 171.1 97.8 268.9 31.1 300.0 Net flows 3.6 4.8 8.4 0.4 8.8 Investment returns* 0.8 (0.2) 0.6 0.5 1.1 30 June 2015 175.5 102.4 277.9 32.0 309.9 * The st
Slide 4: Regional diversification of AUM
Regional diversification of AUM 61% of net revenues outside UK UK £126.7bn Continental Europe £54.3bn North America £34.4bn Asia Pacific £78.1bn Middle East £9.1bn South America £7.3bn 3 Schroders 2015 H1 Results | 30 July 2015
Slide 5: Gross sales
Gross sales £bn 40.0 34.4 30.0 25.6 23.0 19.7 19.6 18.3 20.0 10.0 0.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 4 Schroders 2015 H1 Results | 30 July 2015
Slide 6: Net flows
Net flows £bn 20.0 17.8 15.0 10.0 5.1 3.8 3.7 5.0 2.2 1.0 0.0 (5.0) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management 5 Schroders 2015 H1 Results | 30 July 2015
Slide 7: Currency profile of AUM
Currency profile of AUM Assets under management £309.9 billion 10% 2% 2% 3% 32% 4% 5% 6% 11% 25% GBP USD EUR AUD JPY CNY HKD CHF TWD Other* * Includes the following currencies which individually constitute 1% of AUM: KRW, IDR, INR, SGD, BRL, THB, CAD 6 Schroders 2015 H1 Results | 30 July 2015
Slide 8: Total AUM by channel, region and product
Total AUM by channel, region and product Assets under management £309.9 billion By channel By region* By product 10% 13% 10% 5% 42% 43% 25% 33% 57% 25% 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 £175.5bn Intermediary AUM £102.4bn 6% 3% 21% 31% 44% 56% 20% 19% Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate 8 Schroders 2015 H1 Results | 30 July 2015
Slide 10: Asset Management AUM by channel and region
Asset Management AUM by channel and region* Institutional AUM £175.5bn Intermediary AUM £102.4bn 12% 17% 27% 41% 29% 27% 32% 15% UK Continental Europe** Asia Pacific Americas * By client domicile ** Includes Middle East 9 Schroders 2015 H1 Results | 30 July 2015
Slide 11: Asset Management AUM – detailed asset class analysis
Asset Management AUM – detailed asset class analysis Assets under management £277.9 billion Emerging Market Debt, Commodities Equities £134.4bn Fixed Income £53.8bn Multi-asset £75.5bn and Real Estate £14.2bn Asia Pacific 18% Americas 28% UK 35% Real estate 68% Quantitative equities 16% Global 23% L
Slide 12: Institutional AUM – detailed asset class analysis
Institutional AUM – detailed asset class analysis Assets under management £175.5 billion Emerging Market Debt, Commodities Equities £77.3bn Fixed Income £33.4bn Multi-asset £53.6bn and Real Estate £11.2bn Quantitative equities 25% Americas 40% UK 47% Real estate 74% Emerging markets 16% Global 22% L
Slide 13: Intermediary AUM – detailed asset class analysis
Intermediary AUM – detailed asset class analysis Assets under management £102.4 billion Emerging Market Debt, Commodities Equities £57.1bn Fixed Income £20.4bn Multi-asset £21.9bn and Real Estate £3.0bn Asia Pacific 23% Europe 36% Asia Pacific 35% Real estate 48% UK 18% Global 25% Americas 29% Emerg
Slide 14: Institutional flows
Institutional flows Assets under management: £175.5 billion (31 December 2014: £171.1 billion) £bn 25.0 21.0 20.0 16.1 15.0 10.0 9.3 7.4 6.0 5.7 5.4 5.0 2.0 1.6 1.0 0.8 0.0 (0.3) (5.0) (5.0) (5.7) (4.9) (4.9) (5.8) (7.3) (10.0) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Gross inflows Gross outf
Slide 15: Intermediary flows
Intermediary flows Assets under management: £102.4 billion (31 December 2014: £97.8 billion) £bn 14.7 15.0 13.9 12.1 11.8 11.9 11.2 10.0 5.0 2.8 2.9 1.3 1.6 1.9 1.0 0.0 (5.0) (10.0) (9.3) (10.2) (10.5) (10.3) (11.8) (12.0) (15.0) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Gross inflows Gross ou
Slide 16: Net revenue and margins – Asset Management
Net revenue and margins – Asset Management Asset Management net revenues £694.3 million (H1 2014: £621.0 million) FY 2014 H1 2014 H1 2015 Performance fees - £m 34.2 8.3 5.9 Performance fees on average AUM 1 bps 1 bps 1 bps Net revenue (ex performance fees) - £m 1,269.3 612.7 688.4 Net revenue (ex pe
Slide 17: Income statement progression
Income statement progression Asset Management profit before tax £m Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Institutional 136.4 137.4 143.9 165.1 162.0 148.4 Intermediary 169.8 177.4 185.6 187.9 186.5 197.4 Net revenue 306.2 314.8 329.5 353.0 348.5 345.8 Costs (191.7) (199.5) (211.6) (206.2)
Slide 18: Income statement progression
Income statement progression Wealth Management profit before tax £m Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Net revenue 50.3 50.2 61.7 51.3 52.2 53.3 Costs (37.0) (37.2) (38.8) (38.8) (37.3) (38.2) Wealth Management profit before exceptional items 13.3 13.0 22.9 12.5 14.9 15.1 Exceptional it
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 Q2 2015 Net revenue 2.3 4.8 2.4 1.9 3.1 3.3 Costs (4.8) (7.9) (5.3) (5.5) (6.9) (7.2) Net finance income 2.5 2.8 3.1 3.2 3.6 1.9 Associates* 0.4 - 0.1 4.2 1.2 5.7 Group profit/(loss) before
Slide 20: Cost and return metrics
Cost and return metrics Total Schroders Group costs ► Compensation cost: net revenue ratio FY 2014 H1 2014 H1 2015 = compensation costs divided by net revenues** Compensation cost: 45% 47% 45% net revenue ratio* ► Cost: net revenue ratio Headcount 3,556 3,540 3,685 = 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 305.7 Exceptional items (15.4) Net fair value movement arising from AFS financial assets 7.6 Exchange differences on translation of foreign operations after hedging (12.4) Tax (49.7) Own shares purchased (40
Slide 22: Group capital allocation
Group capital allocation Increase of £72 million since 31 December 2014 £m FY 2014 H1 2015 Regulatory capital 673 695 Other operating capital 284 116 Investment capital* 725 957 Seed capital 163 154 Other** 693 688 Statutory Group capital 2,538 2,610 * Includes RWC Partners Limited and Schroder Vent
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