Schroders Plc · LSE:SDR
Schroders — H1 2021 Earnings Presentation
22 slides from Schroders's earnings presentation, Jul 29, 2021
Slide 1: Schroders 2021 Half Year Results Data Pack
Schroders 2021 Half Year Results Data Pack 29 July 2021
Slide 2: Contents
Contents Page Assets under management (AUM) 2-3 AUM by business area, region and product 4 Gross and net flows excl. JVs and Associates 5-6 Currency profile of AUM excl. JVs and Associates 7 Asset Management AUM – detailed business area analysis 8-9 Asset Management AUM – detailed asset class analys
Slide 3: Assets under management (AUM)
Assets under management (AUM) £700.4 billion at 30 June 2021 Total excl. Private Assets Mutual Asset Wealth JVs and £bn Solutions Institutional JVs and Group Total & Alternatives Funds Management Management Associates Associates 1 January 2021 46.1 192.3 104.2 159.8 502.4 72.0 574.4 88.6 663.0 Net f
Slide 4: Assets under management (AUM)
Assets under management (AUM) £700.4 billion at 30 June 2021 UK £282.5bn North America1 Continental Europe £89.6bn £102.8bn Middle East and Africa £12.8bn Asia Pacific1 £202.3bn South America £10.4bn 1 JVs and associates AUM comprises of £97bn in Asia Pacific and £1bn in North America 3
Slide 5: Total AUM by business area, region and product
Total AUM by business area, region and product Assets under management £700.4 billion By business area By region1 By product 7% 14% 7% 11% 28% 30% 11% 40% 17% 14% 14% 16% 24% 14% 24% 29% Solutions UK Equities Institutional Asia Pacific Multi-asset Mutual Funds Fixed Income JVs and Associates Europe,
Slide 6: Gross flows excl. JVs and Associates
Gross flows excl. JVs and Associates Half-yearly £bn 100 94.0 90.5 80 62.1 60 54.5 42.1 37.8 40 20 0 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management 5
Slide 7: Net flows excl. JVs and Associates
Net flows excl. JVs and Associates Half-yearly £bn 50 38.1 44.6 40 30 20 10.5 10 4.4 0 (10) (1.2) (10.7) (20) H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management 6
Slide 8: Currency profile of AUM excl. JVs and Associates
Currency profile of AUM excl. JVs and Associates Assets under management £602.4 billion 10% GBP 2% 2% 28% USD¹ 2% 3% EUR 3% CNY JPY 9% AUD KRW TWD 13% CHF 28% Other² 1USD includes other currencies pegged to USD, including HKD. 2Includes the following currencies which individually constitute 1% of AU
Slide 9: Asset Management AUM – detailed business area analysis
Asset Management AUM – detailed business area analysis Assets under management £526.1 billion Private Assets & Alternatives Solutions Mutual Funds Institutional £48.2bn £193.6bn £114.8bn £169.5bn Real estate 36% Securitised credit 21% Multi asset 80% Equities 58% 19% Equities 11% Equities 73% Privat
Slide 10: Asset Management AUM – detailed business area analysis
Asset Management AUM – detailed business area analysis Assets under management £526.1 billion Private Assets & Alternatives Solutions Mutual Funds Institutional £48.2bn £193.6bn £114.8bn £169.5bn Europe, Middle East & Africa 53% UK 77% Europe, Middle East & Africa 37% Americas 36% UK Asia Pacific 11
Slide 11: Asset Management AUM – detailed asset class analysis
Asset Management AUM – detailed asset class analysis Assets under management £526.1 billion Equities Multi Asset Fixed Income Private Assets & Alternatives £211.9bn £169.2bn £96.8bn £48.2bn Asia Pacific 25% Real estate Global 21% Risk controlled growth 48% US 25% Securitised credit Emerging markets
Slide 12: Private Assets & Alternatives – gross and net flows
Private Assets & Alternatives – gross and net flows Assets under management £48.2 billion £bn 8 5.9 5.6 6 4.1 3.7 3.6 4 3.2 3.2 2.5 2 1.4 0.9 0 (0.4) (0.4) (2) (1.8) (2.7) (4) (3.2) (3.1) (4.1) (4.0) (6) H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Gross inflows Gross outflows Net flows 11
Slide 13: Solutions – gross and net flows
Solutions – gross and net flows Assets under management £193.6 billion £bn 60 55.8 50 42.7 40.0 40 32.4 30 20 13.0 9.4 10 6.9 6.6 0.2 2.1 0.7 0 (0.4) (10) (4.5) (6.7) (7.6) (9.8) (13.1) (12.3) (20) H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Gross inflows Gross outflows Net flows 12
Slide 14: Mutual Funds – gross and net flows
Mutual Funds – gross and net flows Assets under management £114.8 billion £bn 40 30 27.8 19.3 20.1 18.8 20.2 20 16.4 10 6.4 0.3 1.7 0 (1.8) (4.2) (4.8) (10) (20) (19.8) (18.5) (20.6) (21.1) (21.4) (23.6) (30) H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Gross inflows Gross outflows Net flows 13
Slide 15: Institutional – gross and net flows
Institutional – gross and net flows Assets under management £169.5 billion £bn 20 14.6 15 13.0 11.4 10 9.1 8.0 7.6 5 0.7 1.0 0 (0.7) (5) (2.0) (5.1) (10) (8.6) (11.1) (12.1) (15) (12.7) (12.3) (13.6) (20) (16.6) H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Gross inflows Gross outflows Net flows 1
Slide 16: Wealth Management
Wealth Management Assets under management £76.3 billion Clients by portfolio size Gross and net flows £bn 3% 20 17% 15% 16.9 15 13.8 10% 12% 10 4.4 4.2 4.7 12% 5 3.3 3.4 0.9 1.3 1.0 18% 0.5 0.4 13% 0 <£1m £1m - £5m (2.8) (2.5) (5) (3.1) (3.1) (3.8) (3.7) £5m - £10m £10m - £25m £25m - £50m £50m - £10
Slide 17: Net operating revenue and margins – Asset Management
Net operating revenue and margins – Asset Management Asset Management net operating revenue £930.9 million £m FY 2020 H1 2020 H1 2021 Performance fees - £m 85.8 17.4 31.0 Net carried interest - £m 8.8 1.0 12.3 Net operating revenue (ex performance fees and net carried interest) - £m 1,652.6 801.5 93
Slide 18: Income statement progression – Asset Management
Income statement progression – Asset Management Asset Management profit before tax £m H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Net operating revenue 852.9 910.2 819.9 927.3 974.2 Net gain/(loss) on financial instruments and other income 0.5 (5.9) (4.1) (5.7) 12.0 Share of profit of associates and joi
Slide 19: Income statement progression – Wealth Management
Income statement progression – Wealth Management Wealth Management profit before tax £m H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Net operating revenue 140.4 161.7 180.4 186.5 204.3 Net gain on financial instruments and other income 3.2 3.3 6.6 8.1 10.1 Share of profit of associates and joint ventures
Slide 20: Income statement progression – Group segment
Income statement progression – Group segment Group segment profit/(loss) before tax £m H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Net gain on financial instruments and other income 21.5 19.3 5.7 52.4 34.8 Share of profit of associates 2.5 1.6 - - - Net income 24.0 20.9 5.7 52.4 34.8 Operating expenses
Slide 21: Cost and return metrics
Cost and return metrics Total Schroders Group costs 2020 H1 2020 H1 2021 Total compensation ratio1 45% 45% 46% Total compensation ratio = compensation costs divided by net income2 Headcount 5,571 5,521 5,638 Total costs (£m)1 1,476.9 697.7 837.0 Ratio of total costs to net income = costs divided by
Slide 22: Schroders
Schroders