Slide 1: Half-year results 2018 Data Pack
Half-year results 2018 Data Pack
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
Slide 3: Assets under management and administration (AUMA)
Assets under management and administration (AUMA) £449.4 billion at 30 June 2018 Asset Wealth 2 £bn Institutional Intermediary 1 Total AUM AUA AUMA Management Management 1 January 2018 255.8 134.0 389.8 45.9 435.7 11.3 447.0 Net flows 0.2 (0.2) - 1.2 1.2 Acquisitions and disposals3 1.6 - 1.6 (0.5) 1
Slide 4: Regional diversification of AUM
Regional diversification of AUM* 66% of net operating revenues earned outside UK Continental UK** Europe £172.1bn £84.6bn North America £56.0bn Middle East and Africa £9.8bn Asia Pacific South America £102.7bn £10.5bn * By client domicile. ** A further £13.7bn of assets under administration are loca
Slide 5: Gross sales
Gross sales* Half-yearly £bn 60.0 52.4 52.7 50.9 50.0 41.9 38.9 40.0 30.0 20.0 10.0 0.0 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management * Gross sales and net flows have been represented to separately report information for Pri
Slide 6: Net flows
Net flows* Half-yearly £bn 10.0 8.8 1.2 1.0 5.0 0.1 0.8 0.0 -5.0 -10.0 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management * Gross sales and net flows have been represented to separately report information for Private Assets & Alt
Slide 7: Currency profile of AUM
Currency profile of AUM Assets under management £435.7 billion 10% 2% 2% 2% 32% 4% 5% 5% 13% 25% USD* GBP EUR CNY JPY AUD KRW TWD CHF Other** * USD includes other currencies pegged to USD, including HKD. ** Includes the following currencies which individually constitute 1% of AUM: INR, IDR, SGD, CAD
Slide 8: Currency profile of Asset Management AUM
Currency profile of Asset Management AUM Asset Management AUM £389.3 billion Institutional £257.2bn Intermediary £132.1bn 8% 9% 2% 2% 2% 2% 2% 2% 2% 2% 32% 35% 5% 4% 5% 6% 6% 7% 11% 15% 19% 22% USD* GBP EUR CNY AUD JPY USD* EUR GBP JPY CNY AUD KRW TWD CHF INR Other KRW TWD IDR SGD Other * USD includ
Slide 9: Total AUM by channel, region and product
Total AUM by channel, region and product Assets under management £435.7 billion By channel By region* By product 11% 15% 11% 8% 39% 40% 30% 24% 59% 24% 22% 17% UK Equities Institutional Fixed Income Intermediary Continental Europe, Middle East & Africa Multi-asset Wealth Management Asia Pacific Priv
Slide 10: Asset Management AUM by channel and product
Asset Management AUM by channel and product Assets under management £389.3 billion Institutional AUM £257.2bn Intermediary AUM £132.1bn 10% 8% 15% 38% 33% 56% 21% 19% Equities Fixed Income Multi-asset Private Assets & Alternatives 9
Slide 11: Asset Management AUM by channel and region
Asset Management AUM by channel and region* Assets under management £389.3 billion Institutional AUM £257.2bn Intermediary AUM £132.1bn 11% 20% 26% 38% 27% 26% 16% 36% UK Continental Europe, Middle East & Africa Asia Pacific Americas * By client domicile. 10
Slide 12: Asset Management AUM – detailed asset class analysis
Asset Management AUM – detailed asset class analysis Assets under management £389.3 billion Equities £173.1bn Fixed Income £76.2bn Multi-asset £104.2bn Private Assets & Alternatives £35.8bn Asia Pacific 21% US 33% Risk controlled growth 51% Real estate 38% Global 15% Europe 25% LDI 26% Private equit
Slide 13: Institutional AUM – detailed asset class analysis
Institutional AUM – detailed asset class analysis Assets under management £257.2 billion Equities £99.8bn Fixed Income £47.9bn Multi-asset £83.9bn Private Assets & Alternatives £25.6bn Global 20% US 49% Risk controlled growth 54% Real estate 48% Emerging markets 20% Global 19% LDI 32% Private equity
Slide 14: Intermediary AUM – detailed asset class analysis
Intermediary AUM – detailed asset class analysis Assets under management £132.1 billion Equities £73.3bn Fixed Income £28.3bn Multi-asset £20.3bn Private Assets & Alternatives £10.2bn Asia Pacific 24% Europe 43% Income 48% GAIA 31% Europe 16% Global 25% Securitised credit 30% Risk controlled growth
Slide 15: Institutional – AUM flows
Institutional – AUM flows Assets under management £257.2 billion £bn 30.0 21.0 19.6 18.8 20.0 17.9 15.2 10.0 4.4 2.8 1.4 0.2 0.0 (0.1) (10.0) (13.5) (15.3) (16.0) (20.0) (18.2) (20.8) (30.0) H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Gross inflows Gross outflows Net flows 14
Slide 16: Intermediary – AUM flows
Intermediary – AUM flows Assets under management £132.1 billion £bn 40.0 29.0 27.7 27.9 30.0 24.6 18.8 20.0 10.0 4.6 0.4 0.0 (1.2) (0.2) (3.3) (10.0) (20.0) (22.1) (24.2) (23.1) (30.0) (28.1) (30.2) (40.0) H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Gross inflows Gross outflows Net flows 15
Slide 17: Net operating revenue and margins – Asset Management
Net operating revenue and margins – Asset Management Asset Management net operating revenue £911.1 million £m FY 2017 H1 2017 H1 2018 Performance fees - £m 77.5 13.2 15.8 Carried interest - £m - - 19.6 Performance fees and carried interest on average AUM 2 bps 1 bps 2 bps Net operating revenue (ex p
Slide 18: Income statement progression – Asset Management
Income statement progression Asset Management profit before tax £m H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Institutional 316.1 376.4 372.8 441.2 432.5 Intermediary 371.7 425.3 436.5 492.8 478.6 Net operating revenue 687.8 801.7 809.3 934.0 911.1 Net gains/(losses) on financial instruments and other
Slide 19: Income statement progression – Wealth Management
Income statement progression Wealth Management profit before tax £m H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Net operating revenue 107.1 116.2 130.8 136.1 139.9 Net gains on financial instruments and other income 0.1 0.6 2.9 3.4 3.7 Share of profit of associates and joint ventures - - - 0.1 0.2 Net i
Slide 20: Income statement progression – Group segment
Income statement progression Group segment profit/(loss) before tax £m H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Net gains on financial instruments and other income 14.3 15.6 18.6 16.5 18.8 Share of profit of associates* 3.6 1.2 2.1 0.5 2.0 Net income 17.9 16.8 20.7 17.0 20.8 Operating expenses (14.2)
Slide 21: Cost and return metrics
Cost and return metrics Total Schroders Group costs 2017 H1 2017 H1 2018 Total compensation ratio* 43% 44.0% 43.5% Total compensation ratio = compensation costs divided by net income** Headcount 4,619 4,299 4,861 Total costs (£m)* 1,268.6 612.9 689.0 Ratio of total costs to net income = costs divide
Slide 22: Group Capital
Group Capital £m £m 4,000 4,000 3,471 3,522 3,522 3,500 3,471 3,500 3,000 1,139 917 3,000 1,165 1,090 2,500 2,500 96 580 216 392 2,000 2,000 976 565 944 696 1,500 1,500 149 147 Capital surplus 1,000 1,000 Working capital – 1,311 1,311 Other 500 1,146 1,146 500 Dividend* Working capital – Seed and co
Slide 23: Carried interest illustration
Carried interest Rights to carried interest are earned once a Illustration preferred return to investors has been achieved. Schroders receives all of the return in the “catch-up” phase until total returns are split in Total return accordance with the investor agreement, typically 90/10 in favour of