Schroders plc (SDR) Q4 2021 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Welcome to the Schroders 2021 full year results. We've got a lot of people online today, so we're going to try and mix it up between the room and online. But what I'm going to start, normal format, I will take you through big picture flows, Richard will take you through the financial numbers, and then we'll do Q&A both in the room and online. So just starting with the high-level numbers, you've seen these. Top line grew 18%, profit before exceptionals up strongly, cost-income ratio down slightly, number we're proud of 35.3 billion of new flows. But importantly, the underlying drivers of this, strong performance in our private assets business, strong performance in wealth business, but also good organic growth coming through from our traditional core business. And I think We'll talk more about that. But the investments we've made over the last five years really started to come through across the business in terms of decent organic growth. Getting into the detail, we are nothing without being able to produce strong returns as an active manager. We were very pleased. Our three-year performance number last time we got together a year ago was 74%. Today it's 79% of funds outperforming over three years. But what that actually means in practice, I've taken here the top 25 funds across our fund range. Over five years, these funds have outperformed their index by 16.1% net of fees. So as an active manager, the importance of making money for clients is absolutely central. And I think that's a good way of demonstrating what that 79% means to people at the end of the day in their funds. Assets under management reached a new high of £732 billion. I've put on the right-hand side the mix of revenues across the business. Clearly, when you've got a compound gr...