Annual Results 2017 Data pack

Transcription

1 Annual Results 2017 Data pack

2 Contents Asset under management and administration (AUMA) 2 Regional diversification of AUM 3 Gross sales and net flows 4-7 Currency profile of AUM 8-9 AUM diversification Asset Management AUM detailed asset class analysis Asset Management AUM flows Net operating revenue and margins Asset Management 18 Income statement progression Cost and return metrics 22 Group capital 23 Page Nothing in this presentation should be construed as a forecast, estimate or projection of future financial performance. 1

3 Assets under management and administration (AUMA) billion at 31 December 2017 bn Institutional Intermediary Asset Management Wealth Management 1 Total AUM AUA 2 AUMA 3 1 January Net flows Acquisitions Investment returns December Wealth Management flows exclude income drawdowns included within investment returns. 2 Assets under administration (AUA) has been restated to exclude assets from which we only derive transactional non-recurring revenues. 3 Assets under management and administration comprise assets managed or advised on behalf of clients (assets under management) and assets where Schroders solely provides administrative support through the Benchmark Capital business (AUA). 4 Institutional acquisition within Asset Management relates to the purchase of Adveq Holding AG. Wealth Management acquisition relates to the purchase of the wealth management business of C. Hoare & Co. 2

4 Regional diversification of AUM* 65% of net operating revenues earned outside UK North America 53.6bn South America 9.6bn UK** 170.7bn Middle East and Africa 11.3bn Continental Europe 86.7bn Asia Pacific 103.8bn * By client domicile. **A further 11.3bn of assets under administration are located in the UK. 3

5 Gross sales* Half-yearly bn H H H H H H 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 & Alternatives. 4

6 Gross sales Annually bn Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management 5

7 Net flows Half-yearly bn H H H H H H Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management 6

8 Net flows Annually bn (5.0) (10.0) Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management 7

9 Currency profile of AUM Assets under management billion 11% 4% 2% 2%2% 31% 5% 5% 12% 26% USD* GBP EUR JPY CNY AUD KRW TWD CHF Other** * USD includes other currencies pegged to USD, including HKD. ** Includes the following currencies which individually constitute 1% of AUM: IDR, INR, SGD, CAD, BRL, RUB, SEK. 8

10 Currency profile of Asset Management AUM Asset Management AUM billion Institutional 255.8bn Intermediary 134.0bn 3% 2%2% 5% 10% 34% 2% 2% 2%2% 4% 10% 32% 5% 5% 5% 7% 11% 23% 16% 18% USD* GBP EUR CNY AUD JPY KRW TWD CHF Other USD* EUR GBP JPY CNY AUD IDR KRW TWD SGD Other * USD includes other currencies pegged to USD, including HKD. 9

11 Total AUM by channel, region and product Assets under management billion By channel By region* By product 10% 15% 10% 8% 39% 41% 31% 59% 24% 23% 22% 18% Institutional Intermediary Wealth Management UK Continental Europe, Middle East & Africa Asia Pacific Americas Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management * By client domicile. 10

12 Asset Management AUM by channel and product Assets under management billion Institutional AUM 255.8bn Intermediary AUM 134.0bn 9% 7% 15% 31% 41% 56% 22% 19% Equities Fixed Income Multi-asset Private Assets & Alternatives 11

13 Asset Management AUM by channel and region* Assets under management billion Institutional AUM 255.8bn Intermediary AUM 134.0bn 19% 10% 26% 38% 27% 26% 17% 37% UK Continental Europe, Middle East & Africa Asia Pacific Americas * By client domicile. 12

14 Asset Management AUM detailed asset class analysis Assets under management billion Equities 179.6bn Fixed Income 78.1bn Multi-asset 98.8bn Private Assets & Alternatives 33.3bn Asia Pacific Global Emerging markets Quantitative equities Europe UK Japan US Australia Other 20% 14% 14% 14% 11% 11% 6% 5% 4% 1% US Europe Global Asia Pacific UK Australia Emerging market bonds Convertibles 33% 25% 21% 7% 6% 4% 2% 2% Risk controlled growth LDI UK traditional balanced Income Risk mitigation Inflation protection Wealth preservation 38% 25% 16% 10% 5% 5% 1% Real estate Private equity Securitised Credit GAIA EMD Absolute Return Insurance-linked Infrastructure Finance Commodities 36% 20% 14% 10% 8% 6% 3% 3% 13

15 Institutional AUM detailed asset class analysis Assets under management billion Equities 104.7bn Fixed Income 48.9bn Multi-asset 78.8bn Private Assets & Alternatives 23.4bn Quantitative equities Global Emerging markets Asia Pacific UK Europe Australia Japan US 20% 19% 18% 17% 9% 8% 4% 3% 2% US Global Europe UK Asia Pacific Australia Emerging market bonds Convertibles 48% 19% 13% 8% 7% 3% 1% 1% Risk controlled growth LDI UK traditional balanced Risk mitigation Inflation protection Wealth preservation 38% 31% 20% 6% 4% 1% Real estate Private equity Securitised Credit EMD Absolute Return Infrastructure Finance Insurance-linked Commodities GAIA 44% 29% 8% 7% 5% 4% 2% 1% 14

16 Intermediary AUM detailed asset class analysis Assets under management billion Equities 74.9bn Fixed Income 29.2bn Multi-asset 20.0bn Private Assets & Alternatives 9.9bn Asia Pacific Europe UK Japan US Emerging markets Global Quantitative equities Australia Other 24% 16% 13% 10% 9% 9% 8% 5% 3% 3% Europe Global Asia Pacific Australia US Emerging market bonds Convertibles UK 43% 25% 8% 7% 6% 4% 4% 3% Income Risk controlled growth Inflation protection Risk mitigation 49% 39% 6% 6% GAIA Securitised Credit Real estate EMD Absolute Return Insurance-linked Commodities 30% 29% 16% 12% 10% 3% 15

17 Institutional AUM flows Assets under management billion bn (5.0) (0.1) (10.0) (15.0) (20.0) (25.0) (10.1) (13.1) (13.5) (15.3) (16.0) (18.2) H H H H H H Gross inflows Gross outflows Net flows 16

18 Intermediary AUM flows Assets under management billion bn (10.0) 4.8 (0.5) (3.3) 0.4 (1.2) 4.6 (20.0) (30.0) (40.0) (18.5) (23.8) (22.1) (24.2) (23.1) (30.2) H H H H H H Gross inflows Gross outflows Net flows 17

19 Net operating revenue and margins Asset Management Asset Management net operating revenue 1,743.3 million m Performance fees - m Performance fees on average AUM 1 bp 2 bps Net operating revenue (ex performance fees ) - m 1, ,665.8 Net operating revenue (ex performance fees ) on average AUM 46 bps 45 bps Net income* - m 1, ,757.9 Operating expenses* - m ,052.0 Profit before tax* - m * Excludes exceptional items. 18

20 Income statement progression Asset Management profit before tax m Institutional Intermediary Net operating revenue 1, , ,743.3 Net gains/(losses) on financial instruments and other income (6.2) Share of profit of associates and joint ventures Net income 1, , ,757.9 Operating expenses (872.0) (962.0) (1,052.0) Asset Management profit before exceptional items Exceptional items (12.1) (18.5) (17.2) Asset Management profit after exceptional items

21 Income statement progression Wealth Management profit before tax m Net operating revenue Net (losses)/gains on financial instruments and other income (0.1) Share of profit of associates and joint ventures Net income Operating expenses (145.9) (157.6) (183.0) Wealth Management profit before exceptional items Exceptional items (0.8) (10.1) (22.9) Wealth Management profit after exceptional items

22 Income statement progression Group segment profit before tax m Net gains on financial instruments and other income Share of profit of associates* Net income Operating expenses (30.9) (28.8) (33.6) Group segment profit before exceptional items Exceptional items (7.8) Group segment profit after exceptional items * Comprises RWC Partners Limited and Schroder Ventures Investments Limited associates. 21

23 Cost and return metrics Total Schroders Group costs Total compensation ratio* 44% 44% 43% Headcount 3,784 4,145 4,619 Total costs ( m)* 1, , ,268.6 Ratio of total costs to net income* 63% 64% 61% Total compensation ratio = compensation costs divided by net income** Ratio of total costs to net income = costs divided by net income * Excludes exceptional items. ** Costs and income are subject to adjustments by the remuneration committee. 22

24 Group Capital Increase of 318m in the year ended 31 December 2017 m 4,000 3,471 3,471 3,500 3,153 3,153 3,000 1,165 1, ,500 1, , , Capital Surplus 147 1, m 4,000 3,500 3,000 2,500 2,000 1,500 1,000 Working Capital Other Final Dividend* Overall regulatory capital requirement Other Items** December 2016 Capital Base 1, December December , December 2017 Capital Allocation Working Capital Seed and co-investment Investment Capital Liquid Investment Capital Illiquid*** Other Items** * 2017 final dividend proposed. ** Comprises goodwill, intangible assets, pension scheme surplus, other associates and joint ventures, and deferred tax. *** Includes RWC Partners Limited and Schroder Ventures Investment Limited associates. 23