Corporate slide deck. For global use March Marketing material for professional investors and advisers only

Transcription

1 Corporate slide deck For global use March 2018 Marketing material for professional investors and advisers only

2 About Schroders

3 Corporate snapshot Assets under management and administration billion 4,600+ employees Operating in 29 countries across Europe, the Americas, Asia, Middle East and Africa Our environmental social and governance principles are the foundation of our philosophy 1,014+ Company engagements on ESG globally in 2017 Over 200 years experience of investment markets Asset management is our only business and our goals are completely aligned with those of our clients the creation of long-term value to assist them in meeting their future financial requirements. We have responsibility for 447.0bn ( 503.6bn/$604.7bn) on behalf of institutional and retail investors, financial institutions and high net worth clients from around the world, invested across equities, fixed income, multi-asset, alternatives and real estate. Rated Excellent by Fitch Ratings 1 Source: Schroders, as at 31 December Fitch Ratings, as at 10 July

4 Our history The Schroder family and related trusts control over 47% of the voting shares 1700s and 1800s 1900s Christian Matthias Schröder sets up a firm of merchants in Hamburg Christian Matthias Schröder s son, Johann Friedrich Schröder moves to London to set up a firm Johann Heinrich Schröder goes into partnership with his brother and the firm begins to specialise in providing commercial credit Johann Heinrich Schröder sets up his own merchant banking firm, J. Henry Schröder & Co First bond issued, to finance a railway in Cuba J. Henry Schroder Banking Corporation opens in New York An investment department is created in London Schroders becomes a publicly quoted company, listed on the London Stock Exchange Schroders starts to acquire a presence in each of the major financial markets in the world Acquisition of Helbert, Wagg & Co, a longestablished London firm with a strong corporate finance department Asset management and related businesses becomes Schroders sole activity following the sale of the investment bank Schroders celebrates its 200th anniversary Schroders establishes a joint venture fund management company in China with the Bank of Communications (BOCOM) Acquisition of NewFinance Capital, a London-based manager of funds of hedge funds Acquisition of Aareal Asset Management GmbH, a property asset manager based in Germany. Expanded presence in the Middle East with the opening of an office in Dubai Acquisition of Swiss Re Asset Management Funds and the Singapore-based private client advisory unit of Commonwealth Bank of Australia Acquisition of 49% of the share capital of RWC Partners Ltd Acquisition of 25% of Axis Asset Management Company, the Indian asset management business of Axis Bank Acquisition of Cazenove Capital Holdings, a leading UK private wealth manager. Acquisition of STW Fixed Income Management, a US fixed income firm. Acquisition of 30% of Secquaero, an Insurance Linked Securities business in Switzerland Acquisition of 11.9% of Nutmeg Saving & Investment Ltd, a UK specialist online discretionary investment manager Stake in Secquaero increased to 50.1%. Acquisition of 12.5% stake in Safe Harbor, a small Bermudian-based annuity reinsurer. Acquisition of asset-backed securities (ABS) and mortgage-backed securities (MBS) teams of Brookfield Investment Management Inc.. Entered into a strategic relationship with Hartford Funds, a leading US-based asset management company focused on serving US financial advisors. Acquisition of C. Hoare & Co s wealth management business Acquisition of Adveq private equity solutions. Source: Schroders, as at 31 December Investment in Benchmark Capital - a technology-led, high-quality UK adviser support business. 3

5 Global presence Global investment resource: over 700 investment professionals worldwide The Americas Argentina Bermuda Brazil Chile Mexico United States UK and Channel Islands Guernsey Jersey United Kingdom Asia and Australasia Australia China Hong Kong Indonesia Japan Republic of Korea Singapore Taiwan Europe, Middle East and Africa Denmark France Germany Gibraltar Italy Luxembourg Netherlands South Africa Spain Sweden Switzerland United Arab Emirates Investment centres Wealth Management Source: Schroders, as at 31 December

6 Total AUM by channel, region and product Assets under management billion By channel By region* By product 10% 15% 8% 10% 31% 59% 24% 39% 23% 41% 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 Source: Schroders, as at 31 December * By client domicile. 5

7 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 Source: Schroders, as at 31 December

8 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 Source: Schroders, as at 31 December *By client domicile. 7

9 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% Source: Schroders, by region and product as at 31 December

10 28,3 36,2 41,9 52,9 53,1 57,6 63,8 74,0 83,4 87,6 104,9 106,9 116,7 118,8 132,0 142,7 143,6 132,5 122,6 110,0 102,7 88,3 90,4 98,3 100,0 105,6 112,1 122,5 122,3 128,5 137,6 139,1 130,2 110,2 113,3 148,4 164,0 196,7 204,8 187,3 194,6 212,0 235,7 262,9 271,5 300,0 309,9 313,5 343,8 386,0 406,9 435,8 Stable growth Total assets under management billion (as at 31 December 2017) billion June December Source: Schroders, as at 31 December

11 Our investment philosophy

12 Our investment philosophy drives our process Belief As an active manager we believe in the potential to generate competitive returns from independent fundamental research Capability Our equity and credit analysts evaluate companies from many perspectives, focusing on a business potential for long-term value creation and earnings power, and its ability to service debts Extensive research resources focused on: Long term: to exploit short-term volatility Bottom-up: macro-economic dynamics embedded in stock research Value creation: cash flow, balance sheet, return on equity over earnings momentum These characteristics stem from our approach: Long term: low turnover, patient No style bias: emphasis on quality and potential earnings power Contrarian: in the use of market over-reaction Stock selection is key: stock contribution primary, sector secondary Source: Schroders, 31 December

13 Sustainability at Schroders Our experience and expertise 20years + ESG integration 12 Dedicated ESG specialists With 110years+ 1,014 engagements in 2017 Across 50 Countries globally With 5,378 Company meetings voted on A+ UN PRI annual assessment 2 # ShareAction Responsible Investment Survey of European asset managers 3 Top AODP Global Climate Index 4 Combined investment experience 46.6bn Ethically screened mandates (10.7% of total assets 1 ) Tier 1signatory UK Stewardship Code 5 Source: Schroders, as at 31 December 2017 unless otherwise stated. 1 Assets under management. 2 RI, 2015, 2016 and 2017 Assessment Reports. 3 ShareAction, "Lifting the Lid: Responsible Investment Performance of European Asset Managers", March Asset Owners Disclosure Project, "Global Climate Index 2017, April Financial Reporting Council 2016 Assessment 12

14 Fund range

15 Equities Fund range UK and Luxembourg Investment focus Global Europe UK US Asia Pacific Emerging Markets Benchmark relative Portfolios are constructed and risk is expressed with reference to their benchmark Global Equity QEP Global Core 2 EURO Equity European Equity (Ex UK) European Large Cap Italian Equity Swiss Equity Core UK Equity 1 US Large Cap Asia Pacific ex-japan UK Equity 2 China A Japanese Equity Tokyo 1 BRIC (Brazil, Russia, India, China) Emerging Europe Emerging Markets Emerging Markets Equity Alpha Frontier Markets Equity Global Emerging Markets 1 Latin American Middle East Benchmark unconstrained Portfolios are constructed to outperform a benchmark but with the freedom to invest without any benchmark related constraints Global Alpha Plus 1 Global Cities Real Estate 1 Global Climate Change Equity Global Energy Global Equity Alpha Global Healthcare 1 Global Multi-Factor Equity 1 Global Recovery 2 Global Sustainable Growth QEP Global Active Value 2 QEP Global Blend 2 QEP Global ESG QEP Global Quality QEP Global Value Plus European 1 European Alpha Focus European Value 1 European Opportunities 2 European Special Situations Swiss Equity Opportunities Recovery 1 Asian Alpha UK Alpha Plus 1 Plus1 SAS Asian Long UK Opportunities 2 Term Value Fund 4 * Asian Opportunities Asia Pacific Property Securities China Opportunities Greater China Hong Kong Equity Indian Equity Japanese Opportunities Korean Equity Taiwanese Equity Emerging Asia Indian Opportunities QEP Global Emerging Markets 2 - All funds are part of the Luxembourg domiciled Schroder ISF (International Selection Fund) fund range, unless specified otherwise. [Source: Schroders, as at 31 December 2017] - 1 UK fund; 2 UK and Luxembourg fund; 3 Schroder GAIA fund range; 4 Schroder AS (Alternative Solutions) fund range; 5 Schroder SSF (Special Situations Fund) fund range; 6 Schroder IF (Investment Fund) fund range; *Only suitable for countries where the fund is registered 14

16 Equities Fund range UK and Luxembourg Investment focus Global Europe UK US Asia Pacific Emerging Markets Yield Portfolios aiming to provide a return primarily through investment in equity and equity related securities of companies that offer attractive yields and sustainable dividend payments Global Dividend Maximiser Global Equity Income 1 Global Equity Yield Global Real Estate IMAX 1 European Alpha Income 1 European Dividend Maximiser European Equity Yield Income 1 US Equity Income Income Maximiser 1 Maximiser 1 UK Alpha Income 1 Asian Dividend Maximiser Asian Equity Yield Asian Income 1 Asian Income Maximiser 1 Small cap Portfolios aiming to provide capital growth primarily through investment in equity securities of smaller companies Global Smaller Companies European Smaller Companies 2 Swiss Small and Mid-Cap Equity UK Dynamic Smaller Companies 1 UK Mid UK Smaller Companies 1 US Smaller Companies 2 US Small and Mid-Cap Equity US Mid Cap 1 Asian Smaller Companies Japanese Smaller Companies Global Emerging Markets Smaller Companies Small Cap Discovery 1 Total return (a.k.a. variable beta) portfolios which vary market exposure at points in the economic cycle to reduce downside risk. Typical time horizon is 3 years, beta may vary between 0 and 1 GAIA Contour Tech Equity 3 GAIA Egerton Equity 3 European Total Return GAIA Sirios US Equity 3 Asian Total Return GAIA Indus PacifiChoice 3 Global Emerging Market Opportunities Absolute return Portfolios are managed with an objective of generating a positive return over rolling 12 month periods QEP Global Absolute European Alpha Absolute Return European Equity Absolute Return Absolute UK Dynamic 2 - All funds are part of the Luxembourg domiciled Schroder ISF (International Selection Fund) fund range, unless specified otherwise. [Source: Schroders, as at 31 December 2017] - 1 UK fund; 2 UK and Luxembourg fund; 3 Schroder GAIA fund range; 4 Schroder AS (Alternative Solutions) fund range; 5 Schroder SSF (Special Situations Fund) fund range; 6 Schroder IF (Investment Fund) fund range; *Only suitable for countries where the fund is registered 15

17 Fixed income and Currencies Fund range UK and Luxembourg Investment focus Global/Emerging Europe UK US Asia Pacific Liquidity Portfolios are invested in cash and short-dated instruments EURO Liquidity US Dollar Liquidity Benchmark relative Portfolios are constructed and risk is expressed with reference to their benchmark Emerging Market Bond Emerging Market Corporate Bond Global Bond Global Convertible Bond Global Conservative Convertible Bond Global Corporate Bond Global High Income Bond Global High Yield EURO Bond EURO Corporate Bond EURO Government Bond EURO Short Term Bond Gilt and Fixed Interest 1 US Long Duration US Dollar Bond UK Corporate Bond 1 Credit 1 Asian Convertible Bond Asian Local Currency Bond Hong Kong Dollar Bond RMB Fixed Income Benchmark unconstrained Portfolios are constructed to outperform a benchmark but with the freedom to invest without any benchmark related constraints SSSF Fixed Maturity Bond 2021 (II) 5 Global Credit Duration Hedged Global Credit Income Global Credit Value Global Unconstrained Bond Strategic Bond 2 Strategic Credit 2 Global Multi-Credit Securitised Credit EURO Credit Conviction EURO High Yield High Yield Opportunities 1 Real return Portfolios aimed at offering protection from inflation or inflation shocks Global Inflation Linked Bond Absolute return Portfolios are managed with an objective of generating a positive return over rolling 12 month periods Absolute Return Bond 1 Emerging Markets Debt Absolute Return EURO Credit Absolute Return Asian Bond Absolute Return - All funds are part of the Luxembourg domiciled Schroder ISF (International Selection Fund) fund range, unless specified otherwise. [Source: Schroders, as at 31 December 2017] - 1 UK fund; 2 UK and Luxembourg fund; 3 Schroder GAIA fund range; 4 Schroder AS (Alternative Solutions) fund range; 5 Schroder SSF (Special Situations Fund) fund range; 6 Schroder IF (Investment Fund) fund range; *Only suitable for countries where the fund is registered 16

18 Multi-Asset Fund range UK and Luxembourg Investment focus Global UK Asia Pacific Emerging Markets Benchmark relative Portfolios are constructed and risk is expressed with reference to their benchmark Managed Balanced 1 Multi-Manager UK Multi-Manager International 1 Growth 1 Income Portfolios designed with a primary, but not necessarily exclusive, focus on delivering an income stream to clients Global Multi-Asset Income 2 Managed Monthly High Income 1 Multi-Manager Diversity 2 Multi-Manager Diversity Balanced 1 Multi-Manager Diversity Income 1 Multi-Manager Diversity Tactical 1 Flexible Retirement Fund 1 Emerging Multi-Asset Income Real Return Portfolios aimed at offering protection from inflation or inflation shocks Wealth Preservation Total return lower risk Portfolios which vary market exposure at points in the economic cycle to reduce downside risk. Typical time horizon is 3 years Global Conservative Global Dynamic Balanced Multi-Asset Total Return 2 Total return higher risk Growth Portfolios which vary market exposure. Typical time horizons 5 years Cash plus Portfolios are managed with an objective of generating a positive return over the short to medium term Global Diversified Growth 2 Global Multi-Asset Flexible Strategic Beta 10 GAIA BlueTrend 3 GAIA II NGA Turnaround 3 * GAIA Two Sigma Diversified 3 Multi-Asset Strategies Global Target Return Japan DGF - All funds are part of the Luxembourg domiciled Schroder ISF (International Selection Fund) fund range, unless specified otherwise. [Source: Schroders, as at 31 December 2017] - 1 UK fund; 2 UK and Luxembourg fund; 3 Schroder GAIA fund range; 4 Schroder AS (Alternative Solutions) fund range; 5 Schroder SSF (Special Situations Fund) fund range; 6 Schroder IF (Investment Fund) fund range; *Only suitable for countries where the fund is registered 17

19 Alternatives Fund range Luxembourg Investment focus Commodities benchmark unconstrained Portfolios are constructed to outperform a benchmark but with the freedom to invest without any benchmark related constraints Global Schroder AS Agriculture Fund 4 * Schroder AS Commodity Fund 4 * Schroder AS Commodity Total Return Fund 4 * ILS (Insurance-linked securities) Portfolios invest in (ILS) with a focus on natural catastrophe risks Merger arbitrage Portfolios invest in companies that are involved in mergers and other corporate events GAIA Cat Bond 3 Schroder IF Core Insurance Linked Securities 6 * Schroder IF Diversified Completion 6 * Schroder IF Flexible Cat Bond 6 * Schroder IF Life Insurance Linked I 6 * GAIA Paulson Merger Arbitrage 3 - All funds are part of the Luxembourg domiciled Schroder ISF (International Selection Fund) fund range, unless specified otherwise. [Source: Schroders, as at 31 December 2017] - 1 UK fund; 2 UK and Luxembourg fund; 3 Schroder GAIA fund range; 4 Schroder AS (Alternative Solutions) fund range; 5 Schroder SSF (Special Situations Fund) fund range; 6 Schroder IF (Investment Fund) fund range; *Only suitable for countries where the fund is registered 18

20 Global marketing resource

21 Global marketing resource Key components Webconferences Broadcasts Client Conferences and industry events E-marketing DIGITAL Fund literature, thought leadership publications and educational documents OFFLINE Journalist meetings Regional and global websites Social media Hardcopy mailings Source: Schroders, December

22 Schroders Core principles Solidity and heritage Global and local Client focus Innovation Investment Stable investment philosophy management team Established in 1804, Schroders has excess group capital, no debt on its balance sheet and was awarded the Excellent' rating 1 by Fitch in recognition of this strong business core. We have an extensive global network of over 700 investment professionals based in 29 countries, providing local market expertise. We work in partnership with our clients to understand their needs and help them to meet their investment objectives. We challenge conventional thinking to develop new opportunities that reflect our clients needs and anticipate new market trends. We employ a longterm and researchdriven investment approach, applied within a robust risk management framework, to seize the best investment opportunities. We have 259 fund managers with an average tenure of nine years. Source: Schroders, as at 31 December Fitch Ratings, as at 10 July

23 Our success

24 Industry recognition Ratings and awards 50 funds with Morningstar Gold, Silver or Bronze ratings 102 funds with a 4 5 star Morningstar rating * 46 fund managers with Citywire ratings 5 FE Alpha rated managers Source: Schroders, Morningstar, Citywire and FE ratings data as at 31 December *Morningstar star ratings using oldest share class and include investment trusts. Fitch Investment Management Quality Rating as at 10 July

25 Position in key markets and share Europe, the Middle East and Africa United Kingdom Asia and Japan Americas Opened first office in Europe in 1960 Present in 14 countries in these regions Manage 98.0 billion on behalf of EMEA clients Managing investments in UK since 1924 Manage billion on behalf of UK clients Presence in 8 countries in the region Manage billion on behalf of Asian clients Schroders has almost 40 years' investment expertise in Asia Pacific, and now employs over 900 staff in the region Present in US since 1923 Presence in 6 countries in the region Manage 63.3 billion on behalf of institutional and retail investors in the Americas Source: Schroders, as at 31 December

26 Important information This presentation is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the presentation when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Schroders has expressed its own views in this presentation and these may change. Issued by Schroder Investment Management Ltd., 31, Gresham Street, London EC2V 7QA, who is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. 25

27 Contact Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. schroders.com