annual results 2018 - schroders...£165.6bn regional diversification of aum1 66% of net operating...

Annual results 2018 Data pack

Contents

Nothing in this presentation should be construed as a forecast, estimate or projection of future financial performance.

Page

Asset under management and administration (AUMA) 2

Regional diversification of AUM 3

Gross and net flows 4-7

Currency profile of AUM 8-9

AUM diversification 10-12

Asset Management AUM – detailed asset class analysis 13-15

Asset Management gross and net flows 16-17

Wealth Management assets under management 18

Net operating revenue and margins – Asset Management 19

Income statement progression 20-22

Cost and return metrics 23

Group capital 24

Assets under management and administration (AUMA) £421.4 billion at 31 December 2018

1 Assets under management and administration comprise assets managed or advised on behalf of clients (assets under management or AUM) and assets where Schroders solely provides administrative support through the Benchmark Capital business (assets under administration or AUA). 2 The acquisition within Asset Management relates to the purchase of Algonquin Management Partners S.A.

£bn Institutional IntermediaryAsset

ManagementWealth

ManagementTotal AUM AUA AUMA1

1 January 2018 255.8 134.0 389.8 45.9 435.7 11.3 447.0

Net flows (6.6) (4.6) (11.2) 1.7 (9.5)

Acquisitions or disposals2 1.6 - 1.6 (1.0) 0.6

Investment returns (8.5) (8.2) (16.7) (2.9) (19.6)

31 December 2018 242.3 121.2 363.5 43.7 407.2 14.2 421.4

2 Data pack 2018

£165.6bn

Regional diversification of AUM1

66% of net operating revenues earned outside UK

1 By client domicile. 2 A further £14.2bn of assets under administration are located in the UK.

Continental Europe UK2

North America

Middle East and Africa

Asia Pacific

South America

£78.7bn

£9.0bn

£54.0bn

£8.2bn

£91.7bn

3 Data pack 2018

Gross flows

Half-yearly

38.9 41.9

52.4 50.9 52.7

37.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018

£bn

Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management

4 Data pack 2018

Gross flows Annually

80.8

103.3

90.5

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2016 2017 2018

£bn


5 Data pack 2018

Net flows Half-yearly

1.0 0.1

0.8

8.8 1.2

(10.7)(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018

£bn


6 Data pack 2018

Net flows Annually

1.1 9.6

(9.5)(20.0)

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

2016 2017 2018

£bn


7 Data pack 2018

Currency profile of AUM Assets under management £407.2 billion

1 USD includes other currencies pegged to USD, including HKD. 2 Includes the following currencies which individually constitute 1% of AUM: IDR, INR, SGD, BRL, CAD, SEK.

31%

26%

13%

6%

5%

4%2%

2%2%

9%

USD GBP EUR CNY JPY AUD KRW CHF TWD Other1 2

8 Data pack 2018

Currency profile of Asset Management AUM Asset Management AUM £363.5 billion

1 USD includes other currencies pegged to USD, including HKD.

Institutional £242.3bn Intermediary £121.2bn

32%

24%11%

6%

5%

5%

2%2%

2%2%

9%

USD GBP EUR CNY AUD JPY

KRW CHF TWD INR Other

32%

19%15%

7%

6%

4%2%

2%2%

2%9%

USD EUR GBP JPY CNY AUD

IDR SGD KRW TWD Other

1 1

9 Data pack 2018

Total AUM by channel, region and product Assets under management £407.2 billion

1 By client domicile.

By channel By region1 By product

59%30%

11%

Institutional

Intermediary

Wealth Management

40%

23%

22%

15%

UK

Asia Pacific

Europe, Middle East & Africa

Americas

38%

25%

17%

11%

9%

Equities

Multi-asset

Fixed Income

Wealth Management

Private Assets & Alternatives

10 Data pack 2018

Asset Management AUM by channel and product Assets under management £363.5 billion

Institutional AUM £242.3bn Intermediary AUM £121.2bn

37%

34%

18%

11%

53%

15%

23%

9%

Fixed Income Private Assets & Alternatives Equities Multi-asset

11 Data pack 2018

Asset Management AUM by channel and region1

Assets under management £363.5 billion

1 By client domicile.

Institutional AUM £242.3bn Intermediary AUM £121.2bn

UK Asia Pacific Europe, Middle East & Africa Americas

39%

24%

17%

20% 26%

27%

35%

12%

12 Data pack 2018

Asset Management AUM – detailed asset class analysis Assets under management £363.5 billion

Equities £154.7bn

Asia PacificEmerging marketsGlobalQuantitative equitiesEuropeUKJapanUSAustraliaOther

23%16%

1%4%

6%4%

11%

15%12%

8%

USGlobalEuropeAsia PacificUKAustraliaEmerging market bondsCustom Bond BetaConvertibles

Fixed Income £70.3bn

28%23%

3%

7%

3%

7%

22%

5%

2%

Risk controlled growth

LDI

Risk mitigation

Income

Inflation protection

Multi-asset advanced beta

Multi-asset £100.5bn

52%

26%

9%

8%

4%

1%

Real estatePrivate equitySecuritised creditGAIAEmerging market debtInsurance-linkedInfrastructure financeCommodities

Private Assets & Alternatives £38.0bn

37%20%

4%5%

7%9%

16%

2%

13 Data pack 2018

Institutional AUM – detailed asset class analysis Assets under management £242.3 billion

Equities £89.9bn

Emerging marketsGlobalAsia PacificQuantitative equitiesEuropeUKJapanAustraliaUS

21%20%

2%

4%4%8%

17%20%

4%

USGlobalEuropeUKAsia PacificCustom Bond BetaAustraliaEmerging market bondsConvertibles


44%23%

6%

3%

10%8%

1%

4%

1%


LDI

Risk mitigation


Multi-asset advanced beta


53%

4%

32%

10%

1%

Real estate

Private equity

Securitised credit

Emerging market debt

Infrastructure finance

Insurance-linked

Commodities

GAIA


46%27%

1%

5%

6%

10%

4%

1%

14 Data pack 2018

Intermediary AUM – detailed asset class analysis Assets under management £121.2 billion

Equities £64.8bn

Asia PacificEuropeUKEmerging marketsJapanGlobalUSQuantitative equitiesAustraliaOther

26%

12%

3%3%5%

11%9%

8%9%

14%EuropeGlobalAsia PacificAustraliaUSEmerging market bondsUKConvertibles


41%25%

4%4%

6%

6%6%

8%

Income



Risk mitigation


45%

43%

6%

6%

Securitised creditGAIA

Real estateEmerging market debt

Insurance-linkedCommodities


3%

29%33%

14%

12%9%

15 Data pack 2018

Institutional – gross and net flows Assets under management £242.3 billion

17.9 15.2

19.6 18.8 21.0

15.0

(13.5) (15.3)(18.2)

(16.0)

(20.8) (21.8)

4.4

(0.1)

1.4 2.8 0.2

(6.8)

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018

£bn

Gross inflows Gross outflows Net flows

16 Data pack 2018

Intermediary – gross and net flows Assets under management £121.2 billion

18.8 24.6

29.0 27.7 27.9

19.5

(22.1) (24.2)

(30.2)

(23.1)(28.1)

(23.9)

(3.3)

0.4

(1.2)

4.6

(0.2)(4.4)

(40.0)

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018

£bn


17 Data pack 2018

Wealth Management

Gross and net flows Clients by portfolio size

Assets under management £43.7 billion

17%

17%

11%

16%

11%

9%

7%

12%

<£1m £1m - £5m £5m - £10m £10m - £25m

£25m - £50m £50m - £100m £100m - £250m >£250m

(0.1) (0.2)

0.6

1.4 1.2

0.5

2.2 2.1

3.84.4

3.83.3

(2.3) (2.3)

(3.2) (3.0)(2.6) (2.8)

(4.0)

(3.0)

(2.0)

(1.0)

0.0

1.0

2.0

3.0

4.0

5.0

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018

£bn


18 Data pack 2018

Net operating revenue and margins – Asset Management Asset Management net operating revenue £1,788.8 million

1 Excluding exceptional items.

£m

Performance fees - £m

Net Carried interest - £m

Performance fees and carried interest on average AUM

Net operating revenue (ex performance fees and carried interest) - £m

Net operating revenue (ex performance fees and carried interest) on average AUM

Net income - £m

Operating expenses - £m

Profit before tax - £m 705.9 670.8

2017

77.5

2018

26.2

45 bps

(1,052.0)

2 bps

1,665.8

1 bps

1,734.2

45 bps

(1,130.4)

1,757.9 1,801.2

- 28.4

1

1

1

19 Data pack 2018

Income statement progression Asset Management profit before tax

£m

Institutional

Intermediary

Net operating revenue

Net gain/(loss) on financial instruments and other income

Share of profit of associates and joint ventures

Net income

Operating expenses

Asset Management profit before exceptional items

Exceptional items

Asset Management profit after exceptional items

1,757.9

(1,052.0)

20.8

(6.2)

(18.5)

553.9

2016

692.5 814.0

797.0

1,489.5

929.3

1,743.3

705.9

(962.0)

16.7

28.2

572.4

1,534.4

(17.2)

688.7

2017 2018

851.3

937.5

1,788.8

(3.3)

15.7

1,801.2

(1,130.4)

670.8

(82.6)

588.2

20 Data pack 2018

Income statement progression Wealth Management profit before tax

£m

Net operating revenue

Net gain on financial instruments and other income

Share of profit of associates and joint ventures

Net income

Operating expenses

Wealth Management profit before exceptional items

Exceptional items

Wealth Management profit after exceptional items

266.9

224.0

0.7

223.3

68.0 56.3

289.8

(183.0)

(22.9)

90.3

6.3

273.3

67.4

(25.4)

93.4

(196.4)(157.6)

(10.1)

66.4

- 0.1 0.4

20172016

7.5

281.9

2018

21 Data pack 2018

Income statement progression Group segment profit before tax

£m

Net gain on financial instruments and other income

Share of profit of associates

Net income

Operating expenses

Group profit/(loss) before exceptional items

Exceptional items

Group profit/(loss) after exceptional items

2016

(35.9)

(3.0)

(3.3)

(6.3)

2018

29.1

3.8

32.9

7.9 4.1

2.0 -

5.9 4.1

2017

29.9 35.1

4.8 2.6

(28.8) (33.6)

34.7 37.7

22 Data pack 2018

Cost and return metrics Total costs1

1 Excluding exceptional items. 2 Costs and income are subject to adjustments by the Remuneration Committee.

2016 2017 2018

Total compensation ratio1 44% 43% 43%

Headcount 4,145 4,619 5,039

Total costs (£m)1 1,148.4 1,268.6 1,362.7

Ratio of total costs to net income1 64% 61% 64%

Total compensation ratio = compensation costs divided by net income2

Ratio of total costs to net income = total costs divided by net income

23 Data pack 2018

Group Capital Increase of £150m in the year ended 31 December 2018

1,146 1,115

944 1,126

216 216

1,165 1,164

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

31 December2017

31 December2018

£m

Capital Base

Capital surplus

Dividend

Overall regulatorycapital requirement

Other items

1,146 1,115

147 165

696 465

392 535

1,090 1,341

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

31 December2017

31 December2018

£m

Capital Allocation

3,471 3,471 3,621 3,621

Working capital – Other Working capital – Seed and co-investment

Investment capital – Liquid Investment capital – Illiquid

Other items

1 Final dividend proposed for the respective year. 2 Comprises regulatory deductions, principally goodwill, intangible assets, pension scheme surplus, associates and joint ventures, deferred taxation.

1

2 2

24 Data pack 2018

annual results 2018 - schroders...£165.6bn regional diversification of aum1 66% of net operating...

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