Presentation title here in Arial 36pt - Schroders · Intermediary historically reported as netted...
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trusted heritage advanced thinking Schroders 2011 Q1 results Data Pack
Transcript of Presentation title here in Arial 36pt - Schroders · Intermediary historically reported as netted...
trusted heritage
advanced thinking
Schroders 2011 Q1 results
Data Pack
Contents Page
Funds under management (FUM) 2
FUM by client domicile 3
Currency profile of FUM 4
FUM diversification 5
Asset Management business flows 10
Income and cost metrics for the Group 14
Net revenue and margins – Asset Management 15
Key performance indicators 16
Income statement progression 22
Balance sheet 25
Group capital allocation 26
Forward-looking statements 27
Funds under management (FUM) £201.4 billion at 31 March 2011
Asset Management
£bn Institutional Intermediary Private Banking Total
31 December 2010 106.4 74.1 16.2 196.7
Net flows 2.8 0.2 0.1 3.1
Investment returns 0.8 0.7 0.1 1.6
31 March 2011 110.0 75.0 16.4 201.4
2
£5.0bn China joint venture
FUM by client domicile
China joint venture funds under management are not reported within Group funds under management
North
America
£21.8bn South
America
£6.4bn
Continental
Europe
£46.7bn
UK
£70.2bn
Asia
Pacific
£52.0bn Middle
East
£4.3bn
By client domicile 3
• £131.2 billion funds under management from clients outside the UK
Currency profile of FUM Funds under management £201.4 billion
4
Total FUM by channel, region and product
37%
8%
55%
Funds under management £201.4 billion
Private Banking
Intermediary Institutional
35%
26%
14%
25%
Asia Pacific
Continental Europe*
UK
Americas
By channel By region
45%
17%
12%
18%
8%
By product
Equities Fixed Income
Alternatives Multi-asset
Private Banking
By client domicile 5
* Including Middle East
Asset Management FUM by channel and product
54%
10%
12%
24%
Intermediary FUM £75.0bn
Multi-asset
Fixed Income Equities
Alternatives
46%
24%
15%
15%
Institutional FUM £110.0bn
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Asset Management FUM by channel and region
36%
25%
19%
20%
Institutional FUM £110.0bn
26%
32%
10%
32%
Intermediary FUM £75.0bn
Asia Pacific
Continental Europe UK
Americas
By client domicile 7
Asset Management FUM analysis
22%
30%
10%
38%
Fixed Income FUM £34.7bn
25%
34%
18%
23%
Equities FUM £91.4bn
Asia Pacific
Continental Europe UK
Americas
By client domicile 8
22%
10%
4%
30%
34%
Asset Management FUM analysis
Commodities
Alternatives FUM £24.9bn
Emerging market debt
Property
Fund of hedge funds
Private equity fund of funds
9
Multi Asset FUM £34.0bn
39%
61%
UK Multi Asset
Other Multi Asset
£bn
Q1 2010 YTD Q1 2011 YTD
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional 9.0 (3.0) 6.0 6.6 (3.8) 2.8
Intermediary (netted) 5.7 (2.4) 3.3 4.1 (3.9) 0.2
Total Asset Management 14.7 (5.4) 9.3 10.7 (7.7) 3.0
Asset Management business flows
£bn
Q1 2010 YTD Q1 2011 YTD
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional 9.0 (3.0) 6.0 6.6 (3.8) 2.8
Intermediary (no-netting) 10.3 (7.0) 3.3 9.3 (9.1) 0.2
Total Asset Management 19.3 (10.0) 9.3 15.9 (12.9) 3.0
Intermediary historically reported as netted flows (same client flows within the same region within the same month)
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8.1 7.76.0
7.3 6.8
5.8 6.7
5.85.3
4.5
1.9 1.5
1.2
4.1
3.1
3.5 2.2
1.8
1.8
1.5
0
2
4
6
8
10
12
14
16
18
20
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Equities Fixed Income Multi-asset Alternatives
Asset Management business flows
Gross Inflows – £bn (No netting)
19.3
18.1
14.8
18.5
15.9
11
Intermediary flows Q1 2011: gross inflows £9.3bn, net inflows £0.2bn
10.810.3
7.7
10.59.3
(7.0)
(9.0)
(6.9)
(8.5) (9.1)
0.2
2.00.8
1.8
3.3
(10)
(5)
0
5
10
15
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
Gross sales Gross outflows Net sales
£bn – sales flows
Gross inflows and outflows before netting. 12
Institutional flows Q1 2011: gross inflows £6.6bn, net inflows £2.8bn
9.0
7.3 7.16.6
8.0
(3.0) (3.5) (3.8)(4.7)
(3.4)
6.0
3.8 3.7 3.32.8
(5)
0
5
10
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
Gross sales Gross outflows Net sales
£bn – sales flows
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Income and cost metrics for the Group
2010 Q1 2011
Total compensation costs: operating revenues 45% 46%
Bonus: pre-bonus Asset Management and
Private Banking profit 40% 40%
Total costs: net revenue ratio 67% 66%
Return on average capital (pre-tax) 24% 23%
Return on average capital (post-tax) 18% 17%
– Total compensation costs: operating revenues = total
Group compensation costs divided by Asset
Management and Private Banking net revenues
– Bonus: pre-bonus Asset Management and Private
Banking profit = total Group bonus divided by pre-
bonus Asset Management and Private Banking profit
before tax
– Total costs: net revenue = total Group costs divided
by net revenue
– Return on average capital (pre-tax) = total Group
profit before tax divided by average capital
– Return on average capital (post-tax) = total Group
profit after tax divided by average capital
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Asset Management net revenue £261.2 million
(Q1 2010: £244.8 million)
Net revenue and margins – Asset Management
Q1 2010 Q1 2011
AM net revenue - £m 244.8 261.2
Average AM FUM - £bn 145.0 182.7
AM net revenue on average AM FUM 67bps 58bps
AM performance fees - £m 27.2 7.8
AM Performance fees on average AM FUM 7bps 2bps
AM costs - £m 160.1 165.3
AM costs on average AM FUM 44bps 36bps
AM operating profit - £m 84.7 95.9
AM operating profit on average AM FUM 23bps 21bps
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Key performance indicators Net revenue margin quarterly progression excluding performance fees
60 6057 58 56
74 74
65
73 72
61 6158 60
57
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
Asset Management Private Banking Combined
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Key performance indicators Total costs
£m
127.2115.2 124.8
138.3 134.4
63.957.4
80.159.167.1
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
Staff costs Non-staff costs
17
172.6 191.1
191.9
218.4
193.5
46% 46%45%
49%
45%
2007 2008 2009 2010 Q1 2011
Key performance indicators Total compensation costs: operating revenues
Total Group compensation costs divided by Asset Management and Private Banking net revenues
2008 and 2009 figures exclude exceptional items
18
Key performance indicators Total costs: net revenue
Total Group costs divided by net revenue
2008 and 2009 figures exclude exceptional items
67%
78%72%
66%64%
2007 2008 2009 2010 Q1 2011
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Key performance indicators Cost: operating revenue
Total Group costs divided by Asset Management and Private Banking net revenue
2008 and 2009 figures exclude exceptional items
70%
79%73%
66%71%
2007 2008 2009 2010 Q1 2011
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Key performance indicators Headcount
2,793
2,7222,7222,662
2,608
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
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Asset Management profit before tax
£m Q1
2010
Q2
2010 Q3 2010 Q4 2010 Q1 2011
Net revenue 244.8 232.0 232.7 286.7 261.2
Costs (160.1) (146.5) (149.6) (173.6) (165.3)
JVs and associates 3.3 1.9 2.0 4.0 1.6
Net finance income/(charge) 0.9 1.0 0.8 0.7 (0.2)
Asset Management profit 88.9 88.4 85.9 117.8 97.3
Income statement progression
22
Private Banking profit before tax
£m Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Net revenue 24.3 25.6 24.0 29.4 30.1
Costs (23.0) (20.3) (21.1) (28.8) (23.4)
Private Banking profit 1.3 5.3 2.9 0.6 6.7
Income statement progression
23
Group segment profit/(loss) before tax
£m Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Net revenue 5.0 4.1 23.7 19.0 (0.7)
Costs (6.6) (5.7) (19.8) (14.6) (3.4)
JVs and associates* 3.5 1.6 0.4 (1.2) (0.6)
Net finance income 1.1 1.3 1.4 2.6 4.5
Group profit/(loss) 3.0 1.3 5.7 5.8 (0.2)
Income statement progression
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* Comprised of Schroder Ventures Investment Limited only
Balance sheet
£m 31 Dec 2010 31 Mar 2011
Intangible assets including goodwill 142.5 140.7
Other non-current assets 828.4 833.8
Current assets 4,129.6 4,347.5
Assets backing unit-linked liabilities 8,273.4 8,383.8
Total assets 13,373.9 13,705.8
Non-current liabilities 553.9 530.2
Current liabilities 2,746.9 2,950.4
Unit-linked liabilities 8,273.4 8,383.8
Total liabilities 11,574.2 11,864.4
Net Assets 1,799.7 1,841.4
Total equity* 1,799.7 1,841.4
*Includes non-controlling interests Mar 2011 £3.2m (Dec 2010 £3.2m) 25
Group capital allocation
£m 31 Mar 2011 31 Dec 2010
Investment capital* 757 774
Asset Management & Private Banking
operational capital 906 864
Other (intangibles etc.) 178 162
Statutory Group capital 1,841 1,800
* Not included in FUM
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Forward-looking statements
These presentation slides may contain forward-looking statements with respect to the financial
condition, results of operations and businesses of the Schroders Group.
These statements and forecasts involve risk and uncertainty because they are based on current
expectations and assumptions but they relate to events and depend upon circumstances in the
future. Without limitation, any statements preceded or followed by or that include the words ‘targets,
‘plans’, ‘believes’, ‘expects’, ‘aims’ or ‘anticipates’ or the negative of these terms and other similar
terms are intended to identify such forward-looking statements.
There are a number of factors that could cause actual results or developments to differ materially
from those expressed or implied by forward-looking statements and forecasts. Forward-looking
statements and forecasts are based on the Directors’ current view and information known to them at
the date of this presentation. The Directors do not make any undertaking to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
Nothing in this presentation should be construed as a profit forecast.
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