Schroders2016 Q3 Results
Data Pack November 2016
Schroders
Contents
1 2016 Q3 Results | 3 November 2016
Nothing in this presentation should be construed as a forecast, estimate or projection of future financial performance
PageAssets under management (AUM) 2Regional diversification of AUM 3Gross sales and net flows 4-5Currency profile of AUM 6-7AUM diversification 8-10Asset Management AUM – detailed asset class analysis 11-13Asset Management AUM flows 14-15Net operating revenue and margins – Asset Management 16Income statement progression 17-19Cost and return metrics 20Group capital allocation 21
Schroders
Assets under management (AUM) £375.0 billion at 30 September 2016
2 2016 Q3 Results | 3 November 2016
* Relates to the acquisition of a securitised credit business in North America.** The weakening of Sterling since 1 January 2016 had the effect of increasing total assets under management by £38.6bn.*** Relates to the transfer of charities assets from Asset Management to Wealth Management.
£bn Institutional Intermediary Asset Management Wealth Management Total
1 January 2016 181.0 100.9 281.9 31.6 313.5
Acquisition of Brookfield* 1.9 1.4 3.3 - 3.3
Net flows 5.4 (2.2) 3.2 (0.5) 2.7
Investment returns** 34.5 17.4 51.9 3.6 55.5
Transfers*** (0.9) - (0.9) 0.9 -
30 September 2016 221.9 117.5 339.4 35.6 375.0
Schroders
Regional diversification of AUM*63% of net operating revenues outside UK
3 2016 Q3 Results | 3 November 2016
* By client domicile
North America£46.4bn
South America£8.3bn
Continental Europe£69.7bn
UK£144.0bn
Asia Pacific £95.9bn
Middle East & Africa£10.7bn
Schroders
Gross sales
4 2016 Q3 Results | 3 November 2016
£bn
23.0
15.6
19.9 21.3
17.9
20.8
0.0
10.0
20.0
30.0
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management
Schroders
Net flows
5 2016 Q3 Results | 3 November 2016
£bn
3.7
(0.5)
4.7
2.7
(2.0)
2.0
(10.0)
(5.0)
0.0
5.0
10.0
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management
Schroders
Currency profile of AUMAssets under management £375.0 billion
6 2016 Q3 Results | 3 November 2016
* Includes the following currencies which individually constitute 1% of AUM: IDR, INR, SGD** USD includes other currencies pegged to USD, including HKD
32%
27%
11%
5%
5%
4%2%
2%2%
10%
USD** GBP EUR AUD JPY CNY TWD KRW CHF Other*
Schroders
USD*GBPEURAUDJPYCNYTWDKRWCHFOther
34%25%10%
2%4%5%7%
2%2%
9%
USD*EURGBPJPYCNYAUDIDRTWDSGDKRWOther
34%18%16%
3%4%5%7%
2%2%2%
7%
Institutional £221.9bn Intermediary £117.5bn
Currency profile of Asset Management AUMAsset Management AUM £339.4 billion
7 2016 Q3 Results | 3 November 2016
* USD includes other currencies pegged to USD, including HKD
Schroders
By channel By region* By product
Total AUM by channel, region and productAssets under management £375.0 billion
8 2016 Q3 Results | 3 November 2016
* By client domicile
59%31%
10%
Institutional
Intermediary
Wealth Management
38%
21%
26%
15%
UKContinental Europe, Middle East & AfricaAsia PacificAmericas
40%
22%
24%
4%
10%
EquitiesFixed IncomeMulti-assetEmerging Market Debt, Commodities & Real EstateWealth Management
Schroders
Institutional AUM £221.9bn Intermediary AUM £117.5bn
Asset Management AUM by channel and product
9 2016 Q3 Results | 3 November 2016
41%
24%
30%
5%
Equities Fixed Income
52%
25%
21%
2%
Multi-asset Emerging Market Debt, Commodities & Real Estate
Schroders
Institutional AUM £221.9bn Intermediary AUM £117.5bn
Asset Management AUM by channel and region*
10 2016 Q3 Results | 3 November 2016
* By client domicile
39%
15%
28%
18%
UK Continental Europe, Middle East & Africa
24%
35%
28%
13%
Asia Pacific Americas
Schroders
Asset Management AUM – detailed asset class analysisAssets under management £339.4 billion
11 2016 Q3 Results | 3 November 2016
Equities £150.7bn
Asia PacificQuantitative equitiesGlobalEmerging marketsUKEuropeJapanUSAustraliaOther
19%16%
1%4%
6%5%
11%
14%13%11%
USGlobalEuropeUKAsia PacificAustraliaConvertiblesInsurance-linked
31%
22%
2%2%
7%5%
7%
24%
Fixed Income £82.2bn
Risk controlled growthLDIUK traditional balancedIncomeInflation protectionRisk mitigationGAIAWealth preservation
23%40%
1%
15%9%
Multi-asset £92.0bn
5%
3%4%
Real estateEmerging market debtAgriculture and commoditiesPrivate equity
73%14%
4%9%
Emerging Market Debt, Commodities and Real Estate £14.5bn
Schroders
Institutional AUM – detailed asset class analysisAssets under management £221.9 billion
12 2016 Q3 Results | 3 November 2016
Equities £90.1bn
Quantitative equitiesEmerging marketsGlobalAsia PacificUKEuropeAustraliaJapanUS
24%17%
3%
4%8%9%
15%17%
3%
USGlobalEuropeUKAsia PacificAustraliaConvertiblesInsurance-linked
44%22%
1%1%
6%4%
13%9%
Fixed Income £52.6bn
Risk controlled growthLDIUK traditional balancedInflation protectionRisk mitigationWealth preservation
32%38%
3%
21%
Multi-asset £67.6bn
5%
1%
Real estateEmerging market debtAgriculture and commoditiesPrivate equity
78%
7%5%
10%
Emerging Market Debt, Commodities and Real Estate £11.6bn
Schroders
Intermediary AUM – detailed asset class analysisAssets under management £117.5 billion
13 2016 Q3 Results | 3 November 2016
EuropeGlobalUSAustraliaAsia PacificConvertiblesUKInsurance-linked
39%28%
2%3%4%8%
8%8%
Fixed Income £29.6bn
Risk controlled growthIncomeGAIARisk mitigationInflation protection
47%
10%34%
Multi-asset £24.4bn
4%5%
Real estateEmerging market debtAgriculture and commoditiesPrivate equity
53%31%
2%14%
Emerging Market Debt, Commodities and Real Estate £2.9bnEquities £60.6bn
Asia PacificEuropeUKJapanGlobalEmerging marketsUSQuantitative equitiesAustraliaOther
24%
15%
3%4%5%
9%
8%8%8%
16%
Schroders
InstitutionalAssets under management: £221.9 billion
14 2016 Q3 Results | 3 November 2016
7.4
4.9
10.4 10.6
7.3 7.1
(5.8)(5.0) (5.1)
(6.1)(7.4)
(6.1)
1.6
(0.1)
5.3 4.5
(0.1)
1.0
(10.0)
(5.0)
0.0
5.0
10.0
15.0
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
£bn
Gross inflows Gross outflows Net flows
Schroders
IntermediaryAssets under management: £117.5 billion
15 2016 Q3 Results | 3 November 2016
13.9
9.6 8.4 9.5 9.3 12.5
(12.0)(9.8) (8.7)
(11.3) (10.8) (11.4)
1.9
(0.2) (0.3)(1.8) (1.5)
1.1
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
£bn
Gross inflows Gross outflows Net flows
Schroders
Net operating revenue and margins – Asset ManagementAsset Management Net operating revenue £1,071.3 million
16 2016 Q3 Results | 3 November 2016
* Excludes exceptional items
Performance fees - £m
Performance fees on average AUM
Net operating revenue (ex performance fees) - £m
Net operating revenue (ex performance fees) on average AUM
Net income* - £m
Operating expenses* - £m
Profit before tax* - £m 399.1 540.5 400.4
719.5 872.0 644.6
47 bps49 bps 49 bps
1,412.5 1,045.0 1,118.6
1,058.0 1,357.7 1,019.3
0 bps1 bps 1 bps
13.3 35.7 12.7
YTD Q3 2016FY 2015 YTD Q3 2015
Schroders
Income statement progressionAsset Management profit before tax
17 2016 Q3 Results | 3 November 2016
£m
Institutional
Intermediary
Net operating revenue
Net (losses)/gains 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
Q2 2016
163.4
188.6
352.0
13.0
3.3
368.3
(238.6)
129.7
(5.0)
124.7
Q3 2015
146.5
192.6
339.1
(213.5)
(0.2)
4.0
129.4
342.9
Q3 2016
172.1
211.4
383.5
(258.9)
137.3
(3.0)
134.3
141.5
(3.8)
4.4
(6.0)
3.5
400.4 352.0
13.4
(3.0)
137.1 137.7
(3.5)
124.4
Q4 2015
173.2
188.2
Q1 2016
152.7
183.1
335.8
8.9
5.2
349.9
(222.0)
127.9
Q2 2015
156.3
197.3
353.6
(214.7)
(3.1)
126.3
361.4
(227.4)
4.0
2.1
140.1
367.5
Schroders
Income statement progressionWealth Management profit before tax
18 2016 Q3 Results | 3 November 2016
£m
Net operating revenue
Net (losses)/gains on financial instruments and other income
Net income
Operating expenses
Wealth Management profit before exceptional items
Exceptional items
Wealth Management profit after exceptional items
Q2 2016
55.2
0.4
55.6
(38.9)
16.7
(2.0)
14.7
0.2
49.9
51.9
(35.3)
16.5
5.2
21.7
(0.1)
Q1 2016
51.9
0.1
52.0
(36.3)
15.7
(2.0)
13.7
Q4 2015
49.7
(35.1)
(2.0)
12.8
51.8
Q2 2015
53.3
Q3 2015
13.0
55.5
(39.5)
(2.8)(2.1)
Q3 2016
14.8
1.1 -
17.1
14.3
(38.2)
56.6 53.3
15.1
Schroders
Income statement progressionGroup segment profit/(loss) before tax
19 2016 Q3 Results | 3 November 2016
* Includes RWC Partners Limited and Schroder Ventures Investments Limited associates
£m
Net gains on financial instruments and other income
Share of profit of associates*
Net income
Operating expenses
Group profit before exceptional items
Exceptional items
Group profit/(loss) after exceptional items
(1.1)
1.9
Q2 2015
11.0
3.0
10.3
Q3 2016
(8.0)
0.7
1.6
(7.2)
10.9
5.7
5.2
(1.0)
0.6
(2.4)
1.6
(1.4)
(6.6)
0.2
3.7
(10.2)
11.0
0.8
1.3
Q3 2015
8.2
7.2
1.0
Q4 2015 Q2 2016
11.8
Q1 2016
8.0
1.8
9.8
6.8
1.8
8.6
(5.8)
2.8
2.2
5.0
0.9
(1.1)
(0.2)
(8.9)
Schroders
Cost and return metricsTotal Schroders Group costs
20 2016 Q3 Results | 3 November 2016
* Excludes exceptional items**Costs and income are subject to adjustments by the remuneration committee
FY 2015YTD Q3
2015YTD Q3
2016
Total compensation ratio* 44% 44% 45%
Headcount 3,784 3,786 4,011
Total costs* 1,048.8 776.1 856.9
Total cost ratio* 63% 63% 65%
Return on average capital (pre-tax)* 23% 23% 21%
Return on average capital (post-tax)* 18% 18% 17%
► Total compensation ratio= compensation costs divided by net income**
► Total cost ratio= costs divided by net income
► Return on average capital (pre-tax) = profit before tax divided by average capital
► Return on average capital (post-tax) = profit after tax divided by average capital
Schroders
Group capital allocationIncrease of £143 million for the nine months ended 30 September 2016
21 2016 Q3 Results | 3 November 2016
* Includes RWC Partners Limited and Schroder Ventures Investments Limited associates**Comprises goodwill, intangible assets, pension scheme surpluses, other associates and joint ventures, and deferred tax
£mDecember
2015September
2016
Regulatory capital 653 717
Other operating capital 253 93
Investment capital* 942 1,114
Seed capital 229 302
Other** 719 713
Statutory Group capital 2,796 2,939