Schroders
2013 Q1 results
Data Pack
May 2013 | For professional investors only. This material is not suitable for retail clients.
Contents
Page
Assets under management (AUM)
2
Regional diversification of AUM
3
Gross sales and net inflows
Currency profile of AUM
AUM diversification
Asset Management business flows
4-5
6
7-11
12-14
Asset Management net revenue and margins
15
Income and cost metrics for the Group
16
Key performance indicators
17-18
Total costs and headcount
19-20
Income statement progression
21-23
Statement of financial position
24
Movement in capital
25
Group capital allocation
26
Forward-looking statements
27
Schroders 2013 Q1 Results | 2 May 2013
1
Assets under management (AUM)
£236.5 billion at 31 March 2013
Asset Management
£bn
Institutional
Intermediary
Private Banking
Total
123.7
72.0
16.3
212.0
Net flows
2.3
3.5
(0.2)
5.6
Investment returns
10.8
6.9
1.2
18.9
31 March 2013
136.8
82.4
17.3
236.5
31 December 2012
Schroders 2013 Q1 Results | 2 May 2013
2
Regional diversification of AUM
65% of revenues outside UK
UK
£81.9bn
North
America
£26.9bn
Schroders 2013 Q1 Results | 2 May 2013
South
America
£8.2bn
Continental
Europe
£44.9bn
Middle
East
£7.5bn
Asia
Pacific
£67.1bn
3
Gross sales
£bn
20.0
20
17.0
15
13.9
13.4
13.3
Q2 2012
Q3 2012
10
5
0
Q1 2012
Equities
Schroders 2013 Q1 Results | 2 May 2013
Fixed Income
Multi-asset
Q4 2012
Alternatives
Q1 2013
Private Banking
4
Net inflows
£bn
6
5.6
4.1
4
2.6
1.6
1.1
Q1 2012
Q2 2012
Equities
Fixed Income
2
0
-2
Schroders 2013 Q1 Results | 2 May 2013
Q3 2012
Multi-asset
Q4 2012
Alternatives
Q1 2013
Private Banking
5
Currency profile of AUM
Assets under management £236.5 billion
29%
31%
2%
10%
4%
24%
GBP
Schroders 2013 Q1 Results | 2 May 2013
EUR
USD
JPY
CHF
Other
6
Total AUM by channel, region and product
Assets under management £236.5 billion
By channel
By region
7%
By product
7%
15%
35%
20%
46%
35%
58%
28%
9%
22%
Institutional
Intermediary
Private Banking
UK
Continental Europe*
Asia Pacific
18%
Equities
Fixed Income
Alternatives
Multi-asset
Americas
Private Banking
* Including Middle East
By client domicile
Schroders 2013 Q1 Results | 2 May 2013
7
Asset Management AUM by channel and product
Institutional AUM £136.8bn
Intermediary AUM £82.4bn
8%
11%
17%
24%
48%
53%
22%
17%
Multi-asset
Schroders 2013 Q1 Results | 2 May 2013
Alternatives
Equities
Fixed Income
8
Asset Management AUM by channel and region
Institutional AUM £136.8bn
Intermediary AUM £82.4bn
13%
18%
27%
35%
32%
29%
28%
18%
Asia Pacific
Americas
UK
Continental Europe
By client domicile
Schroders 2013 Q1 Results | 2 May 2013
9
Asset Management AUM analysis
Equities AUM £109.0bn
Fixed income AUM £41.1bn
13%
16%
23%
26%
32%
35%
23%
UK
Continental Europe
32%
Asia Pacific
Americas
By client domicile
Schroders 2013 Q1 Results | 2 May 2013
10
Asset Management AUM analysis
Alternatives AUM £22.1bn
Multi-Asset AUM £47.0bn
5%
12%
37%
45%
12%
26%
Property
Commodities
Emerging market debt
Funds of hedge funds
Private equity funds of funds
Schroders 2013 Q1 Results | 2 May 2013
45%
18%
UK multi-asset
Liability-driven investment
Other multi-asset
11
Asset Management business flows
Q1 2012
£bn
Q1 2013
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
5.1
(3.7)
1.4
6.7
(4.4)
2.3
Intermediary
7.8
(7.5)
0.3
12.3
(8.8)
3.5
Total Asset Management
12.9
(11.2)
1.7
19.0
(13.2)
5.8
Schroders 2013 Q1 Results | 2 May 2013
12
Institutional
Assets under management: £136.8bn (31 Dec 2012: £123.7bn)
£bn
10
8.0
6.7
5.1
4.6
4.1
2.6
2.3
1.9
1.4
0.5
0
-2.7
-3.6
-3.7
-4.4
-5.4
-10
Q1 2012
Q2 2012
Gross inflows
Schroders 2013 Q1 Results | 2 May 2013
Q3 2012
Gross outflows
Q4 2012
Q1 2013
Net flows
13
Intermediary
Assets under management: £82.4bn (31 Dec 2012: £72.0bn)
£bn
15
12.3
8.2
7.8
7.9
7.9
5
3.5
1.5
0.8
0.7
0.3
-5
-7.5
-7.5
-7.1
-6.4
-8.8
-15
Q1 2012
Q2 2012
Gross inflows
Schroders 2013 Q1 Results | 2 May 2013
Q3 2012
Gross outflows
Q4 2012
Q1 2013
Net flows
14
Asset Management net revenue and margins
Asset Management net revenue £289.8 million (Q1 2012: £250.8 million)
Q1 2012
Q1 2013
Average AM AUM – £bn
177.2
207.5
AM net revenue on average AM AUM
57bps
56bps
6.0
2.8
AM performance fees on average AM AUM
1bps
0bps
AM costs – £m
164.2
186.6
AM costs on average AM AUM
37bps
36bps
86.6
103.2
20bps
20bps
AM performance fees – £m
AM operating profit – £m
AM operating profit on average AM AUM
Schroders 2013 Q1 Results | 2 May 2013
15
Income and cost metrics for the Group

Compensation cost: operating revenue =
total Group compensation costs divided by Asset
Management and Private Banking net revenues

Bonus: pre-bonus operating profit = total Group
bonus divided by pre-bonus Asset Management
and Private Banking profit before tax
66%

Cost: net revenue = total Group costs divided by
net revenue
20%
22%

Return on average capital (pre-tax) = total Group
profit before tax divided by average capital
15%
16%

Return on average capital (post-tax) = total Group
profit after tax divided by average capital
FY
2012
Q1
2012
Q1
2013
Compensation cost:
operating revenue
49%
47%
48%
Bonus:
pre-bonus operating profit
42%
38%
40%
Cost:
net revenue
70%
68%
Return on average capital
(pre-tax)
18%
Return on average capital
(post-tax)
14%
Schroders 2013 Q1 Results | 2 May 2013
16
Key performance indicators
Compensation cost: operating revenue ratio
45%
44%
2010
2011
49%
48%
2012
Q1 2013
Total Group compensation costs divided by Asset Management and Private Banking net
revenues adjusted by the Remuneration Committee for allowable and disallowable revenues.
Schroders 2013 Q1 Results | 2 May 2013
17
Key performance indicators
Cost: net revenue ratio
67%
66%
70%
2010
2011
2012
66%
Q1 2013
Total Group costs divided by net revenue
Schroders 2013 Q1 Results | 2 May 2013
18
Total costs
£m
250
223.9
200
192.9
191.7
182.7
59.5
59.7
150
213.5
63.8
60.4
62.5
100
133.4
123.0
129.2
Q1 2012
Q2 2012
Q3 2012
160.1
153.1
Q4 2012
Q1 2013
50
0
Staff costs
Schroders 2013 Q1 Results | 2 May 2013
Non-staff costs
19
Headcount
2,926
2,957
2,998
3,011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Schroders 2013 Q1 Results | 2 May 2013
3,059
Q1 2013
20
Income statement progression
Asset Management profit before tax
£m
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Institutional
120.0
113.0
117.1
139.2
136.8
Intermediary
130.8
127.2
128.9
138.6
153.0
Net revenue
250.8
240.2
246.0
277.8
289.8
(164.2)
(154.8)
(161.2)
(191.2)
(186.6)
2.0
1.3
0.9
0.8
1.7
–
(0.1)
0.1
0.1
0.3
88.6
86.6
85.8
87.5
105.2
Costs
JVs and associates
Net finance (charge)/income
Asset Management profit
Schroders 2013 Q1 Results | 2 May 2013
21
Income statement progression
Private Banking profit before tax
£m
Net revenue
Costs
Private Banking profit
Schroders 2013 Q1 Results | 2 May 2013
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
27.1
25.5
24.6
17.2
26.5
(20.7)
(21.5)
(20.6)
(19.8)
(21.6)
6.4
4.0
4.0
(2.6)
4.9
22
Income statement progression
Group segment profit/(loss) before tax
£m
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
4.8
(4.4)
5.9
19.4
6.7
Costs
(8.0)
(6.4)
(9.9)
(12.9)
(5.3)
JVs and associates*
(0.1)
(0.4)
0.1
(0.1)
(0.5)
Net finance income
3.8
3.8
2.7
2.7
4.0
Group profit/(loss)
0.5
(8.7)
(1.2)
9.1
4.9
Net revenue
*Schroder Ventures Investments Limited only
Schroders 2013 Q1 Results | 2 May 2013
23
Statement of financial position
£m
31 Dec 2012
31 Mar 2013
Intangible assets including goodwill
142.1
148.4
Other non-current assets
729.0
701.5
Current assets
4,457.7
4,891.1
Assets backing unit-linked liabilities
9,346.3
10,159.0
Total assets
14,675.1
15,900.0
443.3
418.4
Current liabilities
2,815.6
3,119.5
Unit-linked liabilities
9,346.3
10,159.0
Total liabilities
12,605.2
13,696.9
Net assets
2,069.9
2,203.1
Total equity*
2,069.9
2,203.1
Non-current liabilities
*Includes non-controlling interests 31 Mar 2013: £0.6m (31 Dec 2012: £0.5m)
Schroders 2013 Q1 Results | 2 May 2013
24
Movement in capital
£m
2013
Opening balance
2,069.9
Profit before tax
115.0
Net fair value movement arising from AFS financial assets
(1.6)
Exchange differences on translation of foreign operations after hedging
40.7
Tax
(28.2)
Net share purchases
(4.9)
Share-based payments
11.8
Other
0.4
Closing balance
Schroders 2013 Q1 Results | 2 May 2013
2,203.1
25
Group capital allocation
Investment capital breakdown (%)
31 Dec
2012
31 Mar
2013
Asset Management
& Private Banking
operational capital
957
1,056
Investment capital*
926
954
Other
(intangibles etc.)
187
193
£m
Statutory Group capital
* Not included in AUM
Schroders 2013 Q1 Results | 2 May 2013
4% 2%
18%
30%
2%
21%
23%
2,070
2,203
Cash deposits, CDs and commercial paper
Fixed income bonds
Government guaranteed bonds
Multi-Asset
Seed capital: alpha exposures
Legacy private equity
Other
26
Forward-looking statements
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and
business of Schroders and certain plans and objectives of Schroders with respect thereto. These forward-looking statements can be
identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as
“anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe”, “hope”, “aims”, “continue”, “will”, “may”, “should”, “would”,
“could”, or other words of similar meaning. These statements are based on assumptions and assessments made by Schroders in light
of their experience and their perception of historical trends, current conditions, future developments and other factors they believe
appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on
circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this document
could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking
statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance
can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on
these forward-looking statements which speak only as at the date of this document. Schroders does not assume any obligation to
update or correct the information contained in this document (whether as a result of new information, future events or otherwise),
except as required by applicable law.
There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking
statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking
statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and
interest rates, changes in tax rates and future business combinations or dispositions.
Schroders 2013 Q1 Results | 2 May 2013
27