Schroders
2011 Q1 results
trusted heritage
advanced thinking
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
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
110.0
75.0
16.4
201.4
31 December 2010
31 March 2011
2
FUM by client domicile
• £131.2 billion funds under management from clients outside the UK
North
America
£21.8bn
South
America
£6.4bn
UK
£70.2bn
Continental
Europe
£46.7bn
Middle
East
£4.3bn
£5.0bn China joint venture
China joint venture funds under management are not reported within Group funds under management
By client domicile
3
Asia
Pacific
£52.0bn
Currency profile of FUM
Funds under management £201.4 billion
4
Total FUM by channel, region and product
Funds under management £201.4 billion
By channel
By product
By region
8%
14%
8%
55%
35%
18%
45%
37%
26%
12%
25%
Institutional
Intermediary
Private Banking
UK
Equities
Fixed Income
Asia Pacific
Alternatives
Multi-asset
Continental Europe*
Private Banking
Americas
By client domicile
5
17%
* Including Middle East
Asset Management FUM by channel and product
Intermediary FUM £75.0bn
Institutional FUM £110.0bn
12%
15%
10%
46%
54%
24%
24%
15%
Equities
Multi-asset
6
Fixed Income
Alternatives
Asset Management FUM by channel and region
Institutional FUM £110.0bn
Intermediary FUM £75.0bn
10%
19%
26%
36%
32%
25%
32%
By client domicile
7
20%
UK
Continental Europe
Asia Pacific
Americas
Asset Management FUM analysis
Fixed Income FUM £34.7bn
Equities FUM £91.4bn
10%
18%
22%
25%
30%
34%
23%
38%
By client domicile
8
UK
Continental Europe
Asia Pacific
Americas
Asset Management FUM analysis
Alternatives FUM £24.9bn
Multi Asset FUM £34.0bn
4%
10%
34%
39%
22%
61%
30%
Property
Commodities
UK Multi Asset
Emerging
market debt
Fund of
hedge funds
Other Multi Asset
Private equity
fund of funds
9
Asset Management business flows
Q1 2010 YTD
Q1 2011 YTD
£bn
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
Q1 2010 YTD
Q1 2011 YTD
£bn
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)
10
Asset Management business flows
Gross Inflows – £bn (No netting)
20
18
19.3
3.5
16
14
12
18.5
18.1
1.9
5.8
1.8
2.2
14.8
1.5
4.1
1.8
1.2
15.9
1.5
3.1
6.7
10
5.3
5.8
8
4.5
6
4
8.1
7.7
Q1 10
Q2 10
6.0
2
7.3
6.8
Q4 10
Q1 11
0
Equities
11
Q3 10
Fixed Income
Multi-asset
Alternatives
Intermediary flows
Q1 2011: gross inflows £9.3bn, net inflows £0.2bn
£bn – sales flows
15
10
10.5
10.8
10.3
9.3
7.7
5
3.3
1.8
2.0
0.8
0.2
0
(5)
(6.9)
(7.0)
(10)
Q1 2010
Gross sales
12
Gross inflows and outflows before netting.
(9.0)
Q2 2010
(8.5)
Q3 2010
Gross outflows
Q4 2010
(9.1)
Q1 2011
Net sales
Institutional flows
Q1 2011: gross inflows £6.6bn, net inflows £2.8bn
£bn – sales flows
10
9.0
7.3
8.0
7.1
6.6
6.0
5
3.8
3.7
3.3
2.8
0
(3.0)
(3.5)
(3.4)
(5)
(4.7)
Q1 2010
Gross sales
13
Q2 2010
Q3 2010
Gross outflows
Q4 2010
Net sales
(3.8)
Q1 2011
Income and cost metrics for the Group
2010 Q1 2011
14
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 prebonus 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
Net revenue and margins – Asset Management
Asset Management net revenue £261.2 million
(Q1 2010: £244.8 million)
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
84.7
95.9
23bps
21bps
AM operating profit - £m
AM operating profit on average AM FUM
15
Key performance indicators
Net revenue margin quarterly progression excluding performance fees
74
74
61
60
Q1 2010
73
61
60
Q2 2010
Asset Management
16
72
65
58
57
Q3 2010
Private Banking
60
58
57
56
Q4 2010
Combined
Q1 2011
Key performance indicators
Total costs
£m
218.4
191.1
191.9
193.5
172.6
80.1
59.1
67.1
63.9
57.4
127.2
115.2
124.8
138.3
134.4
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Staff costs
17
Non-staff costs
Key performance indicators
Total compensation costs: operating revenues
49%
46%
2007
45%
2008
2009
Total Group compensation costs divided by Asset Management and Private Banking net revenues
2008 and 2009 figures exclude exceptional items
18
45%
46%
2010
Q1 2011
Key performance indicators
Total costs: net revenue
78%
72%
64%
2007
67%
2008
Total Group costs divided by net revenue
2008 and 2009 figures exclude exceptional items
19
2009
2010
66%
Q1 2011
Key performance indicators
Cost: operating revenue
79%
73%
71%
2007
2008
2009
Total Group costs divided by Asset Management and Private Banking net revenue
2008 and 2009 figures exclude exceptional items
20
70%
66%
2010
Q1 2011
Key performance indicators
Headcount
2,793
2,722
2,608
Q1 2010
21
2,722
2,662
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Income statement progression
Asset Management profit before tax
£m
Q1
2010
Q2
2010
Net revenue
244.8
232.0
232.7
286.7
261.2
(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
Costs
22
Q3 2010 Q4 2010
Q1 2011
Income statement progression
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
(23.0)
(20.3)
(21.1)
(28.8)
(23.4)
1.3
5.3
2.9
0.6
6.7
Costs
Private Banking profit
23
Income statement progression
Group segment profit/(loss) before tax
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
5.0
4.1
23.7
19.0
(0.7)
(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)
£m
Net revenue
Costs
* Comprised of Schroder Ventures Investment Limited only
24
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
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
Non-current liabilities
25
*Includes non-controlling interests Mar 2011 £3.2m (Dec 2010 £3.2m)
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
1,841
1,800
Statutory Group capital
* Not included in FUM
26
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.
27