Schroders
Speciality Finance Conference 2009
Bank of America Merrill Lynch
Kevin Parry
Chief Financial Officer
18 November 2009
Overview of Schroders
£138.9bn funds under management
–
Founded in 1804
–
Exclusive focus on asset management
and private banking
–
325 investment professionals
worldwide
–
32 offices in 25 countries
–
Financial strength
Bermuda
Cayman Islands
Mexico City
New York
Philadelphia
Amsterdam
Copenhagen
Frankfurt
Geneva
Guernsey
Gibraltar
Jersey
London
Luxembourg
Madrid
Milan
Paris
Rome
Stockholm
Zurich
Beijing
Hong Kong
Jakarta
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Dubai
Buenos Aires
São Paulo
1
Geographic, asset class and sales channel diversity
Assets under Management £138.9billion
Asset class
Region
12%
Channel
9%
9%
37%
39%
17%
48%
24%
53%
12%
14%
27%
UK
Europe
Asia Pacific
Americas
As at 30 September 2009
2
Equities
Alternatives
Private Banking
Fixed Income
Multi-asset
Institutional
Intermediary
PrivateBanking
2009 Third quarter results
Third quarter net inflows by product
•
Profit before tax and exceptional items
£57.8m (Q3 2008: £71.5m)
4%
16%
•
Funds under management: £138.9bn
(30 June 2009: £113.3 bn)
•
Third quarter net inflows £7.0 bn
•
Strong investment performance
• 85% outperformance versus benchmark
or peer group over 1 year
3
47%
33%
Fixed Income
Equities
Alternatives
Multi-asset
Institutional
Restore growth
Broad product capability
Equities, Bonds, Alternatives, Multi-asset
– Central manufacturing, local delivery
Product development
– Focus on growth channels
Product specialist sales resources
Consultant relationship team
UK
Europe
Asia
Strategy
– Increase gross sales
Americas
Channel Sales specialists, client servicing
Marketing & communications
– Increase longevity
– Develop strategic relationships
– Growth strategy built around product
innovation
Charities
4
DB Pension
schemes
Insurance
companies
Official
Institutions
DC Pension
schemes
Institutional
YTD 2009: net inflows £2.4bn
£bn – sales flows to end September
• Q3 2009: net inflows £3.3bn
15
• Strong performance
10
• Consultant upgrades
5
• Inflows across range of products and
0
12.5
9.3
2.4
geographies
(2.3)
-5
(11.6)
(
(10.1)
• Strong pipeline of new business
-10
opportunities
-15
2008
Gross sales
Net sales
5
2009
Gross outflows
Intermediary
Building leadership with new positioning
Broad product capability
Equities, Bonds, Alternatives, Multi-asset
– Component provider
Product development
– Solutions provider
Product specialist sales resources
UK
Europe
Asia
Strategy
Americas
Channel Sales specialists
Client servicing, marketing
– Branded or sub-advised
– Getting closer to the client
– Individual retirement accounts
Discretionary
Bank
branches
End client
6
Wholesaler
Platforms
Tied
Agents
Independent
Advisers
Anticipating investor demand
GOVERNMENT BONDS
CORPORATE CREDIT
HYBRID
EQUITY
Equity
Yield / Dividend
Structured or
Protected Equity
Global Convertible, Asian
Convertible
Corporate Bond
Short-term Govt
Bond
Liquidity
Dynamic multi-asset
7
RISK APPETITE
credit
European Yield and Dividend Max
Global Yield and Dividend Max
European Defensive, Step Invest,
CPPI
Convertibles
Multi strategy
European, UK, US, Asian, Emerging
Markets, Thematic Global
EMD Absolute Return,
Strategic Bond, Global High Yield
Euro Bond, Euro Corporate Bond,
Global Bond, Euro Short Term
Bond, European Bond,
Global Inflation Linked
Euro Government Bond,
Euro Government Liquidity
Euro Liquidity, US Dollar Liquidity
Intermediary
YTD 2009: net inflows £6.2bn
£bn – sales flows to end September
• Q3 2009: net inflows £3.7bn
15
• Recovery in gross sales
10
6.2
• Lower redemptions
5
• Capitalising on strong demand in
Europe
0
-5
11.8
9.5
(3.1)
(5.6)
(
(12.6)
-10
-15
2008
Gross sales
Net sales
8
2009
Gross outflows
Conclusions
•
Priorities remain unchanged
• Capitalising on investment performance
• Growing assets under management
• Balancing cost reductions vs. growth opportunities
9
•
Significant pipeline
•
Focus on organic growth
Forward-Looking Statements
These presentation slides may contain certain forward-looking statements with respect to
the financial condition and results of the operations and businesses of Schroders plc
These statements and forecasts involve risk and uncertainty because they relate to events
and depend upon circumstances that may occur in the future
There are a number of factors that could cause actual results or developments to differ
materially from those expressed or implied by those forward-looking statements and
forecasts. The 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
10