2011 Annual General Meeting
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Schroders
2011 Annual General Meeting
Michael Dobson
Chief Executive
5 May 2011
2010: a record year
2
• Investment in organic growth
• 81% of funds outperforming over 3 years
• Focus on investment
performance
• Net new business £27.1bn (2009: £15.0bn)
• Broad product range
• Funds under management £196.7bn (2009:
£148.4bn)
• Proven distribution capability
• Profit before tax £406.9m (2009: £137.5m)
• Global franchise
• Earnings per share 111.8p (2009: 34.3p)
• Strong financial position
• Dividend 37.0p per share (2009: 31.0p)
2010
Share price performance
160
Schroders voting shares
+40%
140
120
FTSE 100
+9%
100
80
January
2010
3
June
2010
December
2010
Asset class diversification: net inflows
£bn
12
10
9.7
8
6.4
6
5.4
5.6
Q3 2010
Q4 2010
4
2
0
Q1 2010
Equities
4
Q2 2010
Fixed Income
Multi-asset
Alternatives
Private Banking
Regional diversification: net inflows
76% from clients outside the UK
North
America
£4.0bn
5
South
America
£1.8bn
UK
£6.5bn
Continental
Europe
£4.4bn
Middle
East
£0.9bn
Asia
Pacific
£9.5bn
Regional diversification: funds under management
67% of revenues from clients outside UK
UK
£68.2bn
North
America
£20.8bn
South
America
£6.5bn
Continental
Europe
£44.9bn
Middle
East
£4.2bn
£5.2bn China joint venture
* China joint venture funds under management are not reported within Group funds under management
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Asia
Pacific
£52.1bn*
Institutional
Funds under management: £106.4bn (2009: £76.7 bn)
£bn
• Shift from DB pensions to
sovereign wealth funds,
financial institutions
35
• Mandates from large clients
20
30
31.4
25
18.5
15
• Momentum in fixed income,
emerging market equities,
alternatives and new asset
classes
– quant equities
10
11.7
11.6
5
4.9
0
-3.8
-5
-10.6
-10
-13.6
-15.5
-15
– multi-asset
– LDI
• Revenue margins unchanged
7
16.8
-20
-14.6
-22.2
-25
2007
Gross inflows
2008
2009
Gross outflows
2010
Net inflows
Intermediary
Funds under management: £74.1bn (2009: £59.1bn)
£bn
50
• Gross sales up 36%
40
• Top 3 year in net sales
41.0
39.3
30
29.0
• Redemptions in Asia
20
• Progress in sub-advisory in
US, Japan
10
• Growth potential with
insurance partners, pre and
post retirement market
-10
7.9
-6.2
-19.4
-20
-32.2
-29.5
-31.4
-40
2007
Gross inflows
8
9.6
8.8
0
-30
• High capacity, scalable
products
23.3
2008
2009
Gross outflows
2010
Net inflows
Private Banking
Funds under management: £16.2bn (2009: £12.6 bn)
• Strength of investment and client service proposition
• Additional client facing private bankers
• Record level of net new business
• Reduction in revenue margins
– lower management fees on large mandates
– lower interest income
– lower transaction fees
• Higher staff costs
• Doubtful debt provisions in the UK
• Business positioned for increased profitability in 2011
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Q1 2011 Interim Management Statement
• Profit before tax: £103.8m (Q1 2010: £93.2m)
– Asset Management profit before tax: £97.3m (Q1 2010: £88.9m)
– Private Banking profit before tax: £6.7m (Q1 2010: £1.3m)
• Net new business: £3.1bn
• Funds under management: £201.4bn (31 December 2010: £197.6bn)
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Outlook
• Volatile markets
• Decline in Intermediary flows
• Good opportunities in Institutional
• Competitive investment performance
• Broad product range
• Focus on long term growth
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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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