22
July 2020 Data Pack Half-year Results 2020
July 2020
Data Pack
Half-year
Results 2020
1 Data Pack 2020
Nothing in this presentation should be construed as a forecast, estimate or projection of future financial performance.
Contents
Page
Assets under management (AUM) 2
Regional diversification of AUM 3
Gross and net flows 4-5
Currency profile of AUM 6
AUM by business area, region and product 7-9
Asset Management AUM – detailed asset class analysis 10
Asset Management gross and net flows 11-14
Wealth Management 15
Net operating revenue and margins – Asset Management 16
Income statement progression 17-19
Cost and return metrics 20
Group capital 21
1Acquisitions within Wealth Management relates to the purchase of TRPP.
Assets under management (AUM)£525.8 billion at 30 June 2020
2 Data Pack 2020
£bn Private Assets & Alternatives Solutions Mutual Funds Institutional Asset
ManagementWealth
Management Total AUM
1 January 2020 44.2 142.8 102.4 144.1 433.5 66.7 500.2
Net flows (0.4) 42.7 (4.8) (0.7) 36.8 1.3 38.1
Acquisitions1 - - - - - 0.3 0.3
Investment returns 1.5 (10.3) (3.5) 2.1 (10.2) (2.6) (12.8)
30 June 2020 45.3 175.2 94.1 145.5 460.1 65.7 525.8
£ 2 5 5 .0 b n
Assets under management (AUM)£525.8 billion at 30 June 2020
Continental EuropeUK
North America
Middle East and Africa
Asia Pacific
South America
£84.2bn
£10.3bn
£70.6bn
£ 8 .0 b n
£97.7bn
3 Data Pack 2020
Gross flowsHalf-yearly
4 Data Pack 2020
50.9 52.7
37.8 42.1
90.5 94.0
0
20
40
60
80
100
H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
£bn
Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management
Net flowsHalf-yearly
5 Data Pack 2020
8.8 1.2
(10.7)(1.2)
44.6 38.1
(20)
(10)
0
10
20
30
40
50
H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
£bn
Equities Fixed Income Multi-asset Private Assets & Alternatives Wealth Management
1USD includes other currencies pegged to USD, including HKD.2Includes the following currencies which individually constitute 1% of AUM: SGD, INR, IDR, BRL, CAD, RUB.
Currency profile of AUMAssets under management £525.8 billion
6 Data Pack 2020
31%
28%
14%
6%
3%3%
3%2%
2%8%
USD¹ GBP EUR CNY JPY AUD CHF TWD KRW Other²
1By client domicile.
Total AUM by business area, region and productAssets under management £525.8 billion
By business area By region1 By product
7 Data Pack 2020
28%
33%
18%
12%
9%
Institutional
Solutions
Mutual Funds
Wealth Management
Private Assets & Alternatives
48%
19%
18%
15%
UK
Asia Pacific
Europe, Middle East & Africa
Americas
31%
29%
19%
12%
9%
Equities
Multi-asset
Fixed Income
Wealth Management
Private Assets & Alternatives
1Represents GAIA assets that are externally managed only.2Includes BlueOrchard Finance and NEOS.
Asset Management AUM by business area and productAssets under management £460.1 billion
8 Data Pack 2020
Private Assets & Alternatives £45.3bn
Real estatePrivate EquitySecuritised creditGAIA¹Direct Lending and impact investment²Emerging market debtInfrastructure financeInsurance linkedCommodities
36%19%19%7%6%4%4%4%1%
Solutions £175.2bn
Multi asset
Equities
Fixed Income
Mutual Funds £94.1bn
Equities
Fixed Income
Multi asset
Institutional £145.5bn
Equities
Fixed Income
78%
12%
10%
50%36%14%
65%
35%
Asset Management AUM by business area and regionAssets under management £460.1 billion
9 Data Pack 2020
Private Assets & Alternatives £45.3bn
Europe, Middle East & AfricaUKAmericasAsia Pacific
55%25%16%
4%
Solutions £175.2bn
UKAsia PacificEurope, Middle East & AfricaAmericas
79%11%
2%8%
Mutual Funds £94.1bn
Europe, Middle East & AfricaAsia PacificUKAmericas
36%32%23%
9%
Institutional £145.5bn
Asia PacificAmericasEurope, Middle East & AfricaUK
31%33%19%17%
Asset Management AUM – detailed asset class analysisAssets under management £460.1 billion
10 Data Pack 2020
Equities £162.4bn
Asia PacificGlobalEmerging marketsUKQuantitative equities
EuropeJapanUS
Australia
23%
18%
3%
5%4%
9%
17%
13%
8%
Risk controlled growth
Risk mitigation
Multi-asset income
Multi-asset inflation
Other
Multi-asset advanced beta
Multi-asset £150.9bn
51%
39%
5%
2%
2%
1%
GlobalUSEuropeAsia PacificUKEmerging market bondsAustraliaConvertiblesCustom Bond Beta
Fixed Income £101.5bn
30%27%
2%
6%
3%
6%
20%
4%
2%
Private Assets & Alternatives £45.3bn
Real estatePrivate EquitySecuritised creditGAIADirect Lending and impact investmentEmerging market debtInfrastructure financeInsurance linkedCommodities
Private Assets & Alternatives – gross and net flowsAssets under management £45.3 billion
3.3 3.2 3.2 3.7
5.9
3.6
(1.5)(2.3) (1.8)
(4.1)
(2.7)
(4.0)
1.8 0.9
1.4
(0.4)
3.2
(0.4)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
£bn
Gross inflows Gross outflows Net flows
11 Data Pack 2020
Solutions – gross and net flowsAssets under management £175.2 billion
7.6 10.7 6.9 6.6
40.0
55.8
(5.0) (7.3) (6.7) (4.5)(7.6)
(13.1)
2.6 3.4 0.2 2.1
32.4
42.7
(20.0)
(10.0)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
£bn
Gross inflows Gross outflows Net flows
12 Data Pack 2020
Mutual Funds – gross and net flowsAssets under management £94.1 billion
24.3 23.4
16.4 19.3 20.1
18.8
(21.0) (22.7) (20.6) (21.1) (19.8)(23.6)
3.30.7
(4.2)(1.8)
0.3
(4.8)
(30.0)
(20.0)
(10.0)
0.0
10.0
20.0
30.0
H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
£bn
Gross inflows Gross outflows Net flows
13 Data Pack 2020
Institutional – gross and net flowsAssets under management £145.5 billion
11.3 11.68.0 9.1
7.6
11.4
(11.6)
(16.6) (16.6)
(11.1)(12.7) (12.1)
(0.3)
(5.0)
(8.6)
(2.0)(5.1)
(0.7)
(20.0)
(10.0)
0.0
10.0
20.0
H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
£bn
Gross inflows Gross outflows Net flows
14 Data Pack 2020
Wealth ManagementAssets under management £65.7 billion
Gross and net flowsClients by portfolio size
4.4 3.8 3.3 3.4
16.9
4.4
(3.0) (2.6) (2.8) (2.5) (3.1) (3.1)
1.4 1.2 0.5 0.9
13.8
1.3
(5)
0
5
10
15
20
H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
£bn
Gross inflows Gross outflows Net flows
15 Data Pack 2020
14%
18%
12%
16%
10%
9%
8%
13%
<£1m £1m - £5m£5m - £10m £10m - £25m£25m - £50m £50m - £100m£100m - £250m >£250m
1Excluding exceptional items.
Net operating revenue and margins – Asset ManagementAsset Management net operating revenue £819.9 million
16 Data Pack 2020
£m FY 2019 H1 2019 H1 2020
Performance fees - £m 42.9 1.9 17.4
Net carried interest - £m 29.3 25.4 1.0
Performance fees and net carried interest on average AUM 2 bps 1 bps 0 bps
Net operating revenue (ex performance fees and net carried interest) - £m 1,690.9 825.6 801.5
Net operating revenue margin (ex performance fees and net carried interest) on average AUM 43 bps 44 bps 37 bps
Net income1 - £m 1,781.2 864.6 835.6
Operating expenses1 - £m (1,174.3) (572.2) (575.3)
Profit before tax1 - £m 606.9 292.4 260.3
Income statement progressionAsset Management profit before tax
17 Data Pack 2020
£m H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
Net operating revenue 911.1 877.7 852.9 910.2 819.9
Net gain/(loss) on financial instruments and other income 1.5 (4.8) 0.5 (5.9) (4.1)
Share of profit of associates and joint ventures 8.9 6.8 11.2 12.3 19.8
Net income 921.5 879.7 864.6 916.6 835.6
Operating expenses (574.1) (556.3) (572.2) (602.1) (575.3)
Asset Management profit before tax and exceptional items 347.4 323.4 292.4 314.5 260.3
Exceptional items (15.2) (67.4) (8.0) (33.4) (7.1)
Asset Management profit before tax and after exceptional items 332.2 256.0 284.4 281.1 253.2
Income statement progressionWealth Management profit before tax
18 Data Pack 2020
£m H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
Net operating revenue 139.9 142.0 140.4 161.7 180.4
Net gain on financial instruments and other income 3.7 3.8 3.2 3.3 6.6
Share of profit of associates and joint ventures 0.2 0.2 0.4 0.6 0.6
Net income 143.8 146.0 144.0 165.6 187.6
Operating expenses (95.1) (101.3) (100.8) (121.3) (127.3)
Wealth Management profit before tax and exceptional items 48.7 44.7 43.2 44.3 60.3
Exceptional items (10.8) (14.6) (13.1) (21.5) (19.0)
Wealth Management profit before tax and after exceptional items 37.9 30.1 30.1 22.8 41.3
Income statement progressionGroup segment profit/(loss) before tax
19 Data Pack 2020
£m H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
Net gain on financial instruments and other income 18.8 10.3 21.5 19.3 5.7
Share of profit of associates 2.0 1.8 2.5 1.6 -
Net income 20.8 12.1 24.0 20.9 5.7
Operating expenses (19.8) (16.1) (19.2) (18.9) (19.3)
Group profit/(loss) before tax and exceptional items 1.0 (4.0) 4.8 2.0 (13.6)
Exceptional items - (3.3) - (0.6) -
Group profit/(loss) before tax and after exceptional items 1.0 (7.3) 4.8 1.4 (13.6)
1Excludes exceptional items.2Costs and income are subject to adjustments by the Remuneration Committee.
Cost and return metricsTotal Schroders Group costs
2019 H1 2019 H1 2020
Total compensation ratio1 44% 44% 45%
Headcount 5,673 5,339 5,521
Total costs (£m)1 1,423.6 692.2 697.7
Ratio of total costs to net income1 67% 67% 70%
Total compensation ratio= compensation costs divided by net income2
Ratio of total costs to net income= costs divided by net income
20 Data Pack 2020
21 Data Pack 2020
Group capital
Capital Base Capital Allocation
1,498 1,525
1,127 1,100
216 96
1,007 1,203
0
1,000
2,000
3,000
4,000
31 December 2019 30 June 2020
3,9243,848
£m
Overall regulatory capital requirement Other items2Dividend1Capital surplus
1,498 1,525
148 97 408 318
578 621
1,216 1,363
0
1,000
2,000
3,000
4,000
31 December 2019 30 June 2020
3,848 3,924
Working capital – regulatory and other Working capital – seed and co-investment
Investment capital – liquid Investment capital – illiquid Other items2
1Final 2019 dividend/proposed 2020 interim dividend.1Final 2019 dividend/proposed 2020 interim dividend.2Comprises items that are inadmissible for regulatory purposes, principally goodwill, intangible assets and pension scheme surplus.
