Full Year 2024 Schroders PLC Earnings Call Transcript
Key Points
- Schroders PLC (SHNWF) reported a 4% growth in Assets Under Management (AUM) to GBP778.7 billion, driven by strong markets and investment performance.
- The company achieved record gross inflows of GBP129.7 billion, the highest since 2020, indicating sustained client interest across all capabilities.
- Schroders Capital nearly doubled its revenue contribution, with gross fundraising reaching GBP10.8 billion, highlighting strong demand in private equity and private debt.
- The Wealth Management segment demonstrated excellent performance with a 15% increase in operating profit, now contributing 27% of the group's operating profit.
- Schroders PLC (SHNWF) is committed to a transformation plan aimed at simplifying operations and achieving GBP150 million in cost savings by 2027, with a focus on profitable growth.
- Despite AUM growth, Schroders PLC (SHNWF) reported a decline in operating profit, highlighting challenges in converting asset growth into profit.
- The company experienced net outflows in its Institutional and Solutions business, particularly due to the Scottish Widows mandate, impacting overall performance.
- Performance fees and carry were down GBP21 million compared to the previous year, reflecting challenges in achieving consistent fee income.
- The company's three-year investment performance fell to just under 60%, indicating struggles in some absolute return-focused strategies.
- Schroders PLC (SHNWF) faces margin pressure in public markets due to a shift in client demand towards lower-margin fixed income products and global equity strategies.
All right. Good morning, everybody. Thank you for joining us on investing your time with us this morning. It really is great to see you, and welcome to everyone who has joined us on the Zoom call. Joe, it is a great privilege to be set in front of you and the CEO of this amazing company.
And I know you've really come to hear about the results and what we're going to be doing from a strategy perspective. If you can indulge me, I want to spend a couple of minutes giving you my perspectives that will hopefully also show why I'm super energized about the group.
So I'm going to start with a little bit of a story. So every weekend, I sit down with my two teenage daughters, and I scan the newspapers. The chat about what's going on. Like any good parent, I thought that was all about me in the outside world. And then of course, what I realize is I get all the benefit because they give me the view from a 19-year-old.
So it's super interesting. But of course, the conversation is entirely dominated by -- not on this year, political
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