Half Year 2024 Schroders PLC Earnings Call Transcript
Key Points
- Assets under management reached a new high of GBP773.7 billion, reflecting a 7% year-on-year increase.
- Wealth Management delivered excellent results with a 7% advised growth rate and net inflows of GBP3.7 billion.
- Schroders Capital saw positive net new business across all four private market pillars, contributing to a GBP3 billion net new business.
- Operating expenses were reduced by 1% year-on-year, demonstrating effective cost discipline.
- The company maintained an unchanged interim dividend of 6.5p per share, indicating financial stability.
- Net new business mix shifted towards lower-margin fixed income strategies, impacting top-line growth.
- Performance fees were lower compared to the previous year, contributing to a softer revenue outlook.
- The Solutions business experienced significant outflows, including GBP6.2 billion from Scottish Widows and GBP3 billion from a long-term client insourcing.
- Public markets business faced outflows of GBP0.2 billion in mutual funds and GBP2.5 billion in institutional investments.
- The effective tax rate increased to 22.8% from 19.4% in 2023, due to the revaluation of deferred tax assets and a change in the geographic mix of profits.
Good morning, everyone. Welcome to the Schroders results for the first half of 2024. Thank you for joining us. I'm Peter Harrison, Group Chief Executive; and with me is Richard Oldfield, our Chief Financial Officer. As normal, I'm going to cover the business performance and strategic progress, then Richard will discuss financials, before we return back to the outlook and Q&A. Please don't forget to raise your hand on Zoom, if you've got any questions. I'll cover those off at the end of the presentation. So let's begin.
Our performance in the first half has been a real validation of our strategy, pivoting to those areas of fast flowing water that I previously talked about. We're seeing more and more opportunities to collaborate across the business, and that means we're now seeing the benefits of having a diverse set of public and private market capabilities all under one roof.
To run through the highlights, assets under management up, set to a new high of GBP773.7 billion. Wealth Management, again
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