Annual Report and Accounts 2016
We focus on helping our clients achieve their financial goals and build future prosperity
As a global asset and wealth manager, Schroders delivers a broad range of investments designed to meet the diverse needs of institutions, intermediaries and high net worth individuals.
For over 200 years we have built principled partnerships with our clients, putting them at the centre of everything we do. They trust us to deliver sustainable returns through times of economic prosperity and of uncertainty.
Overview
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Profit before tax and
exceptional items£644.7m
(2015: £609.7 million)
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Profit before tax
£618.1m
(2015: £589.0 million)
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Assets under Management and Administration
£397.1bn
(2015: £313.5bn)
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Basic earnings per share before
exceptional items186.3p
(2015: 176.9 pence)
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Total dividend per share
93p
(2015: 87 pence)
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Investment capital
£1.1bn
(2015: £942 million)
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Shareholders' equity
£3.2bn
(2015: £2.8 billion)
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Engagements on ESG issues
761
(2015: 495)
Schroders at a glance
We have a diversified business across client channels, asset classes and regions.
Clients
We manage assets on behalf of institutional clients and retail investors, financial institutions and high net worth individuals from around the world. No single client accounts for more than 2% of revenues.
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Institutional
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Intermediary
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Wealth Management
Assets
We invest in a broad range of asset classes across equities, fixed income, multi-asset, alternatives and real estate, as well as Wealth Management. In addition to institutional segregated mandates, we manage more than 610 funds domiciled in 19 countries.
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Equities
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Multi-asset
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Fixed Income
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Emerging Market Debt, Commodities and Real Estate
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Wealth Management
Geography
We operate from 41 offices in 27 countries, managing local and international investment strategies and solutions on behalf of local and international clients.
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UK
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Asia Pacific
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Europe, Middle East and Africa
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Americas
Statements
See what our Chairman, Group Chief Executive and Chief Financial Officer have to say about our performance in 2016.
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Michael Dobson
ChairmanSchroders again delivered record results, benefiting from our diversified business model and, in particular, the strength of our international franchise.
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Peter Harrison
Group Chief ExecutiveSchroders had a good year in 2016, despite the headwinds the industry is facing.
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Richard Keers
Chief Financial OfficerProfit before tax and exceptional items increased 6% to £644.7 million.
Strategy and business review
Our business model starts with our clients.
Our continued success is reliant upon achieving our clients’ investment objectives. It is only by demonstrating value for money and meeting their financial goals that we can continue to grow our business.
The successful delivery of our business model allows us to generate returns for:
- Our clients
- Our shareholders
- Our people
- Society

Our structure is designed to ensure that we deliver consistently globally, but with flexible local management.

Our objectives are aligned with those of our clients – to help them achieve their financial goals and build future prosperity.
- Delivering consistent investment outperformance
- Building partnerships with our clients and designing purposeful products
- Ensuring operational efficiency
- Developing and retaining a deep pool of talent
- Maintaining a strong capital base to invest in future growth opportunities
We use a number of key performance indicators to measure our performance.
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1. Investment Performance (%)
2012 71
2013 68
2014 78
2015 72
2016 74
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2. Net new business (£bn)
2012 9.4
2013 7.9
2014 24.8
2015 13.0
2016 1.1
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3. Assets under management and administration (£bn)
2012 212.0
2013 262.9
2014 300.0
2015 313.5
2016 397.1
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4. Net operating revenue margins (basis points)
2012 54
2013 53
2014 53
2015 51
2016 48
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5. Total cost ratio (%)
2012 69
20131 64
20141 64
20151 63
20161 64
1 Before exceptional items
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6. Total compensation ratio (%)
2012 48
20131 45
20141 44
20151 44
20161 44
1 Before exceptional items
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7. Basic earnings per share (pence per share)
2012 104.7
20131 149.9
20141 166.8
20151 176.9
20161 186.3
1 Before exceptional items
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8. Dividend per share (pence per share)
2012 43
2013 58
2014 78
2015 87
2016 93
Integrity and good conduct are central to our culture and approach to risk management.
Our three lines of defence

Governance
The Board pays great attention to the culture of the firm which we believe, built over many years, represents a key competitive advantage.
Schroders above all values integrity and always seeks to act in the best interest of clients and shareholders.
Our shareholding structure supports the long-term approach we take in the management of our business and enables the Board and management to avoid being overly influenced by short term considerations.
Market trends
A number of key themes are driving change in the asset management industry.
Our clients’ investment needs are changing as the global landscape evolves.
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Investment
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Demographics
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Technology
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Regulation
Our values
We strive for
Excellence
We want to excel at what we do. We continually strive for better.
We work with
Innovation
We challenge how things are done and anticipate future opportunities.
Teamwork
We work as one team for our clients. We value the contribution of individuals and encourage healthy debate.
We have
Passion
We demonstrate enthusiasm for what we do through the dedication and energy we bring to servicing our clients.
Integrity
We build strong relationships based on trust and confidentiality.