Creating prosperity
together
Our purpose
Creating prosperity together.
Our vision
We partner with our clients
to provide trusted advice
and invest in the assets
and markets that matter
to them, building their
future prosperity through
delivering excellent
investment outcomes.
Our 2024 reporting suite
Visit our 2024 online reporting site to
watch and read more:
www.schroders.com/investors
Strategic report
Key performance indicators 2
Our strengths 4
Chair’s statement 6
Group Chief Executive’s statement 8
Our business model 10
Strategy 12
People and community 16
Non-financial and sustainability information
statement 17
Business and financial review 18
Leadership in active management 22
Climate change strategy 24
Risk management 26
Stakeholder engagement 32
Viability and going concern statement 34
Governance
Board of Directors and Company Secretary 36
Corporate governance report 40
Nomination and Governance Committee report 50
Audit and Risk Committee report 54
Remuneration report 62
Directors’ report 84
Statement of Directors’ responsibilities 88
Financial statements
Consolidated financial statements 90
Schroders plc financial statements 144
Independent auditor’s report 167
Shareholder and sustainability
information
Shareholder information 175
Five-year consolidated financial summary 176
Climate-related financial disclosures 177
Governing our non-financial information 184
Glossary 185
Our Annual General Meeting (AGM) will
be held at 1 London Wall Place, London,
EC2Y 5AU and electronically via a live
broadcast on 1May 2025 at 11:30am.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
1 Schroders Annual Report and Accounts 2024
The outcomes
we measured
Throughout the year, the Board tracked and reviewed the
following key performance indicators (KPIs). These KPIs provide
year-on-year transparency for all stakeholders and are an
important source of consistent insight into the strategic, financial
and operational progress of the business.
Net operating income (£m)
Our objective
Net operating income comprises net operating revenue earned
from the assets we manage, net gains on co-investments,
share of profit of joint ventures and associates, and other
income. Weaim to grow net operating income over time.
Basic operating earnings per share (p)
Our objective
We recognise the potential impact of market volatility on results
in the short term; however, we aim to target growth in earnings
per share.
How we performed
£2,426.8m
Net operating income increased £7.8million from 2023 to
£2,426.8 million. Increases resulting from investment
performance and market gains were partly offset by FX
movements and net outflows.
How we performed
30.1p
In 2024, basic operating earnings per share was 30.1 pence, a
decrease of 7% on 2023.
2,426.8
2,419.0
2,475.5
2,520.0
2,135.8
2024
2023
2022
2021
2020
30.1
32.5
37.4
43.0
34.9
2024
2023
2022
2021
2020
Assets under management (£bn)
Our objective
We aim to grow our assets under management (AUM) over
time in excess of market growth, through positive investment
outperformance and net new business. As a sterling-
denominated reporter, currency movements also impact
asset levels.
Net new business (£bn)
Our objective
We seek to generate positive net new business across
the Group.
How we performed
£778.7bn
At the end of 2024, AUM stood at £778.7 billion, an increase of
4% on 2023. Investment performance increased AUM by
£38.3billion, offset by in-year currency movements of £(7.9)
billion. Net new business decreased total AUM by £4.7 billion.
How we performed
£(4.7)bn
Net new business, excluding our joint ventures and associates,
was £(10.8) billion in 2024. Net new business, including joint
ventures and associates, was £(4.7) billion.
778.7
750.6
737.5
766.7
694.4
2024
2023
2022
2021
2020
-4.7
1.0
-7.6
37.3
62.7
2024
2023
2022
2021
2020
Key performance indicators
2 Schroders Annual Report and Accounts 2024
Client investment performance (%)
Our objective
We target at least 60% of our AUM outperforming their stated
comparator over a rolling three-year period.
Portfolio temperature score (°C)
Our objective
We aim to achieve a portfolio temperature score of 2.2°C for our
in-scope assets by 2030. This score is based on the targets set
by investee companies across their Scope 1 and 2 emissions.
How we performed
58%
In 2024, 58% of assets outperformed their relevant comparator
over three years. Over one and five years, performance was
strong, with 70% and 76% of assets outperforming,
respectively. In 2022 and 2023, some strategies with interest
rate or cash benchmarks faced higher hurdles as rates rose.
This is reflected in the three-year performance figure.
More details on our performance reporting can be found on
page 186.
How we performed
2.4°C
The portfolio temperature score of in-scope assets fell to 2.4°C
at the end of 2024. This is ahead of the linear pace ofreduction
required to meet our target.
58
60
73
79
72
2024
2023
2022
2021
2020
2.4
2.5
2.6
2.8
2.9
2024
2023
2022
2021
2020
Retention of highly rated employees (%)
Our objective
Developing and retaining talented people is key to our ongoing
success. We actively monitor retention, focusing onthose who
have received a strong performance rating.
Dividend per share (p)
Our objective
Our policy is to provide shareholders with a progressive and
sustainable dividend, targeting a payout ratio of around 50%.
How we performed
94%
Our highly rated employees retention rate remained high at
94%. This represents a committed and engaged workforce,
aligned with our values.
How we performed
21.5p
The Board has recommended a final dividend of 15.0 pence per
share, bringing the total dividend for the year to 21.5 pence per
share. This represents a payout ratio of 71%.
94
96
94
94
94
2024
2023
2022
2021
2020
21.5
21.5
21.5
21.4
20.0
2024
2023
2022
2021
2020
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
3 Schroders Annual Report and Accounts 2024
What makes us
different
Creating prosperity together with our clients depends on core
strengths and capabilities that we have built over many years.
Active investment management is at the heart of this because it
enables us to respond to changing dynamics and capture
opportunities in an increasingly complex world. Trust in our brand,
our ability to innovate and the quality of our people are all key to
fulfilling our purpose.
1
Active investment
expertise
2
Trust in our
brand
We see resilient and healthy demand for active
management. This expertise allows us to seek out
opportunities for our clients where markets are inefficient
and where risk and complexity are on the rise.
Clients entrust us with the task of creating future prosperity
together through active investment decisions. Our
respected brand gives us a distinct edge in the market.
Outperformance across
key active strategies
Our market-leading global equities strategies reached
£56.6billion. Client investment performance over five years
showed 86% of assets outperforming their relevant
comparator, with 74% and 65% outperforming over one and
three years respectively (excludes holdings allocated from
multi-asset portfolios).
Top 5 global asset
management brand
Fifth overall out of 2,600 asset managers in an independent
global asset management brand study by NMG Consulting.
The top four are US firms. We have ranked fifth since 2018.
Managing complexity
Key mandates, such as the £3.8 billion equity protection
strategy we implemented for a UK local government
pension fund, and our ability to access specialist areas of
private markets, are examples of how we deliver large-scale
specialist solutions for our clients’ unique needs.
MSCI ESG rating, AAA
The highest rating possible for our resilience to long-term,
financially relevant environmental, social and governance
(ESG) risks. This puts us in the top 11% of our sector.
16 SDR fund labels
Adoption of the UK regulator’s Sustainable Disclosure
Requirements (SDR) labels reflects client demand for active
investment management targeting sustainability outcomes.
A+ Fitch rating
Long-term issuer default rating. We have maintained an
A+/Stable rating since September 2000.
Our strengths
4 Schroders Annual Report and Accounts 2024
3
Client-focused
innovation
4
Our people and
culture
We aim to uphold the trust of our clients by developing
products that are relevant and delivering excellent service.
We focus on technology-led innovation and client outcomes.
The performance of our people is key to active
management, client trust and successful innovation. A
culture of excellence and inclusion enables us to attract and
retain outstanding talent.
Launched Future
Growth Capital
We have formed a new private markets investment
manager, in partnership with Phoenix Group, allowing
pension savers to access the diversification and return
opportunities in private markets.
94%
Our retention of highly rated employees. By nurturing a
high-performing and engaged workforce we aim to deliver
stability and long-term value for clients.
Innovative client
solutions
We worked collaboratively with the trustees of a UK
supermarket's pension scheme for an £11.9 billion
Outsourced Chief Investment Officer (OCIO) mandate to
implement a bespoke portfolio design aligned to the
scheme’s investment return needs and their responsible
investment goals.
Proud to work for
Schroders
In our pulse survey, 87% of employees said they are proud
to work here. We have seen strong engagement since we
began reporting this metric in 2015.
AI for active investment
We used AI to accelerate alpha search for clients, providing
around 300 investment professionals with access to
Enterprise ChatGPT and a proprietary sustainability research
tool that completes tasks in under 30 minutes instead of
8+ hours.
68% of employees are
shareholders
A significant proportion of our people have a direct financial
stake in the performance of the business through a number
of share plans, creating strong alignment for stakeholders.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
5 Schroders Annual Report and Accounts 2024
Working
together with
focus and
clarity of
purpose
Dame Elizabeth Corley
Chair
With optimism and a renewed
sense of purpose, we will
pursue a simplified strategy
and operational plan.
2024 has been a particularly notable
year in our 220-year history. In the
spring, we announced that after eight
years at the helm, Peter Harrison, our
Group Chief Executive, would be
retiring. This marked the end of one
chapter but the start of another for
our organisation, culminating in the
appointment of Peter’s successor in
early autumn, followed by the
appointments of our Group Chief
Investment Officer and our new
Chief Financial Officer to the Board
in January.
Following an extensive search process and
from a pool of exceptionally qualified
candidates, we were delighted to
announce in September the appointment
of Richard Oldfield as our new Group Chief
Executive, taking over from Peter on
8November 2024. Shortly after, we
announced that Meagen Burnett would
replace Richard as Chief Financial Officer
(CFO). Alongside Meagen, Johanna
Kyrklund was elevated to the Board as
Group Chief Investment Officer (CIO). The
new leadership team has already begun to
make a significant impact, bringing fresh
insights and innovative ideas.
Richard joined Schroders in 2023 as CFO,
and in that role I witnessed first-hand his
natural ability to lead client-focused and
people-centric businesses. Prior to that he
served as Network Vice Chairman and
Global Markets Leader at PwC, where he
was responsible for building teams to grow
their client-facing businesses profitably,
while advising global clients on their most
complex and challenging issues. He
possesses a global perspective, a strategic
mindset, and a respected track record, with
personal values closely aligned with the
culture at Schroders. He is authentic,
wholeheartedly dedicated to his work, and
passionate about both the delivery of
excellent client outcomes and the
development of talent.
Meagen joined Schroders in January 2023
as Group Chief Operating Officer, with
more than 25 years’ experience in financial
services, including 15 years in asset
management. As Chief Financial Officer,
she takes direct responsibility for financial
management, capital and treasury, with
oversight of operations and technology.
She has shown incredible rigour in her role
as Group Chief Operating Officer, and I
know she will do the same as CFO in
shaping our commercial decision-making,
driving change and transformation delivery
in our business processes, and leveraging
our investment in technology.
Johanna joined Schroders in 2007 as Head
of Multi-Asset Investments. Over the
course of nearly two decades, she has
grown our Multi-Asset business into a
global franchise from £22billion of assets
under management when she joined to
£192.8 billionat 31 December 2024. Since
2019 she has served as Group CIO.
Johanna’s elevation to the Board
underscores the importance of active
investment expertise and performance to
the business and our clients.
Meagen and Johanna both bring significant
experience, international mindsets and
leadership across a wide range of
disciplines, including operations, finance,
technology, investment and client relations.
Their skill sets will complement the
capabilities we have in Richard, providing
us with strong leadership to drive the
Group forward.
Chair’s statement
6 Schroders Annual Report and Accounts 2024
The Board and I were particularly pleased
with the calibre of our internal candidates
for Board positions, all of whom were
assessed against world-class external
alternatives.
Detailed information about the succession
planning and appointments process can be
found in the Nomination and Governance
Committee report, on page 50.
I extend my gratitude to both Peter and
Richard for their collaboration during the
leadership transition, as well as to our
colleagues across the business, who have
demonstrated professionalism and
adaptability throughout this time of change.
On behalf of the Board, I would also like to
thank Peter for his leadership and dedicated
service. He has led the business through a
transformative period over the past eight
years. His strategic vision to diversify our
capabilities in both Private and Public
Markets, and to achieve sustained growth in
Wealth Management have created a strong
business platform for the future.
In addition to leadership changes, we have
continued to strengthen our Board with
relevant skills and experience for the future.
We welcomed two non-executive Directors,
Iain Mackay and Frederic Wakeman. Their
global experience across sectors, including
pharmaceuticals, banking and private equity
investing, provides fresh perspectives to
complement our current non-executives.
Iain succeeded Rhian Davies as Chair of the
Audit and Risk Committee. Rhian, having
served almost nine years, decided not to
seek re-election. We are deeply indebted to
her for the contribution she made
throughout her tenure.
Sadly, our next AGM will see the departure
of Deborah Waterhouse, who, having
served as a non-executive Director for six
years, has decided to stand down from the
Board in order to concentrate on the
demands of her role at GSK plc. Deborah’s
insights and challenge have been of huge
benefit to the Board and I would like to
thank her for the contribution she has
made to the Board, and also as a member
of both the Audit and Risk, and
Remuneration Committees.
I would also like to extend my thanks to Ian
King for his unwavering support for me in
his role as Senior Independent Director.
Whilst Ian is remaining on the Board, as he
enters his ninth year of service, Ian has
decided that now is the right time to
transition the role of Senior Independent
Director. Ian will be succeeded as Senior
Independent Director by Iain Mackay at the
conclusion of the 2025 AGM.
While this year has seen notable successes,
particularly in the growth of our global
equity and fixed income strategies, and our
Schroders Capital and Wealth Management
businesses, we have also encountered a
challenging operating environment, which
has affected our financial performance and
our private market flows.
Notwithstanding these challenges, our
assets under management grew to a
record £778.7 billion. Positive new business
in the higher margin areas of Wealth
Management, Schroders Capital and
Mutual Funds is a source of optimism, even
though this was offset by redemptions
from Solutions and Institutional mandates.
We were encouraged that client
investment performance over one year
showed 70% of assets outperforming their
benchmark, although, with a strong 2021
rolling out of the three-year performance
for 2024, client outperformance reduced to
58% for that period. Five-year performance
remained very strong with 76% of assets
outperforming.
This year, the Board is recommending a
final dividend of 15.0 pence per share
(2023: 15.0 pence per share). This brings
the full-year dividend to 21.5 pence per
share (2023: 21.5 pence per share), flat on
last year, as we seek to bring the dividend
back in line with the 50% payout policy
target.
Subject to shareholder approval at the
Annual General Meeting, the final dividend
will be paid on 8May 2025 to shareholders
on the register on 28March 2025.
The strengths of the business are deep
rooted, but the Board and I acknowledge
that there are clear opportunities and
areas of further improvement we must
capture with pace. We will continue to
encourage and support the new leadership
team as they set out their strategic focus.
The fresh perspectives of new leadership
have prompted us to re-evaluate our
statement of purpose, as Richard Oldfield
explains in his section of the report. Our
clients remain central to our mission, but it
is clear that the business must evolve to
scale effectively and profitably. A key focus
will be on simplification of the business
with cost efficiencies contributing to a
targeted reduction in the adjusted
cost:income ratio to below 70% by 2027.
This will not be at the expense of client
focus. Our commitment is to serving
clients, simplifying and scaling the business
and returning Schroders to operating
profit growth.
With optimism and a renewed sense of
purpose, we remain committed to
addressing our clients’ needs in a
rapidly changing world. We will do so with
a focus on creating prosperity for all
our stakeholders and sustainable
shareholder value.
In what has been a year of change, I would
like to extend my sincere thanks to all our
colleagues for their dedication and hard
work. They are the driving force behind our
successes. Colleagues play critically
important roles, and their contributions are
deeply appreciated. Together, we can
continue to build a successful, long-term
future for Schroders.
Dame Elizabeth Corley
Chair
5March 2025
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
7 Schroders Annual Report and Accounts 2024
To make the
most of our
capabilities
we need to
simplify
Richard Oldfield
Group Chief Executive
We must capitalise on our
areas of excellence and
continue to work with
clients to understand
and solve their problems.
I took on the role of Group Chief
Executive in the final months of what
has proved to be a year of change.
From the start I made it a priority to meet
clients to understand what they wanted
from Schroders – and in my first 100 days I
saw more than that number of clients.
There was a recurrent theme in those
conversations which I find encouraging: in a
world of constant change and uncertainty,
our clients want sound advice from a
source they can trust. What we are in the
business of providing is still, at its core, very
much in demand.
That said, the product mix that clients seek
is changing. This is part of the structural
shift across our industry, which has seen a
surge in the use of passives and rapid
growth in private markets and wealth
management, among other trends.
These changes, which Schroders has been
preparing for, account for increased margin
pressure in parts of our business, leading
to a divergence between assets under
management (AUM) and operating income
that is apparent in our results for 2024. This
divergence reflects the fact that we are
responding to client demand and providing
more of the services they want.
Our AUM has grown significantly in the past
decade, but profit has not kept pace. This
reflects our investment over recent years to
reposition the firm. However, we have also
added cost and complexity. How we are
addressing this is explained in “Further
transformation” on page 9.
The strategy built over the last decade puts
us in a sound position today from which to
expand earnings. There is more to be done
to build operational efficiency, but we have
developed complementary capabilities
across our Public Markets, Schroders Capital
and Wealth Management businesses.
Together they make Schroders a world-class
specialist in active management – an
attribute that both differentiates us and
offers unique value to clients.
These building blocks form our opportunity
to win in the years ahead, but to capture
the opportunity we need to evolve rapidly.
That change is a necessity, as well as
something that comes naturally to a
firm with the resilience and longevity
of Schroders.
Better together: strengthening
client relationships
Markets are volatile, and macro external
factors – fragmenting global trade alliances,
a new wave of AI technology disruption, the
decarbonisation of our energy systems and
more – mean clients face great uncertainty.
The policy and regulatory environments in
which they operate add further complexity.
So, while the investment marketplace is
changing, one thing remains absolutely
unchanged: our clients’ need for advice and
investment solutions. It is our role to
respond to shifting external factors and to
decode them in order to continue
delivering what clients want.
We have tasked the entire business to bring
ever greater focus on understanding and
serving clients. One outcome of this is a
restructured Client Group, better able to
assess clients’ needs, respond at speed and
measure delivery; it is also manifest in a
specific requirement that sales
professionals spend more time with clients.
I see on average one client every day, and
value that contact for the insights it
provides: better knowledge of clients is how
we will capitalise on the complementary
nature of our cross-market services.
Group Chief Executive’s statement
8 Schroders Annual Report and Accounts 2024
This is why we have evolved our statement
of purpose, simplifying it into just three
words that sum up the alignment of our
own interests with those of our clients:
creating prosperity together. This is a
small but important step, giving clarity
about what we stand for to our clients
and our people.
In Public Markets: delivering the
benefits of active management
for clients
Active management of equities and
bonds traded on the world’s public
markets remains a point of excellence
within Schroders.
As our Group CIO Johanna Kyrklund
has pointed out to clients and in the
press, we see risk in the increased
index concentration that became such
a feature of markets in 2023 and 2024.
Many clients agree. They believe that an
active approach, perhaps used alongside
passive holdings, is the best way to capture
the opportunities of the mega-trends of
our age, such as decarbonisation. They
also see the downsides of passive: that
there is no challenge and no room for a
contrarian view.
As the global economy becomes more
disrupted by factors such as geopolitical
change or new technologies, the risk posed
by passive strategies, which have limited
ability to flex, may become even clearer.
In our Global Investor Insights Survey
2024, which samples investor attitudes far
beyond our own client base, while 52% of
investors recognised the advantages of
passive in large and efficient markets, 74%
cited active management as “better for
specialist approaches”.
We remain resolutely committed to active
management, and our Public Markets
business will evolve, with a simplification
of products and continued focus on
clients’ needs.
In Schroders Capital: growing
where we can offer clients
best-in-class
Schroders Capital has scale and
prominence in specialist areas where we
choose to compete. Our aim is to be the
stand-out provider in these sectors.
In private equity, our specialism is small-
and mid-cap buy-outs and early stage
venture capital, where we are harnessing
opportunities for high-growth businesses
arising from AI and other technology
trends. In infrastructure our specialism is
energy transition, via Schroders Greencoat,
with capabilities spanning a wide range of
technologies and return opportunities. In
real estate we are leaders where we
specialise: in the hospitality, industrial and
logistics sectors. In private debt and credit
alternatives our strength is in income
solutions derived from a broad range of
underlying assets straddling public and
private markets.
These capabilities enable us to offer new
products through vehicles such as
European Long-Term Investment Funds
and the UK equivalent, Long-Term Asset
Funds: vehicles which provide access to the
benefits of private asset ownership for
more pension savers and private investors.
In 2024 we announced the formation of
Future Growth Capital with partner
Phoenix Group, a major UK long-term
savings business. This partnership seeks to
deploy in excess of £10 billion between
now and 2034 into UK and global private
market assets.
To drive growth and capitalise fully on our
areas of strength, we are establishing a
specialist sales force in Schroders Capital
with new sector-specific hires. Clients have
developed their own in-house expertise
around private asset classes and we wish
to enable specialist-to-specialist
conversations.
In Wealth Management: building
on client satisfaction
Our Wealth Management division has
grown to become a significant part of
the overall Group.
Organic growth is especially strong in
our UK charity and high-net-worth
business, Cazenove Capital, where we
have established long-term relationships
of trust with clients, often spanning
multiple generations. This has resulted in
continued additions to their portfolios as
well as introductions from them and their
advisors to new clients. This trust rests
on the quality and experience of our
people and their deep understanding of
our clients’ needs, coupled with superb
investment expertise and a deep
technical knowledge in financial planning,
philanthropy and values-based investing,
among other fields.
One of the major attractions to these
clients is the stability provided by our
ownership structure, with the important
ongoing role of the founding family.
This, combined with the risk discipline
and investment intelligence of a major
global asset manager, are important
differentiators that have allowed Cazenove
Capital to gain significant market share at
the top-end of the UK wealth bracket, as
well as with charities, where we are the
largest UK manager.
This compatibility between Cazenove
Capital and our wider investment business
also applies to our international
subsidiaries, as it does to our UK affluent
businesses, Benchmark and Schroders
Personal Wealth – our joint venture with
Lloyds Banking Group. In the latter two
cases, our investment team provides its
core investment solutions.
Strategic partnerships: winning
access to new client groups
We have a long record of operating
successfully with partners around the
world, helping them serve their clients.
Long-standing partnerships include those
with Hartford Funds in the US, Axis in India,
Bank of Communications (BOCOM) in
China, Nippon Life in Japan and Lloyds
Banking Group in the UK.
These partnerships are precious.
In my former role at PwC, working with
complex, global financial services firms, I
saw again and again the benefits of
partnerships in bringing profitable growth.
It’s not about the one company asking
“how can I create value?”, it’s about both
taking a collective view of “how can we
create value together?”
Further transformation to
support growth
We will apply rigorous discipline to
deploying capital and to cost management.
We have set a three-year savings target to
deliver £150million of net cost run-rate
savings, with a view to reducing our
adjusted cost:income ratio to below 70%
from its current level of 75%. This sits
alongside our clear plan to drive revenue
growth while maintaining client service.
In April we announced that we had
successfully priced £250 million of Tier 2
debt. The issuance was positively received
in the market. The proceeds will give us
additional flexibility to support the ongoing
strategic transformation of the business,
further strengthening our capital and
liquidity positions.
We are driving efficiencies in a range of
ways. In our management structure, a
smaller Executive Committee will enable
quicker decision-making. Across the firm, a
new benchmarking process will assign
clear accountability to colleagues and
better measure their progress. However,
we will not lose sight of our greatest
attributes and advantages: our standards
of client service, our people and our
reputation. In 2024, we retained our
position as one of the top five global asset
management brands, in the NMG survey.
Schroders’ people – not just today’s
colleagues but the generations before
them – have built this wealth of reputation
with their talent and commitment. It is a
privilege to be asked to safeguard it for
my period in this office, and to be charged
with helping drive the business to even
greater success.
Richard Oldfield
Group Chief Executive
5March 2025
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
9 Schroders Annual Report and Accounts 2024
Capabilities for
client partnership
We have two segments: Asset Management and Wealth
Management. Three distinct businesses – Public Markets,
Schroders Capital and Wealth Management – provide diverse
capabilities and a global reach enabling us to remain relevant to
our clients and serve their needs in an increasingly complex world.
Asset Management
Active investment management across public and private
markets through funds and institutional mandates.
£535.0bn AUM
Wealth Management
Investment, advisory and platform
services across the wealth spectrum.
£126.8bn AUM
Public Markets
We help meet clients’ investment
needs throughout various phases of
the economic and market cycle in
public markets. Retail clients can
access our mutual funds through
intermediaries and investment
platforms. Model portfolio services
allow wealth managers to benefit from
our investment expertise while
retaining control of their clients'
assets. Our solutions business helps
institutional clients address their most
complex investment challenges at
scale. We have also developed
innovative new services for
institutional clients, such as a Managed
Indices service that tracks the general
movements of an index while allowing
us to modify their portfolios and seek
enhanced returns or risk reduction
through active management.
Schroders Capital
Schroders Capital offer investors the
opportunity for diversification and the
potential for additional sources of
returns in assets that are not available
through public markets. Private equity,
private debt and credit alternatives,
real estate and infrastructure
investments – the four pillars of our
private markets business – have
historically only been available to
institutional investors and ultra-high-
net-worth clients. We have a
differentiated private markets offering,
such as in private equity where we
specialise in buyouts of small and
medium sized enterprises and in real
estate where we are recognised for
operation of hotels across Europe.
Through new strategic partnerships
and collective investment vehicles we
are making investment opportunities
in private markets available to a wider
range of clients.
Wealth Management
Four wealth management
businesses – Cazenove Capital,
Schroders Wealth Management,
Benchmark and Schroders Personal
Wealth (see Associates and joint
ventures) – position us to meet the
needs of a wide spectrum of clients.
Cazenove Capital serves high- and
ultra-high-net-worth clients, family
offices and charities in the UK.
Schroders Wealth Management serves
these client segments in the Channel
Islands, Switzerland and Singapore.
Benchmark Capital offers financial
planning and advice to a broad range
of clients and provides an investment
platform used by financial advisers
across the UK to help them meet the
needs of their clients. Wealth clients
benefit from the core investment
expertise in public and private markets
from our Asset Management segment.
Associates and joint ventures
£101.2bn AUM
We partner with other leading firms, including BOCOM in China, Nippon Life in Japan,
Axis in India and Phoenix Group in the UK, with whom we recently launched Future
Growth Capital. These partnerships provide access or greater reach in markets with
high potential.
Associates and joint ventures
£15.7bn AUM
Our joint venture with Lloyds Banking
Group, Schroders Personal Wealth,
offers financial advice and discretionary
management for clients.
Corporate functions
Delivery of our services across Asset Management and Wealth Management is made possible by our robust and scalable operating
platform, which includes key corporate teams, such as Global Technology, Operations, Finance, Risk and Compliance, People and
Culture, Legal and Governance, Internal Audit and Tax.
Our investment strategies include:
– Equities
– Fixed income
– Infrastructure
– Multi-asset
– Private debt and credit
alternatives
– Private equity
– Real estate
– Risk mitigation
Our business model
10 Schroders Annual Report and Accounts 2024
How our
business
works
We aim to achieve our purpose by combining investment expertise with extensive
market knowledge and data to actively manage clients’ investment capital, with the
goal of creating prosperity together. To do this, we need to attract and develop
talented employees and maintain a robust, scalable operating platform.
By serving clients’ needs, we aim to deliver positive outcomes for all stakeholders.
Understand our
clients’ needs
We develop a clear view of clients’
evolving needs by focusing our resources
around key client segments. This supports
our goal to build deeper, longer-lasting
relationships. In Asset Management, we
offer investment opportunities across
public and private markets that respond
to clients’ needs. In Wealth Management,
our differentiated brands offer services
that are designed for a range of clients,
according to their specific needs
and circumstances.
Create innovative
products and solutions
We recognise that clients have a wide
variety of needs and goals. By combining
client insights with market knowledge,
data and our strong investment
capabilities, we can design distinctive
products and solutions.
These are designed to fit our clients’ risk
and return profiles, and any sustainability
preferences. They are rigorously tested to
ensure that they are fit for purpose.
Actively manage investments
Asset Management
Our asset class specialists actively manage clients’ investments.
Using insights based on our proprietary research and technology,
they seek opportunities aligned with clients’ long-term objectives.
Wealth Management
We manage the investments of individuals, families, charities and
foundations based on careful consideration of their circumstances
and priorities. We also focus on the needs of current and future
generations through our wealth planning and platform services.
How we earn money
Our services are designed to deliver our clients' investment goals.
We charge them fees as a percentage of the assets we manage, as
well as for the use of our platform or advisory services. We may
also earn performance-based revenues and transaction fees.
How we create value over the long term
Growing people’s savings
and pensions
We strive to create a brighter future for
our clients, investors and society as a
whole.
It is imperative that we never lose sight
of the individuals who entrust us with
their savings, which is why clients are at
the heart of everything we do.
Shareholder returns
Creating shareholder value goes hand in
hand with our core aim of providing
excellent performance to clients. Being
able to service clients’ needs, while
thoughtfully allocating capital to higher
growth areas, allows us to generate
shareholder value and returns over the
long term.
Active stewards of assets
We are responsible stewards of
£778.7billion of assets. We believe our active
approach to investment will be increasingly
important to meet our clients’ expectations.
Active stewardship and management
generates opportunities while helping
businesses in their transition to a more
sustainable model.
Client investment performance (5-year)
76%
Dividend per share
21.5p
Meetings with companies across a range of
topics
>9,000
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
11 Schroders Annual Report and Accounts 2024
We focus on
opportunity...
Our long-term strategic goal has been to unlock future growth by
recognising the changing needs of clients and wider
macroeconomic and industry trends. We have deliberately built
capabilities to capture these opportunities.
Our purpose: creating prosperity together
Our vision: we partner with our clients to provide trusted advice and invest in the assets and markets that matter to them,
building their future prosperity through excellent investment outcomes.
Addressing clients’ needs through active management
Our active management approach, our expertise as a provider of tailored solutions and our experience through market cycles
allow us to focus on addressing clients’ goals in a complex world. Our scalable operating platform is designed to address their
needs efficiently.
Delivering for clients across...
Public Markets Schroders Capital Wealth
Management
Identifying listed assets with potential
for excess returns remains a key client
need. Our core range of actively
managed global products helps
investors seek risk-adjusted returns, in
a changing world. Strategic
partnerships provide opportunities for
profitable growth and access to some
of the world’s largest markets,
including the US, China and India.
We have developed a differentiated
offering across the four pillars of our
Schroders Capital business, allowing us
to serve clients who want access to the
growth, income and diversification
opportunities they present. Expansion
of private markets, their importance to
wealth and institutional clients and
innovations in how they can be
accessed by individual investors make
this an important growth opportunity.
Getting closer to investors and building
longer-lasting relationships allows us to
deliver more relevant and tailored
investment, advisory and platform
services for a range of investors.
Expanding our Wealth Management
business creates opportunities to
deepen client relationships and offer
differentiated services that add value.
A business diversified across capabilities, regions and products (AUM)
Strategy
12 Schroders Annual Report and Accounts 2024
Businesses
l
Public Markets
60%
l
Schroders Capital
9%
l
Wealth Management 16%
l
JVs and associates
15%
Regions
l
UK
48%
l
EMEA
15%
l
Asia Pacific
25%
l
Americas
12%
Products
l
Equities
28%
l
Multi-asset
26%
l
Fixed Income
19%
l
Wealth Management
18%
l
Private Assets &
Alternatives
9%
...in a changing
world
Global themes
Democracy
In 2024, more than 4 billion people,
representing over half of the global population,
had the opportunity to vote in elections held
across more than 50 countries.
1
The changing
policies of governments globally will have a
significant impact on the economies and
markets in which we operate.
Disruptive technologies
The pace of development in generative AI
highlights how unpredictable the impact will be
on industries and economies. Significant and
rapid technological progress and efficiency gains
are possible, but there are also potential
challenges for regulation, intellectual property,
data management, and public trust in sources
of information.
Debt
Growing public debt around the world continues
to shape the market backdrop and government
fiscal policies. Governments are adopting more
proactive fiscal policies and higher interest rates
than in the last decade and seeking to balance
between stimulating growth through spending
and maintaining debt sustainability.
Decarbonisation
We believe the need for investment to transform
global energy systems will remain a long-term
theme, despite changing political priorities. To
reach net zero by 2050, annual clean energy
investment worldwide will more than need to
triple by 2030 to around $4 trillion.
2
China’s
substantial investments in clean energy mean its
market will play a key role in global efforts to
meet emissions targets.
Demographics
Ageing populations and migration are driving
increasing need for healthcare and pension
spending in wealthier countries. At the same
time, debt and low growth continue to constrain
economies.
Deglobalisation
Conflict and geopolitical tensions continued in
2024, motivating governments and industries to
rethink supply chains and allocation of capital.
Despite this, and despite the risk of tariffs
between the US and other trading blocs, we
anticipate global growth in 2025.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
13 Schroders Annual Report and Accounts 2024
Search for income, returns and
resilience
Recent investment flows have concentrated money in fewer
large companies and markets. In today’s environment of
fiscal, geopolitical and environmental complexities, investors
seeking income, returns and portfolio resilience may have to
look beyond benchmarks and recent winners. This presents
an opportunity for us to demonstrate the role of active
management in offering differentiation and diversification.
Growth and change in pensions
and savings
Personal financial assets in the Asia-Pacific region are
expected to grow by an average of 8% annually over the next
five years, surpassing the global average of 5%.
3
Globally, the
changing economic outlook is prompting investors to
consider saving more, spending less and adjusting their
investment strategies. In the UK, government pension policy
aims to create larger pools of investable capital.
Expansion of private markets
The share of global asset management revenues derived
from private markets is expected to reach 55% by 2027.
4
More individual investors are seeing private assets as a new
potential source of performance, risk mitigation and
sustainability. At the same time, technological
developments and new types of fund are widening the
opportunities for private investors to access different
private market asset classes.
Climate and sustainability
Builders of global energy infrastructure and renewable
energy generators require capital investment to drive the
transformation of global energy systems, and some
investors continue to look for the opportunities that this
provides for returns and to decarbonise their own
portfolios. While the political focus on climate change may
vary over time, we remain focused on investment
opportunity and outcomes for clients.
Technology and data
Developments in technology and generative AI are creating
opportunities to personalise investments and improve
customer experience. We also see potential to improve the
efficiency of the delivery of investment products and
increase access to a greater range of assets and markets.
Opportunities and trends
1. Why 2024 is a record year for elections | World Economic Forum.
2. Net Zero by 2050 - Analysis | International Energy Agency.
3. Fortunes Rising Fast in Asia-Pacific | BCG.
4. BCG Global Asset Management | BCG.
Strategic journey
in 2024
We continued to deliver against our long-term strategic priorities,
while improving operational efficiency. We continued to focus
on clients during a year of leadership transition and the
implementation of our Client Group structure and strategic
client framework.
Delivering for clients across... Progress in 2024
Public Markets
– Our mutual funds business returned to positive flows for the first calendar year since
2021.
– There were four main considerations for clients’ portfolios in public markets: global
equity diversification; income in an era of higher interest rates and inflation;
decarbonisation; and outsourcing investment management services to address
clients’ needs to navigate complexity.
– We developed a multi-billion Euro fundamental global equity solution with a
sustainability lens for a European pension fund who moved to an active strategy
from their existing passive approach.
– In the UK, we announced plans to adopt the Financial Conduct Authority’s (FCA)
Sustainability Disclosure Requirements (SDR) labels across ten funds in 2024, and for
a further six by the time of publication of this report.
Schroders Capital
– Our revenue from new business in Schroders Capital almost doubled.
– We launched our Private Markets for Private Clients campaign focused on individual
investors who are looking to grow their exposure to private assets through
evergreen and semi-liquid solutions.
– We launched a new UK investment manager, Future Growth Capital (FGC) in
partnership with Phoenix Group, which will enable pension savers to access
alternative sources of returns and diversification in private markets.
– We strengthened Client Group teams in Schroders Capital, notably focusing on
private markets for wealth clients.
Wealth
Management
– Strong financial performance in Wealth Management was a key driver of our stable
underlying revenues.
– We strengthened key teams in Wealth Management to meet the growing demand
for wealth planning among charities and family offices in the UK. We are the largest
manager of charitable assets in the UK.
– In June, the charity-focused Sustainable Multi-Asset Fund reached £2 billion in client
investments, making it the fastest growing charity fund in the UK over the past five
years.
– We announced the acquisition of Whitley Asset Management, extending our family
office capability and signalling our continued commitment to Cazenove Capital’s
leading franchise with UK ultra-high-net worth clients, and recognising the
importance of trusted relationships in this business.
Our strategy has been shaped by our strategic risks. Please see pages 29 – 31 for more details about those risks.
Strategy continued
14 Schroders Annual Report and Accounts 2024
Future focus
Addressing clients’ needs
Focus and invest in areas where we excel in Public Markets
Understand our clients’
needs
Investment research plus the tools and
operations that support alpha
generation and our experience through
market cycles enable us to understand
complex client needs.
Create innovative
products and solutions
We invest in AI and technology, apply
public policy expertise and engage with
regulators to develop client-focused
products and services for the future.
Actively manage
investments
We have more than 49 investment
teams globally. They collaborate with
clients across our three businesses and
use our engagement framework to
manage our clients’ investments actively.
– We will focus on, and invest in, core strategies where we have differentiated capabilities
and a strong, long-term track record of alpha generation.
– By realising synergy in our best-in-class research and portfolio construction, we will
drive efficiency and enhance our operational capabilities.
– Through our global network we will match our areas of strength with client demand.
– We are committed to being the active manager of choice, recognised for the
sophisticated investment solutions we offer and our holistic approach to client service.
Drive flows into differentiated, specialist capabilities in Schroders
Capital
– We will build a specialist sales team and accelerate gross flows into our differentiated
private market products.
– We will look to build further strategic partnerships and high-potential investment
propositions to enable growth.
– Building on the strengths of the Group, we aim to capitalise on trends such as the
expansion of private assets into wealth management and growing demand from
insurance and pension funds.
Sustain and build our successful track record in Wealth Management
– In Cazenove Capital, we will maintain our focus on exceptional client service and strong
investment outcomes. We will target further growth by expanding our team of senior
wealth managers and through culturally-aligned, bolt-on acquisitions in the UK – and
internationally, through Schroders Wealth Management.
– In Schroders Personal Wealth, we will continue to drive scale and profitability
improvements.
– In Benchmark, we will focus on driving continued organic growth, particularly in our
award-winning model portfolio solutions offering.
y.
Accelerate transformation and deploy capital effectively
– We will implement transformation initiatives, focusing on simplification of the business
to remove duplication and overlap of processes.
– We aim to deliver earnings growth through cost efficiency and targeted investment,
while maintaining our focus on clients and leveraging previous investment in
technology.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
15 Schroders Annual Report and Accounts 2024
Our people:
committed
to purpose
and impact
Our strengths lie in active management, trust in our brand, client-
focused innovation, and our commitment to our people and
communities. We nurture these strengths because they allow us to
deliver investment solutions that address the evolving needs of
our clients.
Our values
Excellence
Our commitment to excellence fuels our drive to create value for all stakeholders and a thriving long-term future for our business.
Innovation and teamwork
We disrupt the status quo, anticipate future opportunities, and embrace the transformative power of teamwork. We aim to deliver
value by appreciating individual contributions and by harnessing the power of collaboration and technology.
Passion and integrity
We are determined in our ambition and pragmatic in delivery. We carry out our responsibilities with great care, energy and
determination. This is complemented by a culture of transparency and accountability.
Our people
The commitment, drive and innovation of
our people enable us to deliver our vision
successfully.
We aim to attract people with the skills and
passion to help us achieve our purpose.
This means creating a high-performing
culture that is inclusive and provides
employees with opportunities to grow.
To maintain our position as an employer
of choice, we aspire to offer:
– pride and purpose
– fair pay for performance
– an empowering, supportive and
inclusive environment
– quality work and skills development
Pride and purpose
At Schroders, our employees are essential
to our purpose of partnering with clients to
provide trusted advice and invest in assets
that build future prosperity. 87% of
employees express pride in our workplace,
exceeding external benchmarks. This
reflects our ongoing commitment to
fostering a purpose-driven and inclusive
culture. We strengthen engagement
through transparent communication
methods, such as personalised vlogs
and “Inside Schroders Lite” sessions,
connecting leadership with staff and
reinforcing our shared sense of purpose.
Our Global Employee Forum (GEF) plays a
crucial role in amplifying employee voices
to our Group Executive Committee (Group
ExCo) and Board. It fosters collaborative
dialogue that supports our staff, strengthens
our business operations, and enhances the
client experience through informed and
representative decision-making.
Fair pay for performance
We aim to recognise and reward
employees through a combination
of compensation and benefits.
Salary and bonus decisions are governed
by our Fair Pay for Performance
framework, meaning each decision takes
into account:
– annual performance: Group-wide, team
and individual performance, including
behaviours and conduct
– market context: reviewing pay levels and
outlook among relevant comparators, as
well as wider economic conditions
– relativities: validation and challenge of
compensation proposals to ensure
fairness versus peers and markets
– individual context: considering the
skills, experience and potential of
each employee
Carefully balancing all these factors allows
annual pay outcomes to be fair and drive
high performance.
We aim to provide competitive benefits and
support to our employees in line with local
market norms. Our flexible offering
empowers people to choose options that
suit them.
An empowering, supportive and
inclusive environment
We empower our people with autonomy
and flexibility in a supportive environment.
At the heart of our inclusive culture is our
global Flexible Working Charter, which
helps us attract and retain talent.
We have voluntarily published our gender
pay gap since 2017 and our UK ethnicity
pay gap since 2023. For further details on
our workforce diversity aspirations and
representation, see page 86.
In keeping with our Equal Opportunities
Policy, we give full and fair consideration
to all employment applications, including
those from disabled people, considering
their aptitudes, skills, behaviours and
abilities. If employees experience a
disability, we continue to employ them
wherever possible, with retraining if
necessary to enable continued career
development.
Our Wellbeing framework is dedicated
to fostering a healthy culture and our
Wellbeing Community is among the
largest voluntary groups within the firm.
The way employees feel about our efforts
is reflected in our 83% favourable
employee engagement score to the
statement “Schroders cares about my
health and wellbeing”.
Our comprehensive approach to wellbeing
is delivered through educational events
and initiatives from the People and Culture
team, addressing both mental and physical
health risks with equal emphasis.
By utilising data-driven insights and
employee feedback, we customise our
benefits and support systems to effectively
meet the diverse needs of our employees
and promote healthy behaviours.
Furthermore, our global Employee
Assistance Programme (EAP) offers
confidential support. Complementing this,
our progressive wellbeing policies,
including those related to mental health
People and community
16 Schroders Annual Report and Accounts 2024
and menopause, ensure necessary
workplace adaptations. Through vigilant
monitoring of absences and benefits
utilisation, we continuously refine our
strategies, ensuring a supportive and
thriving work environment for all.
Quality work and skills development
We support employee development and
career aspirations through training and
opportunities aligned with business
growth. By investing in our employees’
development, we strengthen our capability
to meet client needs and uphold service
standards.
Regular feedback allows us to prioritise
initiatives for attracting and retaining
top talent.
In 2024 we rolled out the AI Academy on
our learning and development platform for
all employees. The content includes the “AI
Fundamentals Pathway” for beginners
through to an engineering pathway to
support more advanced development. By
adopting AI tools throughout the business,
we aim to enhance productivity. These
tools enable employees to automate
routine tasks, streamline their workflows,
and develop a future-fit workforce.
Retention of highly rated
employees
94%
This highlights our commitment to
fostering a supportive and engaging
work environment. This reflects the
strength of our initiatives in
maintaining employee satisfaction and
nurturing top talent.
Our commitment to inclusion
89%
Employees who agree that we are
committed to fostering an inclusive and
diverse culture in the workplace. An
increase from 87% in 2023 to 89% in
2024 underscores that our people feel
valued and respected.
People at Schroders trust and
respect each other
87%
The percentage of employees affirming
a culture of trust and respect. An
increase from 85% in 2023 to 87% in
2024 highlights our commitment to
fostering healthy relationships and a
collaborative environment, aligning
with our values of integrity and
teamwork.
Community
Investing in our communities and supporting
charitable causes demonstrates how we act
with purpose. This fosters a sense of pride
and belonging among our people and
creates a positive impact on society.
Our approach is overseen by our Global
Charity Committee, which reports to our
Group Sustainability and Impact
Committee. Regional committees,
champions and employee resource groups
help to co-ordinate and mobilise local
activities for collective action.
Corporate giving
In 2024, we committed £5.9 million
1
to
charitable causes around the world (2023:
£5.4 million), £1.2 million of which was
outside the UK (2023: £1.4 million).
Charity partnerships
Our charity partnerships focus on
improving equality and protecting the
planet. They provide our employees with
opportunities to make a difference by
supporting mental health, promoting
equity and social mobility, promoting
entrepreneurship, innovation and
leadership in young people, supporting
financial education for disadvantaged
children, and protecting the environment.
Employee giving
We encourage employees to contribute
their time and develop their skills by
providing 16 hours of paid volunteer time
each year. We promote a variety of
opportunities to suit different skills and
time commitments. Our employees
registered more than 6,600 hours of
volunteering during office hours in 2024,
representing a 24% increase from 2023.
This equates to a monetary value of nearly
£600,000
2
.
We also offer matching schemes that
support fundraising both inside and
outside the office, as well as personal
payroll giving, to amplify our people’s
efforts in fundraising and donating to
causes that matter to them.
Donations committed to charitable
causes
1
£5.9 million
2023: £5.4 million
1. We have included charitable donations,
memberships, sponsorships and research as per
the Business for Societal Impact (B4SI)
methodology.
2. Calculated using the B4SI methodology.
Non-financial and
sustainability information
statement
In accordance with sections 414CA
and 414CB of the Companies Act 2006,
which outline requirements for non-
financial reporting, the table below is
intended to indicate where in the
Annual Report our stakeholders can
find the content they need to
understand our development,
performance and position regarding
non-financial and sustainability
matters, including environmental
issues, our employees, social matters,
respect for human rights, and anti-
corruption and anti-bribery efforts.
Non-financial key performance
indicators can be found throughout
the below referenced sections and on
pages 2 to 3.
Description of
business model
Pages 10 to 11
Description of
principal risks,
impacts on the
business and risk
mitigation
Pages 26 to 31
Leadership in active
management
Pages 22 to 23
Governing our
non-financial
information
Page 184
Climate and
environment:
Climate-related
financial disclosures,
prepared in
accordance with the
Companies (Strategic
Report) (Climate-
related Financial
Disclosures)
Regulations 2022
Pages 24 to 25
and 177 to 183
Employees Pages 16 to 17,
53, 62 to 72
Social matters Pages 16 to 17
and 32 to 33
Human rights Pages 32 to 33
Anti-bribery and
anti-corruption
Pages 28 to 29
and 54 to 61
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
17 Schroders Annual Report and Accounts 2024
Opportunities
to drive
profitable
growth
Meagen Burnett
Chief Financial Officer
We are simplifying and
scaling our operating platform
to focus on where we excel
for clients and, in turn, drive
profitable growth and
enhance shareholder value.
Understanding the drivers of our
financial results
Client demand for Schroders' investment
expertise remained strong in increasingly
complex market conditions, with gross client
inflows in 2024 (excluding joint ventures
and associates) totalling £129.7 billion
(2023: £126.1 billion). We saw demand from
clients across a broad range of investment
styles and mandates, particularly global
equities, corporate bonds, solutions such as
fiduciary management, liability driven
investment and risk-controlled growth, and
securitised credit within Schroders Capital.
Wealth Management flow momentum
remained strong.
Overall, however, we saw a total net
outflow excluding joint ventures and
associates of £10.8 billion. The main driver
of this, beyond typical levels of client
redemptions, was the result of two Scottish
Widows mandate changes. We maintain a
strong and broad strategic relationship
with Lloyds Banking Group.
We continue to invest in our operating
platform to innovate, scale and improve
delivery for clients. In 2024, we started to
realise the benefits of the migration of our
Wealth Management operations from
Zurich to Horsham, UK. We launched
innovative products through our tokenised
insurance linked securities (ILS) capability
and we are actively integrating AI into the
way we do business.
Public Markets: supporting
clients with active management
Our Public Markets business has
addressed four key themes in clients’
portfolios over the last couple of years:
– Global: while clients want to share in the
growth seen in the US, they increasingly
want to manage the concentration risk
associated with very narrow markets.
This has led to strong inflows into our
global equity strategies.
– Income: in an era of higher interest rates
and inflation, clients’ capital needs to
work harder. We launched a new multi-
asset income fund with HSBC Global
Private Banking to address this need.
– Decarbonisation: over two thirds of our
strategic clients have net zero
commitments. We see strong demand
for our active portfolio decarbonisation
solutions across client segments.
– Insurance and outsourced CIO: these
represent large and growing
addressable markets, with higher asset
longevity. Our operating platform,
investment breadth across asset classes
and advisory expertise enable us to build
scale in these channels.
Only by taking an active approach can we
provide solutions that address these
themes. In 2024, for example, we
developed a multi-billion fundamental
global equity solution with a sustainability
lens for a European pension fund who
moved to an active strategy from their
existing passive approach.
Business and financial review
18 Schroders Annual Report and Accounts 2024
By business area, Mutual Funds finished the
year with £1.3 billion of net inflows despite
the headwinds to active flows around the
time of the US election. In the Institutional
business area, net outflows were £6.3
billion, impacted by a net rotation out of
regional equity strategies. In the Solutions
business area, we saw net outflows of £16.6
billion, largely driven by outflows from
Scottish Widows. This masked pension fund
inflows, including a substantial cash flow
matching mandate.
At an asset class level across Public
Markets, fixed income strategies drew £1.4
billion of net inflows, while equities saw
£18.2 billion of net outflows.
Schroders Capital: delivering for
clients in our chosen specialisms
Our specialised private markets business,
Schroders Capital, continues to benefit
from our focused approach. We are
competing in specialisms where we have
deep knowledge of the markets, together
with the networks needed to access
restricted opportunities.
Gross fundraising increased to £10.8 billion
and we delivered positive NNB of £4.5
billion. We recorded positive NNB across all
regions and in each of our pillars: private
equity, private debt and credit alternatives,
infrastructure, and real estate.
Wealth Management: strength of
our client proposition
The strength of our Wealth Management
business has been a key driver of our
resilient results for 2024. Amidst
macroeconomic uncertainties including
electoral change and the Autumn Budget
in the UK, our teams partnered with
clients through the provision of advice
and/or investment management. As a
result of our regional strategy to extend
our Cazenove Capital offering to business
owners and high-net-worth individuals,
we are supporting new clients across the
UK market, for example as we partner
with entrepreneurs as they complete
liquidity events.
We generated NNB of £6.3 billion in the
Wealth Management business last year,
with Cazenove Capital contributing £4.0
billion. In October, we announced the
acquisition of Whitley Asset Management,
signalling our continued commitment to
extending Cazenove Capital’s leading
franchise with UK ultra-high-net-worth
families, successful business owners and
charities.
Joint ventures and associates:
accessing global markets through
collaboration
We leverage global partnerships to deliver
our world-class investment capabilities and
broaden our client reach. These businesses
are typically more cyclical, and we achieved
NNB of £6.1 billion from joint ventures and
associates in 2024. We saw positive, albeit
volatile, flows into our China ventures
where we operate with our long-standing
partner, Bank of Communications China.
The reduced profitability from these
ventures impacted our total share of profit
from joint ventures and associates.
Pleasingly, our associate in India, Axis Asset
Management, and our joint venture in the
UK, Schroders Personal Wealth, both saw
good momentum, with our share of profits
after tax rising to £15.1 million and £9.9
million, respectively.
Cost: disciplined management of
our controllable cost base
In 2024, we saw a modest 2% year-on-year
increase in operating expenses. This was
achieved by limiting non-compensation
cost growth to 3% and keeping
compensation cost growth to 1%. A portion
of our non-compensation costs are related
to services where fees are charged as a
percentage of the AUM we manage. Our
considerable effort to limit cost inflation on
our controllable cost base, in part due to
the cost measures we undertook in 2023,
enabled us to keep cost growth lower than
AUM growth in 2024.
Balance sheet: optimising and
strengthening our capital
position
Last year, we successfully issued our
inaugural £250 million Tier 2 debt. This
strategic move enhanced the efficiency of
our capital stack, reduced our weighted
average cost of capital, and further
strengthened the Group’s overall capital
and liquidity positions.
Meagan Burnett
Chief Financial Officer
5March 2025
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
19 Schroders Annual Report and Accounts 2024
Enhancing outcomes for
shareholders
Q. What did you learn in your
previous role as Chief Operating
Officer (COO) that will influence your
priorities as CFO?
In my role as COO, I had accountability
for operations, technology, change and
transformation across the Group. My
teams developed and implemented an
operating strategy designed to
maximise our investments in technology
and data. This approach aimed to create
an efficient, effective and resilient
platform, underpinning the performance
outcomes our investors deliver for our
clients. Understanding how the business
fits together from front to back enabled
me to recognise the drivers of value and
return on equity. I learned the
importance of finding balance. In my
new role, this will by a key factor in
decision making, such as how to achieve
scale while delivering bespoke client
outcomes, and balancing investing for
growth and maintaining cost-efficiency.
Q. How do clients’ needs shape the
strategic decisions Schroders makes?
Clients’ needs are paramount. We work
closely with our clients to build their
future prosperity, and only by providing
excellent solutions to their investment
challenges can we continue to remain
relevant.
Innovation is crucial: as our clients’ desired
outcomes evolve, so must our offering.
This may be evolving the solutions we can
offer clients, or the way they are
structured. We are looking to harness
innovation to improve client access to our
capabilities, such as launching active ETFs
in Europe.
Q. What are the key drivers to improve
shareholder returns at Schroders?
For me, improving shareholder outcomes
starts with a disciplined and focused
approach to capital investment and
resource management. You can read more
about this and our future focus on page 9.
We are focusing our investment in areas
where we can excel for clients, and in turn,
drive profitable growth and enhance
shareholder value. By streamlining
operations, we boost efficiency and can
reinvest in high-potential growth areas.
Reviewing how we publicly report our
financial performance is another priority
that aims to improve shareholder
outcomes. In 2025, we will redefine the
structure of our income statement and
associated performance measures,
enhancing the transparency of our
reporting.
Vivamus get enim a massa
Public Markets
£ billion
Schroders
Capital Solutions
Mutual
Funds Institutional
Asset
Management
Wealth
Management
Total (excl
JVs and
associates)
Joint
ventures and
associates Group Total
Opening AUM
66.2
228.3
103.5
134.2
532.2
110.2
642.4
108.2
750.6
Transfers
(0.2)
0.2
–
–
–
–
–
–
–
Gross inflows
10.5
34.6
35.3
28.5
108.9
20.8
129.7
448.8
578.5
Gross outflows
(6.0)
(51.2)
(34.0)
(34.8)
(126.0)
(14.5)
(140.5)
(442.7)
(583.2)
Net new business
4.5
(16.6)
1.3
(6.3)
(17.1)
6.3
(10.8)
6.1
(4.7)
Acquisitions
–
–
–
–
–
2.4
2.4
–
2.4
Investment returns
1
(0.4)
1.6
6.0
12.7
19.9
7.9
27.8
2.6
30.4
Closing AUM
70.1
213.5
110.8
140.6
535.0
126.8
661.8
116.9
778.7
1. Includes markets, foreign exchange and investment performance. Foreign exchange decreased AUM including joint ventures and associates by around £7.9 billion
(2023:decrease of £25.8 billion) and decreased AUM excluding joint ventures and associates by £6.9 billion (2023: decrease of £18.6 billion).
Financial performance
AUM including joint ventures and associates
reached £778.7 billion, buoyed by positive
markets and investment performance.
Markets generally performed strongly, most
notably in the US, supported by positive
economic data and lower interest rates.
Markets and investment returns
contributed £38.3billion including joint
ventures and associates, while the
appreciation of sterling reduced AUM by
£7.9 billion. Net outflows of £4.7 billion
were driven by withdrawals from a small
number of clients, most significantly
Scottish Widows.
Average AUM excluding joint ventures and
associates increased 5% year-on-year,
driven by positive investment returns, net of
foreign exchange movements. The benefit
of this was, however, dampened due to the
composition of our NNB, with inflows
continuing to be weighted towards lower-
margin products, which resulted in lower
average fee margins in our Public Markets
business. This, coupled with lower
performance fees and net carried interest of
£63.4 million (2023: £84.2 million), resulted
in net operating revenue of £2,357.7 million,
up 1% year-on-year (2023: £2,334.4 million).
Our share of profits from joint ventures and
associates reduced to £47.6 million (2023:
£51.1 million), mainly due to lower profits
from our long-standing venture with Bank
of Communications in China. This was partly
the result of market-wide fee caps that were
introduced in China in July 2023, as well as
continuing market volatility in the region.
Net operating income for the year was
£2,426.8 million (2023: £2,419.0 million).
Total operating expenses of £1,786.3
million (2023: £1,758.0 million) were up 2%
year-on-year. Within this, operating
compensation costs were £1,123.3 million
(2023: £1,112.4 million), representing a
stable compensation ratio of 46% (2023:
46%). Non-compensation costs were
£663.0 million (2023:£645.6 million),
principally due to higher platform costs as
a result of the increase in average AUM,
with favourable foreign exchange
movements largely mitigating other
inflationary pressures.
Following the impact of both lower
performance fees and reduced returns
from our joint ventures and associates,
operating profit was £640.5 million (2023:
£661.0 million). Statutory profit before tax
ended the period at £558.1 million (2023:
£487.6 million), supported by the non-
recurrence of restructuring charges.
The Board has proposed a final dividend of
15.0 pence per share (2023: 15.0 pence
per share).
Asset Management segment
Asset Management net operating income
for the year was £1,929.1 million (2023:
£1,982.2 million). The benefit on income of
higher average AUM was partially offset by
a softening in the average fee margin as a
result of the shift in our asset class
composition, as well as lower performance
fees and reduced returns from joint
ventures and associates.
Operating expenses in Asset Management
decreased 1% to £1,461.2 million (2023:
£1,471.7 million), reflecting our continued
focus on cost control.
Overall, these movements resulted in
operating profit of £467.9 million
(2023: £510.5 million) for the Asset
Management segment.
Public Markets
Mutual Funds saw positive net flows over
the period, with total NNB amounting to
£1.3 billion (2023: net outflows of £4.2
billion). AUM in Mutual Funds finished the
period at £110.8 billion (2023: £103.5
billion), with net operating revenue of
£710.5 million (2023: £720.5 million). The
net operating revenue margin excluding
performance fees reduced by 3 basis
points to 66 basis points (2023: 69 basis
points), principally due to NNB mix,
reflecting a shift in demand in equities
from regional to global as well as a rotation
into fixed income.
Our Institutional business area saw net
outflows of £6.3 billion (2023: £9.2 billion),
as a result of withdrawals from a small
number of clients. This was more than
offset by positive markets and investment
performance, resulting in Institutional AUM
increasing to £140.6 billion (2023: £134.2
billion). Institutional net operating revenue
was £489.1 million (2023: £499.4 million),
while the net operating revenue margin
excluding performance fees reduced by 1
basis point to 34 basis points (2023: 35
basis points).
Solutions saw net outflows of £16.6 billion
(2023: net inflows of £12.0 billion),
predominantly driven by withdrawals from
Scottish Widows, which accounted for
£13.5 billion. A further £4.9 billion was the
result of successful buyout activity for
pension fund clients looking to derisk. AUM
closed at £213.5 billion (2023: £228.3
billion). Solutions net operating revenue
was £252.7 million (2023: £268.5 million).
The net operating revenue margin
excluding performance fees reduced to
11basis points (2023: 12 basis points).
Schroders Capital
Our private markets business, Schroders
Capital, generated gross fundraising of
£10.8 billion (2023:£9.3 billion). Just over
half of this was generated by the private
debt and credit alternatives pillar, with
strong fundraising in our Junior
Infrastructure Debt Europe III fund. The
remainder was diversified across the other
three asset class pillars. Non-fee-earning
dry powder stood at £4.2 billion at the end
of the year (2023: £4.0 billion).
Schroders Capital NNB was £4.5 billion
(2023: £4.5 billion), helping increase AUM
to £70.1 billion (2023: £66.2 billion). Net
operating revenue including performance
fees and carried interest grew to £426.7
million (2023: £422.8 million). The net
operating revenue margin excluding
performance fees and carried interest
remained at 57 basis points (2023: 57
basis points).
Business and financial review continued
20 Schroders Annual Report and Accounts 2024
Asset Management joint ventures
and associates
Our total share of profits from Asset
Management joint ventures and associates
was £37.1 million (2023: £48.7 million),
reflecting volatility from our interests in
China. Asset Management joint ventures
and associates gathered NNB of £5.7
billion, helping increase AUM by 8%,
which finished the period at £101.2 billion
(2023: £93.9 billion).
Wealth Management segment
Our Wealth Management business
continued to perform strongly in 2024.
Total NNB was £6.3 billion (2023: £6.6
billion), including £0.4 billion from
Schroders Personal Wealth (SPW), our joint
venture with Lloyds Banking Group. Total
NNB for the segment equates to an
annualised growth rate of 5.4% of opening
AUM, in line with our target of 5–7% NNB
per annum.
Wealth Management AUM excluding joint
ventures and associates ended the period
at £126.8 billion (2023:£110.2 billion), while
AUM including joint ventures and
associates ended the period at £142.5
billion (2023:£124.5 billion), up 14%. Net
operating revenue increased by 13% to
£478.7 million (2023: £423.2 million).
Our share of profits from Wealth
Management joint ventures and associates
contributed £10.5 million (2023: £2.4
million), with the increase principally driven
by SPW. Wealth Management net
operating income increased 14% to £497.7
million (2023: £436.8 million), driven by
continued strong NNB and higher
transaction fees. The net operating
revenue margin excluding performance
fees reduced to 40 basis points (2023: 41
basis points), mainly because of lower
interest rates and flows into gilts.
Operating expenses increased to £325.1
million (2023: £286.3 million). Theincrease
in the year principally reflects our
continued investment in the business, both
through strategic hires and enhancements
to our IT. Despite increased expenses,
operating profit for the segment increased
by 15% to £172.6 million (2023: £150.5
million). In light of the overall market
environment, this represents very strong
performance.
Financial strength and liquidity
Our year-end capital position remains
strong, with a regulatory capital surplus of
£919 million (2023: £630 million). During
the year we took advantage of favourable
market conditions and issued £250 million
Tier 2 notes, to strengthen and diversify
the Group’s sources of capital and liquidity
further. The Group’s net assets were £4.5
billion (2023: £4.5 billion).
The different forms of business that we
conduct affect our total assets and liquidity.
Generally, assets that aremanaged by the
Group on behalf of clients are not included
in the consolidated statement of financial
position. There are, however, certain
exceptions to this.
Within Asset Management, certain clients
invest through life insurance policies that
aremanaged by our Life Company,
Schroder Pensions Management Limited.
The assets backing these policies are held
by the Life Company and are therefore
included in the consolidated statement of
financial position along with a matching
policyholder liability. Additionally,
we consolidate certain pooled funds
which we are deemed to control under
accounting standards.
Within Wealth Management, the
subsidiaries that provide banking services
are legally responsible for the banking
assets and liabilities. They are therefore
included in the consolidated statement of
financial position. The assets are managed
to earn a net interest margin while having
regard for the liquidity demands that may
arise from clients.
After adjusting for these structures, the
Group’s total assets comprised cash and
other financial assets of £2.0 billion (2023:
£1.7 billion) and other assets of £4.2 billion
(2023: £4.1 billion).
Financial assets include seed investments
and co-investments. During 2024,
seed investments decreased to £297
million (2023: £314 million) and co-
investments increased to £155 million
(2023: £148 million).
Other assets include goodwill and
intangible assets, which are inadmissible
for regulatory capital purposes, and assets
that support our ongoing operating
activities in the form of working capital.
Other liabilities principally comprise trade
and other payables, lease liabilities and the
Group’s Tier 2 notes. In 2024, the Group’s
provisions increased to reflect required
building repairs. Given the associated
insurance recoverable, this did not have a
material impact on the Group’s net assets.
The Group has a committed revolving
credit facility of £850.0 million provided by
ten banks that matures in November 2029
and which was unutilised at year end
(2023: unutilised).
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
21 Schroders Annual Report and Accounts 2024
Investing for clients
in a changing world
Our active management approach is focused on
addressing clients’ long-term goals in a world of
complexity and change. The research, tools and
operations we have developed are all directed
towards positive investment outcomes for them.
In a world of concentrated and volatile
public markets, clients need an investment
approach that balances risk and reward,
that is agile, and that is future-focused.
They rely on us more than ever to guide
them through the complexities of
protecting and growing their capital.
This is the role of active management.
Trust in our investment, advisory and
wealth management capabilities is
essential as clients increasingly turn to us
for our leadership in long-term, active
management across both public and
private markets.
As social and environmental challenges
become more acute, fundamental insights
in those areas are increasingly important
for investors.
Our active approach
The structural forces shaping economies,
industries and investment portfolios are
becoming more diverse, complex, intense
and fast-moving. Financial markets reflect
the economic and business activity that
drives the underlying economy. Issues that
dominate media headlines – including
artificial intelligence (AI), climate change,
societal trends or geopolitical tensions –
are intrinsically tied to the value of the
assets we invest in. Understanding the
connection and the implications for the
returns we deliver to our clients is critical
to delivering the outcomes they expect.
For example, AI adoption in the US is
running at about twice the pace of
internet penetration in its early years, or
five times the rate of PC use. The physical
damage caused by climate change was
over 50% higher in the last decade than
the previous ten years, and the global cost
of carbon penalties has grown more than
three times faster than inflation over the
last decade. That kaleidoscope of changes
is reshaping profit pools and value, and
will continue to do so. As a result, the
status quo in many industries is being
disrupted more frequently and the
leadership of historically successful
companies undermined.
The winning companies, regions and asset
classes of tomorrow will look different from
the leaders of yesterday. The answers to
successful investment cannot be found
by applying simple formulae. Active
management is the application of the
insights, analysis and forward-looking
judgement that are critical in allowing us
to capitalise on underlying opportunities.
In practice, this means:
– using new sources of information to
inform investment decisions, including
leveraging alternative data sets and AI to
harness new sources of insight;
– understanding and harnessing changing
performance drivers, including the
growing impact of social and
environmental trends on many
industries, and the importance of the
influence we can bring to unlock value
through active ownership; and
– reconsidering the investment outcomes
we seek to achieve where our clients’
objectives change, including a focus for
some clients on sustainability outcomes
as a goal alongside investment returns.
The strength of our investment capabilities
across the firm are as important to our
success as the scale or breadth of our
exposure to different asset classes or
strategies. Evolving and enhancing our
investment processes to deliver the
outcomes our clients expect is therefore
critical to the investment success we have
delivered and are committed to delivering
in the future.
The questions we ask and the analysis we
apply in investment decisions are
changing. Passive strategies may provide
low cost exposure to companies that have
been successful in the past, but active
management is vital to identifying the
winners of the future.
Key components of our active
approach
Research into companies
>10,000
Reports written by 900 analysts and
portfolio managers globally.
Active management expertise
49
Number of investment teams globally
>9,000
meetings with company’s across a
range of topics
Leadership in active management
22 Schroders Annual Report and Accounts 2024
Understanding our clients’
investment needs
The proprietary research insights and
tools we have built are integrated into
investment decisions across the
investments we manage for clients.
We continue to invest in these tools
with a keen eye towards emerging
trends and their implications.
New data and information sources are
becoming more important to investment
decisions. The proliferation of online data
sources – such as review sites, news
analysis or government databases – are
opening up new sources of information.
AI is proving to be a step change, creating
new ways to examine huge volumes of
information quickly, allowing us to focus
on interpretation and assessment of
that information.
In 2024:
– We integrated AI into proprietary
analysis and tools to support analysts
and portfolio managers in gathering
information on companies’ sustainability
practices.
– 49 investment teams reported their
approaches to examining and
integrating sustainability factors into
investment decisions through our
annual firm-wide assessment of
sustainability integration.
– 90% of the strategies we manage and
which we are able to assess using
SustainEX
TM
(our proprietary model
which estimates the potential effect of
externalities on companies and issuers),
achieved stronger scores than their
benchmarks.
Creating innovative products
and solutions
The outcomes our clients expect are also
changing. Investment returns are
foremost, but many of our clients seek to
deliver those returns alongside social or
environmental objectives. For example,
adoption of the UK regulator’s Sustainable
Requirements (SDR) labels reflects client
demand for active management targeting
sustainability outcomes. We were the first
asset manager to announce our intention
to adopt all four of the SDR labels.
In 2024:
– We launched 8 sustainable or thematic
funds and now manage £38.6 billion in
funds we classify as sustainable or
thematic. The assets we manage in those
funds have grown at 30% annually over
the last five years, with many more
strategies managed for individual clients
with specific criteria or objectives.
– We announced our intention to adopt
SDR sustainability labels for 10
strategies.
Actively managing investments
We expect the influence we can bring to
management teams to encourage them to
adapt and change will become more
important as external pressures intensify.
The value we can bring as active managers
extends beyond the companies and assets
we select, and includes the value we can
add to those investments through our
ownership and the influence and support
we can bring to encourage them to
transition towards healthier, more
sustainable business models.
Deep understanding and relationships with
companies have long been an important
part of our active management approach.
We have over two decades of recorded
engagement experience, the scale of which
has grown significantly since the first
engagement was logged in our database in
2002.
As a global leader in asset management,
we have lent our voice and experience to
industry groups and policy makers. We
have been vocal about the need for
markets and the financial services industry
to reform to remain competitive.
In 2024:
– We had over 9,000 meetings in 2024
with management teams across a wide
range of topics
– We engaged with over 3,500 companies
on sustainability-focused topics.
– We published research into the
effectiveness of our sustainability-
focused engagement in driving change
and shareholder returns, leveraging our
long experience to strengthen our
approach.
– We participated in the UK’s Capital
Markets Industry Taskforce, a body
seeking to maximise the impact of
capital market reforms, and globally
responded to 24 policy consultations
directly while working with relevant trade
associations on other consultations.
Active investing for clients’
with sustainability goals
Disruption from AI and technology,
emerging economic or social trends
and corporate leadership can all
have an impact on investment
performance. The political focus on
environmental, social and
governance issues may vary over
time, but businesses that are
managed sustainably are finding
rewards. They may also avoid costs
from the financial penalties that are
today attached to one-quarter of
global carbon emissions. Forward-
looking active management is also
key to understanding and managing
the way that technological
disruption may impact the future
value of investments. The World
Economic Forum estimates that AI
has the potential to unlock over
$4trillion of value across the
global economy.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
23 Schroders Annual Report and Accounts 2024
Meeting climate
commitments
We consider climate change to present significant risks to global
economies, industries and investment portfolios, but it also
offers opportunities. Countries representing nearly 90% of global
economic output have set targets to meet the Paris Agreement
goals of limiting global temperature rise to well below 2°C and
to achieving net zero. Transition may slow in coming years as a
result of the changing political context, however we expect that
growing evidence of the physical and economic costs of inaction
will ultimately drive change. Our understanding of how the
impacts of climate change will affect assets and investments
helps us create resilient investment strategies and deliver the
investment outcomes our clients expect.
Our climate strategy
Our climate strategy covers both the investments we manage for our
clients and our own operations, leveraging four key capabilities: our
insights, ourinfluence, our innovation and our ability to inspire others.
It builds on years of research, risk analysis, proprietary tool
development, and action to understand and manage the risks
and opportunities posed by climate change. We focus on creating
an objective assessment of future risks. Our analysis evaluates
investment exposures to these risks and opportunities. We actively
manage these risks and opportunities through engagement and
stewardship while developing strategies that provide specific climate
exposures to meet client demands.
We have established climate-related targets to reflect and support our
climate change strategy. This includes our targets, validated by the
Science Based Targets initiative (SBTi), confirming that our Scope 1
and 2 targets
1
align with a 1.5°C trajectory and that our relevant AUM
1
are targeted to be fully aligned with a 1.5°C pathway by 2040.
Reporting on climate matters
Our climate-related financial disclosures, prepared in accordance
with the Companies (Strategic Report) (Climate-related Financial
Disclosures) Regulations 2022, can be found on pages 24 to 25
and on pages 177 to 183 in “Shareholder and sustainability
information”. We have also produced a supplemental detailed
Climate Report to provide a more comprehensive view for our
stakeholders in accordance with the FCA UK Listing Rule 6.6.6R(8).
Our Climate Report (which can be found on our website
2
) is our
response to, and is consistent with, all the recommendations and
relevant recommended disclosures of the Task Force on Climate-
related Financial Disclosures (TCFD). These disclosures describe
how we incorporate climate-related risks and opportunities into
governance, strategy, risk management, metrics and targets, and
how we are responding to the expectations of our stakeholders.
1. Includes all in-scope asset classes covered by our SBTi targets: directly
managed listed equity, corporate bonds, real estate investment trusts, and
exchange-traded funds.
2. www.schroders.com/tcfd
2024 key metrics
The investments wemanage
18.5 MtCO
2
e
Financed emissions (Scope 1 and 2)
1
(2023: 22.4 MtCO
2
e)
43.4 tCO
2
e/$m
invested
Carbon footprint (Scope 1 and 2)
1
(2023: 53.9 tCO
2
e/$m)
2.4°C
Portfolio temperature score (Scope 1 and 2)
1
(2023: 2.5°C)
Our own operations
4,162 tCO
2
e
Scope 1 and 2 location-based GHG emissions
(2023: 4,409 tCO
2
e)
100%
Percentage of global renewable
electricity consumption
(2023: 98%)
13,386 tCO
2
e
Scope 3 business travel GHGemissions
(2023: 13,265 tCO
2
e)
33%
Percentage of suppliers (by GHG emissions) with
a science-based target
(2023: 23%)
Climate change strategy
24 Schroders Annual Report and Accounts 2024
Strategy Key pillars of
action
Near-term targets
and 2024 progress (for
science-based targets)
Long-term targets and
2024 progress (for
science-based target)
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
25 Schroders Annual Report and Accounts 2024
2.8°C
Align in-scope
2
portfolios to a 1.5°C
pathway by 2040
2.4°C
Align in-scope
1
portfolios to
a 2.2°C pathway by 2030
39%
Reduce Scope 1 and 2
emissions by 46% by 2030
5
100%
Achieve 100% renewable
electricity by 2025
39%
Reduce business travel
emissions by 50% by 2030
5
33%
Encourage our suppliers to
set science-based targets so
that 67%
7
have done so by
2026
Transitioning
the investments
we manage to
deliver value
over the longer
term
Transitioning
our operations
to lead the way
and have
impact
1
Insights
Measure and
manage exposure
in our clients’
investment
portfolios
2
Influence
Encourage and
support
companies to act
sustainably
3
Innovate
Develop
investment
products and
innovative
solutions to meet
clients’ needs
4
Inspire
Lead by example in
our own corporate
actions
All listed equity and credit
funds in Wealth Management
to have stated a net zero
ambition by 2030
6
Reduce carbon intensity of
Scope 1, 2 and 3 (tenant
energy consumption) in
Schroders Capital Real Estate
by 16% by 2025 and 36% by
2030
4,5
Reduce Scope 1 and 2
emissions intensity of
Schroders Greencoat assets
by 50% by 2030
3
All funds in Wealth
Management to have
achieved net zero or be
on a net zero aligned
pathway by 2040
6
1.5
o
C
science-based pathway
Net zero
by 2050 or sooner
Validated science-based targets.
1. Includes Scope 1 and 2 financed
emissions for Schroders direct listed
equity, corporate bonds, real estate
investment trusts (REITs) and exchange-
traded funds (ETFs).
2. Includes Scope 1, 2 and 3 financed
emissions for Schroders direct listed
equity, corporate bonds, REITs and ETFs.
3. From a 2022 base year.
4. A proportion of Schroders Capital Real
Estate directly invested in UK and
European discretionary mandates.
5. From a 2019 base year.
6. Refers to third-party funds and
Schroders funds on our approved buy
list, which Wealth Management selects
within its discretionarybusiness.
7. By greenhouse gas emissions.
Target end dates are 31 December in all
target years.
Our Risk
Management
framework
We are exposed to a variety of risks as a result of our global
business activities and are committed to operating within a
strong system of internal control. Our Risk Management
framework enables management to identify, manage and
escalate risks so that we can pursue our business strategy
and deliver strong investment performance without exposing
the Group to significant regulatory breaches, losses or
reputational damage.
Managing risks
The Board is accountable for the maintenance of a prudent and
effective system of internal control and risk management. It
assesses the most significant risks facing the business, and also
uses quantitative exposure measures, such as stress tests, where
appropriate, to understand the potential impact on the business.
Non-executive oversight of the Risk Management framework
process with respect to standards of integrity, risk management
and internal control is exercised through the Audit and Risk
Committee.
The Group Chief Executive is responsible for the firm’s Risk and
Control framework. Independent monitoring and reporting of
risks and controls is undertaken by the second line of defence.
Risk management is embedded in all areas of the Group. The
Group Chief Executive, the Chief Risk Officer and the Group
Executive Committee (Group ExCo), as the principal advisory
committee to the Group Chief Executive, regularly review the key
risks we face. Members of the Group ExCo have risk management
responsibility for their respective business areas. Legal entity
boards fulfil their obligations for managing risks in line with
regulatory and legal requirements.
The Chief Risk Officer chairs the Group Risk Committee (GRC),
which meets five times per year and is attended by senior
management across the firm. The GRC reviews and monitors the
adequacy and effectiveness of the Group’s Risk Management
framework, including relevant policies and limits. It also reviews
emerging risks and changes to existing risks.
The GRC is supported by a number of sub-committees, including
the Group Conflicts Committee, the Financial Crime Committee
and the Information Security Risk Oversight Committee. These
sub-committees review and challenge risks and report significant
risk matters to the GRC.
Lines of defence
The first line of defence in managing and mitigating risk consists
of the business functions and line managers across the Group.
Heads of each function take the lead role in identifying potential
risks and implementing and maintaining appropriate controls to
manage these risks. They do this by applying our Risk and Control
Assessment (RCA) process.
Line management is supplemented by oversight functions,
including Risk and Compliance, Legal and Governance, Finance,
Tax, and People and Culture. These constitute the second line of
defence. The compliance assurance programme reviews the
effective operation of relevant key processes against regulatory
requirements.
Internal Audit provides retrospective, independent assurance
over the operation of controls, and forms the third line of defence.
The internal audit programme includes reviews of risk
management processes and recommendations to improve
the control environment. The team also carries out thematic
compliance monitoring work.
We maintain comprehensive insurance cover with a broad
range of policies covering a number of insurable events.
Risk appetite
Our risk appetite statements articulate the levels of risk the
Board is willing to take in pursuit of the Group’s strategy.
They are reviewed and approved annually. They cover all our
key risks (excluding strategic risks, as these occur due to the
environment we operate in, and the Board adjusts our business
strategy to respond to these risks). We have a Group level risk
appetite statement and a number of entity level statements. Each
risk appetite statement is supported by a number of metrics and
tolerances to enable us to provide an assessment of risk position
versus appetite. We monitor these metrics on a quarterly basis
and review and update our risk appetite statements at least
annually, or following periods of organisational change.
Organisational change
We are committed to maintaining stability in the organisation
and for our clients during periods of transition by effectively
managing the risks associated with organisational change. We
have completed the transition to the new Group Chief
Executive and Group ExCo and their plans are being
implemented. As we make efficiency savings by implementing
changes to our workforce, we focus on prioritising control
activities to prevent and detect fraud, and reducing the
reliance on individual expertise through cross-training and
documentation of key procedures. Supporting our clients
while retaining regulatory compliance is a key priority.
We are mindful of the impact organisational change can have
on employee morale. We manage this through regular check-
ins between employees and line managers, by prioritising
workload carefully, and by supporting employees who are
taking on new or expanded roles.
Clients and other stakeholders are at the heart of our strategy
and drive any decisions we make to change what we do. We
focus on maintaining strong client communications,
addressing client questions and fully understanding their
requirements. By managing our risks in this way, we aim to
minimise any disruption to our business activities. Going
forward we anticipate increased use of technology, efficiency
gains and improved workflows will reduce operational risk.
Risk management
26 Schroders Annual Report and Accounts 2024
Areas of focus for
risk management
Supporting our three businesses: Public Markets,
Schroders Capital and Wealth Management
Our Risk and Compliance function continues to provide
effective oversight of our three businesses.
Within Schroders Capital, a new Asset Class Risk and Performance
Committee has been established and is dedicated to the oversight
of private debt and credit alternatives. Within Wealth Management,
a new internal tool has been developed to enhance our liquidity
oversight. In Solutions, which is part of Public Markets, our risk
oversight has been enhanced with automated risk reporting via
the creation of new risk dashboards. We also enhanced the data
and configuration within our core investment management system
to enable a broader set of risk measures to be monitored for
liability driven investments.
Investment and credit risk
Despite strong performance during previous periods of stress, we
have continued to enhance our readiness for future potential
disruption. Initiatives included upgrading our fund liquidity crisis
management plans, rehearsing steps to be taken in the event of
a counterparty default, and creating a playbook to guide decisions
for an event of client non-payment for fund subscriptions.
Increased automation of processes has continued to enable the
replacement of certain manual tasks, allowing risk managers to
focus on other value-add initiatives, and reducing operational risk.
As an example, we have further enhanced our robotic tools which
check that controls and limits across a wide range of portfolios are
implemented and documented accurately.
To support the growing importance of technology in our
investment and operational processes, we have continued to
invest in our governance and controls. We rolled out a new
internal system to monitor user-built tools and control the risks
presented by these. Our Model Governance team, which reports
to the Chief Risk Officer and is independent of the business,
continues to undertake validations of models used in the
investment process to verify their robustness.
Cyber risk
The Board receives regular information from management on key
technology projects and cyber security trends. The Information
Security Risk Oversight Committee oversees the management of
cyber risk. We have continued to make good progress in delivering
the Group-wide multi-year programme to enhance our cyber
defences. In parallel we run an ongoing programme of cyber
testing, with each test simulating a cyber attack. These tests
enable us to assess our progress continually and identify areas
to prioritise.
Attacks by organised crime groups (for example targeted
ransomware) remain a risk for all financial services organisations.
In 2024 we ran a crisis management team simulation to assess the
impacts of a ransomware attack on the organisation and test our
responses to it.
Operational resilience
We continue to progress our operational resilience initiative and
are on track to comply with the UK regulations. Our resilience
capabilities are being further enhanced by a programme to
comply with the European equivalent, the Digital Operational
Resilience Act (DORA). Our work is focused on how we would
respond and recover in the event of a severe disruption to a
critical third party and how we would recover from a severe cyber
attack (as described in the “Cyber risk” section). For the former, we
have undertaken joint scenario tests with critical third parties.
These tests involved table-top exercises where both parties were
presented with a severely disruptive scenario, and together we
worked through how we would respond and recover.
Sustainability
Under the UK FCA’s Sustainability Disclosure Requirements (SDR),
certain types of funds can adopt a sustainability label based on
their investment objectives and characteristics. All of Schroders’
in-scope funds seeking a sustainability label have received FCA
approval for related prospectus updates (where relevant), and
will have applied those labels ahead of the 2April 2025 deadline.
Adopting these labels will help to differentiate our sustainable
product range, making it easier for clients who are seeking
sustainable outcomes to identify opportunities to invest.
Governance of AI
We are embracing generative AI (GenAI) to enhance
productivity and decision-making. Our internal AI assistant,
Genie, is now used by over 3,000 employees each week and
we are already achieving benefits through a number of
targeted use cases across different parts of our business.
Recognising both the opportunities and the inherent risks,
Schroders has prioritised governance and responsible use
since the beginning of its GenAI efforts. Our Responsible AI
Working Group brings together senior representatives from
Legal, Risk and Compliance, Information Security, Data
Governance, People and Culture, and Policy teams to provide
guidance and oversight of our use of the technology. We have
expanded our model governance framework to cover GenAI
models influencing business decisions, to help mitigate the
model risk of these solutions. Our Model Governance team is
developing tools to test and assess the outputs of GenAI
tools.
Globally, regulatory bodies are starting to address the impact
of AI, with regulations such as the EU AI Act, in force from
August 2024, which has a phased implementation over the
following three years. We expect further legislative
developments in other jurisdictions. We are actively
participating in taskforces and consultations where
appropriate.
The Board has received regular updates on our AI strategy as
it has been progressing.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
27 Schroders Annual Report and Accounts 2024
Risk assessment
Market conditions over the last few years have demonstrated
the importance of having robust emerging risk processes.
Emerging risks and changes to existing risks are identified
throughout the year by the first line of defence or through the
horizon scanning and monitoring activities performed by the
second line. They are reviewed and discussed at relevant risk
committees (for example, the GRC and its sub-committees or at
the Asset Class Risk and Performance committees). Those relevant
to specific entities are discussed at entity Boards and those
affecting the Schroder Group are considered by the Audit and Risk
Committee and Board.
Periodically, we also complete a formal assessment of the risks
faced by our business using a top–down and bottom–up
approach.
The top–down approach uses analysis from the Risk team and
discussions with senior management and subject-matter experts
around the Group. Existing risks and emerging risk trends are
reviewed against the current internal and external environment,
geopolitical factors, market conditions, changing client demand
and regulatory sentiment. Each risk is then analysed to assess how
it can be managed and mitigated.
The bottom–up approach uses the results from our RCAs, trends
in risk events and high-impact issues logged in our operational
risk database.
The results of these assessments are used to inform our key risks,
which are presented to the GRC prior to the Audit and Risk
Committee and Board.
We have reviewed the list of key risks and identified a sub-set that
represent the Group’s principal risks. This is not an exhaustive list,
but these are the principal risks most likely to impact our strategy,
business model, external reputation and future performance. The
numeric icons are for presentational purposes only and do not
indicate a rank. The risks represent our exposure after mitigating
controls are applied.
Trend arrows are included below to show our assessment of how
our risk profile has changed since last year. Commentary to
explain the changes can be found on pages 29-31.
We confirm that the Group has an effective risk and controls
process, supported by an appropriate governance framework.
The strategic risks we have identified have helped
to shape our strategy
Principal risks
2024
2023
Business model disruption
Changing investor requirements
Conduct and regulatory risk
Fee attrition
Financial crime risk
Financial instrument risk
Information security and technology
Investment performance risk
Market returns*
Operational process risk
People and employment practices*
Product strategy and management
Reputational risk
Sustainability including climate change
Transformation risk* n/a
*In 2024 these risks remained at the same level as the prior year. Since
31December 2024, these risks have increased, which is reflected in the trend
arrows above. Explanations for the increases can be found on pages 29 to 31.
Movement versus prior-year
position
Categories of risk
Increased
l
Strategic risk
Remained the same
l
Business risk
Decreased
l
Operational risk
Risk management continued
28 Schroders Annual Report and Accounts 2024
Business model disruption
We continue to invest in our technology platform to
support our business and embrace new technologies
such as AI with an appropriate governance framework,
including a dedicated AI Steering Committee, training
and awareness.
We regularly monitor developments in countries subject
to geopolitical risk and take steps to protect our people
and assets where necessary. This includes monitoring
and reviewing portfolio exposures, potential single
name and/or sector vulnerability, and possible
outcomes under different scenarios. Dedicated financial
crime and compliance teams are in place to deal with
potential executive orders or sanctions.
Our business model could be disrupted by a range of external factors,
including technology advancements such as AI, product evolution and
market participants as well as protectionism and deglobalisation.
Geopolitical turmoil, including sanctions and conflict, could impact our
domestic business activities. For example, heightened tension between
China and the West could affect the value of Chinese assets in which
we invest on behalf of our clients. The opportunities and potential risks
from AI are also recognised.
This risk has stabilised at the higher level reported last year.
Changing investor requirements
We have established a clear structure with Public
Markets, Schroders Capital and Wealth Management
to serve different types of investor demands
efficiently.
We continue to focus on developing our investment
capabilities, expanding into new investment types and
specific areas of expertise, and commit seed capital to
support product innovation for future growth.
Client requirements are evolving rapidly. Failing to adapt or evolve our
business model and product range to reflect these changes could lead
to a decrease in AUM. Sustainability is a significant part of many of our
clients’ considerations and we expect climate risks to continue to
feature in future investment requirements and offerings.
Demand for many wealth management products continues to persist.
There is a risk we do not grow and evolve to respond to this demand
and retain and attract the right people to serve our wealth
management clients.
Conduct and regulatory risk
We promote a strong compliance culture and seek to
maintain good relationships with our regulators,
engaging with them openly and regularly to keep them
abreast of our thinking and plans. We also encourage
appropriate conduct and regulatory compliance via our
conduct risk framework, supported by training and
compliance assurance programmes. To reinforce our
commitment to integrity further, we have a robust
whistleblowing process that empowers employees and
external parties to anonymously report concerns without
fear of retaliation, ensuring that all voices are heard and
issues are investigated and addressed promptly.
Client detriment may arise from inappropriate conduct of our staff or
those of counterparties, suppliers and other third parties we engage,
including failure to meet regulatory requirements (for example with
respect to conflicts), poor behaviour, or failing to meet appropriately
our clients’ expectations. In 2024, we saw more clarity from certain
regulators on their sustainability expectations, but there continue to be
varying approaches, and scrutiny of greenwashing risk remains high.
Fee attrition
We have increased client access to private markets,
for example through Future Growth Capital. We
continue to focus on wealth management which
provides diversified fee income, and this year
extended our family office capability by acquiring
Whitley Asset Management.
Fee attrition may be caused by increased price competition in active
management resulting from operational efficiency improvements
implemented by peers; reduction in the costs of passive products
(which puts downward pressure on the cost of active management);
clients allocating more of their assets to passive products and
increased cyclical demand for lower-margin strategies such as fixed
income. This has resulted in downward pressure on traditional active
management fees and therefore this risk remains at the elevated level
reported in prior years. We are also exposed to the risk of
intermediaries taking a greater share of revenue streams.
Financial crime risk
We are fully committed to mitigating financial crime
risks to protect our clients, working relationships, our
business and the wider global economy. Risk-based
client take-on and review processes are among our
key controls to address the risks of money laundering
and other financial crimes. Trading is subject to clear
policies and to transaction surveillance processes.
Financial crime oversight is provided by dedicated
financial crime compliance officers and anti-money-
laundering reporting officers, and is overseen by the
Group Financial Crime Committee.
Financial crime risks include bribery, corruption, fraud (including cyber
crime), money laundering, sanctions evasion, tax evasion, as well as
proliferation and terrorist financing. Financial crime can lead to
significant financial losses, reputational damage, and legal penalties for
both individuals and the organisation. Financial crime can also impact
our clients, and undermine market integrity and consumer confidence.
In addition, the fraudulent impersonation of Schroders can indirectly
impact our reputation if members of the public are affected. Financial
crime takes many forms and includes both external and internal
threats.
In 2024 there has been an increase in the number of fraudulent
attempts potentially impacting either our clients, members of the
public, our employees, or our business. These are increasingly
sophisticated, including the use of impersonation and AI. The top
fraudulent attempts include brand (email hacks and investment
product frauds) and staff impersonation. The residual risk and impact
for Schroders remains low, hence the trend remains stable.
Financial instrument risk
We manage capital, liquidity and the Group’s own
investments through Board-set limits and through the
Group Capital Committee. Equity market and credit
spread risks in seed capital are hedged where it is
economic and practicable to do so, and foreign
currency Group investments are hedged back to
sterling. We monitor our credit and counterparty
exposure in the Group balance sheet, bank lending
portfolios and in our client assets.
We face market, credit, liquidity and capital risks from movements in
the financial markets in which we operate, arising from holding
investments as principal. Heightened geopolitical uncertainty is the
primary risk to forward-looking volatility. Of particular note are tensions
in the Middle East and uncertainty around global government policies.
On the positive side, falling inflation in major economies is facilitating
reductions in central bank base rates.
Failure to manage market, credit and liquidity risks arising from
managing AUM on behalf of clients would be considered an
operational process risk.
Description How we manage this
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
29 Schroders Annual Report and Accounts 2024
Information security and technology
We have a dedicated Information Security function
responsible for the design and operation of our
Information Security Risk framework, which includes
oversight of critical third parties’ cyber capabilities.
Information security risk is overseen by specialists
within both the second and third lines of defence and
is monitored by the Information Security Risk
Oversight Committee. We operate a Global
Technology Risk Committee to oversee operational
risk associated with IT services across the
organisation.
A Responsible AI Working Group has been established
to provide guidance and oversight of our use of the
technology.
Our data loss prevention controls seek to prevent the
loss of sensitive information and intellectual property.
We monitor staff closely and act decisively in closing
down system access when roles change, or when staff
are at risk of redundancy or leave the firm.
Information security risk relates to the confidentiality, integrity or
availability of services being negatively impacted by the activities of a
malicious insider or external party. Technology risk relates to the failure
to deliver scalability, privacy, security, integrity and availability of
systems that leads to a negative impact on the Schroders business and
our client experience. Advances in AI and deep-fake technology create
opportunities for more advanced social engineering techniques to be
used in cyber attacks. These advances and other information identified
through our threat intelligence and active cyber testing progress
continue to provide insight into the areas we should focus on to
enhance our cyber defence capabilities.
The overall transition to cloud-based services has yielded substantial
benefits to our organisation but has also meant we are reliant on the
cloud service provider, which brings its own risks. The move of the
service centre from Zurich to Horsham has improved the integration of
the Wealth Management technology into Group technology. Cyber
threats, stemming from highly capable criminal organisations and
state-sponsored entities, persist and continue to grow, but we
continually adapt and advance in response to these threats. There is a
risk of data loss as we make changes to our workforce. Overall the
trend remains stable.
Investment performance risk
We have clearly defined investment processes
designed to meet investment targets within stated
parameters, which are subject to independent review
and challenge.
Oversight of both risk and performance is embedded
in our business processes and governance. In 2024,
58% of client assets outperformed benchmarks over
three years and 76% outperformed benchmarks over
five years.
There is a risk that portfolios may not meet their investment objectives
or that there is a failure to deliver consistent and above-average
performance. There is a risk that clients will move their assets
elsewhere if we are unable to outperform competitors or unable to
deliver the investment objectives. The higher interest rate environment
can impact clients’ performance expectations and our ability to meet
them and may require adjustments within strategies. Strong
investment performance is critical to the success of Schroders. In 2024,
while our three-year investment outperformance fell below our target
of 60%, our one- and five-year investment outperformance was strong,
hence this risk is at the same level as reported last year. Additionally, in
the latter part of 2024, private markets continued to revert to pre-
pandemic levels in terms of fundraising, and recovered in terms of
investment activity and valuations, creating a favourable capital
demand/supply balance for new investments.
Market returns
We have diversified income streams across a range of
markets to mitigate a considerable fall in any one area.
Excluding associates and joint ventures, AUM from
Private Markets and Wealth Management was
£197billion in 2024.
Our focus on growing our Schroders Capital product
range and investment capabilities, as well as the
continued success of our Wealth Management
business, allows us to have a broader range of income
streams which are less directly linked to markets.
Our income is mainly derived from the value of the assets we manage.
Falling markets reduce our AUM and therefore impact revenues. They
also impact our ability to deploy cash within private market funds and
to raise new money for these funds. Global economic uncertainty and
geopolitical risks, for example in response to the situations in Ukraine
and the Middle East, make markets unpredictable for active
management. Foreign exchange rates are a key factor in our financial
performance as we are sterling denominated with earnings in other
currencies.
This risk has increased in 2025 due to uncertainty over future changes
to global government policies, and rapid reactions, by other countries,
to these potential changes.
Operational process risk
Our key business processes are reviewed regularly
and the risks assessed through the RCA process.
Operational risk events are reviewed to identify root
causes and implement control improvements. When
we undertake change, such as acquisitions, we assess
new processes that may arise. We work with acquired
firms to move them onto our platforms (where
appropriate) and to align our policies. We have a well-
established process to assess the risks within our
supply chain. We review suppliers throughout the
supplier life cycle to identify potential risks which may
impact the quality or continuity of service.
The risk of failure of significant business processes, such as compliance
with fund or mandate restrictions, fund pricing, trade execution for
investment portfolios, whether these occur within Schroders or
appointed third parties. It includes operational integration of
acquisitions as there may be some risks while newly acquired firms are
operating on different platforms, and before they are fully aligned to
Schroders’ policies. It also includes the ineffective management of joint
ventures and associates.
People and employment practices
We regularly review our employee value proposition.
Deferred compensation arrangements targeted at key
employees support retention, and succession and
development plans are in place for key roles. We
monitor employee engagement and morale through
regular pulse surveys and look at these scores when
assessing performance of each business area. We
have policies and procedures to manage employee
issues appropriately, handling them fairly and in
compliance with local legislation.
For more details of how we are mitigating risks relating
to organisational change see ‘Transformation risk’ on
page 31 and ‘Organisational Change’ on page 26.
People and employment practices risk may arise from an inability to
attract or retain key employees to support business activities or
strategic initiatives; non-compliance with legislation; failure to manage
employee performance and morale; and risk of disputes with
employees.
As at 31 December 2024, the morale of the workforce generally
remained strong, as evidenced by our pulse survey results. However,
we are mindful of the impact organisational change and a tighter cost
environment can have on morale and employee productivity, as well as
increasing the likelihood of employee disputes. Continued retention of
key talent remains a focus.
Description How we manage this
Risk management continued
30 Schroders Annual Report and Accounts 2024
Product strategy and management
Risks are managed within our product frameworks,
which include our Commerical Assessment Forum,
regional Product Development Committees and
Product Governance Committee. Ongoing
performance is overseen by the Asset Class Risk and
Performance Committees.
We have a Liquidity Risk Management framework and
monitor the liquidity of our products on an ongoing
basis. There is a process to raise awareness of funds
identified as having more challenging liquidity profiles
so that any changes to client sentiment (or potential
redemptions) would be notified to relevant teams
rapidly, to reduce potential liquidity risk issues.
Where we make changes to our product range these
changes will be fully explained to clients and their
advisers and we will work with them to identify
suitable alternatives.
There is a risk that our product or service offering does not provide
access to strategies that will help investors to meet their objectives.
There is also the risk that products are not accurately described, do not
perform in alignment with their investment objectives for a sustained
period, or that product liquidity is not consistent with the product
description or the redemption requirements of investors. The growing
offering of Schroder products investing in private markets that offer
elements of liquidity under different terms highlights the importance of
having a good Liquidity Risk Management framework.
In 2024 we continued to identify products which fell below their
minimum viable size from a complexity and sales perspective.
Continuing to offer these products would impact the efficiency and
scalability of our business. As a result, in 2025 we plan to simplify our
product range.
Reputational risk
We consider reputational risk when initiating changes
to our strategy or operating model and focus on
maintaining high standards of conduct. We have a
number of controls and frameworks to address other
risks that could affect our reputation, including:
financial crime, investment risk, client take-on, client
communications, conduct risk, whistleblowing and
product development. Our Schroders appointed
Board members oversee the activities of joint
ventures and associates, supported where necessary
by oversight committees.
We have established a greater awareness of
reputational risk across the Group, and at the Group
ExCo, enabling us to be better equipped to respond to
reputational risk issues as and when they occur.
Potential reputational risk arising from our use of AI is
being managed through our AI framework.
This may arise from poor conduct, judgement or risk events due to
weaknesses in systems and controls and may lead to loss of assets or
inability to win new business. In recent years we have extended our
business through a number of acquisitions. Reputational issues in joint
ventures and associates where we have limited control of the outcome
could adversely impact the Group.
The rise of AI provides opportunities for efficiency but also gives rise to
potential reputational risk. Social media exacerbates reputational risk
due to the pace at which information or disinformation can be spread,
and how the information may be perceived by different stakeholders. It
has also increased the complexity of Schroders brand impersonations,
making them more onerous for us to take down.
Sustainability risk including climate change
We have developed a range of proprietary tools to
understand better the potential effects of
sustainability risks, including climate change, on the
portfolios we manage. We use ESG risk toolkits to
support day-to-day risk oversight and formal review
and challenge of investment risk at Asset Class Risk
and Performance Committees. We have an
Integration Accreditation framework which we use to
assess the integration of ESG factors into our
investment desks’ processes and re-accredit them on
an annual basis. Regarding climate specifically, we
have developed a Net Zero Dashboard, which enables
our investment teams and central risk function to
monitor the temperature alignment of portfolios and
track our progress against our business-wide net zero
commitment.
All of Schroders’ in-scope funds seeking a
sustainability label have received FCA approval for
related prospectus updates (where relevant).
Failure to understand, accurately assess and manage investment risk
associated with sustainability factors within assets and portfolios, and
to appropriately articulate the risks, and our commitments in relation
to them, to clients and stakeholders. This may lead to poor investment
decisions, and a failure to offer appropriate sustainable products or to
meet our clients’ expectations, impacting our performance, brand and
reputation. A failure to meet corporate climate change targets may
have a similar impact.
In 2024, as political and social attitudes towards sustainable and
climate investment have diverged, with critical voices becoming louder,
our action and conviction in their importance presents regulatory and
demand risks to our business in some markets. There is a risk that
clients that are critical of sustainability may choose to invest elsewhere
if they perceive our position on sustainability as being different from
theirs. This could lead to a reduction in AUM. Conversely, in the UK the
opportunity to apply for a sustainability label under SDR will enable us
to differentiate our product range, which will be attractive for some
clients. Therefore this risk remains as the same level as reported
previously.
The regulatory aspects of this risk are captured within “Conduct and
regulatory risk” above. The impact of climate on each of our principal
risks is set out in our Climate Report.
Transformation risk
Our focus is on identifying areas where we can be
more efficient while enabling the business to continue
to grow. Our transformation plans are being carefully
designed with a long-term outlook and clients at the
centre of our decisions.
We have established a Group Transformation
Planning Office to ensure that all initiatives are
effectively coordinated across the business. This office
sequences activities in a manner that mitigates
inherent risks and is closely managed. Communication
is handled with care, and there is oversight from
senior individuals who maintain strong connections
with the Group ExCo.
Failure to manage and/or deliver transformation effectively across the
firm could impact our ability to achieve our strategic objectives.
Description How we manage this
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
31 Schroders Annual Report and Accounts 2024
Our stakeholders
This section highlights our proactive approach to stakeholder
engagement and outlines how their interests have shaped our
decisions throughout the year.
Clients Shareholders Our people
Building our clients’ future
prosperity
Our purpose is to create prosperity
together. Our vision is to partner with our
clients, providing trusted advice and to
invest in the assets and markets that
matter to them, building their future
prosperity through excellent investment
outcomes.
Delivering long-term sustainable
value for our shareholders
The engagement and support of our
shareholders is vital to achieving our
strategic objectives and driving business
growth. The support of our shareholder
base plays a crucial role in endorsing the
long-term approach we take in managing
our business.
Fostering a purpose-led, inclusive
andhigh-performing culture
Our people are vital for delivering strong
investment performance and driving
positive change. We attract and develop
talented individuals while fostering an
inclusive, purpose-driven and high-
performing culture. Schroders values
diverse perspectives and provides growth
opportunities for all employees.
This commitment enhances our clients’
experience by offering diverse insights and
innovative solutions.
How do we engage with them
and consider their interests?
In 2024, our commitment to engaging with
clients and understanding their interests
has continued to evolve through our focus
on four global client segments. This
strategic approach enables us to gain
deeper insights into the specific needs and
challenges our clients face, allowing us to
combine complementary capabilities
across the firm to deliver tailored solutions.
Our Client Group remains central to our
efforts, with client service teams playing a
crucial role in delivering exceptional
experiences. Global segment specialists
collaborate with regional client teams to
ensure that our services are locally relevant
while harnessing segment expertise to
resonate with clients.
Our Client Insights Unit is a cornerstone of
our data-driven approach, facilitating the
analysis of internal and external data.
Segment knowledge and regional insights
ensure our messages are relevant and
impactful. We foster ongoing dialogue
through our thought leadership initiatives,
global events, and targeted client feedback
initiatives.
How do we engage with them
and consider their interests?
The Board actively engages with
shareholders, using various channels to
facilitate communication, and receives
regular updates on these interactions.
Our AGM serves as a key platform for
engagement, offering both in-person and
virtual participation. We also arrange
roadshows that follow our results
announcements to update shareholders.
Throughout the year, we keep our
shareholders informed of progress
through meetings hosted by either the
Investor Relations team or senior
management. In the last quarter of 2024,
both Richard Oldfield and Meagen Burnett
met with our largest shareholders to
continue these key relationships.
How do we engage with them
and consider their interests?
We engage with our people through in-
person events and digital channels,
including videos, an internal magazine, and
the annual People and Culture calendar.
Our Group Chief Executive and Group
Executive Committee (Group ExCo)
members share insights through
personalised video blogs and respond
directly to colleague questions in global
town hall meetings. Additionally, we
organise “Pulse Points”, which feature
discussions with the Group ExCo.
The Group Chief Executive meets with
smaller groups for updates and questions
during “Inside Schroders Lite” sessions
held in London and globally throughout
the year.
Our Global Employee Forum offers an
open platform for employees to share
concerns and ensures regular feedback to
the Board.
To understand employee needs, we
conduct pulse surveys, host Q&A events,
and collaborate with Employee Resource
Groups (ERG) for insights.
Outcomes
An independent global study on asset
management found that Schroders ranked
5th in brand awareness across more than
2,600 managers. Our strategic client review
results show positive sentiment regarding
assurance and trust in Schroders, along
with the empathy of client teams. We
continued to embed our Client Group
structure, extending our insights into
clients and their needs. This has influenced
the expansion of our product range and
offerings in public and private markets.
Outcomes
The interests of our shareholders closely
align with those of our clients. Meeting
client needs allows us to deliver value to
those who have invested in our business.
Engaging with shareholders helps us
understand their needs and has been a key
consideration in the development of the
Group’s strategy. We tailored our Q3 2024
results announcement in response to
feedback from shareholders and the wider
market.
Outcomes
In our pulse survey, 87% of employees
expressed pride in working for Schroders,
exceeding external benchmarks and
indicating strong engagement. We are
committed to transparency and consulting
with ERGs, employee-led networks, to
achieve our 2030 inclusion aspirations
(taking into account requirements in the
local markets in which we operate).
Stakeholder engagement
32 Schroders Annual Report and Accounts 2024
Section 172 statement
This section forms our Section 172 disclosure, describing how the directors
considered the matters set out in section 172(1)(a) to (f) of the Companies Act
2006. The Board is committed to promoting the Company’s success while
considering the interests of other stakeholders. Examples of how the Board has
considered the interests of the Group’s stakeholders appear throughout this
report. Specific examples of how the Board considered their interests in relation
to its principal decisions made during the year areset out on page 47.
For further information please refer to our KPIs
on pages 2 to 3, People and community on
pages 16 to 17, Leadership in active
management on pages 22 to 23, and our
Climate-related disclosures on pages 24 to 25
and 177 to 183.
Wider society External suppliers Regulators
Supporting our communities and
the environment
As a responsible steward of assets, we
have developed strategies which aim to
deliver positive financial returns to our
investors while making a measurable
positive contribution to society and the
environment. These strategies are in
keeping with client mandates.
Working with trusted partners
Our global network of external service
partners and suppliers are essential to
delivering our corporate strategy. We are
committed to the principles of the Prompt
Payment Code and aim to treat suppliers
fairly and consistently. They supplement
our infrastructure, provide expertise and
specialised skills which helps us operate
our business effectively.
Building respectful relationships
As a global business, we are committed
to collaborating and engaging with key
regulatory stakeholders, including local
and regional regulators, exchanges, non-
governmental organisations, and trade
associations. Through our participation,
we share insights, support policy
development, share best practices, and
advocate for better-functioning markets.
How do we engage with them
and consider their interests?
Our Investment teams engage investee
companies in their transition to sustainable
business practices. Our Engagement
Blueprint outlines our principles for
engaging with these companies, where we
consider issues important or potentially
important to their long-term performance,
including establishing targets, focusing on
material sustainable risks and
opportunities, monitoring progress and
voting in accordance with our active
ownership principles.
We benefit communities worldwide
through fundraising and volunteering.
Our Schroders Giving partnerships
amplify our societal impact, and our
employees help select the causes we
support.
Respecting human rights and preventing
violations, such as modern slavery, remains
a priority.
How do we engage with them
and consider their interests?
Our Procurement Policy governs the
sourcing, selection, onboarding,
management, oversight, and reporting of
suppliers. It outlines the roles and
responsibilities required to effectively
manage our supplier relationships.
Our Supplier Code of Conduct establishes
clear standards for ourselves and our
suppliers regarding human rights, ethical
sourcing, financial crime, health and safety,
and the environment.
Day to day oversight and engagement is
conducted by our Procurement team and
relevant business units. Material issues are
escalated where necessary.
Throughout 2024 we have been actively
reviewing our global supply chain to
rationalise supplier numbers and enable a
more focused and targeted engagement.
How do we engage with them
and consider their interests?
In addition to our compliance and risk
teams who directly liaise with regulators,
we have a dedicated public policy presence
in the UK and in Brussels for the EU. This
team works closely with colleagues
globally, leveraging their knowledge and
market expertise.
Our Public Policy team engages regularly
with officials, and our responses to formal
consultations are available on our website
1
.
Senior management maintains regular
meetings with regulators, fostering strong
relationships. The Audit and Risk
Committee receives reports on regulatory
engagement and the potential impact of
regulatory changes on our business.
Through our engagements, we aim to
comply with current requirements, shape
future ones, and ultimately provide better
service to our clients, while contributing to
a competitive and resilient financial system.
Outcomes
In 2024, we met with over 9,000
management teams on a wide range of
topics, and engaged with over 3,500
companies on sustainability-focused topics.
A solar farm installation was unveiled at the
Horsham campus, marking a significant
milestone in the Group’s sustainability
journey. We committed £5.9 million to
charitable causes, and continued our
Global Volunteer Recognition Scheme.
Modern slavery training was provided to all
employees, detailing the scale and
complexity of these issues.
Outcomes
We are dedicated to ensuring fair
treatment of suppliers, recognising them
as essential stakeholders. We ensure fair
payment practices by making timely
payments to our suppliers in accordance
with agreed terms. Our annual Modern
Slavery Statement will be approved by the
Board and published later in 2025. This
details our risk assessment and due
diligence processes for suppliers regarding
modern slavery.
Outcomes
In 2024, our Public Policy team addressed
key topics, including UK primary markets,
pensions reforms, and European
developments related to sustainability
disclosures and naming requirements.
Ongoing engagement with supervisory
teams covered topics such as operational
resilience, Consumer Duty, sustainability,
and liquidity risk. We also participated in
the Bank of England’s system-wide
exploratory scenario (SWES) to enhance
understanding of firm behaviour in
stressed financial market conditions.
1. www.schroders.com/policymakers/
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
33 Schroders Annual Report and Accounts 2024
Viability and going concern
statement
In accordance with the UK Corporate Governance Code, the
Directors have carried out a robust assessment of the key
risks facing the Group and expect that Schroders plc will
continue to be viable for at least the next five years.
Assessment of prospects
The five-year period to December 2029 is consistent with the
Group’s strategic business planning and forecasting period.
The Group’s strategic and financial planning process includes
a detailed review ofthe business model and key assumptions.
It is led by the Group Chief Executive and Chief Financial Officer
in conjunction with management teams. The outlook was most
recently updated in February 2025. The business planning
process considers the risks that may materially impact the
Group, and assesses the need for business model changes.
The business plan reflects the Group’s strategy and diversified
business model, which aresummarised on pages 12 to 15 and
10 to 11 respectively.
Key assumptions underpinning the financial planning process
include: AUM growth from both markets and net new business;
changes to net operating revenue margins owing to changes in
business mix, planned business activity and industry-wide margin
pressures; and additional costs including those arising from
continued investment in the development of thebusiness.
Progress against financial budgets and key objectives are
reviewedthroughout the year by both the Board and the Group
Executive Committee (Group ExCo), along with periodic reviews
of the capital and dividendpolicies.
Assessment of viability
The assessment of the Group’s viability requires the Directors to
consider the principal risks that could affect the Group, which are
outlined on pages 28 to 31. The Directors review the key risks
regularly and consider the options available to the Group to
mitigate these risks so as to ensure the ongoing viability of
the Group.
Stress testing is performed on the Group’s business plan
and considers the impact of a number of the Group’s key
risks crystallising over the assessment period. This includes
consideration of new and emerging risks, identified through
the business planning process, that could have a material
impact over the five-year planning period.
The severe but plausible stress scenarios applied to the business
planinclude consideration of the following factors:
– A deterioration in the value of our AUM, for example as a result
ofa severe period of market stress, the return of significant
inflationary pressures combined with a marked slowdown in
global growth, or the early crystallisation of certain climate
change risks
– A significant decline in net operating revenue margins
reducingprojected revenues
– The impact of a material operational risk event or poor
performance which could lead to reputational damage and
significant outflows of our AUM
– An increase in the ratio of total operating expenses to net
operating income
The Group also assesses the impact of regulatory stress
scenariospublished by the Prudential Regulation Authority.
Thestress scenarios are consistent with those used in the
Group’sconsolidated Internal Capital Adequacy Assessment
Process and Internal Liquidity Adequacy Assessment Process.
Having reviewed the results of the stress tests, including a
scenario that combines a number of the factors set out above, the
Directors have concluded that the Group would have sufficient
capital and liquid resources and that the Group’s ongoing viability
would be sustained. In drawing this conclusion, the Directors
assessed the management actions that are available to the Group
and were comfortable that they are sufficient in order to maintain
adequate capital and liquidity surpluses. The Directors also have
regard to business model changes that may be required given
the new environment in which the Group would be operating.
It is possible that a stress event could be more severe and have
agreater impact than we have determined is plausible. In this
context,we conduct reverse stress tests, which demonstrate the
unlikely and very extreme conditions required to make our
business model non-viable.
The Directors’ current, reasonable expectation is that Schroders
plc will be able to continue in operation, meeting its liabilities as
they fall due, over a viability horizon of at least five years. The
Board’s five-year viability and longer-term assessment is based
on information known today.
Going concern
The going concern disclosure below provides an
assessment of the Group's ability to continue operating for
at least the next 12 months.
The Group’s business activities, together with the factors
likely to affect its future development, performance and
position, are set out in this Strategic report. In addition, the
financial statements include: information on the Group’s
approach to managing its capital and financial risk; details
of its financial instruments and hedging activities; and its
exposures to credit and liquidity risk.
The Group has considerable financial resources, a broad
range of products and a geographically diversified
business. As a consequence, the Directors believe that the
Group is well placed to manage its business risks in the
context of the current economic outlook.
Accordingly, the Directors have a reasonable expectation
that the Company and the Group have adequate resources
to continue in operational existence for a period of at least
12 months from the date the Annual Report and Accounts
is approved. They therefore continue to adopt the going
concern basis in preparing the Annual Report and
Accounts.
Pages 1 to 34 constitute the Strategic report, which was approved
bythe Board on 5March 2025 and signed on its behalf by:
Richard Oldfield
Group Chief Executive
5March 2025
Viability and going concern statement
34 Schroders Annual Report and Accounts 2024
Governance
Board of Directors and Company Secretary 36
Corporate governance report 40
Nomination and Governance Committee report 50
Audit and Risk Committee report 54
Remuneration report 62
Directors’ report 84
Statement of Directors’ responsibilities 88
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
35 Schroders Annual Report and Accounts 2024
Leading a world-
class business
Collectively responsible for the management, direction and
performance of the Company
Nomination and Governance
Committee
Audit and Risk Committee
Remuneration Committee Chair
Skills, experience and contribution
Principal current external
appointments
Elizabeth was appointed as an independent non-executive Director in
September 2021 and became Chair at the conclusion of the 2022 Annual
General Meeting.
Elizabeth is a non-executive Director of BAE Systems plc, Chair Emerita
of the Impact Investing Institute and a Trustee of the British Museum
Trust. She was previously the CEO of Allianz Global Investors and a non-
executive Director of Morgan Stanley Inc. and Pearson plc.
Elizabeth is a leading figure in financial services with over 45 years’
experience. Elizabeth is active in representing the investment industry
and developing standards. Elizabeth has significant expertise in asset
management, impact investing and sustainability, and brings a wealth of
investor, governance and boardroom experience to the Board.
– Non-executive Director of
BAE Systems plc
– Chair Emerita of the Impact
Investing Institute
– Trustee of the British
Museum Trust
Dame Elizabeth Corley
Chair
Richard was appointed as Group Chief Executive on 8 November 2024,
having joined Schroders in October 2023 as a Director and Chief
Financial Officer.
Richard is a chartered accountant and was Network Vice Chairman and
Global Markets Leader at PricewaterhouseCoopers (PwC) until October
2023, where he led market-facing activities, initiatives and strategy. Prior
to this, he held several senior management positions at PwC UK,
including Head of Clients and Markets, Head of Strategy and
Communications, and UK Banking and Capital Markets Assurance
Leader. His experience includes time spent working across Africa, Asia,
Europe and North America.
Richard brings a deep capability in leading an international business,
combined with technical and strategic capabilities. His global perspective
and his experience in advising large multinational financial services
organisations will help us to continue to deliver our strategy.
– Trustee and Finance and
Property Committee Chair
of The Duke of Edinburgh’s
International Award
Foundation
– Member of the FCA
Practitioner Panel
Richard Oldfield
Group Chief Executive
Meagen joined Schroders in January 2023 as Chief Operating Officer. On
1 January 2025, she became Chief Financial Officer, overseeing the
Group’s finance function including tax and treasury, as well as
operations, technology, commercial transformation and corporate
services.
Prior to joining Schroders, Meagen spent 11 years at M&G plc, leading a
comprehensive transformational change programme, and held various
transformation, operational, audit, risk and IT control roles at J.P.
Morgan, Goldman Sachs and KPMG.
With more than 25 years spent in financial services, Meagen is an
experienced leader in delivering organisational change. She brings
commerciality to resource and capital allocation and drives innovation
and efficiencies in our business processes.
– None
Meagen Burnett
Chief Financial Officer
Johanna joined Schroders in 2007 and was appointed Group Chief
Investment Officer in September 2019 and as an executive Director on
1January 2025. She is responsible for overseeing the investment
performance, philosophy, and process across all asset classes at the firm
as well as leading the Public Markets business.
Prior to joining Schroders, Johanna was a fund manager at Insight
Investment from 2005 to 2007 and Head of Asset Allocation at Deutsche
Asset Management from 1997 to 2005.
Johanna’s extensive investment experience will help to ensure that the
client outcome remains at the heart of how we invest. Her elevated role
underlines the strategic importance of investment at Schroders.
– Member of Christ Church
Investment Committee
Johanna Kyrklund
Group Chief Investment
Officer
Board of Directors and Company Secretary
36 Schroders Annual Report and Accounts 2024
Skills, experience and contribution
Principal current external
appointments
Ian was appointed to the Board as an independent non-executive
Director in January 2017, and was appointed as Senior Independent
Director in April 2018.
Ian was Chief Executive of BAE Systems plc from 2008 to 2017, having
been originally appointed to the BAE board as Chief Operating Officer,
UK and Rest of the World. Prior to this, he was Chief Executive of Alenia
Marconi Systems. Ian also served as a non-executive Director and Senior
Independent Director of Rotork plc until June 2014.
Having held a number of leadership positions in major multinational
companies, and having capital markets experience both as an executive
and non-executive Director, Ian brings strong global leadership
experience, which is of great value to the Group as we continue to grow
our business internationally.
1. Ian will step down from the role of Senior Independent Director with effect from the
conclusion of the AGM on 1 May 2025, remaining on the Board as an independent
non-executive Director.
– Senior Adviser to the board
of Gleacher Shacklock LLP
– Chairman of Senior plc
– Director of High Speed Two
(HS2) Limited and lead non-
executive Director for the
Department for Transport
Ian King
Senior Independent
Director
1
Claire was appointed as a non-executive Director in April 2020.
Claire is a non-executive Director of Caledonia Investments plc, Director
and Trustee of the Schroder Charity Trust and a Trustee of a number of
charitable foundations. She was previously a non-executive Director of
Gauntlet Insurance Services.
Claire brings experience of family-owned businesses in financial services
and from her non-executive roles. Claire is a descendant of John Henry
Schroder, co-founder of the Schroders business in 1804. Claire’s
appointment reflects the commitment to Schroders of the Principal
Shareholder Group, which has been an important part of Schroders’
success over the long term.
– Non-executive Director of
Caledonia Investments plc
– Director and Trustee of the
Schroder Charity Trust
– Trustee of a number of
charitable foundations
Claire Fitzalan Howard
Non-executive Director
Rakhi was appointed as an independent non-executive Director in
January 2017.
Rakhi is an experienced executive in digital retailing, having spent 12
years at Amazon, where she was Director of UK Media. Prior to joining
Amazon, she held roles at TomTom and in management consultancy in
the US. She was previously a non-executive Director of Intu plc and
Rightmove plc.
Rakhi’s experience in the digital world through her work at Amazon, and
more recently through her experience as a non-executive Director on
other boards, is highly valuable to the Group as digital has an
increasingly important impact on the asset management industry.
– Non-executive Director of
Trainline plc and Chair of
the Remuneration
Committee
– Non-executive Director of
Kingfisher plc and Chair of
the Remuneration
Committee
Rakhi Goss-Custard
Independent non-
executive Director
Iain was appointed as an independent non-executive Director on
1January 2024.
Iain is a chartered accountant and was Chief Financial Officer at GSK plc
until 2023. He was a member of the GSK leadership team and was
responsible for Global Finance and several of GSK’s key global functions,
including Investor Relations, Digital and Tech, and Global Procurement.
Prior to joining GSK, Iain was Group Finance Director at HSBC Holdings
plc, a position he held for eight years. Iain has lived and worked in Asia,
the US and Europe and, before HSBC, was at General Electric,
Schlumberger Dowell and Price Waterhouse.
In addition to his experience as Chief Financial Officer of FTSE 100
companies, Iain brings considerable knowledge of global organisations
operating in many of the international markets where we operate.
2. Iain will succeed Ian King as Senior Independent Director with effect from the
conclusion of the AGM on 1 May 2025.
– Non-executive Director and
Chair of the Audit and Risk
Committee of National Grid
plc
– Non-executive Director of
UK Government
Investments
Iain Mackay
Independent non-
executive Director
2
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
37 Schroders Annual Report and Accounts 2024
Skills, experience and contribution Current external appointments
Leonie was appointed as a non-executive Director in March 2019.
Leonie is currently a Director and Trustee of the Schroder Charity Trust
and has held a number of roles in the charity sector.
Leonie is a descendant of John Henry Schroder, co-founder of the
Schroders business in 1804. Leonie’s appointment reflects the
commitment to Schroders of the Principal Shareholder Group, which has
been an important part of Schroders’ success over the long term.
– Director and Trustee of the
Schroder Charity Trust
– Director of a number of
private limited companies
Leonie Schroder
Non-executive Director
Annette was appointed as an independent non-executive Director in
September 2023.
Annette has 25 years’ experience in leading global publishing and data
analytics businesses, across academic, educational and consumer media
verticals. Most recently, she served as CEO of Guardian Media Group, a
position she held until June 2021. Prior to this, Annette was CEO of the
Web of Science Group at Clarivate plc, a data, analytics and software
business focused on research and higher education. She has also served
as CEO of Macmillan Publishers and led the digital and global
transformation of Nature Publishing Group.
Annette brings her experience in leading global publishing and data
analytics businesses with her digital, data and analytics expertise, which
is of great benefit to the Group as we continue to invest in these
important areas.
– Non-executive Director of
Pearson plc
– Non-executive Director of
EcoVadis
– Non-executive Director of
OpenClassrooms
– Senior Adviser to General
Atlantic
Annette Thomas
Independent non-
executive Director
Fred was appointed as an independent non-executive Director on
1January 2024.
Fred was Managing Partner and Head of TMT at Advent International, a
leading global private equity investor. During his 23-year career, Fred
managed Advent’s London and New York offices and served on both
their European and North American Investment Advisory Committees.
Fred brings insights into the sustainability and conservation sectors. He
also brings experience of private equity and private markets more
generally, which is of great benefit as we continue to build Schroders
Capital.
– Founder of Blue Endeavor
Ventures
– Co-founder of Scale-Up
Fund
Frederic Wakeman
Independent non-
executive Director
Deborah was appointed as an independent non-executive Director in
March 2019.
Deborah is the CEO of ViiV Healthcare, a leading global company,
majority owned by GSK and focused on advancing science into HIV
treatment, prevention and care. Deborah is also a member of the GSK
Corporate Executive Team.
Deborah brings her experience as chief executive of a major
international business operating in many of the markets we are active in,
which is of great benefit as we continue to grow our business
internationally.
3. Deborah will be stepping down from the Board with effect from the conclusion of the
Annual General Meeting on 1 May 2025.
– CEO of ViiV Healthcare
– Member of the GSK
Corporate Executive Team
Deborah Waterhouse
Independent non-
executive Director
3
Board of Directors and Company Secretary continued
38 Schroders Annual Report and Accounts 2024
Skills, experience and contribution Current external appointments
Matthew was appointed as an independent non-executive Director in
March 2020 and was appointed as Chair of the Remuneration
Committee in April 2022.
Matthew started his career in 1986 at Credit Suisse First Boston. He
subsequently worked at Rothschild & Co, where he became Managing
Director and Joint Chief Executive of ABN AMRO Rothschild. He joined
Goldman Sachs in 2000 and became a partner in 2002.
During his tenure, he led substantial businesses within the Investment
Banking Division. He left Goldman Sachs in 2016 to become Co-Head of
Global Banking at HSBC.
Matthew brings significant experience of global financial markets after a
distinguished career in investment banking.
– Director of MW&L Capital
Partners
– Foundation Fellow of Balliol
College, Oxford
– Trustee of the UK Holocaust
Memorial Foundation
Matthew Westerman
Independent non-
executive Director
Kate was appointed as Group Company Secretary on 1 May 2024.
Kate was previously Deputy Group Secretary at Aviva, leading the global
Governance team, and Partner at PwC, where she led the Listed and
Financial Services Governance practice.
Kate is responsible for the Group’s Governance framework and is the
principal adviser on all governance matters.
Kate brings great experience in operating commercial and effective
governance frameworks for multinational and regulated groups.
– Member of the Governance
Committee of the Institute
of Chartered Accountants in
England and Wales
Kate Graham
Group Company
Secretary
Composition of the Board at 5March 2025
Board composition Non-executive
Directors’ tenure
Board gender diversity Board ethnic diversity
n
Executive Directors 23%
n
Non-independent
non-executive
Directors
15%
n
Independent non-
executive Directors
62%
n
0–3 years 30%
n
3–6 years 50%
n
6–9 years 20%
n
Male 38%
n
Female 62%
n
White 85%
n
Ethnically diverse 15%
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
39 Schroders Annual Report and Accounts 2024
Clarity and
leadership in
a year of
transition
Dame Elizabeth Corley
Chair
I am pleased to present our governance report for 2024.
The following pages discuss the operation of the Board
and its Committees during the year, how we discharged
our responsibilities, and the governance arrangements
supporting the Board and the business.
Succession planning and leadership transition
In my last report, I said the Board was focusing on developing
strategy for the long term and that strategy would remain one
of our major priorities in 2024. This proved to be the case, and
strategic leadership was a key consideration throughout our
executive Director succession planning process during the year.
As shareholders will be aware, in April 2024, Peter Harrison
informed the Board of his intention to retire after 11 years with
Schroders and 8 years as Group Chief Executive. Following Peter’s
decision, the Nomination and Governance Committee spent time
considering the future skill set, experience and aptitudes required
of the senior leadership team that would deliver the Group’s
priorities going forward and led the process that resulted in the
appointment of Richard Oldfield as Group Chief Executive. With
Richard Oldfield in position since 8November 2024, and the
appointment of Meagen Burnett and Johanna Kyrklund to the
Board on 1January 2025, as Chief Financial Officer and Group
Chief Investment Officer, respectively, we have exceptional
international mindsets, experience and leadership across a wide
range of disciplines. The appointments are a great reflection of
the talent we have within the Group. Since the announcement of
these appointments, I have met shareholders, at their request, to
describe our process, and Richard, Meagen and Johanna have
held introductory meetings with major shareholders.
Full details of our succession planning and the search, selection
and appointment process can be found in the Nomination and
Governance Committee report on pages 50 to 53.
In May 2024, the Board appointed a new Group Company
Secretary, Kate Graham, succeeding Graham Staples. I would like
to thank Graham for his enormous contribution to the Board over
his 20 years in the role. I would also like to thank Rhian Davies,
who stood down as an independent non-executive Director at the
AGM in 2024, for her dedication, especially during her tenure as
Chair of the Audit and Risk Committee.
Strategy, performance and clients
As a Board we continue to oversee and test the Company’s
strategy. The development and delivery of that strategy falls to
the executive leadership team, and in November 2024, our
new Group ExCo was established, and now consists of of the
Chief Executives of our three businesses – Public Markets,
Schroders Capital and Wealth Management – the Group Head of
Strategy and Investor Engagement, the Head of Client Group, our
Chief People Officer, and our Group General Counsel, alongside
the Group Chief Executive and our Chief Financial Officer. This
focused team is responsible for delivering operational and
financial performance.
In addition, clients and our people remained key areas of focus
for the Board throughout the year. In May 2024 the Board
travelled to Paris to spend time with colleagues and clients.
We consider these international visits as important opportunities
to understand how well the culture we see clearly in London has
travelled in our global business.
Our people
The Board focused on ensuring clear communication during the
leadership transition to maintain stability for our people and our
clients. Our people are critical to the success of our business.
During the year consideration was given to the culture of the
Group and the strength of the employee value proposition. You
can read more about how we maintain our high-performing
culture in the “People and community” section on page 16.
Looking ahead
The Board will continue to maintain high standards in the way it
works. As part of our process for self-evaluation and improvement,
we conducted our annual review of the effectiveness of the Board.
The review was undertaken internally this year and the findings
can be found on page 49. My focus now is on embedding the new
executive Directors within our Board while maintaining an effective
and productive Board dynamic. As our industry will continue to
change rapidly, we will keep the composition of our Board under
active review to ensure that we evolve and adapt appropriately.
I am confident we have the right senior leadership team to
execute the delivery of our strategy and that the Board will
continue to oversee the performance of our strategy for the
long-term benefit of clients, shareholders and other stakeholders.
Dame Elizabeth Corley
Chair
5March 2025
Corporate governance report
40 Schroders Annual Report and Accounts 2024
2024 Board and Committee attendance
Directors are expected to attend all meetings of the Board and Committees on which they serve. Details of Board and Committee
attendance are included in the table below. Meagen Burnett and Johanna Kyrklund were appointed to the Board on 1 January 2025, and
therefore do not feature in the table.
Where a Director is unable to attend a meeting, their views are sought in advance and shared with the Board.
Board
1
Nomination and
Governance
Committee
Audit and Risk
Committee
Remuneration
Committee
2
Chair
Dame Elizabeth Corley
11/11
6/6
Executive Directors
Peter Harrison
3
8/8
Richard Oldfield
4
9/9
Non-executive Directors
Ian King
5
11/11
6/6
6/7
Rhian Davies
6
2/2
1/1
1/1
2/2
Claire Fitzalan Howard
11/11
6/6
Rakhi Goss-Custard
7
10/11
5/6
5/5
Iain Mackay
7
9/11
6/6
5/5
Leonie Schroder
11/11
6/6
Annette Thomas
7
10/11
5/6
7/7
Deborah Waterhouse
7, 8
9/11
5/6
5/5
3/3
Frederic Wakeman
9
11/11
6/6
5/5
4/4
Matthew Westerman
7
10/11
5/6
5/5
7/7
1. There were six scheduled Board meetings held during the year and five ad hoc meetings to consider Board appointments, strategy updates and the Q3 results.
2. There were five scheduled Remuneration Committee meetings held during the year and two ad hoc meetings to consider the remuneration arrangements for the
new Group Chief Executive and other executive Director appointments.
3. Peter Harrison stepped down from the Board on 8 November 2024 and was succeeded as Group Chief Executive by Richard Oldfield from that date. Peter was
recused from two meetings of the Board that discussed the Group Chief Executive’s succession.
4. Richard Oldfield was recused from two meetings of the Board that discussed the Group Chief Executive’s succession.
5. Ian King was unable to attend one meeting of the Remuneration Committee due to prior commitments overseas.
6. Rhian Davies retired from the Board on 25 April 2024.
7. The meetings not attended by Rakhi Goss-Custard, Iain Mackay, Annette Thomas, Deborah Waterhouse and Matthew Westerman identified above, were all ad hoc
meetings called at short notice. All meetings were quorate at all times.
8. Deborah Waterhouse stepped down as a member of the Remuneration Committee on 31 May 2024.
9. Frederic Wakeman was appointed as a member of the Remuneration Committee on 1 August 2024.
The Board and its Committees
The Board has collective responsibility for the management,
direction and performance of the Company. It is accountable to
shareholders for the creation and delivery of strong, sustainable
financial performance and long-term shareholder value.
In discharging its responsibilities, the Board takes appropriate
account of the interests of our wider stakeholders, including
clients, employees, external service providers, regulators and
wider society. Certain decisions can only be taken by the Board,
including on the Group’s overall strategy, significant new business
activities, and the strategy for management of the Group’s capital.
These are contained in the Schedule of Matters Reserved to the
Board, which can be found on the Company’s website
1
and are
summarised on page 42.
The Board has delegated specific responsibilities to Board
Committees, notably the Nomination and Governance Committee,
the Audit and Risk Committee and the Remuneration Committee.
The papers for and minutes of committee meetings are made
available to all Directors. At each scheduled Board meeting, the
Chair of each Committee provides the Board with an update of
the work currently being carried out by the Committee they chair.
Membership of the Committees is detailed in each Committee’s
report. The Committees’ terms of reference can be found on the
Company’s website
2
.
The Chair also has regular meetings with the non-executive
Directors without the executive Directors being present. These
meetings are informal discussions and do not have fixed agendas.
At least once a year the Chair also meets with just the independent
non-executive Directors.
Board calls are used as an additional avenue for communication to
supplement the formal Board meeting programme; these are held
between the scheduled meetings.
1. www.schroders.com/board-matters
2. www.schroders.com/board-committees
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
41 Schroders Annual Report and Accounts 2024
Governance framework
Board
The Board is collectively responsible for the management, direction and performance of the Company.
Matters reserved to the Board
The Group’s overall strategy
The Company’s capital strategy
and changes to the capital or
corporate structure
Significant new
businessactivities
Dividend policy
Annual Report and
financialandregulatory
announcements
Annual budgets and financial
commitments and material
or strategic acquisitions
Risk management framework,
risk appetite and tolerance
limits
Board and Committee
composition, succession
planning and Committee
termsof reference
Corporate governance
arrangements, including
Boardconflicts of interest
Maintenance of an effective
system of internal controls and
risk management
Remuneration strategy
The full Schedule of Matters Reserved to the Board can be found on the Company’s website, www.schroders.com/board-matters
Chair
The Chair is responsible forthe
leadership of the Board, ensuring
itseffectiveness and setting its agenda.
She is responsible for creating an
environment for open, robust
andeffective debate and challenge.
The Chair is also responsible for
ensuring effective communication
withshareholders and other
stakeholders.
Group Chief Executive
The Group Chief Executive is
responsible for the executive
management of the Company and
its subsidiaries. He is responsible
for proposing the strategy for the
Group and for itsexecution. He is
assisted by members of the Group
ExCo, GSI and the GRC.
Chief Financial Officer
The Chief Financial Officer has
direct responsibility forfinancial
management, capital and treasury,
with oversight of operations and
technology. She is assisted by
members of the Group Capital
Committee.
Group Chief Investment Officer
The Group Chief Investment Officer
is responsible for the oversight of
investment performance across all
business lines.
Senior Independent Director (SID)
The SID acts as a sounding board for
the Chair, oversees the Chair’s
evaluation, and serves as an
intermediary for other Directors if
needed. He is also available as an
alternative point of contact for
shareholders and stakeholders if
needed. The current SID, Ian King, is
the designated non-executive Director
responsible for engagement with the
workforce.
Non-executive Directors
Non-executive Directors are expected
to provide independent oversight and
constructive challenge and help
develop proposals on strategy,
performance and resources, including
key appointments andstandards
of conduct.
Nomination and
Governance
Committee
Responsible for reviewing
the composition of the
Board, its Committees,
executive succession and the
Group’s governance
arrangements.
Audit and Risk
Committee
Responsible for overseeing
financial and non-financial
reporting, risk management
and internal controls,
internal and external audit.
Remuneration
Committee
Responsible for reviewing
the remuneration strategy of
the Group, the remuneration
policy for Directors and
overseeing remuneration
business-wide.
Chair: Dame Elizabeth
Corley
Chair: Iain Mackay Chair: Matthew
Westerman
Group Executive
Committee (Group ExCo)
The Group ExCo comprises senior
management who have primary responsibility
for the delivery and execution of the Group’s
strategy, and for operational performance. It
is an advisory committee to the Group Chief
Executive.
Group Sustainability and
Impact Committee (GSI)
The GSI Committee comprises senior
management across the Group and provides
advice to the Group Chief Executive to assist
him in discharging his responsibilities
regarding sustainability and impact.
Group Capital Committee
The Group Capital Committee assists the
Chief FinancialOfficer in managing the
Group’s capital, liquidity, seed investments,
co-investments and other investments.
Group Risk Committee (GRC)
The GRC assists the Group Chief Executive in
discharging his responsibilities in respect of
risk and controls. The GRCis chaired by the
Chief Risk Officer and has a number of sub-
committees, which lookat specific areas of risk.
Corporate governance report continued
42 Schroders Annual Report and Accounts 2024
Independence
The Board remains committed to its stated policy regarding the
benefits of an absolute majority of independent Directors. All the
non-executive Directors are independent in terms of character
and judgement.
Claire Fitzalan Howard and Leonie Schroder are not considered
independent under the UK Corporate Governance Code as they
are both members of the Principal Shareholder Group. The
Nomination and Governance Committee believes the judgement
and experience of Claire Fitzalan Howard and Leonie Schroder
continues to add value to the Board and the Group. The Board
has therefore recommended their re-election at the 2025
Annual General Meeting (AGM).
Director appointments and time commitment
The rules providing for the appointment, election, re-election
and removal of Directors are contained in the Company’s Articles
of Association. The Company may only amend its Articles of
Association by special resolution of the shareholders.
In accordance with the Articles of Association, Meagen Burnett
and Johanna Kyrklund will offer themselves for election at the AGM
on 1May 2025. All other Directors are required to seek re-election
on an annual basis unless they are retiring from the Board.
Deborah Waterhouse will not be seeking re-election as a Director
and will stand down at the conclusion of the 2025 AGM. Details of
the Directors’ length of tenure are set out on page 39.
Non-executive Directors’ letters of appointment stipulate that they
are expected to commit sufficient time to discharge their duties.
The Board has adopted a policy that allows executive Directors to
take up one external non-executive directorship. Non-executive
Directors are required to consult the Chair before taking on any
additional appointments. The Board is satisfied that all Directors
continue to be effective and demonstrate commitment to their
respective roles.
For details of executive Directors’ service contracts, termination
arrangements and non-executive Directors’ letters of
appointment, please refer to the Remuneration report from
page 62.
Board training
The Board believes that the ongoing development and briefing of
Directors is an important part of the Board’s agenda. The Board
receives regular briefings throughout the year to provide them
with a deeper understanding of the Group. The Chair and Group
Company Secretary discuss briefing topics annually and agree
what these should cover.
During 2024, a briefing was provided on the geopolitical outlook
and how it affects Schroders. Our Global Head of Sustainable
Investment also held a briefing session on our sustainability
approach and our strategy and priorities in light of the external
environment and industry trends.
Members of the Board Committees also receive regular updates
on technical developments at scheduled committee meetings.
Board induction
The Group Company Secretary supports the Chair and Group
Chief Executive in providing a personalised induction programme
for all new Directors. This helps familiarise newly appointed
Directors with their duties and the Group’s culture and values,
strategy, business model, businesses, operations, risks and
governance arrangements.
The induction process is reviewed regularly and is updated and
tailored to ensure that it remains appropriate. Induction and
briefing meetings are generally open to any Director to attend
if they wish to.
Committee-specific inductions are also arranged when
membership changes, and these induction processes are tailored
to the skills and knowledge of the individual and the forthcoming
committee agenda items.
Following the appointments of Iain Mackay and Frederic Wakeman
in January 2024, and Meagen Burnett and Johanna Kyrklund in
January 2025, comprehensive and tailored induction programmes
were provided and are ongoing, further information on which can
be found on page 52.
The induction processes involve:
– meeting all members of the Group ExCo and their teams to gain
an insight into, and an understanding of, the opportunities and
challenges facing their area of responsibility
– one-to-one meetings with other senior management across
the Group, including first, second and third lines of defence, to
understand the Group’s Risk Management framework and
internal controls and our technology platforms
– an overview of the Group’s ownership structure and
significant shareholders.
Role of Group ExCo
Upon his appointment as Group Chief Executive in
November, Richard Oldfield launched a new Group ExCo
focused on executing the Group’s business strategy and
driving growth. Demonstrating the strength and depth of
our talent, eight of the nine Group ExCo roles were filled by
existing internal executives.
The Group ExCo’s primary role will be to advise the Group
Chief Executive on matters of strategy, operational
performance, finance and capital, risk and internal controls,
and people. Day-to-day management of the various
businesses and functions within the Group will be the
individual responsibility of the relevant Committee
members.
You can read the biographies of each of our Group ExCo
members on our website at www.schroders.com/exco
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
43 Schroders Annual Report and Accounts 2024
Compliance with the 2018 UK Corporate Governance Code (2018 Code)
1
During 2024, the Board complied with the 2018 Code and applied all its principles and provisions.
The following table sets out examples of how the Board has applied each principle, assisting our shareholders to evaluate our 2018
Code compliance.
In preparation for compliance with the 2024 UK Corporate Governance Code (2024 Code), during the year we undertook a detailed
review to evaluate the impact that the 2024 Code will have on our governance and risk management arrangements. We will report
on our compliance with the 2024 Code in our next Annual Report.
Code principle
Board leadership and company purpose
A Role of the Board The Company is led by an effective Board that is collectively responsible for the long-term sustainable
success of the Company. The Board ensures that due regard is paid to the interests of our stakeholders,
who include our clients, shareholders, employees, external service providers, regulators and wider
society.
See “Key areas of focus during the year” on page 46.
B Our purpose, values
and strategy
The Board has collective responsibility for the management, direction and performance of the Company.
Certain decisions can only be taken by the Board, including decisions on the Group’s overall strategy,
significant new business activities and the strategy for management of the Group’s capital.
See “Stakeholder interests and engagement” on page 47.
C Resources
and controls
The Board reviews the financial performance of the Group at each scheduled meeting and is ultimately
responsible for the Group’s control framework. The Audit and Risk Committee carries out an annual
assessment of the effectiveness of the system of internal control on behalf of the Board.
See the Audit and Risk Committee report on pages 54 to 61.
D Engagement The Board recognises that engaging with and taking account of the views of the Group’s stakeholders is
key to delivering the Group’s strategy and long-term objectives.
See page 47.
E Workforce
engagement
Each year, the Board receives an update on Schroders’ people and culture. Ian King is our designated
non-executive Director responsible for gathering workforce feedback and he chairs the Global Employee
Forum.
See page 46.
Division of responsibilities
F The role of the Chair The roles of the Chair and Chief Executive are separate. The Chair has overall responsibility for the
leadership of the Board and for its effectiveness in all aspects of its operation. Elizabeth Corley became
Chair at the conclusion of the 2022 AGM and was considered independent on appointment.
Job descriptions for the Chair and Chief Executive can be found at www.schroders.com/board-matters.
G Board composition The Board is committed to its stated policy of having an absolute majority of independent Directors. The
Board believes that it operates most effectively with an appropriate balance of executive Directors,
independent non-executive Directors and Directors who have a connection with the Company’s Principal
Shareholder Group.
No individual or group of individuals is in a position to dominate the Board’s decision-making.
Towards the end of 2024, we launched a succession planning project focused on reviewing the
composition of the Board over the short, medium and long term.
See page 39.
H Role of the non-
executive Directors
Non-executive Directors are expected to provide independent oversight and constructive challenge.
They also help develop proposals on strategy, performance and resources, including key appointments
and standards of conduct.
I Group Company
Secretary
All Directors have access to the advice and support of the Group Company Secretary and her team.
Through them, Directors can arrange to receive additional briefings on the business, external
development and professional advice, independent of the Company, at the Company’s expense.
Corporate governance report continued
44 Schroders Annual Report and Accounts 2024
Composition, succession and evaluation
J Appointments to the
Board
The process for Board appointments is led by the Nomination and Governance Committee, which makes
recommendations to the Board.
See the Nomination and Governance Committee report on pages 50 to 53.
K Skills, experience and
knowledge of the
Board
In 2021, the Nomination and Governance Committee carried out a full analysis of the Board to identify
the skills and experience required by future appointments. This analysis has been updated, and the
results informed the role profiles used in the appointment process for the Group Chief Executive and
Chief Financial Officer. At the end of 2024, the Committee initiated a longer-term succession planning
process for the Board, to ensure the composition, skill set and experience on the Board remains
appropriate for the medium term.
See the Nomination and Governance Committee report on pages 50 to 53.
L Board evaluation The 2024 Board evaluation was conducted internally. As part of this process, interviews were held by the
Group Company Secretary with each Director. Independent Board Evaluation (IBE) facilitated an external
Board evaluation in 2022 in accordance with the Code requirement. An external Board performance
review will be conducted in 2025.
See page 49.
Audit, risk and internal control
M Internal and
external audit
The Audit and Risk Committee oversees the relationship with the external auditor, Ernst & Young. The
Group Head of Internal Audit reports directly to the Chair of the Audit and Risk Committee.
See the Audit and Risk Committee report on pages 54 to 61.
N Fair, balanced and
understandable
assessment
The Audit and Risk Committee reviews the Company’s financial reporting in detail and recommends to
the Board that the Annual Report and Accounts, when taken as a whole, is fair, balanced and
understandable.
See the Audit and Risk Committee report on pages 54 to 61.
O Risk management
and internal control
framework
The Audit and Risk Committee carries out an annual assessment of the effectiveness of the system of
internal controls and considers the adequacy of risk management arrangements in the context of the
business and strategy. The Committee also considers the principal risks, alongside emerging and
thematic risks, that may have an impact on the Group.
See the Audit and Risk Committee report on pages 54 to 61.
Remuneration
P Policies and practices Executive remuneration is designed to align with our purpose. Our Remuneration policy was approved
at the 2023 AGM, following engagement with shareholders, and is expected to apply for three years.
See the Remuneration report on pages 62 to 83.
A summary of our Remuneration policy can be found at www.schroders.com/rp.
Q Remuneration policy The Remuneration Committee provides independent oversight of the Group’s Remuneration Policy and
determines the remuneration of the Chair and the executive Directors within the policy approved by
shareholders. No Director is involved in discussions relating to their own remuneration.
See the Remuneration report on pages 62 to 83.
A summary of our Remuneration policy can be found at www.schroders.com/rp.
R Exercising
independent
judgement
and discretion
We pay for performance in a simple and transparent way, clearly aligned to shareholder and client
interests, to the financial performance of the Group, and the progress made towards our strategic goals.
See the Remuneration report on pages 62 to 83.
1. The 2018 Code is available at www.frc.org.uk
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
45 Schroders Annual Report and Accounts 2024
Key areas of focus during the year
At each scheduled Board meeting, the Board discusses reports from: the Group Chief Executive on the performance of the
business; the Chief Financial Officer on financial performance; the Group Company Secretary on governance developments; and,
where relevant, a report from each of the Board Committees.
Set out below are the key topics considered by the Board during 2024, taking into account the views of key stakeholders while
continuing to promote the Group’s long-term success. Throughout the year, the Board considered workforce welfare, external
markets, our clients, the Group’s capital position, business performance and operations, and the need to keep the market
updated on key developments.
Strategy
– The Board continued to focus on the development and
delivery of our overall strategy. In the first half of the year,
the Board reviewed the Group’s overall strategy and future
strategic direction. Following the appointment of our new
Group Chief Executive, the Board held a strategy off-site. A
review of the Group’s five-year forecast was also
considered.
– At each scheduled meeting, the Board received strategic
updates from the business. During 2024, these included
Wealth Management, Schroders Capital, Public Markets and
Client Group, as well as post-acquisition reviews, and
updates on our strategic partnerships and alliances, our AI
strategy and corporate development.
– The Board considered and approved key strategic projects,
including our partnership with Phoenix Group, the issuance
of Tier 2 debt and the acquisition of Whitley Asset
Management, all of which are discussed in more detail on
the next page.
– A number of additional Board calls were arranged
throughout the year to supplement the discussions on
strategy and to consider the appointments of the new
Group Chief Executive, Chief Financial Officer and the
appointment of the Group Chief Investment Officer to the
Board.
Financial performance and risk management
– The Board reviews the Group’s financial performance at
each scheduled Board meeting. In February, the Board
reviewed the 2023 Annual Report and Accounts and final
dividend proposal. In July, the Board reviewed the 2024 half-
year results and approved an interim dividend of 6.5 pence
per share.
– The five-year forecast was discussed by the Board in
November to support the Board’s strategic considerations.
– During the year, the Board approved the Group’s
operational resilience self-assessment, ICAAP, ILAAP,
recovery plan, resolution process and wind-down plan
following their review by the Audit and Risk Committee
(including risk appetite statements).
– The Board also approved the Group’s Climate Report 2023
to provide our shareholders, clients and other stakeholders
with a better understanding of our exposure to climate-
related risks.
People and culture
– The Board considers our people to be central to delivering the
Group’s strategic priorities and considers our culture to be one
of our assets.
– The Board engaged with employees throughout the year
through regular pulse surveys. In addition, Ian King, our
designated non-executive Director responsible for workforce
engagement, chairs the Global Employee Forum to hear
directly from employees on issues that concern them. Ian
provided feedback to the Board on the key issues raised at
forum meetings. In July, the Board and senior leaders hosted a
summer reception with key representatives from our employee
resource groups from around the business.
– In September, the Board received a people and culture update.
This provided a timely opportunity to reflect on the aspects of
our employee value proposition that we need to retain and
amplify, as well as those elements we are seeking to change.
– The Board welcomes the opportunity to engage with our
people and will continue to do so in 2025 and beyond.
Shareholder engagement
– The Board engaged with shareholders throughout the year.
The primary means of communicating with shareholders is
through the AGM, the Annual Report and Accounts, full-year
and half-year results and related presentations.
– The Investor Relations programme has continued our
engagement with our major shareholders. During the year, we
engaged with shareholders via investor calls and roadshows
that follow our results announcements. Outside of the UK, we
hosted an East Coast Roadshow in New York, Boston and
Toronto, as well as investor meetings in Frankfurt. In April, a
three-day roadshow was held with potential debt investors,
culminating in a successful issuance of Tier 2 Notes.
– Since the announcement of our new Board appointments, the
Chair has met investors on request to describe the
appointment process and the executive Directors have held
introductory meetings with major shareholders.
Corporate governance report continued
46 Schroders Annual Report and Accounts 2024
Key stakeholders
Clients Our people External suppliers
Shareholders
Society and
environment
Regulators
For more detail on our stakeholders, see pages 32 to 33.
Stakeholder interests and engagement
In discharging their section 172 duties, the Directors have regard to the factors set out on pages 32 to 33 and any other factors
considered relevant to the decision being made, such as the interests of employees and the views of regulators. The Directors
acknowledge that not every decision made will necessarily result in a positive outcome for all stakeholders. By considering the
Company’s purpose, vision and values together with its strategic priorities, and having a process for decision-making, the Board
does, however, aim to make sure that its approach to decision-making is aligned with stakeholder interests.
The appointments of Richard Oldfield as our new Group Chief Executive, and of Meagen Burnett and Johanna Kyrklund to the Board,
are discussed in the Nomination and Governance Committee report on pages 50 to 53.
The examples provided below show how the Board considered the matters set out in section 172 in respect of some of the key
decisions made during 2024.
Partnership with Phoenix Group
A key Board consideration during the year
was the launch of Future Growth Capital
(FGC), our partnership with Phoenix Group.
FGC is a private market investment
manager established to promote the
objectives of the Mansion House Compact.
FGC aims to enhance outcomes for long-
term pension savers in the UK by providing
efficient access to private market
investments. Private markets offer pension
and other long-term savers diversification
and the potential for increased investment
returns to boost their retirement incomes.
Longer lifetimes and low savings rates
mean that not all UK defined contribution
savers are currently on track to meet the
Pensions and Lifetime Savings Association’s
minimum retirement living standard
1
.
The Board began discussions regarding
the partnership in 2023 and approved
Schroders’ participation in early 2024.
During these discussions, the Board
considered the interests of several
stakeholders. The interests of customers
was a key consideration, with a primary
objective of FGC being the provision of
access to private asset investment and
diversification opportunities to millions of
new pension savers.
Other stakeholders considered by the
Board were wider society and the
government, which aims to boost pensions
and investment in British business, and
Phoenix as our partners, who aim to
provide pension savers with higher
investment returns and fulfil their
commitments under the Mansion House
Compact. The business will be regulated by
the Financial Conduct Authority (FCA) and
we will continue to engage with the
regulator as the business is being
established.
Tier 2 debt issuance
In 2024, the Board approved the issuance
of £250 million Subordinated Tier 2 Notes
(Notes) to help support the Group’s
strategic growth agenda by providing
financial flexibility.
Prior to the issuance, Schroders had no
existing listed debt; therefore, the Board
considered the interests of its stakeholders
among several factors. The Prudential
Regulation Authority (PRA) and FCA were
notified in advance of the issuance and
were engaged in the review of the
prospectus.
A crucial factor was the appetite of
investors for the debt issuance. To assess
market conditions, the Board worked with
the joint lead managers to determine if the
public bond markets were favourable and if
there would be adequate demand from
investors.
Additionally, the executive Directors hosted
a three-day roadshow, engaging with
prospective debt investors. This proactive
approach led to the successful issuance of
the Notes. The Notes are classed as Tier 2
regulatory capital; therefore, they have
strengthened Schroders’ capital and
liquidity positions.
Acquisition of Whitley Asset
Management Limited
The Board believes that investing for
growth benefits all stakeholders; therefore,
it continues to explore suitable acquisitions
in pursuit of this goal. The Board evaluated
the acquisition of Whitley Asset
Management, a London-based UK wealth
management business with £1.5 billion of
assets under management, as part of its
strategy to grow the Group’s Wealth
Management business.
The Board considered the interests of
key stakeholders when it reviewed the
acquisition. Senior management from
the Wealth Management business
held engagement meetings with these
stakeholders. The Board reviewed the
outcome of this engagement and
determined that there was a strong
cultural fit for employees and that
the acquisition would support the
Group’s strategy.
The impact of the transaction on Whitley
Asset Management’s clients was
considered, including the Group’s capacity
to offer a wider range of investment
options, custody, lending and financial
planning services.
The acquisition was subject to approval
by the FCA; therefore, engagement with
the regulator was paramount. In addition,
there was engagement with Lloyds
Banking Group, which holds a minority
stake in our UK Wealth Management
business. The Board concluded that the
acquisition would support Schroders’
strategic priority of growing the Wealth
Management business. It will open the
Cazenove Capital brand to a new network
of wealth creators and supplement the
organic growth delivered by Cazenove
Capital over the past three years.
1. www.retirementlivingstandards.org.uk
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47 Schroders Annual Report and Accounts 2024
2024 Board objectives
The 2023 Board evaluation was undertaken internally and, in light of the findings of that evaluation, the Board set the following
high-level objectives for 2024.
Objective Progress made during 2024
Strategy
– Strategic alliances and
partnerships
– Client relationships and
competitive positioning
– AI and blockchain: the
implications for our business
model
Strategy remained a key focus during 2024 and during the year the Board considered the launch of
Future Growth Capital, our partnership with Phoenix Group, and approved the acquisition of Whitley
Asset Management, contributing to the strategic aim of expanding our Wealth Management
business. Over the summer of 2024, the Board conducted a review of the strategy, with a focus on
the creation of long-term value for shareholders and operational efficiencies, ensuring that the
Company remained well positioned to meet its clients’ needs in an evolving global industry. These
discussions culminated, as in recent years, at the Board’s strategy off-site in November, at which, the
role of the Client Group in bringing together key client-facing functions across the firm to help us
enhance and build closer, longer-lasting client relationships was considered.
In September 2024, the Board received an update on the Company’s cyber and AI strategy, including
the controls in place to not only protect against the threat of cyber attack, but also to govern the
responsible use of AI with the Group. The Board discussed the impact AI was likely to have for our
business model, both in terms of our ambition to have an AI-enabled workforce, across sales,
investment and operating processes; and the threats and opportunities presented by AI from an
industry perspective.
People
– Senior leadership
development and succession
plans
– Employee value proposition
The Board, via the Nomination and Governance Committee, dedicated considerable time to senior
leadership development and succession plans throughout 2024. As outlined in the Nomination and
Governance Committee report, this process led to the successful appointment of internal candidates
to the roles of Group Chief Executive, Chief Financial Officer and Group Chief Investment Officer,
testament to the strength and development of our talent.
Following those appointments, the previous Group Strategy Committee and Group Management
Committee transitioned to what is now the Group ExCo. In September 2024, the Board considered
the succession plans and personal development plans for members of the Group ExCo, and this will
remain a focus in 2025.
In September 2024, the Board received a People and Culture update from the Chief People Officer, a
key focus of which was the way in which the Company’s people-related activities were aligned with
Group strategy. The Board considered the strengths of the Company’s culture, discussing the
elements that must be retained, as well as those that would need to evolve.
Board effectiveness
– Integrate new Directors and
build cross-Board
relationships
– Increased Board exposure to
high-potential talent
The Board evaluation concluded that Annette Thomas, Frederic Wakeman and Iain Mackay had all
fully integrated into the Board. Each provided a unique perspective, bringing fresh insights into areas
such as strategic transformation, commercial value creation, data and digital, and private markets. It
was also felt that Iain Mackay had successfully transitioned into the role of Chair of the Audit and Risk
Committee. During the year, the Board continued with its practice of holding informal dinners before
scheduled Board meetings, which, together with the Board’s international visit in May and strategy
offsite in November, helped strengthen cross-Board relationships. In addition, time was allotted at
the end of each Board meeting for reflection on the day’s discussions.
Feedback from the Global Employee Forum, led by Ian King, provided valuable insight for the Board
into wider employee sentiment and engagement. Other Board exposure included a visit to the Paris
and Horsham offices, during which Board members participated in employee town halls, and spent
time over breakfast with high-potential talent. Smaller, more focused Board engagement was also
held with the Chairs of the employee resource groups (ERGs). In January 2025, a formal ERG Forum
(comprising ERG Chairs) was established. The forum will have a non-executive sponsor, with Annette
Thomas fulfilling this role.
Corporate governance report continued
48 Schroders Annual Report and Accounts 2024
2024 Board evaluation
The 2024 Board evaluation was undertaken internally. As part of this process, interviews were held by the Group Company
Secretary with each Director, and the discussions focused on:
– the extent to which the Board had delivered on its priorities in 2024
– how the Board and the management team had performed throughout the year, including how effective the Board had been at
overseeing the implementation of strategy
– whether the Committees had discharged their responsibilities effectively, and the quality of the reporting to the Board
– how effective the Board had been at understanding the views and requirements of stakeholders
– the process for selecting the new Group Chief Executive, Chief Financial Officer and for appointing the Group Chief Investment
Officer to the Board
– the Board’s oversight of risk
– the business areas that the Board should focus on in 2025.
The overall conclusion was that the Board has delivered on its 2024 objectives, and in doing so has maintained focus on the right
areas, including operational performance. The CEO succession process was felt to have been well run, and there was
acknowledgement that there would now need to be a focus on Group ExCo succession planning and pipeline development during
the course of 2025.
Consideration of the interests of stakeholders has been well balanced, with the interests of clients and employees, in particular,
forming a regular part of Board discussions. The Board's diversity of thought, approach and experience was noted as a strength,
and the more informal time together has proven valuable for fostering openness and strengthening relationships among
members, enhancing the overall quality of Board discussions.
Interview feedback noted that throughout the year the Board has maintained good standards of governance and oversight. While
it was felt the right issues had been escalated, the planned greater transparency over local and subsidiary governance was
welcomed by the Board. The feedback on key Committees continued to be positive. As a result of the review of the Committee
terms of reference, there is an opportunity, as we head into 2025, to review the allocation of topics between the Remuneration
Committee, Nomination and Governance Committee, and the Board.
2025 Board objectives
As an outcome of the internal evaluation process, the Board agreed a number of objectives under the major themes of strategy,
clients, people and governance, while continuing to focus on operational priorities.
Strategy Clients People Governance
– Execution of transformation,
supported by clear KPIs
– Maintaining an appropriate
balance between immediate
actions and longer-term
strategy
– A sustained focus on
investment performance,
client satisfaction and sales
effectiveness
– Executive management
pipeline, succession and
personal development plans
– Monitoring the impact of
organisational change on
our people and culture
– A long term approach to
Board evolution
– Active oversight by the
Board of reputation
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49 Schroders Annual Report and Accounts 2024
Building
strength and
depth
Dame Elizabeth Corley
Chair of the Nomination
and Governance
Committee
Committee membership
Dame Elizabeth Corley (Chair)
Rhian Davies (until 25 April 2024)
Claire Fitzalan Howard
Rakhi Goss-Custard
Ian King
Iain Mackay
Leonie Schroder
Annette Thomas
Frederic Wakeman
Deborah Waterhouse
Matthew Westerman
See page 41 for meeting attendance.
Key areas of focus during 2024
– Led the process for the search and appointment of the new
Group Chief Executive and Chief Financial Officer and
considered the appointment of the Group Chief Investment
Officer to the Board.
– Considered Board and executive succession planning, in
particular the Board composition and skill set required in
the short, medium and longer-term.
– Considered Director re-appointments and changes to the
composition of the Board’s Committees.
– Extended the Committee’s responsibilities to include
oversight of the Group’s governance arrangements.
– Initiated a non-executive Director search process as part of
the ongoing evolution of the Board.
I am pleased to present my report as Chair of the Nomination and
Governance Committee (previously the Nominations Committee).
During the year, the remit of the Committee was extended to
formalise the oversight of the effectiveness of corporate
governance arrangements for the Company and its subsidiaries.
In my report last year, I set out a number of priorities for the
Committee in 2024. One of these was a focus on executive
succession and, following Peter Harrison’s announcement in April
2024 of his intention to retire, succession for the role of Group
Chief Executive became a key area of focus for the Committee.
The Board was delighted to appoint Richard Oldfield as Group
Chief Executive with effect from 8 November 2024 and, in
testament to the strength of the talent within the senior
leadership team at Schroders, Meagen Burnett, previously
Chief Operating Officer, was appointed as Chief Financial Officer,
and Johanna Kyrklund, in her role as Group Chief Investment
Officer, was appointed to the Board, both with effect from
1January 2025.
Looking ahead, the Committee will be focusing on Board
composition and an effective, dynamic, executive succession
planning, and ensuring a strong pipeline of internal talent for
executive roles.
Responsibilities of the Nomination
and Governance Committee
The Committee is responsible for keeping under review the
composition of the Board and its Committees and for
ensuring appropriate Director and executive management
succession plans are in place. During the year, the
Committee’s role was expanded to include matters of
corporate governance for the Company and its
subsidiaries.
The Committee’s terms of reference are available on the
Company’s website at www.schroders.com/board-
committees.
Biographical details and experience of the Committee
members are set out on pages 36 to 39.
Nomination and Governance Committee report
50 Schroders Annual Report and Accounts 2024
Appointment of our new Group Chief Executive
Upon recommendation from the Committee, the Board appointed Richard Oldfield as Group Chief Executive with effect from
8 November 2024. Richard’s appointment followed a comprehensive, global selection process, which I led as Chair of the Committee,
supported by a sub-committee that included our Senior Independent Director, Ian King, Deborah Waterhouse and Iain Mackay.
The search process was supported by Russell Reynolds Associates, who, other than supporting this search process, have no other
relationship with the Company or its Directors. Russell Reynolds is a signatory to the Voluntary Code of Conduct for Executive Search
Firms. A summary of the process is outlined below.
Appointment of Richard Oldfield as Group Chief Executive
Talent
management
Nomination and Governance Committee – Succession planning and talent management
The Committee regularly reviews and assesses the executive talent to ensure there is a strong pipeline of credible
and capable successors for executive management, including the role of Group Chief Executive. Throughout 2022
and 2023, this involved a review of individual development plans for senior leaders, and the appointment of
external hires to add strength and depth to the senior leadership team.
Appointment
process
1. Sub-committee established to manage and oversee the process
Following the announcement of Peter Harrison’s intended retirement, a sub-committee of the Committee, led by
the Chair, was established to direct and oversee the Group Chief Executive succession process.
2. External executive search engagement
Russell Reynolds Associates was engaged to support the search process. Russell Reynolds was chosen for the
strength of its international reach, a focus on diversity and the depth of experience in the financial services sector,
in particular in asset management. The sub-committee reviewed and discussed a forward-looking role profile,
setting out the desired attributes for the Group Chief Executive. Modern leadership, enterprise-wide
transformation experience, an international mindset and cultural fit were all identified as important factors.
3. Candidate longlist
A diverse longlist of candidates was produced by the search firm and reviewed, discussed and refined by the
sub-committee. The long list included internal and external candidates, from a variety of geographies and a
wide range of financial services specialisms. When refining the long list, the sub-committee considered experience
and the desired attributes.
4. Candidate shortlist and interviews
The Chair met with all candidates on the longlist, following which the sub-committee members met with a refined
longlist. A shortlist of candidates was produced. All shortlisted candidates were assessed against the role profile,
underwent psychometric testing and were interviewed by the full Committee (which comprises all non-executive
Directors). References were also taken.
At the end of August, the final shortlisted candidates provided a presentation on their vision for the business to
the Committee.
5. Selection
Following the final-stage interviews and presentations, the Committee met and discussed each candidate in detail,
considering all elements of the selection process. The Committee unanimously agreed that Richard Oldfield was
the outstanding candidate.
6. Candidate appointment
The Committee recommended to the Board the appointment of Richard Oldfield as the next Group Chief
Executive, succeeding Peter Harrison, with the appointment being duly approved by the Board. The Remuneration
Committee proposed an appropriate remuneration package, as described in the Remuneration Committee report
on page 62.
Appointment
of CFO and
Group CIO
Following his appointment, Richard Oldfield turned his attention to his senior leadership team, supported by the
Committee and the Chair. Recognising the strength of internal senior leaders, the Committee considered and
recommended for the Board’s approval the appointment of Meagen Burnett, previously Chief Operating Officer,
as Chief Financial Officer, and the elevation of Johanna Kyrklund to the Board in her role as Group Chief
Investment Officer and CEO of Public Markets. Following the CFO search that was undertaken in 2023, a refreshed
external candidate list was reviewed by the Committee and it was determined that Meagen’s significant experience
of transformation and commercial decision-making made her a stand-out candidate. Johanna’s appointment will
ensure that client outcomes remain at the heart of how we invest across Wealth Management, Schroders Capital
and Public Markets.
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51 Schroders Annual Report and Accounts 2024
Executive appointments
Appointment of Chief Financial Officer:
Meagen Burnett
– Meagen joined Schroders in January 2023 as Group
Chief Operating Officer, with firm-wide responsibility
for operations, technology and change. As CFO, she has
direct responsibility for financial management, capital
and treasury, with oversight of operations, technology
and commercial transformation.
– Meagen has more than 25 years’ experience in financial
services, including 15 years in asset management, and has
held a variety of operational, audit, risk and IT control roles
within M&G, J.P. Morgan, Goldman Sachs and KPMG.
Appointment of Group Chief Investment Officer:
Johanna Kyrklund
– Johanna joined Schroders in 2007 as an investor to lead
the UK multi-asset business.
– Since that time she has grown our multi-asset business
into a global franchise, from £22billion of assets under
management when she joined to £778.7 billion at
31 December 2024.
– In 2019, she became Group CIO, and in her new role on the
Board, she is responsible for the oversight of investment
performance across all business lines.
Independent non-executive Directors
In addition to its work on the executive Director changes,
the Committee oversaw several changes to independent
non-executive Director responsibilities during the year.
Frederic Wakeman and Iain Mackay joined the Board on
1 January 2024, and on 25April 2024, Iain Mackay became
Chair of the Audit and Risk Committee, replacing Rhian Davies,
who stood down at the 2024 AGM.
After two years serving on the Remuneration Committee,
Deborah Waterhouse stood down from the Remuneration
Committee on 31May 2024. The Committee considered the
remaining balance of skills and experience of Remuneration
Committee members as well as the existing time commitments
of Board directors and recommended that Frederic Wakeman
join the Committee. Following Board approval, Frederic joined
the Committee on 1August 2024, bringing extensive experience
and insights, with a particular knowledge of private markets.
In March 2025, having served as a non-executive Director for six
years, Deborah Waterhouse informed the Board that, in order to
concentrate on the demands of her role at GSK plc, she would not
put herself forward for re-election at the upcoming AGM, and
would stand down at the conclusion of that meeting.
Induction
All Directors receive a comprehensive and tailored induction plan,
including internal appointments. As set out in our 2023 Annual
Report and Accounts, Iain Mackay and Frederic Wakeman
received a full induction following their appointments to the
Board on 1January 2024. Ahead of assuming the role of Audit
and Risk Committee Chair in April 2024, Iain also undertook a
comprehensive handover with the previous Chair, Rhian Davies.
Frederic Wakeman also received an induction ahead of joining
the Remuneration Committee.
Following their appointments, Meagen Burnett and Johanna
Kyrklund received tailored inductions which took into account
their existing tenure within the Group and their membership
of the Group Strategy Committee, through which they had
both already been attending Board meetings.
For Meagen this involved meeting key stakeholders, including our
major shareholders, and building relationships with our corporate
brokers. For Johanna the focus was on establishing the role of
Group Chief Investment Officer as a Board-level position.
Succession planning
The Committee undertakes a thorough annual review of the
Board’s composition to support discussions on succession
planning. Following the Board strategy off-site in November 2024,
the Committee conducted an in-depth capability assessment of
Board members’ knowledge, skills and experience in the context
of the Group’s short-, medium- and long-term strategic priorities.
This included a self-assessment undertaken by each Director,
which informed an overall Board skills matrix, the tenure of the
Board as a whole, independence and diversity.
A particular consideration was maintaining an appropriate balance
of independence on the Board following the appointment of a
third executive Director. The Board composition review also
highlighted that there was an opportunity to bolster the Board
with skills including transformation, entrepreneurial asset
management, technology, including AI, blockchain and
digital transformation. As part of a long-term approach to
Board evolution, a search for an additional independent
non-executive Director was launched in February 2025.
Consideration was also given to succession planning for the
Senior Independent Director, in anticipation of Ian King and
Rakhi Goss-Custard, both of whom will reach their nine-year
tenure in April 2026. As a result, it has been agreed that Ian King
will stand down as Senior Independent Director with effect from
the Company's AGM on 1 May 2025. Ian will be succeeded as
Senior Independent Director by Iain Mackay, and will remain on
the Board as an Independent Non-Executive Director and as the
designated non-executive Director responsible for engagement
with the workforce.
The Committee also continues to focus on executive management
succession planning. During the year, an external mapping
exercise was completed for the role of Group Company Secretary
following Graham Staples’ retirement, and as a result Kate Graham
was appointed as Group Company Secretary on 1May 2024.
During the year the Committee also reviewed the succession
plans for the newly formed Group ExCo, to consider the pipeline
of senior executives in place and identify any development-related
action required.
Directors standing for election and re-election
At our March meeting, the Committee agreed that all Directors
standing for election and re-election make a valuable contribution
to the Board’s deliberations and recommended their election and
re-election. This recommendation includes Ian King, Rakhi Goss-
Custard, and Leonie Schroder, all of whom will have served on the
Board for more than six years. In making this recommendation,
the Committee considered feedback from the Board evaluation
interviews conducted by our Group Company Secretary, and the
outcome of the Board composition review referred to above.
As required by the UK Listing Rules, the appointment of
independent Directors must be approved by a simple majority
of allshareholders and by a simple majority of the independent
shareholders. Further details are set out in the 2025 Notice of AGM.
Nomination and Governance Committee report continued
52 Schroders Annual Report and Accounts 2024
Assessing Board and Committee performance
A key role of the Committee is to oversee the annual Board
and Committee evaluation. In line with best practice, a formal
and rigorous review of Board and Committee performance is
conducted annually, with an externally facilitated review conducted
every three years. Our last external review was conducted in 2022.
This year, given the change to Board composition, the review was
led internally by the Group Company Secretary, with the Senior
Independent Director leading the evaluation of the Chair.
The process involved interviews with all Board Directors and
key stakeholders within senior management. The findings and
resulting recommendations from the 2024 effectiveness
review, as well as a summary of the progress made against
the previous year’s recommendations, can be found on pages
48 to 49.
Committee performance in 2024
The internal evaluation process for 2024 is set out on page 49.
Feedback on the Committee highlighted that we had delivered well
on the Group CEO succession process, as well as the subsequent
CFO and Group CIO appointments. The review of governance
arrangements undertaken during the year has identified an
opportunity for the Committee to have greater focus on Group
ExCo succession planning, including talent development and
ensuring a strong pipeline for senior management.
Subsidiary governance
The responsibilities of the Committee have been expanded to
include reviewing and recommending to the Board the approval
of the corporate governance arrangements of the Company
and its subsidiaries and assessing the ongoing operation and
effectiveness of those arrangements. The Committee will also
ensure that these arrangements adhere to best practice in
corporate governance, recommending changes to the framework
to the Board as necessary.
Priorities for 2025
The Committee has supported significant change during 2024,
with three executive Director appointments. As we move into
2025, the Committee will focus on embedding those Directors
and building on the effectiveness of the relationships between
the non-executive and executive Directors.
Our focus will also remain on the Board composition required to
oversee the performance of the business, including organisational
change, and of our strategic priorities and related succession
planning activity over the medium term.
The Committee will also be reviewing executive succession plans,
considering the strength of the leadership team in place to
support the newly appointed executive Directors.
By order of the Board.
Dame Elizabeth Corley
Chair of the Nomination and Governance Committee
5March 2025
Policy on Board diversity
The Board recognises the importance of diversity and that it is a wider issue than gender and ethnicity.
We look for diversity of skills, thought, experience and background, which is important for the effectiveness of our Board, its
Committees and the management team. Diversity across our workforce is discussed by the full Board. The specific diversity
aspirations for the Group are set by the Board, on recommendation from management, as part of our annual People and Culture
update. All appointments are made on merit.
The Board understands the value of gender and ethnic diversity and is committed to having a minimum of 40% of Board positions
held by women and to meet the Parker Review’s recommendations of at least one Director from an ethnic minority on the Board.
Currently we meet both the gender and ethnicity recommendations as, following the AGM, women will comprise 58% of the
Board, and we have two ethnic minority Directors. We intend only to use the services of executive search firms which have signed
up to the Voluntary Code of Conduct on Gender Diversity.
Our gender diversity statistics for both the Board and senior management can be found on page 86.
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53 Schroders Annual Report and Accounts 2024
Refining our
framework in
anticipation
of change
Iain Mackay
Chair of the Audit and Risk
Committee
Committee membership
Iain Mackay (Chair)
Rhian Davies (until 25 April 2024)
Rakhi Goss-Custard
Frederic Wakeman
Deborah Waterhouse
Matthew Westerman
See page 41 for meeting attendance.
I am pleased to present the Committee’s report for the year
ended 31December 2024. The Committee has a substantive
agenda and plays a key role in overseeing the integrity of the
Company’s financial statements and the robustness of the
Group’s system of internal controls and financial and risk
management. We continue to work closely with both senior
management and the external auditor to understand the
changing landscape, both externally and across the business,
and are grateful to Ernst & Young (EY), our external auditor,
for their ongoing assurance and challenge.
The Committee recognises the importance of our system of
internal controls and the role it plays in mitigating risk. During the
year, we received an update on senior management’s approach to
the new requirements for reporting and assurance of material
controls in the revised UK Corporate Governance Code, which will
apply from 2026. This approach will be refined, implemented and
tested over the course of the year ahead.
In addition, operational resilience remained a key focus. The
Group’s operational resilience self-assessment, which the
Committee considered, identifies our important business services,
provides information on oversight of critical third parties, sets out
impact tolerances to avoid intolerable harm to our clients, and
identifies areas where we should enhance our operational
resilience. The Committee also considered various operational
stress scenarios to support the Board’s conclusions on the viability
statement and going concern set out on page 34.
Sustainability and climate-related risks, relating to both our
business and the investments we manage, remain an important
topic for the Committee and are considered in our quarterly
reports. The Committee was updated on areas of key sustainability
regulatory change, including the Corporate Sustainability
Reporting Directive and the Sustainability Disclosure
Requirements, and their impact on the business and our
external reporting.
Audit and Risk Committee report
54 Schroders Annual Report and Accounts 2024
Role of the Audit and Risk Committee
– The principal role of the Committee is to assist the Board in fulfilling its oversight responsibilities in relation to financial
reporting, financial controls, and audit, risk and internal controls. All members of the Committee are independent non-
executive Directors. Biographical details and the experience of Committee members are set out on pages 36 to 39.
– The Board has determined that members collectively possess the necessary competence for the sector in which the Group
operates based on their previous experience in other organisations. Additionally, the Board considers that Iain Mackay, a
chartered accountant, has the recent and relevant financial experience required to chair the Committee. Invitations to attend
all committee meetings are extended to the Chair, Group Chief Executive and Chief Financial Officer, and Directors who are
not members attend on an ad hoc basis.
– The Committee also benefits from the advice of the Global Head of Finance, the Chief Risk Officer, the Head of Group Internal
Audit and the Group General Counsel. The Committee also invited other senior management to attend as appropriate. The
Chair of the Wealth Management Audit and Risk Committee (WMARC), who is an independent non-executive Director of
Schroder & Co. Limited, attended one meeting of the Committee and a written update is provided to each meeting on matters
related to core elements of the Wealth Management business. Representatives from EY, including James Beszant, Lead Audit
Partner for the 2024 financial year, attended all of the Committee’s scheduled meetings.
– Private meetings are held with the external auditor in the absence of management. Additionally, private meetings were held
with the Chief Financial Officer, Chief Risk Officer, and Head of Group Internal Audit. These meetings provide an opportunity
for any matters to be raised confidentially.
The Group considers our culture to be a key strength, and the
Committee continues to play an important role in reviewing
conduct and culture risk in the Group. This includes oversight of
the operation and evolution of our conduct risk framework,
designed to identify emerging trends and heightened areas of
risk. Conduct and culture risk is informed by a number of
elements, including conduct risk appetite statements, employee
opinion surveys and oversight by the second and third line of
defence functions. This is enhanced by the addition of “deep dives”
in business units, which indicate, through employee surveys and
other metrics, variances to our expected behaviours and values.
This has served to strengthen the information available and
management’s response to it.
In the face of escalating cyber attack threats, as in previous years,
the Committee continued to prioritise cyber security and data
privacy while considering metrics, challenging progress and
evaluating the necessary technology and operational models to
assess the Group’s readiness for evolving threats.
I would like to thank Rhian Davies for her significant contribution
to the Committee over her nine years on the Board, and to
welcome Meagen Burnett as our new Chief Financial Officer. I am
grateful to management, the external auditor and all members of
the Committee for their support in 2024 and look forward to our
continuing work in 2025.
Iain Mackay
Chair of the Audit and Risk Committee
5March 2025
The Committee’s primary responsibilities are the
oversight of:
Financial reporting, financial controls and audit
– The content and integrity of financial and Pillar 3 reporting.
– The appropriateness of accounting estimates and judgements.
– The effectiveness of the financial control framework.
– The effectiveness and independence of the external auditor.
– The recommendation to the Board of the appointment of the
external auditor.
Risk and internal controls
– The Group’s Risk and Control framework, whistleblowing
procedures and the Financial Crime framework.
– The Group’s ICAAP, ILAAP, wind-down plan, risk appetite,
recovery plan, resolution process and operational resilience
self-assessment.
– The Group’s regulatory compliance and conduct processes
and procedures, and its relationships with regulators and
compliance monitoring.
– The Group’s Internal Audit function.
– The Group’s legal risk profile and disputes.
– Emerging and thematic risks that may have a material impact
on the Group’s operations.
– Information and cyber security, technology risk and resilience,
and the emerging risk of AI.
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55 Schroders Annual Report and Accounts 2024
Key areas of focus during 2024
The key areas that the Committee considered are set out below. In addition, at each quarterly meeting, the Committee received
updates from Internal Audit, Compliance, Risk, Legal and the external auditor, covering ongoing projects and the key issues that had
arisen since the last meeting. The Committee also reviews a quarterly dashboard of metrics to monitor key risks, as well as Internal
Audit metrics and the status of relevant change projects and sustainability targets.
Financial reporting and financial controls
– As part of the Group’s annual reporting cycle, the Committee
considered the 2023 Annual Report and Accounts and 2024
half-year results, including financial estimates and judgements
and governance considerations. Ahead of preparing the 2024
Annual Report and Accounts, updates were provided on the
effectiveness of our internal controls, and on the Group
accounting policies. The going concern and viability statements,
Pillar 3 regulatory disclosures and climate-related disclosures
were also considered.
– The Group Head of Tax updated the Committee on the Group’s
tax strategy, our approach to tax risk, the key tax risks facing the
Group, and how the Group’s effective tax rate is expected to
evolve in the coming years.
External audit
– When considering the 2023 Annual Report and Accounts,
the Committee assessed the oversight and independence
of the external auditor and audit effectiveness.
– In relation to audit quality and effectiveness, the Committee
discussed the results of the external auditor feedback
questionnaire and noted the areas of improvement that
had been identified. EY presented plans to respond to the
feedback, and these were discussed by the Committee. The
Committee reviewed EY’s audit plan for 2024, including key
audit matters and focus areas. Fees for non-audit services
were reviewed and approved by the Committee.
– The Committee reviewed and discussed the findings of the
FRC’s audit quality inspection report for the 2022 audit, and
considered any impact on the Company’s audit plan.
– Policies for safeguarding the independence of the external
auditor were considered and re-approved.
Internal Audit
– As part of the governance considerations for the 2023 Annual
Report and Accounts, the Committee considered the annual
assessment of the Group’s governance and Risk and Control
framework, conducted by Group Internal Audit.
– The Internal Audit Charter was reviewed and re-approved.
– Looking ahead to 2025, the Committee considered the 2025
Internal Audit and Compliance Testing plan, which is based on
an assessment of the risks the business faces.
Risk and internal controls
– When reviewing the 2023 Annual Report and Accounts and
Pillar3 disclosures and 2024 half-year results, the Committee
considered the Group’s key risks and risk management
framework. The Chair of the WMARC provided an update on the
activities of the WMARC and its oversight of the financial
reporting, risk management and internal controls of the core
business entities within Wealth Management.
– The Committee considered the ICAAP, ILAAP, Group wind-down
plan, Group recovery plan and operational resilience self-
assessment for recommendation to the Board. The approach
taken for the Group’s resolution process was also considered.
The Committee approved the stress scenarios for use in the
Internal Capital and Risk Assessment required for Schroder
Investment Management Limited under the Investment Firms
Prudential Regime.
– The Group Head of Financial Crime Compliance provided a
review of financial crime risk, including updates on the
regulatory landscape and effectiveness of the Group Financial
Crime framework, and on the Group’s financial crime control
systems.
– Thematic issues were considered throughout the year, including
operational resilience, whistleblowing, and our conduct and
culture risk oversight.
– Our Chief Technology Officer and Chief Information Security
Officer provided an update on information security and
technology risk and resilience, including progress against our
cyber strategy, the cyber threat landscape, and the evolution of
AI and other emerging technology risks.
– The Committee reviewed climate-related disclosures in line with
the Task Force on Climate-related Financial Disclosures (TCFD)
framework and recommended the Group’s Climate Report 2023
to the Board for approval. Sustainability risks were also
considered as part of the Committee’s review of key risks.
– The Chief Risk Officer provided an update on the proposed
approach to the new requirements for reporting and assurance
of material controls in the revised UK Corporate Governance
Code.
Audit and Risk Committee report continued
56 Schroders Annual Report and Accounts 2024
Significant accounting estimates and judgements
The preparation of the financial statements requires the application of certain estimates and judgements. The material areas of either
estimation or judgement are set out in the note on the presentation of the financial statements on pages 142 and 143. Each of these
areas is considered by the Committee based on reports prepared by management. EY presents to the Committee the audit procedures
performed, challenges raised to management, and conclusions reached on areas of judgement and estimation. Further information on
how EY challenged management is included within the independent auditor’s report on pages 167 to 173. The significant estimates and
judgements considered in respect of the 2024 financial statements and the Committee’s agreed actions are summarised below.
Significant estimates and judgements Action and conclusion
Pension scheme
The Group’s principal defined benefit pension scheme
(Scheme) is in respect of certain UK employees and former
employees.
The Scheme was closed to future accrual on 30April 2011
and, as at 31December 2024, had a funding surplus. The
pension obligation, which was valued as £513.7 million at the
year end, is estimated based on a number of assumptions,
including mortality rates, future investment returns, interest
rates and inflation. The Scheme’s assets are invested in a
portfolio designed to generate returns that closely align with
known cash flow requirements and to hedge the interest rate
and inflation risks.
Group Finance provided the Committee with a report that included
the key financial assumptions which had been applied by the
independent qualified actuaries, Aon Solutions UK Limited, to
determine the Scheme surplus. EY’s report to the Committee set out
its audit procedures and conclusions on the pension assets and
liabilities, including those procedures completed by EY’s specialists.
The Committee considered and challenged the proposed
assumptions and was satisfied that the estimates were appropriate.
Please refer to note 24 for more information on the estimates and judgements made in respect of the Scheme.
Carried interest
The Group recognises carried interest from its Schroders
Capital business. This revenue stream is dependent on the
future value of certain investments that may not crystallise
until an uncertain date in the future. The Group is
contractually committed to make payments based on a
relevant proportion of carried interest received to various
parties, including as part of deferred consideration
arrangements.
For financial reporting purposes, the Group is required to
estimate the value of carried interest receivable, which was
£131.2 million as at 31December 2024, in accordance with
the requirements of IFRS15 Revenue from contracts with
customers, and the fair value of related amounts payable
based on the requirements of IFRS9 Financial instruments.
The key inputs used in determining carried interest
comprised the fair value of the relevant assets on which
carried interest may be earned, future growth rates, the
expected realisation dates and the discount rates.
The Committee received a report from Group Finance, which
reviewed the assumptions and inputs for estimating the amounts
receivable and payable in respect of carried interest. The Committee
challenged management and considered the judgement applied in
determining the principal assumptions, and the sensitivity of the
relevant balances to those assumptions.
The Committee discussed the accounting for carried interest with EY
and considered the findings from its audit work. Once the
Committee was satisfied with the estimates and judgements
applied, the estimated carrying values were approved.
The Committee considered the disclosures presented in respect of
2024 and concluded that they were appropriate.
Please refer to note 2 for the estimates and judgements made in respect of carried interest receivable and amounts payable in respect of carried
interest.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
57 Schroders Annual Report and Accounts 2024
Financial reporting and financial controls
The Committee reviews whether suitable accounting policies have
been adopted and whether management has made appropriate
estimates and judgements, including those summarised on page
143. The Committee is also required to report to shareholders on
the process it followed in its review of significant estimates and
judgements that it considered during the year, as set out on
page 57.
Financial reporting is reliant on there being an appropriate
financial control environment. The Committee receives reports
on the existing control environment as well as plans to enhance
controls in the future, along with progress made against previous
planned changes. These reports provide a detailed summary of
the controls that exist across the Finance function globally and
support the Group’s risk and control assessments. For more
details, see pages 26 to 31.
The Committee received reports throughout the year on
regulatory, legal and other matters which may have a potential
impact on the Group’s financial reporting. The matters considered
included the FCA’s review of the provision of ongoing services
provided by financial advisers, required building repairs and the
associated insurance coverage and the impact of future
accounting and regulatory standards. These matters have
not had a material impact on the Group’s operating profit for
the year. The Committee will continue to monitor developments
and awaits further industry guidance from the FCA regarding the
review findings. As with all matters of this nature, the actual
outcomes may vary dependent on any significant changes to
the facts and circumstances that emerge.
The Committee considers other controls that might have an
impact on financial reporting. During 2024, the Committee
considered management’s assessment of the cyber risks posed
to the Group. The Committee also reviews the Group’s tax
strategy annually.
The financial control environment, including our information
technology environment, is also subject to audit procedures by
the Group’s internal and external auditors. After considering
reports from Group Finance, Internal Audit and EY, the Committee
considered that an effective system of internal controls had been
in place during the course of 2024.
The Committee conducted an in-depth review of the Group’s
financial projections and the application of appropriate stress
scenarios. The Committee took into account the impact of risks,
including climate change and prevailing macroeconomic factors,
so that it can recommend that the Board can make the viability
statement, as set out on page 34, and to support the going
concern basis of preparation of the financial statements.
Legal
Legal reports provide the Committee with information about
emerging legal risks and notable developments in new law and
regulation. The reports also provide detail on any material
ongoing disputes and litigation in which the Group is interested or
may have exposure. During the year, notable topics on which the
Committee was briefed included the impact of incoming legislative
change in the UK concerning sustainable finance, the Employment
Rights Bill and capital markets reforms, as well as the development
of global AI regulation.
Risk and internal controls
The Board has overall responsibility for the Company’s system
of internal controls, the ongoing monitoring of risk and internal
control systems, and for reporting on any significant failings or
weaknesses. The system of controls is designed to manage rather
than eliminate the risk of failure to achieve the Group’s strategic
objectives and can only provide reasonable assurance against
material misstatement or loss. The Board has delegated to the
Committee responsibility for monitoring and reviewing the
effectiveness of the Risk and Internal Control framework.
The Committee carried out the annual assessment of the
effectiveness of internal controls during 2024, including those
related to the financial reporting process. The Committee also
considered the adequacy of the Group’s risk management
arrangements in the context of the Group’s business and strategy.
In carrying out this assessment, the Committee reviews the results
of the annual risk and control assessments, any significant risk
events, and actions taken to remediate these. The Committee
also considered reports from the Global Head of Finance, Group
General Counsel, Chief Risk Officer, Head of Group Internal Audit
and EY. This enabled an evaluation of the effectiveness of the
Group’s Internal Controls framework. As part of the internal
control process, each member of the Group ExCo has attested
to the appropriateness and adequacy of risk management
arrangements in their area, and has confirmed that appropriate
controls are in place.
The Group continually works to enhance systems to support and
improve the control environment.
Fair, balanced and understandable
A key focus for the Committee is its work in assisting the Board in confirming that the Annual Report and Accounts, when taken as
a whole, is fair, balanced and understandable, and assessing whether it provides the information necessary for shareholders to
assess the Group’s position and performance, business model and strategy. In assessing this, the Committee considered the key
messages communicated in the 2024 Annual Report and Accounts, as well as the information provided to the Committee and the
Board as a whole during the year.
The Committee, having completed its review, recommended to the Board that, when taken as a whole, the 2024 Annual Report
and Accounts is fair, balanced and understandable, and provides the information necessary for shareholders to assess the
Group’s position and performance, business model and strategy.
Audit and Risk Committee report continued
58 Schroders Annual Report and Accounts 2024
UK Corporate Governance Code
During the year the Committee reviewed progress against the
enhanced requirements in the 2024 UK Corporate Governance
Code. A detailed evaluation of the impact of all changes on our
governance and risk management arrangements concluded that,
for the Group, the key change was the requirement for the Board
to provide a declaration of the effectiveness of our material
controls, as set out in Provision 29 of the Code.
We initiated a review of our existing Risk and Control Assessment
hierarchy and have developed a framework for meeting these
requirements. This work is ongoing and will extend throughout
2025, as we continue to refine our framework in anticipation of
change.
Risk and Compliance
Risk and Compliance reports set out changes in the level or nature
of the key risks faced by the Group. These reports also cover
developments in the approach to managing these risks and
provide information on significant operational risk events.
The reports outlined the Group’s management of key regulatory
engagements and change programmes throughout the year and
the planning and execution of the compliance assurance
programme covering testing, monitoring and automated
surveillance. Additional specific reports allowed the Committee to
consider a range of factors when determining the key emerging
and thematic risks and uncertainties faced by the Group. These
included assessments of risk tolerance and stress testing of the
Group’s capital and liquidity positions, as well as the production of
the Group’s operational resilience self-assessment, recovery plan,
resolution process and wind-down plan.
During the year the Committee reviewed the Group’s
arrangements in relation to conflicts of interest, financial crime,
information and technology risk, as well as conduct and culture
risk. Additionally, the Committee considered regulatory change
and the supervisory horizon, engagement with regulators, cyber
resilience, office physical security, oversight of third-party
suppliers, and the Group’s whistleblowing protocols. The
Committee heard from the Group Head of Financial Crime
Compliance on the programme of work for compliance with the
UK’s Economic Crime and Corporate Transparency Act 2023.
Further information can be found in the risk management section
of the Strategic report set out on pages 26 to 31.
Internal Audit
The Committee has authority to appoint or remove the Head of
Group Internal Audit, who reports directly to the Chair of the
Committee. During 2024, the Committee approved the Internal
Audit Charter.
The Committee also has responsibility for approving the Internal
Audit budget and being satisfied that the function has appropriate
resources and skills and continues to be an effective and valued
assurance function within the Group. The function monitors
developments in internal audit practices and undertakes quality
and assurance activities. In satisfying itself as to the quality and
expertise of the function, the Committee reviews reports on
progress against a rolling plan of audits approved by the
Committee. These reports include any significant findings from
audits performed, including any observations on culture and
recommendations to improve the control environment, and their
subsequent remediation. In addition, the Committee had regular
interaction with the Head of Group Internal Audit, both at
committee meetings and also through other regular meetings
outside the formal schedule.
The function also continued to make progress in its development
of a data analytics capability to deliver additional insights and
efficiencies, and these will continue in 2025.
During 2024, a broad range of audits were conducted across the
Group. The 2024 Internal Audit plan was continually reassessed by
the Committee and Internal Audit to allow for the appropriate
allocation of resources and to remain in line with the risk profile of
the business. The annual compliance testing and Internal Audit
plans are developed using a risk-based approach to provide
proportionate assurance over the Group’s controls for the key
risks set out on pages 26 to 31. For example, as in previous years,
in 2025 a range of audits will be undertaken by IT auditors to test
the adequacy of aspects of the Group’s cyber security and other
technology risks. Planned audits also include: investment teams;
sustainability-related processes; Schroders Capital; key back-office
activities; a broad range of business activities in Asia Pacific;
infrastructure functions; and Wealth Management. As well as
undertaking internal audit projects, senior Group Internal Audit
staff attend relevant oversight and management committees and
regulated entity Board meetings to provide input and challenge on
the topics discussed.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
59 Schroders Annual Report and Accounts 2024
Oversight of the external auditor
Auditor oversight conclusion
The Committee is satisfied with EY’s work and that it is objective
and independent. Accordingly, the Committee has recommended
to the Board that a resolution be put to the 2025 AGM for the
reappointment of EY as external auditor, and the Board has
accepted this recommendation.
The Committee places great importance on the quality,
effectiveness and independence of the external audit process. The
Committee oversees the relationship with EY, including
safeguarding independence, approving non-audit fees,
recommending the auditor’s appointment at the AGM and
determining the auditor’s remuneration.
The external audit was last put out to tender in 2016, with EY
starting as the Group’s auditor for the financial year commencing
1January 2018. The next external audit tender will take place
within ten years of EY’s appointment, and by 2027 at the latest. We
will conduct a competitive tender process in advance of this date if
it is considered to be in the best interests of the Company. Ahead
of recommending the reappointment of the external auditor to
the Board and shareholders, we perform an assessment of
external audit quality to ensure we maintain the highest possible
standards. In line with requirements, the previous lead audit
partner was rotated after five years, and James Beszant has been
Lead Audit Partner since the 2023 audit. Having served on the
audit team since the 31December 2018 year end, James is
required to rotate after the 31December 2024 year end, and
Simon Michaelson will succeed James as Lead Audit Partner for the
2025 audit. The Committee confirms that the Company has
complied with, throughout the year under review and as at the
date of this report, the provisions of the Competition and Markets
Authority (Penalties) Order 2014 relating to the UK audit market
for large companies.
During the course of the year, the Committee did not make any
changes to the scope of the audit as they concluded that it was
sufficient.
Assessment of audit quality and effectiveness
The Committee is responsible for evaluating the performance of
the external auditor. In February 2024, ahead of consideration of
the 2023 Annual Report and Accounts, the Committee received
initial feedback on the conduct of the 2023 audit, which identified
no significant areas of concern. A full assessment of the external
auditor was carried out by way of a questionnaire prepared in
accordance with the FRC’s guidance and completed by key
stakeholders.
Interviews with senior managers and Group Finance were also
held. The findings of the questionnaire were presented to the
Committee in May 2024. EY generally scored highly in the auditor
effectiveness questionnaire and was assessed to have further
improved in the sixth year of its audit. Areas of improvement were
identified and discussed with EY to allow for enhancements to be
made ahead of the 2024 audit.
The Committee reviewed the 2024 external audit plan presented
to the Committee in May 2024. The plan included considering the
impact of changes to the business, significant projects undertaken
in the year and continued market volatility as a result of global
macroeconomic and political factors. Updates were received from
the external auditor throughout the year, demonstrating that
professional scepticism had been applied through challenge of
judgements, estimates and disclosures. Matters arising from the
audit were communicated to the Committee on an ongoing basis.
The Committee reviewed and discussed the findings of the FRC’s
audit quality inspection report results for EY. The Committee
discussed the impact on the Schroders audit plan, and how EY
maintains and monitors a high-quality audit generally, noting the
importance of continued investment in the digitalisation of audit
procedures, allowing more focused time on analysis of
judgements and risks. EY undertakes a range of processes that are
designed to promote, embed and monitor audit quality. The
structure of the audit team has been designed by the Lead Audit
Partner to deliver and maintain a high-quality audit. EY continues
to assess the structure, experience and knowledge of the team,
with a view to maintaining and enhancing audit quality. In making
this assessment, the Committee and EY have discussed and
considered several Audit Quality Indicators (AQIs).
These include: audit planning milestones; hours spent; internal
and external reviews and results; training undertaken and
experience of the team; senior team members’ responsibilities and
their time commitments; and the extent to which specialists are
involved in the audit.
Independence and non-audit services
The Committee has responsibility for monitoring the
independence and objectivity of the external auditor. Since its
appointment, EY has continued to confirm its independence, and
this remained the case during 2024 and prior to issuing its opinion
on the Annual Report and Accounts. In addition to the annual
review of effectiveness, the Committee considered EY’s
independence and objectivity throughout the year. No Committee
member has a relationship with the external auditor which impacts
independence.
A key factor in ensuring auditor independence is the Committee’s
consideration of the provision of certain non-audit services by EY.
The Committee maintains a policy on the engagement of the
auditor for the provision of non-audit services to safeguard its
independence and objectivity. This policy is reviewed annually and
takes account of relevant regulatory restrictions and guidance in
the jurisdictions in which the Group operates, including those in
the UK. The policy prohibits the provision of certain non-audit
services and contains rules regarding the Committee approving
permitted non-audit services.
Details of the total fees paid to EY are set out in note 3(c) to the
accounts. The policy on non-audit services restricts the
appointment of EY to the provision of services that are closely
related to the audit. Other services, where they are not prohibited,
may also be considered, but these will not normally be approved
by the Committee. Certain services that are provided to the Group
are closely related to the audit but are not required by regulation.
The Committee considers that these services are most
appropriately performed by the Group’s external auditor as they
support the statutory audit and provide the external auditor with
relevant insights on aspects of the business, although they are not
necessarily directly related to the financial statements.
Non-audit fees, excluding audit-related assurance services
required under regulation, equated to 16% of audit fees (2023:
19%).
During 2024, non-audit services mainly comprised assurance
services in respect of controls reports and regulatory reporting
normally conducted by the Group’s external auditor. These
services are assurance in nature and are not considered to
present a risk to independence.
Audit and Risk Committee report continued
60 Schroders Annual Report and Accounts 2024
Audit Committees and the External Audit: Minimum
Standard
In May 2023, the FRC published the Audit Committees and the
External Audit: Minimum Standard, which took effect immediately
for FTSE350 companies on a comply or explain basis. This report
describes how the Committee has complied with each relevant
provision of the Minimum Standard during the year.
Committee performance in 2024
The annual evaluation of the Committee’s effectiveness was
undertaken as part of the overall Board evaluation process. The
findings relating to the Committee were discussed with the
Committee Chair. The performance of the Committee was
described as strong, with a focus on the right issues during the
year. Feedback on the new Committee chair, and his approach
during the year was positive.
Committee’s assessment of internal control and
risk management arrangements
The Committee was content with the effectiveness of the Group’s
processes governing financial and regulatory reporting and
controls, its culture, its ethical standards and its relationships with
regulators. The Committee was also satisfied with the
appropriateness and adequacy of the Group’s risk management
arrangements and supporting risk management systems,
including: the risk monitoring processes, Internal Control
framework and the three lines of defence model.
Priorities for 2025
As well as considering the standing items of business, the
Committee will also focus on the following areas in 2025:
– Cyber and technology risk
– Thematic and industry-related risks
– Operational resilience
– Regulatory change
By order of the Board.
Iain Mackay
Chair of the Audit and Risk Committee
5March 2025
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
61 Schroders Annual Report and Accounts 2024
Incentivising the
delivery of our
vision
Matthew Westerman
Chair of the Remuneration Committee
Committee membership
Matthew Westerman (Chair)
Rhian Davies (until 25 April 2024)
Ian King
Annette Thomas
Frederic Wakeman (from 1 August 2024)
Deborah Waterhouse (until 31 May 2024)
See page 41 for meeting attendance and page 42 for a summary of
the responsibilities of the Committee.
On behalf of the Remuneration Committee, I am pleased
toprovide an overview of both executive Director and
widerworkforce remuneration for the 2024 financial year.
2024 saw the appointment of a new Group Chief Executive,
Richard Oldfield. The Committee determined Mr Oldfield’s
remuneration arrangements in accordance with the shareholder-
approved Directors’ Remuneration Policy (the Policy). Considering
Mr Oldfield’s qualifications, experience and appointment into the
same role as his predecessor, the Committee decided to maintain
the same salary andmaximum total compensation levels as his
predecessor. Upon accepting the proposal, MrOldfield requested
that his increase in base salary be deferred until 1March 2025, in
line with the effective date of salary changes for our wider
employees. He also requested that his existing total remuneration
cap continue to apply for the remainder of 2024, thereby lowering
his potential maximum total compensation by over £650,000 for
the year.
Mr Oldfield has made an immediate and significant contribution in
his role as Group Chief Executive, providing a fresh perspective on
management and driving efficiencies, such as through the creation
of a new Group Executive Committee (Group ExCo) to support
improved decision-making and a focus on delivering cost-savings.
Our transformation is ongoing, and the Board is focused on
setting Schroders on a clear trajectory of continued long-term
growth. From a remuneration perspective, the appointment of a
new executive team provides a natural stepping stone into our
intended review of the Policy in 2025/26. We will be seeking
shareholder approval for a new policy – aligned with our refreshed
strategy and implementation plans – at the 2026 AGM.
Ahead of that, we are seeking to make some changes in how we
implement the current policy in 2025, to ensure that the
framework reflects the direction of travel for Schroders, with a
focus on improved financial performance and creating prosperity
for all our stakeholders.
In particular, we are proposing to rebalance the incentive
opportunity to place greater emphasis on the long-term incentive
plan (LTIP). The Group Chief Executive will receive an LTIP award of
£1.5 million (300% of salary) in 2025 (up from £600,000 or 120% of
salary in 2024); funded from within the existing total remuneration
cap, this entails a matching £900,000 reduction in his 2024 annual
bonus opportunity. This materially increases long-term alignment
without any increase in his overall package.
In addition, the performance metrics for the annual bonus and
LTIP will be adjusted for 2025 to ensure they reflect our current
priorities. Full details of the changes and the link to our strategy
are set out in the 2025 implementation section from page 71.
Key actions taken in 2024
Appointing a new
Group Chief
Executive
– Approved terms of appointment for new Group Chief Executive, with Mr Oldfield waiving the increased total
remuneration cap for 2024, thereby lowering potential maximum remuneration by over £650,000.
– Approved retirement arrangements for the former Group Chief Executive, with shareholding requirements
continuing to apply for two years.
Other executive
Director changes
– Determined remuneration arrangements for the new Chief Financial Officer (CFO), Meagen Burnett, with
total compensation lower than her predecessor.
– Agreed remuneration arrangements for the Group Chief Investment Officer (CIO), Johanna Kyrklund, a
newly created Board position.
Increasing long-
term alignment
– Strengthened long-term alignment by rebalancing remuneration components, and increasing the LTIP grant
level to £1.5 million for the Group Chief Executive (from £600,000) within existing total compensation cap.
– Approved LTIP grants for the CFO and CIO in respect of 2024, in line with the Policy and widened
participation to the Group ExCo to increase their long-term alignment.
Changes to
incentive measures
– Reviewed the performance measures for the 2025 annual bonus and LTIP to place greater emphasis on
improving shareholder returns and tightening focus on investment performance.
2021 LTIP vesting – Confirmed no LTIP to vest for executive Directors in 2024, following waiver of awards in 2021 with
£1,000,000 grant date face value by the former Group Chief Executive and former CFO.
Remuneration report
62 Schroders Annual Report and Accounts 2024
Role of the Remuneration Committee
The principal role of the Committee is to assist the Board in fulfilling its oversight ofexecutive and wider workforce remuneration.
All members of the Committee are independent non-executive Directors. Biographical details and the experience of members are
set out on pages 36 to 39.
The Board has determined that, by virtue of their previous experience gained in other organisations, members collectively have the
competence relevant to the sector in which the Group operates.
The Committee’s primary responsibilities include:
– Reviewing the Group’s remuneration strategy and recommending the Directors’ remuneration policy to theBoard
– Determining the remuneration of theGroup Chair and the executive Directors within the policy approved byshareholders
– Determining the level and structure ofremuneration for other senior executives (including members of the Group ExCo, the
Chief Risk Officer, the Head of Group Internal Audit and the Group Company Secretary), monitoring the level and structure of
remuneration forother material risk takers, and overseeing remuneration more broadlyacross the Group
– Recommending to the Board theannual spend on fixed and variableremuneration
– Reviewing the design and operation ofshare-based remuneration, other deferred remuneration plans and employee carried
interest-sharing arrangements
– Overseeing any major change in theemployee benefits structure throughout the Group
– Reviewing remuneration disclosures and compliance with relevant requirements
– Receiving and considering feedback from shareholders and representative shareholder bodies
The Committee’s terms of reference areavailable on our website at www.schroders.com/board-committees
Arrangements for new executive Directors
The year also saw the announcement of two new executive Director
appointments, effective on 1January 2025. Meagen Burnett was
appointed CFO, succeeding Richard Oldfield, while Johanna
Kyrklund joined the Board as Group CIO. The Committee
determined a maximum total remuneration of £3.5 million for
Ms Burnett. The maximum is positioned lower than that of her
predecessor to reflect this being her first CFO and executive
Director appointment. Noting the breadth of the role and
acknowledging pay levels across global asset management peers,
the Committee will keep this total compensation level under review
as Ms Burnett gains experience and delivers in the role.
With a depth of industry and investment experience, Johanna
Kyrklund’s appointment to the Board elevates our focus on
investment excellence and client needs. As this role is new to the
Board, the Committee considered what would represent an
appropriate total remuneration cap. The Committee reviewed
market data, noting the breadth of her role capturing oversight of
overall Group investment performance as well as her role as Chief
Executive Officer of our largest and most profitable business, Public
Markets. The Committee concluded a maximum total
compensation cap of £6.5 million would be appropriate, noting this
level would only be reached in the event of exceptional outcomes
for shareholders, clients and wider stakeholders. Ms Kyrklund’s
salary is set at £375,000 in line with that of the CFO. Further details
are set out on page 71.
Arrangements for the former Group Chief Executive
In April 2024, we announced that, after a decade on the Board,
Peter Harrison had signalled his intention to retire. He stepped
down as Group Chief Executive and as an executive Director on
8November 2024 and continued as an employee until
31December 2024.
Mr Harrison was eligible for an annual bonus for his performance
during the full year, based on a combination of the executive
Director annual bonus scorecard, his continued contribution to the
firm’s strategic priorities, and an effective transition of
responsibilities through to 31 December.
Deferred bonus awards previously granted to Mr Harrison will
continue to vest based on the terms and conditions under which
they were granted, and his 2022, 2023 and 2024 LTIP grants will be
pro-rated for the time elapsed with the firm during the
performance period, with awards continuing to be subject to
performance in the normal manner. He will not receive an LTIP
grant in 2025 and shareholding requirements continue to apply
for two years after stepping down.
2024 remuneration outcomes
Over the year, we have experienced a difficult operating
environment and this has been reflected in our share price
performance. The Board is committed to addressing this
through a clear, funded plan to drive revenue growth. Despite the
challenges faced in 2024, we have seen notable successes, such as
65% of assets outperforming their relevant comparator over three
years in our market-leading global equities strategies. We also
ranked in the top five asset management brands globally and
demonstrated continued growth in our Schroders Capital and
Wealth Management businesses.
The Committee considered it important to reflect the broader
shareholder experience in bonus outcomes this year for the
current and former executive Directors, and therefore determined
that it was appropriate to consider a discretionary reduction to the
54% outcome of the scorecard for the year. As a result, a reduction
in bonus of £550,000 (on a full-year basis) was agreed for the
former Group Chief Executive, representing a 12% reduction on
the pre-adjustment bonus. For Richard Oldfield, the Committee
noted the scorecard outcome had already been adjusted
downwards by 20% by virtue of Mr Oldfield voluntarily waiving his
2024 total compensation increase at the time of his appointment
as Group Chief Executive. This waiver was agreed in recognition of
the shareholder and stakeholder experience at the time and
represents a reduction of over £340,000 to his 2024 bonus. As
such, the Committee concluded no further adjustment should be
applied. Further details of 2024 performance and outcomes are
set out on pages 66 to 69.
Other areas considered by the Committee in 2024
– Overall fixed and variable compensation spend for the year
– Review of compensation outcomes, including control function
input, sustainability of earnings, diversity and competitiveness
– Review of gender and ethnicity pay gaps
– Review of remuneration disclosures
– Regulatory matters, including Material Risk Takers framework,
annual independent review of remuneration and Group Risk
Adjustment framework
– Shareholder and voting agency feedback on remuneration
– Annual reviews of terms of reference, advisers and senior
executive shareholding levels
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
63 Schroders Annual Report and Accounts 2024
Our remuneration
philosophy
Our vision is to partner with our clients to provide trusted advice
and invest in the assets and markets that matter to them, building
their future prosperity through delivering excellent investment
outcomes. Paying our people based on the value we create for our
stakeholders will secure our ability to deliver our purpose of
creating prosperity together. This is why the remuneration
principles underpinning how all our people are paid are centred
on creating alignment with our key stakeholder groups.
How our approach to remuneration creates alignment with our key stakeholders
Our key
stakeholders Our remuneration principles
Our executive Director remuneration
approach
Shareholders
Aligned with shareholders
A proportion of variable remuneration for higher-
earning employees and material risk takers is granted
in the form of deferred awards over Schroders shares.
This aligns the interests of employees and
shareholders. Executive Directors and other members
of the Group ExCo are required, over time, to acquire
and retain a significant holding of Schroders shares or
rights to shares. Vested share-based awards from
bonuses are unable to be exercised until the
requirement has been met.
– Circa 45% of bonus paid in shares.
– Stretching shareholding requirements.
– Requirement to maintain a level of
shareholding for two years on stepping
down.
Aligned with financial performance
Our ratio of operating compensation costs to net
operating income guides the total spend on
remuneration each year. The Committee recommends
this to the Board.
– Financial metrics comprise 70% of annual
bonus scorecard.
– 80% of 2025 LTIP awards based on long-
term financial and investment
performance.
Clients
Aligned with clients
A proportion of variable remuneration for higher-
earning employees and material risk takers is granted
as fund awards, which are notional investments in
funds managed by the Group. This aligns the interests
of employees and clients.
– Client investment performance included
in the annual bonus scorecard and as a
2025 LTIP measure.
– Circa 35% of bonus paid in fund awards.
Our people
Competitive
Employees receive a competitive remuneration
package, which is reviewed annually and benchmarked
by reference totheexternal market. This allows us to
attract,retain and motivate highly talented people,
regardless of gender, age, race, sexual orientation,
disability, religion, socio-economic background or
other diversity facet.
– Competitiveness considered by reference
to total compensation for comparable
roles at other large international asset
management firms.
– Benchmarking forms a point of reference,
not a primary factor in remuneration
decisions.
Designed to encourage retention
Deferred variable remuneration does not give rise to
any immediate entitlement. Awards normally require
the participant to be employed continuously by the
Group until at least the third anniversary of grant in
order to vest in full.
– Circa 60% of variable pay deferred over a
three-year to three-and-a-half-year
period.
– LTIP subject to four-year performance
period and additional one-year holding
period, ensuring no release until at least
five years from award.
Society and
environment
Designed to promote the long-term,
sustainable success of the Group
Sustainable leadership is key to our business and flows
from our long-term outlook. Performance against
sustainability goals is considered in the annual
compensation review for individuals who have the
ability to influence our investment and business
operations, ensuring alignment with our commitment
to responsible practices.
– Annual bonus scorecard includes
sustainability-aligned metrics in both the
financial and non-financial scorecard
elements.
– 2025 LTIP includes 20% weighting on a
climate-related metric, linked to ourlong-
term commitment to protecting our
planet.
Remuneration report continued
64 Schroders Annual Report and Accounts 2024
Our remuneration philosophy continued
The remuneration principles underpinning how we pay all our employees also apply to our executive Directors. The graphic below
summarises the key pay elements that apply to our executive Directors, along with the timescales over which the remuneration is
released. Full details of our policy approved by shareholders at the 27 April 2023 Annual General Meeting can be found on our website at
www.schroders.com/rempolicy.
Illustration of our executive Directors remuneration policy
Pay
elements
Total annual compensation
Fixed
pay
Upfront annual bonus
(circa 40% of bonus)
Deferred annual bonus
(circa 60% of bonus)
LTIP
Award
mechanics
Delivered in cash
(circa 20% of bonus)
Delivered in fund awards
(circa 20% of bonus)
Delivered in share awards
(circa 45% of bonus)
Delivered in fund awards
(circa 15% of bonus)
Delivered
in shares
Alignment over the longer term: Illustration of timescales for 2024 performance year
Cash
bonus
6-month
holding period
1-year
deferral
1.5-year
deferral
2-year
deferral
2.5-year
deferral
3-year
deferral
3.5-year
deferral
4-year
deferral
Feb
2025
Sep
2025
Mar
2026
Sep
2026
Mar
2027
Sep
2027
Mar
2028
Sep
2028
Mar
2029
Sep
2029
Mar
2030
Sep
2030
Mar
2031
Sep
2031
Mar
2032
Sep
2032
Upfront annual bonus: half paid in cash in February after the end of
the performance year and half granted as an upfront fund award,
subject to a six-month holding period.
Deferred annual bonus: granted 75% as a deferred share award,
available to exercise in equal instalments after 1, 2 and 3 years from
grant, and 25% as a deferred fund award, available to exercise in
equal instalments after 1.5, 2.5 and 3.5 years from grant.
Shareholding requirement: CEO 500% base salary Other executive Directors: 300% base salary
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
65 Schroders Annual Report and Accounts 2024
Malus may be applied
from the date on
which the award is
granted/established
until settlement.
Clawback may be
applied for a period of
up to seven years
from the date of grant
unless the Committee
decides to extend it in
the event of an
investigation that
could lead to the
application of
clawback were it not
for the expiry of the
clawback period.
Cash
Funds
Shares
Funds
Shares
Funds
Shares
Funds
Holding
period
Shares
2024 outcomes
Performance context
While 2024 has seen notable successes, we have also
encountered a challenging operating environment that
has impacted our financial performance in Public Markets
and areas of our Schroders Capital flows. Our assets under
management (AUM) have grown to £778.7 billion, an increase
of 4% on 2023, although net new business decreased total
AUM by £4.7 billion (including joint ventures and associates).
We reported an operating profit of £640.5 million (2023: £661.0
million) and profit before tax of £558.1 million (2023:£487.6
million). The Board has recommended a final dividend of 15.0
pence per share. This results in a total dividend for the year of
21.5 pence per share (2023: 21.5 pence per share).
Our notable successes this year include the growth of our equity
strategies, and our Schroders Capital and Wealth Management
businesses. In 2024, we also announced the formation of
Future Growth Capital with partner Phoenix Group, the UK’s
biggest long-term savings business. Lastly, we are making
progress in simplifying parts of our business and operations,
which will enable us to manage costs and drive efficiencies in
a way that supports profitable growth moving forward.
For more information on our strategic and financial performance,
please see the Group Chief Executive’s and Chief Financial Officer’s
statements, beginning on page 8 and page 18, respectively.
Group-wide remuneration outcomes
When discussing remuneration outcomes for the year, the
Committee focused on the need to incentivise and retain our top
performers and key talent while remaining within our target
operating compensation ratio. Meaningful differentiation was
therefore a key focus of this year’s review.
The Committee considered both financial and non-financial
performance when setting the bonus pool, as well as an
assessment of overall market conditions and wider stakeholder
experience. The Committee and Board concluded that a bonus
pool of £275 million struck the right balance across relevant
stakeholders, including shareholders, clients and employees.
When combined with salary increases made earlier in 2024, the
total compensation change for employees was generally between
+1% and +12%. Our people are paramount to the successful
delivery of our strategy and we are proud that 94% of our key
talent was retained in 2024.
Individual bonus and salary amounts were determined according to
our Fair Pay for Performance framework, summarised to the right.
In reviewing outcomes, the Committee evaluated analytics on
differentiation, diversity and competitiveness and was satisfied that
the year-end process was rigorous and that outcomes reflected
financial and non-financial performance, including conduct.
Salary increases for 2025 were determined mindful of the
implications for our cost base, following the National Insurance
Contribution increases announced by the UK Government. This
resulted in an overall salary increase of 1.5%, targeted towards
individuals with significant increases in role or responsibilities.
2024 bonus pool 2024 2023
Operating compensation ratio
46%
46%
Bonus-eligible employees
5,761
6,014
Bonus pool
£275m
£288m
% change bonus (median)
-3%
-15%
% change total compensation (median)
+5%
+3%
Key performance and remuneration metrics
Net operating income Operating earnings per share
0%
-2%
2024
2023
-7%
-13%
2024
2023
Net operating profit Dividend per share
-3%
-9%
2024
2023
0%
0%
2024
2023
Headcount Annual bonus pool
-1%
0%
2024
2023
-4%
-18%
2024
2023
Fixed remuneration costs Total remuneration costs
3%
3%
2024
2023
1%
-1%
2024
2023
Fair pay for performance
Remuneration outcomes for our employees are governed
by our Fair Pay for Performance framework. This
framework, available to all employees on our intranet,
describes the variety of factors considered in making pay
decisions at Schroders, including:
– Annual performance – including individual
performance/contribution, behaviours and conduct,
business and sub-business line performance as well
asGroup-wide performance and affordability.
– Individual achievement – including an individual’s skills/
experience, progression, succession and future potential
as well as consideration of multi-year performance
context.
– Market context – consideration of market pay levels for
a given role/geography and review of relevant
competitor insights, local market conditions and general
market outlook.
– Relativities – ensuring fairness of outcomes versus
peers and market.
Remuneration report continued
66 Schroders Annual Report and Accounts 2024
Executive Director remuneration outcomes
2024 annual bonus
Executive Director bonuses are determined by the Committee
through a balanced scorecard approach. At the start of 2024, the
Committee established and disclosed metrics consisting of 70%
financial factors and 30% non-financial factors. These were
selected to align to the Group’s long-term strategy and no
changes were made during the year. At the end of the year, the
Committee assessed the level of performance against the financial
target ranges. Meeting the threshold leads to a 25% payout,
achieving the target results in a 65% payout, and reaching the
maximum leads to a 100% payout.
The table belowprovides details of the target ranges for the
financial metrics and the corresponding payouts. Target ranges
are set with reference to the Board-approved budget, market
expectations, prior-year outcomes, strategic priorities and the
wider market outlook. When setting target ranges, the Committee
is mindful of the potential significant impact that evolving market
conditions could have on bonus outcomes. The overall financial
scorecard outcome was 42% out of the maximum 70%.
The bonus scorecard also includes non-financial performance,
whichtheCommittee evaluates based on objectives established at
the beginning of the year. This is combined with anassessment
ofeach individual’s personal performance. The Committee
acknowledged the achievements detailed on the next page,
whichinclude: the achievement of record-high AUM in Wealth
Management, ranking fifth overall out of 2,600 asset managers in
an independent global asset management brand ranking study,
the acquisition of Whitley Asset Management, and the sourcing of
100% renewable electricity for all owned or leased offices, globally.
However, the Committee recognised that progress against
aspirational targets relating to operating model review and
strategic partnerships had not been fully met and there was more
to do on the Client Group model. As such, the Committee
determined an outcome below target would be appropriate for
non-financial performance against the Group scorecard this year.
Based on the non-financial performance achieved against the
Group scorecard as well as personal performance, the Committee
confirmed non-financial scorecard outcomes of 12% for Richard
Oldfield and Peter Harrison, outofthe maximum 30%. Mr
Harrison’s bonus was calculated on a full-year basis against the
scorecard, including both the executive Director portion as well as
the period he remained an employee from 9 November to his
departure on 31 December 2024. For Mr Oldfield, the rebalancing
of total compensation opportunity towards the LTIP meant the
bonus outcome was applied to a lower bonus opportunity,
resulting in over a £485,000 reduction in the resulting bonus
payout.
Following careful review of the formulaic outcome against the
wider context of the stakeholder experience over the year, the
Committee determined it was appropriate to consider a
downwards discretionary adjustment to the overall scorecard
outcome. As a result, a reduction in bonus of £550,000 (on a full-
year basis) was agreed for the former Group Chief Executive,
representing a 12% reduction on the pre-adjustment bonus. For
Richard Oldfield, the Committee noted the scorecard outcome had
already been adjusted downwards by 20% by virtue of Mr Oldfield
voluntarily waiving his 2024 total compensation increase at the
time of his appointment as Group Chief Executive. This waiver was
agreed in recognition of the shareholder and stakeholder
experience at the time and represents a reduction of over
£340,000 in bonus for 2024. As such, the Committee concluded no
further adjustment should be applied.
2021 LTIP
In addition to annual bonuses, executive Directors are also eligible
to receive LTIP awards. These awards are granted on an annual
basis and are based on performance in the previous year and
subject to stretching performance conditions over a four-year
performance period. In 2020 and 2021, in response to the societal
challenges posed by the Covid-19 pandemic, the former Group
Chief Executive and former Chief Financial Officer voluntarily
waived their LTIP awards, which had a total grant date face value
of £1 million. Consequently, these awards, which would have been
tested for performance to 31December 2024, have already been
forfeited. No amount will therefore vest in respect of these awards
for 2024.
Assessment of the financial metrics of the executive Directors’ 2024 annual bonusscorecard
2024 scorecard metric Weighting
Targets
Outcome
Metric payout %
of max for
metric
Bonus
payout % of
max bonus
Threshold
25% Target 65%
Maximum
100%
Operating profit (£m)
30%
550
650
750
641
61%
18%
Investment performance
3-year
20%
50%
60%
70%
58%
58%
16%
5-year
55%
65%
75%
76%
100%
Net new business (£bn) (excluding JVs and
associates)
10% -4.5 5.0 10.0 -10.8 –% –%
Proportion of Article 8 and 9 funds
1
10%
64%
69%
74%
71%
78%
8%
42%
1. Proportion of Article 8 and 9 funds is assessed as the proportion of the Group’s funds which are in scope of the Sustainable Finance Disclosure Regulation (SFDR).
Under SFDR, asset managers have to disclose how sustainability risks are considered in their investment processes and which of their products meet the disclosure
requirements of Article 6, Article 8 and Article 9. Article 8 products promote environmental or social characteristics, among others, but do not necessarily have them
as their overarching objective. Article 9 products must have sustainable investment as their objective. Article 6 products are those products that are in-scope of
SFDR, but do not meet the requirements for Article 8 or Article 9.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
67 Schroders Annual Report and Accounts 2024
Non-financial assessment for executive Director annual bonus scorecard
Criteria Performance in 2024
Strategic progress (see pages 2 to 15 for more information)
Client Group progress – Fifth overall out of 2,600 asset managers, in an independent global asset management brand ranking study.
– Client Service capacity being freed up to focus on Client Experience (growth, longevity and deepening
relationships) through re-homing of non-differentiating activities.
– Successful upskilling of Client Group teams in private markets, notably focusing on private markets for
wealth clients.
Operating model
review
– Evolution of management reporting and the method of allocating costs.
– Transitioning client service administration activities from fragmented regional model to regional hubs,
including Operations. Unlocking future opportunities for optimisation and automation.
– Delivered operating model to support onboarding of all assets of a defined benefit pension scheme for
employees of a large UK retailer, serviced with bespoke equities mandates.
– Acquisition and integration of DWS’s sustainable investments team in China with significant fundraising
opportunity.
Major partnerships – Launch of Future Growth Capital (FGC) with Phoenix Group.
– Regulatory approval for the first UK dedicated multi-asset long-term asset fund to be entirely aligned with
the Mansion House Compact.
Continued growth of
Wealth Management
– Cazenove Capital achieved £4.0 billion net new business, achieving 8% growth and exceeding growth target
of 5–7% per annum, with a record-high AUM.
– Positive net flows driven by our advised business, reflecting continued momentum in Cazenove Capital.
– Cazenove Capital leading the way as one of the first wealth managers to announce plans to adopt an SDR
label across three sustainable flagship funds.
– Acquisition of Whitley Asset Management, extending our family office capability, and successful delivery of
target circa 94% of acquired AUM retained.
Sustainability (see pages 22 to 25 for more information)
Climate engagement
with companies
– Strong engagement with companies on sustainability topics, conducting 4,713 engagements, including those
focused on climate change.
– In-scope group investments reached a medium-term temperature in line with our target of 2.2°C by 2030,
based on the CDP-WWF alignment framework.
– Launched the Sustainability Insights Tool for SustainEx
TM
, an interactive interface that uses our proprietary
ESG model to analyse and provide insights on clients’ custom portfolios and Schroders mandates.
Progress versus
theGroup’s own
multi-year climate-
related targets
– Good progress made against our multi-year target of reducing Scope 1 and Scope 2 emissions by 46% by
2030 from a 2019 base year, with a 39% reduction achieved, outperforming the 1.5°C science-based
trajectory.
– Sourced 100% renewable electricity for all owned or leased offices, globally.
– Achieved a 39% reduction in Scope 3 business travel emissions, towards the 50% reduction target by 2030.
Continued evolution
of Sustainability and
Impact framework
– Achieved significant inflows into investment strategies with specific climate objectives.
– Joined BlueMark Practice Leaderboard, the leading industry provider for external verification of impact
management and measurement frameworks, successfully launched eight new impact strategies and
achieved third position in the global NMG Brand ranking for impact investing.
– Established unified Group Sustainable Investment Policy, covering public and private markets.
People and talent (see pages 16 to 17 for more information)
Retention and
engagement
– 87% of our people are proud to work at Schroders.
– 84% would recommend Schroders as a good place to work.
Inclusion and diversity – 89% say Schroders is committed to inclusion and diversity.
– 83% agree that the company cares about their health and wellbeing.
– Recognised externally for efforts in inclusion and diversity, including ranking within the top 75 UK employers
on the Social Mobility Employer Index and winning two awards at the Citywire Gender Diversity Awards (Best
AUM Split and Most Improved Retention Rates).
– Increased global disclosure rates against key diversity facets.
Risk and conduct (see pages 26 to 31 for more information)
Governance, risk and
reputation
– Strong ownership and engagement by line management with respect to the Risk and Control Assessments.
– Good standing with regulators, with sustained effort put into relationships.
– Favourable reports from control function heads indicating positive risk profile assessment.
Remuneration report continued
68 Schroders Annual Report and Accounts 2024
Personal performance assessment
for the Group Chief Executive (and former Chief
Financial Officer)
During Richard Oldfield’s tenure as Chief Financial Officer, he
demonstrated a dedicated approach focused on both delivering
for clients and developing people at Schroders. He provided a
fresh perspective on capital management, driving new initiatives,
such as the inaugural bond issue last year and embedding
commercial discipline across the Group.
Upon appointment to the Group Chief Executive role, Mr Oldfield
made an immediate impact despite stepping into the role at a
challenging time. Throughout the transition period, he worked
closely with Peter Harrison to maintain business continuity and
ensure minimal disruption to day-to-day operations for our clients
and our people.
Mr Oldfield formed a new Group ExCo to facilitate efficient
decision-making and drive the execution of our refreshed strategy.
In addition, he re-evaluated our statement of purpose to ensure
that clients remain central to our mission while looking to simplify
and scale effectively and profitably. Despite only having been in
role for a short period of time, the Board has been pleased with
progress to date and share a renewed sense of optimism looking
ahead.
As a result of the non-financial performance achieved in the
Groupscorecard and Richard Oldfield’s personal performance,
theCommittee confirmed a non-financial bonus scorecard payout
of 12% of the maximum 30%. The resulting scorecard outcome
was therefore 54% of maximum for Mr Oldfield, equating to
£1,390,000. The rebalancing of total compensation opportunity
towards the LTIP means this bonus outcome is over £485,000
lower than it would otherwise have been.
Personal performance assessment
for the former Group Chief Executive
Following over a decade dedicated to Schroders, Peter Harrison
stepped down as Group Chief Executive on 8 November 2024. His
commitment has been unwavering and continued throughout the
transition period, during which time he supported Richard Oldfield
in his new role and ensured a smooth handover process.
Mr Harrison has historically held a strong position with our
regulators and has continued to develop these relationships over
the course of the year, building a valuable reputation for
Schroders.
During his time as an executive Director, Peter Harrison played a
crucial role in securing and concluding the formation of Future
Group Capital in partnership with Phoenix Group. He supported
the growth of Wealth Management, with Cazenove Capital
performing well in the year, and led on the early stages of the
operating model review.
From a non-financial perspective, Mr Harrison was a formidable
advocate for inclusion and diversity and led transformation in the
culture and values at Schroders. He was also a driver of
sustainability progress, helping Schroders to be a sustainability
leader in the market.
Mr Harrison was fundamental to ensuring a successful, smooth
and timely handover of the Group Chief Executive role to
Mr Oldfield. Throughout the process, he supported both Mr
Oldfield and the Board Chair on key areas of the handover,
providing comprehensive briefings and continued engagement on
key topics. He continued to work with regulators, industry
associations and other stakeholders to develop Schroders as a key
global player, allowing Mr Oldfield to then build on this legacy
moving forward.
As a result of the performance against the non-financial
performance measures in the scorecard, as well as Peter
Harrison’s personal performance, the Committee confirmed a non-
financial bonus scorecard payout of 12% of the maximum 30%,
pro-rated for his tenure.
The resulting scorecard outcome of 54% of maximum for Mr
Harrison equated to £4,553,000. However, as set out on page 67,
the Committee determined that an adjustment of £550,000 (c.12%
of the scorecard outcome) was appropriate to more closely align
the outcome to the shareholder experience in the year. After the
adjustment, the resulting outcome for Mr Harrison is therefore
£4,003,000.
Single figure outcomes for 2024
The graphs illustrate the resulting single figure outcomes for the executive Directors, and how the outcomes compare with the policy
maximum that applied in 2024.
Executive Director Single total remuneration figure (£’000)
Group Chief Executive (and former Chief Financial Officer)
Richard Oldfield
2024 actual
2024 maximum
Former Group Chief Executive
Peter Harrison
2024 actual
2024 maximum
n
Fixed pay
n
Upfront bonus – cash
n
Upfront bonus – fund award
n
Deferred bonus – share award
n
Deferred bonus – fund award
n
LTIP
1
1. 2024 actual total remuneration reflects the amount shown in the single figure table on page 73, which would include any LTIP award whose performance period
concluded on 31 December 2024. As noted on page 67, the executive Directors waived entitlement to the 2021 LTIP and therefore no amount is included. 2024
maximum total remuneration reflects the 2025 LTIP award made in respect of 2024 performance. Mr Harrison was not eligible to receive a 2025 LTIP grant.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
69 Schroders Annual Report and Accounts 2024
1,812
4,500
4,484
9,000
23%
9% 18% 16% 5%
32% 32%
10%
3%
18% 33%
11%
6%
18% 18% 40% 13%
19% 19% 42% 14%
Stakeholder experience and executive Director pay
The Committee actively takes into account the perspectives of
various stakeholders when discussing and determining policies,
practices andoutcomes related to executive Director
compensation. It has the discretion to make adjustments
to compensation outcomes if consideredappropriate.
The graphic below provides a summary of key stakeholder
indicators that were reviewed by the Committee as part of its
decision-making thisyear. This includes data over multi-year
periods, reflecting the long-term nature of decision-making.
More information on many of theseindicators can be found in
the “Notes to the report on remuneration” section of this report
beginning on page 73.
In addition to the indicators mapped out below, the Committee
also closely monitors risk, compliance and regulatory matters in
its decision-making. This includes regular reports from control
function heads and the Conduct Assessment Group.
Our shareholders
Compensation outcomes
reflect key financial and
non‑financial performance
delivered in the year.
A significant portion of
compensation is paid in
shares and shareholding
requirements apply.
Our clients
Compensation outcomes
reflect investment
performance delivered.
A portion of compensation
is paid in fund awards.
Our people
Executive outcomes are
evaluated in the context of
broader workforce metrics,
both within the year and
overa multi-year horizon.
Society and
environment
Compensation outcomes
take into account
performance against
sustainability objectives.
The Committee tracks
diversity pay gaps and
reviews associated
disclosures.
Monitoring how we performed
Aggregate value of
share awards held by
executive Directors
Aggregate value of
fund awards held by
executive Directors
Change in median UK
employee total comp.
since 2020
Proportion of
Article 8 and 9 funds
£5.3m £2.0m +20% 71%
Reflecting alignment created
through share award deferral
Reflecting alignment created
through fund award deferral
CEO total compensation
over same period: (25)%
A sustainability-focused
metric in the bonus scorecard
See pages 78 to 79 for
more information.
See pages 78 to 79 for
more information.
See page 76 for
more information.
See page 67 for
more information.
Total shareholder
return over 10 years
AUM outperforming
stated comparator
(5years)
Mean annual salary
increase for employees
in 2024
Reduction in Scope 1
and Scope 2 emissions
against 2019 baseline
+4% 76% +7% 39%
CEO total comp. change
over the same period: (42)%
A key metric in the
bonus scorecard
Executive Director salaries
frozen since 2014
A sustainability-focused
metric in the LTIP scorecard
See page 81 for
more information.
See page 67 for
more information.
See page 76 for
more information.
See page 72 for
more information.
Votes in favour of
latest AGM
remuneration
resolutions
AUM outperforming
stated comparator
(3 years)
Executive Director
bonuses as a
proportion of total
bonus pool
Reduction in mean
global gender fixed
pay gap
96% Policy 58% 2% 5%
96% ARR
A key metric in the
bonus scorecard
Bonus pool funded through
total cost to net income ratio
Since first voluntary
publication in 2017
See page 82 for
more information.
See page 67 for
more information.
See pages 66 and 73 for
more information.
See page 16 for
more information.
Remuneration report continued
70 Schroders Annual Report and Accounts 2024
2025 implementation
Following strong support received by shareholders at the 2023 AGM, no formal changes are proposed to the Policy in 2025. As outlined
earlier in the Chair’s letter, the implementation of the Policy will be adjusted to ensure full alignment to the refreshed strategy, with
performance measures adjusted for the 2025 annual bonus scorecard and LTIP metrics. We will be seeking shareholder approval for a
new Policy at the 2026 AGM. We value ongoing dialogue with our shareholders and welcome their input andfeedback.
Remuneration arrangements for new
Executive Directors
Chief Financial Officer
Meagen Burnett was appointed CFO, effective 1January 2025. Ms
Burnett joined Schroders in January 2023 as Group Chief
Operating Officer. She has more than 25 years’ experience in
financial services, including 15 years in asset management. In her
new role as CFO, she will continue to provide oversight of
operations and technology, as well as taking direct responsibility
for financial management, capital and treasury.
Ms Burnett will receive a salary of £375,000, in line with that of her
predecessor. The maximum total compensation is positioned at
£3.5 million, lower than her predecessor, to reflect this being her
first CFO and executive Director appointment. Noting the breadth
of the role and acknowledging pay levels across global asset
management peers, the Committee will keep this total
compensation level under review as she gains experience and
delivers in the role.
Ms Burnett will participate in annual bonus and LTIP
arrangements in line with the Policy, with her first LTIP award
being made in March 2025, in respect of 2024 performance. She
will have a shareholding requirement of 300% of base salary and
be subject to the post-employment shareholding requirement.
Group Chief Investment Officer
Johanna Kyrklund joined the Board as Group CIO, effective
1January 2025, and assumed responsibility for oversight of
investment performance across all business lines. Ms Kyrklund
joined Schroders in 2007 as an investor to lead the UK Multi-Asset
business, and over the course of nearly two decades has grown
our Multi-Asset business into a global franchise.
Ms Kyrklund will receive a salary of £375,000. With a depth of
industry and investment experience, Johanna Kyrklund’s
appointment to the Board elevates our focus on investment
excellence and client needs. As this role is new to the Board, the
Committee considered what would represent an appropriate total
remuneration cap. The Committee reviewed market data, noting
the breadth of her role capturing oversight of overall Group
investment performance as well as her role as Chief Executive
Officer of our largest and most profitable business, Public Markets.
The Committee concluded a maximum total compensation cap of
£6.5 million would be appropriate, noting this level would only be
reached in the event of exceptional outcomes for shareholders,
clients and wider stakeholders.
Ms Kyrklund will participate in annual bonus and LTIP
arrangements in line with the Policy, with her first LTIP award
being made in March 2025, in respect of 2024 performance. She
will have a shareholding requirement of 300% of base salary and
be subject to the post-employment shareholding requirement.
Alignment of metrics to future strategy
As noted in the Chair’s letter, our transformation is ongoing, with a focus on achieving continued long-term growth. We are making
some changes to the 2025 implementation of the Policy to ensure the framework reflects the direction of travel, as well as key
business and strategic priorities, ahead of the full Policy review in 2025/26.
LTIP
Changes to the 2025 LTIP metrics aim to place greater
emphasis on improving our financial performance, while
ensuring non-financial measures are aligned to our refreshed
strategy. Given creating shareholder value is one of the key
priorities for the firm, the weighting on compound annual
growth rate (CAGR) in Adjusted Operating Earnings per Share
(EPS) will be increased from 35% to 50%.
In addition, aligned to our ambition to deliver excellent
investment performance for clients, net new business (NNB)
will be replaced with five-year investment performance to
reflect our focus on delivering investment excellence to our
clients, with a 20% weighting.
Following ongoing changes in disclosure standards for carbon
emissions and portfolio alignment calculations, our portfolio
temperature score metric will be replaced with “progress
towards our 2030 own emissions goal”, with a 20% weighting,
assessing our own Scope 1 and Scope 2 emissions’ reduction.
This change is intended to provide management with an
incentive to reduce our environmental impact by decreasing
energy demand, increasing energy efficiency, and transitioning
to low-carbon sources of energy.
Annual bonus
Annual NNB will be replaced by Annualised Net New Revenue
(ANNR). ANNR is a key measure for the business, measuring the
net fee income that would be earned over a one-year timeframe
if the net new business was all transacted on the same day and
there were no market movements or other changes to assets
under management or fee rates over that year. Investment
performance will be limited to three-year performance in the
annual bonus for 2025, to ensure differentiation from the LTIP
and greater alignment with medium-term performance.
The categorisation of sustainable funds is an evolving area which
we have kept under review to consider whether a more robust
and wider-reaching measure could be introduced. We are
therefore replacing the “proportion of Article 8 and 9 funds”
metric with a “proportion of AUM in excess of its sustainability
benchmark” metric, as measured by our flagship proprietary
methodology, SustainEX
TM
. SustainEX
TM
has become firmly
established in our disclosures, while at the same time Article 8/9
calculations have been impacted by the emergence of different
classification and labelling schemes in other markets.
“Client engagement and feedback” will be added to the five
existing categories within the non-financial element. In addition,
the Committee expects to give greater consideration to the
“Strategic Progress” category given the importance of delivering
on our transformation priorities over the coming year.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
71 Schroders Annual Report and Accounts 2024
Remuneration arrangements for all executive Directors in 2025
Element Approach 2025 implementation
Salaries – Reviewed annually. For the executive
Directors, salaries are adjusted
infrequently.
– There will be no increases to the salaries applicable to each role for 2025,
which remain low versus peer data. This means the most recent increase for
executive Directors (other than on appointment) was in 2014.
– See earlier in this report for commentary regarding the salary levels of new
appointments. The increase for Richard Oldfield to reflect his appointment
as Group Chief Executive will not take effect until 1 March 2025.
2025
annual
bonus
– The Committee determines executive
Director bonuses based on a
scorecard across a range of metrics.
– Financial performance factors make up
70% of the scorecard and the
remaining 30% is based on a
combination of non-financial factors.
– In setting the metrics and target
ranges, the Committee takes into
account the Board-approved budget,
market expectations, prior-year
achievement, strategic priorities and
the wider economic landscape.
– The Committee may apply discretion to
adjust annual bonus awards to the
extent it deems it appropriate to align
to the results achieved, with overall
stakeholder experience, and/or in light
of unexpected or unforeseen
circumstances.
– Upfront fund awards and deferred
share and fund awards are granted
under the Deferred Award Plan (DAP),
which shareholders approved at the
2020 AGM.
– Overall performance measures and weightings will be as follows:
Measure Link to strategy
Financial (70%)
Adjusted Operating
Profit (30%)
A key measure of financial performance that will be
reported to stakeholders.
Client Investment
Performance over three
years (20%)
Key client measure aligned to our vision of helping to build
future prosperity for clients through excellent investment
outcomes.
Annualised Net New
Revenue (10%)
Key flows measure that provides additional information to
better assess the impact of net new business on the
Group’s net operating revenue.
Proportion of AUM in
excess of its
sustainability benchmark
(10%)
Client-focused, financial metric reflective of our
commitment to our sustainable offering and establishing
and maintaining our position as a sustainability leader.
Non-financial (30%)
Strategic progress; client
engagement and
feedback; sustainability;
people and talent; risk
and governance;
personal goals
All fundamental to the Group’s long-term success, the
Committee sets targets to robustly assess each of these
measures. “Client engagement and feedback” added to
focus on addressing our clients’ needs in alignment with
our strategic priorities.
2025 LTIP
award
– Awards are granted annually, basedon
performance in the preceding year.
– Awards vest subject to a four-year
performance period, plus an additional
one-year holding period post vesting.
– The Committee may apply discretion to
adjust vesting to the extent it judges
appropriate to align the results to the
overall stakeholder experience.
– Awards are granted under LTIP rules
approved by shareholders in 2020.
– The Committee has approved an LTIP award for the Group Chief Executive
of £1.5 million (300% of salary). This award reflects his performance in2024
and isin line with the Policy.
– The award will be granted in March 2025, with the following performance
conditions:
Link to strategy
Threshold
(25% vesting)
Maximum
(100% vesting)
Adjusted Operating
Earnings per Share (EPS)
(50%)
Measuring our objective to
deliver earnings growth
through focused
investment and cost
efficiency.
4% CAGR 10% CAGR
Client Investment
Performance over five
years (30%)
Key client measure aligned
to our vision of helping to
build future prosperity for
clients through excellent
investment outcomes.
55% 75%
Progress towards our
2030 own emissions goal
(20%)
Measuring our own
emissions (Scope 1 and 2),
aligned to our 2030 target
relative to a 2019 base
year.
42% decrease 46% decrease
Navigation of this report and shareholder voting
This report from the Chair of the Remuneration Committee, together with the notes on pages 73 to 83, constitutes the annual report on
remuneration (ARR), which will be presented for an advisory vote by shareholders at the upcoming AGM. We value the feedback from our
shareholders and are grateful for their participation.
Where required and indicated, this information has been audited by Ernst & Young.
Matthew Westerman
Chair of the Remuneration Committee
5March 2025
Remuneration report continued
72 Schroders Annual Report and Accounts 2024
Notes to the report on remuneration
The notes set out on pages 73 to 83 supplement the information on pages 62 to 72, combining both statutory and voluntary disclosures.
You can also find more information about our current global workforce, along with details of our voluntary global and UK ethnicity pay
gaps, by visiting our website: www.schroders.com/inclusion-and-diversity.
Additional detail on 2024 executive Director pay outcomes
Single total remuneration figure for each executive Director (audited)
The total remuneration of each executive Director for the years ended 31December 2022 through 31December 2024 is set out in the
table below.
For Peter Harrison, the 2024 bonus amount shown represents his full-year outcome after application of the discretionary adjustment.
For transparency, this includes performance for the full year of services provided to the Group. The 2024 fixed pay amounts shown
represent amounts paid in respect of Mr Harrison’s role as an executive Director, being around ten months. He also received fixed pay
for the circa two-month period he was an employee after stepping down as Group Chief Executive, as detailed in the next section.
Richard Oldfield, as set out on page 67, waived any increase in 2024 total compensation opportunity, resulting in a bonus over £340,000
lower than it would have otherwise been. In addition, the quantum of Mr Oldfield’s bonus was impacted by the rebalancing of incentives
towards the LTIP grant, leading to an annual bonus over £485,000 lower than if there had been no change to the LTIP grant level.
(£’000)
Base
salary
1
Benefits
and
allowances
2
Retirement
benefits
3
Total fixed
pay
Initial bonus
outcome
Discretionary
bonus
reduction/
waiver
4
Annual
bonus
award
5
LTIP
vested
6
Total
variable
pay
Total
remuneration
2024
Richard Oldfield
375
7
40
422
1,732
(342)
1,390
–
1,390
1,812
Peter Harrison
429
13
39
481
4,553
(550)
4,003
–
4,003
4,484
2023
Peter Harrison
500
16
45
561
5,879
(250)
5,629
–
5,629
6,190
Richard Oldfield
94
1
10
105
731
–
731
731
836
Richard Keers
281
5
34
320
2,066
–
2,066
–
2,066
2,386
2022
Peter Harrison
500
14
45
559
3,842
–
3,842
341
4,183
4,742
Richard Keers
375
7
45
427
1,726
–
1,726
227
1,953
2,380
1. Represents the value of salary earned and paid during the financial year.
2. Includes one or more of: private healthcare, life assurance, permanent total disability insurance, Share Incentive Plan matching shares and private use of a company
car and driver.
3. Represents the aggregate of contributions to defined contribution (DC) pension arrangements and cash in lieu of pension for Peter Harrison, and cash in lieu of
pension for Richard Oldfield and Richard Keers. The table on page 74 shows how the retirement benefits figures above are comprised for each executive Director.
4. For Peter Harrison, the £550,000 relates to a downwards discretionary adjustment applied to his bonus outcome. For Richard Oldfield, the £342,000 represents the
result of his voluntary waiver of any increase to total compensation opportunity for 2024 upon his appointment as Group Chief Executive. Both adjustments were in
light of the wider stakeholder experience over the year. Further details are set out on page 67.
5. Pages 67 to 69 set out the basis on which annual bonus awards for 2024 were determined. The table on page 74 breaks down the annual bonus awards for 2024
into cash paid in February 2025 and the upfront fund awards, deferred fund awards and deferred share awards that will be granted in March 2025.
6. As noted on page 67, the executive Directors waived entitlement to the 2021 LTIP whose performance period would have concluded on 31 December 2024. No
amount will therefore vest in respect of this award for 2024. The comparative value for 2022 represents the actual value that vested on 6 March 2023 from LTIP
awards granted on 11 March 2019. Page 78 sets out information on LTIP awards granted to the executive Directors during 2024. Page 72 sets out information on
LTIP awards to be granted to the executive Directors in March 2025.
Retirement arrangements for the former Group Chief Executive (figures audited)
Peter Harrison stepped down as Group Chief Executive and executive Director on 8 November 2024, and continued to be employed by
Schroders to facilitate an effective transition to Mr Oldfield through 31 December 2024, when he retired from the Company.
For the period of 9 November to 31 December 2024, Mr Harrison continued to receive his salary, which amounted to £71,429,
retirement benefits as cash in lieu of pension of £6,429 and £1,022 in other benefits per the provisions outlined in footnote 2 in the table
above. He also received payment in lieu of notice of £92,949 for the portion of his notice period remaining at 31 December 2024 and a
capped contribution to legal fees of £35,000 (plus VAT). In accordance with the Policy, certain benefits (such as medical or life insurance)
will continue until the end of the normal cover period. Any payments related to such will be disclosed in the report for the financial year
to which they pertain, subject to relevant minimum disclosure requirements.
Mr Harrison was eligible to receive a full-year annual bonus for 2024, as set out in the table above. He is not eligible to receive a bonus in
respect of 2025 or for the grant of the 2025 LTIP award.
Deferred bonus awards previously granted to Mr Harrison will continue to vest based on the terms and conditions under which they
were granted, and his 2022, 2023 and 2024 LTIP grants will be pro-rated for the time elapsed with the firm during the performance
period. Final vesting of the LTIP awards will be determined by the Committee at the conclusion of the performance period upon
assessment of the achievement of the conditions set out in each award’s scorecard.
On stepping down as an executive Director, Mr Harrison remains subject to the post-cessation shareholding requirement which requires
that he maintain for a period of two years a holding of shares or interests in shares equal in number to that which applied under the
personal shareholding policy while he was an executive Director. Mr Harrison has signed a commitment to adhere to this requirement as
part of stepping down.
No other payments for loss of office or to former Directors were made during 2024, other than those previously disclosed.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
73 Schroders Annual Report and Accounts 2024
Key takeaways from section
Annual bonus awards of £1,390,000 and £4,003,000 were made to the Group Chief Executive and former Group Chief Executive
respectively, based on the balanced scorecard outcome adjusted to reflect the wider stakeholder experience.
The LTIP awards that would otherwise be vesting this year were waived by the former executive Directors in 2021 in response to
the societal challenges of the Covid-19 pandemic.
Resulting total compensation for the Group Chief Executive was 40% of the policy maximum (based on the maximum that applied
to him as Chief Financial Officer in the year) and 50% of maximum for the former Group Chief Executive.
Retirement benefits – additional detail (audited)
The following table shows details of retirement benefits provided to executive Directors for the years ended 31December 2024 and
31December 2023. For the executive Directors, the sum of employer contributions and cash in lieu each year is reflected in the single
total remuneration figures above. Employer contributions represent contributions paid into DC pension arrangements during the year
and exclude any contributions made by the Directors. There has been no defined benefit (DB) pension accrual since 30 April 2011.
£’000
2024 employer
contributions
2024 cash in
lieu of pension
1
2024 retirement
benefits total
2023 employer
contributions
2023 cash in lieu
of pension
1
2023 retirement
benefits total
Normal
retirement age
2
Richard Oldfield
–
40
40
–
10
10
60
Peter Harrison
9
30
39
8
37
45
60
Richard Keers
–
–
–
–
34
34
60
1. Peter Harrison received a combination of employer contributions to the Group’s DC pension arrangement and cash in lieu of pension contributions, and Richard
Oldfield received cash in lieu of pension contributions.
2. Normal retirement age is the earliest age at which a Director can elect to draw their pension under the rules of the Schroders Retirement Benefits Scheme without
the need to seek the consent of the Company or the pension scheme trustee.
Variable pay awards – additional detail (audited)
The table below sets out details of how the 2024 annual bonus award for each executive Director was structured, including the portion
granted under the Deferred Award Plan (DAP), along with the face value of the LTIP award granted during 2025 (see page 71).
£’000
Upfront cash
bonus award
DAP award
Total annual
bonus award
Percentage
deferred
LTIP award
Percentage of
total variable
pay deferred
Upfront fund
award
Deferred
share award
Deferred fund
award
Total DAP
award
LTIP granted
during 2025
Richard Oldfield
578
578
176
58
812
1,390
17 %
1,500
60 %
Peter Harrison
801
801
1,801
600
3,202
4,003
60 %
–
60 %
Upfront fund awards normally cannot be exercised for six months from grant, but are not at risk of forfeiture if the holder resigns and
leaves the Group. Deferred share awards are conditional rights to receive Schroders shares, granted as nil-cost options. They normally
require the holder to remain in employment for three years following grant to vest in full and are available to exercise in three equal
instalments 1, 2 and 3 years from grant. Deferred fund awards are conditional rights to receive a cash sum with an initial value equal to
the value of bonus being deferred, granted as nil-cost options. That value is notionally invested in a range of Schroders funds and so the
actual amount paid when the award is exercised is the initial amount plus or minus returns on those notional investments. They normally
require the holder to remain in employment for 3.5 years following grant to vest in full and are available to exercise in three equal
instalments 1.5, 2.5 and 3.5 years from grant.
Key takeaways from section
In 2024, 60% of executive Director variable pay was deferred, providing long-term alignment and retention.
Delivering a significant portion of the bonus in share and fund awards creates alignment with investors and clients.
Remuneration report continued
74 Schroders Annual Report and Accounts 2024
Non-executive Directors’ remuneration (audited)
Non-executive Directors receive fixed fees to reflect their Board and Committee responsibilities. They are not eligible to participate in any variable
pay arrangements. This section provides an overview of the fees and resulting total remuneration received by each non-executive Director.
The fees for the non-executive Directors were not changed in 2024. The structure of non-executive Directors’ fees is shown below.
£
Chair
625,000
Board member
80,000
Senior Independent Director
25,000
Audit and Risk Committee Chair
1
25,000
Audit and Risk Committee member
20,000
Nominations and Governance Committee Chair
–
Nominations and Governance Committee member
–
Remuneration Committee Chair
1
25,000
Remuneration Committee member
20,000
1. In addition to the Committee membership fee.
The total remuneration of each of the non-executive Directors for the years ended 31December 2024 and 31December 2023 is set out
in the table below:
2024 2023
£'000 Basic fee
Committee
Chair
Committee
member SID
Taxable
benefits Total Basic fee
Committee
Chair
Committee
member SID
Taxable
benefits Total
Dame Elizabeth Corley
625
–
–
–
2
627
625
–
–
–
3
628
Sir Damon Buffini
–
–
–
–
–
–
26
–
6
–
–
32
Rhian Davies
26
8
13
–
–
47
80
25
40
–
1
146
Paul Edgecliffe-
Johnson – – – – – – 53 – 13 – 2 68
Claire Fitzalan Howard
80
–
–
–
1
81
80
–
–
–
2
82
Rakhi Goss-Custard
80
–
20
–
–
100
80
–
20
–
2
102
Ian King
80
20
25
–
125
80
–
20
25
1
126
Iain Mackay
80
17
20
–
–
117
0
0
0
0
0
0
Leonie Schroder
80
–
–
–
–
80
80
–
–
–
–
80
Annette Thomas
80
–
20
–
–
100
27
–
7
–
–
34
Frederic Wakeman
80
–
28
–
–
108
0
0
0
0
0
0
Deborah Waterhouse
80
–
28
–
1
110
80
–
40
–
3
123
Matthew Westerman
80
25
40
–
–
145
80
25
40
–
–
145
The fees shown in each Director’s case reflect the portion of 2024 and 2023 that they each served in their respective roles.
– Sir Damon Buffini stepped down from the Board at the conclusion of the 2023 AGM on 27 April 2023 and Paul Edgecliffe-Johnson
stepped down from the Board from 31 August 2023.
– Rhian Davies stepped down from the Board at the conclusion of the 2024 AGM on 25 April 2024.
– Iain Mackay and Frederic Wakeman were appointed to the Board on 1 January 2024, with fees set at the same level as for other non-
executive Directors. They each joined the Audit and Risk Committee and the Nomination and Governance Committee from their
appointment date. Frederic Wakeman joined the Remuneration Committee on 1 August 2024.
– Deborah Waterhouse stepped down from the Remuneration Committee on 31 May 2024.
– Iain Mackay was appointed Chair of the Audit and Risk Committee with effect from 25 April 2024.
Benefits listed comprised travel expenses.
Key takeaways from section
– Non-executive Director remuneration comprised fixed pay only.
– There have been no changes to the structure or levels of non-executive Director fees in 2024.
– Year-on-year changes in total remuneration paid to non-executive Directors reflect changes in Committee responsibilities and/
or the timing of their appointments.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
75 Schroders Annual Report and Accounts 2024
Workforce and Director pay outcomes
The statutory disclosures presented in this section offer insights into the relationship between employee and executive pay outcomes.
The higher proportion of total compensation that is variable for executives can sometimes make year-on-year comparisons challenging.
Looking at multiple years of data can help identify overarching trends.
UK pay ratios
The table below compares the Group Chief Executive’s single total remuneration figure for 2024 with the remuneration of the Group’s
UK workforce as at 31December 2024, along with the comparative figures for the previous year.
For 2024, the figure for the Group Chief Executive has been calculated based on the sum of Mr Harrison’s 2024 single total remuneration
amount as shown on page 73 and the equivalent amount for Mr Oldfield prorated for his time in role as Group Chief Executive. As noted
on page 63, Mr Oldfield’s outcomes were lower as a result of his voluntary waiver of an increase to 2024 total compensation opportunity
at the time he was appointed Group Chief Executive. Mr Harrison’s outcome was reduced by the discretionary downwards adjustment
applied by the Committee, to reflect the stakeholder experience. The median (and quartiles) outcomes for UK employee salary and total
pay and benefits have increased in the year. As a result of these factors, the CEO pay ratio has decreased this year.
The Group is committed to ensuring pay fairness throughout its work force, and the principle of providing greater certainty in
remuneration through proportionally higher fixed pay for junior and lower-paid employees aligns with the Group’s pay and reward
policies for the global workforce.
Method
Pay ratio to
lower
quartile UK
employee
Pay ratio to
median UK
employee
Pay ratio to
upper
quartile UK
employee
Lower quartile UK employee Median UK employee Upper quartile UK employee
Total pay and
benefits Total salary
Total pay and
benefits Total salary
Total pay and
benefits Total salary
2024
Option A
69:1
44:1
27:1
69,105
54,100
107,218
80,000
173,378
120,000
2023
Option A
93:1
59:1
37:1
66,536
52,938
105,779
78,000
169,250
115,000
2022
Option A
74:1
46:1
28:1
63,067
49,702
101,409
75,000
167,622
110,000
2021
Option A
134:1
84:1
49:1
63,093
47,000
100,761
69,433
173,941
100,000
2020
Option A
110:1
70:1
42:1
57,205
45,000
89,541
58,000
150,310
122,500
2019
Option A
117:1
72:1
42:1
55,400
50,000
89,743
68,000
154,667
85,000
The rules that require this disclosure set out three methodologies that companies can adopt, termed Options A, B and C. The Group has
adopted Option A as this is the most robust methodology, requiring the Group to calculate the pay and benefits of all its UK employees
in order to identify the total remuneration at the upper quartile, median and lower quartile. We have based the calculation of these total
remuneration quartiles on salaries as at 31December 2024 plus any annual bonus award in respect of 2024 and any other incentive
awards granted during 2024. In calculating these ratios, salaries for employees who work part-time have been pro-rated up to a full-time
equivalent. Total pay and benefits for UK employees does not include taxable travel benefits such as the reimbursement of occasional
travel home from work that was covered by the Group’s travel and expenses policy and certain non-taxable benefits are excluded,
including Share Incentive Plan matching shares and ‘Give as Your Earn’ matching payments. No other assumptions or statistical
modelling was required.
Remuneration report continued
76 Schroders Annual Report and Accounts 2024
Comparing Director and wider workforce pay
The Committee considers executive Director pay structures and outcomes in the context of wider workforce pay. The table below
compares percentage change in base salary/fees, benefits and annual bonus awards for the Directors with the average change across
employees of the Group as a whole for the past four performance years. The outcome for employees of Schroders plc is also included to
satisfy the statutory requirement but is shown as not applicable given that the legal entity does not itself have any employees. The values
shown for the executive Directors are based on those shown in the single total remuneration figure table on page 73 and those for non-
executive Directors are based on the table on page 75. The employee mean and median figures in this table represent the change
experienced for individual employees who were employed by Schroders in both years.
2024 2023 2022 2021 2020
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Base
salary/
fee Benefits Bonus
Executive Directors
Richard
Oldfield 299 % 327 % 90 % n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Peter
Harrison (14) % (15) % (29) % 0 % 3 % 47 % 0 % 38 % -50 % 0 % 16 % 40 % 0 % -45 % -4 %
Non-executive Directors
Dame
Elizabeth
Corley 0% (43) % n/a 40 % 180 % n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Rhian
Davies¹ (68) % n/a n/a 0 % 180 % n/a 0 % 0 % n/a 0 % 0 % n/a 13 % n/a n/a
Claire
Fitzalan
Howard 0% (70) % n/a 0 % 260 % n/a 0 % 0 % n/a 51 % 0 % n/a n/a n/a n/a
Rakhi Goss-
Custard 0% n/a n/a 0 % 108 % n/a 0 % -50 % n/a 0 % 0 % n/a 0 % n/a n/a
Ian King
0%
n/a n/a 2 % 54 % n/a 2 % 0 % n/a 0 % 0 % n/a 0 % n/a n/a
Iain Mackay¹ n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Leonie
Schroder 0% n/a n/a 0 % n/a n/a 0 % n/a n/a 0 % -100 % n/a 24 % n/a n/a
Annette
Thomas¹ 200% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Frederic
Wakeman¹ n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Deborah
Waterhouse¹ (10) % (62) % n/a 11 % 157 % n/a 8 % 0 % n/a 0 % 0 % n/a 47 % n/a n/a
Matthew
Westerman 0% n/a n/a 6 % n/a n/a 14 % n/a n/a 43 % n/a n/a n/a n/a n/a
Employees
Employees
of Schroders
plc n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Employees of the Group²
,
³
,
⁴
Mean 7% 7% 2% 8 % 10 % -4 % 10 % 8 %
-10%⁵
9 % 5 %
+49%⁵
4 % 2 % 7 %-22%⁶ +78%⁶
Median 4% 5% (3) % 6 % 7 % -15 % 5 % 6 %
-17%⁵
2 % 3 %
+34%⁵
2 % 3 % 0 %-28%⁶ +62%⁶
1. The fee increases shown reflect the timing of appointment to the Board and/or roles on Board Committees as set out on page 75. Increases in benefits reflect travel
expenses, which vary in each year based on actual usage, with amounts listed on page 75.
2. For base salary, employees of the Group are those who were in employment between 31December 2023 and 31December 2024 and represents the salary increase
over this period. Salary adjustments agreed as part of the 2024 compensation review will be effective in 2025.
3. For benefits, the mean percentage change for employees of the Group is a per capita figure for those who were in employment for all of the two years under review
and represents the average change in benefits value during the year, while the median is the median percentage change of individual employees within the same
population.
4. For bonus, the mean and median percentage change for employees of the Group is the mean and the median respectively of the individual year-on-year percentage
change in bonus for employees who were in employment and eligible for a bonus for all of 2023 and 2024. More commentary on the annual bonus award for each
executive Director can be found on pages 67 to 69.
5. Excluding Share in Success Award, an award granted in December 2021 to circa 4,600 employees valued at the equivalent of 5% of annual salary.
6. Including Share in Success Award.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
77 Schroders Annual Report and Accounts 2024
Key takeaways from section
The annual bonus change for executive Directors differs from employees due to their pay structure, which includes a higher
proportion in bonus based on business performance. This contrasts with a desire to provide greater certainty through higher
fixedpay for junior and lower-paid employees.
Looking over multiple years, total compensation outcomes for employees have generally been more favourable than outcomes
forexecutive Directors. This is reflected in the decrease in median pay ratio from 72:1 in 2019, when UK pay ratios were first reported, to
44:1 this year. The lower ratio also reflects the reductions in Mr Harrison and Mr Oldfield’s bonus outcomes in 2024.
The fees for the non-executive Directors were not changed in 2024 and any changes in fees are reflective of their change in role.
Non-executive Directors are not eligible to receive a bonus, which reinforces their independence.
Alignment with shareholders and clients
By delivering a substantial portion of variable pay in shares and funds, we foster meaningful alignment among our executive Directors,
shareholders and clients. The tables below provide details of awards granted, movements in share and fund awards heldby the
executive Directors in the year and the total share interests for all our Directors.
Directors’ rights under fund and share awards
DAP and LTIP granted during 2024 (audited)
The following awards were granted under the DAP on 4 March 2024 in respect of deferred bonuses for performance during 2023. No
further performance conditions need to be met for awards to vest. The terms of the awards are the same as those that apply to the
deferred bonus awards, as described on page 65. These awards were included in the 2023 single total remuneration figures disclosed
last year and form part of the prior-year value shown in this year’s single total remuneration figures on page 73. They are also shown in
the tables of rights under fund and share awards on pages 78 to 79.
Individual
Basis of DAP award
granted
Face value at grant (£’000)
Share price
at grant
Number
of shares Performance conditions
Upfront fund
awards
Deferred
share awards
Deferred
fund
awards
Total DAP
award
Richard Oldfield
Deferral of bonus
awarded for
performance in 2023
226 209 70 505 3.937 53,060
Awarded for performance in
2023. No further
performance conditions
apply
Peter Harrison 1,246 2,353 784 4,383 3.937 597,637
The following awards under the LTIP were granted on 4 March 2024 as nil-cost options. They are also reflected in the table of rights
under share awards on page 79. Vesting of LTIP awards granted during 2024 are subject to the performance conditions detailed in the
2023 Annual Report and Accounts.
Individual
Basis of DAP award
granted
Face value at
grant (£’000)
Vesting
maximum as
% of face
value
% of face
value that
would vest at
threshold
1
Share price at
grant
Number of
shares End of performance period
Richard Oldfield
A specified face
value of shares on
the date of grant.
400 100 25 3.937 101,600 31/12/2027
Peter Harrison 600 100 25 3.937 152,400 31/12/2027
1. Percentage of face value that would vest if performance measures were at the threshold level to achieve non-zero vesting.
All DAP share awards and LTIP awards were granted over ordinary shares. The number of shares under each DAP share award and LTIP
award is determined by dividing the grant date face value by the mid-market closing share price on the last trading day prior to the date of
grant. Annual bonus and LTIP awards (including bonus awards delivered via the DAP) are subject to the Group malus and clawback policy.
Directors’ rights under fund awards (audited)
Directors had the following fund award rights under the Group’s incentive plans, based on the award values at grant:
Unvested fund
awards £’000
Vested fund
awards £’000 Total £’000
Richard Oldfield
At 31 December 2023
–
–
–
Granted
70
226
296
Vested
–
–
–
Exercised
–
(226)
(226)
At 31 December 2024
70
–
70
Peter Harrison
At 31 December 2023
1,530
–
1,530
Granted
784
1,246
2,030
Vested
(812)
812
–
Exercised
–
(1,620)
(1,620)
At 31 December 2024
1,502
438
1,940
Remuneration report continued
78 Schroders Annual Report and Accounts 2024
Directors’ rights under share awards (audited)
Directors had the following share rights under the Group’s incentive plans. These are in the form of nil-cost options shown based on the
number of shares in each case.
Unvested LTIP
awards
1
Other unvested
share awards
2
Vested but
unexercised share
awards Total
Richard Oldfield (ordinary
shares)
At 31 December 2023
–
–
–
–
Granted
101,600
53,060
–
154,660
Dividend-equivalent accrual
–
3,321
–
3,321
Vested
–
–
–
–
Lapsed where LTIP conditions
were not met
– – – –
Exercised
–
–
–
–
At 31 December 2024
101,600
56,381
–
157,981
Peter Harrison (ordinary
shares)
At 31 December 2023
244,978
990,263
320,419
1,555,660
Granted
152,400
597,637
–
750,037
Dividend-equivalent accrual
–
62,648
36,197
98,845
Vested
–
(518,601)
518,601
–
Lapsed where LTIP conditions
were not met³
(206,131) – – (206,131)
Exercised
–
–
(708,068)
(708,068)
At 31 December 2024
191,247
1,131,947
167,149
1,490,343
1. These awards will only vest to the extent that the relevant performance conditions are met.
2. No performance conditions apply for these awards.
3. For Peter Harrison, the LTIP lapsed figure represents the awards forfeited as a result of the pro-rating of 2022, 2023 and 2024 LTIP grants for the time elapsed with
the firm during the performance period.
During 2024, Peter Harrison received an aggregate gain of £2,545,164, settled in shares, from exercising nil-cost options over 708,068
ordinary shares, in part granted as an element of his annual bonus awards for performance in 2021 and 2022, and in part being the
vested element of the LTIP award granted to him in 2019.
Executive Director alignment to shareholders
To align the interests of senior management with those of shareholders, the executive Directors and the other members of the Group
ExCo are required, over time, to acquire and retain a holding of Schroders shares or rights to shares. The required shareholdings are
500% of base salary for the Group Chief Executive and 300% of base salary for the other executive Directors. Shares that count towards
this policy include the estimated after-tax value of unvested deferred bonus share awards under the DAP (shown as “Other unvested
share awards” above) and vested DAP or LTIP awards (shown as “Vested but unexercised share awards” above). Unvested LTIP awards do
not count towards the policy as these rights to shares are subject to performance conditions.
Richard Oldfield, who was appointed as an executive Director on 2October 2023 and as Group Chief Executive on 8November 2024, will
not be able to sell any share awards until he meets the required level. Peter Harrison’s shareholdings are well in excess of the required
level and he remains subject to the shareholding policy for two years post his stepping down as an executive Director on 8November
2024.
Value of shareholding vs. shareholding policy (% of salary) (audited)
Group Chief Executive
Richard Oldfield
500%
143%
259%
Policy
Actual
Former Group Chief Executive
Peter Harrison
500%
688% 67%
Policy
Actual
n
Policy
n
Shareholding
n
LTIP shares subject to performance conditions
The shareholdings in the illustration above include deferred share awards granted under the DAP in respect of performance in 2024
(see page 78). For illustration purposes, the estimated after-tax value of LTIP awards that remain subject to performance conditions
are shown separately, including those granted in respect of performance in 2024.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
79 Schroders Annual Report and Accounts 2024
Directors’ share interests (audited)
The Directors and their connected persons had the following interests in shares in the Company. Meagen Burnett and Johanna Kyrklund
were appointed as executive Directors on 1 January 2025 and therefore do not feature in the table.
Number of shares at 31 December 2024
Ordinary shares of 20 pence each
Executive Directors
Richard Oldfield
104,422
Peter Harrison
1
62,710
Non-executive Directors
Dame Elizabeth Corley
105,294
Rhian Davies
2
7,500
Claire Fitzalan Howard
3
635,565,532
Rakhi Goss-Custard
8,301
Ian King
13,205
Iain Mackay
–
Leonie Schroder
3
682,545,452
Annette Thomas
–
Frederic Wakeman
–
Deborah Waterhouse
4,190
Matthew Westerman
11,764
Between 31December 2024 and 5March 2025, the only movements in the Directors’ share interests were the acquisition under the
ShareIncentive Plan of 145 ordinary shares by Richard Oldfield.
1. The interests of Peter Harrison refer to the position as at 8 November 2024, the date he stepped down as a Director of the Company.
2. The interests of Rhian Davies refer to the position as at 25 April 2024, the date she stepped down as a Director of the Company.
3. The interests of Claire Fitzalan Howard and Leonie Schroder include their personal holdings and the beneficial interests held by them and their connected persons in
their capacity as members of a class of potential beneficiaries under certain settlements made by members of the Schroder family.
Key takeaways from section
– Alignment to shareholders is a key pillar of our remuneration approach, with senior leadership required to hold a meaningful
number of shares.
– Richard Oldfield, who was appointed as an executive Director on 2October 2023 and as Group Chief Executive on 8November
2024, will not be able to sell any share awards until he meets the required level.
– Peter Harrison’s shareholdings are well in excess of the required level and he remains subject to the shareholding policy for
two years post his stepping down as an executive Director on 8November 2024.
Contextualising pay outcomes with overall performance
The disclosures that follow provide further details of the relationship between pay outcomes and performance delivered for shareholders.
Relative spend on pay
The charts below illustrate the relative spend on pay for 2024 compared with 2023. The values are taken from the financial statements
and show how remuneration costs compare with shareholder distributions, taxes arising and earnings retained, to illustrate how net
operating income is used.
2024 2023
31%
8%
4%
27%
3%
9%
4%
14%
n
Fixed remuneration
£745.4m +1%
n
Variable remuneration – upfront
£203.6m -3%
n
Variable remuneration – deferred
£103.1m +10%
n
Other operating expenses
£653.4m +3%
n
Other income/expenses
£65.3m -58%
n
Corporate tax and social security
£223.2m +18%
n
Retained earnings
£98.8m +44%
n
Interim dividend paid and final
dividend recommended
£334.2m —%
30%
9%
4%
26%
6%
8%
3%
14%
n
Fixed remuneration
£735.2m
n
Variable remuneration – upfront
£209.1m
n
Variable remuneration – deferred
£93.6m
n
Other operating expenses
£633.3m
n
Other income/expenses
£155.4m
n
Corporate tax and social security
£189.8m
n
Retained earnings
£68.7m
n
Interim and final dividend paid
£333.8m
Remuneration report continued
80 Schroders Annual Report and Accounts 2024
The Group Chief Executive’s total remuneration over the past ten years
The chart below illustrates the Group Chief Executive’s single total remuneration figure over the past tenyears and compares itwith the
total shareholder return ofSchroders shares and the FTSE 100 over this period. Further detail on the single total remuneration figure
outcomes andhow variable pay plans have paid out each year isshown in the tablebelow.
Value of £100 invested on
31 December 2014
Group Chief Executive's single
total remuneration figure (£m)
Michael Dobson (MD)
Peter Harrison (PH)
Richard Oldfield (RO)
Schroders ordinary shares
FTSE 100 Index
2014 2015
2016 2017
2018 2019
2020 2021
2022 2023
2024 2025
£0
£50
£100
£150
£200
0
2
4
6
8
10
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Single total remuneration figure
(£’000)¹,²
MD
8,905 2,451
PH
6,311 7,059 6,735 6,453 6,321 8,434 4,696 6,190 4,484
RO
1,812
Annual bonus award (outcome as a
% of maximum, oractualaward as
a % of ten-year highest bonus)
3
MD
100% 25%
PH
70% 82% 78% 72% 69% 97% 49% 75% 47%
RO
54%
LTIP (vesting as a % of maximum)
4
50% 50% n/a –% 50% 50% 50% 50% n/a n/a
1. The 2016 remuneration for Michael Dobson reflects the actual remuneration that he received for the portion of 2016 that he served as Group Chief Executive.
2. Peter Harrison was appointed Group Chief Executive from 3 April 2016 until 8 November 2024. The 2016 and 2024 remuneration values above reflect his full-year
single total remuneration figure. Richard Oldfield was appointed Group Chief Executive on 8 November 2024. His 2024 remuneration values are for the full year,
notwithstanding that remuneration outcomes primarily relate to his former role as Chief Financial Officer.
3. From 2020, this represents the Group Chief Executive’s actual annual bonus award as a percentage of the maximum annual bonus award for the year. Foryears
prior to 2020, each annual bonus award is shown as a percentage of the highest bonus award over the past ten years, as no maximum annual bonusopportunity
was in place.
4. 2017 shows as ‘n/a’ as Peter Harrison did not receive an LTIP award in 2014 and so had no LTIP due to vest based on performance to the end of 2017. Mr Harrison,
the former Group Chief Executive, waived his 2020 and 2021 LTIP grants, so 2023 and 2024 show as ‘n/a’.
Key takeaways from section
– The relative spend on pay has remained largely consistent from prior years, demonstrating the close linkage between pay and
financial performance.
– Schroders plc total shareholder return is +4% over the past ten years. The single total figure of remuneration paid to the
Schroders Group Chief Executive has decreased by (42)% over this same period.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
81 Schroders Annual Report and Accounts 2024
Shareholder voting on remuneration
Each year, shareholders are invited to vote on our annual remuneration report (ARR). In 2023, we also put our Directors’ remuneration
policytovote as it had been three years since it was last voted on. The graphs below summarise the voting outcomes received
ontheseresolutions.
The following votes were cast in respect of the ARR at our 2024 AGM and the Directors’ remuneration policy at our 2023 AGM.
To approve the annual remuneration report at the 2024 AGM To approve the triennial Directors’ remuneration policy at
the 2023 AGM
l
Votes for 1,379,172,791
l
Votes for 1,347,696,221
l
Votes against 51,815,946
l
Votes against 56,519,151
Votes withheld 1,087,099 Votes withheld 203,965
Votes for Votes against Votes for Votes against
2024 AGM 96% 4% 2023 AGM 96% 4%
Key takeaways from section
– We continued to receive strong support from our shareholders in respect of both our ARR and Directors’ remuneration policy.
– We value the feedback from our shareholders and their continued participation at the 2025 AGM.
Other statutory disclosures
Committee advisers
After a competitive bidding process, the Committee appointed
Deloitte as advisers from September 2023. The Committee assesses
the performance of itsadvisers, the associated fees and the quality of
advice provided annually to ensure that the advice is independent of
any support provided tomanagement. In its latest annual review of
advisers, the Committee elected to retain Deloitte to provide advice
on executive Director pay during the year.
Deloitte attended five meetings as independent Remuneration
Committee advisers in 2024. A fixed fee structure has operated
since appointment to cover standard services, with any additional
items charged on a time/cost basis. The total fees paid to Deloitte
for advice to the Committee during 2023 on executive Director pay
totalled £178,708.
Deloitte also provide professional services in the ordinary course
of business, including HR consulting services and advice to
management on remuneration design and its regulatory implications,
tax, social security, governance, operational and technical issues, as
well as other professional services to the Group, including tax,
consulting, regulatory and fund audit and support for corporate
acquisitions. The Committee monitors its adviser independence,
noting that advice received is predominantly based on objective data
trends/facts. Where relevant, advisers were asked to leave
discussions when sensitive strategic context was being discussed, in
recognition of the advisory roles they may have for competitors.
The Committee also received a market update from Meridian
Compensation Partners (Meridian) and used data from McLagan
(Aon) Limited (McLagan) on market conditions and competitive rates
of pay, as McLagan provides remuneration benchmarking data
covering a wide cross-section of the Group’s competitors, including
firms that are not publicly listed and so are not required to publish
the remuneration of their directors. The total fees paid for advice to
the Committee during 2024 on executive Director pay totalled £6,435
and £1,800 for Meridian and McLagan respectively.
The Committee is satisfied that the advice received from both
advisers was independent and objective, as it was factual and not
judgemental. McLagan is part of Aon plc, which also provides advice
and services to the Group in relation to pension benefit valuations
and pension actuarial advice. Meridian’s and McLagan’s fees were
charged on the basis of a fixed fee for the preparation of reports
setting out the information requested. Neither Deloitte, Meridian nor
McLagan has a connection to the Company or any individual Director,
save as outlined above.
At the invitation of the Committee Chair, the Group Chair attended
seven meetings, the Group Chief Executive (including in his former
capacity as Chief Financial Officer) attended six meetings, and the
former Group Chief Executive attended five meetings. The executive
Directors left the meetings when relevant to avoid any conflicts of
interest. The Chief People Officer attended meetings to provide
advice and support to the Committee and the Head of Executive
Compensation acted as secretary to the Committee. The Global
Head of Sustainable Investment also attended relevant meetings
to provide expert input on the topic of sustainability measurement.
The Committee received regular updates from the Conduct
Assessment Group, which comprised the control function heads and
Chief People Officer, to ensure that the Group is taking account of
compliance and conduct risk considerations as part of the firm’s
compensation processes. The Chief Risk Officer, Group General
Counsel and Head of Group Internal Audit also advised the
Committee on matters that could influence remuneration
decisions and were available to attend meetings if required.
To avoid conflicts of interest, no Director or employee participates in
decisions determining their own remuneration.
Remuneration report continued
82 Schroders Annual Report and Accounts 2024
Compliance with the 2018 UK Corporate Governance Code (“the Code”)
Code requirements How the Committee has addressed the requirement
Clarity – remuneration arrangements
shouldbe transparent and promote
effectiveengagement with shareholders
andthe workforce
– Prospective disclosure of bonus and LTIP metrics (page 71)
– Full retrospective disclosure of financial targets and non-financial factors (pages 67 to
69)
– Review of shareholder feedback and guidance and engagement with shareholders
(pages 64, 70)
Simplicity – remuneration structures
should avoid complexity and their rationale
and operation should be easy to
understand
– Executive Directors incentivised via annual bonus with deferral and LTIP (page 65)
– Clear disclosure of rationale and operation of each element (see pages 65 and 71)
Risk – remuneration arrangements should
ensure reputational and other risks from
excessive rewards, and behavioural risks
that can arise from target-based incentive
plans, are identified and mitigated
– Defined maximum limit for annual total remuneration (page 65)
– Significant deferral, providing alignment to clients and shareholders (page 65)
– Committee discretion to adjust formulaic bonus or LTIP outcomes (page 71)
– Extensive malus and clawback provisions (as referenced on page 65). Full details of the
provisions were included in the Policy set out in the 2022 Annual Report and Accounts.
Predictability – the range of possible
values of rewards to individual Directors
and any other limits or discretions should
be identified and explained at the time of
approving the policy
– An illustration of the range of possible outcomes was set out in the Policy as part of the
2022 Annual Report and Accounts.
– Regular Committee review of likely bonus scorecard outcomes (page 67)
Proportionality – the link between
individual awards, the delivery of strategy
and the long-term performance of the
Company should be clear. Outcomes
should not reward poor performance
– Annual bonus and LTIP performance measures reviewed annually against strategic
priorities (page 68)
– Significant deferral, providing alignment to clients and shareholders (page 65)
– Extensive malus and clawback provisions (page 65)
Alignment to culture – incentive schemes
should drive behaviours consistent with
Company purpose, values and strategy
– Remuneration principles aligned with our key stakeholders (page 64)
– Executive Director remuneration considered in the context of employee outcomes
(page70)
– Commitment to fair pay for performance across the workforce (page 66)
– Inclusion of non-financial metrics in both executive Director annual bonus and LTIP
scorecards (pages 68 to 69, 71)
Fees from external appointments
The executive Directors are permitted to retain for their own
benefit fees they receive from any external non-executive
directorships, provided the directorships do not relate to any
interest held by the Group. Richard Oldfield and Peter Harrison did
not receive any fees in respect of external non-executive roles
during the course of their appointment to the Company in 2024.
Directors’ service contracts and letters of
appointment
Each of the executive Directors has a rolling service contract with a
mutual notice period of six months. Each of the non-executive
Directors has a letter of appointment with a mutual notice period
of six months. Shareholders may review letters of appointment
and service contracts at the Company’s registered office from the
date of dispatch of the Notice of AGM on business days between
9am and 5pm. Additionally, these documents are available for
viewing at each AGM.
Further remuneration disclosures
The remuneration disclosures required under the UK Capital
Requirements Regulation are incorporated into the Group’s Pillar 3
disclosures andare available at www.schroders.com/pillar3. Other
regulatory remuneration disclosures can be found at
www.schroders.com/rem-disclosures.
Committee performance in 2024
The annual evaluation of the Committee’s effectiveness was
undertaken as part of the overall Board evaluation process, which
is described in the Governance report on page 42. The findings
relating to the Committee were discussed with the Committee
Chair. The overall conclusion of the evaluation was that the
Remuneration Committee was functioning effectively and had
performed its duties diligently. Thereporting to the Board on the
Committee’s discussions by the Chair of the Committee was felt to
be comprehensive.
By order of the Board
Matthew Westerman
Chair of the Remuneration Committee
5March 2025
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
83 Schroders Annual Report and Accounts 2024
Directors’ report
The information in the following sections of this Annual
Report and Accounts forms part of this Directors’ report:
– Strategic report
– Board of Directors and Company Secretary
– Corporate governance report, including the Nomination
and Governance Committee report and the Audit and Risk
Committee report
– Statement of Directors’ responsibilities
Share capital
Schroders has developed under stable ownership for more than
220 years and has been a public company whose ordinary shares
have been listed on the London Stock Exchange since 1959.
The Company’s share capital comprises 1,612,071,525 ordinary
shares of 20 pence each, of which 6,383,664 are held in treasury
by the Company. The total voting rights in the Company are
1,605,687,861.
Under the terms of the Schroders Employee Benefit Trust and
the Schroder US Holdings Inc. Grantor Trust, ordinary shares are
held in trust on behalf of employee share plan participants. The
trustees may exercise their voting rights in any way they think
appropriate. In doing so, they may consider the financial and
non-financial interests of the beneficiaries and their dependants.
As at 4March 2025, being the last practicable date before the
publication of the Annual Report and Accounts, the Schroders
Employee Benefit Trust and the Schroder US Holdings Inc. Grantor
Trust together held 52,260,496 ordinary shares.
Under the terms of the Share Incentive Plan, as at 28 February
2025, 7,876,384 ordinary shares were held in trust on behalf of
plan participants. At the participants’ direction, the trustees can
exercise their voting rights over ordinary shares in respect of
participant share entitlements.
There are no restrictions on the transfer of the Company’s shares,
except for:
– restrictions imposed by laws and regulations
– restrictions on the transfer of shares imposed under the
Company’s Articles of Association or under Part 22 of the UK
Companies Act 2006, in either case after a failure to supply
information required to be disclosed following service of a
request under section 793 of the UK Companies Act 2006
– restrictions on the transfer of shares held under certain
employee share plans while they remain subject to the plan.
The Company is not aware of any agreement between
shareholders that may restrict the transfer of securities or
voting rights.
Principal Shareholder Group
The history of Schroders began in 1804 when JH Schröder became
a partner in J.F. Schröder & Co, a London-based firm founded by
his brother JF Schröder. It has evolved since then into the company
today known as Schroders plc. Throughout that time, the Schroder
family have maintained a significant interest in the business, which
the Company believes has been a significant benefit to it. Today,
the interests of some members of the Schroder family (being
certain descendants of the late Helmut Schroder and, in some
cases, their spouse or former spouse) are spread across a number
of parties, who are collectively known as the Principal Shareholder
Group.
The Principal Shareholder Group comprises a number of private
trustee companies (and investment companies controlled by those
trustee companies), a number of Schroder family individuals, and a
Schroder family charity, which, directly or indirectly, are
shareholders of the Company.
The Principal Shareholder Group currently holds 711,068,586
ordinary shares (44.28% of the issued ordinary shares excluding
treasury shares) in the Company. This is comprised as follows:
A. 657,718,180 of the ordinary shares (40.96%) are owned directly
or indirectly by four private trustee companies which act as the
trustees of various trusts settled by certain members of the
Schroder family and investment companies wholly owned by
the private trust companies. The trustee companies are Vincitas
Limited, Veritas Limited, Alster Limited and Treva Limited.
Flavida Limited and Fervida Limited are protector companies
which act as protectors of certain of those trusts, and therefore
also form part of the Principal Shareholder Group.
B. 29,364,559 of the ordinary shares (1.83%) are owned directly or
indirectly by certain trustee and investment companies
following the execution of the estate of Bruno Lionel Schroder
(deceased). The trustee companies are Lionel Trustees (UK) I
Limited and Lionel Trustees (UK) II Limited. The investment
companies are MEB Investments Limited, CRH Investments
Limited and JMF Investments Limited.
C. 21,634,408 of the ordinary shares (1.34%) are personally held,
directly or indirectly, by certain Schroder family individuals (who
are direct descendants of the late Helmut Schroder or, in some
cases, a former spouse of such direct descendants).
D. 2,351,439 of the ordinary shares (0.15%) are owned by the
Schroder Charity Trust, a family charity.
Companies with a shareholder or shareholders who could, when
acting in concert, exercise 30% or more of the voting rights of a
company at a general meeting, were required under the Listing
Rules to enter into a binding agreement with that shareholder or
shareholders. This was intended to ensure that the parties to the
agreement comply with certain independence provisions in the
Listing Rules. Accordingly, on 14 November 2014, the Company
entered into such an agreement with members of the Principal
Shareholder Group holding ordinary shares at that time.
On 29July 2024, the Listing Rules were amended so that a
relationship agreement was no longer required, and as such
the Relationship Agreement automatically terminated on that
date with immediate effect, in accordance with its terms.
The UK Listing Rules maintain the requirement for companies
with a controlling shareholder (such as the Principal Shareholder
Group) to demonstrate that they can carry on business
independently from their controlling shareholder. They are also
required to include certain disclosures regarding compliance with
these independence requirements. These can be found below.
The Company’s Group provides private banking and wealth
management services to certain members of the Principal
Shareholder Group. These arrangements are conducted at arm’s
length and on normal commercial terms. In accordance with UK
Listing Rule 6.2.3, the Board confirms that, for the year ended
31December 2024:
– the Company has complied with the independence provisions
included in the Listing Rules
– so far as the Company is aware, the independence provisions
included in the Listing Rules have been complied with by the
members of the Principal Shareholder Group.
Directors’ report
84 Schroders Annual Report and Accounts 2024
Substantial shareholdings
The table below shows the notifiable holdings of major
shareholders in the voting rights of the Company, as at
31December 2024, as disclosed to the Company in accordance
with the Disclosure Guidance and Transparency Rules.
Shareholder % of voting rights held
Vincitas Limited
1
24.18
Veritas Limited
1
15.22
Flavida Limited
1
24.27
Fervida Limited
1
16.27
Harris Associates L.P.
5.02
Silchester International Investors LLP
5.01
Lindsell Train Limited
4.99
HSBC Holdings plc
2
3.45
Sir Michael Kadoorie
3
3.44
1. Flavida Limited and Fervida Limited are protector companies and have made
notifications as protectors of certain settlements, which include the holdings
of Vincitas Limited and Veritas Limited.
2. HSBC Holdings plc is acting as a corporate Director for the underlying client.
3. Shares are held through Orchid Equity Limited.
On 24 February 2025, Tikehau Capital SCA notified the Company
that their holding had increased to 5.20% of voting rights held. On
19 February 2025, Harris Associates L.P. notified the Company that
their holding had decreased to 4.99% of voting rights held.
There have been no other changes to the notifications disclosed in
the table or additional notifications as at the date of this report.
Dividends
It is our policy to provide shareholders with a progressive and
sustainable dividend, targeting a payout ratio of around 50%. The
payout ratio is determined as the total dividend per share in
respect of the year, divided by the Group’s basic operating
earnings per share. In line with this policy, the Board recommends
a final dividend of 15.0 pence per share (2023: 15.0 pence per
share), which, if approved by shareholders at the AGM, will be paid
on 8May 2025 to shareholders on the register of members at
close of business on 28March 2025. It means a total dividend for
the year of 21.5 pence per share (2023: 21.5 pence per share),
representing a payout ratio of 71% (2023: 66%).
2024 2023
pence £m pence £m
Interim
6.5
101.2
6.5
100.8
Final*
15.0
233.0
15.0
233.0
Total
21.5
334.2
21.5
333.8
* Subject to approval by shareholders at the 2025 AGM
In setting the dividend, the Board has regard to overall Group
strategy, capital requirements, liquidity and profitability. This
approach enables the Group to maintain sufficient surplus capital
to take advantage of future investment opportunities, while
providing financial security to withstand possible risk scenarios
and periods of economic downturn.
The distributable profits of Schroders plc are £2.8 billion (2023:
£2.8 billion). The Group’s ability to pay dividends is, however,
restricted by the need to hold regulatory capital and to maintain
sufficient operating capital to support its ongoing business
activities. Operating capital requirements include co-investments
with clients and seed capital investments in our funds to support
new investment strategies.
Certain circumstances could adversely impact the Group’s ability to
pay dividends in line with the policy. This includes a significant
increase in the ratio of total costs to net income. After deducting
the regulatory capital requirement and the regulatory capital
buffer, there continues to be sufficient capital to maintain our
current dividend level for at least two years before taking account
of any future profits. The Schroders Employee Benefit Trust and
the Schroder US Holdings Inc. Grantor Trust have waived their
rights to dividends paid on the ordinary shares in respect of 2024
and future periods. See notes 6 and 21 to the financial statements.
2025 Annual General Meeting
The 2025 AGM will be held on Thursday 1May 2025 at 11.30am.
All resolutions are voted on separately and the final voting results
will be published as soon as practicable after the meeting.
Together with the rest of the Board, the Chairs of the Nomination
and Governance, Audit and Risk, and Remuneration Committees
will be present to answer questions.
Rule 9 Waiver and authority to purchase own
shares
The Company simplified its dual share class structure on
20September 2022. As a result, the aggregate holding of the
Principal Shareholder Group decreased from 47.93% of ordinary
shares.
At the 2024 AGM, the Company was authorised by shareholders to
purchase up to 128,515,118 ordinary shares. The authority to
purchase own shares was utilised during the year through a
repurchase programme announced in November 2024. The
repurchases commenced on 13November 2024 and ended on
19December 2024. A total of 6,383,664 ordinary shares were
repurchased. The repurchased shares are held in treasury, with
the intention of using them to satisfy awards under the Company’s
employee share schemes (or otherwise being cancelled, reducing
the Company’s issued share capital).
At the 2025 AGM, the Board will seek authority to purchase up to
122,131,453 ordinary shares so that, if such repurchases were
exclusively from persons other than the Principal Shareholder
Group, this would not result in the Principal Shareholder Group
holding more than 47.93% of the Company’s voting ordinary
shares, which is the level it held prior to the simplification of the
Company’s dual share class structure in September 2022. Exercise
of this authority would be subject to prior consent of the
Prudential Regulation Authority.
If the Company were to buy back shares, it is likely that the
Principal Shareholder Group’s overall ownership in the Company
would passively increase from the current level of 44.28%
(excluding treasury shares). If this were to happen, under the
Takeover Code, the Principal Shareholder Group would be
required to make a mandatory cash offer for the whole Company.
However, the Company has obtained a waiver from the Takeover
Panel that exempts the Principal Shareholder Group from this
obligation as a result of any buyback of shares. This waiver is
conditional on the independent shareholders approving the
Waiver Resolution at the 2025 AGM.
Importantly, the waiver will not permit the Principal Shareholder
Group’s holding of ordinary shares to increase above the 47.93%
holding of voting ordinary shares held prior to the simplification of
the Company’s dual share class structure without triggering a
mandatory cash offer for the whole Company.
Members of the Principal Shareholder Group are supportive long-
term shareholders and intend to retain a substantial shareholding
in the Company over the long term. The Board expects to seek
renewal of the Buyback Authority (and the associated Waiver
Resolution) annually until such time as the Principal Shareholder
Group’s holding of ordinary shares (excluding treasury shares) has
returned to the level of 47.93%.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
85 Schroders Annual Report and Accounts 2024
Stakeholder engagement
Details of the Company’s approach to stakeholder engagement
and how their interests have shaped our decisions throughout the
year can be found on pages 32 to 33 and 47.
Streamlined energy carbon reporting
Details of the Company’s approach to decarbonisation and
disclosures on scope 1 and scope 2 emissions and associated
consumption are included as part of our Climate Related
Disclosures on pages 177 to 183. These are in line with the
Streamlined Energy and Carbon Reporting (SECR) requirements.
Employment practices
Details of the Company’s employment practices, including diversity
and employee engagement, can be found in the Strategic report
on pages 16 and 17.
Workforce diversity
Understanding representation through data is essential for
driving positive change, allowing us to analyse diversity, prioritise
interventions, and empower decision-making through dashboards
at Schroders.
We encourage employees to voluntarily complete their diversity
profiles and proactively engage new joiners to explain the
importance of this data. We also capture diversity data at various
points in the employee life cycle to maintain accuracy and provide
comprehensive insights into our workforce.
We publish our UK ethnicity pay gap and global gender pay gap to
assess our progress on inclusion and diversity, demonstrating our
commitment to transparency.
We meet the FTSE Women Leaders targets for women’s board
representation and comply with the Parker Review
recommendations. Our Board-approved 2030 inclusion and
diversity aspirations include increasing ethnic minority
representation among our UK employee population to 25% and to
20% in our UK senior management population.
As at 31December 2024, the Company has met the following FCA
Diversity Targets (as required by UK Listing Rule 6.6.6(9):
– at least 40% of the Board being women (2024: 55%)
– at least one of the senior Board positions being held by a
woman (2024: Chair)
– at least one member of the Board being from an ethnic minority
background (2024: two).
The data required by UK Listing Rule 6.6.6(9) for the Board of
Directors and executive management is set out in the table below.
As required by UK Listing Rule 6.6.6(11), the data is based on
information collected via self-reporting by employees and Board
members and existing information held by the Company’s People
and Culture, and Legal and Governance teams.
Gender diversity - as at 31 December 2024
Schroders plc Board – Gender diversity representation
2024
Number of
Board members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
5
Number in
executive
management
1
Percentage of
executive
management
Men
5
45%
2
3
33%
Women
6
55%
1
6
67%
Not specified/prefer not to say
–
– %
–
–
– %
Schroders plc senior management – Gender diversity representation
2024
Senior
managers
2
Subsidiary Board
members
3
Total senior
management
4
All employees
Men
62 %
73 %
65 %
56 %
Women
38 %
27 %
35 %
44 %
Not specified/prefer not to say
– %
– %
– %
– %
1. Executive management refers to the Group Executive Committee (Group ExCo) and the Group Company Secretary.
2. Senior managers includes members of the Group ExCo, the direct reports of the Group (ExCo-1) and the direct reports one level below that (ExCo-2), in each case excluding
administrative and other ancillary roles. The data excludes Board members of Schroders plc and includes some employees who are also subsidiary Board members.
3. Subsidiary Board members comprises Board members of subsidiaries who are not classified as senior managers.
4. Total senior management refers to the total of senior managers and subsidiary Board members.
5. Number of senior positions on the Board (CEO, CFO, SID and Chair) will not reflect a total figure of 4 as at time of reporting (31 December 2024) the CFO position was
yet to be appointed to the Board. The CFO was appointed as at 1 January 2025.
Ethnic diversity representation - as at 31 December 2024
2024
Number of
Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
5
Number in
executive
management
1
Percentage of
executive
management
White British or other white (including minority white groups)
9
82 %
3
8
100 %
Mixed/Multiple ethnic groups
1
9 %
–
–
– %
Asian/Asian British
1
9 %
–
–
– %
Black/African/Caribbean/Black British
–
– %
–
–
– %
Other ethnic group, including Arab
–
– %
–
–
– %
Not specified/prefer not to say
–
– %
–
–
– %
Directors’ report continued
86 Schroders Annual Report and Accounts 2024
Indemnities and insurance
Shareholders have authorised the Company to provide
indemnities to, and to fund defence costs for, Directors in certain
circumstances. On appointment, all Directors are granted an
indemnity as defined in the Companies Act 2006 in respect of any
third-party liabilities that they may incur as a result of their service
on the Board. All Directors’ indemnities were in place during the
financial year and remain in force. Directors’ and Officers’ liability
insurance is maintained by the Company for all Directors.
Under the Trust Deed and Rules of the Schroders Retirement
Benefit Scheme (Scheme), the Company provides a qualifying
pension scheme indemnity in line with the Companies Act 2006.
The indemnity covers each Director of the trustee company that
acts as a trustee of the Scheme. The provisions have been in force
during the financial year.
As part of the integration of Cazenove Capital, the Cazenove
Capital Management Limited Pension Scheme was merged with
the Schroders Retirement Benefits Scheme, with effect from
31December 2014. Pursuant to that merger, a qualifying pension
scheme indemnity in line with the Companies Act 2006 is provided
by Schroders plc for the benefit of the Directors of Cazenove
Capital Management Pension Trustee Limited, a subsidiary of the
Company at that time. This indemnity remains in force and covers,
to the extent permitted by law, certain losses or liabilities incurred
by the Directors of Cazenove Capital Management Pension
Trustee Limited in connection with that company’s activities as
trustee of the Cazenove Capital Management Limited Pension
Scheme.
Directors’ Conflicts of Interest and Recusal policy
The Company has procedures to identify, authorise and manage
conflicts of interest, including of Directors of the Company. They have
operated effectively during the year. In circumstances where a
potential conflict arises, the Board (excluding the Director concerned)
will consider the situation and either authorise the arrangement in
accordance with the Companies Act 2006 and the Company’s Articles
of Association, or take other appropriate action.
All potential conflicts authorised by the Board are recorded in a
conflicts register, which is maintained by the Group Company
Secretary and reviewed by the Board annually. Directors have a
continuing duty to update the Board with any changes to their
conflicts of interest.
Change of control
The Company does not consider that it is a party to any significant
agreements that take effect, alter or terminate upon a change of
control of the Company following a takeover bid that are required to
be disclosed pursuant to paragraph 13(2)(j) of Schedule 7 of the Large
and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 (as amended), other than as disclosed below.
Under the Group’s Revolving Credit Facility Agreement, if a change of
control of the Company occurs, the lenders are not obliged to provide
further funding under the facility. The Company and lenders have up
to 30 days to agree the continued use of the facility. If there is no
agreement, repayment of the facility and accrued interest may be
requested by the lenders with not less than ten days’ notice.
Under the Amended and Restated Framework Agreement
(Framework Agreement) with Lloyds Banking Group plc, signed on
3October 2019 in relation to the strategic partnership announced on
23October 2018, on a change of control of the Company to (1) either
a material competitor of a Lloyds Banking Group business, or (2) an
entity or person on, or controlled by an entity or person on, a
recognised sanctions list, or located in a specified jurisdiction, Lloyds
Banking Group may terminate the Framework Agreement. Such
termination provisions provide for Lloyds Banking Group and the
Company to return to the status quo prior to establishing the strategic
partnership in relation to shareholdings in subsidiary entities, with any
implementing transactions conducted at specified valuations.
The Company entered into an amended Shareholders Agreement
with Greencoat management shareholders on 10April 2022, in
relation to their respective shareholdings in Greencoat Capital
Holdings Limited. On a change of control of the Company to a person
who does not form part of the Principal Shareholder Group, the
management shareholders have the right to sell their shares to
Schroder International Holdings Limited, a subsidiary of the Company.
Directors’ and employees’ employment contracts do not normally
provide for compensation for loss of office or employment as a
result of a change of control. However, the provisions of the
Company’s employee share schemes may cause awards granted
to employees under such schemes to vest on a change of control.
Political donations
No political donations or contributions were made or expenditure
incurred by the Company or its subsidiaries during the year (2023: nil)
and there is no intention to make or incur any in the current year.
UK Listing Rules (UKLR) – compliance with UKLR 6.6.1
The majority of the disclosures required under UKLR 6.6.1 are not applicable to Schroders. The table below sets out the location of the
disclosures for those requirements that are applicable.
Applicable sub-paragraph within UKLR 6.6.1 Disclosure provided
(5) Details of any arrangements under which a director of the company has waived or agreed to waive any
emoluments from the company or any subsidiary undertaking.
See pages 67, 73, 74 and 81
(11) Details of any arrangements under which a shareholder has waived or agreed to waive any dividends.
See pages 85, 103 and 128
(12) Where a shareholder has agreed to waive future dividends, details of such waiver together with those
relating to dividends which are payable during the period under review.
See pages 85, 103 and 128
(13) A statement made by the board that the company continues to comply with the requirement in UKLR 6.2.3R.
See page 84
Risk management objectives and policies
Details of the Group’s Risk Management framework are set out on page26. Specific information around risk management objectives,
policies (e.g., hedging) and exposure is contained in note 19 of the financial statements.
By order of the Board.
Kate Graham
Company Secretary
5March 2025
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
87 Schroders Annual Report and Accounts 2024
Statement of
Directors’
responsibilities
The Directors are responsible for preparing the Annual Report
and the consolidated financial statements in accordance with
applicable law and regulations.
The Companies Act 2006, being the applicable law in the UK,
requires the Directors to prepare financial statements for each
financial year. The Directors have prepared the financial
statements in accordance with UK-adopted international
accounting standards and in conformity with the requirements of
the Companies Act 2006. Under the Companies Act 2006, the
Directors must not approve the financial statements unless they
are satisfied that the statements give a true and fair view of the
state of affairs of the Company and the Group, and of the profit or
loss of the Group for that period.
In preparing those financial statements, the Directors are required
to:
– select suitable accounting policies in accordance with IAS 8
Accounting Policies, Changes in Accounting Estimates and
Errors and then apply them consistently;
– make estimates and judgements that are reasonable and
prudent;
– present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and understandable
information;
– provide additional disclosure where compliance with the specific
requirements of UK-adopted international accounting standards
is insufficient to enable users to understand the impact of a
particular transaction, other events or conditions on the
Company or Group’s financial position or financial performance;
– state whether the financial statements comply with UK-adopted
international accounting standards, subject to any material
departure disclosed, and explained in the financial statements;
and
– prepare the financial statements on a going concern basis,
unless it is inappropriate to presume that the Company or
Group will continue in business, in which case there should be
supporting assumptions or qualifications as necessary.
The Directors are also required by the Disclosure and
Transparency Rules of the Financial Conduct Authority (FCA) to
include a management report containing a fair review of the
business and a description of the principal risks and uncertainties
facing the Company and the Group.
The Directors are responsible for keeping proper books of
accounting records that are sufficient to show and explain the
Company’s transactions, and disclose with reasonable accuracy
at any time, the Company’s and the Group’s financial position,
and to enable them to ensure that the financial statements and the
Remuneration report comply with the Companies Act 2006. They
are also responsible for safeguarding the Company’s and the
Group’s assets, and for taking reasonable steps to prevent and
detect fraud and other irregularities.
Directors’ statement
Each of the Directors, whose name and functions are listed in the
“Board of Directors and Company Secretary” section of this Annual
Report and Accounts, confirms that, to the best of each person’s
knowledge and belief:
– The consolidated financial statements, prepared in accordance
with UK-adopted international accounting standards, give a true
and fair view of the assets, liabilities, financial position and profit
of the Company and the Group.
– The Directors’ report contained in this Annual Report and
Accounts, which comprises the sections described on page 84,
includes a fair review of the business development and
performance and the Company’s and Group’s position, and a
description of the principal risks and uncertainties that they
face.
– So far as the Directors are aware, there is no relevant audit
information which the Company’s auditors are unaware of.
– The Directors have taken all the steps that ought to have been
taken as a Director to make himself or herself aware of any
relevant audit information, and to establish that the Company’s
auditors are aware of that information.
In addition, each of the Directors considers that this Annual Report
and Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Company’s performance, business
model and strategy.
The Directors are responsible for the maintenance and integrity of
the audited financial information on the website at
www.schroders.com.
Legislation in the UK governing the preparation and dissemination
of financial statements may differ from legislation in other
jurisdictions.
Forward-looking statements
This Annual Report and Accounts and the Schroders website may
contain forward-looking statements with respect to the financial
condition, performance and position, strategy, results of
operations and businesses of the Schroders Group. Such
statements and forecasts involve risk and uncertainty because
they are based on current expectations and assumptions but
relate to events and depend upon circumstances in the future; you
should not place reliance on them. Without limitation, any
statements preceded or followed by or that include the words
‘targets’, ‘plans’, ‘sees’, ‘believes’, ‘expects’, ‘aims’, ‘confident’, ‘will
have’, ‘will be’, ‘will ensure’, ‘likely’, ‘estimates’, ‘foresee’ or
‘anticipates’ or the negative of these terms or 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 statement. 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
announcement or in the Annual Report and Accounts or on the
Schroders website should be construed as a forecast, estimate or
projection of future financial performance.
Statement of Directors’ responsibilities
88 Schroders Annual Report and Accounts 2024
Consolidated financial statements
Consolidated income statement
91
Consolidated statement of comprehensive income
92
Consolidated statement of financial position
93
Consolidated statement of changes in equity
94
Consolidated cash flow statement
95
Notes to the accounts
1.
Segmental reporting
96
2.
Net operating revenue
97
3.
Total expenses
100
4.
Tax expense
101
5.
Earnings per share
102
6.
Dividends
103
7.
Trade and other receivables
103
8.
Financial assets and liabilities
104
9.
Issued debt
108
10.
Associates and joint ventures
108
11.
Property, plant and equipment
111
12.
Leases
111
13.
Goodwill and intangible assets
112
14.
Deferred tax
114
15.
Unit-linked liabilities and assets backing unit-linked liabilities
115
16.
Trade and other payables
117
17.
Provisions and contingent liabilities
118
18.
Derivative contracts
119
19.
Financial instrument risk management
121
20.
Share capital and share premium
128
21.
Own shares
128
22.
Reconciliation of net cash from operating activities
129
23.
Commitments
130
24.
Retirement benefit obligations
130
25.
Share-based payments
135
26.
Related party transactions
138
27.
Interests in structured entities
139
28.
Business combinations
141
Presentation of the financial statements
142
Schroders plc financial statements
Schroders plc – Statement of financial position
144
Schroders plc – Statement of changes in equity
145
Schroders plc – Cash flow statement
146
Schroders plc – Notes to the accounts
29.
Significant accounting policies
147
30.
Expenses and other disclosures
147
31.
Trade and other receivables
147
32.
Trade and other payables
147
33.
Deferred tax
148
34.
Financial instrument risk management
148
35.
Own shares
149
36.
Related party transactions
149
37.
Subsidiaries and other related undertakings
150
Independent auditor’s report
167
Consolidated financial statements
90 Schroders Annual Report and Accounts 2024
Consolidated income statement
for the year ended 31December 2024
2024 | 2023 | ||
Notes | £m | £m | |
Revenue | |||
Cost of sales | ( | ( | |
Net operating revenue | 2 | ||
Of which: Performance fees | |||
Net carried interest income | |||
Net operating revenue excluding performance-based revenues | |||
Share of profit of associates and joint ventures | 10 | ||
Other operating income | |||
Net operating income | |||
Operating expenses | 3 | ( | ( |
Operating profit | |||
Central costs | 3 | ( | ( |
Net gain on financial instruments and other income | |||
Interest income | |||
Acquisition costs and related items | 3 | ( | ( |
Restructuring costs | 3 | ( | |
Profit before tax | |||
Tax | 4(a) | ( | ( |
Profit after tax | |||
Attributable to: | |||
Equity holders of Schroders plc | |||
Non-controlling interest holders | |||
Profit after tax | |||
Earnings per share | |||
Basic | 5 | ||
Diluted | 5 | ||
Operating earnings per share | |||
Basic | 5 | ||
Diluted | 5 |
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91 Schroders Annual Report and Accounts 2024
Consolidated statement of comprehensive income
for the year ended 31 December 2024
2024 | 2023 | ||
Notes | £m | £m | |
Profit after tax | |||
Items that may be reclassified to the income statement: | |||
Net exchange differences on translation of foreign operations after hedging | ( | ( | |
Net gain on financial assets at fair value through other comprehensive income | |||
( | ( | ||
Items that have been reclassified to the income statement: | ( | ||
Items that will not be reclassified to the income statement: | |||
Net actuarial loss on defined benefit pension schemes | 24 | ( | ( |
Tax on items taken directly to other comprehensive income | 4(b) | ||
( | ( | ||
Other comprehensive income for the year, net of tax | ( | ( | |
Total comprehensive income for the year | |||
Attributable to: | |||
Equity holders of Schroders plc | |||
Non-controlling interest holders | |||
Total comprehensive income for the year |
Consolidated financial statements continued
92 Schroders Annual Report and Accounts 2024
Consolidated statement of financial position
at 31December 2024
2024 | 2023 | ||
Notes | £m | £m | |
Assets | |||
Cash and cash equivalents | |||
Trade and other receivables | 7 | ||
Financial assets | 8 | ||
Associates and joint ventures | 10 | ||
Property, plant and equipment | 11, 12 | ||
Goodwill and intangible assets | 13 | ||
Deferred tax | 14 | ||
Retirement benefit scheme surplus | 24 | ||
Assets backing unit-linked liabilities | |||
Cash and cash equivalents | |||
Financial assets | |||
15 | |||
Total assets | |||
Liabilities | |||
Trade and other payables | 16 | ||
Financial liabilities | 8 | ||
Current tax | |||
Issued debt | 9 | ||
Lease liabilities | 12 | ||
Provisions | 17 | ||
Deferred tax | 14 | ||
Retirement benefit scheme deficits | |||
Unit-linked liabilities | 15 | ||
Total liabilities | |||
Net assets | |||
Total equity excluding non-controlling interest | |||
Non-controlling interest | |||
Total equity |
The financial statements were approved by the Board of Directors on 5March 2025 and signed on its behalf by:
Meagen Burnett
Director
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93 Schroders Annual Report and Accounts 2024
Consolidated statement of changes in equity
for the year ended 31December 2024
Attributable to owners of the parent | ||||||||||
Net | Associates | |||||||||
exchange | and joint | Profit and | Non- | |||||||
| Share | Share | Own differences | ventures | loss | controlling | Total | ||||
| capital | premium | shares | reserve | reserve | reserve | Total | interest | equity | ||
Notes | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
At 1 January 2024 | ( | |||||||||
Profit for the year | ||||||||||
Other comprehensive income 1 | ( | ( | ( | ( | ||||||
Total comprehensive income | ||||||||||
for the year | ( | |||||||||
Own shares purchased | 21 | ( | ( | ( | ||||||
Share-based payments | 25 | |||||||||
Tax in respect of share schemes | 4(c) | |||||||||
Other movements 2 | ||||||||||
Dividends | 6 | ( | ( | ( | ( | |||||
Transactions with shareholders | ( | ( | ( | ( | ( | |||||
Transfers | ( | ( | ||||||||
At 31 December 2024 | ( |
Attributable to owners of the parent | ||||||||||
Net | Associates | |||||||||
exchange | and joint | Profit and | Non- | |||||||
| Share | Share | Own | differences | ventures | loss | controlling | Total | |||
| capital | premium | shares | reserve | reserve | reserve | Total | interest | equity | ||
Notes | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
At 1 January 2023 | ( | |||||||||
Profit for the year | ||||||||||
Other comprehensive income 1 | ( | ( | ( | ( | ||||||
Total comprehensive income | ||||||||||
for the year | ( | |||||||||
Own shares purchased | 21 | ( | ( | ( | ||||||
Share-based payments | 25 | |||||||||
Tax in respect of share schemes | 4(c) | |||||||||
Other movements 2 | ( | ( | ||||||||
Dividends | 6 | ( | ( | ( | ( | |||||
Transactions with shareholders | ( | ( | ( | ( | ( | |||||
Transfers | ( | ( | ||||||||
At 31 December 2023 | ( |
1. Other comprehensive income reported in the net exchange differences reserve comprises the net foreign exchange loss on the translation of foreign
operations net of hedging and any recycling on realisations. Other comprehensive income reported in the profit and loss reserve comprises the post-tax
actuarial loss on the Group’s retirement benefit schemes and post-tax fair value movements on financial assets at fair value through other comprehensive
income.
2. Other movements in the profit and loss reserve principally relate to financial liabilities in respect of options to purchase the remaining non-controlling
interest in certain subsidiaries (see note 8). In 2023, other movements in the non-controlling interest reserve principally comprise the derecognition of
BOCOM Wealth Management Company Limited on reclassification from a subsidiary to an associate (see note 10(a)).
Consolidated financial statements continued
94 Schroders Annual Report and Accounts 2024
Consolidated cash flow statement
for the year ended 31 December 2024
2024 | 2023 | ||
Notes | £m | £m | |
1 | 22 | ||
Net cash from/(used in) operating activities | ( | ||
Cash flows from investing activities | |||
Net acquisition/disposal of businesses, associates and joint ventures 2 | ( | ( | |
Net acquisition of property, plant and equipment and software | ( | ( | |
Acquisition of financial assets | ( | ( | |
Disposal of financial assets | |||
Non-banking interest received | |||
Distributions received from associates and joint ventures | |||
Net cash used in investing activities | ( | ( | |
Cash flows from financing activities | |||
Issuance of loan notes | 9 | ||
Purchase of subsidiary shares from non-controlling interest holders | ( | ( | |
Lease payments | 12 | ( | ( |
Acquisition of own shares | 21 | ( | ( |
Dividends paid | 6 | ( | ( |
Other | ( | ( | |
Net cash used in financing activities | ( | ( | |
Net increase/(decrease) in cash and cash equivalents | ( | ||
Opening cash and cash equivalents | |||
Net increase/(decrease) in cash and cash equivalents | ( | ||
Effect of exchange rate changes | ( | ||
Closing cash and cash equivalents | |||
Closing cash and cash equivalents consists of: | |||
Cash and cash equivalents available for use by the Group | |||
Cash held in consolidated pooled investment vehicles | |||
Cash and cash equivalents presented within assets | |||
Cash and cash equivalents presented within assets backing unit-linked liabilities | 15 | ||
Closing cash and cash equivalents |
1. Includes Wealth Management interest income received of £22 7. 6 million (2023: £1 91 .6 million) and interest paid of £1 82 .6 million (2023: £15 1. 6 million).
2. 2023 includes the derecognition of cash on reclassification of BOCOM Wealth Management Company Limited from a subsidiary to an associate (see note
10(a)).
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95 Schroders Annual Report and Accounts 2024
Notes to the accounts
| Asset | Wealth | ||
| Management | Management | Total | |
Year ended 31 December 2024 | £m | £m | £m |
Revenue | 2,295.1 | 674.9 | 2,970.0 |
Cost of sales | (416.1) | (196.2) | (612.3) |
Net operating revenue | 1,879.0 | 478.7 | 2,357.7 |
Of which: Performance fees | 33.2 | 0.5 | 33.7 |
Net carried interest income | 29.7 | – | 29.7 |
Net operating revenue excluding performance-based revenues | 1,816.1 | 478.2 | 2,294.3 |
Share of profit of associates and joint ventures | 37.1 | 10.5 | 47.6 |
Other operating income | 13.0 | 8.5 | 21.5 |
Net operating income | 1,929.1 | 497.7 | 2,426.8 |
Operating expenses | (1,461.2) | (325.1) | (1,786.3) |
Operating profit | 467.9 | 172.6 |
640.5 | |||
Asset | Wealth | ||
Management | Management | Total | |
Year ended 31 December 2023 | £m | £m | £m |
Revenue | 2,349.3 | 587.4 | 2,936.7 |
Cost of sales | (438.1) | (164.2) | (602.3) |
Net operating revenue | 1,911.2 | 423.2 | 2,334.4 |
Of which: Performance fees | 36.7 | 0.6 | 37.3 |
Net carried interest income | 46.9 | – | 46.9 |
Net operating revenue excluding performance-based revenues | 1,827.6 | 422.6 | 2,250.2 |
Share of profit of associates and joint ventures | 48.7 | 2.4 | 51.1 |
Other operating income | 22.3 | 11.2 | 33.5 |
Net operating income | 1,982.2 | 436.8 | 2,419.0 |
Operating expenses | (1,471.7) | (286.3) | (1,758.0) |
Operating profit | 510.5 | 150.5 | 661.0 |
Consolidated financial statements continued
96 Schroders Annual Report and Accounts 2024
1 Segmental reporting continued
(b) Geographical information
The Group’s non-current assets
1
are located in the following countries:
2024 | 2023 | |
£m | £m | |
United Kingdom | 2,005.7 | 2,054.1 |
China | 286.9 | 270.8 |
Switzerland | 242.7 | 203.6 |
United States | 86.1 | 98.7 |
India | 69.3 | 54.8 |
France | 66.6 | 74.5 |
Hong Kong | 32.1 | 22.5 |
Other | 92.8 | 106.4 |
Total | 2,882.2 | 2,885.4 |
1. Comprises the following non-current assets: property, plant and equipment, goodwill and intangible assets, associates and joint ventures and prepayments.
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97 Schroders Annual Report and Accounts 2024
2 Net operating revenue continued
| Asset | Wealth | ||
| Management | Management | Total | |
Year ended 31 December 2024 | £m | £m | £m |
Management fees | 2,208.7 | 391.0 | 2,599.7 |
Performance fees | 33.2 | 0.5 | 33.7 |
Carried interest | 35.2 | – | 35.2 |
Other fees | 18.0 | 38.8 | 56.8 |
Wealth Management interest income | – | 244.6 | 244.6 |
Revenue | 2,295.1 | 674.9 | 2,970.0 |
Fee expense | (410.6) | (13.9) | (424.5) |
Cost of financial obligations in respect of carried interest | (5.5) | – | (5.5) |
Wealth Management interest expense | – | (182.3) | (182.3) |
Cost of sales | (416.1) | (196.2) | (612.3) |
Net operating revenue | 1,879.0 | 478.7 | 2,357.7 |
Asset | Wealth | ||
Management | Management | Total | |
Year ended 31 December 2023 | £m | £m | £m |
Management fees | 2,230.6 | 340.6 | 2,571.2 |
Performance fees | 36.7 | 0.6 | 37.3 |
Carried interest | 64.8 | – | 64.8 |
Other fees | 17.2 | 31.8 | 49.0 |
Wealth Management interest income | – | 214.4 | 214.4 |
Revenue | 2,349.3 | 587.4 | 2,936.7 |
Fee expense | (420.2) | (13.1) | (433.3) |
Cost of financial obligations in respect of carried interest | (17.9) | – | (17.9) |
Wealth Management interest expense | – | (151.1) | (151.1) |
Cost of sales | (438.1) | (164.2) | (602.3) |
Net operating revenue | 1,911.2 | 423.2 | 2,334.4 |
| Continental | |||||
| Europe & | |||||
| UK | Middle East | Asia Pacific | Americas | Total | |
Year ended 31 December 2024 | £m | £m | £m | £m | £m |
Management fees | 918.8 | 795.0 | 541.7 | 344.2 | 2,599.7 |
Performance fees | 8.4 | 8.9 | 9.9 | 6.5 | 33.7 |
Carried interest | – | 35.2 | – | – | 35.2 |
Other fees | 36.4 | 14.1 | 6.3 | – | 56.8 |
Wealth Management interest income | 227.6 | 14.1 | 2.9 | – | 244.6 |
Revenue | 1,191.2 | 867.3 | 560.8 | 350.7 | 2,970.0 |
Fee expense | (52.2) | (196.9) | (139.6) | (35.8) | (424.5) |
Cost of financial obligations in respect of carried interest | – | (5.5) | – | – | (5.5) |
Wealth Management interest expense | (180.8) | (0.6) | (0.9) | – | (182.3) |
Cost of sales | (233.0) | (203.0) | (140.5) | (35.8) | (612.3) |
Net operating revenue | 958.2 | 664.3 | 420.3 | 314.9 | 2,357.7 |
Consolidated financial statements continued
Notes to the accounts continued
98 Schroders Annual Report and Accounts 2024
2 Net operating revenue continued
(b) Net operating revenue by region based on the location of clients continued
| Continental | |||||
| Europe & | |||||
| UK | Middle East | Asia Pacific | Americas | Total | |
Year ended 31 December 2023 | £m | £m | £m | £m | £m |
Management fees | 870.6 | 785.4 | 560.9 | 354.3 | 2,571.2 |
Performance fees | 6.6 | 14.0 | 5.4 | 11.3 | 37.3 |
Carried interest | – | 64.8 | – | – | 64.8 |
Other fees | 29.6 | 13.4 | 6.0 | – | 49.0 |
Wealth Management interest income | 191.2 | 19.9 | 3.3 | – | 214.4 |
Revenue | 1,098.0 | 897.5 | 575.6 | 365.6 | 2,936.7 |
Fee expense | (54.3) | (181.5) | (149.9) | (47.6) | (433.3) |
Cost of financial obligations in respect of carried interest | – | (17.9) | – | – | (17.9) |
Wealth Management interest expense | (149.1) | (1.2) | (0.8) | – | (151.1) |
Cost of sales | (203.4) | (200.6) | (150.7) | (47.6) | (602.3) |
Net operating revenue | 894.6 | 696.9 | 424.9 | 318.0 | 2,334.4 |
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99 Schroders Annual Report and Accounts 2024
2024 | 2023 | |
Year ended 31 December | £m | £m |
Operating expenses | 1,786.3 | 1,758.0 |
Central costs | 53.0 | 52.9 |
Acquisition costs and related items | 74.3 | 90.0 |
Restructuring costs | – | 86.2 |
Total expenses | 1,913.6 | 1,987.1 |
2024 | 2023 | |
Year ended 31 December | £m | £m |
Salaries, wages and other remuneration | 1,011.9 | 1,058.7 |
Social security costs | 98.2 | 104.9 |
Pension costs | 75.1 | 72.0 |
Employee benefits expense | 1,185.2 | 1,235.6 |
Net gain on financial instruments held to hedge deferred cash awards | (24.6) | (13.7) |
Employee benefits expense – net of hedging | 1,160.6 | 1,221.9 |
Consolidated financial statements continued
Notes to the accounts continued
100 Schroders Annual Report and Accounts 2024
3 Total expenses continued
(b) Employee benefits expense and number of employees continued
2024 | 2023 | |
Number | Number | |
Full-time employees | 6,208 | 6,191 |
Contract and temporary employees | 177 | 199 |
6,385 | 6,390 | |
Employed as follows: | ||
Asset Management | 5,047 | 5,045 |
Wealth Management | 1,310 | 1,313 |
Central | 28 | 32 |
6,385 | 6,390 |
2024 | 2023 | |
Year ended 31 December | £m | £m |
Fees payable to the auditor for the audit of the Company and Consolidated financial statements | 0.8 | 0.7 |
Fees payable to the auditor and its associates for other services: | ||
Audit of the Company’s subsidiaries | 5.3 | 5.0 |
Audit-related assurance services | 1.4 | 1.5 |
Other assurance services | 0.8 | 0.8 |
8.3 | 8.0 |
2024 | 2023 | |
Year ended 31 December | £m | £m |
UK current year charge | 27.0 | 59.2 |
Rest of the world current year charge | 72.3 | 64.5 |
Global minimum top-up tax | 2.7 | – |
Prior year adjustments | (7.8) | (6.2) |
Total current tax | 94.2 | 117.5 |
Origination and reversal of temporary differences | 33.0 | (30.9) |
Prior year adjustments | (2.7) | 2.1 |
Effect of changes in corporation tax rates | 0.6 | (3.7) |
Total deferred tax | 30.9 | (32.5) |
Tax charge reported in the income statement | 125.1 | 85.0 |
2024 | 2023 | |
Year ended 31 December | £m | £m |
Deferred tax credit on actuarial gains and losses on defined benefit pension schemes | (1.9) | (1.0) |
Tax credit reported in other comprehensive income | (1.9) | (1.0) |
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101 Schroders Annual Report and Accounts 2024
4 Tax expense continued
2024 | 2023 | |
Year ended 31 December | £m | £m |
Current tax credit on Deferred Award Plan and other share-based remuneration | (0.8) | (2.1) |
Deferred tax charge on Deferred Award Plan and other share-based remuneration | 0.1 | 0.7 |
Tax credit reported in equity | (0.7) | (1.4) |
2024 | 2023 | |
Year ended 31 December | £m | £m |
Profit before tax | 558.1 | 487.6 |
Less share of profit of associates and joint ventures after amortisation | (42.1) | (40.5) |
Profit before tax of Group entities | 516.0 | 447.1 |
Profit before tax of consolidated Group entities multiplied by corporation tax at the UK rate | 129.0 | 105.1 |
Effects of: | ||
Different statutory tax rates of overseas jurisdictions | (15.2) | (17.3) |
Global minimum top-up tax | 2.7 | – |
Permanent differences including non-taxable income and non-deductible expenses | 16.7 | 3.4 |
Net movement in temporary differences for which no deferred tax is recognised | 1.8 | 1.6 |
Deferred tax adjustments in respect of changes in corporation tax rates | 0.6 | (3.7) |
Prior year adjustments | (10.5) | (4.1) |
Tax charge reported in the income statement | 125.1 | 85.0 |
2024 | 2023 | |
Number | Number | |
Year ended 31 December | Millions | Millions |
Weighted average number of shares used in the calculation of basic earnings per share | 1,578.6 | 1,575.9 |
Effect of dilutive potential shares – share options | 26.1 | 28.0 |
Effect of dilutive potential shares – contingently issuable shares | 0.4 | 0.3 |
Weighted average number of shares used in the calculation of diluted earnings per share | 1,605.1 | 1,604.2 |
Consolidated financial statements continued
Notes to the accounts continued
102 Schroders Annual Report and Accounts 2024
2025 | 2024 | 2023 | ||||
Pence per | Pence per | Pence per | ||||
| £m | share | £m | share | £m | share | |
Prior year final dividend paid | 233.0 | 15.0 | 232.2 | 15.0 | ||
Interim dividend paid | 101.2 | 6.5 | 100.8 | 6.5 | ||
Total dividends paid | 334.2 | 333.0 | ||||
Current year final dividend | ||||||
recommended | 233.0 | 15.0 |
2024 | 2023 | |||||
Non-current | Current | Total | Non-current | Current | Total | |
£m | £m | £m | £m | £m | £m | |
Trade and other receivables held at amortised cost: | ||||||
Fee debtors | – | 102.6 | 102.6 | – | 97.1 | 97.1 |
Settlement accounts | – | 156.2 | 156.2 | – | 142.8 | 142.8 |
Accrued income | 128.3 | 427.9 | 556.2 | 118.9 | 405.5 | 524.4 |
Prepayments | 3.1 | 60.7 | 63.8 | 4.2 | 61.2 | 65.4 |
Other receivables 1 | 37.6 | 60.0 | 97.6 | 3.6 | 49.6 | 53.2 |
Current tax | – | 47.5 | 47.5 | – | 35.3 | 35.3 |
169.0 | 854.9 | 1,023.9 | 126.7 | 791.5 | 918.2 | |
Trade and other receivables held at fair value: | ||||||
Deposits with banks in the form of bullion | – | 2.5 | 2.5 | – | 2.2 | 2.2 |
Total trade and other receivables | 169.0 | 857.4 | 1,026.4 | 126.7 | 793.7 | 920.4 |
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103 Schroders Annual Report and Accounts 2024
Consolidated financial statements continued
Notes to the accounts continued
104 Schroders Annual Report and Accounts 2024
8 Financial assets and liabilities continued
2024 | |||||
Not at | |||||
Level 1 | Level 2 | Level 3 | fair value | Total | |
£m | £m | £m | £m | £m | |
Financial assets at amortised cost: | |||||
Loans and advances to banks | – | – | – | 286.5 | 286.5 |
Loans and advances to clients | – | – | – | 390.0 | 390.0 |
Debt securities | – | – | – | 311.8 | 311.8 |
– | – | – | 988.3 | 988.3 | |
Financial assets at FVOCI: | |||||
Debt securities | 1,103.7 | 2.0 | 9.5 | – | 1,115.2 |
1,103.7 | 2.0 | 9.5 | – | 1,115.2 | |
Financial assets at FVTPL: | |||||
Debt securities | 13.4 | 40.5 | – | – | 53.9 |
Pooled investment vehicles | 663.6 | 19.1 | 206.5 | – | 889.2 |
Equities | 117.5 | 0.3 | 55.5 | – | 173.3 |
Derivative contracts | 0.7 | 7.3 | – | – | 8.0 |
795.2 | 67.2 | 262.0 | – | 1,124.4 | |
Total financial assets | 1,898.9 | 69.2 | 271.5 | 988.3 | 3,227.9 |
Financial liabilities at amortised cost: | |||||
Client accounts | – | – | – | 4,725.0 | 4,725.0 |
Deposits by banks | – | – | – | 30.1 | 30.1 |
– | – | – | 4,755.1 | 4,755.1 | |
Financial liabilities at FVTPL: | |||||
Derivative contracts | – | 11.4 | – | – | 11.4 |
Other financial liabilities | 101.8 | – | 104.6 | – | 206.4 |
101.8 | 11.4 | 104.6 | – | 217.8 | |
Liabilities to purchase subsidiary shares | – | – | 140.7 | – | 140.7 |
Total financial liabilities | 101.8 | 11.4 | 245.3 | 4,755.1 | 5,113.6 |
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105 Schroders Annual Report and Accounts 2024
8 Financial assets and liabilities continued
2023 | |||||
Not at | |||||
Level 1 | Level 2 | Level 3 | fair value | Total | |
£m | £m | £m | £m | £m | |
Financial assets at amortised cost: | |||||
Loans and advances to banks | – | – | – | 397.9 | 397.9 |
Loans and advances to clients | – | – | – | 446.0 | 446.0 |
Debt securities | – | – | – | 356.7 | 356.7 |
– | – | – | 1,200.6 | 1,200.6 | |
Financial assets at FVOCI: | |||||
Debt securities | 697.6 | 3.2 | 10.6 | – | 711.4 |
697.6 | 3.2 | 10.6 | – | 711.4 | |
Financial assets at FVTPL: | |||||
Debt securities | 13.6 | 64.7 | – | – | 78.3 |
Pooled investment vehicles | 420.2 | 10.3 | 200.6 | – | 631.1 |
Equities | 153.3 | 9.9 | 27.5 | – | 190.7 |
Derivative contracts | – | 15.0 | – | – | 15.0 |
587.1 | 99.9 | 228.1 | – | 915.1 | |
Total financial assets | 1,284.7 | 103.1 | 238.7 | 1,200.6 | 2,827.1 |
Financial liabilities at amortised cost: | |||||
Client accounts | – | – | – | 4,135.0 | 4,135.0 |
Deposits by banks | – | – | – | 64.4 | 64.4 |
– | – | – | 4,199.4 | 4,199.4 | |
Financial liabilities at FVTPL: | |||||
Derivative contracts | 1.5 | 10.7 | – | – | 12.2 |
Other financial liabilities | 92.1 | – | 96.9 | – | 189.0 |
93.6 | 10.7 | 96.9 | – | 201.2 | |
Liabilities to purchase subsidiary shares | – | – | 177.6 | – | 177.6 |
Total financial liabilities | 93.6 | 10.7 | 274.5 | 4,199.4 | 4,578.2 |
2024 | 2023 | |||
Financial | Financial | Financial | Financial | |
assets | liabilities | assets | liabilities | |
£m | £m | £m | £m | |
Current | 2,565.3 | 4,907.9 | 2,052.5 | 4,316.6 |
Non-current | 662.6 | 205.7 | 774.6 | 261.6 |
3,227.9 | 5,113.6 | 2,827.1 | 4,578.2 |
Consolidated financial statements continued
Notes to the accounts continued
106 Schroders Annual Report and Accounts 2024
8 Financial assets and liabilities continued
2024 | 2023 | |||||
| Liabilities to | Liabilities to | |||||
| Financial | Financial | purchase | Financial | Financial | purchase | |
| assets | liabilities | subsidiary | assets | liabilities | subsidiary | |
| at FVTPL | at FVTPL | shares | at FVTPL | at FVTPL | shares | |
£m | £m | £m | £m | £m | £m | |
At 1 January | 228.1 | 96.9 | 177.6 | 191.2 | 91.4 | 218.7 |
Exchange translation adjustments | (3.8) | (1.7) | – | (6.2) | (3.5) | (1.1) |
| Net gain recognised in the income | ||||||
statement | 2.7 | 8.7 | – | 21.6 | 20.5 | – |
Remeasurements | – | – | (36.7) | – | – | (37.9) |
Additions | 56.4 | 8.6 | 3.7 | 34.8 | 2.7 | – |
Disposals and settlements | (21.4) | (7.9) | (3.9) | (13.3) | (14.2) | (2.1) |
At 31 December | 262.0 | 104.6 | 140.7 | 228.1 | 96.9 | 177.6 |
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107 Schroders Annual Report and Accounts 2024
2024 | 2023 | |
£m | £m | |
Subordinated debt in issue | 256.0 | – |
2024 | 2023 | |||||
Associates | Joint ventures | Total | Associates | Joint ventures | Total | |
£m | £m | £m | £m | £m | £m | |
At 1 January | 348.2 | 183.5 | 531.7 | 304.8 | 192.9 | 497.7 |
Exchange translation adjustments | (2.4) | (0.7) | (3.1) | (25.9) | (0.3) | (26.2) |
Additions 1 | 17.6 | 1.0 | 18.6 | 51.9 | 2.0 | 53.9 |
Disposals | (8.0) | – | (8.0) | (1.1) | (3.3) | (4.4) |
Profit/(loss) for the year after tax 2 | 36.5 | 5.6 | 42.1 | 47.4 | (6.9) | 40.5 |
Impairment | (8.0) | – | (8.0) | – | – | – |
Distributions of profit | (15.0) | (8.3) | (23.3) | (28.9) | (0.9) | (29.8) |
At 31 December | 368.9 | 181.1 | 550.0 | 348.2 | 183.5 | 531.7 |
Principal | Percentage | |||
place of | owned by the | |||
Name of associate or joint venture | Nature of its business | business | Class of share | Group |
Scottish Widows Schroder Wealth Holdings Limited (SPW) | Wealth management | England | Ordinary shares | 49.9% |
| Bank of Communications Schroder Fund Management | ||||
Company Limited (BOCOM FMC) | Investment management | China | Ordinary shares | 30.0% |
Axis Asset Management Company Limited (Axis) | Investment management | India | Ordinary shares | 25.0% |
| Schroder BOCOM Wealth Management Company Limited | ||||
(BOCOM WMC) | Wealth management | China | Ordinary shares | 51.0% |
Consolidated financial statements continued
Notes to the accounts continued
108 Schroders Annual Report and Accounts 2024
10 Associates and joint ventures continued
(a) Investments in associates and joint ventures accounted for using the equity method continued
2024 | ||||||
SPW 1 | BOCOM FMC | Axis | BOCOM WMC | Other | Total | |
£m | £m | £m | £m | £m | £m | |
Non-current assets | 191.6 | 42.9 | 77.5 | 8.4 | 1,086.6 | 1,407.0 |
Current assets | 160.2 | 874.2 | 191.6 | 89.5 | 165.8 | 1,481.3 |
Non-current liabilities | (33.0) | – | – | (1.4) | (1,072.1) | (1,106.5) |
Current liabilities | (67.1) | (136.6) | (30.8) | (4.2) | (113.3) | (352.0) |
Total equity | 251.7 | 780.5 | 238.3 | 92.3 | 67.0 | 1,429.8 |
Group's share of net assets | 125.6 | 234.2 | 59.6 | 47.1 | 19.0 | 485.5 |
Goodwill and intangible assets | 49.5 | – | 9.7 | – | 6.4 | 65.6 |
Deferred tax liability | (1.1) | – | – | – | – | (1.1) |
Carrying value held by the Group | 174.0 | 234.2 | 69.3 | 47.1 | 25.4 | 550.0 |
Net income | 156.6 | 208.8 | 132.3 | 5.7 | 54.4 | 557.8 |
Profit/(loss) for the year | 15.1 | 95.7 | 60.4 | (10.4) | (2.6) | 158.2 |
Total comprehensive income | 15.1 | 95.7 | 60.4 | (10.4) | (2.6) | 158.2 |
Group's share of operating profit/(loss) | 9.9 | 28.7 | 15.1 | (5.3) | (0.8) | 47.6 |
Acquisition costs and related items 2 | (4.7) | – | – | – | (0.8) | (5.5) |
Group's share of total comprehensive income | 5.2 | 28.7 | 15.1 | (5.3) | (1.6) | 42.1 |
2023 | ||||||
SPW 1 | BOCOM FMC | Axis | BOCOM WMC | Other | Total | |
£m | £m | £m | £m | £m | £m | |
Non-current assets | 199.9 | 48.0 | 51.9 | 8.7 | 1,123.0 | 1,431.5 |
Current assets | 112.2 | 812.9 | 150.8 | 81.7 | 161.4 | 1,319.0 |
Non-current liabilities | (18.7) | – | – | (1.3) | (1,066.3) | (1,086.3) |
Current liabilities | (41.3) | (119.2) | (22.7) | (7.9) | (124.1) | (315.2) |
Total equity | 252.1 | 741.7 | 180.0 | 81.2 | 94.0 | 1,349.0 |
Group's share of net assets | 125.8 | 222.5 | 45.0 | 41.4 | 20.9 | 455.6 |
Goodwill and intangible assets | 52.4 | – | 9.8 | – | 15.8 | 78.0 |
Deferred tax liability | (1.9) | – | – | – | – | (1.9) |
Carrying value held by the Group | 176.3 | 222.5 | 54.8 | 41.4 | 36.7 | 531.7 |
Net income | 128.4 | 275.0 | 111.4 | 4.1 | 58.4 | 577.3 |
Profit/(loss) for the year | (9.6) | 136.7 | 50.4 | (12.7) | 7.5 | 172.3 |
Total comprehensive income | (9.6) | 136.7 | 50.4 | (12.7) | 7.5 | 172.3 |
Group's share of operating profit/(loss) | 2.1 | 41.0 | 12.6 | (6.5) | 1.9 | 51.1 |
Acquisition costs and related items 2 | (4.6) | – | – | – | (1.3) | (5.9) |
Restructuring costs | (4.7) | – | – | – | – | (4.7) |
Group's share of total comprehensive income | (7.2) | 41.0 | 12.6 | (6.5) | 0.6 | 40.5 |
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109 Schroders Annual Report and Accounts 2024
10 Associates and joint ventures continued
2024 | Schroder | |||||
Matching Plus | ||||||
| Schroders | Buy and | |||||
| Capital Semi- | Schroder | SMP Synthetic | Maintain | |||
| Liquid Global | BlueOrchard | Schroder QEP | Long Dated | Nominal Gilt | Credit | |
| Real Estate | Impact Credit | Global Active | Corporate | Fund | Sterling | |
Cashflow | ||||||
| Total Return | Fund | Value Fund | Bond Fund | (2038-2057) | (2032-2040) | |
£m | £m | £m | £m | £m | £m | |
Current assets | 42.4 | 26.4 | 322.3 | 148.2 | 1,595.8 | 219.5 |
Current liabilities | (10.1) | – | (0.6) | (0.7) | (1,091.0) | (48.7) |
Total equity | 32.3 | 26.4 | 321.7 | 147.5 | 504.8 | 170.8 |
Net income | 0.6 | 1.5 | 10.4 | 8.6 | 51.9 | 4.7 |
Profit for the year | 0.6 | 1.5 | 10.4 | 8.6 | 51.9 | 4.7 |
Total comprehensive income | 0.6 | 1.5 | 10.4 | 8.6 | 51.9 | 4.7 |
Country of incorporation 1 | LU | LU | UK | UK | UK | LU |
Percentage owned by the Group | 33% | 33% | 27% | 20% | 23% | 27% |
2023 | |||||||||
| Schroder | |||||||||
| Schroders | Global | Schroder | |||||||
| Schroder | Capital | Schroder | Schroder | Sovereign | ISF | ||||
| ISF | Semi-Liquid | Schroder | Long | Global | Bond | Emerging | |||
| Schroder | Sustainable | Global Real | BlueOrchard | QEP Global | Dated | Equity | Tracker | Markets | |
| Best | Future | Estate Total | Impact | Active | Corporate | Component | Component | Equity | |
| Ideas FIA | Trends | Return | Credit Fund | Value Fund | Bond Fund | Fund | Fund | Impact | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
Current assets | 23.1 | 33.9 | 18.8 | 15.4 | 338.5 | 162.0 | 126.5 | 420.1 | 45.5 |
Current liabilities | (0.2) | (16.9) | (0.1) | (0.1) | (2.8) | (0.5) | (0.1) | (1.3) | – |
Total equity | 22.9 | 17.0 | 18.7 | 15.3 | 335.7 | 161.5 | 126.4 | 418.8 | 45.5 |
Net income | 0.6 | 0.6 | 0.4 | (0.1) | 14.0 | 13.6 | 5.0 | 13.8 | 2.0 |
Profit/(loss) for the year | 0.6 | 0.6 | 0.4 | (0.1) | 14.0 | 13.6 | 5.0 | 14.8 | 2.0 |
Total | |||||||||
comprehensive income | 0.6 | 0.6 | 0.4 | (0.1) | 14.0 | 13.6 | 5.0 | 14.8 | 2.0 |
Country of incorporation 1 | BR | LU | LU | LU | UK | UK | UK | UK | LU |
Percentage owned | |||||||||
by the Group | 31% | 28% | 22% | 26% | 25% | 25% | 22% | 33% | 24% |
Consolidated financial statements continued
Notes to the accounts continued
110 Schroders Annual Report and Accounts 2024
2024 | 2023 | |||||||
| Leasehold | Land and | Other | Leasehold | Land and | Other | |||
| improvements | buildings | assets | Total | improvements | buildings | assets | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Cost | ||||||||
At 1 January | 210.7 | 19.7 | 166.4 | 396.8 | 207.0 | 19.7 | 169.0 | 395.7 |
Exchange translation adjustments | (1.3) | – | (1.0) | (2.3) | (2.1) | – | (2.5) | (4.6) |
Additions | 15.8 | – | 8.0 | 23.8 | 7.6 | – | 4.9 | 12.5 |
Disposals | (9.3) | – | (15.5) | (24.8) | (1.8) | – | (5.0) | (6.8) |
At 31 December | 215.9 | 19.7 | 157.9 | 393.5 | 210.7 | 19.7 | 166.4 | 396.8 |
| Accumulated depreciation | ||||||||
At 1 January | (89.3) | (2.6) | (118.7) | (210.6) | (75.7) | (2.2) | (112.0) | (189.9) |
Exchange translation adjustments | 0.7 | – | 0.8 | 1.5 | 1.3 | – | 1.8 | 3.1 |
Depreciation charge | (13.6) | (0.4) | (9.3) | (23.3) | (15.7) | (0.4) | (10.9) | (27.0) |
Disposals | 9.3 | – | 14.9 | 24.2 | 0.8 | – | 2.4 | 3.2 |
At 31 December | (92.9) | (3.0) | (112.3) | (208.2) | (89.3) | (2.6) | (118.7) | (210.6) |
Net book value at 31 December | 123.0 | 16.7 | 45.6 | 185.3 | 121.4 | 17.1 | 47.7 | 186.2 |
Right-of-use assets (see note 12) | 303.3 | 278.1 | ||||||
| Property, plant and equipment net | ||||||||
book value at 31 December | 488.6 | 464.3 |
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111 Schroders Annual Report and Accounts 2024
12 Leases continued
2024 | 2023 | |||
| Right-of-use | Lease | Right-of-use | Lease | |
| assets | liabilities | assets | liabilities | |
£m | £m | £m | £m | |
At 1 January | 278.1 | 318.7 | 318.3 | 361.0 |
Exchange translation adjustments | (0.9) | (0.6) | (4.3) | (6.5) |
Additions and remeasurements of lease obligations | 64.6 | 63.9 | 7.7 | 7.2 |
Lease payments | – | (46.0) | – | (52.3) |
Depreciation charge | (38.5) | – | (43.6) | – |
Interest expense | – | 9.7 | – | 9.3 |
At 31 December | 303.3 | 345.7 | 278.1 | 318.7 |
2024 | 2023 | |
£m | £m | |
Lease liabilities – current | 36.4 | 35.3 |
Lease liabilities – non-current | 309.3 | 283.4 |
345.7 | 318.7 |
2024 | 2023 | |
£m | £m | |
Less than 1 year | 47.0 | 43.0 |
1 – 2 years | 39.8 | 38.2 |
2 – 5 years | 109.1 | 92.1 |
More than 5 years | 230.3 | 201.8 |
379.2 | 332.1 | |
426.2 | 375.1 |
Consolidated financial statements continued
Notes to the accounts continued
112 Schroders Annual Report and Accounts 2024
13 Goodwill and intangible assets continued
2024 | 2023 | |||||||
| Acquired | Acquired | |||||||
| intangible | intangible | |||||||
| Goodwill | assets | Software | Total | Goodwill | assets | Software | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Cost | ||||||||
At 1 January | 1,255.0 | 730.6 | 632.7 | 2,618.3 | 1,239.7 | 710.0 | 573.0 | 2,522.7 |
Exchange translation adjustments | (17.3) | (6.5) | (2.8) | (26.6) | 2.1 | 0.6 | (0.9) | 1.8 |
Additions | 31.9 | 26.5 | 46.7 | 105.1 | 13.2 | 20.0 | 67.4 | 100.6 |
Disposals | – | – | (20.6) | (20.6) | – | – | (6.8) | (6.8) |
At 31 December | 1,269.6 | 750.6 | 656.0 | 2,676.2 | 1,255.0 | 730.6 | 632.7 | 2,618.3 |
Accumulated amortisation | ||||||||
At 1 January | – | (367.7) | (365.4) | (733.1) | – | (308.8) | (284.4) | (593.2) |
Exchange translation adjustments | – | 4.4 | 1.7 | 6.1 | – | (0.4) | 0.2 | (0.2) |
Amortisation charge | – | (55.7) | (73.6) | (129.3) | – | (58.5) | (83.1) | (141.6) |
Disposals | – | – | 20.6 | 20.6 | – | – | 1.9 | 1.9 |
At 31 December | – | (419.0) | (416.7) | (835.7) | – | (367.7) | (365.4) | (733.1) |
Carrying amount at 31 December | 1,269.6 | 331.6 | 239.3 | 1,840.5 | 1,255.0 | 362.9 | 267.3 | 1,885.2 |
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113 Schroders Annual Report and Accounts 2024
2024 | |||||||
| Accelerated | Deferred | Intangible | Other net | ||||
| capital | employee | Pension | assets on | temporary | |||
| allowances | awards | schemes | Tax losses | acquisition | differences | Total | |
£m | £m | £m | £m | £m | £m | £m | |
At 1 January | 23.3 | 105.9 | (34.0) | 88.3 | (88.1) | (19.8) | 75.6 |
Income statement credit/(charge) | (3.6) | (12.0) | (0.1) | (29.9) | 12.8 | 2.5 | (30.3) |
Income statement credit/(charge) due to changes in tax rate | (0.4) | (0.2) | – | (0.1) | – | 0.1 | (0.6) |
Credit to statement of other comprehensive income | – | – | 1.9 | – | – | – | 1.9 |
Charge to equity | – | (0.1) | – | – | – | – | (0.1) |
Business combinations | – | – | – | – | (5.5) | – | (5.5) |
Exchange adjustments | 0.1 | (0.7) | – | (0.4) | 0.7 | (0.6) | (0.9) |
At 31 December | 19.4 | 92.9 | (32.2) | 57.9 | (80.1) | (17.8) | 40.1 |
2023 | |||||||
| Accelerated | Deferred | Intangible | Other net | ||||
| capital | employee | Pension | assets on | temporary | |||
| allowances | awards | schemes | Tax losses | acquisition | differences | Total | |
£m | £m | £m | £m | £m | £m | £m | |
At 1 January | 15.9 | 110.9 | (33.1) | 68.3 | (98.5) | (16.6) | 46.9 |
Income statement credit/(charge) | 7.1 | (6.1) | (1.8) | 16.4 | 11.3 | 1.9 | 28.8 |
Income statement credit/(charge) due to changes in tax rate | 0.3 | 2.6 | (0.1) | 3.7 | 1.7 | (4.5) | 3.7 |
Credit to statement of other comprehensive income | – | – | 0.9 | – | – | – | 0.9 |
Credit to statement of other comprehensive income | |||||||
due to changes in tax rates | – | – | – | – | – | 0.1 | 0.1 |
Charge to equity | – | (0.2) | – | – | – | (0.5) | (0.7) |
Business combinations | – | – | – | – | (2.7) | – | (2.7) |
Exchange adjustments | – | (1.3) | 0.1 | (0.1) | 0.1 | (0.2) | (1.4) |
At 31 December | 23.3 | 105.9 | (34.0) | 88.3 | (88.1) | (19.8) | 75.6 |
Consolidated financial statements continued
Notes to the accounts continued
114 Schroders Annual Report and Accounts 2024
14 Deferred tax continued
2024 | 2023 | |
£m | £m | |
Deferred tax assets | 160.4 | 203.9 |
Deferred tax liabilities | (120.3) | (128.3) |
40.1 | 75.6 |
2024 | 2023 | |
£m | £m | |
Financial liabilities due to Life Company investors | 7,228.0 | 7,744.0 |
Financial liabilities due to third parties 1 | 2,230.7 | 2,264.1 |
9,458.7 | 10,008.1 |
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115 Schroders Annual Report and Accounts 2024
15 Unit-linked liabilities and assets backing unit-linked liabilities continued
Fair value measurements of Life Company financial assets and liabilities
Each of the Life Company’s financial assets and liabilities has been categorised using a fair value hierarchy as shown below. These levels
are based on the degree to which the fair value is observable and are defined in note 8.
2024 | |||||
| Not at | |||||
Level 1 | Level 2 | Level 3 | fair value | Total | |
£m | £m | £m | £m | £m | |
Assets backing unit-linked liabilities | |||||
Financial assets at fair value through profit or loss: | |||||
Debt securities | 903.0 | 1,737.1 | – | – | 2,640.1 |
Pooled investment vehicles | 2,939.9 | 151.5 | 52.5 | – | 3,143.9 |
Equities | 3,355.1 | – | 93.3 | – | 3,448.4 |
Derivative contracts | 0.8 | 26.8 | – | – | 27.6 |
7,198.8 | 1,915.4 | 145.8 | – | 9,260.0 | |
Financial assets at amortised cost: | |||||
Cash and cash equivalents | – | – | – | 148.3 | 148.3 |
Trade and other receivables | – | – | – | 50.4 | 50.4 |
– | – | – | 198.7 | 198.7 | |
Total assets backing unit-linked liabilities | 7,198.8 | 1,915.4 | 145.8 | 198.7 | 9,458.7 |
Unit-linked liabilities | 9,399.8 | 43.9 | – | 15.0 | 9,458.7 |
2023 | |||||
| Not at | |||||
Level 1 | Level 2 | Level 3 | fair value | Total | |
£m | £m | £m | £m | £m | |
Assets backing unit-linked liabilities | |||||
Financial assets at fair value through profit or loss: | |||||
Debt securities | 1,490.4 | 1,793.4 | – | – | 3,283.8 |
Pooled investment vehicles | 3,070.1 | – | 18.3 | – | 3,088.4 |
Equities | 3,032.8 | 3.0 | – | – | 3,035.8 |
Derivative contracts | 28.7 | 69.9 | – | – | 98.6 |
7,622.0 | 1,866.3 | 18.3 | – | 9,506.6 | |
Financial assets at amortised cost: | |||||
Cash and cash equivalents | – | – | – | 453.1 | 453.1 |
Trade and other receivables | – | – | – | 48.4 | 48.4 |
– | – | – | 501.5 | 501.5 | |
Total assets backing unit-linked liabilities | 7,622.0 | 1,866.3 | 18.3 | 501.5 | 10,008.1 |
Unit-linked liabilities | 9,960.4 | 32.8 | – | 14.9 | 10,008.1 |
The fair value of financial instruments not held at fair value approximates their carrying value. No financial assets were transferred
between levels during the year (2023: none).
Consolidated financial statements continued
Notes to the accounts continued
116 Schroders Annual Report and Accounts 2024
15 Unit-linked liabilities and assets backing unit-linked liabilities continued
2024 | 2023 | |
£m | £m | |
At 1 January | 18.3 | 22.8 |
Exchange translation adjustments | (0.1) | (0.4) |
Net loss in the income statement | (3.5) | (0.3) |
Additions | 138.3 | – |
Disposals | (7.2) | (3.8) |
At 31 December | 145.8 | 18.3 |
2024 | 2023 | |||||
Non-current | Current | Total | Non-current | Current | Total | |
£m | £m | £m | £m | £m | £m | |
Trade and other payables at amortised cost: | ||||||
Settlement accounts | – | 155.8 | 155.8 | – | 128.2 | 128.2 |
Trade creditors | – | 21.8 | 21.8 | – | 15.7 | 15.7 |
Social security | 22.0 | 81.0 | 103.0 | 25.6 | 81.5 | 107.1 |
Accruals and deferred income | 34.0 | 500.0 | 534.0 | 36.7 | 514.7 | 551.4 |
Other payables | 2.0 | 25.2 | 27.2 | 3.6 | 69.7 | 73.3 |
58.0 | 783.8 | 841.8 | 65.9 | 809.8 | 875.7 | |
Trade and other payables at fair value: | ||||||
Deferred cash awards | 48.5 | 170.2 | 218.7 | 87.8 | 121.8 | 209.6 |
Bullion deposits by customers | – | 2.5 | 2.5 | – | 2.2 | 2.2 |
48.5 | 172.7 | 221.2 | 87.8 | 124.0 | 211.8 | |
Total trade and other payables | 106.5 | 956.5 | 1,063.0 | 153.7 | 933.8 | 1,087.5 |
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117 Schroders Annual Report and Accounts 2024
16 Trade and other payables continued
2024 | 2023 | |
£m | £m | |
Less than 1 year 1 | 956.5 | 933.8 |
1 – 2 years | 57.0 | 45.1 |
2 – 5 years | 47.1 | 104.9 |
More than 5 years | 2.4 | 3.7 |
106.5 | 153.7 | |
1,063.0 | 1,087.5 |
| Legal, | |||
| regulatory | |||
| Dilapidations | and other | Total | |
£m | £m | £m | |
At 1 January 2024 | 18.9 | 4.1 | 23.0 |
Utilised | (1.6) | (1.6) | (3.2) |
Charged | 0.5 | 39.5 | 40.0 |
Released | – | (0.6) | (0.6) |
Additions | 1.1 | – | 1.1 |
At 31 December 2024 | 18.9 | 41.4 | 60.3 |
| Legal, | |||
| regulatory | |||
| Dilapidations | and other | Total | |
£m | £m | £m | |
Current – 2024 | 0.2 | 7.2 | 7.4 |
Non-current – 2024 | 18.7 | 34.2 | 52.9 |
18.9 | 41.4 | 60.3 | |
Current – 2023 | 1.2 | 1.0 | 2.2 |
Non-current – 2023 | 17.7 | 3.1 | 20.8 |
18.9 | 4.1 | 23.0 |
Consolidated financial statements continued
Notes to the accounts continued
118 Schroders Annual Report and Accounts 2024
17 Provisions and contingent liabilities continued
2024 | 2023 | |
£m | £m | |
Less than 1 year | 7.4 | 2.2 |
1 – 2 years | 19.9 | 5.4 |
2 – 5 years | 14.5 | 0.8 |
More than 5 years | 18.5 | 14.6 |
52.9 | 20.8 | |
60.3 | 23.0 |
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119 Schroders Annual Report and Accounts 2024
18 Derivative contracts continued
(a) The Group’s use of derivatives continued
2024 | 2023 | |||
Assets | Liabilities | Assets | Liabilities | |
£m | £m | £m | £m | |
Equity contracts | 1.2 | (0.5) | 0.1 | (3.8) |
Forward foreign exchange contracts | 6.8 | (11.0) | 14.9 | (8.3) |
8.0 | (11.5) | 15.0 | (12.1) |
2024 | 2023 | |||||
Assets | Liabilities | Assets | Liabilities | |||
£m | £m | £m | £m | |||
| 1 | 2 | |||||
| Net-settled derivative contracts | maturing/repricing | in: | ||||
Less than 1 year | 1.2 | (0.5) | 0.1 | (3.8) | ||
| 3 | 2 | 1.2 | (0.5) | 0.1 | (3.8) | |
| Gross-settled derivatives | maturing/repricing | in less than 1 year: | ||||
Gross inflows | 645.6 | 529.6 | 1,086.3 | 530.8 | ||
Gross outflows | (638.6) | (540.8) | (1,071.7) | (538.8) | ||
Difference between future contractual cash flows and fair value | (0.2) | 0.2 | 0.3 | (0.3) | ||
6.8 | (11.0) | 14.9 | (8.3) | |||
8.0 | (11.5) | 15.0 | (12.1) |
Consolidated financial statements continued
Notes to the accounts continued
120 Schroders Annual Report and Accounts 2024
| The Group’s overall capital requirement comprises a Total Capital Requirement (TCR), which was £1,085 million as at 31 December 2024 | |
| (2023: £1,059 million), and a capital requirement in respect of regulatory buffers and our insurance companies, which was £392 million as |
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121 Schroders Annual Report and Accounts 2024
19 Financial instrument risk management continued
(a) Capital continued
2024 | ||||||
| Financial assets | Financial | |||||
| at fair value | Liabilities to | instruments | ||||
| Financial | through other | purchase | at fair value | |||
| instruments at | comprehensive | subsidiary | through | Non-financial | ||
| amortised cost | income | shares | profit or loss 1 | instruments | Total | |
£m | £m | £m | £m | £m | £m | |
Assets | ||||||
Cash and cash equivalents | 3,703.8 | – | – | 362.6 | – | 4,066.4 |
Trade and other receivables | 912.6 | – | – | – | 113.8 | 1,026.4 |
Financial assets: | ||||||
Loans and advances to banks | 286.5 | – | – | – | – | 286.5 |
Loans and advances to clients | 390.0 | – | – | – | – | 390.0 |
Debt securities | 311.8 | 1,115.2 | – | 53.9 | – | 1,480.9 |
Pooled investment vehicles | – | – | – | 889.2 | – | 889.2 |
Equities | – | – | – | 173.3 | – | 173.3 |
Derivatives | – | – | – | 8.0 | – | 8.0 |
Associates and joint ventures | – | – | – | – | 550.0 | 550.0 |
Property, plant and equipment | – | – | – | – | 488.6 | 488.6 |
Goodwill and intangible assets | – | – | – | – | 1,840.5 | 1,840.5 |
Deferred tax | – | – | – | – | 160.4 | 160.4 |
Retirement benefit scheme surplus | – | – | – | – | 131.0 | 131.0 |
Assets backing unit-linked liabilities | 198.7 | – | – | 9,260.0 | – | 9,458.7 |
Total assets | 5,803.4 | 1,115.2 | – | 10,747.0 | 3,284.3 | 20,949.9 |
Liabilities | ||||||
Trade and other payables | 738.8 | – | – | 218.7 | 105.5 | 1,063.0 |
Financial liabilities | 4,755.1 | – | 140.7 | 217.8 | – | 5,113.6 |
Current tax | – | – | – | – | 29.0 | 29.0 |
Issued debt | 256.0 | – | – | – | – | 256.0 |
Lease liabilities | 345.7 | – | – | – | – | 345.7 |
Provisions | 60.3 | – | – | – | – | 60.3 |
Deferred tax | – | – | – | – | 120.3 | 120.3 |
Retirement benefit scheme deficits | – | – | – | – | 7.9 | 7.9 |
Unit-linked liabilities | 15.0 | – | – | 9,443.7 | – | 9,458.7 |
Total liabilities | 6,170.9 | – | 140.7 | 9,880.2 | 262.7 | 16,454.5 |
Capital | 4,495.4 |
Consolidated financial statements continued
Notes to the accounts continued
122 Schroders Annual Report and Accounts 2024
19 Financial instrument risk management continued
(a) Capital continued
2023 | ||||||
| Financial assets | Financial | |||||
| at fair value | Liabilities to | instruments | ||||
| Financial | through other | purchase | at fair value | |||
| instruments at | comprehensive | subsidiary | through | Non-financial | ||
| amortised cost | income | shares | profit or loss 1 | instruments | Total | |
£m | £m | £m | £m | £m | £m | |
Assets | ||||||
Cash and cash equivalents | 3,354.4 | – | – | 295.5 | – | 3,649.9 |
Trade and other receivables | 817.5 | – | – | – | 102.9 | 920.4 |
Financial assets: | ||||||
Loans and advances to banks | 397.9 | – | – | – | – | 397.9 |
Loans and advances to clients | 446.0 | – | – | – | – | 446.0 |
Debt securities | 356.7 | 711.4 | – | 78.3 | – | 1,146.4 |
Pooled investment vehicles | – | – | – | 631.1 | – | 631.1 |
Equities | – | – | – | 190.7 | – | 190.7 |
Derivatives | – | – | – | 15.0 | – | 15.0 |
Associates and joint ventures | – | – | – | – | 531.7 | 531.7 |
Property, plant and equipment | – | – | – | – | 464.3 | 464.3 |
Goodwill and intangible assets | – | – | – | – | 1,885.2 | 1,885.2 |
Deferred tax | – | – | – | – | 203.9 | 203.9 |
Retirement benefit scheme surplus | – | – | – | – | 138.3 | 138.3 |
Assets backing unit-linked liabilities | 501.5 | – | – | 9,506.6 | – | 10,008.1 |
Total assets | 5,874.0 | 711.4 | – | 10,717.2 | 3,326.3 | 20,628.9 |
Liabilities | ||||||
Trade and other payables | 770.1 | – | – | 209.6 | 107.8 | 1,087.5 |
Financial liabilities | 4,199.4 | – | 177.6 | 201.2 | – | 4,578.2 |
Current tax | – | – | – | – | 12.6 | 12.6 |
Lease liabilities | 318.7 | – | – | – | – | 318.7 |
Provisions | 23.0 | – | – | – | – | 23.0 |
Deferred tax | – | – | – | – | 128.3 | 128.3 |
Retirement benefit scheme deficits | – | – | – | – | 8.8 | 8.8 |
Unit-linked liabilities | 14.9 | – | – | 9,993.2 | – | 10,008.1 |
Total liabilities | 5,326.1 | – | 177.6 | 10,404.0 | 257.5 | 16,165.2 |
Capital | 4,463.7 |
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123 Schroders Annual Report and Accounts 2024
19 Financial instrument risk management continued
Cash and cash equivalents | Loans and advances to banks | Debt securities | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
£m | £m | £m | £m | £m | £m | |
Credit rating: | ||||||
AAA | 191.0 | 292.3 | – | – | 212.4 | 158.2 |
AA+ | – | – | – | 9.3 | 127.6 | 122.1 |
AA | 84.5 | 178.6 | – | 18.6 | 10.3 | 10.6 |
AA- | 2,220.2 | 2,136.8 | 66.6 | 49.7 | 819.6 | 443.9 |
A+ | 1,264.3 | 622.9 | 41.8 | 239.3 | 188.3 | 255.9 |
A | 175.1 | 164.1 | 137.1 | 3.7 | 32.9 | 39.0 |
A- | 117.8 | 250.1 | 41.0 | 77.3 | 25.1 | 38.5 |
BBB+ and lower | 8.4 | 4.1 | – | – | 22.3 | 35.3 |
Not rated | 5.1 | 1.0 | – | – | 42.4 | 42.9 |
4,066.4 | 3,649.9 | 286.5 | 397.9 | 1,480.9 | 1,146.4 |
Consolidated financial statements continued
Notes to the accounts continued
124 Schroders Annual Report and Accounts 2024
19 Financial instrument risk management continued
(b) Credit risk, liquidity risk and market risk continued
Strategic report
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125 Schroders Annual Report and Accounts 2024
19 Financial instrument risk management continued
(b) Credit risk, liquidity risk and market risk continued
(ii) Liquidity risk continued
| 2024 | |||||
| More than 5 | |||||
Less than 1 year | 1-2 years | 2-5 years | years | Total | |
£m | £m | £m | £m | £m | |
Assets | |||||
Cash and cash equivalents | 3,246.4 | – | – | – | 3,246.4 |
Loans and advances to banks | 166.3 | – | – | – | 166.3 |
Loans and advances to clients | 172.2 | 67.6 | 148.9 | – | 388.7 |
Debt securities | 1,117.5 | 275.5 | – | – | 1,393.0 |
Derivative contracts | 4.1 | – | – | – | 4.1 |
4,706.5 | 343.1 | 148.9 | – | 5,198.5 | |
| Liabilities | |||||
Client accounts | 4,724.8 | – | – | – | 4,724.8 |
Deposits by banks | 30.1 | – | – | – | 30.1 |
Derivative contracts | 3.8 | – | – | – | 3.8 |
4,758.7 | – | – | – | 4,758.7 | |
Cumulative gap | (52.2) | 290.9 | 439.8 | 439.8 | 439.8 |
| 2023 | |||||
| More than 5 | |||||
Less than 1 year | 1-2 years | 2-5 years | years | Total | |
£m | £m | £m | £m | £m | |
Assets | |||||
Cash and cash equivalents | 2,811.3 | – | – | – | 2,811.3 |
Loans and advances to banks | 391.0 | – | – | – | 391.0 |
Loans and advances to clients | 168.4 | 70.9 | 205.1 | 0.3 | 444.7 |
Debt securities | 719.0 | 312.1 | – | – | 1,031.1 |
Derivative contracts | 5.7 | – | – | – | 5.7 |
4,095.4 | 383.0 | 205.1 | 0.3 | 4,683.8 | |
| Liabilities | |||||
Client accounts | 4,135.0 | – | – | – | 4,135.0 |
Deposits by banks | 64.4 | – | – | – | 64.4 |
Derivative contracts | 5.6 | – | – | – | 5.6 |
4,205.0 | – | – | – | 4,205.0 | |
Cumulative gap | (109.6) | 273.4 | 478.5 | 478.8 | 478.8 |
Consolidated financial statements continued
Notes to the accounts continued
126 Schroders Annual Report and Accounts 2024
19 Financial instrument risk management continued
(b) Credit risk, liquidity risk and market risk continued
(iii) Market risk continued
Pricing risk continued
2024 | 2023 | ||||
| A reasonable change | A reasonable change | ||||
| in the variable within | Increase/(decrease) | in the variable within | Increase/(decrease) | ||
Variable 1 | the next calendar year | in post-tax profit | the next calendar year | in post-tax profit | |
% | £m | % | £m | ||
Interest rates 2 | -increase | 0.25 | 1 | 0.25 | 2 |
-decrease | (0.5) | (3) | (1.5) | (14) | |
US dollar against sterling | -strengthen | 10 | 2 | 10 | 3 |
-weaken | (10) | (1) | (10) | (2) | |
Euro against sterling | -strengthen | 10 | 2 | 8 | 1 |
-weaken | (10) | (2) | (8) | (1) | |
US dollar against Euro | -strengthen | 10 | 4 | 10 | 3 |
-weaken | (10) | (3) | (10) | (3) | |
FTSE All-Share Index 3 | -increase | 20 | 34 | 20 | 46 |
-decrease | (20) | (34) | (20) | (46) |
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127 Schroders Annual Report and Accounts 2024
| Number of | Total ordinary | Share | |
| shares | shares | premium | |
Millions | £m | £m | |
At 1 January 2024 | 1,612.1 | 322.4 | 84.3 |
At 31 December 2024 | 1,612.1 | 322.4 | 84.3 |
| Number of | Total ordinary | Share | |
| shares | shares | premium | |
Millions | £m | £m | |
At 1 January 2023 | 1,612.1 | 322.4 | 84.3 |
31 December 2023 | 1,612.1 | 322.4 | 84.3 |
2024 | 2023 | |
£m | £m | |
At 1 January | (172.1) | (185.1) |
Own shares purchased | (59.8) | (66.6) |
Awards vested | 72.0 | 79.6 |
At 31 December | (159.9) | (172.1) |
2024 | 2023 | |||||
| Number of | Number of | Number of | Number of | |||
| vested | unvested | vested | unvested | |||
| shares | shares | Total | shares | shares | Total | |
Millions | Millions | Millions | Millions | Millions | Millions | |
Total ordinary shares | 22.0 | 37.5 | 59.5 | 23.0 | 35.8 | 58.8 |
2024 | 2023 | |||||
| Vested | Unvested | Vested | Unvested | |||
| shares | shares | Total | shares | shares | Total | |
£m | £m | £m | £m | £m | £m | |
Total ordinary shares | ||||||
Cost | 103.1 | 159.9 | 263.0 | 106.8 | 172.1 | 278.9 |
Fair value | 71.4 | 121.2 | 192.6 | 98.9 | 153.7 | 252.6 |
Consolidated financial statements continued
Notes to the accounts continued
128 Schroders Annual Report and Accounts 2024
2024 | 2023 | |
£m | £m | |
Profit before tax | 558.1 | 487.6 |
| Adjustments for income statement non-cash movements: | ||
Depreciation of property, plant and equipment and amortisation of intangible assets | 191.1 | 212.2 |
Net gain on financial instruments | (18.1) | (19.1) |
Share-based payments | 30.4 | 62.8 |
Net charge/(release) for provisions | 38.8 | (2.0) |
Other non-cash movements 1 | (39.0) | (26.8) |
203.2 | 227.1 | |
| Adjustments for which the cash effects are investing or financing activities: | ||
Interest income | (31.8) | (23.6) |
Interest expense on lease liabilities | 9.7 | 9.3 |
Share of profit of associates and joint ventures after amortisation | (42.1) | (40.5) |
(64.2) | (54.8) | |
| Adjustments for statement of financial position movements: | ||
Decrease/(increase) in loans and advances within Wealth Management | 271.3 | (100.8) |
Increase in trade and other receivables | (88.0) | (40.7) |
Increase/(decrease) in deposits and client accounts within Wealth Management | 576.3 | (413.0) |
(Decrease)/increase in trade and other payables, other financial liabilities and provisions | (26.4) | 27.9 |
733.2 | (526.6) | |
| Adjustments for Life Company and consolidated pooled investment vehicles movements: | ||
Net decrease/(increase) in financial assets backing unit-linked liabilities | 244.6 | (105.9) |
Net decrease in unit-linked liabilities | (549.4) | (46.0) |
Net increase/(decrease) in cash within consolidated pooled investment vehicles | 6.7 | (24.8) |
(298.1) | (176.7) | |
Tax paid | (84.0) | (194.7) |
Net cash from/(used in) operating activities | 1,048.2 | (238.1) |
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129 Schroders Annual Report and Accounts 2024
2024 | |||||
| Later than 1 year | |||||
| No later than | and no later than | Later than | |||
| 1 year | 5 | years | 5 years | Total | |
£m | £m | £m | £m | ||
Undrawn loan facilities | 9.4 | 29.9 | – | 39.3 | |
Investment call commitment | 70.5 | 22.8 | 2.4 | 95.7 | |
Commitments for property, plant and equipment and leases | 1.0 | 4.2 | 6.2 | 11.4 | |
Total commitments | 80.9 | 56.9 | 8.6 | 146.4 | |
Operating leases receivable as lessor | (0.4) | (0.1) | – | (0.5) | |
Net commitments payable | 80.5 | 56.8 | 8.6 | 145.9 | |
2023 | |||||
| Later than 1 year | |||||
| No later than | and no later than | Later than | |||
| 1 year | 5 | years | 5 years | Total | |
£m | £m | £m | £m | ||
Undrawn loan facilities | 9.0 | 22.5 | – | 31.5 | |
Investment call commitment | 42.4 | 19.8 | 1.7 | 63.9 | |
Commitments for property, plant and equipment and leases | 3.4 | 20.1 | 41.6 | 65.1 | |
Total commitments | 54.8 | 62.4 | 43.3 | 160.5 | |
Operating leases receivable as lessor | (1.4) | (2.1) | – | (3.5) | |
Net commitments payable | 53.4 | 60.3 | 43.3 | 157.0 | |
Consolidated financial statements continued
Notes to the accounts continued
130 Schroders Annual Report and Accounts 2024
24 Retirement benefit obligations continued
The income statement charge for retirement benefit costs is as follows:
2024 | 2023 | |
£m | £m | |
Pension costs – defined contribution plans | 77.8 | 77.2 |
Pension credit – defined benefit plans | (2.9) | (5.2) |
Other post-employment benefits | 0.2 | 0.1 |
75.1 | 72.1 |
(a) Profile of the Scheme
The Scheme is administered by a trustee company, Schroder Pension Trustee Limited (the Trustee). The board of the Trustee comprises
an independent chairman, three directors appointed by the employer and two directors elected by the Scheme members. The Trustee is
required by law to act in the interest of all relevant beneficiaries and is responsible for setting the investment strategy and for the day-to-
day administration of the benefits. The Trustee’s investment committee comprises five of the Trustee directors and two representatives
of the Group. This committee, which reports to the Trustee board, is responsible for making investment strategy recommendations to
the board of the Trustee and for monitoring the performance of the investment manager.
Under the Scheme, employees are entitled to annual pensions on retirement based on a specified percentage of their final pensionable
salary or, in the case of active members at 30 April 2011 (the date the DB section of the Scheme closed for future accrual), actual
pensionable salaries at that date, for each year of service. These benefits are adjusted for the effects of inflation, subject to a cap of 2.5%
for pensions accrued after 12 August 2007 and 5.0% for pensions accrued before that date.
As at 31 December 2024, there were no active members in the DB section (2023: nil) and 2,528 active members in the DC section (2023:
2,605). The weighted average duration of the Scheme’s DB obligation is 11 years (2023: 13 years). The Group expects that the plan
liabilities will settle gradually over time until all members have left the plan. On termination of the Scheme, any assets that remain after
the Trustee has settled the Scheme’s liabilities will be returned to the Group.
Membership details of the DB section of the Scheme as at 31 December are as follows:
2024 | 2023 | |
Number of deferred members | 884 | 977 |
Total deferred pensions (at date of leaving Scheme) | £5.9m per annum | £6.8m per annum |
Average age (deferred) | 57 | 56 |
Number of pensioners | 1,137 | 1,064 |
Average age (pensioners) | 71 | 71 |
Total pensions in payment | £26.0m per annum | £24.2m per annum |
(b) Funding requirements
The last completed triennial valuation of the Scheme was carried out as at 31 December 2023. The funding level at that date was 115%
on the technical provisions basis and no contribution to the Scheme was required. The next triennial valuation is due as at 31 December
2026 and will be performed in 2027.
(c) Risks of the Scheme
The Company and the Trustee have agreed a long-term strategy for reducing investment risk as and when appropriate. This includes
an asset-liability matching policy that aims to reduce the volatility of the funding level of the Scheme by investing in assets that perform
in line with the liabilities of the Scheme.
The most significant risks to which the Scheme exposes the Group are:
Asset volatility
The liabilities are calculated using a discount rate set with reference to corporate bond yields. If assets underperform this yield, this will
reduce the surplus or may create a deficit. The Group manages this risk through a diversified investment strategy, with 64% (2023: 67%)
of Scheme assets held in a liability matching portfolio and the remainder split across semi-liquid credit, liquid growth and credit, and
illiquid growth portfolios. This asset mix is designed to provide returns that match or exceed the unwinding of the discount rate in the
long term, but that can create volatility and risk in the short term. The allocation to growth assets is monitored to ensure it remains
appropriate given the Scheme’s long-term objectives.
Credit risk
The assets of the Scheme include liability driven investments (LDI) and other fixed income instruments that expose the Group to credit
risk. A significant amount of this exposure is to the UK Government as a result of holding gilts and bonds guaranteed by the UK
Government. Other instruments held include derivatives, which are collateralised daily to cover unrealised gains or losses. The minimum
rating for any derivatives counterparty is BBB.
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131 Schroders Annual Report and Accounts 2024
24 Retirement benefit obligations continued
(c) Risks of the Scheme continued
2024 | 2023 | |
% | % | |
Discount rate | 5.4 | 4.5 |
RPI inflation rate | 3.1 | 3.0 |
CPI inflation rate | 2.5 | 2.3 |
Future pension increases (for benefits earned before 13 August 2007) | 2.9 | 2.9 |
Future pension increases (for benefits earned after 13 August 2007) | 2.0 | 2.0 |
Average number of years a current pensioner is expected to live beyond age 60: | Years | Years |
Men | 27 | 27 |
Women | 29 | 29 |
Average number of years future pensioners currently aged 45 are expected to live beyond age 60: | Years | Years |
Men | 28 | 28 |
Women | 30 | 30 |
Consolidated financial statements continued
Notes to the accounts continued
132 Schroders Annual Report and Accounts 2024
24 Retirement benefit obligations continued
(d) Reporting at 31 December continued
The amounts recognised in the income statement are:
2024 | 2023 | |
£m | £m | |
Interest income on Scheme assets | (31.4) | (33.2) |
Interest cost on Scheme liabilities | 25.2 | 26.7 |
Net interest income recognised in the income statement in respect of the Scheme | (6.2) | (6.5) |
Other charges in respect of defined benefit schemes | 3.3 | 1.3 |
Total defined benefit schemes income statement credit | (2.9) | (5.2) |
The amounts recognised in the statement of comprehensive income are:
2024 | 2023 | |
£m | £m | |
Losses/(gains) on Scheme assets in excess of that recognised in interest income | 64.1 | (2.9) |
Actuarial gains due to change in demographic assumptions | (6.9) | (11.1) |
Actuarial (gains)/losses due to change in financial assumptions | (58.6) | 12.7 |
Actuarial losses due to experience | 9.1 | 4.1 |
Total other comprehensive loss in respect of the Scheme | 7.7 | 2.8 |
Other comprehensive (gain)/loss in respect of other defined benefit schemes | (0.3) | 1.4 |
Total other comprehensive loss in respect of defined benefit schemes | 7.4 | 4.2 |
The sensitivity of the Scheme pension liabilities to changes in assumptions are:
2024 | 2023 | ||||
| Estimated | Estimated | Estimated | Estimated | ||
| (increase)/ | (increase)/ | (increase)/ | (increase)/ | ||
| decrease in | decrease in | decrease in | decrease in | ||
| pension | pension | pension | pension | ||
| liabilities | liabilities | liabilities | liabilities | ||
Assumption | Assumption change | £m | % | £m | % |
Discount rate | Increase by 0.5% per annum | 26.9 | 5.2 | 33.7 | 5.9 |
Discount rate | Decrease by 0.5% per annum | (30.7) | (6.0) | (38.5) | (6.7) |
Expected rate of pension increases | Increase by 0.5% per annum | (20.2) | (3.9) | (25.8) | (4.5) |
Expected rate of pension increases | Decrease by 0.5% per annum | 19.9 | 3.9 | 25.4 | 4.4 |
Life expectancy | Increase by one year | (17.0) | (3.3) | (21.5) | (3.7) |
Life expectancy | Decrease by one year | 17.4 | 3.4 | 21.2 | 3.7 |
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133 Schroders Annual Report and Accounts 2024
24 Retirement benefit obligations continued
(d) Reporting at 31 December continued
Movements in respect of the assets and liabilities of the Scheme are:
2024 | 2023 | |
£m | £m | |
At 1 January | 713.4 | 706.5 |
Interest income | 31.4 | 33.2 |
Remeasurement of assets | (64.1) | 2.9 |
Benefits paid | (30.2) | (27.5) |
Contribution by employer 1 | (3.8) | – |
Administrative expenses | (2.0) | (1.7) |
Fair value of plan assets | 644.7 | 713.4 |
At 1 January | (575.1) | (570.2) |
Interest cost | (25.2) | (26.7) |
Actuarial gains due to change in demographic assumptions | 6.9 | 11.1 |
Actuarial gains/(losses) due to change in financial assumptions | 58.6 | (12.7) |
Actuarial losses due to experience | (9.1) | (4.1) |
Benefits paid | 30.2 | 27.5 |
Present value of funded obligations | (513.7) | (575.1) |
Net assets | 131.0 | 138.3 |
1. In July 2024, the trustees of the Scheme agreed that certain employer contributions due to the Defined Contribution section could be met by assets allocated to the
Defined Benefit section. The arrangement is subject to a monthly cap, conditional on certain funding levels being maintained and will be monitored by the trustees.
On 16 June 2023, the High Court issued a ruling in respect of Virgin Media v NTL Pension Trustees II Limited (and others), which has the
potential to affect the Scheme’s liabilities. As the assessment of any potential impact is ongoing, with the expectation of further legal
cases in early 2025 and the possibility of government intervention, no adjustment has been made to the Scheme’s liabilities as at
31 December 2024.
The Group has not materially changed the basis of any of the principal financial assumptions underlying the calculation of the Scheme’s
net financial position during 2024, although such assumptions have been amended where applicable to reflect current market
conditions and expectations.
The fair values of the Scheme’s plan assets at the year end are:
2024 | 2023 | |||
| Of which not | Of which not | |||
| quoted in an | quoted in an | |||
| Value | active market | Value | active market | |
£m | £m | £m | £m | |
Liability matching investments | 368.8 | – | 436.6 | – |
Portfolio funds | 256.2 | 93.1 | 242.2 | 93.2 |
Exchange-traded futures and over-the-counter derivatives | 7.1 | – | 9.3 | – |
Cash | 12.6 | – | 25.3 | – |
644.7 | 93.1 | 713.4 | 93.2 |
Consolidated financial statements continued
Notes to the accounts continued
134 Schroders Annual Report and Accounts 2024
2024 | 2023 | |
| Number of | Number of | |
| ordinary shares | ordinary shares | |
| Millions | Millions | |
Rights outstanding at 1 January | 45.4 | 41.7 |
Granted | 9.6 | 13.7 |
Forfeited | (1.1) | (0.6) |
Exercised | (11.2) | (9.4) |
Rights outstanding at 31 December | 42.7 | 45.4 |
Vested | 14.5 | 12.6 |
Unvested | 28.2 | 32.8 |
£m | |
2025 | 10.5 |
2026 | 4.0 |
2027 | 1.2 |
15.7 |
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135 Schroders Annual Report and Accounts 2024
25 Share-based payments continued
2024 | 2023 | |
| Number of | Number of | |
| ordinary shares | ordinary shares | |
| Millions | Millions | |
Rights outstanding at 1 January | 7.9 | 12.3 |
Granted | 0.4 | 0.5 |
Exercised | (2.6) | (4.9) |
Rights outstanding at 31 December | 5.7 | 7.9 |
Vested | 5.7 | 7.8 |
Unvested | – | 0.1 |
2024 | 2023 | |
| Number of | Number of | |
| ordinary shares | ordinary shares | |
| Millions | Millions | |
Rights outstanding at 1 January | 4.2 | 5.6 |
Granted | 0.3 | – |
Forfeited | (0.1) | – |
Exercised | (1.6) | (1.4) |
Rights outstanding at 31 December | 2.8 | 4.2 |
Vested | 1.8 | 2.5 |
Unvested | 1.0 | 1.7 |
£m | |
2025 | 0.6 |
0.6 |
Consolidated financial statements continued
Notes to the accounts continued
136 Schroders Annual Report and Accounts 2024
| 25 Share-based payments continued |
2024 | 2023 | |
| Number of | Number of | |
| ordinary shares | ordinary shares | |
| Millions | Millions | |
Rights outstanding at 1 January | 0.5 | 0.5 |
Granted | 0.3 | 0.2 |
Forfeited | (0.1) | (0.1) |
Exercised | (0.1) | (0.1) |
Rights outstanding at 31 December | 0.6 | 0.5 |
Vested | – | 0.1 |
Unvested | 0.6 | 0.4 |
£m | |
2025 | 0.2 |
2026 | 0.2 |
2027 | 0.1 |
0.5 |
Strategic report
Governance
Financial statements
Shareholder and
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137 Schroders Annual Report and Accounts 2024
2024 | 2023 | ||
Type of remuneration | Typical composition of this type of benefit | £m | £m |
Short-term employee benefits | Salary and upfront bonus | 21.4 | 23.2 |
Share-based payments | Deferred share awards | 8.3 | 13.8 |
Other long-term benefits | Deferred cash awards | 13.3 | 13.8 |
Termination benefits | Termination benefits | 0.3 | 0.5 |
Post-employment benefits | Pension plans | 0.3 | 0.2 |
43.6 | 51.5 |
Consolidated financial statements continued
Notes to the accounts continued
138 Schroders Annual Report and Accounts 2024
2024 | ||||
| AUM within | AUM within | |||
| AUM outside | consolidated | unconsolidated | ||
| of structured | structured | structured | ||
| entities | entities | entities | Total | |
£bn | £bn | £bn | £bn | |
Asset Management | 285.9 | 5.4 | 243.7 | 535.0 |
Wealth Management | 111.6 | – | 15.2 | 126.8 |
397.5 | 5.4 | 258.9 | 661.8 |
2023 | ||||
| AUM within | AUM within | |||
| AUM outside | consolidated | unconsolidated | ||
| of structured | structured | structured | ||
| entities | entities | entities | Total | |
£bn | £bn | £bn | £bn | |
Asset Management | 295.7 | 5.8 | 230.7 | 532.2 |
Wealth Management | 98.1 | – | 12.1 | 110.2 |
393.8 | 5.8 | 242.8 | 642.4 |
Strategic report
Governance
Financial statements
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139 Schroders Annual Report and Accounts 2024
27 Interests in structured entities continued
(a) Interests arising from managing assets continued
2024 | 2023 | |
£m | £m | |
Fee debtors from structured entities | 36.0 | 33.5 |
Accrued income from structured entities | 317.4 | 306.0 |
Total exposure due to investment management activities | 353.4 | 339.5 |
2024 | 2023 | |
£m | £m | |
Cash and cash equivalents | 362.6 | 295.5 |
Financial assets | 818.5 | 577.7 |
Total exposure due to the Group’s investments | 1,181.1 | 873.2 |
Consolidated financial statements continued
Notes to the accounts continued
140 Schroders Annual Report and Accounts 2024
2024 | |
£m | |
| Net assets acquired: | |
Cash | 7.6 |
Trade and other receivables | 4.0 |
Trade and other payables | (7.4) |
Tangible net assets | 4.2 |
Goodwill | 30.7 |
Intangible assets arising on acquisition | 22.0 |
Deferred tax arising on acquisition | (5.5) |
Non-controlling interest | (1.5) |
Total | 49.9 |
| Satisfied by: | |
Cash | 33.3 |
Contingent/deferred consideration | 3.9 |
Fair value of the Group’s pre-existing interest | 12.7 |
Total | 49.9 |
Strategic report
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Financial statements
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141 Schroders Annual Report and Accounts 2024
Presentation of the financial statements
(a) Basis of preparation
The consolidated financial information presented within these
financial statements has been prepared on the going concern
basis. In making an assessment on going concern, the Directors
have considered a wide range of information relating to present
and future conditions, including future capital requirements,
prediction of profitability and cash flows. These assessments
showed the Group has sufficient capital and liquidity to support
future business requirements and adequate resources to continue
as a going concern for at least 12 months following approval of
the financial statements.
The consolidated statement of financial position is shown in order
of liquidity. The classification between current and non-current is
set out in the notes. The Group’s Life Company business is
reported separately. If the assets and liabilities of the Group’s Life
Company business were to be included within existing captions on
the consolidated statement of financial position, the effect would
be to gross up a number of individual line items to a material
extent. By not doing this, the Group can provide a more
transparent presentation that shows the assets of the Life
Company and the related unit-linked liabilities as separate and
distinct from the remainder of the consolidated statement of
financial position.
(b) Future accounting developments
The Group did not implement the requirements of any standards
or interpretations that were in issue but were not required to be
adopted by the Group at the year-end date. No standards or
interpretations have been issued that are expected to have
a material impact on the consolidated financial statements.
Consolidated financial statements continued
Notes to the accounts continued
142 Schroders Annual Report and Accounts 2024
Presentation of the financial statements
continued
(f) Estimates and judgements
The preparation of the consolidated financial statements in
conformity with UK-adopted international accounting standards
requires the use of certain significant accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Group’s accounting policies and in determining
whether certain assets and liabilities should be recorded or an
impairment recognised. Any areas involving a higher degree of
judgement or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements,
are disclosed within the notes and identified under the title
estimates and judgements. Estimates and judgements used in
preparing the financial statements are periodically evaluated and
are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable.
The resulting accounting estimates may not equal the related
actual results.
In applying IFRS 10 Consolidated Financial Statements, the Group
uses judgement to determine whether its interests in funds (and
other similar entities), including those held by the Life Company,
constitute controlling interests. The Group can have interests in
funds in the form of proprietary investments or through its role as
fund manager. The Group usually deems control to exist where
the Group is the fund manager and its share of total variable
returns exceeds 40% (including from ownership interests and
management and performance-based revenues). The Group
usually deems that control does not exist where the Group’s share
of total variable returns is below 30%. The Group reviews all facts
and circumstances to establish whether the Group has control.
This includes consideration of the purpose and design of the
investee as well as the rights held by other parties to remove the
Group as the fund manager.
The other estimates and judgements that could have a significant
effect on the carrying amounts of assets and liabilities are set out
in the following notes, including sensitivities where relevant or
material:
Note 2 | Net operating revenue |
Note 4 | Tax expense |
Note 7 | Trade and other receivables |
Note 8 | Financial assets and liabilities |
Note 13 | Goodwill and intangible assets |
Note 15 | Unit-linked liabilities and assets backing unit-linked liabilities |
Note 17 | Provisions and contingent liabilities |
Note 24 | Retirement benefit obligations |
Note 28 | Business combinations |
Climate risks have been considered in the preparation of these
consolidated financial statements, principally through the
valuation of financial assets and impairment assessments.
Financial assets measured at fair value are principally valued using
traded prices or market observable inputs that incorporate
potential climate risks where appropriate. The valuation of some
financial instruments involves a greater level of judgement or
estimation. In these scenarios climate risks are incorporated where
relevant in the relevant assumptions, such as cash flow forecasts.
For financial assets carried at amortised cost, credit risk
assessments also include climate risk considerations.
Impairment assessments relating to goodwill and other intangible
assets depend on value in use and discounted cash flow models.
These valuations include climate risks in the relevant assumptions
where appropriate.
The Group’s net operating revenues are typically earned as an
agreed percentage of the value of AUM or based on the
performance of the underlying AUM. The potential impact of
climate change on the Group’s AUM and future net operating
revenue generation is considered in the principal risks and
uncertainties section of this Annual Report and Accounts.
These considerations did not have a material impact on the
financial reporting judgements and estimates in the current year.
This reflects the conclusion that climate change is not expected to
have a significant impact on the Group’s short-term cash flows
including those considered in the going concern and viability
assessments.
Strategic report
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143 Schroders Annual Report and Accounts 2024
Schroders plc – Statement of financial position
at 31December 2024
2024
2023
Notes
£m
£m
Assets
Trade and other receivables
31
1,702.5
1,426.9
Retirement benefit scheme surplus
24
131.0
138.3
Deferred tax
33
35.8
38.2
Investments in subsidiaries
37
3,092.6
3,092.6
Total assets
4,961.9
4,696.0
Liabilities
Trade and other payables
32
28.8
18.4
Issued debt
9
256.0
–
Deferred tax
33
32.8
34.6
Total liabilities
317.6
53.0
Net assets
4,644.3
4,643.0
Total equity
4,644.3
4,643.0
The financial statements were approved by the Board of Directors on 5March 2025 and signed on its behalf by:
Meagen Burnett
Director
Schroders plc financial statements
144 Schroders Annual Report and Accounts 2024
Schroders plc – Statement of changes in equity
for the year ended 31December 2024
Share
capital
Share
premium
Own
shares
Profit and
loss
reserve Total
Notes
£m
£m
£m
£m
£m
At 1 January 2024
322.4
84.3
(158.2)
4,394.5
4,643.0
Profit for the year
–
–
–
372.4
372.4
Items that will not to be reclassified to the income statement:
Net actuarial loss on defined benefit pension scheme
24
–
–
–
(7.7)
(7.7)
Tax on items taken directly to other comprehensive income
–
–
–
1.9
1.9
Other comprehensive income
–
–
–
(5.8)
(5.8)
Total comprehensive income for the year
–
–
–
366.6
366.6
Own shares purchased
35
–
–
(55.8)
–
(55.8)
Share-based payments
–
–
–
24.7
24.7
Dividends
6
–
–
–
(334.2)
(334.2)
Transactions with shareholders
–
–
(55.8)
(309.5)
(365.3)
Transfers
–
–
65.5
(65.5)
–
At 31 December 2024
322.4
84.3
(148.5)
4,386.1
4,644.3
Share
capital
Share
premium Own shares
Profit and
loss reserve Total
Notes
£m
£m
£m
£m
£m
At 1 January 2023
322.4
84.3
(167.8)
4,279.9
4,518.8
Profit for the year
–
–
–
464.9
464.9
Items that will not to be reclassified to the income statement:
Net actuarial loss on defined benefit pension scheme
24
–
–
–
(4.6)
(4.6)
Tax on items taken directly to other comprehensive income
–
–
–
1.1
1.1
Other comprehensive income
–
–
–
(3.5)
(3.5)
Total comprehensive income for the year
–
–
–
461.4
461.4
Own shares purchased
35
–
–
(60.8)
–
(60.8)
Share-based payments
–
–
–
56.5
56.5
Tax in respect of share schemes
–
–
–
0.1
0.1
Dividends
6
–
–
–
(333.0)
(333.0)
Transactions with shareholders
–
–
(60.8)
(276.4)
(337.2)
Transfers
–
–
70.4
(70.4)
–
At 31 December 2023
322.4
84.3
(158.2)
4,394.5
4,643.0
The distributable profits of Schroders plc are £2.8 billion (2023: £2.8 billion) and comprise retained profits of £3.0 billion (2023: £3.0
billion), included within the ‘Profit and loss reserve’, less amounts held within the own shares reserve.
The Group’s ability to pay dividends is however restricted by the need to hold regulatory capital and to maintain sufficient other
operating capital to support its ongoing business activities. In addition, the Group invests in its own funds as seed capital for the
purposes of supporting new investment strategies. An analysis of the Group’s capital position is provided in note 19.
Strategic report
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Financial statements
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145 Schroders Annual Report and Accounts 2024
Schroders plc – Cash flow statement
for the year ended 31December 2024
2024
2023
£m
£m
Profit before tax
380.2
467.9
Adjustments for:
(Increase)/decrease in trade and other receivables
(275.7)
34.2
Increase/(decrease) in trade and other payables
1.9
(152.1)
Net credit taken in respect of the Scheme
(0.4)
(6.6)
Share-based payments
24.7
56.5
Amounts paid in respect of Group tax relief
(2.0)
–
Net finance income adjustment
9.7
(1.1)
Net cash from operating activities
138.4
398.8
Cash flows from financing activities:
Loan received/(repaid) from/to a Group company
6.8
(5.0)
Acquisition of own shares
(55.8)
(60.8)
Dividends paid
(334.2)
(333.0)
Issuance of loan notes
248.8
–
Other
(4.0)
–
Net cash used in financing activities
(138.4)
(398.8)
Net decrease in cash and cash equivalents
–
–
Opening cash and cash equivalents
–
–
Net decrease in cash and cash equivalents
–
–
Closing cash and cash equivalents
–
–
Schroders plc financial statements continued
146 Schroders Annual Report and Accounts 2024
Schroders plc – Notes to the accounts
29 Significant accounting policies
The separate financial statements of Schroders plc (Company) have been prepared on a going concern basis in accordance with
UK-adopted international accounting standards and in conformity with the requirements of the Companies Act 2006. The Company
has taken advantage of the exemption in section 408 of the Act not to present its own income statement and statement of
comprehensive income.
The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are the same as
those set out in the Group’s financial statement note disclosures, where applicable. In addition, note 37 sets out the accounting
policy in respect ofinvestments in subsidiary undertakings.
30 Expenses and other disclosures
The auditor’s remuneration for audit services to the Company was £0.8 million (2023: £0.7 million). There was £0.2 million of other
assurance services in the year (2023: £0.2 million).
Key management personnel compensation
The remuneration policy is described in more detail at www.schroders.com/directors-remuneration-policy. The Company has no
employees. The key management personnel of the Company are defined as the Board of Directors. The remuneration of key
management personnel, borne by the Company, during the year wasasfollows:
Type of remuneration Typical composition of this type of benefit
2024
2023
£m
£m
Short-term employee benefits
Salary and upfront bonus
6.0
6.8
Share-based payments
Deferred share awards
4.9
4.6
Other long-term benefits
Deferred cash awards
2.4
1.9
13.3
13.3
31 Trade and other receivables
2024
2023
£m
£m
Amounts due from subsidiaries
1,701.9
1,426.2
Prepayments and accrued income
–
0.2
Other receivables
0.6
0.5
1,702.5
1,426.9
Trade and other receivables are initially recorded at fair value and subsequently at amortised cost. All trade and other receivables are
due within one year or repayable on demand.
Expected credit losses on trade and other receivables at 31December 2024 were £1.7 million (2023: £1.4 million). Note 19 sets out the
details of the expected credit loss calculation.
32 Trade and other payables
2024
2023
Non-current
Current
Total
Non-current
Current
Total
Trade and other payables amortised at cost:
£m
£m
£m
£m
£m
£m
Social security
1.5
1.0
2.5
1.3
1.0
2.3
Accruals
2.0
9.2
11.2
1.6
8.0
9.6
Amounts owed to subsidiaries
–
14.8
14.8
–
6.4
6.4
Other payables
–
0.3
0.3
–
0.1
0.1
3.5
25.3
28.8
2.9
15.5
18.4
The Company’s trade and other payables mature in the following time periods:
2024
2023
£m
£m
Less than one year
25.3
15.5
1 - 2 years
1.4
1.1
2 - 5 years
2.1
1.8
3.5
2.9
28.8
18.4
Amounts owed to subsidiaries include an interest-bearing loan of £8.9 million (2023: £2.1 million) that is repayable on demand.
Strategic report
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147 Schroders Annual Report and Accounts 2024
33 Deferred tax
2024
2023
Deferred
employees
awards Losses
Pension
surplus Total
Deferred
employees
awards Losses
Pension
surplus Total
£m
£m
£m
£m
£m
£m
£m
£m
At 1 January
(3.3)
(34.9)
34.6
(3.6)
(2.7)
(34.8)
34.1
(3.4)
Income statement (credit)/charge
(0.2)
2.6
0.1
2.5
(0.4)
(0.1)
1.5
1.0
Income statement credit due to
changes in tax rates
– – – – (0.2) – – (0.2)
Credit to statement of other
comprehensive income
– – (1.9) (1.9) – – (1.1) (1.1)
Charge to statement of other
comprehensive income due to
changes in tax rates
– – – – – – 0.1 0.1
At 31 December
(3.5)
(32.3)
32.8
(3.0)
(3.3)
(34.9)
34.6
(3.6)
A deferred asset of £3.4 million (2023: £3.6 million) relating to £13.6 million of realised capital losses has not been recognised as there is
insufficient evidence that there will be sufficient capital gains in the future against which the deferred tax asset could be utilised.
Net deferred tax at 31December comprises a deferred tax asset of £35.8 million (2023: £38.2 million) and a deferred tax liability of £32.8
million (2023: £34.6 million).
34 Financial instrument risk management
The Company’s policy is to have adequate capital for all activities undertaken in the normal course of business. In particular, it should
have adequate capital to maintain sufficient liquid funds to meet peak working capital requirements. Generally, surplus capital is loaned
back to theGroup’s investment capital management entities.
The risk management processes of the Company are aligned with those of the Group as a whole. Details of the Group’s risk
management processes are outlined in the ‘Risk management’ section within the Strategic report and the ‘Risk and internal controls’
section within theAuditand Risk Committee report as well as in note 19. The Company’s specific risk exposures are explained below.
Credit risk
The Company has exposure to credit risk from its normal activities where the risk is that a counterparty will be unable to pay in full amounts
when due. The Company’s counterparties are predominantly its subsidiaries and therefore there is minimal external credit risk exposure.
Liquidity risk
Liquidity risk is the risk that the Company cannot meet its obligations as they fall due or can only do so at a cost. The Group’s liquidity
policy is tomaintain sufficient liquidity to cover any cash flow funding, meet all obligations as they fall due and maintain solvency. The
Company holds sufficient liquid funds to cover its needs in the normal course of business. The Company can recall intercompany loans
to subsidiaries or utilise the Group loan facility to maintain sufficient liquidity.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in market
interest rates.
At 31December 2024, if interest rates had been 25 bps higher (2023: 50 bps lower) or 50 bps lower (2023: 150 bps lower) with all other
variables held constant, the Company estimates that profit after tax for the year would have increased by £3.1 million (2023: decreased
by £5.2 million) ordecreased by £6.2 million (2023: decreased by £15.6 million) respectively. These changes are mainly as a result of net
interest income on the Company’s interest-bearing intercompany receivables and payables and cash. Other components of equity are
not directly affected by interest rate movements.
The model used to calculate the effect on post-tax profits does not take into account the indirect effect of interest rates on the fair value
ofother assets and liabilities.
Foreign exchange and pricing risk
Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in
foreign exchange rates. Pricing risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of
changes in market prices. The Company is not directly exposed to foreign exchange or pricing risk. The Company’s investments in its
directly held subsidiaries are in sterling and are held at historic cost. It has indirect exposure to foreign exchange and pricing risk in the
Group, which could result in the impairment of these subsidiaries. There are currently sufficient resources in subsidiaries to absorb any
normal market events.
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
148 Schroders Annual Report and Accounts 2024
35 Own shares
Movements in own shares during the year were as follows:
2024
2023
£m
£m
At 1 January
(158.2)
(167.8)
Own shares purchased
(55.8)
(60.8)
Awards vested
65.5
70.4
At 31 December
(148.5)
(158.2)
During the year, 9.4 million own shares (2023: 13.1 million) were purchased and held for hedging share-based awards. 6.4 million (2023:
nil) shares were purchased and are held in treasury. 13.8 million shares (2023:14.2 million) awarded to employees vested in the year and
were transferred out of own shares.
The total number of shares in the Company held within the Company’s employee benefit trusts comprise:
2024
2023
Number of
vested shares
Number of
unvested shares Total
Number of
vested shares
Number of
unvested shares Total
Millions
Millions
Millions
Millions
Millions
Millions
Total ordinary shares
22.0
34.0
56.0
23.0
32.0
55.0
2024
2023
Vested
shares
Unvested
shares Total
Vested
shares
Unvested
shares Total
£m
£m
£m
£m
£m
£m
Total ordinary shares:
Cost
103.1
148.5
251.6
106.9
158.2
265.1
Fair value
71.4
109.9
181.3
98.9
137.5
236.4
36 Related party transactions
The Company is not deemed to be controlled or jointly controlled by a party directly or through intermediaries under the accounting
standards. As a result, the related parties of the Company comprise principally subsidiaries, associates and joint ventures, key
management personnel, close family members of key management personnel and any entity controlled by those parties.
The Company has determined that key management personnel comprises only the Board of Directors.
Transactions between related parties
Details of transactions between the Company and its subsidiaries, which are related parties of the Company, and transactions between
theCompany and other related parties, excluding compensation (which is set out in note 30), are disclosed below:
2024
Revenue Expenses
Interest
receivable
Interest
payable
Amounts owed
by related
parties
Amounts owed
to related
parties
£m
£m
£m
£m
£m
£m
Subsidiaries of the Company
358.0
(24.0)
71.9
(0.1)
1,701.9
(14.8)
Key management personnel
0.5
–
–
(0.2)
0.1
(20.6)
2023
Revenue Expenses
Interest
receivable
Interest
payable
Amounts owed
by related
parties
Amounts owed
to related
parties
£m
£m
£m
£m
£m
£m
Subsidiaries of the Company
454.0
(24.3)
50.4
(1.4)
1,426.2
(6.4)
Key management personnel
0.6
–
–
(0.3)
0.1
(17.0)
Transactions with related parties were made at market rates. The amounts outstanding are unsecured and will be settled in cash.
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149 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings
The Group operates globally, which results in the Company having a corporate structure consisting of a number of related
undertakings, comprising subsidiaries, joint ventures, associates and other qualifying undertakings. A full list of these undertakings,
the country of incorporation, registered office, classes of shares held and the effective percentage of equity owned at 31December
2024 is disclosed below.
Additionally, related undertakings include entities where the Company has a significant holding of a share class or unit class of a
pooled vehicle. These holdings can arise through the Group’s investment management activities on behalf of clients or as part of
the stated aim of generating a return on capital. The seeding of structured entities in order to develop new investment strategies
can give rise to these holdings. A listing of related undertakings arising from the Company’s interest in structured entities along
with registered offices is included on pages 163 to 166.
(a) Related undertakings arising from the Company’s corporate structure
Principal subsidiaries
The principal subsidiaries listed below are those that, in the opinion of the Directors, principally affect the consolidated profits or net
assets of the Company. The principal subsidiary entities are wholly owned subsidiary undertakings of the Company, unless otherwise
stated. All undertakings operate in the countries where they are registered or incorporated and are stated at cost less, where
appropriate, provision for impairment.
Name Share class Footnote % Address
UK
Leadenhall Securities Corporation Limited OS 100% 1 London Wall Place, London, EC2Y 5AU, England
Schroder & Co. Limited OS a 80.9%
Schroder Administration Limited OS b 100%
Schroder Corporate Services Limited OS 100%
Schroder Financial Holdings Limited OS 100%
Schroder Financial Services Limited OS 100%
Schroder International Holdings Limited OS 100%
Schroder Investment Company Limited OS 100%
Schroder Investment Management Limited OS 100%
Schroder Private Assets Holdings Limited OS 100%
Schroder Real Estate Investment Management Limited OS 100%
Schroder Unit Trusts Limited OS 100%
Schroder Wealth Holdings Limited OS 80.9%
Schroder Wealth International Holdings Limited OS 100%
Australia
Schroder Investment Management Australia Limited OS, CPS 100% Level 20, Angel Place, 123 Pitt Street, Sydney, NSW 2000, Australia
Guernsey
Schroder Investment Company (Guernsey) Limited
OS,
Redeemable
100%
PO Box 334, Regency Court, Glategny Esplanade, St. Peter Port,
Guernsey, GY1 3UF, Channel Islands
Schroders (C.I.) Limited OS 100%
Hong Kong
Schroder Investment Management (Hong Kong) Limited OS 100% Level 33, Two Pacific Place, 88 Queensway, Hong Kong
Luxembourg
Schroder Investment Management (Europe) S.A. OS 100% 5 rue Höhenhof, L-1736 Senningerberg, Luxembourg
Singapore
Schroder Investment Management (Singapore) Ltd. OS 100% 138 Market Street, #23-01, CapitaGreen, Singapore, 048946
Switzerland
Schroder & Co Bank AG OS 100% Talstrasse 11, 8001 Zurich, Switzerland
Schroder Investment Management (Switzerland) AG OS 100%
Schroders Capital Management (Switzerland) AG OS 100%
United States
Schroder Investment Management North America Inc. COS 100% 7 Bryant Park, New York, New York, 10018, USA
Schroder US Holdings Inc. COS 100%
National Registered Agents, Inc., 160 Greentree Drive, Suite 101,
Dover, Delaware, 19904, USA
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
150 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries
Name Share class Footnote % Address
UK
Croydon Gateway Nominee 1 Limited OS 100% 1 London Wall Place, London, EC2Y 5AU, England
Croydon Gateway Nominee 2 Limited OS 100%
Gatwick Hotel Feeder GP LLP PI 100%
J. Henry Schroder Wagg & Co. Limited OS 100%
Schroders Capital Junior Infrastructure Debt United Kingdom GP LLP PI 100%
Schroder Investment Management North America Limited OS 100%
Schroder Nominees Limited OS c 100%
Schroder Pension Management Limited OS 100%
Schroder Pension Trustee Limited OS 100%
Schroders IS Limited OS 100%
UK PEM Partners Limited OS 100%
Schroders Capital Private Equity Founder Partner (GP) Limited OS 100%
50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ,
Scotland
Schroders Capital Private Equity Founder Partner Limited OS 100%
Schroders Capital Private Equity GP LLP PI 100%
TransPennine GP (Scot) LLP PI 100%
Benchmark Capital Limited OS 100%
Broadlands Business Campus, Langhurstwood Road,
Horsham, West Sussex, RH12 4QP, England
Benchmark Financial Planning Limited OS 100%
Best Practice IFA Group Limited OS 100%
Bright Square Pensions Limited OS 100%
Champain Financial Services Limited OS n 100%
Creative Technologies Ltd OS 100%
Evolution Wealth Network Limited OS 100%
Fusion Wealth Limited OS 100%
Kingston Bishop Limited OS l 100%
Mark Cardy Consultancy Limited OS p 100%
Oculus Wealth Management (North Dorset) Limited OS 100%
PP Nominees Limited OS 100%
PP Trustees Limited OS 100%
RIA Pension Trustees Limited OS 100%
Unique Financial Planning Limited OS m 100%
Vercern Limited OS i 100%
Wealth Planning Limited OS h 100%
Retirement Planning Partnership Ltd OS e 100%
Kestrel House, Alma Road, Romsey, Hampshire, SO51
8ED, England
Advison Limited (In Liquidation) OS 100%
Begbies Traynor (Central) LLP, Town Wall House,
Balkerne Hill, Colchester, Essex, CO3 3AD, England
Chilcomb Wealth Ltd (In Liquidation) OS 100%
McPhersons Walpole Harding (Financial Services) Limited (In Liquidation) OS 100%
Mitchell & Company (IFA) Limited (In Liquidation) OS 100%
Mitchell & Company Holdings (Reigate) Limited (In Liquidation) OS 100%
Redbourne Wealth Management Ltd (In Liquidation) OS 100%
Regents Park Financial Solutions Limited (In Liquidation) OS i 100%
The Workplace Benefits Company Limited (In Liquidation) OS i 100%
Waterhouse Financial Planning Limited (In Liquidation) OS 100%
Begbies Traynor Scottish Provident Building, 7
Donegall Square, West Belfast, BT1 6JH, Northern
Ireland
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
151 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Australia
Schroder Australia Holdings Pty Limited OS 100% Level 20, Angel Place, 123 Pitt Street, Sydney, NSW 2000, Australia
Austria
Schroder Real Estate Asset Management Österreich GmbH OS 100% Zwerchäckerweg 2-10, 1220 Vienna, Austria
Belgium
Algonquin Management Partners S.A. OS 100% Avenue Louise, 523 – 1050, Bruxelles, Belgium
Bermuda
Schroder Venture Managers Limited COS 100%
Wellesley House, 2nd Floor, 90 Pitts Bay Road, Pembroke HM 08,
Bermuda
Schroders (Bermuda) Limited OS 100%
SITCO Nominees Limited OS 100%
Brazil
Schroder Investment Management Brasil Ltda OS 100%
Av Presidente Juscelino Kubitschek, 1327, 12º andar, sala 121,
São Paulo, SP, 04543-011, Brazil
Canada
Schroder Canada Investments Inc. COS 100%
Cidel Financial Group, 60 Bloor Street West, 9th Floor, Toronto,
Ontario, M4W 3B8, Canada
Cayman Islands
AEROW SMA Management I L.P. PI 100%
Maples & Calder, PO Box 309 GT, Ugland House, South Church
Street, George Town, Grand Cayman, KY1 113, Cayman Islands
AEROW SMA Management II L.P. PI 100%
PEM Partners Ltd OS 100%
Schroders Capital cPl Global Management III L.P. PI 100%
Clean Energy and Environment (China) Limited OS 100%
Walkers Corporate Limited, 190 Elgin Avenue, George Town, Grand
Cayman KY1 9008, Cayman Islands
Chile
Schroders Chile SpA OS 100%
Avenida Cerro El Plomo 5420 Oficina 1104, Les Condes, Santiago,
Chile
China
Schroder Fund Management (China) Company Limited OS 100% Unit 33T52A, 33F, 100 Century Avenue, FTZ, Shanghai, China
Schroder Investment Management (Shanghai) Co., Ltd. OS 100% Unit 40T12, 40F, 100 Century Avenue, FTZ, Shanghai, China
Schroders Capital Private Fund Management (Shanghai)
Co., Ltd. OS 100%
33T72B, 33F, No. 100 Century Avenue, Pudong, Shanghai
China
Schroders Capital Investment Management (Beijing)
Co., Ltd. OS 100%
Room 1929-1932, Winland International Finance Centre, 7
Finance Street, Xicheng District, Beijing, China
Schroders Capital GP Management (Shanghai) Co., Ltd. OS 100%
Room E-F, No. 828-838 Zhangyang Road, Shanghai Free Trade
Zone, Shanghai, China
Curaçao
cPl Schroders Capital Investments Management B.V. OS 100% Johan van, Walbeeckplein 11, Willemstad, Curaçao
Schroder Adveq Investors B.V. OS 100%
Schroders Capital Management (Curaçao) N.V. OS 100%
France
Schroder Real Estate (France) OS 100% 1 rue Euler, 75008, Paris, France
Schroders Capital Management (France) OS 100%
Schroders Capital Mid Infra II UP OS 100%
Schroder Mid Infra UP OS 100%
Schroders IDF IV UP OS 100%
Germany
Blitz 06-953 GmbH OS 100% Taunustor 1, 60310, Frankfurt, Germany
Real Neunzehnte Verwaltungsgesellschaft mbH OS 100%
Schroder Eurologistik Fonds Verwaltungs GmbH OS 100%
Schroder Holdings (Deutschland) GmbH CS 100%
Schroder Real Estate Investment Management GmbH OS 100%
Name
Share class Footnote % Address
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
152 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Germany (continued)
Schroder Real Estate Kapitalverwaltungsgesellschaft mbH OS 100%
Taunustor 1, 60310, Frankfurt, Germany
Schroders Capital Management (Deutschland) GmbH OS 100%
SIMA 5 Verwaltungsgesellschaft mbH OS 100%
Schroder Real Estate Asset Management Austria GmbH OS 100%
Maximilianstraße 31, 80539, München, Germany
Schroder Real Estate Asset Management GmbH OS 100%
Guernsey
Burnaby Insurance (Guernsey) Limited OS 100%
Heritage Hall, Le Marchant Street, St.Peter Port, Guernsey, GY1 4JH,
Channel Islands
CC Private Assets Equity PCC Limited OS 100%
Trafalgar Court, Les Banques, St. Peter Port, Guernsey, GY1 3QL,
Channel Islands
CC Private Assets Yield Limited OS 100%
CC Private Debt Feeder Company Limited OS 100%
CC Private Equity Feeder Company PCC Limited OS 100%
Schroder Venture Managers (Guernsey) Limited OS, NCRPS 100%
Schroders Wealth Private Assets PCC Limited OS 100%
Schroder Investment Management (Guernsey) Limited OS 100%
PO Box 334, Regency Court, Glategny Esplanade, St. Peter Port,
Guernsey, GY1 3UF, Channel Islands
Schroder Investments (Guernsey) Limited OS, R 100%
Schroder Nominees (Guernsey) Limited OS 100%
Secquaero Re (Guernsey) ICC Ltd OS 100%
PO Box 33, Dorey Court, Admiral Park, St.Peter Port, Guernsey, GY1
4AT, Channel Islands
Hong Kong
Schroder & Co. (Hong Kong) Limited (In Liquidation) OS 100%
5/F, Manulife Place, 348 Kwun Tong Road, Kowloon, Hong Kong
Schroders Greencoat HK SLP Limited OS 100%
37/F One Taikoo Place, Taikoo Place, 979 King's Road, Quarry Bay,
Hong Kong
Ireland
Schroder Investment Management (Ireland) Limited OS 100%
George’s Court, 54-62 Townsend Street, Dublin 2, Ireland
Japan
Schroder Investment Management (Japan) Limited OS 100%
8-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo, 100-0005, Japan
Jersey
AAF Management II L.P. PI 100%
26 New Street, St. Helier, Jersey, JE2 3RA, Channel Islands
AAF Management III L.P. PI 100%
BKMS Management L.P. PI 100%
BKMS Management II L.P. PI 100%
Confluentes Partners I L.P. PI 100%
Confluentes Partners II L.P. PI 100%
CPPEF Partners L.P. PI 100%
Cresta Management L.P. PI 100%
Cresta Management II L.P. PI 100%
Cresta Partners III L.P. PI 100%
EEM Management L.P. PI 100%
EEM Management II L.P. PI 100%
EEM Opportunities Management L.P. PI 100%
Gemini Management L.P. PI 100%
GPEP Management I L.P. PI 100%
GPEP Management IV L.P. PI 100%
Name Share class Footnote % Address
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
153 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class Footnote % Address
Jersey (continued)
GPEP Partners V L.P. PI 100%
26 New Street, St. Helier, Jersey, JE2 3RA, Channel
Islands
GPEP Partners VI L.P. PI 100%
IST3 Manesse PE Management L.P. PI 100%
IST3 Manesse PE2 Management L.P. PI 100%
Malatrex Partners L.P. PI 100%
Marmolata Partners L.P. PI 100%
Marmolata PE Impact Partners L.P. PI 100%
Matterhorn Partners L.P. PI 100%
Milele Partners L.P. PI 100%
PSY Private Equity Partners L.P. PI 100%
PSY Private Equity Partners II L.P. PI 100%
SA Co-Investment Management 1 L.P. PI 100%
SA RP CO Management 1 L.P. PI 100%
SA TG Management L.P. PI 100%
SA VS Management L.P. PI 100%
SA-EL Asia Partners I L.P. PI 100%
SA-EL Partners II L.P. PI 100%
SC-SA Co-Invest Opportunities 2018 Management L.P. PI 100%
Salève 2017 Management L.P. PI 100%
Salève 2020 Management L.P. PI 100%
Salève 2022 Partners L.P. PI 100%
Salève 2025 Partners L.P. PI 100%
SC Global Opportunities Management L.P. PI 100%
Schroder Adveq Shanghai Private Equity Investment Management L.P. PI 100%
Schroders Capital cPl Global Partners IV L.P. PI 100%
Schroders Capital cPl Global Partners V L.P. PI 100%
Schroders Capital Multi Private Credit Management L.P. PI 100%
Schroders Capital Private Equity Asia Partners V L.P. PI 100%
Schroders Capital Private Equity Asia Partners VI L.P. PI 100%
Schroders Capital Private Equity China Partners IV L.P. PI 100%
Schroders Capital Private Equity China Partners VI L.P. PI 100%
Schroders Capital Private Equity Europe Direct Partners II L.P. PI 100%
Schroders Capital Private Equity Europe Direct Partners III L.P. PI 100%
Schroders Capital Private Equity Europe Partners VII L.P PI 100%
Schroders Capital Private Equity Europe Partners VIII L.P. PI 100%
Schroders Capital Private Equity Europe Partners IX L.P. PI 100%
Schroders Capital Private Equity Global Direct Partners III L.P. PI 100%
Schroders Capital Private Equity Global Direct Partners IV L.P. PI 100%
Schroders Capital Private Equity Global Innovation Partners IX L.P. PI 100%
Schroders Capital Private Equity Global Innovation Partners X L.P. PI 100%
Schroders Capital Private Equity Global Innovation Partner XI L.P. PI 100%
Schroders Capital Private Equity Global Partners II L.P. PI 100%
Schroders Capital Private Equity Global Partners III L.P. PI 100%
Schroders Capital Private Equity Global Partners IV L.P. PI 100%
Schroders Capital Private Equity Healthcare Partners L.P. PI 100%
Schroders Capital Private Equity India Partners L.P. PI 100%
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
154 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class Footnote % Address
Jersey (continued)
Schroders Capital Private Equity Mature Secondaries (Orthros) Management L.P. PI 100%
26 New Street, St. Helier, Jersey, JE2 3RA,
Channel Islands
Schroders Capital Private Equity Mature Secondaries (Orthros) Management II
L.P. PI 100%
Schroders Capital Private Equity Mature Secondaries (Orthros) Management III
L.P. PI 100%
Schroders Capital Private Equity Mature Secondaries (Orthros) Management IV
L.P. PI 100%
Schroders Capital Private Equity Continuation Opportunities Management L.P. PI 100%
Schroders Capital Private Equity Continuation Opportunities Partners II L.P. PI 100%
Schroders Capital Private Equity Continuation Opportunities Partners III EUR L.P. PI 100%
Schroders Capital Private Equity Continuation Opportunities Partners III USD L.P. PI 100%
Schroders Capital Private Equity US Partners V L.P. PI 100%
Schroders Capital Private Equity US Partners VI L.P. PI 100%
Schroders Capital Taft-Hartley Ventures Partners L.P. PI 100%
Schroders Capital WPP Global Private Equity Management I L.P. PI 100%
Schroders Capital WPP Global Private Equity Management II L.P. PI 100%
TMC Management III L.P. PI 100%
TMC Management IV L.P. PI 100%
TMC Management V L.P. PI 100%
TMCO Management I L.P. PI 100%
Wilmersdorf Secondary Management II L.P. PI 100%
Schroders Capital Management (Jersey) Ltd OS 100%
IFC1, St. Helier, Jersey, JE2 3BX, Channel
Islands
Schroders Capital Private Equity Wollstonecraft Management Ltd. OS 100%
Schroders Capital WPP Global Private Equity Management Ltd. OS 100%
Croydon Gateway GP Limited OS 100%
47 Esplanade, St. Helier, Jersey, JE1 0BD,
Channel Islands
Croydon Gateway Investments Limited OS 100%
Income Plus Real Estate Debt GP Limited OS 100%
Schroder Real Estate Managers (Jersey) Limited OS 100%
Schroder RECaP SSF Nominee 1 Limited OS k 100%
Schroder RECaP Nominee 2 Limited OS k 100%
SRECaP SSF GP Ltd OS 100%
UK Retirement Living Fund (ReLF) GP Limited OS 100%
Luxembourg
Confluentes Management S.à r.l. OS 100%
17, boulevard F.W. Raiffeisen, L-2411,
Luxembourg
CPPEF Management S.à r.l. OS 100%
Cresta Management S.à r.l. OS 100%
GPEP Management S.à r.l. OS 100%
KVT PE Management S.à r.l. OS 100%
Manesse PE Management S.à r.l. OS 100%
Marmolata Management S.à r.l. OS 100%
Matterhorn Management S.à r.l. OS 100%
PE III Management S.à r.l. OS 100%
PSY Private Equity Management S.à r.l. OS 100%
Salève Management S.à r.l. OS 100%
Schroders Capital cPl Global Management S.à r.l. OS 100%
Schroders Capital Management (Luxembourg) S.à r.l. OS 100%
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
155 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class Footnote % Address
Luxembourg (continued)
Schroders Capital Private Equity Asia Management V S.à r.l. OS 100%
17, boulevard F.W. Raiffeisen, L-2411,
Luxembourg
Schroders Capital Private Equity Asia Management VI S.à r.l. OS 100%
Schroders Capital Private Equity China Management S.à r.l. OS 100%
Schroders Capital Private Equity Europe Direct Management III S.à r.l. OS 100%
Schroders Capital Private Equity Europe Management VIII S.à r.l. OS 100%
Schroders Capital Private Equity Europe Management IX S.à r.l. OS 100%
Schroders Capital Private Equity Global Direct Management III S.à r.l. OS 100%
Schroders Capital Private Equity Global Direct Management IV S.à r.l. OS 100%
Schroders Capital Private Equity Global Innovation Management X S.à r.l. OS 100%
Schroders Capital Private Equity Global Innovation Management XI S.à r.l. OS 100%
Schroders Capital Private Equity Global Management III S.à r.l. OS 100%
Schroders Capital Private Equity Global Management IV S.à r.l. OS 100%
Schroders Capital Private Equity Healthcare Management S.à r.l. OS 100%
Schroders Capital Private Equity India Management S.à r.l. OS 100%
Schroders Capital Private Equity Continuation Opportunities Management
II S.à r.l.
OS 100%
Schroders Capital Private Equity Continuation Opportunities Management
III S.à r.l.
OS 100%
Schroders Capital Private Equity US Management V S.à r.l. OS 100%
Schroders Capital Private Equity US Management VI S.à r.l. OS 100%
Schroders Capital Semi-Liquid Global Private Equity Holding Management
S.à r.l.
OS 100%
Schroders Capital Solutions Management S.à r.l. OS 100%
Schroders Capital Hybrid Enhanced Return Infrastructure GP S.à r.l. OS 100%
60, avenue J.F. Kennedy, L-1855 Luxembourg
Schroders Capital Junior Infrastructure Debt Europe II GP S.à r.l. OS 100%
46A Avenue J.F.Kennedy, L-1855, Luxembourg
Schroders Capital Junior Infrastructure Debt Europe III GP S.à r.l. OS 100%
Schroders Capital Senior Infrastructure Debt Europe V GP S.à r.l. OS 100%
Schroders Capital European Operating Hotels GP S.à r.l. OS 100%
404, Route d'Esch, L - 1471 Luxembourg
IED UK GP S.à r.l. OS 100%
Schroders Capital Real Estate Debt GP S.à r.l. OS 100%
15 Boulevard Friedrich Wilhelm Raiffeisen, L -
2411, Luxembourg
SNI Management S.à r.l. OS 100%
Schroder Real Estate (CIP) GP S.à r.l. OS 100%
5 rue Höhenhof, L-1736 Senningerberg,
Luxembourg
Schroder Real Estate Investment Management (Luxembourg) S.à r.l. OS 100%
Schroders Greencoat Europe GP S.à r.l. OS 100%
8, rue Lou Hemmer, L-1748 Senningerberg,
Luxembourg
Schroders Greencoat US - A SCSp PI 100%
Schroders Greencoat US GP S.àr.l. OS 100%
Schroders Capital Real Estate Asia IV SCSp PI 100%
4 Rue du Fort Wallis, L-2714, Luxembourg
Netherlands
Schroders Capital Real Estate Netherlands B.V. OS 100%
Strawinskylaan 1547, WTC, Level 14, 1077 XX
Amsterdam, Netherlands
Real Estate Fund Management B.V. OS 100%
RES Participations B.V. OS 100%
Schroder International Finance B.V. OS 100%
1 London Wall Place, London, EC2Y 5AU,
England
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
156 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Fully owned subsidiaries continued
Name Share class Footnote % Address
Singapore
Schroder & Co. (Asia) Limited OS 100%
138 Market Street, #23-02, CapitaGreen, Singapore,
048946
SWM Capital VCC OS 100%
Schroder Singapore Holdings Private Limited OS 100%
China Renewable Energy Fund GP Pte. Ltd OS 100%
77 Robinson Road, #13-00, Robinson 77, Singapore,
068896
South Korea
Schroders Korea Limited OS 100%
15th fl., Centropolis A, 26, Ujeongguk-ro,
Jongno-gu, Seoul, Republic of Korea
Switzerland
Schroder Real Estate Asset Management Switzerland GmbH (In
Liquidation) OS 100%
Lavaterstrasse 40, 8002, Zurich, Switzerland
Schroders Capital Holding (Switzerland) AG OS 100%
Talstrasse 11, 8001 Zurich, Switzerland
Taiwan
Schroder Investment Management (Taiwan) Limited OS 100%
9/F, 108 Sec.5, Hsin-Yi Road, Hsin-Yi District,
Taipei 11047, Taiwan
United States
Schroder Canada Inc. OS 100%
7 Bryant Park, New York, New York, 10018, USA
Schroder Fund Advisors LLC COS 100%
Schroder Taft-Hartley Income GP, LLC PI 100%
Schroder Venture Managers Inc. COS 100%
Schroders Incorporated COS 100%
Schroder FOCUS II GP, LLC PI 100%
Corporate Trust Center, 1209 Orange Street,
Wilmington, Delaware, 19801, USA
Schroder Flexible Secured Income GP, LLC PI 100%
Schroders Capital PILLARS GP, LLC PI 100%
Schroders Capital ERISA Flexible Secured Income GP, LLC PI 100%
Schroders Capital FOCUS III GP, LLC PI 100%
Schroders Capital Management (US) Inc. OS 100%
Schroders Capital PERLS GP, LLC PI 100%
Schroders Capital Securitized Hi-Grade Flexible Total Return GP, LLC PI 100%
Schroders Greencoat US GP LLC OS 100%
Subsidiaries where the ownership is less than 100%
Name Share class Footnote % Address
UK
Cazenove New Europe (CFM1) Limited OS a, c 80.9%
1 London Wall Place, London, EC2Y 5AU, England
Cazenove New Europe (PPI) Limited OS a, c 80.9%
Cazenove New Europe Staff Interest Limited OS a, c 80.9%
Residential Land Development (GP) LLP PI i 67%
Ruskin Square Phase One LLP PI 50%
Sand Aire Limited OS a 80.9%
Schroder & Co Nominees Limited OS a, c 80.9%
Schroder Wealth Management (US) Limited OS a 80.9%
The Lexicon Management Company Limited OS i 50%
Greencoat Buckingham GP Unlimited OS h 75%
Greencoat Buckingham Investments LLP PI h 75%
Greencoat Capital Management Investment Limited OS h 75%
Greencoat Carlisle Place GP LLP PI h 75%
Greencoat Carlisle Place Investments Limited OS h 75%
Greencoat Cornwall Gardens GP LLP PI h 75%
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
157 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class Footnote % Address
UK (continued)
Greencoat Cornwall Gardens Investments Limited OS h 75% 1 London Wall Place, London, EC2Y 5AU, England
Greencoat Embankment GP LLP PI h 75%
Greencoat Embankment Investments Limited OS h 75%
Greencoat GRI Investments Limited OS h 75%
Greencoat Hudson GP LLP PI h 75%
Greencoat Hudson Investments Limited OS h 75%
Greencoat Sejong GP LLP PI h 75%
Greencoat Sejong Investments Limited OS h 75%
Greencoat Solar GP Unlimited OS h 75%
Greencoat Solar II GP Unlimited OS h 75%
Greencoat Solar II Investments LLP PI h 75%
Greencoat Solar Investments LLP PI h 75%
Greencoat Tachbrook GP LLP PI h 75%
Greencoat Tachbrook Investments Limited OS h 75%
Greencoat Tothill GP LLP PI h 75%
Greencoat Tothill Investments Limited OS h 75%
Greencoat Villiers GP LLP PI h 75%
Greencoat Villiers Investments Limited OS h 75%
Greencoat Wilton GP LLP PI h 75%
Greencoat Wilton Investments Limited OS h 75%
Greencoat York GP LLP PI h 75%
Greencoat York Investments Limited OS h 75%
Greencoat GRI (Feeder) GP Unlimited OS h 75%
Schroders Greencoat Francis Investments LLP PI h 75%
Schroders Greencoat Glasgow Terrace GP LLP PI h 75%
Schroders Greencoat Holdings Limited OS 75%
Schroders Greencoat Investment Limited OS h 75%
Schroders Greencoat LLP PI h 75%
Schroders Greencoat Wessex Gardens GP LLP PI h 75%
Schroders Greencoat Willow GP LLP PI h 75%
Schroders Greencoat Woodmont Renewables GP LLP PI h 75%
Social Supported Housing CIP LLP PI 50%
Social Supported Housing GP LLP PI 50%
Whitley Asset Management Limited OS 80.9%
Clarke-Walker Financial Management Limited OS j 49.5%
C/O Mcphersons Walpole Harding, Citibase
Brighton, 95 Ditchling Road, Brighton, BN1 4ST,
England
Finura Partners Limited OS 75%
C/O Cantelowes Limited, 4th Floor, 20
Aldermanbury, London, EC2V 7HY, England
Greencoat GRI GP LLP PI h 75%
50 Lothian Road, Festival Square, EH3 9WJ,
Edinburgh, Scotland
Greencoat Sejong FP LP PI h 75%
Schroders Greencoat Francis GP PI h 75%
Oculus Wealth Management Limited OS 51%
Bridge House Main Street, Weeton, Leeds, LS17 0AY,
England
Oculus (Holdings) Limited OS 51%
Tenacity Wealth Management Limited OS o 75%
Haslemere House, Lower Street, Haslemere, Surrey,
GU27 2PE, England
Argentina
Schroder Investment Management S.A. OS 95%
Ing.Enrique Butty 220, Piso 12, Buenos Aires,
C1001AFB, Argentina
Schroder S.A. Sociedad Gerente de Fondos Comunes de Inversion OS 95%
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
158 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class Footnote % Address
British Virgin Islands
Alpha Park Limited OS g 77.4%
Vistra Corporate Services Centre, Wickhams Cay II,
Road Town, Tortola, VG1110, British Virgin Islands
Flete Holdings Limited OS g 77.4%
Pamfleet China Limited OS g 77.4%
Cayman Islands
Pamfleet China Investment Management Limited OS g 77.4%
Maples Corporate Services Limited, PO Box 309,
Ugland House, Grand Cayman, KY1-1104,
Cayman Islands
Pamfleet China Investment Management II Limited OS g 54.2%
Pamfleet International Limited OS g 77.4%
Schroders HKHS G.P. OS g 77.4%
Schroder Adveq Europe Management II L.P. PI 20%
Schroder Adveq Europe Management III L.P. PI 87.9%
Schroder Adveq Technology Management V L.P. PI 89%
Schroder Adveq Technology Management VI L.P. PI 65%
Schroder Adveq US Management I L.P. PI 76%
Schroders Capital cPl Global Management L.P. PI 63%
Schroders Capital cPl Global Management II L.P. PI 88%
Schroders Capital Private Equity Asia Management L.P. PI 75%
Schroders Capital Private Equity Asia Management II L.P. PI 65%
Schroders Capital Private Equity Europe Management IV A L.P. PI 59%
Schroders Capital Private Equity Europe Management IV B L.P. PI 70%
Schroders Capital Private Equity US Management II L.P. PI 87%
China
Pamfleet (Shanghai) Enterprise Management Limited OS g 77.4%
302 Block 9 No 697 Weihai Road, Jing’An, Shanghai,
China
France
Terre et Mer Holding SAS OS 80% 1 rue Euler, 75008, Paris, France
Germany
CM Komplementr 06-379 GmbH & Co KG OS 95%
Taunustor 1, 60310, Frankfurt, Germany
Schroders Greencoat (Deutschland) GmbH CS i, h 75%
Guernsey
SV (Nominees) Limited OS k 50%
PO Box 255, Trafalgar Court, Les Banques,
St. Peter Port, Guernsey, GY1 3QL, Channel Islands
Hong Kong
Pamfleet Asset Management (China) Limited OS g 77.4%
Level 33, 88 Queensway, Hong Kong
Pamfleet Asset Management (HK) Limited OS g 77.4%
Pamfleet (China II) Asset Management Limited OS g 54.2%
Pamfleet (HK) Limited OS g 77.4%
Pamfleet Holdings (Hong Kong) Limited OS 77.4%
Indonesia
PT Schroder Investment Management Indonesia OS 99%
30th Floor, Indonesia Stock Exchange Building,
Tower 1, Jl Jendral Sudirman Kav 52-53, Jakarta,
12190, Indonesia
Ireland
Schroders Greencoat (Ireland) Limited OS i, h 75%
Riverside One, 37-42 Sir John Rogerson’s Quay,
Dublin 2, D02 X576, Ireland
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
159 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class Footnote % Address
Jersey
AAF Management I L.P. PI 48%
26 New Street, St. Helier, Jersey, JE2 3RA,
Channel Islands
GPEP Management II L.P. PI 70%
GPEP Management III L.P. PI 70%
Schroders Capital Private Equity Asia Management III L.P. PI 53%
Schroders Capital Private Equity Asia Management IV L.P. PI 70%
Schroders Capital Private Equity Europe Direct Management L.P. PI 73%
Schroders Capital Private Equity Europe Management V L.P. PI 73%
Schroders Capital Private Equity Europe Management VI L.P. PI 74%
Schroders Capital Private Equity Global Innovation Management VII L.P. PI 46%
Schroders Capital Private Equity Global Innovation Management VIII L.P. PI 78%
Schroders Capital Private Equity Global Management L.P. PI 71%
Schroders Capital Private Equity Secondaries Management II L.P. PI 53%
Schroders Capital Private Equity US Management III L.P PI 51%
Schroders Capital Private Equity US Management IV L.P. PI 73%
TMC Management I L.P. PI 54%
TMC Management II L.P. PI 49%
Wilmersdorf Secondary Management L.P. PI 71%
UK Retirement Living (CIP) GP Limited OS 50%
47 Esplanade, St. Helier, Jersey, JE1 0BD, Channel
Islands
Luxembourg
BlueOrchard Asset Management (Luxembourg) S.A. OS k, f 90%
5 rue Höhenhof, L-1736 Senningerberg,
Luxembourg
BlueOrchard Invest S.à r.l. OS k, f 90%
Schroder Property Services B.V. (In Liquidation) OS 70%
Schroders Capital Hotels (CIP) SCSp PI 75.2%
SEOHF (CIP) SCSp PI 99.9%
SEOHF AGGREGATOR (CIP) SCSp PI 78.6%
SRE ReLF (CIP) SCSp PI 74.7%
SRE SoHo (CIP) SCSp PI 83.1%
Schroders Capital Real Estate Asia IV GP S.à r.l. OS g 77.4% 4 rue du Fort Wallis, 2714 Luxembourg
SRE Invest SCSp
PI 99.7%
15 boulevard F.W. Raiffeisen, L-2411,
Luxembourg
Mexico
Consultora Schroders, S.A. de C.V. OS d, e 99%
Montes Urales 760 Desp. 101, Col. Lomas de
Chapultepec, DF, 11000, Mexico
Netherlands
Data Invest B.V. OS 21.9%
Strawinskylaan 1547, WTC Level 15, 1077 XX
Amsterdam, Netherlands
Frame Offices B.V. OS 40%
ITC Invest B.V. OS 30.4%
RES Retail B.V. OS 51.5%
Schroders Greencoat (Nederland) B.V. OS i, h 75.0%
World Trade Center, Tower C, Level 15,
Strawinskylaan 1547, 1077 XX, Amsterdam,
Netherlands
Peru
BlueOrchard America Latina S.A.C. OS f 90%
Calle Dean, Valdivia 227, Office 501, San Isidro,
Lima, Peru
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
160 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Subsidiaries where the ownership is less than 100% continued
Name Share class Footnote % Address
Singapore
BlueOrchard Investments Singapore Pte. Ltd OS f 90%
138 Market Street, #23-01, CapitaGreen,
Singapore, 048946
Pamfleet Asset Management (Singapore) Pte. Limited OS g 77.4%
Switzerland
BlueOrchard Finance AG OS 90% Talstrasse 11, 8001 Zurich, Switzerland
United States
Schroders Greencoat US LLC PI i, h 75%
251 Little Falls Drive, City of Wilmington, County
of New Castle, Delaware 19808, USA
Greencoat Columbus GP LLC PI h 75%
Maples Fiduciary Services (Delaware) Inc., 4001
Kennett Pike, Suite 302, Wilmington, Delaware
19807, USA
Greencoat Columbus II GP LLC PI h 75%
SG US Blocker LLC PI 75%
The Corporation Trust Company, 1209 Orange
Street, Wilmington DE 19801, USA
SG US Aggregator LLC PI 75%
Associates and joint ventures
Name Share class Footnote % Address
UK
Chartered Independent Limited OS j 49%
6 Church Street, Wellington, Telford, TF1 1DG,
England
Kellands (Bristol) Limited OS 31%
Quays Office Park, Conference Avenue,
Portishead, Bristol, BS20 7LZ, England
Rayner Spencer Mills Research Limited OS 49%
20 Ryefield Business Park, Belton Road, Silsden,
Keighley, West Yorkshire, BD20 0EE, England
Future Growth Capital (Holdings) Limited OS 50.1%
1 London Wall Place, London, EC2Y 5AU, England
Nippon Life Schroders Asset Management Europe Limited OS d 33%
Robertson Baxter Limited OS 24%
Beck House, Abbey Road, Shepley, Huddersfield,
HD8 8EP, England
Scottish Widows Schroder Wealth Holdings Limited OS 49.9% 25 Gresham Street, London, EC2V 7HN, England
Australia
Schroders RF Limited OS k 50.1%
Level 20, Angel Place, 123 Pitt Street, Sydney,
NSW 2000, Australia
British Virgin Islands
Graceful Lane Limited OS 30%
Vistra Corporate Services Centre, Wickhams Cay
II, Road Town, Tortola, VG1110, British Virgin
Islands
China
Bank of Communications Schroder Fund Management Company
Limited OS 30%
2nd Floor Bank of Communications Tower,
188 Middle Yincheng Road, Pudong New Area,
Shanghai, 200120, China
Schroder BOCOM Wealth Management Company Limited OS 51%
Floor 59, Wheelock Square, No. 1717, West
Nanjing Road, Jingan District, Shanghai, China
France
JV Hotel Paris La Villette SAS OS 50% 1 rue Euler, 75008, Paris, France
Guernsey
Schroder Ventures Investments Limited
OS, R, D, B
Preference 50%
PO Box 255, Trafalgar Court Les Banques,
St. Peter Port, Guernsey, GY1 3QL, Channel
Islands
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
161 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(a) Related undertakings arising from the Company’s corporate structure continued
Associates and joint ventures continued
Name Share class Footnote % Address
India
Axis Asset Management Company Limited OS i 25%
1st Floor, Axis House C-2 Wadia International
Centre, Pandurang Budhkar Marg, Worli-
Mumbai, 400025, India
Axis Mutual Fund Trustee Limited OS i 25%
Jersey
Bracknell General Partner Limited OS e 50%
47 Esplanade, St. Helier, Jersey, JE1 0BD, Channel
Islands
Singapore
Nippon Life Global Investors Singapore Limited OS 33%
138 Market Street, #34-02, CapitaGreen, 048946,
Singapore
United States
A10 Capital Parent Company LLC COS 19.3%
1209 Orange Street, Wilmington, Delaware,
19801, USA
Share class abbreviations
CS
Capital shares.
COS
Common stock.
NCRPS
Non-cumulative redeemable preference
shares.
CPS
Convertible preference shares.
D
Deferred shares.
OS
Ordinary shares.
PI
Partnership interest.
PS
Promote shares.
R Redeemable preference shares.
Footnotes
a Owned through Schroder Wealth Holdings
Limited.
b Held directly by the Company.
c Dormant company.
d The Company holds ordinary B shares.
e The Company holds ordinary A shares.
f Owned through BlueOrchard Finance AG.
g Owned through Pamfleet Holdings (Hong Kong)
Limited.
h Owned through Schroders Greencoat Holdings
Limited.
i Financial year end 31 March.*
j Financial year end 31 May.*
k Financial year end 30 June.*
l Financial year end 31 August.*
m Financial year end 30 April.*
n Financial year end 30 November.*
o Financial year end 28 February.*
p Financial year end 31 January.*
* Entities where the year end is not coterminous
with the Group primarily relate to those which
were acquired in recent years.
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
162 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(b) Related undertakings arising from the Company’s interests in structured entities
The Company’s related undertakings also include funds in which it holds investments. These include fully and partially owned funds that
are classified as subsidiaries. Due to the number of share classes or unit classes that can exist in these vehicles, a significant holding in a
single share class or unit class is possible without that undertaking being classified as a subsidiary or associate.
Fund Name Share/unit class
Holding in share/
unit class
Total holding in
undertaking via
share/unit class
UK
Schroder Diversified Growth Fund* I Accumulation 89% 89%
Schroder Flexible Retirement Fund* X Accumulation 100% 87%
Schroder Global Emerging Markets Fund* A Accumulation 100% 39%
Schroder Global Sovereign Bond Tracker Component Fund I Accumulation 22% 13%
Schroder Global Sustainable Food And Water Fund* X Accumulation 60% 50%
Schroder India Equity Fund* X Accumulation 100% 73%
Schroder Institutional UK Smaller Companies X Accumulation 100% 15%
Schroder Life UK Equity Portfolio IES 1 67% 18%
Schroder Long Dated Corporate Bond Fund I Accumulation 20% 7%
Schroder QEP Global Active Value Fund I Accumulation 49% 14%
Schroder Sustainable Bond Fund X Accumulation 61% 25%
Schroder Sustainable Future Multi-Asset Fund* Z Accumulation 51% 39%
Schroder Sustainable Multi-Factor Equity Fund* X Accumulation 92% 56%
Schroders Capital Global Private Equity LTAF Z Accumulation 98% 49%
Schroders Capital UK Innovation LTAF XT Accumulation 100% 1%
Schroders Capital UK Real Estate Fund Feeder Trust I Distribution 36% 36%
Schroders Greencoat Global Renewables+ LTAF* A Accumulation 87% 47%
Australia
Schroder Equity Opportunities Fund I Accumulation 100% 1%
Brazil
Schroder Alternative Securitised Income BRL FIF RF CP IE RL Unspecified 55% 55%
Schroder Best Ideas FIA Unspecified 30% 30%
Schroder Premium Diversified Credit Vintage A FIC FIM CP Unspecified 78% 78%
Cayman Islands
Musashi Smart Premia Fund (Exclusively for Qualified Institutional Investors
with Re-Sale Restriction for the Japanese Investors)
B 100% 0%
Musashi Smart Premia Fund (Exclusively for Qualified Institutional Investors
with Re-Sale Restriction for the Japanese Investors)
C 100% 1%
China
Schroder China Dynamic Equity Fund A Accumulation 55% 33%
Guernsey
Schroder Institutional Developing Markets Fund B Distribution 100% 4%
Hong Kong
Schroder Asian Asset Income Fund I Accumulation USD 100% 0%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV AUD Hedged 31% 2%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV2 AUD Hedged 93% 2%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV2 CNY Hedged 74% 2%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV HKD 7% 2%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV2 HKD 58% 2%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV CNY Hedged 27% 2%
Schroder Global Multi-Asset Thematic Fund* A Accumulation 42% 2%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV 10% 2%
Schroder Global Multi-Asset Thematic Fund* A Distribution MV2 95% 2%
Schroder Global Multi-Asset Thematic Fund* I Accumulation 100% 23%
Japan
Schroder YEN Target (Annual) Unspecified 35% 35%
Schroder YEN Target (Semi-Annual) Unspecified 75% 75%
Luxembourg
BlueOrchard Covid-19 Fund Unspecified 27% 8%
BlueOrchard Impact Credit Fund BO 100% 33%
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
163 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(b) Related undertakings arising from the Company’s interests in structured entities continued
Fund Name Share/unit class
Holding in share/
unit class
Total holding in
undertaking via
share/unit class
Luxembourg (continued)
BlueOrchard LAC GDI Unspecified 100% 3%
BlueOrchard Sustainable Asset Fund Unspecified 48% 22%
Schroder Alternative Solutions Commodity Fund I Accumulation GBP Hedged 98% 0%
Schroder Alternative Solutions Commodity Total Return Fund I Accumulation GBP Hedged 96% 0%
Schroder GAIA Oaktree Credit I Accumulation 50% 14%
Schroder ISF Alternative Securitised Income IZ Accumulation 41% 0%
Schroder ISF Asian Equity Impact IZ Accumulation 50% 49%
Schroder ISF BlueOrchard Emerging Markets Climate Bond* I Accumulation 20% 13%
Schroder ISF Carbon Neutral Credit* I Accumulation 47% 14%
Schroder ISF Carbon Neutral Credit* I Accumulation GBP Hedged 100% 50%
Schroder ISF Changing Lifestyles* I Accumulation 100% 71%
Schroder ISF Circular Economy* I Accumulation 100% 99%
Schroder ISF Cross Asset Momentum IZ Accumulation 100% 9%
Schroder ISF Cross Asset Momentum I Accumulation 32% 9%
Schroder ISF Emerging Europe I Accumulation 26% 0%
Schroder ISF Emerging Europe X9 Accumulation 51% 0%
Schroder ISF Emerging Markets Debt Total Return I Accumulation GBP Hedged 100% 0%
Schroder ISF Emerging Markets Debt Total Return I Accumulation EUR Hedged 100% 0%
Schroder ISF Emerging Markets Equity Impact* I Accumulation 27% 26%
Schroder ISF Emerging Markets Local Currency Bond* I Accumulation 58% 19%
Schroder ISF EURO Credit Conviction I Accumulation 100% 0%
Schroder ISF European Equity Impact* I Accumulation 100% 46%
Schroder ISF European Sustainable Equity* I Accumulation 24% 15%
Schroder ISF Global Bond I Accumulation 100% 0%
Schroder ISF Global Climate Leaders* I Accumulation 54% 53%
Schroder ISF Global Energy I Accumulation 97% 1%
Schroder ISF Global Equity Impact I Accumulation 100% 97%
Schroder ISF Global Equity Yield I Accumulation EUR 99% 0%
Schroder ISF Global Inflation Linked Bond I Accumulation 100% 0%
Schroder ISF Global Managed Growth* I Accumulation 100% 84%
Schroder ISF Global Multi-Asset Balanced I Accumulation CHF Hedged 96% 0%
Schroder ISF Global Multi-Asset Income I Accumulation 100% 0%
Schroder ISF Global Recovery I Accumulation 87% 1%
Schroder ISF Global Social Growth I Accumulation 100% 98%
Schroder ISF Global Sustainable Convertible Bond* I Accumulation 32% 26%
Schroder ISF Inflation Plus I Accumulation 27% 4%
Schroder ISF Japanese Opportunities I Accumulation 29% 1%
Schroder ISF Nordic Micro Cap I Accumulation 100% 0%
Schroder ISF Nordic Smaller Companies I Accumulation 100% 0%
Schroder ISF QEP Global Emerging Markets I Accumulation GBP 99% 4%
Schroder ISF Smart Manufacturing I Accumulation 100% 9%
Schroder ISF Social Impact Credit* I Accumulation 100% 100%
Schroder ISF Sustainable Asian Equity I Accumulation 32% 19%
Schroder ISF Sustainable Emerging Markets ex China Synergy* I Accumulation 100% 95%
Schroder ISF Sustainable Euro Credit I Accumulation 32% 19%
Schroder ISF Sustainable Global Credit Income Short Duration I Accumulation GBP Hedged 99% 0%
Schroder ISF Sustainable Global Multi Credit I Accumulation EUR Hedged 96% 0%
Schroder ISF Sustainable Global Sovereign Bond I Accumulation USD Hedged 50% 0%
Schroder ISF Sustainable Infrastructure I Accumulation 100% 91%
Schroder ISF Sustainable US Dollar Corporate Bond* I Accumulation 100% 98%
Schroder ISF Sustainable US Dollar Short Duration Bond* I Accumulation 49% 48%
Schroder ISF Swiss Equity I Accumulation 100% 0%
Schroder ISF US Small & Mid-Cap Equity I Accumulation 99% 1%
Schroder Matching Plus Buy and Maintain Credit Sterling Cashflow (2032-2040) I Distribution 42% 22%
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
164 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(b) Related undertakings arising from the Company’s interests in structured entities continued
Fund Name Share/unit class
Holding in
share/unit class
Total holding in
undertaking via
share/unit class
Luxembourg (continued)
Schroder Matching Plus Buy and Maintain Credit Sterling Cashflow (2032-2040) IZ Distribution 19% 5%
Schroder Property Eurologistics Fund No.1 (B) A 23% 52%
Schroder Property Eurologistics Fund No.1 (B) B 28% 52%
Schroders Capital Real Estate Debt SCSp SICAV-RAIF Senior Loans EUR Unspecified 100% 100%
Schroders Capital Real Estate Debt Senior Loan EUR Unspecified 100% 100%
Schroders Capital Semi-Liquid Circular Economy Private Plus* I Accumulation 53% 50%
Schroders Capital Semi-Liquid Energy Transition C Accumulation 97% 1%
Schroders Capital Semi-Liquid European Loans C Accumulation 98% 1%
Schroders Capital Semi-Liquid Global Innovation Private Plus* I Accumulation 100% 42%
Schroders Capital Semi-Liquid Global Real Estate Total Return I Accumulation 100% 33%
SIF Core Insurance Linked Securities I Accumulation 20% 12%
SSSF Structured Income I Accumulation 99% 3%
Schroder ISF Sustainable Future Trends I Accumulation 100% 13%
Schroder Special Situations Fund Wealth Management USD Growth IS Accumulation 64% 48%
United States
Hartford Schroders China A Fund SD Accumulation 100% 17%
Hartford Schroders Commodity Strategy ETF SD Accumulation 36% 36%
Hartford Schroders Diversified Emerging Markets Fund SD Accumulation 37% 27%
Hartford Schroders International Contrarian Value Fund Unspecified 100% 22%
Hartford Schroders Private Opportunities Fund SD Accumulation 48% 48%
Hartford Schroders Sustainable International Core Fund Unspecified 94% 94%
Schroder FOCUS II Fund, L.P. Unspecified 54% 6%
Schroders Capital Securitized Hi-Grade Flexible Total Return, L.P. Unspecified 90% 0%
Lincoln Inflation Plus I I Accumulation 100% 49%
Lincoln U.S. Equity Inc Maximizer I I Accumulation 100% 50%
*Investments in structured entities that are consolidated.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
165 Schroders Annual Report and Accounts 2024
37 Subsidiaries and other related undertakings continued
(b) Related undertakings arising from the Company’s interests in structured entities continued
The registered offices for each of the related undertakings listed on pages 163 to 165 are reflected by country below:
UK
1 London Wall Place, London, EC2Y 5AU, England
Australia
Level 20, Angel Place, 123 Pitt Street, Sydney, NSW 2000, Australia
Brazil
The registered office for the following related undertakings is
Av. Presidente Wilson, nº 231, 11º andar, Rio de Janeiro, Brazil
Schroder Premium Diversified Credit Vintage A FIC FIM CP
The registered office for the following related undertakings is
Núcleo Cidade de Deus, Prédio Amarelo, 1o andar, Vila Yara,
Osasco, SP, Brazil
Schroder Best Ideas FIA
The registered office for the following related undertakings is
Av. Brigadeiro Faria Lima, nº 3.500, 4º andar, Itaim Bibi, São Paulo,
Brazil
Schroder Alternative Securitised Income BRL FIF RF CP IE RL
Cayman Islands
Maples Corporate Services Limited, Ugland House, PO Box 309,
Grand Cayman, KY11-1104, Cayman Islands
China
Unit 33T52A, 33F Shanghai World Financial Center, 100 Century
Avenue, Shanghai, China
Guernsey
PO Box 255, Trafalgar Court, Les Banques, St Peter Port, Guernsey
Hong Kong
HBSC Institutional Trust Services (Asia) Limited, 1 Queen’s Road
Central, Hong Kong
Japan
1-1 Chuo-ku, Saitama City, Saitama Shintoshin Godo Choushya 1st
Building, Saitama Prefecture, 330-9716, Japan
Luxembourg
The registered office for the Luxembourg related undertakings is
5 rue Höhenhof, L-1736 Senningerberg, Luxembourg, except for
the following:
The registered office for the following related undertakings is
80, route d’Esch, L-1470 Luxembourg
Schroder Property Eurologistics Fund No.1 (B)
The registered office for the following related undertakings is
2rue d’ Alsace, L-1122 Luxembourg
BlueOrchard LAC GDI
BlueOrchard COVID-19 Fund
The registered office for the following related undertakings is
15, Boulevard F.W. Raiffeisen L - 2411 Luxembourg
Schroders Capital Real Estate Debt Senior Loan EUR
United States
The registered office for the United States related undertakings is
7 Bryant Park, New York, New York, 10018, USA, except for the
following:
The registered office for the following related undertakings is 690
Lee Road, Wayne, Pennsylvania, 19087, USA
Hartford Schroders China A Fund
Hartford Schroders Commodity Strategy ETF
Hartford Schroders Diversified Emerging Markets Fund
Hartford Schroders International Contrarian Value Fund
Hartford Schroders Sustainable International Core Fund
The registered office for the following related undertakings is
251 Little Falls Drive, Wilmington, DE 19808, USA
Hartford Schroders Private Opportunity Fund
The registered office for the following related undertakings is
C/O Corporation Service Company, 251 Little Falls Drive,
Wilmington, 19808, USA
Lincoln Inflation Plus I
Lincoln U.S. Equity Inc Maximizer I
Schroders plc financial statements continued
Schroders plc – Notes to the accounts continued
166 Schroders Annual Report and Accounts 2024
Independent auditor’s report to the
members of Schroders plc
Opinion
In our opinion:
– Schroders plc’s Group financial statements and Parent company
financial statements (the ‘financial statements’) give a true and
fair view of the state of the Group’s and of the Parent company’s
affairs as at 31 December 2024 and of the Group’s profit for the
year then ended;
– the Group financial statements have been properly prepared in
accordance with UK-adopted international accounting
standards;
– the Parent company financial statements have been properly
prepared in accordance with UK-adopted international
accounting standards as applied in accordance with section 408
of the Companies Act 2006; and
– the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
We have audited the financial statements of Schroders plc (the
‘Parent company’) and its subsidiaries (the ‘Group’) for the year
ended 31 December 2024 which comprise:
Group Parent company
Consolidated income statement
for the year ended 31
December 2024
Schroders plc - Statement of
financial position at 31
December 2024
Consolidated statement of
comprehensive income for the
year ended 31 December 2024
Schroders plc - Statement of
changes in equity for the year
ended 31 December 2024
Consolidated statement of
financial position at 31
December 2024
Schroders plc - Cash flow
statement for the year ended
31 December 2024
Consolidated statement of
changes in equity for the year
ended 31 December 2024
Schroders plc – Notes to the
accounts 29 to 37, including
material accounting policy
information
Consolidated cash flow
statement for the year ended
31 December 2024
Notes to the accounts 1 to 28,
including Presentation of the
financial statements and
material accounting policy
information
The financial reporting framework that has been applied in their
preparation is applicable law and UK-adopted international
accounting standards and, as regards the Parent company
financial statements, as applied in accordance with section 408 of
the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our
responsibilities under those standards are further described in the
‘Auditor’s responsibilities for the audit of the financial statements’
section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group and Parent company in
accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the Financial
Reporting Council’s (‘FRC’) Ethical Standard as applied to listed
public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard
were not provided to the Group or the Parent company and we
remain independent of the Group and the Parent company in
conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. To evaluate
the Directors’ assessment of the Group and Parent company’s
ability to continue to adopt the going concern basis of accounting,
we have:
– assessed the assumptions used in management’s five-year
forecast by comparing to internal management information,
external market sources and current market conditions. We also
determined that the model is appropriate to enable
management to make an assessment of the going concern
status of the Group for a period of twelve months from the date
the financial statements are approved. We also performed back-
testing on prior year forecasts by comparing them to the
Group’s results over the same periods;
– evaluated the capital and liquidity position of the Group by
reviewing the Internal Capital Adequacy Assessment Process,
the Internal Liquidity Adequacy Assessment Process and the
Recovery Plan;
– assessed the appropriateness of the stress and reverse stress
test scenarios by considering the key risks identified by
management, our understanding of the business and the
external market environment. We evaluated the assumptions
used in the scenarios by comparing them to internal
management information and external market sources, tested
the clerical accuracy and assessed the conclusions reached in
the stress and reverse stress test scenarios;
– assessed the plausibility of the available options identified by
management to mitigate the impact of the key risks by
comparing them to our understanding of the Group;
– performed enquiries of management and those charged with
governance to identify risks or events that may impact the
Group’s ability to continue as a going concern. We also reviewed
management’s paper describing their assessment of going
concern approved by the Board and minutes of meetings of the
Board and its committees; and
– assessed the appropriateness of the going concern disclosures
by comparing them to management’s assessment for
consistency and for compliance with the relevant reporting
requirements.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group
and Parent company’s ability to continue as a going concern for
twelve months from the date the Annual Report and Accounts
are approved.
In relation to the Group and Parent company’s reporting on how
they have applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the
Directors’ statement in the financial statements about whether
the directors considered it appropriate to adopt the going concern
basis of accounting.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
167 Schroders Annual Report and Accounts 2024
Our responsibilities and the responsibilities of the Directors with
respect to going concern are described in the relevant sections of
this report. However, because not all future events or conditions
can be predicted, this statement is not a guarantee as to the
Group and Parent company’s ability to continue as a going
concern.
Overview of our audit approach
Audit scope – The Group is comprised of over 300 legal
entities domiciled in 27 countries.
– We performed an audit of the complete
financial information of six legal entities and
audit procedures on specific balances for a
further 26 legal entities.
– Certain of the Group’s processes over
financial reporting are centralised in the
finance operations hubs of London,
Luxembourg, Singapore, Zurich and
Horsham. Where appropriate, our testing
was performed in these locations.
Key audit
matters
– Improper recognition of revenue.
– Improper recognition of cost of sales.
Materiality – Overall Group materiality of £32 million,
which represents 5% of operating profit.
An overview of the scope of the Parent company
and Group audits
Tailoring the scope
In the current year our audit scoping has been updated to reflect
the new requirements of ISA (UK) 600 (Revised). We have followed
a risk-based approach when developing our audit approach to
obtain sufficient and appropriate audit evidence on which to base
our audit opinion. We performed risk assessment procedures, with
input from our component auditors, to identify and assess risks of
material misstatement of the Group financial statements and
identified significant accounts and disclosures. When identifying
entities for which audit work needed to be performed to respond
to the identified risks of material misstatement of the Group
financial statements, we considered our understanding of the
Group and its business environment, the potential impact of
climate change, the applicable financial reporting framework, the
Group’s system of internal control at the entity level, the existence
of centralised processes, IT applications and any relevant internal
audit results.
We identified 32 entities as individually relevant to the Group. This
determination was based on one or more of the following factors
applying to each of the entities identified:
– relevant events and conditions underlying the identified risks of
material misstatement of the Group financial statements;
– pervasive risks of material misstatement of the Group financial
statements; or
– significant risk or an area of higher assessed risk of material
misstatement of the Group financial statements.
Of the 32 entities selected, we designed and performed audit
procedures on the entire financial information of six entities (“full
scope entities”). Four of those full scope entities were deemed
relevant due to the materiality or financial size of the entity relative
to the Group. The other two were deemed relevant due to the
number and significance of in-scope accounts.
For 26 entities, we designed and performed audit procedures
on specific significant financial statement account balances or
disclosures of the financial information of the component
(“specific scope entities”). For 43 entities, we performed
specified audit procedures to obtain evidence for one or
more relevant account assertions.
We determined that centralised audit procedures can be
performed across the identified entities in the following
audit areas:
Key audit area on which certain procedures were performed centrally Entities subject to central procedures
Revenue All relevant entities
Cost of sales All relevant entities
Journal entries All relevant entities
Taxation All relevant entities
Variable compensation All relevant entities
Defined benefit pension plan Schroders plc only
Provisions All relevant entities
Information technology All relevant entities
Independent auditor’s report to the members of Schroders plc continued
168 Schroders Annual Report and Accounts 2024
We then considered whether the remaining Group significant
account balances not yet subject to audit procedures, in
aggregate, could give rise to a risk of material misstatement of
the Group financial statements. We did not identify any additional
components to be included in our audit scope.
The table below illustrates the percentage of each account or
financial statement item covered by the work performed by our
audit teams.
Full
scope
1
Specific
scope
2
Specified
procedures
3
Out of
scope Total
Total assets 26% 70% 1% 3% 100%
Profit before tax 64% 34% N/A 2% 100%
Total revenue 64% 29% N/A 7% 100%
1. Full scope: audit procedures on all significant accounts.
2. Specific scope: audit procedures on selected accounts.
3. Specified procedures: audit procedures as designed by the Group audit team.
Our scoping to address the risk of material misstatement for each
key audit matter is set out in the key audit matters section of our
report.
Involvement with overseas teams
In establishing our overall approach to the Group audit, we
determined the type of work that needed to be undertaken at
each of the components by us, as the Group audit engagement
team, or by component auditors operating under our instruction.
The Group audit team continued to follow a programme of
planned visits that has been designed to ensure that the Senior
Statutory Auditor visits all full scope locations and key finance
operation hubs. During the current year, visits were undertaken
by the primary audit team to the component teams in
Luxembourg, Singapore, Zurich and US. These visits involved
gaining a greater understanding of the business issues faced in
each location, discussing the audit approach with the local team
and any issues arising from their work, reviewing relevant audit
working papers, and attending meetings with local management.
The Group audit team interacted regularly with the component
teams where appropriate during various stages of the audit,
reviewed relevant working papers and were responsible for the
scope and direction of the audit process. Where relevant, the
section on key audit matters details the level of involvement we
had with component auditors to enable us to determine that
sufficient audit evidence had been obtained as a basis for our
opinion on the Group as a whole.
This, together with the additional procedures performed at Group
level, gave us appropriate evidence for our opinion on the Group
financial statements.
Climate change
The Group has determined that the majority of its climate-related
risk lies in the assets it manages on behalf of its clients. This is
primarily explained on page 10 in the Task Force for Climate
related Financial Disclosures and on pages 28 to 31 in the Risk
Management section of the Annual Report and Accounts. The
Group has also explained their climate-related commitments on
pages 24 to 25. All of these disclosures form part of the ‘Other
information’. Our procedures on these unaudited disclosures
therefore consisted solely of considering whether they are
materially inconsistent with the financial statements, or our
knowledge obtained in the course of the audit, or otherwise
appear to be materially misstated, in line with our responsibilities
in relation to ‘Other information’.
In planning and performing our audit, we assessed the potential
impacts of climate change on the Group’s business and any
consequential material impact on its financial statements.
As explained in the Estimates and Judgements section of the
Presentation of the financial statements on page 143, climate risks
have been considered in the preparation of the consolidated
financial statements where management consider it appropriate.
The principal areas of consideration by management include the
measurement of financial assets and impairment assessments.
Our audit effort in considering the impact of climate change on
the financial statements was focused on assessing whether the
effects of potential climate risks have been appropriately reflected
by management in reaching their judgments in relation to the
measurement of financial assets and their impairment
assessments. As part of this evaluation, we performed our own risk
assessment, to determine the risks of material misstatement in the
financial statements from climate change, which needed to be
considered in our audit.
We also challenged the Directors’ considerations of climate change
risks in their assessment of going concern and viability and
associated disclosures.
Based on our work, we have not identified the impact of climate
change on the financial statements to be a key audit matter or as a
factor that impacts a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we
identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
169 Schroders Annual Report and Accounts 2024
Risk Our response to the risk
Group only risk:
Improper recognition of revenue
(£2,970.0 million, 2023: £2,936.7 million)
Refer to the Audit and Risk Committee report
(page 54) and Note 2 of the Consolidated
financial statements (pages 97 to 99)
Schroders manages mutual funds and
private funds (collectively termed as ‘gross
fund fees’) in numerous domiciles, which
consist of many share classes. Schroders also
manages segregated portfolios and unitised
mandates for a range of institutions. In
addition, Schroders provides wealth
management services. The inputs and
calculation methodologies that drive the fees
vary significantly across this population. For
example, performance fees, fees related to
segregated accounts and fees generated
from private assets have a range of bespoke
calculation methodologies. For certain
revenue streams, management must apply
judgment in accordance with IFRS 15 –
Revenue from contracts with customers (‘IFRS
15’) to determine whether it is highly
probable that a significant reversal will not
occur in the future.
The following are identified as the key risks
or subjective areas of revenue recognition:
– Not all agreements in place have been
identified and accounted for;
– Fee terms have not been correctly
interpreted or entered into the fee
calculation and billing systems;
– Assets under management (‘AUM’) is not
accurate and has not been properly
attributed to fee agreements;
– Errors occur in externally calculated
revenues and manually calculated
revenues, such as performance fees,
certain private assets fees and carried
interest; and
– Inappropriate judgments are made by
management in the calculation and
recognition of carried interest.
There is also the risk that management may
influence the timing or recognition of
revenue in order to meet market
expectations or net operating income-based
targets.
We have:
– confirmed and updated our understanding of the procedures and controls in place
throughout the revenue process, both at Schroders through walkthrough
procedures, and at third party administrators (‘TPA’), through review of independent
controls assurance reports;
– IT systems: tested the controls over access to, and changes to, the systems
underpinning the revenue process, including testing controls over the flow of data
between systems for completeness and accuracy;
– fee agreements: tested the controls over new and amended fee agreements. For a
sample of fees, agreed the fee terms used in the calculation to investment
management agreements (‘IMAs’), fee letters or fund prospectuses;
– AUM: tested the controls in place for the calculation and existence of AUM used in the
fee calculations. For a sample of fees, tested the completeness, existence and
accuracy of AUM included in the fee calculation systems to administrator reports or
Schroders’ investment management systems;
– review of other information: inspected the global operational incident log and
complaints registers to identify significant errors in revenue or control deficiencies;
and
– management override: in order to address the residual risk of management override
we performed enquiries of management, read minutes of board and committee
meetings held throughout the year and performed journal entry testing.
Segregated/unitised revenue
– tested automated controls over the arithmetical accuracy of a sample of fee
calculations within the relevant systems; and
– tested controls over the billing and cash management process. For a sample of fees,
compared the amounts recorded to the invoice sent to the client and the cash
received, checking whether the revenue has been recorded in the correct period, and
assessed the recoverability of debtors through the testing of subsequent cash
receipts and inspection of the aged debtors report.
Gross fund fees
– for a sample of gross fund fees billed directly by the TPA, compared the revenue
recorded by Schroders to reports provided by the TPA; and
– for a sample of gross fund fees billed directly by the TPA, assessed the recoverability
of year end debtors through testing to cash receipts and inspection of the aged
debtors report.
Manually calculated revenues
– carried interest: challenged management over the judgments and estimates used in
the valuation of the carried interest receivable, including the constraints applied
under IFRS 15; and
– for a sample of manually calculated revenues, such as performance fees, certain
private assets fees and carried interest, agreed the inputs used in the relevant
calculations to third party sources, where applicable, and legal agreements;
recalculated the value of the relevant fee and compared the amount invoiced to the
revenue recorded. Where applicable, we agreed revenue recorded to the cash
receipts.
Key observations communicated to the Schroders Audit and Risk Committee
All transactions tested have been recognised in accordance with the underlying agreements or other supporting documentation.
Revenue has been materially recorded in accordance with IFRS 15.
Based on the procedures performed, we have no matters to report in respect of revenue recognition.
How we scoped our audit to respond to the risk
We performed full and specific scope audit procedures over this risk area in six locations, which covered 93% of the total revenue. Due
to the centralised nature of the revenue process, the majority of our testing was performed in London for Asset Management revenue,
and London and Zurich for Wealth Management revenue.
Independent auditor’s report to the members of Schroders plc continued
170 Schroders Annual Report and Accounts 2024
Risk Our response to the risk
Group only risk:
Improper recognition of cost of sales
(£612.3 million, 2023: £602.3 million)
Refer to the Audit and Risk Committee report
(page 54) and Note 2 of the Consolidated
financial statements (pages 97 to 99)
Schroders has fee expense agreements in
place with many parties. These expenses
include commissions, carried interest
payable, external fund manager fees,
expenses paid on behalf of UK-managed
funds, and distribution fees payable to
financial institutions, investment platform
providers and financial advisers. The
expenses are generally based on AUM.
The following are identified as the key risks
or subjective areas in correctly recognising
fee expenses:
– Not all agreements in place have been
identified and accounted for;
– Fee expense terms have not been correctly
interpreted;
– AUM has not been properly identified or
attributed to clients or third parties with
fee expense arrangements; and
– Inappropriate judgments are made by
management in the calculation of carried
interest payable.
There is also the risk that management may
influence the recognition of cost of sales in
order to meet market expectations or net
operating income-based targets.
We have:
– confirmed and updated our understanding of the procedures and controls in place
throughout the cost of sales process, both at Schroders through walkthrough
procedures, and at TPAs through review of independent controls assurance reports;
– IT systems: tested the controls over access to, and changes to, the systems
underpinning the fee expense process, including testing controls over the flow of
data between systems to test completeness and accuracy;
– review of other information: inspected the global operational incident log and
complaints registers to identify significant errors in fee expenses or control
deficiencies, and determined whether any fee expense risk events have been
appropriately addressed; and
– management override: in order to address the residual risk of management override
we performed enquiries of management, read minutes of board and committee
meetings held throughout the year and performed journal entry testing.
Cost of sales processed on Group finance operations model:
– fee expense agreements: tested the controls over new agreements and amended fee
expense agreements. For a sample of fee expenses calculated by Schroders and an
additional sample calculated by third parties, agreed the fee expense terms used in
the calculation to IMAs, fee letters or rebate agreements;
– AUM: tested the controls in place over the calculation and existence of AUM used in
the fee expense calculations. For a sample of fee expenses, tested the completeness
and accuracy of the AUM included in the calculation to Schroders’ transfer agency or
investment management systems;
– calculation: tested automated controls over the arithmetical accuracy of a sample of
fee expense calculations within the relevant systems; and
– billing: tested controls over the cash management process. For a sample of fee
expenses, compared the amount recorded to the rebate statement sent to the client
and to the cash paid.
Carried interest payable:
– challenged management over the judgments and estimates used in the valuation of
the carried interest liability. For a sample of funds with carried interest arrangements:
agreed the inputs used in the carried interest calculations to accounting records,
third party sources and legal agreements; recalculated the value of the carried
interest liability; and compared the discounted carried interest expense to the cost of
sales recorded.
Key observations communicated to the Schroders Audit and Risk Committee
All transactions tested have been recognised in accordance with the underlying agreements or other supporting documentation. Cost
of sales has been materially recorded in accordance with IAS 1 – Presentation of Financial Statements (‘IAS 1’). Based on the procedures
performed, we have no matters to report in respect of cost of sales.
How we scoped our audit to respond to the risk
We performed full and specific scope audit procedures over this risk area in six locations, which covered 96% of the total cost of sales.
Prior year comparison
There have been no significant changes to our overall risk assessment from the 2023 audit.
Our application of materiality
We apply the concept of materiality in planning and performing
the audit, in evaluating the effect of identified misstatements on
the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in
the aggregate, could reasonably be expected to influence the
economic decisions of the users of the financial statements.
Materiality provides a basis for determining the nature and extent of
our audit procedures.
We determined materiality for the Group to be £32 million (2023:
£33 million), which is 5% of operating profit (2023: 5% of operating
profit). We believe that operating profit is the most relevant
performance measure to the stakeholders of the Group.
We determined materiality for the Parent company to be £46
million (2023: £47 million), which is 1% (2023: 1%) of net assets.
The Parent company primarily holds investments in Group entities
and, therefore, net assets is considered to be the key focus for
users of the financial statements.
During the course of our audit, we reassessed initial materiality
based on 31 December 2024 financial statement amounts and
adjusted our audit procedures accordingly.
Performance materiality
The application of materiality at the individual account or balance
level. It is set at an amount to reduce to an appropriately low level the
probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality.
On the basis of our risk assessments, together with our
assessment of the Group’s overall control environment, our
judgment was that performance materiality was 75% (2023: 75%)
of our planning materiality, namely £24 million (2023: £25 million).
We have used a threshold consistent with 2023 due to our prior
experience as to the low occurrence of material misstatements
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
171 Schroders Annual Report and Accounts 2024
and our conclusions as to the effectiveness of the control
environment and accounting processes.
Audit work was undertaken at the entity level for the purpose of
responding to the assessed risks of material misstatement of the
Group financial statements. The performance materiality set for
each entity is based on the relative scale and risk of the entity to
the Group as a whole and our assessment of the risk of
misstatement at that entity. In the current year, the range of
performance materiality allocated to individual entities was £4.8
million to £13.2 million (2023: £5.0 million to £13.6 million).
Reporting threshold
An amount below which identified misstatements are considered as
being clearly trivial.
We agreed with the Audit and Risk Committee that we would
report to them all uncorrected audit differences in excess of £1.6
million (2023: £1.7 million), which is set at 5% of planning
materiality, as well as differences below that threshold that, in our
view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in light
of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the
Annual Report set out on pages 1 to 88 and 174 to 188, including
the Strategic report, Governance, and Shareholder information
sections, other than the financial statements and our auditor’s
report thereon. The Directors are responsible for the other
information in the Annual Report.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in
this report, we do not express any form of assurance conclusion
thereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
course of the audit, or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether
this gives rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed,
we conclude that there is a material misstatement of the other
information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion, the part of the Directors’ Remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the
audit:
– the information given in the Strategic report and the Directors’
report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
– the Strategic report and the Directors’ report have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report by
exception
In light of the knowledge and understanding of the Group and the
Parent company and its environment obtained in the course of the
audit, we have not identified material misstatements in the
Strategic report or the Directors’ report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
– adequate accounting records have not been kept by the Parent
company, or returns adequate for our audit have not been
received from branches not visited by us; or
– the Parent company financial statements and the part of the
Directors’ Remuneration report to be audited are not in
agreement with the accounting records and returns; or
– certain disclosures of directors’ remuneration specified by law
are not made; or
– we have not received all the information and explanations we
require for our audit.
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the Group and Parent
company’s compliance with the provisions of the UK Corporate
Governance Code specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements or our knowledge obtained during the audit:
– Director’s statement on whether it has a reasonable expectation
that the Group will be able to continue in operation and meets
its liabilities, as set out on page 34;
– Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any
material uncertainties identified, as set out on page 34;
– Directors’ explanation as to its assessment of the Parent
company’s prospects, the period this assessment covers and
why the period is appropriate, as set out on page 34;
– Directors’ statement on fair, balanced and understandable, as
set out on page 88;
– Board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks, as set out on pages 28-31;
– the section of the Annual Report that describes the review of
effectiveness of risk management and internal control systems,
as set out on page 28-31; and
– the section describing the work of the Audit and Risk
Committee, as set out on pages 54-61.
Responsibilities of Directors
As explained more fully in the Statement of Directors’
responsibilities set out on page 88, the Directors are responsible
for the preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such internal
control as the Directors determine is necessary to enable the
preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are
responsible for assessing the Group and Parent company’s ability
to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the
Group or the Parent company or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
Independent auditor’s report to the members of Schroders plc continued
172 Schroders Annual Report and Accounts 2024
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
Explanation as to what extent the audit was
considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including
fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from
error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through
collusion. The extent to which our procedures are capable of
detecting irregularities, including fraud, is detailed below.
However, the primary responsibility for the prevention and
detection of fraud rests with both those charged with governance
of the Parent company and management.
– We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Group and determined
that the most significant are those that relate to the reporting
framework (UK-adopted international accounting standards, the
Companies Act 2006 and UK Corporate Governance Code) and
relevant tax compliance regulations. In addition, we concluded
that there are certain significant laws and regulations which may
have an effect on the determination of the amounts and
disclosures in the financial statements being the Listing Rules
and relevant rules and regulations of the Prudential Regulation
Authority (‘PRA’), Financial Conduct Authority (‘FCA’) and those of
other applicable regulators around the world.
– We understood how Schroders plc is complying with those
frameworks by making enquiries of senior management,
including the Chief Financial Officer, General Counsel, Company
Secretary, Chief Risk Officer, Head of Internal Audit and the
Chairman of the Audit and Risk Committee. We corroborated
our understanding through our review of board and committee
meeting minutes, papers provided to the Audit and Risk
Committee, and correspondence received from the PRA and
FCA.
– We assessed the susceptibility of the Group’s financial
statements to material misstatement, including how fraud might
occur, by meeting with management to understand where they
considered there was susceptibility to fraud. We also considered
performance targets and their potential influence on efforts
made by management to manage or influence the perceptions
of analysts. We considered the controls that the Group has
established to address risks identified, or that otherwise
prevent, deter and detect fraud; and how senior management
monitors these controls. Where the risk was considered to be
higher, we performed audit procedures to address each
identified fraud risk.
– Based on this understanding we designed our audit procedures
to identify non-compliance with such laws and regulations
identified in the paragraphs above. Our procedures involved:
journal entry testing, with a focus on manual journals and
journals indicating large or unusual transactions based on our
understanding of the business; enquiries of senior
management, including those at full and specific scope entities;
and focused testing, as referred to in the key audit matters
section above.
A further description of our responsibilities for the audit of the
financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
Other matters we are required to address
– Following the recommendation from the Audit and Risk
Committee, we were appointed by the Parent company on 9
March 2018 to audit the financial statements for the year ending
31 December 2018 and subsequent financial periods. Our
appointment as auditor was approved by shareholders at the
Annual General Meeting on 26 April 2018.
– The period of total uninterrupted engagement including
previous renewals and reappointments is seven years, covering
the years ended 2018 to 2024.
– The audit opinion is consistent with the Audit Results Report to
the Board Audit and Risk Committee.
Use of our report
This report is made solely to the Parent company’s members, as a
body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the Parent company’s members those matters we are
required to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Parent company
and the Parent company’s members as a body, for our audit work,
for this report, or for the opinions we have formed.
James Beszant
Senior statutory auditor
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
5 March 2025
Notes:
1. The maintenance and integrity of the Schroders plc website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration
of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially
presented on the website.
2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
173 Schroders Annual Report and Accounts 2024
Shareholder
Information
Registered in England and Wales
Registered office
Tel: +44 (0) 207 658 6000
Email: companysecretary@schroders.com
Website: www.schroders.com
Share Registrar
Computershare Investor Services plc
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
UK Shareholder helpline:
Freephone (UK callers only): 0800 923 1530
International: +44 117 378 8170
Email: WebCorres@computershare.co.uk
Website: investorcentre.co.uk
Financial calendar
Ex-dividend date
27March 2025
Record date
28March 2025
DRIP election date deadline
14April 2025
Annual General Meeting
1May 2025
Final dividend payment date
8May 2025
Half-year results announcement
31 July 2025
Interim dividend paid*
September 2025
* Date to be confirmed.
Annual General Meeting
Our AGM will be held at 1 London Wall Place, London, EC2Y 5AU
and electronically via a live broadcast on Thursday 1May 2025 at
11.30am.
Investor Centre
Computershare is the Company’s share registrar. Investor Centre
is Computershare’s free, self-service website where shareholders
can manage their interests online.
The website enables shareholders to:
– view share balances
– change address details
– view payment and tax information
– update payment instructions
– update communication instructions.
Shareholders can register their email address at
investorcentre.co.uk to be notified electronically of events such as
AGMs and can receive shareholder communications such as the
Annual Report and Accounts and the Notice of Meeting online.
Enquiries and notifications concerning dividends, share certificates
or transfers and address changes should be sent to the Registrar.
Dividends
Paying dividends into a bank or building society account helps
reduce the risk of fraud and will provide you with quicker access to
your funds than payment by cheque. Applications for an electronic
mandate can be made by contacting the Registrar.
If your dividend is paid directly into your bank or building society
account, you will receive an annual consolidated dividend
confirmation, which will be sent to you in September each year
at the time the interim dividend is paid.
Dividend confirmations are available electronically at
investorcentre.co.uk to those shareholders who have their
payments mandated to their bank or building society accounts,
and who have expressed a preference for electronic
communications.
The Company operates a Dividend Reinvestment Plan (DRIP),
which provides shareholders with a way of increasing their
shareholding in the Company by reinvesting their dividends. A
copy of the DRIP terms and conditions and application form can
be obtained from the Registrar.
Details of dividend payments can be found in the Directors’ report
on page 85.
Schroders offers a service to shareholders in participating
countries that enables dividends to be received in local currencies.
You can check your eligibility and/or request a mandate form by
contacting the Registrar.
Warning to shareholders
Companies are aware that their shareholders have received
unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas-based
“brokers” who target UK shareholders, offering to sell them what
often turn out to be worthless or high-risk shares or investments.
These operations are commonly known as “boiler rooms”. These
“brokers” can be very persistent and extremely persuasive.
Shareholders are advised to be wary of any unsolicited advice,
offers to buy shares at a discount, or offers of free company
reports. If you receive any unsolicited investment advice:
– make sure you get the correct name of the person and
organisation
– check that they are properly authorised by the FCA before
getting involved by visiting register.fca.org.uk
– report the matter to the FCA by calling 0800 111 6768 or visiting
fca.org.uk/consumers/report-scam-unauthorised-firm
– do not deal with any firm that you are unsure about.
If you deal with an unauthorised firm, you will not be eligible to
receive payment under the Financial Services Compensation
Scheme. The FCA provides a list of the unauthorised firms it is
aware of, which can be accessed at fca.org.uk/consumers/warning-
list-unauthorised-firms.
More detailed information on this or similar activity can be found
on the FCA website at fca.org.uk/consumers/protect-yourself-
scams.
Capital gains tax implications of simplification of
the Schroders plc dual share class structure
Information on capital gains tax relating to the Enfranchisement,
Compensatory Bonus issue and Sub-Division of Schroders plc
shares that took place in September 2022 can be found on the
Company’s website.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
175 Schroders Annual Report and Accounts 2024
Five-year consolidated financial summary (unaudited)
2024
2023
2022
2021
2020
£m
£m
£m
£m
£m
Operating profit before tax 640.5 661.0 723.0 841.0 698.5
Tax (144.3) (128.0) (123.6) (147.4) (134.9)
Operating profit after tax 496.2 533.0 599.4 693.6 563.6
2024
2023
2022
2021
2020
£m
£m
£m
£m
£m
Profit before tax 558.1 487.6 586.9 764.1 610.5
Tax (125.1) (85.0) (100.7) (140.3) (124.5)
Profit after tax 433.0 402.6 486.2 623.8 486.0
2024
2023
2022
2021
2020
Operating earnings per share
Pence
Pence
Pence
Pence
Pence
Basic earnings per share
1
30.1 32.5 37.4 43.0 34.9
Diluted earnings per share
1
29.6 31.9 36.7 42.2 34.3
2024
2023
2022
2021
2020
Earnings per share
Pence
Pence
Pence
Pence
Pence
Basic earnings per share
1
26.4 24.6 30.4 38.7 30.2
Diluted earnings per share
1
26.0 24.2 29.9 38.1 29.7
Dividends
2024
2023
2022
2021
2020
Cost (£m) 334.2 333.0 332.1 318.6 311.7
Pence per share
2
21.5 21.5 21.4 20.4 20.0
Total equity (£m) 4,495.4 4,463.7 4,479.7 4,425.7 4,085.9
Net assets per share (pence)
3
279 277 278 275 253
2024
2023
2022
2021
2020
Group employees at year end 31 December
Number
Number
Number
Number
Number
United Kingdom 3,946 3,897 3,788 3,329 3,188
Europe, Middle East and Africa 904 1,016 1,031 940 938
Asia Pacific 1,090 1,089 1,188 1,093 1,066
Americas 423 436 427 388 379
6,363 6,438 6,434 5,750 5,571
Exchange rates – closing 31 December
2024
2023
2022
2021
2020
Sterling:
Euro 1.21 1.15 1.13 1.19 1.12
US dollar 1.25 1.27 1.20 1.35 1.37
Swiss franc 1.13 1.07 1.11 1.23 1.21
Australian dollar 2.02 1.87 1.77 1.86 1.77
Hong Kong dollar 9.73 9.95 9.39 10.56 10.60
Japanese yen 196.83 179.72 158.72 155.97 141.13
Singaporean dollar 1.71 1.68 1.61 1.83 1.81
Chinese renminbi 9.14 9.04 8.36 8.63 8.89
Exchange rates – average
2024
2023
2022
2021
2020
Sterling:
Euro 1.18 1.15 1.17 1.16 1.13
US dollar 1.28 1.24 1.24 1.37 1.29
Swiss franc 1.12 1.12 1.18 1.25 1.21
Australian dollar 1.94 1.87 1.78 1.83 1.87
Hong Kong dollar 9.97 9.74 9.71 10.68 10.05
Japanese yen 192.84 175.10 161.25 151.02 137.89
Singaporean dollar 1.71 1.67 1.71 1.84 1.78
Chinese renminbi 9.18 8.81 8.32 8.86 8.86
1. See note 5 for the basis of this calculation. Prior year comparatives have been restated following the simplification of the Company’s dual share class structure in
2022.
2. Dividends per share are those amounts approved by the shareholders to be paid within the year on a per share basis to the shareholders on the register at the
specified dates. Prior year comparatives have been restated following the simplification of the Company’s dual share class structure in 2022.
3. Net assets per share are calculated by using the actual number of shares in issue at the year-end date. Prior year comparatives have been restated following the
simplification of the Company’s dual share class structure in 2022.
Five-year consolidated financial summary
176 Schroders Annual Report and Accounts 2024
Climate-related
financial
disclosures
Our climate-related financial disclosures are introduced on
pages 24 to 25. This section provides additional details on our
climate-related financial disclosures, including our strategy,
governance, risk management, and metrics and targets.
Strategy
Our sustainability strategy is embedded in our business. Our
strategic and financial planning process includes an assessment
of any changes needed to respond to climate-related risks and
opportunities. Read more on our climate change strategy and
targets on pages 24 to 25.
Risks and opportunities
We view the consideration of sustainability as fundamental to
our fiduciary responsibilities to deliver long-term returns. The
decarbonisation of the global economy presents various risks
and opportunities. As a result of our climate change strategy,
we expect the assets we invest in will be less exposed to the risks
of the transition. Each investment desk considers climate-related
risks and opportunities, which is reviewed as part of our internal
annual accreditation.
The approach to identifying, assessing and managing climate risks
and opportunities differs depending on the category of asset class
and business:
– For our Public Markets business, where a growing volume of
data is available to assess companies, models support our
investment teams in identifying climate-related risks and
opportunities, augmenting their own company and industry
insights.
– For our Schroders Capital business, data is typically more sparse
and we rely more on our knowledge of, and engagement with,
portfolio companies to assess climate-related risks and
opportunities.
– For our Wealth Management business and multi-manager
teams, weassess third-party managers on their alignment to
the Paris Agreement and the extent to which they consider
climate-related risks and opportunities in their investments.
For our own operations, we identify and assess climate-related
risks and opportunities by conducting an annual inventory of all
relevant GHG emissions, monitoring transition risks and assessing
physical risks using third-party risk analytics. Our key operational
risks and opportunities are managed by the relevant business
functions, supported by the Corporate Sustainability team.
The following tables outline the potential climate-related risks and
opportunities that could have a material financial impact on the
organisation, along with the time horizons in which we expect
them to materialise.
– Short term: 0–1 year. The current reporting period, which covers
existing activities to manage climate risks and opportunities.
– Medium term: 1–5 years. Aligns with our strategic planning,
business forecasting, and viability assessment. It also reflects
the typical investment duration of our clients. Most of the
climate transition risks and opportunities identified will
materialise in this timeframe.
– Long term: 5–10 years. Reflects the period in which we expect
material changes in the climate exposures of investee
companies, including as a result of our engagement with their
management teams.
– Extended long term: 10+ years. The physical impacts of climate
change will intensify and the level of political action to address
climate change will become clearer. Our business may be
influenced by different climate scenarios over this extended
timeframe.
Most of the climate-related risks and opportunities disclosed
emerge across all time horizons; however, we have indicated
the time horizon we consider most significant for each risk or
opportunity. For the impact ratings, we have made basic
assumptions across the different temperature scenarios,
recognising that multiple factors could influence different
impact outcomes.
This analysis and framework support our ongoing strategic and
business model resilience regarding our key risk of “sustainability
including climate change”, and the appropriate mitigating actions.
Time horizon
Impact rating
Short term: 0–1 year
l Low
Medium term: 1–5 years
l Medium
Long term: 5–10 years
l High
Extended long term: 10+ years
Climate risks
Transition:
“Market
risk”
Failure to establish climate
products to meet client demand,
resulting in loss of market share
and reduced revenues
Medium
l l l
Qualitative We conduct client surveys, for institutional
and retail clients, to assess product demand.
We have developed a climate product
framework, aligning our public and private
market products with client decarbonisation
objectives.
Transition:
“Reputation”
Client perception that our
position on sustainability differs
to theirs, or that we are not
managing climate risks or
opportunities appropriately,
resulting in a reduction in AUM
Medium
l l l
Qualitative Volume and sentiment of coverage in media
publications across all markets in which we
operate and on social media is measured
and monitored on an ongoing basis. It is
reported to our Group Risk Committee and
Audit and Risk Committee. We take
appropriate action to address areas that
either have or may result in impaired
reputation.
Risk Description and business impact Timeframe
Impact
Assessment Actions to mitigate risk1.5°C 2°C 3°C
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
177 Schroders Annual Report and Accounts 2024
Transition:
“Policy and
legal risk”
Regulatory breaches due to the
increasing volume, complexity
and scope of climate regulations
and legal action arising from e.g.
anti-ESG legislation, resulting in
fines and reputational damage
Medium
l l l
Qualitative We assess the impact of new climate
regulation and implement a suitable
operating model with processes and
controls.
Transition:
“Policy and
legal risk”
New climate regulations impact
investee company valuations,
resulting in reduced profitability
of investment portfolios
Medium
l l l
Quantitative We have developed a climate insights
dashboard for our investment teams,
providing insights into the transition risks
and opportunities their portfolio companies
are exposed to. This includes assessments
of a company's exposure to potential
measures such as the introduction of a
carbon tax.
Physical:
“Acute”
Extreme weather events
impact investee companies
and their value chains,
affecting company valuations
and reducing the profitability
of investment portfolios
Medium
l l l
Quantitative Where data is available, we undertake
scenario analysis to assess the exposure
of our investments to the physical risks of
climate change. We assess our own global
office sites using a physical risk analysis
model.
Physical:
“Chronic”
Long-term climate change
(e.g., temperature rise, sea-
level rise) impacts investee
companies and their value
chains, affecting company
valuations and reducing the
profitability of investment
portfolios
Extended
long
l l l
Quantitative Where data is available, we undertake
scenario analysis to assess the exposure
of our investments to the physical risks of
climate change. We assess our own global
office sites using a physical risk analysis
model.
Risk Description and business impact Timeframe
Impact
Assessment Actions to mitigate risk1.5°C 2°C 3°C
Time horizon
Impact rating
Short term: 0–1 year
l High
Medium term: 1–5 years
l Medium
Long term: 5–10 years
l Low
Extended long term: 10+ years
Climate opportunities
Opportunity Description and business impact Timeframe
Impact
Assessment Actions to take advantage of the opportunity 1.5°C 2°C 3°C
“Products
and
services”
Climate mitigation investment
strategies (e.g., renewable
infrastructure and/or climate
technology) are developed to
meet client demand, resulting
in increased market share and
revenues
Short–
medium
l l l
Qualitative We develop investment strategies to help
clients achieve their sustainability goals,
focusing on themes arising from the net
zero transition, including the global energy
transition strategy or Schroders Greencoat,
our renewable infrastructure management
business.
“Products
and
services”
Climate adaptation investment
strategies (e.g., flood defences
or nature-based solutions) are
developed to meet client
demand, resulting in increased
market share and revenues
Medium–
long
l l l
Qualitative We develop investment strategies to help
clients achieve their sustainability goals,
focusing on investing in infrastructure and
technologies that aim to protect from the
physical impacts of climate change, such as
the sustainable food and water strategy.
“Market”
and
“Reputation”
Positive perception of our
climate capabilities and
solutions place us in a
favourable position to serve
clients’ climate commitments,
leading to increased demand
and revenues
Medium
l l l
Quantitative We view sustainability as an important
source of potential long-term investment
performance. Our new tools help investment
teams assess companies' exposures to the
net zero transition, and we have established
a decarbonisation group to support clients'
investment objectives.
Climate-related disclosures continued
178 Schroders Annual Report and Accounts 2024
Our climate
strategy
Our climate change strategy covers both the investments
we manage and our own operations, leveraging four key
capabilities: our insights, ourinfluence, our innovation, and
our ability to inspire others. A more detailed description of
these levers of action can be found on our climate change
strategy diagram on pages 24 to 25.
Investing sustainably
The investments wemanage
1 Insights
2 Influence
3 Innovate
Corporate sustainability
Our own operations
4 Inspire
1
Insights: Measure and manage exposure
in our clients’ investment portfolios
In 2024, both our near-term and long-term targets for our in-
scope
1
assets are broadly on track against our linear target
pathways. Our mid-term Scope 1 and 2 temperature score was
2.4°C, while our Scope 1, 2 and 3 temperature score in the long-
term was 2.8°C.
The investments we manage are exposed to climate risks and
opportunities and the net zero transition. This exposure is not
consistent across asset class, region or sector, so being globally
diversified puts us in a strong position to identify opportunities.
Our exposure to a wide range of asset classes means we cannot
take a single approach to integrating climate-related risks and
opportunities, although we apply consistent principles and
frameworks as far as possible. These frameworks cover Schroders’
public markets, private markets and wealth investments. Our ESG
Accreditation framework assesses how all in-scope
2
investment
desks consider climate risks and opportunities within their
investment processes, in a way that is appropriate to their asset
class.
In 2024, we developed a Net Zero Alignment framework which
could be applied to individual investments and aggregated to
portfolio level across different asset classes. It is designed to
assess the extent to which a company or asset is aligned to global
decarbonisation goals based on its targets, actions and progress.
We create a set of data and criteria for each investment type. We
also create a maturity scale system to rate each investment type,
providing a view of the maturity and strength of their climate
strategies, ranging from “not aligned”, “aligning”, “aligned” through
to “achieving net zero”.
The framework has been established for five main asset class
types: listed equities and corporate bonds; private equities and
corporate debt or loans; externally managed funds; and sovereign
bonds, with further asset classes, such as real assets, planned.
2024 scenario analysis findings
Climate scenario analysis can be valuable tool for better
understanding a range of possible future states. It can inform
investment decision-making and strategy for enhancing risk-
adjusted returns, in light of expected climate-driven changes to
the economy. We have analysed the exposure of our investment
holdings to physical and transition climate risks under a range of
climate scenarios. For the analysis shown below, we used Morgan
Stanley Capital International’s (MSCI) aggregated Climate Value-at-
Risk (VaR) analysis, which combines physical and transition impacts
under three representative temperature pathways. Scenarios vary
from an orderly transition to net zero, limiting the global
temperature rise to 1.5°C by 2050 through strict climate policies
and innovation, to scenarios where climate change mitigation fails
and temperatures rise further.
The scenarios used are not intended to be predictions of the
future, but rather highlight the risks and opportunities from
different possible outcomes. The models assume no change or
adaptation from companies over time. This analysis is based on a
snapshot of current holdings and does not consider action to
mitigate risk, such as engagement or portfolio changes. The
analysis is based on our exposure to investments in publicly listed
equity and corporate bonds. They are referred to here as “covered
investments”.
Under the lens of aggregated climate VaR
3
in Figure 1, our
covered investments are most exposed to climate risks under a
1.5°C scenario, with a potential impact of −7.1% of current market
value. This impact diminishes slightly under 2°C (−4.4%) and 3°C
(−3.5%) scenarios. In general, the model shows that transition risks
are greater than physical risk. It is important to note that the
model outputs are one view of the world and do not necessarily
reflect the potential longer-term physical implications of climate
change, particularly given the complex and connected nature of
physical risks, such as the catalytic effect of tipping points. The
horizontal lines in Figure 1 represent the aggregated climate VaR
of the covered investments, while the columns represent the value
for each individual sector. There are marked differences in the
profiles of different sectors of the economy, with aggregated
climate risk becoming progressively more concentrated in sectors
such as materials and energy under more aggressive transition
scenarios.
The negative implications of physical climate impacts are
outweighed by the transition risk impacts under the stringent
policy scenario that will be needed to deliver global climate goals.
The chart in Figure 2 summarises the sector exposures in a high-
risk scenario for both physical and transition risks. The size of the
bubbles represents the share of our in-scope AUM invested in that
sector.
Climate scenario analysis is more challenging for our private
markets business, where a consistent quantitative approach is not
feasible. Each asset class integrates climate differently, based on
how climate change risks or opportunities impact investments and
the availability of data and methodologies. Proprietary
sustainability scorecards inform this approach, with climate
change categories weighted based on their materiality for specific
sectors, regions or asset types, and contribute to the overall ESG
score for each investment.
1. Directly managed listed equity, corporate bonds, real estate investment trusts, and exchange-traded funds.
2. In-scope investment desks are those that are managing assets. Some desks operating on an advisory basis choose to accredit voluntarily. For certain businesses
acquired more recently, we have not yet accredited the integration of ESG factors into investment decision-making. A small portion of our business where the
integration of ESG factors is not practicable or possible is also excluded, for example, certain legacy businesses or investments in the process of being liquidated,
and certain joint venture businesses.
3. Aggregated climate Value at Risk (VaR) is an assessment of climate-related risks and opportunities across different climate scenarios developed by MSCI.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
179 Schroders Annual Report and Accounts 2024
Figure 1. Covered investments exposure to aggregated climate risk, broken down by sector
1
Energy Materials Utilities
Consumer
Staples
Consumer
Discretionary Industrials Healthcare
Real
Estate
Communication
Services
Information
Technology Financials
Aggregated Climate VAR (%)
Net Zero 2050
Delayed Transition
NDCs
Net Zero 2050 Overall
Delayed Transition & NDCs Overall
-70
-60
-50
-40
-30
-20
-10
0
Figure 2. Covered investments physical and transition risk exposure, broken down by sector
2
Transition VAR - Net Zero by 2050 scenario (%)
Physical VAR – worst-case scenario³
(%)
Consumer Discretionary
Materials
Health Care
Consumer Staples
Utilities
Energy
Information Technology
Communication Services
Real Estate
Industrials
Financials
-70
-60
-50
-40
-30
-20
-10
0
10
-20
-15
-10
-5
0
Exposure scale
l
$90bn
l
$9bn
1. Schroders’ aggregated sectoral climate risk analysis using MSCI Climate VaR. Certain information sourced from MSCI. Reproduced by permission.
2. Schroders’ sectoral analysis of extreme physical and transition risk scenarios using MSCI Climate VaR. Certain information sourced from MSCI. Reproduced by
permission.
3. We use the Intergovernmental Panel on Climate Change’s (IPCC) Shared Socioeconomic Pathway (SSP) 3-7.0 to assess physical climate risks. It assumes emissions
close to double due to lack of coordinated global mitigation policy, resulting in global temperature rise exceeding 3.5°C by the end of the century.
2
Influence: Encourage and support
companies to act sustainably
We believe we can most effectively manage climate transition risk
exposure by engaging with the most carbon-exposed companies
among our largest holdings. We consider divestment a failure of
engagement, rather than a starting point for portfolio
decarbonisation. We apply this principle across both listed equities
and corporate bond investments.
Our approach is summarised in a five-point Climate Engagement
and Escalation framework:
1. Climate expectations: the climate objectives we target for large
and medium-sized companies to adopt.
2. Company prioritisation and selection: how we develop our
climate engagement priority list.
3. Monitor progress: how we use our tools to monitor progress
against our climate expectations.
4. Voting: we endorse resolutions that align with our assessment
of our responsibilities to our clients or provide an explanation
for our non-endorsement where they do not.
5. Escalation: where we see no meaningful progress towards our
objectives, we have a framework for escalation.
In 2024, we engaged with 613 companies setting 266 objectives.
The distinct characteristics of private asset investment strategies –
typically longer investment horizons – provide us with an
opportunity to build operational and financial value from
origination to exit. In many cases for private markets, our first goal
is to improve the quality and level of disclosure on climate
exposure, emissions and decarbonisation, or to gain a deeper
understanding of how potential risks have been considered, priced
and mitigated. When we directly own a real asset, we look at how
the asset’s exposure toclimate change can be reduced, how the
asset will evolve toensure its resilience to climate risks, and how
the asset interacts withlocal stakeholders.
Climate-related disclosures continued
180 Schroders Annual Report and Accounts 2024
In Wealth Management, for our direct investments (such as
companies), we adopt the same engagement and escalation
framework as Public Markets. However, given that we are one step
removed from the underlying assets within our indirect
investments (such as funds), our approach is slightly different.
Much like we do for companies, we set climate expectations with
the managers of our funds, but how that expectation is achieved is
different. That means the way we prioritise engagement with
funds also changes, but importantly, the way we systematically
monitor their progress does not. Given that we do not own the
assets directly, we cannot vote on them, but we do have a variety
of other escalation tactics we can use. Finally, if we fail to see
progress, we may divest or limit investment.
3
Innovate: Develop investment products and
innovative solutions to meet clients’ needs
We understand that many of our clients are at different stages of
their net zero transition journeys and have different views of the
climate challenge. An increasing number of our clients have set
their own climate objectives, which has translated into growing
demand for strategies that can help them meet their own goals.
On the other hand, we recognise that climate change is not a
focus or objective for some others, and consideration of climate-
related factors may vary.
A solutions approach to net zero:
1. Lower carbon
Designed for clients with a decarbonisation objective and who
want to invest in core strategies
These strategies target specific emissions reduction, either
relative to a benchmark or on an absolutebasis.
2. Climate action
Designed for clients who want to invest in companies
transitioning to net zero
These strategies invest in companies orassets that are
actively transitioning to a lower-carbon business model
andarereducing their exposure to GHGemissions.
3. Climate solutions
Designed for clients who want to invest in solutions tackling
climate change
These strategies invest in companies that have products and
services that actively contribute to specific climate-related
outcomes through technological development and
innovation.
4
Inspire: Lead by example in our own
corporate actions
Our operational climate change strategy focuses on reducing GHG
emissions and resource use across our operations. We are doing this
by decreasing energy demand, increasing energy efficiency and
transitioning to low-carbon sources of energy. We also aim to reduce
our business travel and engage with our supply chain to encourage
them to set their own science-based targets.
In 2024, our total Scope 1 and 2 GHG emissions decreased by 39%
from the 2019 base year and decreased by 6% compared with 2023.
The SBTi defines a linear annual reduction of 4.2% in GHG emissions
to align with a 1.5°C trajectory. Accordingly, our Scope 1 and 2 GHG
emissions for 2024 should reflect at least a 21% decrease compared
to our 2019 base year emissions. In 2024, we have maintained an
average annual reduction greater than the minimum required, having
already achieved a 39% reduction from 2019 levels.
We have increased the annual sourcing of renewable electricity to
100%, compared with 98% in 2023. This means that, based on our
assessment, we have achieved our target one year ahead of schedule.
Our 2024 figures are in line with the RE100 criteria, which will be
assessed in our 2025 CDP submission. This increase was primarily due
to enhanced purchasing capacity in markets where renewable energy
certificates were previously unavailable.
We continue to develop site-specific net zero action plans and to
attain ISO 14001 Environmental Management System certification
across our largest office sites, as well as transition our company
car fleet to hybrid or fully electric by the end of 2025 to support
these targets.
Our operational Scope 3 value chain emissions (excluding our
financed emissions) are about 39 times larger than our Scope 1
and 2 emissions. As 97% of these Scope 3 emissions relate to
business travel and our supply chain, we have chosen to set
additional voluntary targets for these areas. Business travel
emissions decreased by 39% from the 2019 base year and
increased by 1% compared with 2023. We continue to assess
methods that could reduce these emissions.
Our supplier engagement strategy aims to encourage and support
our suppliers to manage the climate risks and opportunities in
their business models. In 2024, 33% of our suppliers in scope
1
(by
GHG emissions) had set a science-based target. This is a 10%
increase, compared with 2023. We are also seeing progress in the
number of suppliers setting other types of climate targets or
committing to set science-based targets within the next two years.
However, challenges remain including an evolving spend profile,
updated emissions factors, and our limited ability to influence a
large and diverse global supply chain. In 2023, we launched a
Supplier Climate Action Programme, providing advisory support
and online tools to guide key suppliers in setting their own
science-based targets. During 2024, we successfully guided our
first cohort of three strategic suppliers through the process of
setting science-based targets.
1. Includes Scope 3 categories: 1 Purchased goods and services; 2 Capital goods;
and4 Upstream transportation and distribution.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
181 Schroders Annual Report and Accounts 2024
Governance
The Board is responsible for approving the Group’s strategy, which
encompasses our sustainability strategy. The Board has delegated
overall responsibility for the execution of this strategy to the Group
Chief Executive, who has the authority to delegate further. The Group
Chief Executive retains overall responsibility for the delivery of our
strategic objectives. In fulfilling its responsibilities, the Board considers
the interests of our stakeholders, including clients and wider society.
Our Governance framework enables the Board to oversee the climate
and nature-related risks and opportunities that impact our business.
In September 2024, the Board received a sustainability briefing and
was updated on how sustainability trends are influencing our industry,
highlighting climate and nature-related risks and opportunities and
shifts in demand from our clients. This briefing also covered our
response, exploring short- and long-term goals in light of emerging
areas of client interest.The Board also received updates on progress in
key areas including climate change, decarbonisation, biodiversity and
human rights.
At our annual Board strategy meeting, the Board discussed the role of
sustainability and the extent to which it had been embedded within
the Group, particularly within the strategy of Public Markets and
Schroders Capital. Key developments were also noted over the course
of the year, including an update on our approach to the Taskforce on
Nature-related Financial Disclosures
1
recommendations and guidance
as well as the upcoming Corporate Sustainability Reporting Directive
2
.
The Audit and Risk Committee receives reports from management
onkey risks to ensure they are considered at Board level. As
“sustainability risk including climate change” is identified as a key
business risk, the Audit and Risk Committee received information
quarterly to assess how it is being managed. For more information on
the Audit and Risk Committee, see pages 54 to 61.
Sustainability is integrated across our business segments and is
supported by our governance structure via key management
committees and working groups that assess, advise on and oversee
climate and nature-related risks and opportunities.
Our key sustainability management committee is the Group
Sustainability and Impact (GSI) Committee. The GSI Committee
provides advice to the Group Chief Executive to assist him in
discharging his responsibilities regarding sustainability and
impact. The GSI Committee monitors our climate and nature-
related targets with progress reported to the Board (for more
information on our targets, see our Climate Report 2024)
3
. The
obligations of our Climate Transition Action Plan are monitored by
the GSI Committee as part of reviewing our sustainability strategy.
This includes monitoring progress towards our science-based
targets. During 2024, the GSI Committee had four meetings. For
further information on our climate and nature governance
structure, see our Climate Report 2024
3
.
Our remuneration structures reflect the importance ofclimate-
related issues. Executive Directors have sustainability-related
measures included within their annual bonus scorecard. The
measures are reviewed by the Remuneration Committee each year
to align with our key priorities. Performance against these
measures impacts their compensation outcomes. For further
information on our remuneration structure, see the Remuneration
report from page 62.
1. https://tnfd.global/
2. https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/
company-reporting-and-auditing/company-reporting/corporate-sustainability-
reporting_en#legislation
3. www.schroders.com/tcfd
Risk management
Our principal risks are set out on pages 28 to 31. Given the
importance ofclimate-related risks to our business, ‘’sustainability
risk including climate change’’ has been identified as one of our
principal risks. There is anaccompanying risk appetite statement,
approved by the Board, which enables us to provide an
assessment of risk position versus our risk appetite on an annual
basis, while monitoring performance throughout the year.
Climate and nature-related risks are managed in accordance with
thesame “three lines of defence” model we use for all risks. The
headsof each function are ultimately responsible for ensuring that
risks are identified, assessed and managed. Independent
monitoring is carried out by the second line of defence. Internal
Audit provides independent assurance over the operation of
controls. We recognise that climate change in particular is a
pervasive risk across many of our key risk types.
Heads of functions across the Group are responsible for
identifying these risks and assessing the impacts to their business
areas in line with their functional responsibilities.
Metrics and targets
We use a number of metrics and targets to track progress against
ourclimate change strategy to make sure we respond effectively to the
climate-related risks and opportunities facing our business. Please refer
to page 25 for more detail on our climatetargets.
We have developed a dashboard to monitor financed emissions
and portfolio risks. This is incorporated into the investment risk
management processes and includes, among other sustainability
metrics, a product’s carbon footprint weighted average carbon
intensity (WACI) for Scope 1 and 2 emissions.
We recognise that emissions data is frequently based on estimates
orproxy data and, as a result, can provide an imperfect view of
portfolio exposures or risks. The data we rely on can also change
materially from one year to the next, as data quality improves or
estimation methods evolve. We strive to ensure that the data we
use isas accurate as possible, but highlight that any outputs
should be interpreted as approximate and not precise.
Our global operations emissions inventory is reported using the
Greenhouse Gas Protocol standard. We review our operational
data internally and use an environmental accounting tool that
enables us to log targets and track progress. This system employs
the latest relevant emission factors in accordance with the
Greenhouse Gas Protocol.
Our operational GHG emissions and progress towards targets are
externally assured by Incendium Consulting Ltd.
The SBTi requires that targets be reviewed and, if necessary,
recalculated and revalidated at least every five years to reflect
material changes in climate science and business context. We
review our GHG inventory annually and will restate our data or
recalculate our science-based targets as needed.
Climate-related disclosures continued
182 Schroders Annual Report and Accounts 2024
2024 metrics
Our financed GHG emissions for in-scope assets
2019
Metrics
Scope
2024
2023
(base year)
Units
Total carbon emissions
Scope 1 and 2
18.5
22.4
39.1
MtCO
2
e
Scope 3
141.9
149.6
223.1
MtCO
2
e
Carbon footprint
Scope 1 and 2
43.4
53.9
95.5
tCO
2
e/$m invested
Scope 3
331.2
360.3
550
tCO
2
e/$m invested
Weighted average carbon intensity (WACI)
Scope 1 and 2
95.5
105.7
176.7
tCO
2
e/$m invested
Portfolio temperature score
Scope 1 and 2
2.4 °C
2.5 °C
2.9 °C
Celsius
This table includes our Scope 3 category 15 carbon emissions and the implied temperature rise of our entire portfolio across all in-scope
asset classes (listed equities, corporate bonds, real estate investment trusts (REITs) and exchange-traded funds (ETFs)). The table
provides totals for our directly managed and externally managed corporate holdings. Where available, we use the estimates provided by
our data vendor; and where not available, we use our own methodology, which is based on Partnership of Carbon Accounting Financials
(PCAF) principles. The objective of estimation is to provide as complete and representative a picture of portfolio emissions as we believe
is feasible. Carbon and climate datareported by companies is frequently incomplete and based on inconsistent assumptions. This data
forms the basis of our financed emissions calculations, which should be considered estimates rather than precise figures. We have
followed PCAF principles in calculating our financed emissions, but recognise that the underlying data can change materially as reported
data increases and estimation methodologies change.
2024 metrics
Our operational GHG emissions
2019
Greenhouse gas emissions (tCO
2
e)
2024
2023
(base year)
Total Scope 1 emissions
483
661
1,110
Total Scope 2 emissions (location-based)
3,679
3,748
5,718
Total Scope 2 emissions (market-based)
380
504
3,255
Total Scope 1 and 2 emissions (location-based)
4,162
4,409
6,828
Of which UK Scope 1 and 2 (location-based)
2,366
2,725
4,621
Total Scope 1 and 2 emissions (market-based)
863
1,165
4,365
Of which UK Scope 1 and 2 (market-based)
494
625
2,408
Total Scope 3 operational emissions
161,948
136,582
115,048
Metrics
Scope 1 and 2 (location-based) tCO₂e per employee
0.65
0.69
1.27
Global energy consumption (kWhs)
Total energy consumption
17,710,047
18,608,188
26,265,797
Of which UK energy consumption
12,036,727
12,810,625
18,495,195
Streamlined Energy and Carbon Reporting (SECR)
Our 2024 operational metrics provide details on our total operational
GHG emissions andenergy data, in line with the Streamlined Energy
and Carbon Reporting (SECR) requirements. These disclosures have
been incorporated by reference in the Directors report on page 86.
For more information on our operational emissions, please refer
to our Climate Report 2024
1
.
1. www.schroders.com/tcfd
Energy-efficiency measures
We are committed to minimising the environmental impact of our
operations and continuously improving our environmental
performance. We are doing this by reducing energy demand and
switching to low-carbon electricity sources. Our office energy-efficiency
measures in 2024 included upgrading lighting equipment, replacing
gas catering appliances with electric equivalents, and commissioning a
solar panel installation at the Schroders Campus in Horsham.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
183 Schroders Annual Report and Accounts 2024
Governing our non-financial
information
The table below outlines Schroders’ policies across certain key, non-financial areas, with links to where further information on these
topics can be found in this report.
Description of policies and policy outcomes
1
Climate and
environment
Further information
on pages 22 to 23, 24 to
25, and 177 to 183.
We have made a number of climate and nature-related commitments to support achieving net zero by 2050,
or sooner. Our Group Climate Change Position Statement and Group Nature and Biodiversity Position
Statement outline our position in relation to environmental management, and on nature and biodiversity, for
the investments we manage and our operations.
Employees
Further information
on pages 16 to 17, 53,
and 62 to 72.
We seek to cultivate a purpose-led, high-performing culture that is inclusive and empowers all to have
theopportunities to grow. Our guiding principles and values, and policy on Board diversity serve to achieve
this outcome.
Our Directors’ Remuneration Policy outlines our approach for setting Directors’ remuneration.
Furthermore, our Group Whistleblowing Policy outlines the process for staff and third parties to report any
concerns inconfidence and anonymously.
We have a number of internal policies and standards that are not published externally. These policies cover our
commitment to providing equal opportunities in employment and to prevent all forms of discrimination and sexual
harassment as well as to encourage appropriate conduct and regulatory compliance.
Social matters
Further information
on pages 17 and 32 to 33.
Community investment is a core part of our culture. We have an internal policy that provides a framework for
volunteering at Schroders.
Human rights
Further information
on pages 32 to 33.
Schroders is committed to upholding human rights. Our Group Human Rights Position Statement outlines
our stance on respecting human rights.
Our Modern Slavery Statement includes details of the policies, processes and measures we have in place to
assess and manage modern slavery risks across our business.
Anti-bribery and anti-
corruption
Further information
on pages 28 to 29 and 54
to 61.
We maintain a strict policy of zero tolerance towards acts of bribery and corruption. Our utmost priority is to
safeguard the interests of our clients, shareholders, employees, third-party vendors and the wider community
from any form of financial crime.
To reinforce this commitment, we have implemented a comprehensive set of internal policies, covering aspects
such as financial crime (including bribery and corruption, inducements, money laundering, terrorist financing,
tax evasion, proliferation financing, fraud and sanctions), gifts and entertainment, and conflicts of interest, all of
which unequivocally prohibit any individual associated with our organisation from engaging in activities that
promote, endorse or facilitate financial crime.
Group tax strategy: We aim to comply with both the spirit and letter of the law and are committed to
conducting our tax affairs in an open and transparent way. Our tax strategy, available at
www.schroders.com/tax-strategy, sets out our approach to tax matters across the Group more generally. This
strategy is reviewed and approved annually by the Audit and Risk Committee. We disclose our total tax
contribution, which shows the total amount of tax we pay and collect each year, at
www.schroders.com/tax-contribution.
The following policies and statements apply to multiple categories noted above:
Our Group Sustainable Investment Policy establishes our overall approach to sustainable investing. It outlines the governance
structure for managing sustainable investment activities in line with our guiding principles. The policy applies across our Public
Markets, Schroders Capital and Wealth Management businesses and covers themes such as climate and environment (including
nature and biodiversity) and human rights.
Our Engagement Blueprint outlines our principles towards engaging with investee companies. It includes measures relating to
climate and environment (including nature and biodiversity), human rights, employees and corporate governance.
Our Supplier Code of Conduct outlines the standards and behaviours we expect from our suppliers, including on climate and
environment, employees, human rights and anti-bribery and anti-corruption.
Our Statement of Compliance with the UN Principles of Responsible Investment further demonstrates our commitment to
environmental, social and governance factors.
1. Across Schroders, policies and statements of intent are in place to foster consistent governance on a range of issues. For the purposes of the non-financial
information statement, these include, but are not limited to, the policies and statements detailed in this report.
Governing our non-financial information
184 Schroders Annual Report and Accounts 2024
Glossary
About our business areas
Schroders Capital
Gives investors access to opportunities in private markets,
such as real estate, private equity and infrastructure, as well
as alternatives.
Solutions
Provides complete solutions and partnerships, including
liability offsets and risk mitigation.
Mutual Funds
Offers retail and institutional clients access to our investment
capabilities through intermediary networks.
Institutional
Makes investment components available directly to
institutions andincludes sub-advisory mandates.
Wealth Management
Provides wealth management and financial planning for
ultra‑high‑net-worth, high-net-worth and affluent individuals
and charity clients as well as family offices and advisers.
Alternative Performance Measures
An Alternative Performance Measure (APM) is a financial
measure ofhistorical or future financial performance, financial
position, or cashflows, other than a financial measure defined
or specified inthe applicable financial reporting framework.
The Group’s APMs aredefined below.
Operating compensation ratio
Operating compensation costs divided by net operating
income. Bytargeting an operating compensation ratio, we
align the interestsof shareholders and employees.
Operating earnings per share
Operating profit after tax excluding non-controlling operating
earnings divided by the relevant weighted average number
of shares(see note 5). The presentation of operating earnings
per share provides transparency as to our operational
activities to aid understanding of the financial performance.
Payout ratio
The total dividend per share in respect of the year (see note 6)
divided by the basic operating earnings per share.
Active management
The management of investments based on active decision-making
rather than with the objective of replicating the return of an index.
Adjusted operating profit/adjusted operating EPS
In 2025 we will redefine the structure of our income statement
and associated performance measures. The most significant
change under the revised presentation is that central costs,
acquisition related items and one-off costs are to be included
within statutory operating expenses and operating profit. We will
separately present an adjusted operating profit measure that
excludes acquisition related items and one-off costs. For more
information see our year-end press release. www.schroders.com/
results2024
Adjusted cost:income ratio
See adjusted operating profit/adjusted operating EPS.This is
adjusted operating expenses as a ratio of adjusted net operating
income.
Annualised net new revenue
The net fee income that would be earned over a one-year
timeframe if the net new business was all transacted on the same
day and there were no market movements or other changes to
assets under management or fee rates over that year. It is
calculated as gross new funds from clients multiplied by the
applicable net fee margin for each flow, less gross funds
withdrawn multiplied by the applicable net fee margin for each
flow. This measure provides additional information to better
assess the impact of net new business on the Group’s net
operating revenue. Performance fees, carried interest and
transactional fees are not included.
Assets under management (AUM)
AUM represents the aggregate value of client assets managed,
advised or otherwise contracted, from which the Group, including
joint ventures and associates, earns operating revenue.
Asset Management AUM includes investment management, OCIO,
fiduciary management and liability management services.
For Schroders Capital Private Equity, the aggregate value of assets
managed includes client commitments on which we earn fees.
This is changed to the lower of committed funds and net asset
value, typically after seven years from the initial investment, in line
with the fee basis.
Wealth Management AUM comprises the aggregate value of
assets where Schroders provides advice or discretionary
management (Advised AUM), platform services (Platform AUM)
and investment management services (Managed AUM). Advised
AUM comprises assets where Schroders provides discretionary or
advisory management services including assets where the client
independently makes investment decisions. Platform AUM
represents the value of assets on the Benchmark Fusion platform.
The Fusion platform enables financial advisers to administer and
manage their clients’ accounts by providing dealing and
settlement services, valuation statements and custody services
through a third party. Managed AUM includes assets where the
client invests in Schroders’ funds.
Basis point (bps)
One one-hundredth of a percentage point (0.01%).
Carried interest
Carried interest is similar to the performance fees we may earn
inour Public Markets business, but is part of Schroders
Capitalfee structures.
CDP
CDP is a global non-profit that runs an environmental disclosure
system for companies, capital markets, cities, states and regions to
manage their environmental impacts.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
185 Schroders Annual Report and Accounts 2024
Client Group
The Client Group brings together our key client-facing functions,
including Sales, Client Servicing, Product and Marketing.
Client investment performance
Client investment performance is a measure of how investments
are performing relative to a benchmark or other comparator. As
an active asset manager, we prioritise consistently delivering
positive investment outcomes for our clients, which is why our
three-year investment performance is a key performance indicator
for the Group. Itis calculated internally by Schroders to give
shareholders and financial analysts general guidance on how our
invested assets are performing. The data is aggregated and is
intended to provide information for comparison with prior
reporting periods only. It is not intended for clientsor potential
clients investing in our products. All calculations forinvestment
performance are made gross of fees with the exception of those
for which the stated comparator is a net of fees competitor
ranking. When a product’s investment performance is disclosed in
product or client documentation, it is specific to the strategy or
product. Performance will either be shown net of fees at the
relevant fund share-class level or it will be shown gross of fees
with a fee schedule forthe strategy supplied.
The calculation includes applicable assets under management that
have a complete track record over the one-year,three-year and
five-year reporting periods, respectively.
Applicable assets under management does not include our joint
ventures and associates and excludes £87.1 billion of assets,
principally comprising those managed by third parties or held
on an execution-only basis, the majority of assets managed by
Schroders Capital Real Estate Hotels, non-discretionary assets and
assets held on a custody-only basis as well as Wealth Management
platform assets on the Benchmark Fusion platform.
Performance is calculated relative to the relevant comparator for
eachinvestment strategy, as summarised below. These fall into
one offour categories, the percentages for each of which refer to
the three-year calculation:
– For 71% of assets included in the calculation, the comparator
is the relevant benchmark.
– If the relevant comparator is to competitor rankings, the relative
position of the fund to its peer group on a like-for-like basis
is used to calculate performance. This applies to 11% of assets
in the calculation.
– Assets for which the relevant comparator is an absolute return
target are measured against that absolute target. This applies
to 13% of assets in the calculation.
– Assets with no specific outperformance objective, including
those with a buy and maintain objective, are measured against
a cash alternative, if applicable. This applies to 5% of assets
in the calculation.
Clients
Within Asset Management, we work with institutional clients,
including pensions funds, insurance companies and sovereign
wealth funds, aswell as intermediaries, including financial advisers,
private wealth managers, distributors and online platforms. We
also provide a range ofwealth management services to private
clients, family offices andcharities.
At times, “client” is used to refer to investors in our funds or
strategies, i.e. the end client.
We are increasingly focused on building closer relationships with
the endclient, whose money is invested with us, often via an
intermediary orinstitution.
Defined benefit (DB) pension scheme
A pension benefit where the employer has an obligation to provide
participating employees with pension payments that represent
a specified percentage of their salary for each year of service.
Defined contribution (DC) pension scheme
A pension benefit where the employer’s contribution to an
employee’s pension is measured as, and limited to, a specified
amount, usually a percentage of salary. The value of the “pension
pot” can go up or downdepending on how the investments
perform.
Dry powder and non-fee-earning dry powder
Within Schroders Capital, fundraising comprises new funds
invested into our products and contractual commitments from
clients to invest their capital in the future. These commitments are
called upon once relevant investments have been identified and
the capital is to be deployed. Uncalled commitments are referred
to as dry powder. Depending on theapplicable fee arrangements,
dry powder may or may not attract management fees. Uncalled
commitments that do not attract fees are referred to as non-fee-
earning dry powder.
Employee benefit trust
A type of discretionary trust established to hold cash or other
assets forthe benefit of employees, such as to satisfy share
awards.
EPS
Earnings per share.
ESG
Environmental, social and governance.
Fiduciary management
A form of investing where pension scheme trustees delegate
some or allof the investment decisions to a third-party “fiduciary
manager”. Thisreduces the day-to-day governance burden on
trustees. Fiduciary management offerings will often include
investment advice and a portfolio which consists of a growth
solution and a liability-driven investment (LDI) solution.
Financed emissions
Absolute carbon emissions that banks and investors finance
through their loans and investments. Schroders’ in-scope financed
emissions include all mandatory asset classes required by the
Science Based Targets initiative, which consist of our listed equity,
corporate bond, realestate investment trust and exchange-traded
fund exposure.
Fundraising
This is a term used in Schroders Capital comprising new funds
invested into our products and contractual commitments from
clients to invest their capital in the future.
Greenhouse gas (GHG)
A gas that absorbs and emits radiation in the atmosphere,
contributing to the greenhouse effect. The seven gases covered by
the United Nations Framework Convention on Climate Change
(UNFCCC) – carbon dioxide (CO
2
), methane (CH
4
), nitrous oxide
(N
2
O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
sulphur hexafluoride (SF
6
), and nitrogen trifluoride (NF
3
). These
gases trap heat close to the surface of the earth and are a key
cause of climate change.
Group ExCo
The Group ExCo comprises senior management who have primary
responsibility for the delivery and execution of the Group's
strategy, and for operational performance. It is an advisory
committee to the Group Chief Executive.
GRC
Group Risk Committee.
Glossary continued
186 Schroders Annual Report and Accounts 2024
Highly rated employees
Employees who have received an exceptional rating in their annual
performance review.
ICAAP
Internal Capital Adequacy Assessment Process.
IFRS
International Financial Reporting Standards.
ILAAP
Internal Liquidity Adequacy Assessment Process.
Investee companies
The companies we invest in on behalf of our clients.
Investment returns
The increase in AUM attributable to investment performance,
market movements and foreign exchange.
In-scope assets
Current in-scope asset classes for SBTi include directly managed
listed equities, corporate bonds, real estate investment trusts and
exchange-traded funds.
Liability-driven investment (LDI)
A form of investing where the main goal is to gain and maintain
sufficient assets to meet known liabilities, both current and future.
This form of investment is most prominent for defined benefit
pension schemes.
Life Company
Schroder Pension Management Limited, a wholly owned
subsidiary, which provides investment products through a life
assurancewrapper.
Longevity
The indicative period, expressed in years, that a client invests their
assets with us. This is calculated annually as the average AUM
divided by gross outflows for the year. We typically present a
three-year rolling average in order to allow for short-term
fluctuations.
MSCI ESG rating
The Morgan Stanley Capital International ESG rating is designed
to measure a company’s resilience to long-term, industry material
ESGrisks.
Net new business (NNB)
New funds from clients less funds withdrawn by clients. This is
also described as net inflows (when positive) or net outflows
(when negative).
Net operating income
A sub-total comprising net operating revenue, share of profit
of associates and joint ventures, and other operating income.
Net operating revenue
A sub-total consisting of revenue less cost of sales as defined
in note 2 ofthe financial statements.
Net operating revenue margins
Net operating revenue excluding performance fees and net
carried interest divided by the relevant average AUM.
Net zero
A state of balance between greenhouse gas emissions produced
and greenhouse gas emission removals. According to the SBTi,
achieving netzero refers to reducing emissions by a minimum of
90% by 2050 andneutralising any remaining emissions through
carbon removals.
Operating profit
Operating profit represents the profit before tax generated by the
Group’s Asset Management and Wealth Management operating
segments. It excludes central costs, gains and losses from capital
management activities, as well as acquisition and restructuring
relatedcosts.
Other operating income
Other operating income primarily relates to gains and losses on
co-investments and foreign exchange.
Performance-based revenues
Includes fee types such as performance fees and net carried
interest income. Performance fees are earned when contractually
agreed performance levels are exceeded.
Physical risks
Reflect the risks associated with long-term changes in the climate
and with more extreme weather events which may impact future
business activities. In particular, the impacts on the value of
investments held on behalf of clients, caused by direct or indirect
physical climate changes and events; risk to our businesses and
property assets; and risk to our suppliers and other partners
caused by climate events.
Pillar 1, 2 and 3
Pillar 1 sets rule-based minimum capital standards. Pillar 2
establishes the approach to supervisory review and the setting
of individual capital requirements, taking into consideration the
firm’s own assessment of how much capital is required to support
the business. Pillar 3 sets disclosure requirements, which aim to
promote market discipline byenabling market participants to
access information relating to regulatory capital and risk
exposures. See www.schroders.com/pillar3.
Platforms
Platforms in the UK savings market offer a range of investment
products, such as unit trusts, individual saving accounts (ISAs),
unit-linked life and pension bonds and self-invested personal
pensions (SIPPs) to facilitate investment in many funds from
different managers through one portal.
Portfolio temperature score
The method of interpreting an asset’s or portfolio’s exposure to
abstract climate risk, and communicating it as an intuitive implied
temperature score, measured in degrees Celsius. The temperature
score is calculated in accordance with the CDP-WWF temperature
rating methodology based on the carbon emissions reduction
targets set by the companies in our portfolios and is intended to
serve as an indication of our portfolio’s alignment to different
levels of global warming.
Principal Shareholder Group
The Principal Shareholder Group comprises a number of private
trustee companies (and investment companies controlled by those
trustee companies), a number of Schroder family individuals, and a
Schroder family charity, which, directly or indirectly, are
shareholders of the Company. The Principal Shareholder Group
currently holds 711,068,586 ordinary shares (44.28% of the issued
ordinary shares excluding treasury shares) in the Company.
Renewable energy
Energy collected from resources that are naturally replenished,
such as sunlight, wind, water and geothermal heat.
Science Based Targets initiative (SBTi)
The Science Based Targets initiative defines and promotes best
practice in science-based target setting. Offering a range of target-
setting resources and guidance, the SBTi independently assesses
and approves companies’ targets in line with its criteria.
Strategic report
Governance
Financial statements
Shareholder and
sustainability information
187 Schroders Annual Report and Accounts 2024
Science-based target
A science-based target provides a clearly defined pathway for
companies to reduce their greenhouse gas emissions. The target
is considered “science-based” if it is in line with what the latest
climate science deems necessary to meet the goals of the Paris
Agreement – limiting global warming to well below 2°C above pre-
industrial levels and pursuing efforts to limit warming to 1.5°C.
Scope 1 / Scope 2 / Scope 3
See GHG. Scope 1 is direct greenhouse gas emissions from
sources owned or controlled by the company, such as emissions
from gas, oil and company vehicles. Scope 2 is indirect
greenhouse gas emissions from sources owned or controlled by
the company, such as emissions from consumption of purchased
electricity, heat or steam. Scope 3 isindirect greenhouse gas
emissions from sources not owned or controlled by the company,
such as emissions from business travel orinvestments.
Seed and co-investment capital
Seed capital comprises an initial investment put into a fund or
strategy to allow it to develop a performance track record before it
is marketed topotential clients. Co-investment comprises an
investment made alongside our clients.
Senior management
Senior management includes members of the Group ExCo, the
direct reports of the Group ExCo (ExCo-1) and the direct reports
one level below that (ExCo-2), in each case excluding
administrative and other ancillary roles.
Sustainability engagement
Sustainability engagement is the process by which we gain
insights into our investee companies’ sustainability risks and
opportunities and how they are managed. We seek to influence
our investee companies by engaging with management teams to
encourage and support them in areas where improvement may be
required to deliver long-term value.
SustainEx™
Schroders’ proprietary tool used to estimate the net social and
environmental “cost” or “benefit” of an investment portfolio having
regard to certain sustainability measures in comparison to a
product’s benchmark where relevant. The aim of the model is to
enable our investors to assess the investments they may make,
having regard to such measures, and the risks those issuers
potentially face if the social and environmental “costs” they create
were to be reflected in their own financial costs.
tCO
2
e
Tonnes of carbon dioxide (CO
2
) equivalent. A unit of measurement
that isused to standardise the climate effects of various
greenhouse gases on the basis of their global warming potential.
Total capital requirement
The requirement to hold the sum of Pillar 1 and Pillar 2A capital
requirements. Pillar 2A capital requirements are supplementary
requirements for those risk categories not captured by Pillar 1,
depending on specific circumstances of a company, as set out
by thePrudential Regulation Authority.
Total dividend per share
Unless otherwise stated, this is the total dividend in respect of
the year, comprising the interim dividend and the proposed final
dividend. This differs from the IFRS dividend, which comprises the
prior-year final and current-year interim dividends declared and
paid during the year.
Transition risks
Reflects the risks stemming from changes in the economy that will
be required to limit long-run temperature rises, including higher
or lower rates of demand growth, costs or risk profiles, to
companies, sectors or asset classes. These may include new or
enhanced corporate climate change laws and regulations, changes
in investor demand for climate-focused products, and more
volatility in financial markets as asset prices adjust to reflect the
increasing regulation of carbon emissions.
Morgan Stanley Capital International (MSCI) data
Certain information contained herein (the “Information”) is
sourced from/copyright of MSCI Inc., MSCI ESG Research LLC,
or their affiliates (“MSCI”), or information providers (together
the “MSCI Parties”) and may have been used to calculate
scores, signals, or other indicators. The Information is for
internal use only and may not be reproduced or disseminated
in whole or part without prior written permission. The
Information may not be used for, nor does it constitute, an
offer to buy or sell, or a promotion or recommendation of, any
security, financial instrument or product, trading strategy, or
index, nor should it be taken as an indication or guarantee of
any future performance. Some funds may be based on or
linked to MSCI indexes, and MSCI may be compensated based
on the fund’s assets under management or other measures.
MSCI has established an information barrier between index
research and certain Information. None of the Information in
and of itself can be used to determine which securities to buy
or sell or when to buy or sell them. The Information is
provided “as is” and the user assumes the entire risk of any
use it may make or permit to be made of the Information. No
MSCI Party warrants or guarantees the originality, accuracy
and/or completeness of the Information and each expressly
disclaims all express or implied warranties. No MSCI Party
shall have any liability for any errors or omissions in
connection with any Information herein, or any liability for any
direct, indirect, special, punitive, consequential or any other
damages (including lost profits) even if notified of the
possibility of such damages.
The paper used in this report is certified in accordance with the FSC® (Forest Stewardship Council®) and is recyclable and acid-free. It is
made from 100% recycled post-consumer waste to FSC® standards and is manufactured without Chlorine bleaching (ECF) Pureprint Ltd is
FSC certified and ISO 14001 certified showing that it is committed to all round excellence and improving environmental performance is an
important part of this strategy. Pureprint Ltd aims to reduce at source the effect its operations have on the environment and is committed to
continual improvement, prevention of pollution and compliance with any legislation or industry standards.
Pureprint Ltd is a Carbon / Neutral® Printing Company.
Report produced by Black Sun Global, part of the Positive Change Group.
Glossary continued
188 Schroders Annual Report and Accounts 2024
