Schroders Private Banking Kate Leppard Responsabile Team Relationship Management
Organisational strength Schroders Private Bank Bermuda Cayman Islands Mexico City New York Philadelphia Toronto Guernsey Jersey Copenhagen Frankfurt Geneva Lisbon London Luxembourg Madrid Milan Padua Paris Rome Rotterdam Stockholm Vienna Zurich Beijing Hong Kong Jakarta Seoul Shanghai Singapore Sydney Taipei Tokyo 100% owned by Schroders plc Exclusive focus on advising and managing private wealth Global client base managed from London, the Channel Islands and Switzerland, Italy, Spain and Singapore * Financially stable 12% of Group earnings Capital base 199.7 million Dubai 9.32 billion investment funds under management Buenos Aires São Paulo Private Banking Offices As at 30 th September 2007 * Operational 2008
Our competitive position We combine the best aspects of: A global investment and banking group: Global Investment Research Capabilities Access to the best financial intelligence Financial stability Global Asset Managers UK Boutique Wealth Managers A boutique high net worth wealth manager: Independent outlook Genuinely personal service Valued clients Schroders Private Bank Schroders Private Bank combines all the benefits of being with a Global Financial Institution with the culture of a wealth management boutique.
Range of services Investment Cash Management Superior interest rates Credit quality Liquidity Portfolio Management Discretionary Advisory Execution-only Manager Selection Access to the best of Schroders Top external talent Strategic Advice Asset allocation Banking Custody High quality counterparties Efficient administration Lending Property Financial assets Risk Management Structured Investments Capital Protected Investments Geared Investments Structured Deposits Hedging Currency Equity Asset diversification London Channel Islands Zurich Frankfurt Madrid Milan Singapore London Channel Islands Zurich London Channel Islands Zurich
How we develop business Establish networks with other HNW Advisers Corporate Financiers Lawyers Property/Land Agents Accountants Client IFA s Trustees Investment Consultants Approach clients directly Ask our existing clients for referrals
The opportunity set EU HNW market by size January 2008 UK Germany France Italy Spain Netherlands Belgium Luxembourg Sweden Poland Austria Greece Denmark Portugal Finland Ireland Czech Republic Romania Hungary Slovakia Bulgaria Lithuania Slovenia Latvia Estonia 6800 5000 4100 2300 9300 6800 25200 22500 21000 41900 35500 60800 57000 48100 77800 72900 90500 80900 109200 136200 206500 312500 365000 387700 571200 Cyprus Malta 1300 1200 * Source MDRC 2008
The opportunity set * Source MDRC 2008
The UK private wealth market Very competitive Consultants Cambridge Associates Family Offices Fleming Family Partners Lord North Street Large Multi Nationals UBS Goldman Sachs Asset Managers Newton (BONY Mellon) Jupiter Private Banks SG Hambros Kleinwort Benson Pictet Stockbrokers NCL Smith & Williamson Brewin Dolphin Securities High Street Banks Specialist entities Royal Bank of Scotland Coutts Barclays plc Barclays Wealth
UK market observations* compared to Continental Europe Very fragmented UK Banks have not been successful in developing and retaining HNWI s Branch working with specialists Features of those who succeed Teaming Pricing Costs * Source Egon Zehnder: Boston Consulting
Accessing first class investment Talent Schroders and Multi-Manager Appendix FUM Funds under management MM Multi-manager Equities 170 investment professionals FUM - $190.8bn MM FUM - $3bn Schroders employs equity specialists covering all geographic regions and investment styles. In addition to giving you access to these in-house professionals, we select third party funds using the skills of the Schroder Multi-manager team, which has recorded first quartile returns across all its funds since launch in October 2005 to the end of December 2007 Schroders Property is a Multiaward winning team. In 2007 Schroders won the IPF/IPD UK Property Investment House of the Year Award. The SIRE Multi-manager Fund has returned 17.8% annualised over the last 3 years Property 44 investment professionals FUM - $20.1bn MM FUM - $3.2bn Private Client Private Equity 12 investment professionals MM FUM - $4.2bn SVG Capital has pioneered multi-manager private equity investing as well as innovative single manager partnerships (e.g. Permira) SVG s quoted vehicle has outperformed the FTSE All-share (Capital only) by 10% per annum since 1996. We use SVG s funds in conjunction with first-rate external managers such as 3i Schroders is becoming the manager of choice for Commodities amongst institutional clients and Private Banks. The Schroders Commodities business has grown rapidly to US$4bn in the last two years Commodities 7 investment professionals FUM - $4.0bn Hedge Funds 40 investment professionals MM FUM - $6bn We have a first class team of dedicated Hedge Fund analysts at NewFinance Capital covering the universe of hedge fund strategies. We make extensive use of their skills, as well as those of external multi-strategy managers
Selecting investments Current Views Cash Term deposits AAA Money Market Funds Offshore Building Societies Structured Deposits Bonds Government Stocks Corporate Bonds High Yield Emerging Market Debt Inflation-linked bonds Prefer Sovereign to corporate bonds. Asian currency bonds to capture possible appreciation versus US dollar Hedge Funds Access to the due diligence of NewFinance Capital Low-Risk Multi-Strategy as a substitute for bonds Equity Long/Short, Event Driven, Macro etc. Single Manager and Funds of Funds Opportunity set increased for stock pickers in equity Taking profit from long/short equity and credit driven managers increasing Macro and Fixed Income Arbitrage
Selecting your investments Current Views Property Access to Schroders Property Team Diversify across sectors and geographically Multi-Manager Investment Real Estate Securities Underweight property Cost of finance has increased Returns forecast to be less than cash Prefer Continental Europe to UK Commodities Equities Private Equity Dynamic allocation between: Energy Precious Metals Physical Individual Stocks Star Fund Managers, e.g. Andy Brough, Richard Buxton (Schroders) Kinetics (Boutique US manager) Index Securities (e.g. SPDR) Structured Investments (e.g. TOPIX note) Access to SVG and Permira Third-Party Private Equity Multi-Manager Investment Co-Investment Opportunities Base Metals Agriculture Equity Believe commodities will continue to perform strongly as demand rises and supply struggles to keep pace Overweight agriculture Underweight base metals Large cap stocks to outperform small as private equity led take-over activity reduces Asia and Emerging Markets should remain strong Cost of finance increased returns will be lower than those seen in last five years But returns should exceed those of public markets
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