Schroders Capital Global Innovation Trust (INOV) H1 2024 earnings summary

Executive summary

• Assets under management (AUM) reached £773.7 billion at 30 June 2024, up from £750.6 billion at the start of the year, including associates and JVs.

• NAV per share fell 17.1% to 20.99p as of 30 June 2024, with share price down 18.8% to 11.90p, widening the discount to NAV to 43.3%.

• Net flows excluding associates and JVs were negative at £3.9 billion, with Asset Management seeing outflows and Wealth Management positive inflows.

• Portfolio repositioned towards private equity, with two new investments in life sciences and AI data curation.

• Investment returns contributed £18.3 billion to AUM growth over the half year.

Financial highlights

• Asset Management operating profit was £231.3 million for H1 2024, down from £265.5 million in H1 2023.

• Wealth Management operating profit rose to £83.7 million, up from £75.9 million in H1 2023.

• NAV per share: 20.99p (down from 25.32p at 31 Dec 2023); NAV total return: -17.1% for H1 2024.

• Net loss after tax: £39.3m for H1 2024 (vs £34.5m loss H1 2023).

• Net operating revenue for Asset Management was £907.1 million, with a margin of 34 bps on average AUM.

Outlook and guidance

• Forward-looking statements caution that actual results may differ materially due to risks and uncertainties.

• Focus remains on portfolio rebalancing, maximizing sale proceeds, and supporting long-term growth.

• Capital available for new investments expected to be constrained in H2 2024 due to buyback and liquidity needs.

• Anticipated positive revaluation for Revolut and negative adjustments for Ada Health and Bizongo in Q3.

• Public equity holdings expected to remain volatile; regulatory milestones for Autolus and Oxford Nanopore in H2 2024.