corporate governance

Key performance indicators

We use a number of key performance indicators to measure our performance over the long term.

1. Investment performance

We target at least 60 per cent. of assets under management to outperform benchmark or peer group over rolling three-year periods.

2. Net new business

We seek to generate positive net inflows in Institutional, Intermediary and Private Banking.

3. Assets under management

The principal influence on assets under management is the level of markets, but we aim to grow assets under management over time in excess of market growth, throgh positive investment performance and net new business inflows.

4. Net revenue margins

As a key driver of revenue, we focus on net revenue margins by product and by channel. As Institutional has grow, net revenue margins have declines but we benefit from greater client longevity in Institutional.

5. Cost:net revenue ratio

We target a 70 per cent. cost:net revenue ratio over a market cycle, recognising that in weaker markets the ratio may be higher than our long-term-target.

6. Compensation cost:operating revenue ratio

By targeting a compensation cost:operating revenue ratio over a market cycle, we align the interests of shareholders and employees. We aim over the long term for a compensation cost:operating revenue ratio of 45 per cent.

7. Earnings per share

We aim to grow earnings per share recongnising the impact of market volatity on our operating business and Group investments.

8. Dividend per share

We follow a policy of increasing the dividend progressively , in line with the trend in profitabilit.