Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — FY2011 Earnings Presentation
36 slides from Coronation Fund Managers's earnings presentation, Nov 8, 2011
Slide 1: 2011 Results
2011 Results Reviewed 8 November 2011 1
Slide 2: Agenda
Agenda Financial highlights Overview of company Financial results Business review Retail Institutional International Transformation Conclusion 2
Slide 3: Market movements
Market movements 30 September 2011 3 months 6 months 12 months Economic group % % % All Share -5.8 -6.4 3.6 All Share -6.9 -7.9 0.7 (Capital Return) All Share 1.0 1.5 2.9 (Dividend Return) Resource -10.0 -15.2 1.6 Small Cap -2.3 0.0 5.4 Industrial -3.3 0.3 7.8 Financials -3.1 -1.9 -1.3 Source: Deuts
Slide 4: Financial highlights
CORONATION & FUND MANAGERS Financial highlights
Slide 5: Financial highlights
Financial highlights AUM R247 bn +21% Headline earnings 192.4 cps +39% Headline earnings (diluted) 176.1 cps +38% Dividend Total 172.0 cps +35% Final 92.0 cps +21% 5
Slide 6: Financial highlights (Rm)
Financial highlights (Rm) Revenue (from fund management) 1,725 +34% Profit (from fund management) 918 +41% PAT 624 +42% Cashflow 936 +23% 6
Slide 7: Company overview
CORONATION & FUND MANAGERS Company overview
Slide 8: Company structure
Company structure at 30 September 2011 C o ronation Fund Managers Ltd 90% C o ronation Investment 10% Th e Imvula Trust Ma nagement (Pty) Ltd 100% 100% 100% 100% 100% C o ronation C o ronation Life C o ronation Asset C o ronation Investment Management Company Assurance C FM (Isle of Man) Ltd Ma nage
Slide 9: Assets under management
Assets under management 2003 – 30 September 2011 300 247 250 231 203 200 155 150 134 125 101 100 82 64 54 50 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 Sept Sept Sept Sept Sept Sept Sept Sept March Sept Domestic: Equity 60.7%; Fixed Interest and Cash 22.7% Foreign: Equity 13.6%; Fixed Inter
Slide 10: Financial results
CORONATION & FUND MANAGERS Financial results 10
Slide 11: Earnings
Earnings as at 30 September 2011 Sept Sept Change % 2011 2010 Attributable earnings (R'000) 43 623,976 437,108 EPS (c ents) 43 198.2 138.9 Headline earnings (R'000) 39 605,841 437,208 HEPS (cents) 39 192.4 138.9 Diluted HEPS (cents) 38 176.1 128.0 Weighted average shares in issue - 30 Sept 0.03 314,
Slide 12: Earnings
Earnings as at 30 September 2011 Sept Sept Change % 2011 2010 Cost to income (5.2) 47.9 50.6 EBITDA (Rm) 40.5 930 662 Market capitalisation (Rm) 35.2 6,296 4,656 Share price @ 30 September (Rands) 35.2 20.00 14.79 Price earnings per share (2.4) 10.4 10.6 12
Slide 13: Total net fee
Total net fee as at 30 September 2011 1.20% 0.97% 1.00% 0.87% 0.80% 0.75% 0.68% 0.69% 0.70% 0.70% 0.69% 0.58% 0.59% 0.56% 0.60% 0.52% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 13
Slide 14: Cost comparison
Cost comparison Sept Sept 2011 2010 Change % R'000 R'000 Fixed operational costs (9.8) 266,373 242,560 Variable costs (41.7) 566,828 399,936 IFRS 2 65.5 4,856 14,059 TOTAL OPERATIONAL COSTS (27.6) 838,057 656,554 Other costs (Interest expense*) 40.6 5,262 8,851 TOTAL COSTS (26.7) 843,319 665,405 * I
Slide 15: CFM expenses
CFM expenses Sept Sept 2011 2010 Change % R'000 R'000 Fixed costs (9.8) 266,373 242,560 Major contributors: Staff costs (17.7) 144,218 122,528 Marketing (3.4) 40,834 39,476 Information technology (5.8) 22,120 20,913 Rental 18.0 13,148 16,027 Staff numbers 208 198 Variable costs (41.7) 566,828 399,93
Slide 16: Earnings summary - 2nd vs 1st half
Earnings summary - 2nd vs 1st half Change Apr-Sept-11 Oct-Mar-11 % R'000 R'000 Revenue 8.4 915,103 844,477 Net fee income 9.8 838,071 763,425 Trailer Commissions 14.4 66,380 58,034 Other (53.7) 10,652 23,018 Expenses 7.9 437,627 405,692 Operating expenses 6.6 368,452 345,597 Trailer Commissions 14.4
Slide 17: Business overview Institutional
Business overview Institutional 17
Slide 18: Performance
Performance Alexander Forbes Global Large Manager Watch™ 5 years ending 30 September 2011 Investec Asset Management 13.5% Coronation 12.2% Allan Gray 12.0% Foord Asset Management 11.0% RE:CM 10.8% Prudential Global Balanced 10.3% Median 9.5% OMIGSA Macro Strategy 9.3% Momentum AM Global Balanced Fun
Slide 19: Performance
Performance Alexander Forbes SA Large Manager Watch™ 5 years ending 30 September 2011 Investec Asset Management 14.7% Coronation 13.7% Allan Gray 13.6% Prudential Domestic Balanced 12.5% Foord Segregated Domestic 12.2% Median 11.9% RE:CM Balanced Domestic Composite 11.4% Oasis 11.3% OMIGSA Macro Str
Slide 20: Performance
Performance Coronation Global Absolute Periods ending 30 September 2011 3 Years 5 Years 10 Years * Since 1 Year (p.a.) (p.a.) (p.a.) Inception Global Absolute 7.8% 14.2% 12.6% 17.2% 17.8% Fund CPI 5.7% 4.8% 6.8% 6.3% 6.4% CPI +6% 11.7% 10.8% 12.8% 12.3% 12.4% * Since inception – August 1999 Source:
Slide 21: Performance
Performance Coronation Core Equity periods ending 30 September 2011 3 years 5 years * Since 1 year (p.a.) (p.a.) Inception Core Equity Fund 6.4% 15.3% 14.6% 21.8% Benchmark ** 4.1% 11.4% 10.0% 18.2% Outperformance 2.3% 3.9% 4.6% 3.6% * Since inception – March 2004 ** FTSE/JSE Shareholder Weighted In
Slide 22: Business overview Retail
CORONATION & FUND MANAGERS Business overview Retail 22
Slide 23: Business Performance 2011
Business Performance 2011 League table: long-term funds Manager AUM Flows 1. R113bn R107bn -R3bn [70th] R11bn 2. Coronation R62bn R40bn R20bn [1st] R12bn 3. R59bn R50bn R7bn [2nd] R5bn 4. R42bn R37bn R4bn [4th] R4bn 5. R40bn R35bn R4bn [6th] R1bn After attracting the highest net flows in the industr
Slide 24: Domestic Flagship Income & Growth Solutions
Domestic Flagship Income & Growth Solutions Meeting our clients’ key investment needs Risk Profile Investment Exposure to Objective Conservative Moderate Aggressive Growth Assets 3 Years → 2/10 3/10 4/10 6/10 8/10 Average exposure to growth assets through the cycle 14.1% (5 years) The exposure will
Slide 25: Domestic Flagship Funds
Domestic Flagship Funds Consistent top quartile returns 3-year 5-year 10-year S.I. Fund ranking ranking ranking ranking LT Growth 1st 1st 1st 1st Top 20 Quartile Quartile Quartile Quartile (equity only) LT Growth 1st 1st 1st 1st Balanced Plus Quartile Quartile Quartile Quartile (multi asset) 1st 1st
Slide 26: International funds aimed at retail investors
International funds aimed at retail investors Still early days, but promising track record developing 3-year 5-year 10-year S.I. Fund ranking ranking ranking ranking 1st 1st GEM Flexible - - Quartile Quartile LT Growth (equity only) World 1st 1st 2nd 1st Equity FoF Quartile Quartile Quartile Quartil
Slide 27: International
CORONATION & FUND MANAGERS International 27
Slide 28: Strong international track record
Strong international track record (US dollar returns) Offshore USD Funds Annual Alpha Launch date Global Equity Alternative Strategy 4.13% 1-Aug-96 Net Fund of Funds Global Equity Fund of Funds 2.05% 1-Jul-00 Net Global Emerging Markets 6.82% 14-Jul-08 Gross Global Bond -0.29% 1-Oct-09 Gross Africa
Slide 29: UK and Ireland
UK and Ireland AUM up from $1.97bn (Sept 10) to $2.73bn (Sept 11) Investment performance remains strong with all funds ahead of benchmarks Global Equity Alternative Strategy Fund of Funds: 8.18% annualised dollar return since launch to end September 2011 versus 4.77% p.a. for MSCI World Index Global
Slide 30: Africa
Africa Africa fund offering delivering excellent relative performance Africa Frontiers Fund: 11% p.a. dollar return since launch in 2008 to end September versus 5.62% p.a. for the benchmark 3-month USD Libor + 5%. ‘Best Africa Manager of the Year’ – 2010 Africa investor Index Series Awards Namibian
Slide 31: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) Excellent relative performance since inception Global Emerging Markets Fund: 6.8% p.a. ahead of MSCI Emerging Markets Index as at end September 2011 Relative performance position versus GEM peers – 2nd out of 59 over 3 years to end September 2011 31
Slide 32: Transformation
CORONATION & FUND MANAGERS Transformation 32
Slide 33: Transformation
Transformation Level IV contributor in terms of DTI codes Staff ownership scheme (Imvula) Outstanding debt reduced by 71% since inception Positive equity Enterprise development Providing business support to selected BEE stockbrokers 33
Slide 34: Conclusion
CORONATION & FUND MANAGERS Conclusion 34
Slide 35: Local market indicators
Local market indicators periods ending 30 September 2011 Period Q3 ’11 YTD 1 year 3 years 5 years 10 years ALSI -5.84% -5.36% 3.60% 10.56% 8.76% 17.38% ALBI 2.81% 5.13% 5.92% 10.04% 9.02% 10.25% SAPI 2.19% 5.01% 8.30% 18.97% 17.44% Not started AF Money Mkt 1.41% 4.30% 5.88% 7.75% 8.95% 9.29% MSCI (Z
Slide 36: Thank you
CORONATION FUND MA GERS Thank you
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