Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — FY2009 Earnings Presentation
36 slides from Coronation Fund Managers's earnings presentation, Nov 10, 2009
Slide 1: 2009 Results
2009 Results Reviewed 10 November 2009
Slide 2: Agenda
Agenda Financial highlights Overview of company Financial results Business review Retail Institutional International Transformation
Slide 3: Market movements
Market movements 30 September 2009 3 months 6 months 12 months Economic group % % % All Share 13.9 23.8 7.7 All Share 12.98 22.33 4.51 (Capital Return) All Share 0.93 1.43 3.19 (Dividend Return) Resource 20 11.2 14.2 1.1 Small Cap 15.2 28.6 8.8 Industrials 21.7 38.9 4.8 Financials 15.1 29.3 6.5
Slide 4: Financial highlights
CORONATION & FUND MANAGERS Financial highlights
Slide 5: Financial highlights
Financial highlights AUM R155 bn +24% Headline earnings 66.4 cps +26% Headline earnings (diluted) 60.5 cps +25% Dividend 50.0 cps +9% Final 37.0 cps +23%
Slide 6: Financial highlights (Rm)
Financial highlights (Rm) Revenue (from fund management) 842 +5% Profit (from fund management) 325 +18% PAT 211 +19% Cashflow 373 +14%
Slide 7: Share buy-back
Share buy-back Details Total consideration R6m (incl. costs) Period 6 Feb – 20 Mar Number purchased 1.343m Ave Price R4.48 (incl. costs) Number of shares in issue post buy-back Currently 314,566m
Slide 8: Company overview
CORONATION & FUND MANAGERS Company overview 5
Slide 9: Company structure
Company structure at 31 September 2009 Coronation Fund Managers Ltd 90% Coronation Investment 10% The Imvula Trust Management (Pty) Pty) Ltd 100% 100% 100% 100% 100% Coronation Coronation Life Coronation Asset Coronation Investment Management Company Assurance Company CFM (Isle of Man) Ltd Managemen
Slide 10: Assets under management (Rbn)
Assets under management (Rbn) 2003 – 30 September 2009 180,000 160,000 154,740 140,000 133,730 124,990 120,460 120,000 101,440 100,000 81,930 80,000 63,759 60,000 53,697 40,000 20,000 0 2003 2004 2005 2006 2007 2008 2009 2009 Sept Sept Sept Sept Sept Sept Mar Sept
Slide 11: Financial Results
CORONATION & FUND MANAGERS Financial Results
Slide 12: Earnings
Earnings as at 30 September 2009 % Change 2009 2008 Attributable earnings (R'000) 19.9 207,379 172,942 Basic earnings (cps) 22.2 65.8 53.9 Headline earnings (R'000) 23.1 209,080 169,782 Headline earnings (cps) 25.5 66.4 52.9 Diluted Headline earnings (cps) 24.4 60.5 48.6 Weighted average shares in i
Slide 13: Earnings
Earnings as at 30 September 2009 Change % 2009 2008 Cost to income 7.1 61.8 66.2 EBITDA (Rm's) 19.0 351,373 295,352 Market capitalisation (Rm's) 33.4 2,422,157 1,815,701 Share price (Rands) 33.9 7.70 5.75 Price earnings per share* 6.7 11.6 10.9 * PE earnings – share price/HEPS
Slide 14: Total net fee
Total net fee as at 30 September 2009 1.20% 0.97% 1.00% 0.87% 0.75% 0.70% 0.80% 0.68% 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
Slide 15: Cost Comparison
Cost Comparison Change 2009 2008 % R'000 R'000 Total operating expenses 526,331 541,528 Interest Expense 22,513 16,441 Share-based payments 21,442 33,661 Other -1,899 9,260 Adjusted costs 0.4 484,275 482,166 Variable costs 1 276,132 272,992 Fixed costs 208,144 209,174 Staff numbers 188 178
Slide 16: IFRS2 effect
IFRS2 effect Forecast 2010 2009 2008 R'000 R'000 R'000 December 2003 options - - 149 Imvula transaction 16,778 11,931 12,236 CIT transactions 2,290 9,382 20,947 Namibia - 129 329 Total 19,068 21,442 33,661
Slide 17: Earnings summary – 2nd vs 1st half
Earnings summary – 2nd vs 1st half Change Apr-Sept-09 Oct-Mar-09 % R'000 R'000 Revenue 31.5 483,769 367,748 Operating expenses 18.4 224,164 189,357 Distribution payments 0.4 45,774 45,594 IFRS2 charges 2.2 10,838 10,604 PBT 66.1 202,992 122,193 Tax 32.6 65,177 49,141 PAT 88.7 137,816 73,053
Slide 18: Business overview Institutional
Business overview Institutional
Slide 19: Performance
Performance Alexander Forbes Global Large Manager Watch™ 5 years ending 30 September 2009 Investec Asset Management 21.02% Allan Gray 20.95% Coronation 19.41% Prudential Global Balanced 18.07% OMIGSA Macro Strategy 17.63% Median 17.47% Cadiz 16.47% RMBAM 16.23% Oasis 16.21% Metropolitan 16.03% SIM G
Slide 20: Performance
Performance Alexander Forbes SA Large Manager Watch™ 5 years ending 30 September 2009 Allan Gray 22.84% Investec Asset Management 21.94% Coronation 20.92% Prudential Domestic Balanced 19.71% Median 19.59% OMIGSA Macro Strategy 18.98% Oasis 18.64% RMBAM 18.33% Metropolitan 18.04% Cadiz 17.82% SIM Dom
Slide 21: Performance
Performance Absolute Return product Periods ending 30 September 2009 1 Year 3 Years 5 Years Since inception* Global Absolute 17.2% 12.5% 19.0% 18.8% CPIX 5.4% 8.3% 6.9% 6.8% CPIX +7% 12.4% 15.3% 13.9% 13.8% *Since inception – August 1999
Slide 22: Business overview Retail
CORONATION & FUND MANAGERS Business overview Retail
Slide 23: Business performance 2009
Business performance 2009 League table: long-term funds Manager AUM Flows 1. Allan Gray (-) R89bn R18.0bn 2. Investec (-) R40bn R2.4bn 3. Nedgroup () R29bn R4.5bn 4. Old Mutual () R29bn R0.9bn 5. Stanlib (-) R26bn R0.7bn 6. Coronation (-) R24bn R1.9bn 7. RMB (-) R19bn (R0.7bn) 8. SIM (-) R14bn R1bn
Slide 24: Local core fund range
Local core fund range Return = annualised returns Growth Growth(equity (equityonly) only) 25.6% Coronation Top 20 17.1% Return Growth Growth(multi (multiasset) asset) 19.0% Coronation Balanced Plus 11.7% 16.4% Coronation Capital Plus Income Income & & 7.6% Growth Growth Launched in Coronation Balanc
Slide 25: Local core fund range
Local core fund range Value of R100,000 invested on 1 July 2001 R518 728 ALSI Inflation Strat Inc Capital+ R362 245 R327 005 Balanced+ Top 20 R250 450 ALSI: R352 564 Inflation: R170 414 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Oct-01 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Ju
Slide 26: Local core fund range
Local core fund range Consistent performance Fund 5 year ranking S.I. ranking Growth Top 20 1st Quartile 1st Quartile (equity only) Equity 1st Quartile 1st Quartile Growth Balanced Plus 1st Quartile 1st Quartile (multi asset) Market Plus 1st Quartile 1st Quartile Capital Plus 1st Quartile 1st Quarti
Slide 27: Core foreign fund range
Core foreign fund range Return = annualised returns Launched in December 2007 Coronation GEM Flexible Growth Growth (equity (equityonly) only) 8.8% Coronation World Equity [ZAR] 13.4% Return New Fund Coronation Global Managed Growth Growth (multi (multiasset) asset) 11.1% Coronation Optimum Growth 1
Slide 28: Core foreign fund range
Core foreign fund range Multi-asset funds Returns in excess of foreign cash +3% while Latitude [ZAR] protecting capital in USD over 12mths Global Managed Best global investment view for USD investors Best rand risk-adjusted returns from a global multi Optimum Growth asset portfolio Equity funds Worl
Slide 29: International
CORONATION & FUND MANAGERS International
Slide 30: UK and Ireland
UK and Ireland AUM up from $1.26bn (Sept 08) to $1.33bn (Sept 09) Investment performance is very pleasing with all funds ahead of benchmarks GEAS 9.35% annualised $ return since inception versus 4.5% for MSCI world World Equity 1.65% annualised $ return since inception versus -0.33% for MSCI world
Slide 31: Africa
Africa Namibian AUM up by 5% from NAM$7.7bn (Sept 08) to NAM$8.1bn (Sept 09) Good relative performance position Botswana AUM at Pula 2bn Excellent relative performance – 2nd out of 6 for year to 30 September 2009 Africa Fund offering delivering excellent relative performance 12.47% annualised $ retu
Slide 32: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) Excellent relative performance since inception 12.5% ahead of MSCI GEM Index Very pleasing relative performance position vs. GEM peers – 2nd out of 25
Slide 33: Transformation
CORONATION & FUND MANAGERS Transformation
Slide 34: Transformation
Transformation Rated as Level IV contributor ito DTI codes Staff Ownership scheme (Imvula) Outstanding debt reduced by 28% since inception Positive equity Enterprise development Providing business support to BEE stockbrokers Evaluation of the initial 3 year term completed and ongoing partnership wit
Slide 35: Results call playback details
Results call playback details A recording of our annual results conference call of Tuesday, 10 November will be available for playback until Tuesday, 24 November. Playback Numbers: South Africa: 011 305 2030 United Kingdom: 0 808 234 6771 Playback Code: 12708#
Slide 36: Thank you
CORONATION & FUND MANAGERS Thank you
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