Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — H1 2013 Earnings Presentation
34 slides from Coronation Fund Managers's earnings presentation, May 14, 2013
Slide 1: Reviewed Interim Results
March 2013 Reviewed Interim Results 14 May 2013
Slide 2: Agenda
Agenda Overview of company Financial results Business review • Institutional • Retail • International • Transformation Conclusion 2
Slide 3: Company overview
Company overview CORONATION &
Slide 4: Market movements
Market movements 31 March 2013 3 months 6 months 12 months Economic group March 2013 March 2013 March 2013 % % % All Share 2.5 13.1 22.5 All Share (Capital Return) 1.6 11.5 18.8 All Share (Dividend Return) 0.9 1.6 3.7 Resources (J258) (6.0) 0.9 0.2 Small Cap (J202) 8.1 16.8 26.3 Industrial (J257) 6.
Slide 5: Company structure
Company structure at 31 March 2013 Coronation Fund Managers Ltd JSE-listed 100% Coronation Investment Management (Pty) Ltd 100% 100% 100% 100% 100% Coronation Coronation Asset Coronation Life Coronation Management CFM (Isle of Man) Management (Pty) Assurance Investment Services Company (RF) (Pty) Lt
Slide 6: Assets under management (Rbn)
Assets under management (Rbn) 2003 – 31 March 2013 450 409 400 350 339 295 300 247 250 203 200 155 150 134 125 101 100 82 64 54 50 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013 Sept Sept Sept Sept Sept Sept Sept Sept Sept March Sept March Local: Equity 54.4%; Fixed Interest and Cash
Slide 7: Total net fee (actual revenue)
Total net fee (actual revenue) as at 31 March 2013 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% 0.59% 0.60% 0.56% 0.60% 0.52% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/H1* * Fees calculated using annualised fixed fees and
Slide 8: Financial results
Financial results CORONATION &
Slide 9: Financial highlights
Financial highlights 2013 % Assets under Management R409 bn +21% Revenue (from fund management) R1,5 bn +62% Profit (from fund management) R774m +72% Profit before tax R823m +74% Headline earnings (diluted) 163.4 cps +88% Interim dividend 163.0 cps +72%* * Period on period change applicable to Divid
Slide 10: Earnings
Earnings % March March Change 2013 2012 Headline earnings (R'000) 93 571,374 295,878 HEPS (cents) 89 178.1 94.0 Diluted HEPS (cents) 88 163.4 86.7 Weighted average shares in issue 2 320,777,309 314,819,192 Actual shares in issue 11 349,799,102 314,819,192 10
Slide 11: Earnings
Earnings % March March Change 2013 2012 Cost to income (6.1) 48.2 51.3 EBITDA (R'000) 71.3 777,962 454,269 Market capitalisation (R'000) 87.1 16,790,357 8,972,347 Share price at 31 March (Rands) 68.4 48.00 28.50 Price earnings per share* (11.1) 13.5 15.2 * PE earnings – share price/annualised histor
Slide 12: Cost comparison
Cost comparison March March % 2013 2012 Change R’000 R’000 Fixed operational costs (24.0) 176,533 142,422 Variable costs (64.8) 538,677 326,851 IFRS 2 15.0 1,213 1,427 Operating expenses (52.2) 716,423 470,700 12
Slide 13: Fixed expenses
Fixed expenses March March % 2013 2012 Change R’000 R’000 Fixed costs (24.0) 176,533 142,422 Major contributors: Staff costs (19.1) 87,467 73,413 Information technology (19.3) 16,256 13,624 Professional fees (79.8) 17,929 9,970 Marketing 1.0 23,222 22,994 Staff numbers 230 212 13
Slide 14: Business overview Institutional
Business overview Institutional
Slide 15: Performance
Performance Alexander Forbes Global Large Manager Watch™ 5 years ending 31 March 2013 Coronation 14.1% Foord Asset Management 13.5% Prudential Global Balanced 12.3% Allan Gray 12.0% Investec Asset Management 11.9% RE:CM 11.3% Median 10.9% SIM Global Unique 10.5% OMIGSA MacroSolutions 10.3% Stanlib 9
Slide 16: Performance
Performance Alexander Forbes SA Large Manager Watch™ 5 years ending 31 March 2013 Foord Segregated Domestic 15.4% Coronation 14.5% Prudential Domestic Balanced 14.0% Allan Gray 12.8% Median 12.4% Oasis 12.0% Investec Asset Management 11.8% SIM Domestic Unique 11.4% Momentum AM Domestic Balanced Fund
Slide 17: Coronation Global Absolute
Coronation Global Absolute performance for periods ending 31 March 2013 3 Years 5 Years 10 Years * Since 1 Year (p.a.) (p.a.) (p.a.) Inception Coronation Absolute Fund 19.0% 14.4% 13.8% 19.0% 17.9% CPI 6.0% 5.4% 6.2% 5.8% 6.4% CPI +6% 12.0% 11.4% 12.2% 11.8% 12.4% Outperformance *Since inception – A
Slide 18: Coronation Core Equity
Coronation Core Equity performance for periods ending 31 March 2013 3 years 5 years * Since 1 year (p.a.) (p.a.) Inception Coronation Core Equity Fund 25.2% 18.3% 15.5% 22.8% SWIX 22.0% 16.3% 11.0% 19.8% Outperformance 3.2% 2.0% 4.5% 3.0% *Since inception – March 2004 Source: Independent Retirement
Slide 19: Business overview Retail
Business overview CORONATION &
Slide 20: Business Performance 2013
Business Performance 2013 League Table: Long-term funds as at 31 March 2013 Manager AUM (Rbn) Flows (Rbn) March 2013 March 2013 1. 150 133 0 7 2. Coronation (unchanged) 126 96 18 [1st] 23 3. 86 73 8 28 4. 85 77 3 11 5. 65 58 1 12 Market share increased to 12.5% of long-term funds at 31 March 2013 So
Slide 21: Domestic Flagship Funds
Domestic Flagship Funds Meeting our clients’ key investment needs as at 31 March 2013 Investment Risk Profile AUM Objective Conservative Moderate Aggressive As at 3 Years → 31 March 2013 2/10 3/10 4/10 6/10 8/10 16.6% Long-term Growth Top (Equity Only) R14.6bn 20 15.8% 12.4% Return (Annualised Retur
Slide 22: Domestic Flagship Funds
Domestic Flagship Funds Consistent top quartile returns as at 31 March 2013 5-year 10-year Fund S.I. ranking ranking ranking Long-term growth Top 20 1st Quartile 1st Quartile 1st Quartile (equity only) Long-term growth Balanced Plus 1st Quartile 1st Quartile 1st Quartile (multi asset) Capital Plus 1
Slide 23: International Flagship Funds
International Flagship Funds Building a solid track record as at 31 March 2013 3-year 5-year Fund S.I. ranking ranking ranking GEM Flexible 1st Quartile 1st Quartile 1st Quartile Long-term growth (equity only) World Equity 1st Quartile 1st Quartile 1st Quartile Long-term growth Global Managed 1st Qu
Slide 24: International
International CORONATION &
Slide 25: Strong international track record
Strong international track record (US dollar returns) Annualised Offshore USD Funds Launch date Alpha* Global Equity Alternative Strategy Fund of Funds 3.75% 1 Aug 96 Net Global Equity Fund of Funds 1.65% 1 Jul 00 Net Global Emerging Markets 8.33% 14 Jul 08 Gross Global Bond 3.07% 1 Oct 09 Gross Afr
Slide 26: UK and Ireland
UK and Ireland AUM up from $4.3bn (Sept 2012) to $5.3bn (March 2013) Investment performance remains satisfactory with all funds performing well within their peer groups • Global Equity Alternative Strategy Fund of Funds: 8.37% annualised dollar return (net of fees) since launch to end March 2013 ver
Slide 27: Africa
Africa Africa fund offering delivering excellent performance • Africa Frontiers Fund has delivered a 16.75% p.a. dollar return (gross of fees) since launch in 2008 versus 5.55% p.a. for the benchmark of 3-month USD Libor + 5% • The FTSE/JSE Africa Top 30 Ex-SA Index has returned -3.01% p.a. over the
Slide 28: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) Excellent relative performance since inception • Global Emerging Markets Fund: has delivered a 10.84% p.a. dollar return (gross of fees) since launch in 2008 versus 2.51% p.a. for the benchmark of MSCI Emerging Markets • Approaching 5-year track record (14 July 2013) •
Slide 29: Transformation
Transformation CORONATION &
Slide 30: Transformation
Transformation Level III contributor in terms of DTI codes Financial Sector Charter finalised during period Staff ownership scheme (Imvula) now unbundled Enterprise development • Providing business support to selected BEE stockbrokers 30
Slide 31: Conclusion
Conclusion CORONATION &
Slide 32: Local market indicators
Local market indicators periods ending 31 March 2012 3 years 5 years 10 years (p.a.) (p.a.) (p.a.) All Share 14.9% 9.3% 21.4% All Bond 11.9% 11.6% 10.4% Listed Property 24.0% 20.7% 25.6% AF Money Market 5.9% 7.6% 8.4% MSCI (ZAR) 18.0% 5.6% 11.2% Global Bonds (ZAR) 12.4% 5.5% 7.1% CPI 5.3% 6.2% 5.8%
Slide 33: Disclaimer
Disclaimer This presentation contains certain forward-looking statements. These forward-looking statements are based on current information and expectations, and involve a number of risks and uncertainties. Although Coronation believes that the expectations reflected in such forward-looking statemen
Slide 34: Thank you
Thank you CORONATION SS
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