Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — H1 2015 Earnings Presentation
26 slides from Coronation Fund Managers's earnings presentation, May 19, 2015
Slide 1: 2015 Reviewed Interim Results
2015 Reviewed Interim Results for the six months ended 31 March 2015 19 May 2015
Slide 2: Agenda
Agenda Highlights Business update • Institutional • Retail Financial results Closing remarks 1
Slide 3: Highlights
Highlights CORONATION &? FUND MANAGERS TRUST IS EARNED
Slide 4: Highlights
Highlights as at 31 March 2015 Total AUM increased to R636bn (+8%) Total net inflows for the half year R7.5bn International AUM increased to R145bn (+14%) • Net inflows of R11bn into international products/mandates Revenue decreased to R2.2bn (-6%) Diluted headline earnings per share of 246.7 cents
Slide 5: Assets under management (Rbn)
Assets under management (Rbn) 2003 – 31 March 2015 700 636 588 600 547 145 492 127 500 105 85 400 339 40 300 247 203 24 491 442 461 200 155 407 15 134 125 101 11 299 82 12 12 64 223 100 54 9 188 7 144 122 113 7 7 92 57 75 47 0 Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept March Sept March 2
Slide 6: Business update
Business update CORONATION &? FUND MANAGERS TRUST IS EARNED
Slide 7: Market movements
Market movements as at 31 March 2015 3 months 6 months 12 months Economic group Mar 2015 Mar 2015 Mar 2015 % % % All Share (ZAR) 5.8 7.3 12.5 Resources (0.2) (19.4) (23.0) Small Cap 3.2 9.9 19.0 Industrials 5.6 13.0 22.3 Financials 11.2 23.2 33.4 USD/ ZAR exchange (5.6) (7.0) (13.2) MSCI World (USD)
Slide 8: Institutional business highlights
Institutional business highlights Institutional AUM of R410bn Net outflows from institutional business of R0.56bn: • Local client outflows as a result of soft close to new clients • Offset by international client inflows (specifically into GEM product) Expanded international product offering: • Acti
Slide 9: Performance
Performance Alexander Forbes Global Large Manager Watch™ 5-year period ending 31 March 2015 Source: Alexander Forbes Global Large Manager Watch™ survey to 31 March 2015 8
Slide 10: Coronation Houseview Equity portfolio
Coronation Houseview Equity portfolio performance for periods ending 31 March 2015 Since 3 years 5 years 10 years 20 years 1 year inception* (p.a.) (p.a.) (p.a.) (p.a.) (p.a.) Coronation Houseview 11.7% 22.8% 19.3% 21.1% 18.2% 19.2% Equity Benchmark ** 17.7% 21.4% 18.2% 18.9% 15.2% 16.1% Alpha (6.0%
Slide 11: Coronation Global Absolute portfolio
Coronation Global Absolute portfolio performance for periods ending 31 March 2015 Since 3 years 5 years 10 years 1 year inception (p.a.) (p.a.) (p.a.) (p.a.) Coronation Global Absolute 12.0% 15.9% 14.4% 16.1% 17.4% CPI + 6% - 11.3% 11.2% 12.0% 12.2% Alpha - 4.6% 3.2% 4.1% 5.2% * Since inception – Au
Slide 12: Coronation Strategic Bond portfolio
Coronation Strategic Bond portfolio performance for periods ending 31 March 2015 Since 3 years 5 years 1 year inception* (p.a.) (p.a.) (p.a.) Coronation Strategic Bond 13.6% 10.9% 11.4% 11.1% BEASSA All Bond Index 12.4% 9.0% 9.7% 9.4% Alpha 1.2% 1.9% 1.7% 1.7% * Since inception – January 2008 Source
Slide 13: Strong international track record
Strong international track record (US dollar returns) Annualised Offshore USD Funds Launch date Alpha * Global Equity Fund of Funds 1.4% 01-Jul-00 Net Global Emerging Markets 5.5% 14-Jul-08 Gross Global Bond 2.3% 01-Oct-09 Gross Africa Frontiers 8.8% 01-Oct-08 Gross Global Capital Plus 7.4% 01-Sep-0
Slide 14: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) Excellent performance since inception • Global Emerging Markets Strategy has delivered a 7.2% p.a. US dollar return (gross of fees) since launch in July 2008 versus 1.7% p.a. for the MSCI Emerging Markets benchmark, resulting in alpha of 5.5% p.a. since inception • Have
Slide 15: Retail business highlights
Retail business highlights Retail assets under management of R226bn Net inflows of R8bn Coronation remains the largest manager of long-term retail assets (15.2% market share) Raging Bull Management Company of the Year for the third consecutive year, and Morningstar Best Large Fund House for the fift
Slide 16: Domestic flagship funds
Domestic flagship funds Meeting our clients’ key investment needs as at 31 March 2015 Risk Profile AUM Investment Objective Conservative Moderate Aggressive as at 3 Years → 31 Mar 2015 2/10 3/10 4/10 6/10 8/10 16.7% Long-term Growth Top (Equity Only) R23.5bn 20 12.7% 15.7% Return (Annualised Return)
Slide 17: Domestic flagship funds
Domestic flagship funds Consistent top quartile returns as at 31 March 2015 5-year 10-year Since inception Fund 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) Cap
Slide 18: International feeder funds - ZAR
International feeder funds - ZAR Building a solid track record as at 31 March 2015 Since inception Fund 5-year ranking ranking Long-term Global Opportunities Equity growth 1st Quartile 1st Quartile [ZAR] Feeder (equity only) Long-term Global Managed [ZAR] growth 1st Quartile 1st Quartile Feeder (mul
Slide 19: Financial results
Financial results CORONATION &? FUND MANAGERS TRUST IS EARNED
Slide 20: Financial highlights
Financial highlights as at 31 March 2015 March % 2015 Change Assets under Management R636bn 8 Revenue (from fund management) R2 167m (6) Profit (from fund management) R1 152m (11) Profit before tax R1 167m (12) Profit for the year R861m (11) 19
Slide 21: Total net fee (actual revenue)
Total net fee (actual revenue) as at 31 March 2015 1.20% 1.00% 0.97% 0.87% 0.79% 0.79% 0.80% 0.75% 0.68% 0.69% 0.70% 0.70% 0.69% 0.68% 0.58% 0.59% 0.59% 0.60% 0.60% 0.56% 0.52% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 2015 H1 H1 20
Slide 22: Cost comparison
Cost comparison as at 31 March 2015 March March % 2015 2014 Change R’m R’m Cost to income (6) 47.5 44.7 Fixed operational costs (13) 228 201 Variable costs 4 807 841 Operating expenses 1 1 035 1 042 21
Slide 23: Closing remarks
Closing remarks CORONATION ®s
Slide 24: Closing remarks
Closing remarks Reminder that earnings stream of a fund manager is cyclical and volatile Performance fee caution materialised in past 6 months - the base was abnormally high Financial markets continue to remain uncertain & volatile Remain focused on producing long-term value for clients, ensuring su
Slide 25: 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 stateme
Slide 26: Thank you
Thank you TRUST IS EARNED
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