Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — FY2015 Earnings Presentation
26 slides from Coronation Fund Managers's earnings presentation, Nov 10, 2015
Slide 1: 2015 Reviewed Annual Results
2015 Reviewed Annual Results for the year to 30 September 2015 10 November 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 30 September 2015 Total AUM increased to R610bn (+3.7%) Total net outflows for the year of R15.3bn International AUM increased to R141bn (+11%) • Net inflows of R14.5bn to international products/mandates Revenue decreased to R4.4bn (-7%) Diluted headline earnings per share of 516.0
Slide 5: Assets under management (Rbn)
Assets under management (Rbn) 700 610 588 600 141 492 127 500 85 400 339 40 300 247 203 24 461 469 200 407 155 15 134 125 11 299 101 12 12 100 82 223 64 9 188 54 7 144 122 113 7 7 92 57 75 47 0 Sept 2003 Sept 2004 Sept 2005 Sept 2006 Sept 2007 Sept 2008 Sept 2009 Sept 2010 Sept 2011 Sept 2012 Sept 2
Slide 6: Business update
Business update CORONATION ®&? FUND MANAGERS TRUST IS EARNED
Slide 7: Market movements
Market movements as at 30 September 2015 3 months 6 months 12 months to end to end to end Economic group Sept 2015 Sept 2015 Sept 2015 % % % All Share (ZAR) (2.13) (2.32) 4.79 Resources (17.88) (21.89) (37.07) Small Cap (3.85) (2.45) 7.22 Industrials 0.80 2.46 15.76 Financials (1.06) (3.32) 19.11 US
Slide 8: Institutional business highlights
Institutional business highlights Institutional AUM of R387.2bn Total net outflows from institutional business of R21.8bn: • Local client net outflows of R34.2 billion consistent with management expectations • International client net inflows of R12.4 billion Augmented international product offering
Slide 9: Performance
Performance Alexander Forbes Global Large Manager Watch™ 5-year period ending 30 September 2015 Foord Asset Management 16.3% Investec Asset Management 15.9% Coronation 15.9% Prudential Global Balanced 15.5% Stanlib 15.1% Oasis 14.3% Allan Gray 14.2% OMIG MacroSolutions 14.0% SIM Global Unique 13.8%
Slide 10: Coronation Houseview Equity portfolio
Coronation Houseview Equity portfolio performance for periods ending 30 September 2015 Since 5 years 10 years 20 years Inception* 1 year (p.a.) (p.a.) (p.a.) (p.a.) % % % % % Houseview Equity 3.2 16.5 17.4 17.5 18.4 FTSE/JSE CAPI 4.9 14.8 15.1 14.4 15.5 Alpha (1.7) 1.7 2.3 3.1 2.9 * Since inception
Slide 11: Coronation Global Absolute portfolio
Coronation Global Absolute portfolio performance for periods ending 30 September 2015 Since 5 Years 10 Years Inception* (p.a.) (p.a.) (p.a.) % % % Global Absolute 12.6 14.2 16.8 CPI + 6% 11.6 12.1 12.2 Alpha 1.0 2.1 4.6 * Since inception – August 1999 Source: Independent Retirement Fund Survey as at
Slide 12: Coronation Strategic Bond portfolio
Coronation Strategic Bond portfolio performance for periods ending 30 September 2015 Since 5 years 1 year inception* (p.a.) % (p.a.) % % Strategic Bond 7.8 9.2 10.3 JSE ASSA All Bond Index 7.0 7.7 8.7 Alpha 0.8 1.5 1.6 * Since inception – January 2008 Source: Independent Retirement Fund Survey as at
Slide 13: Strong international track record
Strong international track record (US dollar returns) Annual Alpha* Offshore USD Funds Launch date % Global Equity Fund of Funds 1.1 01-Jul-00 Net Global Emerging Markets Strategy 4.1 14-Jul-08 Gross Global Bond 1.8 01-Oct-09 Gross Africa Frontiers Strategy 6.0 01-Oct-08 Gross Global Capital Plus 5.
Slide 14: Retail business highlights
Retail business highlights Retail assets under management of R222.4bn Net inflows of R6.5bn Coronation remains one of the foremost managers of long-term retail assets (14.6% market share) Raging Bull Management Company of the Year for the third consecutive year, and Morningstar Best Large Fund House
Slide 15: Domestic Flagship Funds
Domestic Flagship Funds Consistent top quartile returns as at 30 September 2015 5-year 10-year Fund S.I. ranking ranking ranking Long-term growth Top 20 2nd Quartile 1st Quartile 1st Quartile (equity only) Long-term growth Balanced Plus 1st Quartile 1st Quartile 1st Quartile (multi asset) Capital Pl
Slide 16: International Flagship Funds
International Flagship Funds Building a solid track record as at 30 September 2015 Fund 5-year ranking S.I. ranking Long-term Global Emerging Markets 2nd Quartile 1st Quartile growth (equity only) Global Opportunities Equity 1st Quartile 1st Quartile [ZAR] Feeder Long-term growth Global Managed 1st
Slide 17: Financial results
Financial results CORONATION®? FUND MANAGERS TRUST IS EARNED
Slide 18: Financial highlights
Financial highlights 2015 % Rbn Change Assets under Management 610 4 Revenue (from fund management) 4.44 (7) Profit (from fund management) 2.41 (10) Profit before tax 2.43 (10) Profit for the year 1.81 (10) 17
Slide 19: Total net fee (actual revenue)
Total net fee (actual revenue) as at 30 September 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% 0.64% 0.58% 0.59% 0.56% 0.59% 0.60% 0.52% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 18
Slide 20: Earnings and dividend
Earnings and dividend % Sept Sept Change 2015 2014 Diluted HEPS (cents) (10) 516.0 571.6 Interim dividend per share (cents) (11) 246 275 Final dividend per share (cents) (9) 270 296 Actual shares in issue – 30 Sept 349 799 102 349 799 102 Market capitalisation (R’000) 22 838 383 33 808 083 Share pri
Slide 21: Cost comparison
Cost comparison Sept Sept % 2015 2014 Change Rm Rm Cost to income 4 46.8 45.0 Fixed operational costs 13 473 418 Variable costs (7) 1 632 1 757 Total operating expenses (3) 2 105 2 175 20
Slide 22: Fixed expenses
Fixed expenses Sept Sept % 2015 2014 Change Rm Rm Fixed costs 13 473 418 Major contributors: Staff costs 8 212 197 Information Systems 32 75 57 Professional fees 27 43 34 Marketing (5) 61 64 Staff numbers 278 274 21
Slide 23: Closing remarks
Closing remarks CORONATION®? FUND MANAGERS TRUST IS EARNED
Slide 24: Closing remarks
Closing remarks Reminder that annual revenue stream of a fund manager is cyclical Revenue caution materialised in past 12 months - the base was abnormally high Financial markets continue to remain uncertain & volatile Long-term investment track records of all key funds remain highly compelling. Over
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 CORONATION ®&? FUND MANAGERS TRUST IS EARNED
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