Abrdn European Logistics Income Plc · LSE:ASLI
Abrdn European Logistics Income — Aberdeen Asset Management — H1 2017 Earnings Presentation
42 slides from Abrdn European Logistics Income's earnings presentation, May 2, 2017
Slide 1: Aberdeen Asset Management Interim results to March 2017
Aberdeen Asset Management Interim results to 31 March 2017 Martin Gilbert, Chief Executive and Bill Rattray, Finance Director 2 May 2017
Slide 2: Financial highlights
Financial highlights 1H 2016 2H 2016 1H 2017 Operating margin 32.2% 32.9% 35.3% Underlying pre-tax profit £162.9m £189.8m £195.2m Underlying diluted EPS 9.6p 11.1p 11.5p Interim dividend 7.5p 7.5p Regulatory capital headroom £80m £60m £76m Period end AuM £292.8bn £312.1bn £308.1bn 1 Aberdeen Asset M
Slide 3: Operational highlights
Operational highlights Resilient AUM financial • Underlying PBT increased to £195.2 million, +19.8% compared to 1H 2016 £312 billion performance • Net outflows of £13.4 billion Flows reflect growing Net flows interest in wider range • Significant recovery: Q1 net flows of £10.5 billion, reducing to
Slide 4: Recovery in flows across a number of asset classes
Recovery in flows across a number of asset classes • Global emerging equities and Emerging market debt had 1Q 2017 2Q 2017 1H 2017 FY 2016 combined inflows of £0.8 billion. US small cap equities £bn £bn £bn £bn Inflows continued to grow Equities 3.0 3.5 6.5 10.6 Fixed income 4.1 3.9 8.0 15.8 Multi a
Slide 5: Distribution activity continues to increase
Distribution activity continues to increase • Sentiment is returning to emerging markets and Asia at the same time as our investment performance is improving • Active management of opportunities pipeline by distribution team – activity levels of sales team have increased significantly • More diversi
Slide 6: Well positioned to address industry challenges
Well positioned to address industry challenges Industry theme Aberdeen response • Broad range of capabilities includes Multi- Investors globally are demanding asset, Quant and Alternatives Global more and broadening their • Continue to add global coverage for these requirements skills Investing gl
Slide 7: Financial results
Financial results 6 Aberdeen Asset Management PLC
Slide 8: Key points
Key points Revenues and profits are significantly higher than the first half of 2016 boosted by markets and currencies, and close control of costs Blended fee rate remained steady at 33.7bps Strong conversion of operating cash flow into cash £70 million cost savings actioned although costs saves mas
Slide 9: Reconciliation of changes in AuM
Reconciliation of changes in AuM Equities Fixed Multi asset AlternativesQuantitative Property Total income investments £bn £bn £bn £bn £bn £bn £bn AuM at 30 September 2016 89.1 70.0 89.9 21.8 22.8 18.5 312.1 Net new business flows (8.6) (1.3) (1.3) (0.5) (0.9) (0.8) (13.4) Markets and performance 6.
Slide 10: Income statement progression
Income statement progression 1H 2016 2H 2016 FY 2016 1H 2017 £m Margin £m Margin £m Margin £m Margin Revenue 483.6 523.5 1,007.1 534.9 Staff costs 205.5 42.5% 217.4 41.5% 422.9 42.0% 217.6 40.6% Other costs 122.2 25.3% 133.9 25.6% 256.1 25.4% 128.7 24.1% Total operating costs 327.7 67.8% 351.3 67.1%
Slide 11: Profit before tax
Profit before tax 250.0 +13.8 +5.0 -11.0 -23.6 +9.7 +1.7 200.0 195.2 +26.1 +10.6 189.8 162.9 150.0 100.0 50.0 - - - - 2016 1H Management Transaction & Operating costs Net interest & 2016 2H Management Transaction & Operating costs Net interest & 2017 1H fees performance investment fees performance i
Slide 12: Blended fee rate
Blended fee rate 1H 2016 2H 2016 FY 2016 1H 2017 bps bps bps bps Equities 65.9 66.8 66.2 66.9 Fixed income 18.8 19.3 19.1 17.9 Multi asset 15.2 15.7 15.5 15.8 Alternatives 44.5 43.4 44.4 45.2 Quantitative investments 9.0 8.5 8.7 8.4 Property 47.6 42.6 45.5 40.9 Blended average management fee 33.4 33
Slide 13: Cost efficiency activities complete
Cost efficiency activities complete • The emphasis has been on cost discipline and managing for long term efficiency All activities • Largest source of saving came from role reduction : now complete in – Senior retirements £70 million – Non-replacement of staff, following review of team structures p
Slide 14: Cash flow
Cash flow 1H 2017 £m Operating cash flow, after interest and tax 124.0 Capital expenditure and long term investment (21.8) Net decrease in seed capital 32.8 11.0 Coupon payments on capital securities & preference shares (16.5) 118.5 Ordinary dividend payments (154.2) (35.7) Hedging of deferred varia
Slide 15: Regulatory capital
Regulatory capital Regulatory Mar 16 Sep 16 Mar 17 status £m £m £m Ordinary shareholders’ funds – as reported 1,690 1,691 1,628 Less: provision for dividend (96) (154) (96) CET1 1,594 1,537 1,532 5.0 % Preference shares AT1 100 100 100 Tier 1 1,694 1,637 1,632 7.0% Perpetual capital securities Tier
Slide 16: Summary
Summary • Now have a full service offering. Committed Distinctive and strong capabilities to growing alternatives and solutions, but our traditional strengths remain equally important • Long term outlook – committed to investing Discipline investment style through cycle • Expanded growth opportuniti
Slide 17: Appendix
Appendix Supplementary financials New business flows AuM breakouts Performance
Slide 18: Everything to meet clients' investment objectives
We now have a competitive full service capability Equities Fixed Income Property Alternatives Quantitative Multi-asset • Specialist markets • Global reach • Bottom-up • Counter-cyclical • Passive • Unconstrained • Proprietary • Wide range • Absolute value • Specialist insights • Enhanced index • Ope
Slide 19: Revenue analysis
Revenue analysis 1H 2016 2H 2016 FY 2016 1H 2017 £m £m £m £m Management fees 479.4 99% 505.5 97% 984.9 98% 515.2 96% Transaction fees 2.7 1% 3.7 0% 6.4 0% 11.9 2% 482.1 100% 509.2 97% 991.3 98% 527.1 98% Performance fees 1.5 0% 14.3 3% 15.8 2% 7.8 2% 483.6 100% 523.5 100% 1,007.1 100% 534.9 100% 18
Slide 20: Performance fees
Performance fees 1H 2016 2H 2016 FY 2016 1H 2017 £m £m £m £m Equities 0.2 13% 11.4 80% 11.6 73% 2.0 25% Fixed income - - - - - - 0.6 8% Alternatives 0.3 20% 2.0 14% 2.3 15% - - Property 1.0 67% 0.9 6% 1.9 12% 5.2 67% Revenue 1.5 100% 14.3 100% 15.8 100% 7.8 100% 19 Aberdeen Asset Management PLC
Slide 21: Revenues, costs and margin
Revenues, costs and margin 700 50% Revenue Operating Costs Operating margin 614.1 605.2 45% 600 563.8 562.5 534.9 40% 523.5 516.0 503.5 483.6 500 35% 456.1 413.1 398.1 30% 400 385.9 343.3 25% 294.9 300 20% 229.0 229.7 201.8 200 185.3 192.2 15% 166.0 10% 100 5% - 0% 1H '07 2H '07 1H '08 2H '08 1H '09
Slide 22: Analysis of operating expenses
Analysis of operating expenses 1H 2016 2H 2016 FY 2016 1H 2017 £m £m £m £m Staff costs 205.5 217.4 422.9 217.6 Third party admin 34.0 30.0 64.0 32.2 Accommodation 13.9 18.0 31.9 16.8 IT 22.7 22.7 45.4 25.3 Marketing 9.2 12.5 21.7 9.3 Depreciation 3.8 4.3 8.1 3.9 Other 38.6 46.4 85.0 41.2 Non staff c
Slide 23: Seed capital used to support launch of new funds
Seed capital used to support launch of new funds FY 2016 1H 2017 £m £m Equities 19.1 21.8 Fixed income 66.1 64.1 Multi asset 57.5 43.6 Alternatives 45.3 15.9 188.0 145.4 Accounting adjustment for consolidation rules 12.6 50.3 Total 200.6 195.7 Increased commitment to seed capital, both number and va
Slide 24: New business flows
New business flows 23 Aberdeen Asset Management PLC
Slide 25: New business flows – by asset class
New business flows – by asset class Group 1H 2016 2H 2016 FY 2016 1H 2017 £m £m £m £m Inflows Equities 5,113 5,536 10,649 6,501 Fixed income 9,127 6,696 15,823 7,973 Multi asset 3,647 3,602 7,249 5,520 Alternatives 351 119 470 450 Quantitative investments 644 521 1,165 799 Property 2,575 1,102 3,677
Slide 26: New business flows
New business flows Group 1Q 2017 2Q 2017 1H 2017 £m £m £m Inflows Equities 2,999 3,502 6,501 Fixed income 4,042 3,931 7,973 Multi asset 2,171 3,349 5,520 Alternatives 281 169 450 Quantitative investments 249 550 799 Property 420 1,020 1,440 10,162 12,521 22,683 Outflows Equities 9,597 5,513 15,110 F
Slide 27: New business flows – Equities
New business flows – Equities Group 1Q 2017 2Q 2017 1H 2017 Inflows £m £m £m Asia Pacific 1,063 934 1,997 Global emerging markets 1,144 1,877 3,021 Europe 5 14 19 Global & EAFE 198 313 511 UK 40 31 71 US 549 333 882 2,999 3,502 6,501 Outflows Asia Pacific 3,928 2,302 6,230 Global emerging markets 1,
Slide 28: New business flows – Fixed income
New business flows – Fixed income Group 1Q 2017 2Q 2017 1H 2017 Inflows £m £m £m Asia Pacific 32 60 92 Australia 171 124 295 Convertibles 23 11 34 Emerging markets 269 387 656 Europe 6 133 139 Global 131 57 188 High yield 114 153 267 Money market 1,660 2,086 3,746 UK 1,342 856 2,198 US 294 64 358 4,
Slide 29: AuM breakouts
AuM breakouts 28 Aberdeen Asset Management PLC
Slide 30: A diversified asset base
A diversified asset base 31 March 17 £bn By asset class Equities 88.2 Quantitative Property investments 6% 8% Alternatives Equities Fixed Income 65.4 29% 7% Multi asset 90.5 Multi asset Alternatives 21.9 29% Fixed income 21% Quantitative investments 23.9 Property 18.2 Total 308.1 Our strategy for di
Slide 31: Broad distribution base to support more capabilities
Broad distribution base to support more capabilities Assets by client type AuM by client domicile Central banks government Middle East Closed-end agencies Asia & Africa funds 2% Pacific 1% Other 5% 6% institutional United 6% Kingdom Americas 17% 57% Pension funds 15% Insurance 45% Europe ex UK 19% O
Slide 32: Equities & Fixed income analysis
Equities & Fixed income analysis Equities Fixed income US Europe Asia European UK 3% 1% Global 3% 5% 3% High yield 4% Asia Pacific 3% 31% Australian 6% Global UK 17% 43% EMD 10% US 5% Emerging markets Money market 43% 23% 31 March 17 £bn 31 March 17 £bn UK 28.4 Asia Pacific 27.7 Money market 14.7 Em
Slide 33: Multi asset and Alternatives analysis
Multi asset and Alternatives analysis Multi asset Alternatives Other Infrastructure institutional Pension 11% Pooled funds 1% 2% 7% Property multi manager 7% Private equity Insurance 45% 90% Hedge fund solutions 37% 31 March 17 £bn 31 March 17 £bn Insurance 80.9 Private equity 9.8 Wealth 0.2 Hedge f
Slide 34: Quantitative investments and Property analysis
Quantitative investments and Property analysis Quantitative investments Property Pooled funds Continental 10% Europe 22% UK 52% Nordic Insurance 26% 90% 31 March 17 £bn 31 March 17 £bn UK 9.5 Insurance 21.5 Nordics 4.7 Pooled funds 2.4 Continental Europe 4.0 Total 23.9 Total 18.2 33 Aberdeen Asset M
Slide 35: International reach: offices across the world
International reach: 38 offices across the world AuM by client domicile Full service with property Full service without property Distribution only Liaison office Boston Aberdeen Edinburgh Madrid Bandung New York Amsterdam Frankfurt Milan Bangkok Philadelphia Abu Dhabi Helsinki Oslo Hong Kong Stamfor
Slide 36: Performance
Performance 35 Aberdeen Asset Management PLC
Slide 37: Equity performance
Equity performance To 31 March 2017 YTD 1 year 3 years 5 years 10 years Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark % pa % pa % pa % pa % pa % pa % pa % pa % pa % pa Asia Pacific ex Japan Equity 1 13.01 11.50 38.45 36.23 12.47 14.30 8.66 10.31 11.13
Slide 38: Fixed income performance
Fixed income performance To 31 March 2017 1 year 3 years 5 years 10 years Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark Aberdeen Benchmark % pa % pa % pa % pa % pa % pa % pa % pa Global Government 1 (USD) -3.63 -3.65 -1.11 -1.20 -0.43 -0.58 3.34 3.03 Global Aggregate Core2 (USD) -1.18 -1.
Slide 39: Aberdeen UK Property Performance
Aberdeen UK Property Performance Fund Performance Aberdeen UK Property Fund 15 10 5 0 -5 -10 -15 -20 -25 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 1 yr 2 yrs 3 yrs 5 yrs 7 yrs 10 yrs Since 2017 p.a. p.a. p.a. p.a. p.a. Launch p.a. YTD Since Mar 2 yrs 3 yrs 5 yrs 7 yrs 10 yrs Launch 2008 2009
Slide 40: Aberdeen Diversified Growth Fund – long-term performance
Aberdeen Diversified Growth Fund – long-term performance Cumulative performance vs. benchmark and target* Diversified Growth Fund Libor* Libor +4.5%* 140 130 120 110 100 90 Oct 2011 Apr 2012 Oct 2012 Apr 2013 Oct 2013 Apr 2014 Oct 2014 Apr 2015 Oct 2015 Apr 2016 Oct 2016 Source: Aberdeen Asset Manag
Slide 41: Aberdeen DGF – 12 month performance attribution to end Q1 17
Aberdeen DGF – 12 month performance attribution to end Q1 17 Performance attribution by month 12.00 11.0 (%) 10.00 Government Bonds 8.00 Special Opportunities Insurance Linked 6.00 Absolute Return Emerging Market Bonds Asset Backed Securities 4.00 Loans 2.3 High Yield 1.8 1.8 2.00 0.8 1.2 Infrastruc
Slide 42: Important information
Important information These presentation slides may contain forward-looking statements with respect to the financial condition and results of the operations and businesses of Aberdeen Asset Management PLC. These statements and forecasts involve risk and uncertainty because they relate to events and
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