Pacific Current Group Ltd · ASX:PAC
Pacific Current — Treasury Group — Investor Presentation (March 2010)
35 slides from Pacific Current's investor presentation, Mar 30, 2010
Slide 1: Treasury Group Ltd (TRG) Investor Update
Treasury Group Ltd (TRG) Investor Update Melbourne 30 March 2010 Sydney 31 March 2010
Slide 2: Today's presentation
Today’ss presentation Today • A better b tt understanding d t di off TRG’s TRG’ position iti iin th the A Australian t li andd iinternational t ti l markets k t • A look inside the “engine room” of TRG • Focus on distribution capabilities • Our strategic objectives 2
Slide 3: TRG Financials to Dec 2009
TRG Financials to Dec 2009 6 months to 31 December 2009 $000 2009 2008 %change Total revenue 2,476 2,953 (16%) Equity share of associates 7,404 5,431 36% Expenses (4,681) (4,892) (4%) Net profit after tax 6,421 3,196 101% NORMALISED NET PROFIT 5,397 5,480 (1.4%) Basic earnings per share 27.83 13.84
Slide 4: TRG business model
TRG business model • We partner with fund management groups • Working with the best investment teams • Support the ongoing growth of the business • Administration, compliance and business support • Distribute funds in both retail and institutional markets 4
Slide 5: TRG Australia's leading developer of funds management businesses
TRG‐ Australia TRG Australia’ss leading developer of funds management businesses • $14.5bn under management as at 31 December 2009 • Revenue ~$70m - $75m • 65 investment professionals • Investment teams in Sydney, Melbourne, Singapore and Edinburgh • Global and domestic clients • Record of success i
Slide 6: TRG's evolution continues
TRG’ss evolution continues TRG US Pension Funds Dublin 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6
Slide 7: TRG funds under management (FUM)
TRG funds under management (FUM) 16,000 14,000 12,000 10,000 Millions 8,000 6,000 , 4,000 2,000 0 June 2003 June 2004 June 2005 June 2006 June 2007 June 2008 June 2009 Dec 2009 AUD 7
Slide 8: TRG FUM attribution
TRG FUM attribution Jun 2003 Dec 2009 CANNAE ORION ARMYTAGE TRILOGY 0% 1% 2% 11% IML 25% RARE 8% TAAM AR Capital 10% 1% Aubrey 2% Celeste GVI 4% 4% IML 97% Orion 35% 8
Slide 9: Large team of investment professionals
Large team of investment professionals Number of investment professionals within the group •TRG’s managers added staff 70 65 during the market downturn 60 55 50 •New acquisitions bring teams of 50 experienced managers 40 40 30 30 •Large team represents depth of 23 investment in future growth and 20
Slide 10: Observations in the asset management market
Observations in the asset management market • Boutique investment managers generally performed well in the market downturn • Investment and client focused • No other corporate distractions • Large institutions offshore failed to support their asset managers • Market volatility increased demand for p
Slide 11: Trends in asset management
Trends in asset management • Investment professionals looking to work with strong partners • Global trend towards boutiques and boutique incubator managers • Increased consolidation the market – too many smaller asset managers • Clients will increasingly look for alpha / performance additions in a l
Slide 12: Global comparison – boutique investors
Global comparison – boutique investors Asset Management • Conor, Clark, Lunn only • Thames River • NAB Invest • Ignis Bank/Financial • Pinnacle • Hermes institution • Ascalon/BT • Sun Life Canada • Hellman & Friedman Private Equity • Fiduciary • Rosemount • Lovett Minnick • Northern Lights Australia
Slide 13: Our competitive advantage
Our competitive advantage • Partnership culture • Identify the best investment talent • TRG G staffed ff by senior experienced professionals f • Ability to grow domestically and offshore 13
Slide 14: How does TRG operate?
How does TRG operate? Four key areas of TRG’s operation – the engine room Attraction of new talent Management and support of the business Service – via Treasury Group Investment Services (TIS) Distribution 14
Slide 15: Attraction of new talent
Attraction of new talent Attract and identify y with the best talent • Work only investment talent • Screen globally for candidates • Quantitative and q qualitative screening g E l t Evaluate • Sounding key global contacts • Highest qualities of honesty and C fi cultural Confirm lt l fit i t it inte
Slide 16: Current Managers
Attraction of new talent Current Managers 16
Slide 17: What makes a good investment manager?
Attraction of new talent What makes a good investment manager? • There is no simple way of describing what makes a good manager • It may differ between asset classes • As we move internationally, there are different styles and approaches • Some principles that do hold: • Manager must be competitive
Slide 18: Management and support of the business
Management and support of the business • We work in partnership with the manager • Our experienced team offer strategic and operational support • TRG has a small team of experienced professionals, providing: • Investment and finance industry backgrounds • Outstanding corporate and business administr
Slide 19: Examples of TRG management support
Management and support of the business Examples of TRG management support • Setting strategic objectives – sounding board for principals • Development of new products • Dealing with issues as they arise • Human resources management • Client relationships • Managing the life cycle of the business – f
Slide 20: Treasury Group Investment Services
Service – via TIS Treasury Group Investment Services • Responsible entity • Risk management • Compliance • Human Resources • Operations • Administration • Accounting • Joint purchasing (including IT services) • Experienced in various fund classes such as UCITS, Australian Domiciled, ERISA and Cayman
Slide 21: Objectives of Treasury Group Investment Services (TIS)
3 Service – viaService 3. Treasury – via Investment TIS Services Objectives of Treasury Group Investment Services (TIS) • Offer world class support to our boutiques • Boutiques manage $14.5bn of assets for our clients • Reviewed regularly by local and global consultants and clients • TIS g y and com
Slide 22: Distribution
Distribution • Cli t b Client base growing i b both th iin A Australia t li and d offshore ff h • Clients in all major regions • Consistent net new funds flow • Retail and institutional focus – both domestic and offshore • Small number of high quality staff 22
Slide 23: Distribution
Distribution • TRG’ss approach to Distribution TRG • TRG client map • Market trends • Our approach going forward 23
Slide 24: Distribution
Distribution TRG distribution executes a holistic end to end sales process delivered by its highly experienced team. TRG distribution core offerings: • target market research and market positioning • product offering: development, review and ongoing audit • execution of sales strategy • client relat
Slide 25: Our People
Distribution Our People • Inside TRG • At Boutique level • Rob Sullivan (17yrs+) - Head of distribution • William Tomac (15yrs+) – GVI • Wayne McCauley (15yrs+); Peter Jackson • Peter Walsh (20 yrs+) - Head of Retail distribution (20yrs+); David Glascott (20yrs+); Nicole Aubrey (12yrs+); David Blair
Slide 26: Key target markets
Distribution Key target Key decision markets makers WINNING THE CLIENT Competitive C titi Global and offering local gatekeepers TRG PROVEN TRACK RECORD TRUST & CREDIBILITY 26
Slide 27: Australian Distribution platform and record
Distribution Australian Distribution platform and record Institutional Retail Platforms Rating Yes Yes Y Yes Yes Yes Yes Yes Yes Yes 2010 - - Yes Yes Yes Yes Yes Yes - - 27
Slide 28: Distribution focused mostly locally – FUM $2.4BN
Distribution Distribution focused mostly locally – FUM $2.4BN JUN 20033 Gatekeeper Clients coverage 28
Slide 29: Distribution focused mostly locally – FUM $8.6BN
Distribution Distribution focused mostly locally – FUM $8.6BN JUN 20055 Gatekeeper Clients coverage 29
Slide 30: Distribution spans the globe – FUM $14.5BN
Distribution Distribution spans the globe – FUM $14.5BN DEC 2009 9 Gatekeeper coverage Clients and prospects 30
Slide 31: History of FUM Growth
History of FUM Growth 2001 2002 2003 2004 2005 2006 2007 2008 2009 $300m $3.5b $0 $0 $4.8b $0 $600m $0 $1.4b $0 $1 2b $1.2b $130m $80m $300m 31 As at Dec 2009
Slide 32: Distribution Key Trends
Distribution Key Trends • Further consolidation • Consolidation of superfunds to continue • Changing influence of decision makers • Clients building in-house manager selection expertise • Gatekeepers offering specialist expertise • Rise of the growth markets • Evolving pension systems globally • Rel
Slide 33: Summary
Distribution Summary • Dedicated to building long term assets for our boutique managers • Maintaining TRG’s targeted approach • Investing in high quality sales professionals • Continue to build network globally 33
Slide 34: Manager Snapshot
Manager Snapshot International Manager Investment Style Est. Vehicles Location Available* Treasury Asia Asset High Alpha Asian Equities 2005 Pooled Fund, Singapore Managementt M Mandate, M d t UCITS Global Value Investors Defensive Value Global Equity 2005 Pooled Fund, Sydney Mandate Aubrey Capital
Slide 35: TRG future strategy
TRG future strategy • We believe we are positioned for future growth • We will focus on asset classes where we do not have a presence • Target both domestic and offshore managers and clients • Our model has broad experience to take growth forward 35