Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — H1 2010 Earnings Presentation
30 slides from Coronation Fund Managers's earnings presentation, May 6, 2010
Slide 1: March 2010 Reviewed Interim Results
March 2010 Reviewed Interim Results 6 May 2010
Slide 2: Agenda
Agenda Financial highlights Overview of company Financial results Business review Retail Institutional International Transformation Other
Slide 3: Market movements
Market movements 31 March 2010 3 months 6 months 12 months Economic group % % % All Share 4.5 16.4 44.1 All Share 3.91 15.40 41.17 (Capital Return) All Share 0.57 1.03 2.93 (Dividend Return) Resource 20 2.1 19.1 36.0 Small Cap 5.5 12.4 44.6 Industrials 6.2 6.6 48.1 Financials 9.9 17.0 51.3
Slide 4: Financial Highlights
CORONATION & FUND MANAGERS Financial Highlights
Slide 5: Financial highlights
Financial highlights AUM R176bn +47% Net flows of R4.5bn Headline earnings 71.2 cps +219% Headline earnings (diluted) 64.8 cps +221% Dividend 51.0 cps +292%
Slide 6: Financial highlights (Rm)
Financial highlights (Rm) Revenue (from fund management) 654 +80% Profit (from fund management) 327 +168% PAT 227 +210% Cashflow 256 +127%
Slide 7: Company Overview
CORONATION & FUND MANAGERS Company Overview
Slide 8: Company structure
Company structure at 31 March 2010 C o ronation Fund Managers Ltd 90% 10% C o ronation Investment Th e Imvula Trust Ma nagement (Pty) Ltd 100% 100% 100% 100% 100% C o ronation C o ronation Life C o ronation Asset C oronation Investment Management Company Assurance C FM (Isle of Man) Ltd Ma nagement
Slide 9: Assets under management
Assets under management 2003 – 31 March 2010 200,000 180,000 176,380 160,000 154,740 140,000 133,730 124,990 120,460 120,000 101,440 100,000 81,930 80,000 63,759 60,000 53,697 40,000 20,000 0 2003 2004 2005 2006 2007 2008 2009 2009 2010 Sept Sept Sept Sept Sept Sept Mar Sept Mar 58% of AUM subject t
Slide 10: Financial Results
CORONATION & FUND MANAGERS Financial Results
Slide 11: Earnings
Earnings March March Change % 2010 2009 Attributable earnings (R'000) 215 223,997 71,200 EPS (cents) 215 71.2 22.6 Headline earnings (R'000) 219 223,997 70,361 HEPS (cents) 219 71.2 22.3 Diluted HEPS (cents) 221 64.8 20.2 Weighted average shares in issue - 31 March (0.3) 314,646,591 315,636,428 Actu
Slide 12: Earnings
Earnings March March Change % 2010 2009 Cost to income 30.4 51.2 66.8 Cost to income (excluding collection fees) 31.8 49.3 65.0 EBITDA (Rm's) 139.3 332,460 138,935 Market capitalisation (Rm's) 98.9 3,066,339 1,541,373 Share price @ 31 March (Rands) 98.8 9.74 4.90 Price earnings per share* (37.8) 6.8
Slide 13: Total net fee
Total net fee as at 31 March 2010 1.20% 1.00% 0.97% 0.87% 0.80% 0.75% 0.69% 0.70% 0.68% 0.68% 0.58% 0.59% 0.60% 0.56% 0.52% 0.53% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009/H1 2009 2010/H1
Slide 14: Cost comparison
Cost comparison March March 2010 2009 Change % R'000 R'000 Fixed operational c osts (3.7) 113,225 109,173 Variable costs (93.7) 215,193 111,080 IFRS 2 9.6 9,588 10,604 TOTAL OPERATIONAL COSTS (46.4) 338,006 230,857 Other costs (Interest expense*) 64.3 5,250 14,697 TOTAL COSTS (39.8) 343,256 245,554
Slide 15: Business Overview Institutional
Business Overview Institutional
Slide 16: Performance
Performance Alexander Forbes Global Large Manager Watch 5 years ending 31 March 2010 Investec 19.89% Allan Gray 19.39% Coronation 18.48% Prudential 17.35% Median 16.41% OMIGSA 16.35% Cadiz 15.30% Metropolitan 15.24% RMBAM 15.06% Oasis 14.97% SIM Global 14.96% Unique Stanlib 13.53%
Slide 17: Performance
Performance Alexander Forbes SA Large Manager Watch 5 years ending 31 March 2010 Allan Gray 21.43% Investec 20.84% Coronation 20.09% Prudential 19.13% Median 18.65% OMIGSA 17.89% Oasis 17.54% Metropolitan 17.27% RMBAM 17.21% Cadiz 16.56% SIM Domestic Unique 15.98% Stanlib 15.38%
Slide 18: Business Overview Retail
CORONATION & FUND MANAGERS Business Overview Retail
Slide 19: League table: long-term funds
League table: long-term funds AUM Net Inflow Rank Manager 31 March 2010 H1/2010 1 Allan Gray 101.7 7.8 2 Investec 45.6 1.7 3 Nedgroup 33.9 2.0 4 Old Mutual 33.0 0.0 5 Coronation 32.3 5.3 6 Stanlib 29.0 0.3 7 RMB 19.4 -0.9 8 SIM 16.2 1.0 9 Advantage 14.6 0.3 10 Acsis 12.6 0.5 Source: Coronation calcu
Slide 20: Core domestic fund range: risk versus return
Core domestic fund range Risk versus return Return = annualised returns LT Growth (equity only) 24.5% Coronation Top 20 17.1% Return LT Growth (multi asset) 17.7% Coronation Balanced Plus 11.6% 14.2% Coronation Capital Plus Income & 7.3% Growth New Fund Coronation Balanced Defensive Income 9.5% Coro
Slide 21: Core international fund range: risk versus return
Core international fund range Risk versus return Return = annualised returns New Fund Coronation GEM LT Growth (equity only) 7.5% Coronation World Equity 13.0% Return New Fund Coronation Global Managed LT Growth (multi asset) 9.5% Coronation Optimum Growth 11.6% Preservation New Fund Coronation Lati
Slide 22: International
CORONATION & FUND MANAGERS International
Slide 23: UK and Ireland
UK and Ireland AUM up from $1.33bn (Sept 09) to $1.65bn (March 10). AUM increase attributable to market subscriptions. Investment performance is very pleasing with all funds ahead of benchmarks
Slide 24: Africa
Africa Africa portfolios delivering excellent absolute and relative performance Successfully raising assets Botswana AUM up from BWP1.7bn (March 09) to BWP2.3bn (March 10) Excellent relative performance Namibian AUM flat from NAM$8.1bn (Sept 09) to NAM$7.9bn (March 10) AUM decline attributable to ou
Slide 25: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) A total of 3 funds, managed by a team of 7 headquartered in Cape Town Excellent relative performance of the Global Emerging Markets Fund 8% annualised outperformance of MSCI GEM index since inception (July 2008) Great relative performance position vs. GEM peers – 2/40 H
Slide 26: Transformation
CORONATION & FUND MANAGERS Transformation
Slide 27: Transformation
Transformation Rated as Level IV contributor in terms of DTI codes Staff Ownership scheme (Imvula) Outstanding debt reduced by 45% since inception Positive equity Enterprise development Providing business support to 7 BEE stockbrokers Second 3-year term in process
Slide 28: Other
CORONATION ®& FUND MANAGERS Other
Slide 29: Initiatives
Initiatives PPS Investments Growing AUM strongly (off a low base) Gaining ongoing traction among PPS members Private Equity Exited the general partnership Remain a limited partner The fund closed successfully on 1 March 2010
Slide 30: Thank you
CORONATION & FUND MANAGERS Thank you
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