Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — H1 2016 Earnings Presentation
27 slides from Coronation Fund Managers's earnings presentation, May 17, 2016
Slide 1: 2016 Reviewed Interim Results
2016 Reviewed Interim Results for the six months ended 31 March 2016 17 May 2016
Slide 2: Agenda
Agenda Highlights Business update • Institutional • Retail Financial results Closing remarks 1
Slide 3: Highlights
Highlights CORONATION
Slide 4: Highlights
Highlights as at 31March 2016 Total AUM decreased to R606bn (-1%) Total net outflows for the period of R47bn International AUM increased to R160bn (+14%) Revenue decreased to R2.1bn (-5%) Diluted headline earnings per share of 229.7 cents (-7%) Total gross interim dividend of 229.0 cents (-7%) Long-
Slide 5: Assets under management (Rbn)
Assets under management (Rbn) 700 610 606 588 600 141 127 160 492 500 85 400 339 40 300 247 203 24 461 469 446 200 407 155 15 134 125 299 11 101 12 12 223 100 82 9 188 54 64 7 144 122 113 7 7 92 57 75 47 0 Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Mar 2003 2004 2005 2006 2007
Slide 6: Business update
Business update CORONATION
Slide 7: Market movements
Market movements 31 March 2016 3 months 12 months Economic group March 2016 March 2016 % % All Share (ZAR) 3.87 3.17 Resources 18.13 (25.45) Small Cap 11.39 3.75 Industrials (0.40) 8.75 Financials 6.22 (0.70) USD/ ZAR exchange 5.50 (17.19) MSCI ACWI (USD) 0.38 (3.81) MSCI Emerging Markets (USD) 5.75
Slide 8: Institutional business highlights
Institutional business highlights Institutional AUM of R380bn Expect to continue to experience outflows while we are closed to new SA institutional investors in specific mandates Local client net outflows for the period affected by • Occupational retirement fund market shrinking • Rebalancing of por
Slide 9: Performance (5-year)
Performance Alexander Forbes Global Large Manager Watch™ 5-year period ending 31 March 2016 Foord Asset Management 16.4% Investec Asset Management 15.8% Coronation 15.7% Allan Gray 15.7% Prudential Global Balanced 15.2% Stanlib 14.4% Oasis 14.2% MMI - Global Balanced Fund 13.8% SIM Global Unique 13.
Slide 10: Performance (10-year)
Performance Alexander Forbes Global Large Manager Watch™ 10-year period ending 31 March 2016 Investec Asset Management 15.0% Coronation 14.6% Allan Gray 14.4% Foord Asset Management 14.1% Prudential Global Balanced 13.6% OMIG MacroSolutions 12.1% Oasis 12.0% MMI - Global Balanced Fund 11.9% Stanlib
Slide 11: Coronation Houseview Equity portfolio
Coronation Houseview Equity portfolio performance for periods ending 31 March 2016 *Since 5 Years 10 years 1 Year inception (p.a.) (p.a.) % (p.a.) % % % Houseview Equity 0.8 15.5 15.6 18.3 CAPI 3.9 13.9 13.5 15.4 Alpha (3.1) 1.6 2.1 2.9 * Since inception - October 1993 Source: Independent Retirement
Slide 12: Coronation Global Absolute portfolio
Coronation Global Absolute portfolio performance for periods ending 31 March 2016 *Since 5 Years 10 years 1 Year inception (p.a.) (p.a.) % (p.a.) % % % Global Absolute 4.5 12.6 13.1 16.6 CPI 6.3 5.7 6.3 6.2 * Since inception – August 1999 Source: Independent Retirement Fund Survey as at 31 March 201
Slide 13: Coronation Strategic Bond portfolio
Coronation Strategic Bond portfolio performance for periods ending 31 March 2016 *Since 1 year 5 years (p.a.) inception % % (p.a.) % Strategic Bond 0.5 9.4 9.8 ASSA All Bond Index (0.6) 7.8 8.1 Alpha 1.1 1.6 1.7 * Since inception – January 2008 Source: Independent Retirement Fund Survey as at 31 Mar
Slide 14: Strong international track record
Strong international track record (US dollar returns) Annual Alpha* Offshore USD Funds Launch date % Global Equity Fund of Funds 1.03 01-Jul-00 Net Global Emerging Markets Strategy 4.97 14-Jul-08 Gross Global Bond 1.72 01-Oct-09 Gross Africa Frontiers Strategy 3.29 01-Oct-08 Gross Global Capital Plu
Slide 15: Retail business highlights
Retail business highlights Retail assets under management of R226bn Coronation remains one of the foremost managers of long-term retail assets (13.7% market share) Net outflows of R11bn for the period Long-term track record compelling Launched tax-free savings products Fee changes 14
Slide 16: Domestic flagship funds
Domestic flagship funds Consistent top quartile returns as at 31 March 2016 5-year 10-year Since inception Fund 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) Cap
Slide 17: International flagship funds
International flagship funds Building a solid track record Since inception Fund 5-year ranking ranking Long-term Global Emerging Markets 1st Quartile 1st Quartile growth (equity only) Global Opportunities Equity 1st Quartile 1st Quartile [ZAR] Feeder Long-term growth Global Managed 1st Quartile 1st
Slide 18: Financial results
Financial results CORONATION
Slide 19: Financial highlights
Financial highlights % 2016 Change Revenue (from fund management) R2 067m (5) Profit (from fund management) R1 058m (8) Profit for period R804m (7) Cost to income ratio 49.4% (4) 18
Slide 20: Total net fee (actual revenue)
Total net fee (actual revenue) as at 31 March 2016 0.90% 0.79% 0.79% 0.80% 0.70% 0.70% 0.69% 0.68% 0.69% 0.70% 0.64% 0.60% 0.58% 0.59% 0.59% 0.59% 0.60% 0.56% 0.52% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1 2015 H1 2015 2016 H1 results reflect
Slide 21: Earnings and dividend
Earnings and dividend % March March Change 2016 2015 Diluted HEPS (cents) (7) 229.7 246.7 Interim dividend per share (cents) (7) 229 246 Actual shares in issue – 31 March 349 799 102 349 799 102 20
Slide 22: Cost comparison
Cost comparison March March % 2016 2015 Change R’m R’m Fixed operational costs (24) 280 225 Variable costs 8 743 810 Operating expenses 1 1 023 1 035 21
Slide 23: Fixed expenses
Fixed expenses March March % 2016 2015 Change R’m R’m Fixed costs (24) 280 225 Major contributors: - Staff costs (19) 128 107 - Information technology (41) 41 29 - Professional fees 14 20 23 - Marketing (39) 45 33 Staff numbers 287 275 22
Slide 24: Closing remarks
Closing remarks CORONATION
Slide 25: Closing remarks
Closing remarks Financial markets globally continue to remain uncertain & volatile Funds well positioned for recent unexpected market moves The key driver of Coronation’s success is our ability to create long-term value on behalf of clients in our underlying funds. Long-term investment track records
Slide 26: 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 27: Thank you
Thank you CORONATION
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