Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — H1 2009 Earnings Presentation
35 slides from Coronation Fund Managers's earnings presentation, May 12, 2009
Slide 1: March 2009 Interim Results Reviewed
March 2009 Interim Results Reviewed 12 May 2009
Slide 2: Agenda
Agenda Financial highlights Overview of company Financial results Business review Retail Institutional International Transformation Other
Slide 3: Market movements
Market movements as at 31 March 2009 3 months 6 months 12 months Economic group % % % All Share -4.2% -13.0% -28.5% All Share -5.32% -14.57% -31.17% (Capital Return) All Share 1.13% 1.59% 2.63% (Dividend Return) Resource 20 1.7% -11.5% -38.1% Small Cap -6.4% -15.4% -28.3% Industrials -12.8% -24.5% -
Slide 4: Financial highlights
CORONATION & FUND MANAGERS Financial highlights
Slide 5: Financial highlights
Financial highlights AUM R120bn -12% Headline earnings 22.3 cps -16% Headline earnings (diluted) 20.2 cps -16% Dividend 13.0 cps -19%
Slide 6: Financial highlights (Rm)
Financial highlights (Rm) Revenue (from fund management) 363 -14% Profit (from fund management) 122 -22% PAT 71 -19% Cashflow 144 -15%
Slide 7: Share buy-back
Share buy-back Details Total consideration R6m (incl. costs) Period 6 Feb – 20 Mar Number purchased 1.343m Ave Price R4.48 (incl. costs) Number of shares in issue post buy-back Currently 314,566m
Slide 8: Company overview
CORONATION & FUND MANAGERS Company overview 5
Slide 9: Company structure
Company structure at 31 March 2009 Coronation Fund Managers Ltd 90% Coronation Investment 10% The Imvula Trust Management (Pty) Pty) Ltd 100% 100% 100% 100% 100% Coronation Coronation Life Coronation Asset Coronation Investment Management Company Assurance Company CFM (Isle of Man) Ltd Management (P
Slide 10: Reconciliation of AUM (Rbn)
Reconciliation of AUM (Rbn) YTD Opening market value September 2008 124.80 Net flows 0.92 Charges -0.29 Currency effect 2.25 Capital depreciation -7.21 Closing market value 120.46
Slide 11: Assets under management (Rbn)
Assets under management (Rbn) 2003 – 31 March 2009 160,000 140,000 133,730 135,690 124,990 120,460 120,000 101,440 100,000 81,930 80,000 63,759 60,000 53,697 40,000 20,000 0 2003 2004 2005 2006 2007 2008 2008 2009 Sept Sept Sept Sept Sept Mar Sept Mar
Slide 12: Financial results
CORONATION & FUND MANAGERS Financial results
Slide 13: Earnings
Earnings as at 31 March 2009 % Change 2009 2008 Attributable earnings R'000 (19) 71,200 88,181 Basic earnings cps (18) 22.6 27.4 Headline earnings R'000 (18) 70,361 85,619 Headline earnings cps (16) 22.3 26.6 Diluted Headline earnings cps (16) 20.2 24.0 Weighted average shares in issue (2) 315,636,4
Slide 14: Earnings
Earnings as at 31 March 2009 % Change 2009 2008 Cost to income (4) 66.8 64.0 EBITDA (16) 138,935 165,023 Market capitalisation (24) 1,541,373 2,021,059 Share price (22) 4.90 6.25 Price earnings per share (6) 11.0 11.7 PE earnings – share price/annualised HEPS
Slide 15: Total net fee
Total net fee 1.20% 0.97% 1.00% 0.87% 0.80% 0.75% 0.68% 0.69% 0.70% 0.58% 0.59% 0.60% 0.52% 0.53% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 H1/2009
Slide 16: Funds subject to performance fees
Funds subject to performance fees as a % of AUM as at 31 March 2009 2009 2008 Institutional 56% 59% Retail 43% 45% International 23% 16% TOTAL 51% 53% Funds 2009 Benchmark CAPI, SWIX, FINDI, ALBI, MSCI, Relative benchmark performance fees 37% performance over cash & median or 75th percentile Absolut
Slide 17: Cost Comparison
Cost Comparison % 2009 2008 Change R'000 R'000 Total operating expenses 11 245,554 276,921 Interest Expense 14,697 7,863 Share-based payments 10,604 13,395 Impairment of capital assets - 204 Renovation/Office move 1,765 3,545 Adjusted costs 13 218,489 251,914 Variable costs 24 111,080 146,919 Fixed
Slide 18: IFRS2 effect
IFRS2 effect Mar 2009 Sep 2008 Sep 2007 R'000 R'000 R'000 December 2003 options - 149 637 Imvula transaction 5,966 12,236 8,969 CIT transaction 1 (February 2005) 1,907 10,896 15,405 CIT transaction 2 (April 2005) 2,066 7,754 9,556 CIT transaction 3 (September 2005) 545 2,297 5,645 Namibia staff shar
Slide 19: Business overview institutional
Business overview institutional
Slide 20: Performance
Performance 5 years ending 31 March 2009 Allan Gray 19.81% Investec Asset Management 17.81% Coronation 17.37% Prudential Global Balanced 16.71% OMIGSA Macro Strategy 16.16% Median 15.77% Cadiz African Harvest 15.04% RMBAM 14.89% Oasis 14.75% SIM Global Unique 14.05% Metropolitan 13.46% Stanlib 13.20
Slide 21: Performance
Performance 5 years ending 31 March 2009 Allan Gray 21.91% Coronation 19.18% Investec Asset Management 18.48% Prudential Domestic Balanced 18.34% Median 17.52% Oasis 17.28% OMIGSA Macro Strategy 17.08% RMBAM 16.52% Metropolitan 15.70% Cadiz African Harvest 15.62% Stanlib 14.97% SIM Domestic Unique 1
Slide 22: Business overview retail
CORONATION & FUND MANAGERS Business overview retail
Slide 23: CIS industry
CIS industry Market share: Long-term single managers only Ranking excl. cash and dividend income funds % Movement Market share Mar 2009 Sep 2008 1 Allan Gray 2.62% 25.7% 70,849 67,936 2 Investec (0.31)% 12.4% 34,263 37,494 3 Old Mutual (0.72)% 8.6% 23,661 27,395 4 Nedgroup 0.29% 8.6% 23,661 24,414 5
Slide 24: Return
Domestic core range 5 year Risk/Return Annualised 31 March 2009 22.15% Coronation Top 20 Fund 16.51% 18.66% Coronation Equity Fund 16.67% 17.32% Coronation Market Plus Fund 12.52% Return 17.86% Coronation Balanced Plus Fund 11.54% 14.43% Coronation Capital Plus Fund 7.44% Return = annualised returns
Slide 25: Return
Foreign (ZAR) core range 5 year Risk/Return Annualised 31 March 2009 New Fund Coronation GEM Flexible Fund Return 7.12% Coronation World Equity (ZAR) FoF 13.89% 8.63% Coronation Optimum Growth Fund 11.23% New Fund Coronation Latitude (ZAR) Fund Return = annualised returns Risk = annualised standard
Slide 26: International
CORONATION & FUND MANAGERS International
Slide 27: UK and Ireland
UK and Ireland AUM down from $1.26bn (Sept 08) to $915m (Mar 09). Stripping Relative Value and related funds out drops the figure to $781m AUM decline attributable to market movements (3/4) and redemptions (1/4) 7 staff members were retrenched in the period due to restructuring Annualised profit imp
Slide 28: Africa
Africa Namibian AUM down by 11% from NAM$7.7bn (Sept 08) to NAM$6.9bn (Mar 09) AUM decline attributable to market movements Good relative performance position Botswana AUM at Pula 1.7bn Excellent relative performance – 1/6 for Q1 2009 Africa Fund offering delivering excellent relative performance Re
Slide 29: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) Excellent relative performance since inception 6% ahead of MSCI GEM Index Great relative performance position vs. GEM peers – 1/25 Fully staffed, well motivated unit Recent global events will delay fund raising efforts
Slide 30: Transformation
CORONATION & FUND MANAGERS Transformation
Slide 31: Transformation
Transformation Rated as Level IV contributor ito DTI codes Staff Ownership scheme (Imvula) Outstanding debt reduced by 27% since inception Positive equity even at these depressed company valuations Enterprise development Providing business support to BEE stockbrokers Evaluation of the initial 3 year
Slide 32: Other
CORONATION & FUND MANAGERS Other
Slide 33: Update on the other initiatives
Update on the other initiatives PPS Investments Gaining ongoing traction among PPS members Private Equity Initiative is progressing well Seeing good quality deal flow now that dust is settling Fund raising has been difficult (given the environment) Very close to achieving a first closing
Slide 34: Results call playback details
Results call playback details A recording of the Coronation Fund Managers Interim Results conference call is available until Friday, 29 May 2009. To listen to this call, dial: Toll: + 27 11 305 2030 Playback code: 13205#
Slide 35: Thank you
CORONATION & FUND MANAGERS Thank you
Coronation Fund Managers — H1 2009 Earnings Presentation on 6ix