Slide 1: Treasury Group Limited Half Year Results – 31 December 2009
Wednesday 24 February 2010 TREASURY GROUP LIMITED HALF YEAR RESULTS – 31 DECEMBER 2009 Overview Treasury Group (ASX:TRG) today announced a profit of $6.42 million for the half year ended 31 December 2009, up by 101% from $3.20 million for the previous corresponding period. Our growth in assets remai
Slide 2: Overview since the beginning of the financial year
Overview since the beginning of the financial year The Company has undertaken an exciting period of growth since the beginning of the financial year. We remain focused on three key principles: 1. working with outstanding investment talent 2. expanding our distribution capabilities both locally, offs
Slide 3: Funds under management (FUM)
Funds under management (FUM) Total funds under management at 31 December 2009 amounted to $14.46 billion, an increase of $4.117 billion on the previous corresponding year or 39.79%. Net new funds flow for the half year was $869.2m – a continuation of strong net funds flow seen through the recent mar
Slide 4: Results details
Results details Detailed below is TRG’s consolidated income statement: Income Statement 6 months to 31 December $000 2009 2008 % Change Revenue 2,476 2,953 (16%) Equity share of associates profit 7,404 5,431 36% Gains/(Iosses) on investments 640 (1 ,238) 152% Employee expenses (2,836) (2,890) (2%) F
Slide 5: Normalised earnings and investment gains/losses
• Marked to market and realised gains I (losses) Net gains attributed to marked to market movements on investments that are classed as available for sale investments. These investments are in funds that are managed by members of the group. Total marked to market gains (after tax) and realised gains
Slide 6: Review of Business
Review of Business Treasury Group Investment Services (TIS) - (100% owned at 31 December 2009) Treasury Group through TIS provides its managers with a full suite of business support services tailored to the specialist requirements of investment managers. TIS provides oversight of all investment admi
Slide 7: Manager Review
Manager Review Investors Mutual Limited (IML) - (47.50% owned by TRG at 31 December 2009) Whilst IML suffered net outflows over the 6 months due to weakness in the retail market, the ratings for IML were recently reviewed and maintained. The merger of the investment team (with Cannae) is on track an
Slide 8: Manager Review (RARE, Celeste)
RARE Infrastructure (RARE) - (40% owned by TRG at 31 December 2009) RARE has had a successful six months culminating in winning mandates from large international clients as well as a predominant Australian institutional investor. RARE has also further established itself in the retail market. RARE of
Slide 9: Shareholder sessions and ownership interests in managers
Investor Update Treasury Group is committed to improving communication with its shareholders and to this end will be holding shareholder information sessions in Melbourne (30 March 2010) and Sydney (31 March 2010). Further details will be sent to shareholders and lodged with ASX in early March. Note
Slide 10: Treasury Group Half Year Results – To December 2009
Treasury Group Half Year Results –To December 2009
Slide 11: A Summary of the profit and loss
A Summary of the profit and loss 6 months to 31 December $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%) Basic earnings per share 27.83 13.84
Slide 12: Comment on results
Comment on results • Net new funds flow strong over the half • Institutional flows strong primarily at RARE, Orion, Trilogy • Rising institutional flows resulted in increased institutional share • Retail flows weaker with market conditions and some modest outflow at IML • Costs controlled over the h
Slide 13: Strong net new funds flow
Strong net new funds flow • Net new funds flow strong over the half • TRG continues to diversify assets across managers • Net fund inflows of $869m over the half (excluding new managers) • Total assets at $14.46bn at 30th December 2009 • Development of both local and international investors, retail
Slide 14: Treasury group evolution continues
Treasury group evolution continues US Pension Funds ERISA Dublin 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 4
Slide 15: Large team of investment professionals
Large team of investment professionals Number of investment professionals within the group 70 65 • Treasury managers added staff 60 55 during the market downturn 50 50 40 • New acquisitions brings team of 40 experienced managers 30 30 23 • Large team represents depth of 20 18 investment in future gr
Slide 16: Major strategic initiatives over the half
Major strategic initiatives over the half • Our strategic vision remains unchanged • Working with outstanding investment talent • Expanding our distribution capabilities – local/offshore and retail/institutional • Offering the highest quality, cost competitive support and services • Initiatives over
Slide 17: Three new outstanding managers
Three new outstanding managers • AR Capital • Outstanding Australian equity absolute return fund • Key principals held senior roles at Credit Suisse and Goldman Sachs • TRG believes that this asset class will attract both institutional and high net worth • Foundation for TRG to move into absolute re
Slide 18: Three new outstanding managers cont.
Three new outstanding managers cont. • Celeste Asset Management • Australian equity specialist – smaller company focus • Strong investment record – leading manager in this space • Changed name from Souls Funds management during the half • Client and researcher response to independence under Treasury
Slide 19: IML / Injection of senior talent
IML / Injection of senior talent • Brings together two leading investment professionals • Hugh Giddy and Anton Tagliaferro – value investment style • Deepens the team experience • Adds additional support in team management and product growth • Allows for medium term succession planning • Development
Slide 20: Focus on retail distribution
Focus on retail distribution • Hired new head of retail distribution Hired experienced • Peter Walsh from Putnam and dedicated resources • Additional resources internally • Lucinda Hill – focused on Australian and international market Coordinating Building Treasury • Working closely with our boutiqu
Slide 21: Australian distribution
Australian distribution Institutional Retail Platforms Rating Yes Yes Yes Yes Yes Yes Yes Yes Yes 2010 - - Yes Yes Yes Yes HNW - - Yes 11
Slide 22: Developing distribution
Developing distribution European Major corporate, fund corporate of funds, private and bank assets government Corporate and retail Funds of funds and corporate pension Highest quality, corporate, industry funds Strong retail presence Government 12
Slide 23: Summary
Summary • Results improve as market recovers and with strong net funds flow • Exciting period for Treasury Group with additional of three new managers • Distribution resource increased – particular focus on supporting growth in the retail market • Company has well diversified range of managers – wor
Slide 24: Appendix: Normalised NPAT
Appendix: Normalised NPAT • Investment gains and losses over the half • Gain on acquisition of Celeste Funds Management. Small restructuring costs • Marked to market – gains on investments held as seeding in boutique funds • Cannae convertible note – with agreement to enter sub-advisory agreement, T