Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — FY2010 Earnings Presentation
38 slides from Coronation Fund Managers's earnings presentation, Nov 9, 2010
Slide 1: 2010 Results
2010 Results Reviewed 09 November 2010
Slide 2: Agenda
Agenda Financial highlights Overview of company Financial results Business review Retail Institutional International Transformation Conclusion 2
Slide 3: Market movements
Market movements 30 September 2010 3 months 6 months 12 months Economic group % % % All Share 13.29 4.03 21.13 All Share 12.18 2.46 18.25 (Capital Return) All Share 0.99 1.53 2.44 (Dividend Return) Resource 20 7.12 -5.60 12.45 Small Cap 10.14 6.17 19.36 Industrials 15.88 7.74 14.82 Financials 15.15
Slide 4: Financial highlights
CORONATION & FUND MANAGERS Financial highlights
Slide 5: Financial highlights
Financial highlights AUM R198 bn +28% Headline earnings 138.9 cps +109% Headline earnings (diluted) 128.0 cps +112% Dividend Total 127.0 cps +154% Final 76.0 cps +105% 5
Slide 6: Financial highlights (Rm)
Financial highlights (Rm) Revenue (from fund management) 1,352 +61% Profit (from fund management) 651 +100% PAT 440 +109% Cashflow 758 +103% 6
Slide 7: Company overview
CORONATION & FUND MANAGERS Company overview 5
Slide 8: Company structure
Company structure at 1 October 2010 C o ronation Fund Managers Ltd 90% C o ronation Investment 10% 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 o ronation Investment Management Company Assurance C FM (Isle of Man) Ltd Ma nagemen
Slide 9: Assets under management (Rbn)
Assets under management (Rbn) 2003 – 30 September 2010 250,000 198 200,000 155 150,000 134 125 101 100,000 82 64 54 50,000 0 2003 2004 2005 2006 2007 2008 2009 2010 Sept Sept Sept Sept Sept Sept Sept Sept 9
Slide 10: Financial results
CORONATION & FUND MANAGERS Financial results 10
Slide 11: Earnings as at 30 September 2010
Earnings as at 30 September 2010 Sept Sept % Change 2010 2009 Attributable earnings (R'000) 111 437,108 207,379 Earnings per share (cents) 111 138.9 65.8 Headline earnings (R'000) 109 437,208 209,080 Headline earnings per share (cents) 109 138.9 66.4 Diluted headline earnings per share (cents) 112 1
Slide 12: Earnings as at 30 September 2010
Earnings as at 30 September 2010 Sept Sept % Change 2010 2009 Cost to income (14.7) 52.7 61.8 EBITDA (Rm's) 88.4 661,986 351,373 Market capitalisation (Rm's) 92.2 4,656,176 2,422,157 Share price @ 30 September (Rands) 92.1 14.79 7.70 Price earnings per share* (8.3) 10.6 11.6 12
Slide 13: Total net fee
Total net fee as at 30 September 2010 1.20% 0.87% 0.97% 1.00% 0.75% 0.68% 0.69% 0.70% 0.70% 0.80% 0.58% 0.59% 0.52% 0.56% 0.60% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 13
Slide 14: Cost Comparison
Cost Comparison Sept Sept % Change 2010 2009 R'000 R'000 Fixed costs (17.6) 242,560 206,244 Variable costs (67.0) 461,027 276,132 IFRS 2 34.4 14,059 21,442 TOTAL OPERATIONAL COSTS (42.4) 717,646 503,818 Interest expense 60.7 8,851 22,513 (38.0) 726,497 526,331 Interest cover 74.5 times 15.4 times 14
Slide 15: CFM expenses
CFM expenses September Change 2010 2009 % R'000 R'000 Fixed costs (17.6) 242,560 206,244 Major contributors: Staff costs (8.1) 122,528 113,384 Marketing (106.4) 39,476 19,125 Information technology (4.9) 20,913 19,934 Rental (20.2) 16,027 13,338 Staff numbers 198 188 Variable costs (67.0) 461,027 27
Slide 16: IFRS2 effect
IFRS2 effect Forecast 2011 2010 2009 R'000 R'000 R'000 Imvula transaction 4,121 11,881 11,931 CIT transactions - 2,290 9,382 Namibia - -112 129 Total 4,121 14,059 21,442 16
Slide 17: Earnings summary - 2nd vs 1st half
Earnings summary - 2nd vs 1st half Apr-Sept-10 Oct-Mar-10 % Change R'000 R'000 Revenue 707,064 670,209 5.5 Expenses 11.6 383,241 343,256 Operating expenses 8.6 298,356 274,635 Distribution payments 36.2 80,414 59,033 IFRS2* (53.4) 4,471 9,588 PBT (1.0) 323,823 326,953 Tax 9.5 109,977 100,423 PAT (5.
Slide 18: Business overview Institutional
Business overview Institutional 18
Slide 19: Performance
Performance Alexander Forbes Global Large Manager Watch™ 5 years ending 30 September 2010 19
Slide 20: Performance
Performance Alexander Forbes SA Large Manager Watch™ 5 years ending 30 September 2010 20
Slide 21: Performance: Absolute Return product
Performance Absolute Return product Periods ending 30 September 2010 Since 1 Year 3 Years 5 Years 10 Years inception* Absolute 18.0% 10.4% 15.8% 18.0% 18.7% CPI 3.4% 7.2% 6.7% 6.4% 6.5% CPI +7% 10.4% 14.2% 13.7% 13.4% 13.5% *Since inception – August 1999 21
Slide 22: Performance: Coronation Core Equity
Performance Coronation Core Equity periods ending 30 September 2010 1 Year 3 Years 5 Years Since inception* Fund 25.1% 9.5% 18.6% 23.9% Benchmark 21.8% 4.3% 15.2% 20.5% * Since inception – January 2004 ** SWIX * Since inception – January 2004 † SWIX 22
Slide 23: Business overview Retail
CORONATION & FUND MANAGERS Business overview Retail 23
Slide 24: Business Performance 2010
Business Performance 2010 League table: long-term funds Manager AUM Flows 1. R103bn R89bn R11bn [2nd] R18bn 2. R45bn R40bn R5bn [3rd] R3bn 3. Coronation () R41bn R24bn R12bn [1st] R2bn 4. R35bn R29bn R4bn [5th] R5bn 5. R32bn R30bn R1bn [22nd] R2bn Source: ASISA statistics/ Morningstar, Coronation cl
Slide 25: Domestic flagship funds
Domestic flagship funds Meeting our clients key investment needs... Investment Risk Profile Exposure to Objective Growth Assets Conservative Moderate Aggressive 2/10 3 Years 3/10→ 4/10 6/10 8/10 Average exposure to growth assets through the cycle (5 18.9% years) The exposure will fluctuate as valuat
Slide 26: Domestic flagship funds
Domestic flagship funds Consistent performance Fund 5 year ranking S.I. ranking LT Growth Top 20 1st Quartile 1st Quartile (equity only) LT Growth Balanced Plus 1st Quartile 1st Quartile (multi asset) Capital Plus 1st Quartile 1st Quartile Income & Growth Balanced Defensive N/A 1st Quartile Income o
Slide 27: International fund range (rand-denominated)
International fund range (rand-denominated) Investment Risk Profile Exposure to Objective Growth Assets Moderate Aggressive 6/10 7/10 7/10 8/10 9/10 Average exposure to growth assets through the cycle GEM Avg 85% Flexible* Long-term *Launched 28 Dec 07 Growth 4.4% World Equity (Equity Only) 100% [ZA
Slide 28: International fund range (dollar-denominated UCITS)
International fund range (dollar-denominated UCITS) Investment Risk Profile Exposure to Objective Growth Assets Moderate Aggressive 6/10 7/10 8/10 10/10 Global Average exposure to risky assets through the cycle Emerging 100% Long-term Markets Growth Global (Equity Only) Opportunities 100% Equity Lon
Slide 29: International
CORONATION & FUND MANAGERS International 29
Slide 30: Strong international track record
Strong international track record (dollar returns) Fund Annual Alpha Launch date Global Equity Alternative Strategy Fund of Funds 4.4% 1 August 1996 Global Equity Fund of Funds 2.1% 1 July 2000 Global Emerging Markets 6.11% 14 July 2008 Global Bond 1.1%* 1 November 2009 Africa Frontiers 32.1% 1 Octo
Slide 31: UK and Ireland
UK and Ireland AUM up from $1.33bn (Sept 09) to $1.97bn (Sept 10) Investment performance remains strong with all funds ahead of benchmarks Global Equity Alternative Strategy Fund of Funds: 9.02% annualised dollar return since inception versus 4.66% for MSCI World Index Global Equity Fund of Funds: 2
Slide 32: Africa
Africa Africa fund offering delivering excellent relative performance Africa Frontiers Fund: 32.14% p.a. dollar return since inception ahead of FTSE/JSE Africa Top 30 Index ‘Best Africa Manager of the Year’ – 2010 Africa investor Index Series Awards Namibian AUM up by 9% from NAM$8.1bn (Sept 09) to
Slide 33: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) Excellent relative performance since inception GEM Fund: 6.1% ahead of MSCI Emerging Markets Index Relative performance position vs. GEM peers – 2nd out of 35 since inception 33
Slide 34: Transformation
CORONATION & FUND MANAGERS Transformation 34
Slide 35: Transformation
Transformation Level IV contributor in terms of DTI codes Staff ownership scheme (Imvula) Outstanding debt reduced by 57% since inception Positive equity Enterprise development Providing business support to BEE stockbrokers Currently providing support to 6 companies 35
Slide 36: Conclusion
CORONATION & FUND MANAGERS Conclusion 36
Slide 37: Local market indicators
Local market indicators periods ending 30 September 2010 Q3 ’10 YTD 1 year 3 years 5 years 10 years All Share 13.3% 8.7% 21.1% 2.3% 14.9% 17.2% All Bond 8.0% 14.1% 15.3% 10.1% 8.8% 12.3% SA Listed Property 13.7% 25.7% 30.8% 10.9% 19.9% 26.1% AF Money Market 1.7% 5.3% 7.2% 9.8% 9.3% 9.8% MSCI (ZAR) 3
Slide 38: Thank you
CORONATION & FUND MANAGERS Thank you
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