Coronation Fund Managers Limited · JSE:CML
Coronation Fund Managers — H1 2012 Earnings Presentation
35 slides from Coronation Fund Managers's earnings presentation, May 15, 2012
Slide 1: Reviewed Interim Results
March 2012 Reviewed Interim Results 15 May 2012 1
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 31 March 2012 3 months 6 months 12 months Economic group % % % All Share 6.0 14.9 7.5 All Share 4.9 13.1 4.2 (Capital Return) All Share 1.1 1.8 3.3 (Dividend Return) Basic Materials -2.0 3.8 -12.0 Small Caps 10.4 17.9 17.8 Industrials 18.2 20.6 24.9 Financials 12.8 22.6 20.2 Source:
Slide 4: Financial highlights
CORONATION & FUND MANAGERS Financial highlights
Slide 5: Financial highlights
Financial highlights AUM R296 bn +28% Net inflows of R19.1 bn in H1 Headline earnings 94 cps +5% Headline earnings (diluted) 86.7 cps +6% Dividend Interim 95.0 cps +19%* * Period on period change applicable to Dividends Tax exempt investors 5
Slide 6: Financial highlights (Rm)
Financial highlights (Rm) Revenue (from fund management) 912 +11% Profit (from fund management) 450 +2% PAT 297 -1% Cashflow 374 +64% 6
Slide 7: Company overview
CORONATION & FUND MANAGERS Company overview
Slide 8: Company structure
Company structure at 31 March 2012 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 nagement
Slide 9: Assets under management (Rbn)
Assets under management (Rbn) 2003 – 31 March 2012 350 296 300 247 250 231 203 200 155 150 134 125 101 100 82 64 54 50 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 2012 Sept Sept Sept Sept Sept Sept Sept Sept March Sept March Domestic: Equity 60.9%; Fixed Interest and Cash 23.8% Foreign: Equi
Slide 10: Financial results
CORONATION & FUND MANAGERS Financial results 10
Slide 11: Earnings
Earnings Change March March % 2012 2011 1 Attributable earnings (R'000) (1) 295,876 298,842 EPS (cents) (1) 94.0 94.9 Headline earnings (R'000) 5 295,876 280,711 2 HEPS (cents) 5 94.0 89.2 Diluted HEPS (cents) 6 86.7 81.7 Weighted average shares in issue - 31 March - 314,819,192 314,819,192 Actual s
Slide 12: Earnings
Earnings Change March March % 2012 2011 Cost to income (6.5) 51.3 48.0 EBITDA (R'000) 1.9 454,269 445,843 Market capitalisation (R'000) 60.1 8,972,347 5,603,782 Share price @ 31 March (Rands) 60.1 28.50 17.80 Price earnings per share* 51.9 15.2 10.0 *PE earnings – share price/annualised historic HEP
Slide 13: Total net fee (annualised revenue)
Total net fee (annualised revenue) as at 31 March 2012 1.20% 0.97% 1.00% 0.87% 0.75% 0.69% 0.70% 0.70% 0.69% 0.69% 0.80% 0.68% 0.58% 0.59% 0.56% 0.58% 0.60% 0.52% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011/H1* 2011 2012/H1* *H1 figures – annualised revenue •Fees ca
Slide 14: Cost comparison
Cost comparison Change 2012 2011 % R'000 R'000 Fixed operational costs (5.1) 142,422 135,558 Variable costs (23.7) 326,851 264,141 IFRS 2 30.7 1,427 2,061 TOTAL OPERATIONAL COSTS (17.2) 470,700 401,760 Other costs (Interest expense*) 52.9 1,487 3,160 TOTAL COSTS (16.6) 472,188 404,920 * Interest Imv
Slide 15: CFM expenses
CFM expenses March March Change 2012 2011 % R'000 R'000 Fixed costs (5.1) 142,422 135,558 Major contributors: Staff costs (16.5) 73,413 62,994 Travel costs (28.3) 4,196 3,270 Marketing (5.8) 22,994 21,732 Information technology (96.1) 13,624 6,947 Staff numbers 212 198 Variable costs (23.7) 326,851
Slide 16: Business overview Institutional
Business overview Institutional 16
Slide 17: Performance
Performance Alexander Forbes Global Large Manager Watch™ 5 years ending 31 March 2012 Investec Asset Management 10.73% Coronation 10.12% Foord Asset Management 9.80% Allan Gray 9.72% RE:CM 9.02% Prudential Global Balanced 8.89% Median 7.79% OMIGSA Macro Strategy 7.17% SIM Global Unique 6.80% Momentu
Slide 18: Performance
Performance Alexander Forbes SA Large Manager Watch™ 5 years ending 31 March 2012 Investec Asset Management 11.55% Foord Segregated Domestic 11.09% Coronation 10.95% Prudential Domestic Balanced 10.66% Allan Gray 10.48% Median 9.75% Oasis 9.68% RE:CM Balanced Domestic Composite 9.12% Momentum AM Dom
Slide 19: Performance: Coronation Global Absolute Fund
Performance Coronation Global Absolute Fund Periods ending 31 March 2012 3 Years 5 Years 10 Years Since 1 Year (p.a.) (p.a.) (p.a.) Inception* Global Absolute Fund 11.3% 17.3% 10.4% 17.2% 17.8% CPI 6.0% 6.1% 7.0% 6.1% 6.5% CPI +6% 12.0% 12.1% 13.0% 12.1% 12.5% *Since inception – August 1999 Source:
Slide 20: Performance: Coronation Core Equity Fund
Performance Coronation Core Equity Fund periods ending 31 March 2012 3 years 5 years Since 1 year (p.a.) (p.a.) Inception* Core Equity Fund 11.4% 25.1% 11.6% 22.5% Benchmark** 11.6% 22.6% 8.0% 19.5% Outperformance -0.2% 2.5% 3.6% 3.0% * Since inception – January 2004 ** SWIX *Since inception – March
Slide 21: Business overview Retail
CORONATION & FUND MANAGERS Business overview Retail 21
Slide 22: Business Performance 2012 FYTD
Business Performance 2012 FYTD League table: long-term funds Manager AUM (Rbn) FLOWS (Rbn) March 2012 Sep 2011 Sep 2010 FYTD2012* FY2011 FY2010 1. 124 113 107 4 -3 11 2. Coronation 78 62 40 10 20 12 3. 73 59 50 10 7 5 4. 52 40 35 9 4 1 5. 49 42 37 3 4 4 Source: ASISA statistics/ Morningstar, Coronat
Slide 23: Focused flagship fund range
Focused flagship fund range Meeting our clients’ key investment needs Risk Profile Investment Exposure to Objective Conservative Moderate Aggressive Growth Assets 3 Years → 2/10 3/10 4/10 6/10 8/10 Average exposure to growth assets through the cycle 11.4% (5 years) The exposure will fluctuate as val
Slide 24: Domestic Flagship Funds
Domestic Flagship Funds Consistent top quartile returns 3-year 5-year 10-year S.I. Fund ranking ranking ranking ranking LT Growth 1st 1st 1st 1st Top 20 Quartile Quartile Quartile Quartile (equity only) LT Growth 1st 1st 1st 1st Balanced Plus Quartile Quartile Quartile Quartile (multi asset) 1st 1st
Slide 25: International funds aimed at retail investors
International funds aimed at retail investors 3-year 5-year 10-year S.I. Fund ranking ranking ranking ranking 1st 1st GEM Flexible - - Quartile Quartile LT Growth (equity only) World 3rd 1st 2nd 1st Equity Quartile Quartile Quartile Quartile LT Growth Global 1st - - - (multi asset) Managed Quartile
Slide 26: International
CORONATION & FUND MANAGERS International 26
Slide 27: Strong international track record
Strong international track record (US dollar returns) International USD Funds Annual Alpha* Launch date Fees Global Equity Alternative Strategy Fund of Funds 3.94% 1 Aug 96 Net Global Equity Fund of Funds 1.62% 1 Jul 00 Net Global Emerging Markets 7.13% 14 Jul 08 Gross Global Bond 2.50% 1 Oct 09 Gro
Slide 28: UK and Ireland
UK and Ireland AUM up from $2.73bn (Sept 11) to $3.87bn (Mar 12) Investment performance remains strong with all funds ahead of benchmarks Global Equity Alternative Strategy Fund of Funds: 8.51% annualised dollar return since launch to end March 2012 versus 5.86% p.a. for MSCI World Index Global Equi
Slide 29: Africa
Africa Africa fund offering delivering excellent relative performance Africa Frontiers Fund: 12.78% p.a. dollar return since launch in 2008 to end March 2012 versus -9.53% p.a. for the FTSE JSE Africa Ex-SA 30 ‘Best Africa Manager of the Year’ – 2010 Africa investor Index Series Awards Namibian AUM
Slide 30: Global Emerging Markets (GEM)
Global Emerging Markets (GEM) Excellent relative performance since inception Global Emerging Markets Fund: 7.1% p.a. (gross of fees) ahead of MSCI Emerging Markets Index as at end March 2012 Won Raging Bull award for Best Foreign Equity Fund over 3 years Relative performance position versus GEM peer
Slide 31: Transformation
CORONATION & FUND MANAGERS Transformation 31
Slide 32: Transformation
Transformation Level III contributor in terms of DTI codes Staff ownership scheme (Imvula) Debt fully settled 10% shareholding in CIM likely to be swapped for shareholding at the CFM level All impacts fully accounted for in diluted earnings calculations Enterprise development Providing business supp
Slide 33: CORONATION &
CORONATION & FUND MANA GERS QRA 33
Slide 34: 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 statemen
Slide 35: Thank you
CORONATION FUND MA GERS Thank you
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