Prudential Plc · LSE:PRU
Prudential — Investor Day (November 2018)
25 slides from Prudential's investor day presentation, Nov 15, 2018
Slide 1: M&G Prudential
M&G Prudential John Foley Clare Bousfield Chief Executive Chief Financial Officer M&G Prudential M&G Prudential 278
Slide 2: John Foley – Chief Executive
M&GPrudential John Foley – Chief Executive Singapore, 15 November 2018 279
Slide 3: Building a simple and efficient savings and investments business
Building a simple and efficient savings and investments business a business focused on excellence in active investment and customer solutions £ HQ FOUNDED GEOGRAPHY AUM HEADQUARTERS CUSTOMERS Asset 2017 retail 28 334 mgt. 1931 £ bn wholesale 1848 (9M 2018) LONDON institutional 280
Slide 4: Track record of success built by two complementary businesses
Track record of success built by two complementary businesses Growth of M&G Prudential AUM One of the largest multi-asset retail funds in Europe1 2.4x managed by M&G and PPMG £334bn YE 99 – 9M 18 #1 active fixed income manager in UK2 Growth April 1999: successful build-out from annuities business Pr
Slide 5: Track record of seeding asset management capabilities using internal and external funds
Track record of seeding asset management capabilities using internal and external funds £130bn+ With-Profits Fund 2018 Cash Flow Driven Investing Capability seeded through internal funds One of the largest multi-asset funds in Europe 2017 Consumer Loans Capability seeded through external funds c25%
Slide 6: Competitive advantages unrivalled in our peer group
Competitive advantages unrivalled in our peer group Differentiated Strong distribution Customer investment with international solutions focus 1 capability Strength in less 2 2 With-profits, multi-asset, 3 growth Retail, wholesale and commoditisable segments institutional institutional £56bn of priva
Slide 7: Growing international footprint with two outstanding brands
Growing international footprint with two outstanding brands1 28 UK £209.8 BN BN1 EUROPE BN £55.0BN 1 ASIA-PAC BN £5.7BN 1 AMERICAS BN £0.7BN 1 MIDDLE EAST & AFRICA4 BN £6.6BN 1 Distribution centres Outstanding Brands institutional asset #1 management brand2 1. AUM as at 9M 2018). Relates to M&G mana
Slide 8: Diversified earnings profile: a resilient platform for independence and growth
Diversified earnings profile: a resilient platform for independence and growth Diversified Earnings Profile Capital profile H1 18 IFRS Operating Profit, £m1 IFRS Operating Profit by Source, £m3 Illustrative Expectation of M&G Prudential holding £778m around £3.5 billion of subordinated debt 450 Expe
Slide 9: Combination of global trends and competitive advantages create an immense opportunity
Combination of global trends and competitive advantages create an immense opportunity for M&G Prudential Global Opportunities Retirement Retirement assets outside US and Asia (US$)1 62% fall in UK annuities Opportunity $11.5trn market since DB and DC pension assets pensions freedoms2 Household cash
Slide 10: An ambition building on success
An ambition building on success a competitively advantaged Ambition 2021-22 business Scalable, fast and flexible competing in the right segments 2019-20 a strong track record Platform for 2017 growth international growth Launch of merger and transformation diversified and resilient earning
Slide 11: Investor Conference – Clare Bousfield CFO
Investor Conference Clare Bousfield CFO Singapore, 15 November 2018 288
Slide 12: Getting to know our business
Getting to know our business Three areas of our company we want you to know more about Our achievements to date… … Growth opportunities One of the largest retail multi-asset funds in Europe1 Extend PruFund distribution to 1. With-Profits With-Profits total Funds under Management reached new client s
Slide 13: Our With-Profits fund, launched in 1848, now totals £134bn FuM
Our With-Profits fund, launched in 1848, now totals £134bn FuM 90%+ of assets are managed in-house benefitting from our investment innovation Total With-Profits FuM growth (£bn) Strategic Asset Allocation evolution over time1 Introduction of Introduction of Private High Yield Bridge Loan 131 £134bn
Slide 14: PruFund's success is due to its ability to address customer needs
PruFund’s success is due to its ability to address customer needs Clear offering, capital growth and lower volatility are at the core of our proposition What customers want… What PruFund gives them… Investment returns above principal (in %)1 A single, simple Expected 100% … a product that is easy Gr
Slide 15: With-profits fund through the lenses of customers and shareholders
With-profits fund through the lenses of customers and shareholders Mechanics of PruFund proposition Customers With-Profits fund Shareholders Invest initial saving and / or Receives the actual Receive shareholder retirement pot into the fund investment returns and transfer from With-Profits accrues t
Slide 16: With-profits expected to generate sustained and growing cash stream
With-profits expected to generate sustained and growing cash stream In-force book delivers stable returns while today’s new business embeds growth Cash generation and IFRS profit coincide New business strain PruFund Illustrative shareholder transfer3 before tax (£m) 500 PruFund is a 90:10 product wh
Slide 17: Getting to know our business
Getting to know our business Three areas of our company we want you to know more about Our achievements to date… … Growth opportunities One of the largest retail multi-asset funds in Europe1 Extend PruFund distribution to 1. With-Profits With-Profits total Funds under Management reached new client s
Slide 18: Multi-wrapper: we launched our digital platform in September 2016
We launched our digital platform in September 2016 Current focus is on expanding range of wrappers and investment available Our core platform today… … What are working on for our customers Multi-wrapper £10.3bn 66,000 Wrappers available Tomorrow Asset Under SIPP & Drawdown Administration1 Customers1
Slide 19: Fastest growing platform in the UK over H1 2018
Fastest growing platform in the UK over H1 2018 Strength of proposition brought £10bn+ AuA in less than 2 years AuA on platform since launch (£bn) UK Advised Platforms growth – H1 20181 (£bn) New sales only, no existing volumes have been transferred to platform AuA growth over last 6 months 3.4 1.3
Slide 20: We support customers along the entire value chain
We support customers along the entire value chain End-to-end revenue participation from integrated business model Comprehensive value chain Multi-channel participation Advice & c.7,500 IFA & Wealth managers engaged with Appeals to a broad range of intermediaries Distribution every year PFP advisers
Slide 21: Getting to know our business
Getting to know our business Three areas of our company we want you to know more about Our achievements to date… … Growth opportunities One of the largest retail multi-asset funds in Europe1 Extend PruFund distribution to 1. With-Profits With-Profits total Funds under Management reached new client s
Slide 22: We offer our clients a broad range of Private Assets capabilities
We offer our clients a broad range of Private Assets capabilities Private Assets AuM have now reached £56bn, up by more than 25% since 2015 Private Assets AuM growth (£bn) Composition of Private Assets AuM AuM growth over last 30 months +28% Real Estate £12bn 60.0 55.0 56.3 Other Private Debt 20.0 5
Slide 23: Example of capability building: Leveraged loans
Example of capability building: Leveraged loans One of the longest-standing and largest active loan managers in Europe Leveraged Loans AuM (£bn) 9 • One of the first non-bank 8 investors in the asset 7 class, initially seeded by 6 WP fund money First pension fund 5 client investment • Development of
Slide 24: Private Assets are high value and long tenure products
Private Assets are high value and long tenure products Attractive economic model of Private Assets Institutional fees1 Private Assets tenure Fees by asset class (bps / AuM) Closed-end funds life at Infrastructure Tenure inception (% split by AuM) Private debt 24% Less than 10 years 35% 39% 11 years2
Slide 25: Getting to know our business
Getting to know our business Three areas of our company we want you to know more about Our achievements to date… … Growth opportunities One of the largest retail multi-asset funds in Europe1 Extend PruFund distribution to 1. With-Profits With-Profits total Funds under Management reached new client s