Perpetual Limited · ASX:PPT
Perpetual — Macquarie Australia Conference 2015
20 slides from Perpetual's conference presentation, May 8, 2015
Slide 1: Macquarie Australia Conference
Perpetual Limited For personal use only Macquarie Australia Conference Geoff Lloyd CEO & Managing Director 6 – 8 May 2015 Sydney ABN 86 000 431 827
Slide 2: Australian funds management underpinned by mandatory superannuation system
THE AUSTRALIAN FUNDS MANAGEMENT INDUSTRY IS UNDERPINNED BY A MANDATORY SUPERANNUATION SYSTEM WHICH IS PROJECTED TO GROW TO A$8.4 TRILLION BY 2040* For personal use only Impact of superannuation guarantee to 12% on assets 4th largest pension market in the world by assets with over A$1,9b^ Pension fun
Slide 3: 1H15 Overview: Strategy delivering sustained growth
1H15 OVERVIEW Strategy delivering sustained growth For personal use only Strong results with positive flows, net new clients and increased returns to shareholders Transformation 2015 (T15) strategy will complete with continuing benefits to cost to income ratio Positive momentum in global equities an
Slide 4: 1H15 Strategy delivering strong returns
1H15 Strategy delivering strong returns For personal use only UPAT, $m NPAT, $m UPAT EPS, cps DPS, cps +30% +76% +17% +44% 62.1 58.6 134.4 115.0 47.7 56.4 48.3 114.7 122.8 95.0 80.0 33.3 1H14 2H14 1H15 1H14 2H14 1H15 1H14 2H14 1H15 1H14 2H14 1H15 4
Slide 5: 1H15 Results – Growth Highlights
1H15 RESULTS – GROWTH HIGHLIGHTS Major drivers were acquisition, growth in flows and new clients For personal use only All Ordinaries Index Perpetual Investments net inflows, $b 5800 5600 5400 1.6 5200 5000 4800 Average 1H15 / 2H14: +0.8% 0.6 0.5 4600 Average 1H15 / 1H14: +4.8% 4400 4200 1H14 2H14 1
Slide 6: Perpetual Investments: Strong investment performance
PERPETUAL INVESTMENTS Strong investment performance For personal use only QUARTILE RANKINGS^ FUND WEIGHTED % OF FUNDS OVER periods ending December 2014 1 – 10 YEARS 1Yr 3Yrs 5Yrs 7Yrs 10Yrs Perpetual W Australian 4 2 1 1 1 1 yr 63% 37% Perpetual W Concentrated Equity 2 1 1 1 1 Perpetual W Ethical SR
Slide 7: Perpetual Investments: Positive net inflows
PERPETUAL INVESTMENTS Positive net inflows For personal use only Investment Fund ratings Aligned Distributor Approved Models performance sales team connections Product Lists and multis On On On INCREASING target target target INFLOWS INVESTOR CONFIDENCE Total net flows across all strategies in 1H15
Slide 8: New Head of Equities appointed
NEW HEAD OF EQUITIES APPOINTED Orderly transition plan in place For personal use only Head of Equities Portfolio Managers Analysts Paul Skamvougeras Nathan Parkin Andrew Corbett Head of Equities Deputy Head of Equities Global Resources Analyst Portfolio Manager – Concentrated Equity, Pure Equity Por
Slide 9: Global Team Profile
GLOBAL TEAM PROFILE GARRY LAURENCE For personal use only GLOBAL EQUITIES STRATEGY - PORTFOLIO MANAGER • Senior member of Perpetual’s Equity team and key driver of collaborative portfolio management approach at Perpetual • Over 12 years experience in financial services industry, and seven years exper
Slide 10: The Evolution of Perpetual's Global Equity Strategy
THE EVOLUTION OF PERPETUAL’S GLOBAL EQUITY STRATEGY THE LOGICAL STEP FOR OUR TEAM For personal use only • Perpetual’s Australian equities team has been investing globally for over a decade • Perpetual has become a global research house as Australian companies expand internationally • Our cautious ap
Slide 11: Global Share Fund – Class A
GLOBAL SHARE FUND – CLASS A NET PERFORMANCE FOR PERIODS ENDING 31 MARCH 2015 For personal use only FUND FUND Class INDEX % EXCESS % Class A % W %^ 1 MONTH 1.3 - 0.9 +0.4 3 MONTHS 9.7 - 9.6 +0.1 1 YEAR - 28.7 28.6 +0.1 2 YEARS P.A. - 37.5 31.3 +6.2 3 YEARS P.A. - 29.6 24.2 +5.5 4 YEARS P.A. 21.2 17.7
Slide 12: Fees: Global Share Fund
FEES* GLOBAL SHARE FUND For personal use only CHARACTERISTIC MANAGEMENT FEE 1.10% pa. PERFORMANCE FEE 15% HURDLE MSCI World Net Total Return Index ($A) FEE ACCRUAL Daily and if applicable, accrued in the unit price FEE PAID AFTER BASE FEE Yes PAYMENT FREQUENCY Semi-annual HIGH WATER MARK Yes There a
Slide 13: Perpetual Private: Improving business performance
PERPETUAL PRIVATE Improving business performance For personal use only VISION: AUSTRALIA’S LEADING INDEPENDENT HNW BUSINESS Scale Distribution benefits excellence Right Heritage Strategic Tech uplift service • TrustCo integration tracking • Continuing to focus on HNW business segment focus model to
Slide 14: Perpetual Private: Strategy delivering growth
PERPETUAL PRIVATE Strategy delivering growth For personal use only Revenue, $m Delivering on strategy – PBT +257% on 1H14 and +16% on 2H14 81 82 1H Revenue growth continues with accelerated take-up of Implemented 57 58 57 59 63 2H Portfolios coupled with growth in Fordham and Estate Administration T
Slide 15: Perpetual Corporate Trust
PERPETUAL CORPORATE TRUST Diversified business with a leading market position For personal use only FUA, $b Integration benefits of TrustCo acquisition 545.1 484.0 evidenced by strong performance in Fund 465.8 185.6 177.1 Services – revenue +8% on 2H14 171.6 294.2 306.9 359.5 Trust Services supporte
Slide 16: T15 Strategy – The Trust Company Scorecard
T15 STRATEGY – THE TRUST COMPANY SCORECARD Program to complete early and on track for target synergies For personal use only FY14 PROTECT 1H15 1H15 ALIGN 2015 ONE COMPANY 2H15 Single Executive Team Reduce central cost On Track: Reduce property footprint New organisation structure in (HR, Finan
Slide 17: Perpetual – Beyond T15
PERPETUAL – BEYOND T15 For personal use only VISION: AUSTRALIA’S LARGEST AND MOST TRUSTED INDEPENDENT WEALTH MANAGER T15 STRATEGY LEAD & GROW T15 FOUNDATIONS DELIVERED Strong Simple The right team business capabilities Lean & effective Focused on business model client needs Explore Lead Extend into
Slide 18: Financial Performance
FINANCIAL PERFORMANCE 1H15 dividend up 44% on 1H14 and fully franked For personal use only EPS, cps ROE,1 % Dividend, cps 111.7% 91.5% 122.8 134.4 126.8 22.8 22.3 21.1 21.1 91.6% 114.7 18.9 18.1 105.1 80.1 115.0 95.0 80.0 1H14 2H14 1H15 1H14 2H14 1H15 1H14 2H14 1H15 Payout ratio UPAT EPS NPAT EPS UP
Slide 19: Contacts
CONTACTS Chief Executive Officer & Managing Director For personal use only Geoff Lloyd [email protected] T: +612 9229 9078 Chief Financial Officer Gillian Larkins [email protected] T: +612 9229 3547 General Manager Investor Relations & Corporate Finance Neil Wesley neil.wes
Slide 20: Disclaimer
DISCLAIMER Important information For personal use only The information in this presentation is general background information about the Perpetual Group and its activities current as at 26 February 2015. It is in summary form and is not necessarily complete. It should be read together with the compan