VIDEIRA v 14-05... · 2015-01-30 · b ˇ˘˝ ) ’˙ ˙ˆ )˝˘4:ddˆ˚ˇ˝)4 e ˝˘;˘˝v(’˚ ˘4˚˛(
Anchor Group Ltd Financial Results · Financial Results For the six months ended 30 June 2015....
Transcript of Anchor Group Ltd Financial Results · Financial Results For the six months ended 30 June 2015....
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Anchor Group LtdFinancial Results
For the six months ended 30 June 2015
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
What is Anchor Group?
Listed asset management group intent on becoming a major player in SA and global landscape
Primarily Anchor Capital
• SA’s“fastestgrowing”assetmanager,with>R15bnofassets
Majority stake in Robert Cowen Investments
Minority stakes in other asset management ventures
• Differentfocusorgeography;theyleverageoffACstructure
› AnchorFinancialServices(effective50%)–distributionforAnchorGroup
› CartesianCapital(19.9%)–black-ownedinstitutionalassetmanager
› AnchorSecurities(25%)–privateclientstockbrokingbusiness
› CorianCapital(30%)–experiencedfundoffundsmanager
Offices in Sandton, Durban, Pretoria, Cape Town, London
• >70degreedstaffacrossgroup(8CA(SA)’s,14CFA’s/CFAdelegates)
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
The Listing
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Highlights first half of 2015
• TopperformingSAequitymanagerover1and2years
• AdjustedHEPSup52%to20.8centspershare(13.7centsto30June2014).
• AdjustedHeadlineEarningsup244%toR29.2million(R8.5millionto30June2014).
• Assetsundermanagementandadvicegrewby74%toR15billion(R8.6billionat31Dec2014).
• FirstmaterialacquisitionofRobertCowenInvestments,withremainingcashbalanceofR218million.
• Companyremainsundercautionary.
• Numberofshareholdersincreasedfrom350toover3500.
• Declarationofinterimdividendof11centspershare.
“Asset management base of business will be expanded and be complete by end 2015 and focus thereafter will be investment performance and leveraging off strong distribution capability to grow AUM, both locally and globally.”
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
The share - facts and figures• HighofR14.00reachedinJuly2015
• ListedatR2on16Sept2014(R60mraised)
• Issued40.3msharesatR6.20(R250mraised)on6Dec2014
• Sharesat30June2015=142.1m
• 42millionshareshavetradedsincelisting(5mpermonth)
• Navpershare=273c(>R218mcash)
0 200 400 600 800
1000 1200 1400 1600
Lis+ng
Oct-‐14
Nov-‐14
Dec-‐14
Jan-‐15
Feb-‐15
Mar-‐15
Apr-‐15
May-‐15
Jun-‐15
Jul-‐15
Aug-‐15
Anchor Capital share price (c)
Listing Oct. ‘14
Nov ‘14 Dec ‘14 Jan ‘15 Feb ‘15 Mar ‘15 Apr ‘15 May ‘15 Jun ‘15 Jul ‘15 Aug ‘15
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Income Statement
6 months to 30 June 2015
6 months to 30 June 2014
12 months to 31 Dec 2014
% ch R’m R’m R’m
Revenue 184% 80,1 28,2 82,4
Costs 147% 44,3 18,0 53,8
Op profit 251% 35,8 10,2 28,6
Comprehensive income 317% 29,6 7,1 24,3
Headline earnings 311% 29,2 7,1 21,5
Adjusted headline earnings 244% 29,2 8,5 22,8
Op margin 23% 44,7% 36,2% 34,7%
Average AUM (R’bn) 138% 8,8 3,7 5,1
Yield on avg assets 1,5% 1,3% 1,6%
Earnings per share (cents) 81% 20,8 11,5 32,0
Headline earnings per share (cents) 81% 20,8 11,5 28,3
Adjusted headline earnings per share (cents) 52% 20,8 13,7 30,1
Diluted adjusted headline earnings per share (cents) 51% 20,7 13,7 29,2
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Balance Sheet6 months to 30
June 20156 months to 30
June 201412 months to
31 Dec 2014
% ch R'm R'm R'm
Non current assets 2172% 147,7 6,5 44,1
- Goodwill and intangibles 3187% 120,8 3,7 31,0
- Investment in associates 2730% 21,2 0,7 9,9
- Other 175% 5,7 2,1 3,2
Current assets 1027% 264,0 23,4 333,6
- Other financial assets 446% 20,9 3,8 8,6
- Trade and other receivables 214% 24,7 7,9 21,9
- Cash and cash equivalents 1762% 218,4 11,7 303,1
Assets 1271% 411,7 29,9 377,7
Shareholders equity 1972% 388,0 18,7 353,1
Liabilities 112% 23,8 11,2 24,6
- Deferred tax NM 1,8 0,0 0,8
- Other financial liabilities -13% 3,6 4,1 4,0
- Current tax payable 229% 8,0 2,4 1,7
- Trade and other payables 123% 10,3 4,6 18,1
Equity and liabilities 1276% 411,7 29,9 377,7
Net asset value per share 812% 2,73 0,30 2,52
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Earnings by six month periods
2 4,2 21 28
54
80
-‐2
1 3 9 14
29
-‐20
0
20
40
60
80
100
1H2012 2H2012 2H2013 1H2014 2H2014 1H2015
Income statement progression (R'm)
Revenue Adjusted headline earnings
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
• Added>R1bninJuly2015
• >R16bnatendJuly2015
Our growth• Grownassetsby74%in2015(R6.2bn)toR15bnat30June2015
• Grownfromnumber150to+/-number25assetmanagerinSAin3years
• Consistentlyadding+/-R300mpm/R3.6bnperyearforlast8quarters
• Pipelineindicatesthatthiscanbesustained
0
2000
4000
6000
8000
10000
12000
14000
16000
2Q2012
3Q2012
4Q2012
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
2Q2014
Jul-‐15
Anchor Group AUM (R'm)
12 months
12 months
6 months
2013 2014Jun 2015
AUM Opening AUM 0,9 2,8 7,3
New RCI assets 3,8
Increase in AUM 1,9 4,5 2,4
Closing AUM 2,8 7,3 13,5
Advice 1,3 1,5
Total assets 2,8 8,6 15,0
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
How assets grew in 1H2015• Boostedbystronginvestmentperformance(whilemarketonlygrewby<3%)
• Arecordnumberofnewclients
• Privateclient/wealthbusinesscontinuedtogrowatsustainedpace
• CIS(unittrust)businessstartedtogainstrongtractiononthebackofbeingthetopperformingSAequityassetmanager(nowoverR2.5bn)
• Wonourfirstinstitutionalmandatesandastrongmarketingthrusttothissegmentofthemarket
0
100
200
300
400
500
600
700
800
Apr/13
May/13
Jun/13
Jul/1
3
Aug/13
Sep/13
Oct/13
Nov/13
Dec/13
Jan/14
Feb/14
Mar/14
Apr/14
May/14
Jun/14
Jul/1
4
Aug/14
Sep/14
Oct/14
Nov/14
Dec/14
Jan/15
Feb/15
Mar/15
Apr/15
May/15
Jun/15
Jul/1
5
Anchor BCI equity fund AUM (R'm)
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Equity Performance to end June 2015
No.1General
Equity Fund*
in South Africa
As measured by Funds Data
Source:FundsDataOnline12 months to June 2015
* Past performance is no indication of future results and an investment in equities involves capital risk. Investors should consider the suitability of an investment relative to their risk profile and financial situation.Anchor Capital is an authorised Financial Services Provider. FSB # 39834
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
• Tobuildaworld-classinvestmentproductrangeacrossassetclassesandgeographies,
• Tobuilddistributioncapacityandcapabilitytogenerategrowthinassetsundermanagement.
Strategy – investment and distribution
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
To build a world-class investment product range across asset classes and geographies
• Investmentteamcomplete–20investmentprofessionals
• Organicallyandbyacquisition
• CompleteCIS(unittrust)productrange
• FixedIncometeam(starts1September2015)
• Increasehedgefundcriticalmass(currently<5%ofassets)totakeadvantageofnewregulationsandnextphaseofindustrygrowth
• Globalise–twonewjurisdictionsplannedbyyearend
“These initiatives should be complete by year-end and the focus thereafter will be to leverage off this product offering by increasing assets under management. It is unlikely that further material asset management acquisitions will follow next year, as the Anchor offering will be comprehensive and complete.”
Strategy 1
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
CIS (unit trust) product range
Strategy 1
Current funds Funds to be launched in 2015
Anchor BCI Equity Anchor BCI Property
Anchor BCI SA Equity Anchor Fixed Income funds x2
Anchor BCI Managed Anchor BCI Global Equity feeder fund
Anchor BCI Worldwide Flexible Anchor BCI Global Capital Plus feeder fund
Anchor BCI Flexible Income Anchor Long Short Hedge Fund
Various restricted funds
Over R2.5 billion of assets
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
• Marketingtotraditionalchannelswhooutsourcetheassetmanagementfunctiontothirdpartyassetmanagers.Thisincludesfinancialadvisors,institutionalinvestors,multi-managersandfund-of-funds.Wecontinuetoaddhighqualitypersonneltothispursuit.
• Marketingdirectlytoclients,primarilyintheprivateclient/wealthspace.Wecontinuetoemployindividualswhocanattractassetsandshouldhaveover25individualswhosignonclientsbyyearend.Wewillalsopursuepartnershipsandacquisitionsofbusinesseswhichhaveadistributioncapabilityandexistingclientbase.Thisstrategywillprevailwellbeyondthisfinancialyear,althoughitisourintentiontoexpandmateriallythisyear.
New Durban group office has 13 staff and achieving early successes – objective of R4 billion AUM in medium term.
To build distribution capacity and capability to generate growth in AUM
“Perform and wait”
“Go and gather”
Strategy 2
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
• We take investment very seriously
› Weinvestigateeveryopportunitythoroughlyandhaveaverybiginvestmentteamforoursize
• Culture
› Weownthebusinessandhavehadimmensedrivetosecureanddeliverforclients
• Trust
› Wehaveearnedthetrustofclientsandagreatdealofourbusinesshascomefromreferrals
• Making clients money
› Wehaveperformedwellandaddedtomarketperformancethroughinnovativemoney-makingideas
• Extremely active marketing
› Bigfocusoncoldcalls,TV,radio,internetandbiggestsuccesshasbeendailynewsletter,with6,000recipients.Weputoutregularhighqualityresearch
• Tick all the boxes
› Wegotthestoryright:Rightshareholders,investmentteam,product,pedigreeetc.
• Willingness of market to support new player
• Market fatigue with vanilla offerings of big existing players
• Nimble – Appropriate range of product
• We have grown the product range in response to where we see market demand
Why have we achieved success so far?
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
The basic modelAssets (R'm) 4,000 6,000 8,000 10,000 15,000
Yield 1.20% 1.15% 1.10% 1.05% 1.00%TO 48 69 88 105 150Margin 40.0% 42.0% 45.0% 47.5% 50.0%Op profit 19.2 28.98 39.6 49.875 75PAT 15.7 23.8 32.5 40.9 61.5
Turnover 100Fixed costs 30Margin 70Incentives 21Profit margin 49
• Businesshasbuilt-in“inflation”of15%perannum,onaverage
• Allprofitsincash,virtuallynoworkingcapital
• Simplebusiness
› 20invoicespermonth,paidwithin15days
› Expenses80%rentandstaff
• Around70%Randhedge
• Verylittlefixedinvestmentrequired
• Fixedcostsnowinplace
› Somestep-upwithgrowth,butinprincipleonlysalesandPMcosts(directrevenuedrivers)willbeadded
• Businessmodelhas50%operatingmargin,alreadyat>40%
• Largelyannuityearnings,+/-15%ofassetshaveperformancefees
• Sticky,diversifiedbasewhichwillberesilienttomarketfluctuations
Attractions of business and model
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
MikeTeke – Chairman,PresidentofChamberofMines
PeterArmitage – CIOInvestecWealth
DavidRosevear – DirectorBidvest
MatthewN-Young – Sales,Investec
SeanAshton – SeniorPortfolioManagerInvestec
GlenBaker – SeniorPortfolioManagerRMB
PeterLittle – SeniorPortfolioManagerCreditSuisse
NickDennis – SeniorPortfolioManagerPictet
DavidGibb – HeadofEquities,Stanlib
DaleFranklin – MDSasfinAssetManagement
FerdiSchenck – Co-founderSygnia,AllanGrayops
NeilBrown – CEOCitadelWealth
DarrylHannington – CFA,Investec
LeeCairns – WealthManager,Citadel
Key individuals - previous experience
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
In the pipeline …
Robo-advisor
• AnchorCapitalappointedasassetmanagertoSA’sfirstrobo-advisor,Bizank,tobelaunchedin2015
Anchor Financial Services
• Developingnewexcitingpartnershipstoaccessdistribution
Globalisation
• Twonewjurisdictionsbyyearend
New CIS schemes (unit trusts)
• Sixnewfundsbyyearend
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Bizank
• AnchorCapitalappointedassetmanagertoSA’sfirstrobo-advisor
• Onlineassetmanagement
• Easilyaccessible,bespokeinvestmentadvice
• Disruptortotraditionalmoneymanagement
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Earnings outlook
• Dividedby+/-142mshares
• Excludesnewideasandacquisitions
• Majorriskismarketperformance
>R14bn at July 2015
Function of AUM and yield
•R220m capital
•5% pa = R11m
• 10% pa = R22m
• 15% pa = R33m
•Depends on timing of acquisitions
R'bn 12 months 12 months 6 months 6 months2013 2014 1H2015 2H2015
Starting AUM 0.9 2.9 5.7 13.5Ending AUM 2.9 8.6 13.5 ?Avg AUM 1.9 5.7 8.8 >13.5
"Core business" 5 21 21 ?Earnings on capital 0 1 8 ?Total earnings 5 22 29 ?
R'bn 12 months 12 months 6 months 6 months2013 2014 1H2015 2H2015
Starting AUM 0.9 2.9 5.7 13.5Ending AUM 2.9 8.6 13.5 ?Avg AUM 1.9 5.7 8.8 >13.5
"Core business" 5 21 21 ?Earnings on capital 0 1 8 ?Total earnings 5 22 29 ?
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Earnings influenced by …
• GrowthinAUMandmarginachieved
• TheinclusionofMethwold(RobertCowenInvestments)forafullsixmonths,comparedtoonemonthinthefirsthalfoftheyear
• Theresultofthecurrentnegotiationswhichhasresultedintheprevailingcautionaryannouncement
• TheimpactonassetsundermanagementfromasignificantlylargerdistributionforceandtheprogressofAnchorFinancialServices
• MarketperformanceandAnchorCapital’srelativeperformance
• Exchangerate(weestimateRandhedgecomponentisapproximately70%)
• Increaseinsharesinissue.Theaveragesharesinissueforthesecondhalfof2014was85.4millionandthestartingsharesinissueat1July2015are142.2million
Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834
Thank you