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Transcript of AXA INVESTMENT MANAGERS · PDF fileInvestor Day November 20, 2014 . Andrea ROSSI – CEO...

  • Investor Day November 20, 2014

    Andrea ROSSI CEO AXA Investment Managers Member of the AXA Group Executive Committee

    AXA INVESTMENT MANAGERS

    Entering a new phase of growth

  • Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Please refer to the section Cautionary statements in page 2 of AXAs Document de Rfrence for the year ended December 31, 2013, for a description of certain important factors, risks and uncertainties that may affect AXAs business. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F3 |

    TODAYS KEY MESSAGES

    LEADING GLOBAL ASSET MANAGER WELL POSITIONED FOR THE NEXT PHASE OF GROWTH

    AXA IM VISION SUPPORTED BY CLEAR STRATEGIC PRIORITIES

    CONCLUDING REMARKS

  • Leading global asset manager well positioned for the next phase of growth

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F5 |

    Structurally attractive business

    Attractive RoE driven by low capital requirements Strong Free Cash Flows generation Exposure to financial markets

    16% RoE1 1bn Free Cash Flows2 generated over 2010-2013

    Strategic to insurance activities

    Benefiting from parent synergies

    Investment performance excellence Wide range of asset classes / strategies Natural offset to interest rate exposure on insurance

    business

    Stable insurance asset base Innovation support and seed money capacity Access to insurance distribution and developments

    74% of AXA assets managed by AXA IM3

    3.7bn4 AuM raised in the last 2 years through AXA seed money

    Attractive 3rd party franchise Provide investment performance and leading innovation Benefit from scale and operational leverage Leverage ALM know-how for liability driven clients

    8.0bn of 3rd party Net New Money5 in 9M14

    AXA IM A SUSTAINABLE GROWTH ENGINE WELL POSITIONED FOR 3rd PARTY SUCCESS

    All notes are on page F19 of this document

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F6 |

    Assets: Euro 607 billion

    9M14 Revenues: Euro 825 million1

    Fixed income 77%

    Real estate 9%

    Judgmental Framlington 3%

    Quantitative Rosenberg 2%

    Solutions (MACS)2 6%

    Structured Finance 3%

    Fixed income 36%

    Judgmental Framlington 21% Quantitative

    Rosenberg 5%

    Solutions (MACS)2 11%

    Structured Finance 2%

    Real Estate 9%

    Asian JVs 15%

    Third-party assets: Euro 203 billion

    AXA assets: Euro 403 billion

    Figures as at 09/30/2014

    One of the worlds largest active asset managers

    A LEADING GLOBAL ASSET MANAGER WITH AN ACTIVE AND DIVERSIFIED PORTFOLIO OF EXPERTISE

    Listed Fixed Income Listed Equities Multi-Assets

    Alternatives Joint Ventures

    44%

    66%

    Strong contribution from 3rd party business

    Ca. 2,500 employees worldwide located in 28 cities and in 21 countries

    A well balanced multi-asset player providing active and smart beta strategies only

    A strong track record in developing specialized franchises Third-party

    clients AXA Insurance companies

    56%

    34%

    1/3 of assets managed for third-party clients accounting for more than 50% of AXA IM revenues

    Balanced portfolio of active expertise

    All notes are on page F19 of this document

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F7 |

    Annualized rolling outperformance2 Number of Funds ranked in first 2 quartiles1

    Alternative strategies (i.e. AXA Real Estate and AXA Structured Finance) performing above 1 year and 3 years benchmark and targets (e.g. 93% of AXA Structured Finance funds above IRR targets)

    Judgmental Framlington

    Quantitative Rosenberg

    Solutions (MACS)3

    Alternatives

    WITH STRONG TRACK RECORD OF INVESTMENT PERFORMANCE ACROSS THE BOARD

    Listed Equity

    Fixed Income 5 years 0.5%

    3 years 0.5%

    5 years 2.4%

    3 years 1.4%

    5 years 0.6%

    3 years 0.7%

    5 years 0.5%

    3 years 0.2%

    5 years 82%

    3 years 67%

    5 years 94%

    3 years 73%

    5 years 82%

    3 years 78%

    5 years 75%

    3 years 60%

    Figures as at 09/30/2014

    All notes are on page F19 of this document

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F8 |

    Resilient and growing profits Growing assets under management AUM1 in Euro billion

    607547532

    493500484469535

    474426

    341

    ca. +120bn

    9M14 FY13 FY12 FY11 FY10 FY09 FY08 FY07 FY06 FY05 FY04

    101

    172164163

    134

    236241

    191

    149

    91

    1H14 FY13 FY12 FY11 FY10

    1632

    FY09 FY08 FY07 FY06 FY05 FY04

    ENABLING RESILIENT FINANCIAL PERFORMANCE WHILE POSITIONING FOR THE NEXT PHASE OF GROWTH

    Underlying Earnings1 in Euro million

    All notes are on page F19 of this document

  • AXA IM vision supported by clear strategic priorities

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F10 |

    AXA IM VISION IS SUPPORTED BY CLEAR STRATEGIC PRIORITIES

    GROWTH

    Capture multiple sources of growth through targeted developments

    CLIENT CENTRIC OFFERING

    Enhance client centric business model across the full value chain

    OPERATIONAL EXCELLENCE

    Leverage the size and scope of our operations to drive operational excellence

    CULTURE

    Build One AXA IM

    BE A WORLD-CLASS LEADER CONSISTENTLY SATISFYING CLIENT NEEDS

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F11 |

    GROWTH Capture multiple sources of growth through targeted developments

    Reinforce historical strong position through segmented approach

    Build on existing presence / capabilities

    Develop further distribution coverage

    Europe: Maintain market share with Institutional clients, selectively target Retail and Defined-Contribution and better leverage AXA distribution capacity

    US & Canada: Develop Institutional and Retail segments with an initial focus on AXA IM successful US expertise

    Latin America: Target sources of long term growth and leverage AXA Group presence

    Nordics: Main focus on pension funds and insurance companies

    Asia (including Japan): Benefit from growth of wealth accumulation, leverage the development of AXA Group and accelerate in Japan

    Sovereign Wealth Funds: Reinforce globally, particularly in Middle East

    Serve and support AXA around the globe

    Deepen presence where AXA IM is already strong through segmented approaches

    Target mature markets in which AXA IM is not playing at its fair market share

    Capture opportunities in selected high growth markets

    Development priorities

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F12 |

    Constant focus to meet and anticipate client demands Leading in industry innovation with circa 10 new strategies

    launched per year Tailoring existing offering to specific client needs:

    Specific share classes e.g. Solvency 2 friendly Mainstreaming ESG1 criteria for AXA assets

    Align investment capabilities to the way clients manage their investments

    Full scope of credit offering in one single expertise with the

    integration of AXA Structured Finance capabilities into AXA Fixed Income

    Creation of a Solutions hub

    Ensure comprehensive approach Creation of dedicated transversal business lines for

    Retail/Wholesale and Institutional clients Reinforcing client servicing through a more developed local

    coverage

    CLIENT CENTRIC OFFERING Enhance client centric business model across the full value chain

    INN

    OVA

    TIO

    N

    MAN

    UFA

    CTU

    RIN

    G CL

    IEN

    T CO

    VERA

    GE

    Net New Money2 In Euro billion

    1211

    0

    -4

    -21

    FY12 FY11 FY10 9M14 FY13

    Continuously delivering on client satisfaction

    AXA IM ranking (2012-2014) Greenwich Quality Index

    1st quartile in Investments

    1st two quartiles for Service and in overall ranking

    All notes are on page F19 of this document

  • AXA Investor Day AXA Investment Managers | November 20, 2014 F13 |

    PIONEERS ON SMARTBETATM PRODUCTS Innovation at the service of client needs

    Capitalizing on market inefficiencies avoiding inherent drawbacks of indexing and optimized implementation

    Innovative solution:

    Well diversified and low cost way to improve financial markets return being

    more efficient than passive

    Client need SmartBeta

    Leveraging AXA Rosenberg capabilities SmartBeta Equity

    Leveraging AXA Fixed Income capabilities SmartBeta Credit

    20 years of successful experience in running low-risk, low-turnover portfolios

    Access to high quality data and broad credit coverage combined with strong risk management culture and efficient execution

    Delivering investment performance: all strategies getting strong support from consultants

    Leader in systematic investing since 1985 Data platform with over 40 years of