BT Investment Management Limited Annual General Meeting Tuesday 7 - - PowerPoint PPT Presentation

BT Investment Management Limited

Tuesday 7 December 2010 Annual General Meeting

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Board of Directors

Brian Scullin Chairman James Evans Carolyn Hewson Brad Cooper Emilio Gonzalez CEO

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Senior Management Team

Brian Wright

Head of M&A and Strategy

Martin Franc

Head of Sales & Marketing

Phil Stockwell

Chief Operating Officer

Cameron Williamson

Chief Financial Officer

Geraldine Bouquet

Head of Human Resources

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Agenda

1. Introduction 2. Chairman’s Address 3. Chief Executive Officer’s Address 4. Consideration of Financial Report 5. Questions 6. Re-election and election of Directors 7. Approval of the Remuneration Report 8. Close Meeting

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Admission Cards

Shareholder Voting Card

Entitled to vote and address the meeting

Non-Voting Shareholder Card

Not entitled to vote, but may address the meeting

Visitor Card

Not entitled to vote or address the meeting

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Proxies

• To be valid, Proxies must have been lodged with Link Market Services at

least 48 hours prior to the meeting

• Valid Proxies received will be displayed prior to the resolution being

considered by the meeting

• The Chairman will vote undirected proxies in favour of each resolution

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Chairman’s Address

Brian Scullin

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Strong increase in full year profit

$ pcp % Cash NPAT $30.9m +15% Statutory NPAT $21.8m +72% Average FUM $35.3bn +9% Cash earnings per share 19.3 cps +15%

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Quarterly retail net flow trends over past 5 years

6.8 5.3 6.0 14.0 8.7 6.5 8.7 26.0 10.3 2.1 1.5 1.7 0.8 1.5

• 0.4
• 0.8
• 2.6

2.7 0.2

• 3.7

S-05 D-05 M-06 J-06 S-06 D-06 M-07 J-07 S-07 D-07 M-08 J-08 S-08 D-08 M-09 J-09 S-09 D-09 M-10 J-10

Net flow trends – All Retail Funds Under Administration

$ billions – June 2006 to June 2010

Annual net flows = $32.1 billion Annual net flows = $49.8 billion Annual net flows = $15.6 billion Annual net flows = -$4.1 billion Annual net flows = $1.7 billion

Source: Plan for Life - All Retail Funds (Admin)

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Dividends and capital management

cps pcp % Interim dividend 5.5cps +83% Final dividend 10.0cps +104%

• Final fully franked dividend of

10.0 cps

• Target payout for FY08 and

FY09 made up through special dividend of 12.5 cps paid in August 2010

• Target payout ratio of 80-90% of

cash NPAT confirmed

• Balance sheet debt free

Special dividend 12.5cps n/a

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Board changes

New Directors: Brad Cooper James Evans New CEO Emilio Gonzalez

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CEO’s Address

Emilio Gonzalez

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Growth from improved markets & performance fees

($m) FY09 FY10 Movement Average FUM ($bn) 32.3 35.3 3.0 Margin 0.34% 0.36% 0.02% Base Management Fees ($mln) 105.8 118.4 12.6 Performance Fees ($mln) 4.0 8.2 4.2 Other Revenue ($mln) 2.6 2.6 0.0 Total Revenue 112.4 129.2 16.8 Employee Expenses ($mln) (40.4) (51.2) (10.8) Operating Expenses ($mln) (33.9) (33.7) 0.2 Total Expenses ($mln) (74.3) (84.9) (10.6) Tax ($mln) (11.2) (13.4) (2.2) Cash NPAT ($mln) 26.9 30.9 4.0 Cost to income ratio (CNPAT basis) 66% 66%

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Long term performance remains strong

Flagship Product 1 Year (pa) 3 years (pa) 5 years (pa) S&P Rating Core Australian Share Fund

• 1.20%

+2.21% +1.80%

• Focus Australian Share Fund
• 0.22%

+1.29% +2.60%

• Imputation Fund
• 2.45%

+0.73% +2.26%

• Smaller Companies Fund

+8.41% +6.51% +5.17%

• Property Fund : A-REIT

+0.28% +4.75% +3.57%

• Property Fund : Global-REIT

+1.25% +1.89% +2.31%

• Core Global Share Fund

+2.21% +1.43% +0.29%

• Fixed Interest Fund

+0.64% +0.14% +0.10% N/A

• Strong FY10 fund performance from niche funds including:

– BT Wholesale Microcap Opportunities Fund (alpha of +31.92%) – BT Wholesale MidCap Fund (alpha of +5.93%) – BT Global Macro Fund (alpha of +3.97%)

Performance Relative to Benchmark

Note – performance is pre-fee, pre-tax for the period ending 30 September 2010

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Strategic Focus

• Grow our exposure to the retail channel through financial planners and

intermediaries

• Leverage our competitive advantage from being part of The Westpac

Group

• Build out our multi-boutique model to attract and expand into other

investment capabilities

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Strategic Focus: Grow exposure to retail through financial planners and intermediaries

• Platform set for growth:

– Strength of BT brand – Existing presence on administration platforms – Strong product ratings

• Strategically invest in brand, marketing and sales
• Ensure product suite continually meets client needs

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Strategic Focus: The Westpac Group

• BT Financial Group is a significant player in the Australian wealth

management market

• Master Relationship Agreement signed for further 5 years
• Specialised niche product (eg Microcap fund) distributed through BTFG
• BTIM required to deliver on investment performance, client service and

competitive product offerings

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Strategic Focus: Build out our multi-boutique model

• BTIM multi-boutique value proposition
• Income and Macro Boutiques to progress to business share arrangements
• Retain watching brief on other opportunities to broaden capabilities

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Outlook

• Wealth management fundamentals remain strong
• Industry growing at 9-12% pa
• Compulsory superannuation underpinning growth
• Not without its challenges:

– Shift in investor sentiment to defensive asset classes – Index based funds

• Regulatory environment reshaping industry

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Item 1 – Financial statements and reports

Consider the Financial Report, Director’s Report and Auditor’s Report

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Questions

If you have a question, please:

• Proceed to one of the microphones
• Show your voting card to the attendant
• Tell the attendant your name

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Item 2(a) – Re-election of a Director

To re-elect Brian Scullin as a Director

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Item 2(a) – Proxy Votes

To re-elect Brian Scullin as a Director

The following proxies have been received for this resolution: For: 106,582,141 99.2% Open: 721,478 0.7% Against: 125,207 0.1% Total: 107,428,826 100.0% Abstain: 50,763

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Item 2(b) – Election of a Director

To elect Brad Cooper as a Director

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Item 2(b) – Proxy Votes

To elect Brad Cooper as a Director

The following proxies have been received for this resolution: For: 106,526,526 99.1% Open: 722,832 0.7% Against: 185,026 0.2% Total: 107,434,384 100.0% Abstain: 45,205

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Item 2(c) – Election of a Director

To elect James Evans as a Director

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Item 2(c) – Proxy Votes

To elect James Evans as a Director

The following proxies have been received for this resolution: For: 106,529,518 99.2% Open: 722,832 0.6% Against: 160,495 0.2% Total: 107,412,845 100.0% Abstain: 66,744

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Item 3 – Remuneration Report

Adoption of the 2010 Remuneration Report

Non-binding resolution

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Item 3 – Proxy Votes

Adoption of the 2010 Remuneration Report

The following proxies have been received for this resolution: For: 105,589,402 98.4% Open: 691,521 0.6% Against: 1,049,071 1.0% Total: 107,329,994 100.0% Abstain: 149,595

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Meeting Closed The formal part of the meeting is now closed. Please remain for presentations by Crispin Murray, Head of Equities and Vimal Gor, Head of Income & Fixed Interest

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Disclaimer

Important Notice This presentation has been prepared by BT Investment Management Limited (BTIM). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation. This presentation contains forward looking statements. These forward-looking statements have been made based upon BTIM’s expectations and beliefs concerning future developments and their potential effect upon BTIM and are subject to risks and uncertainty which are, in many instances, beyond BTIM’s control. No assurance is given that future developments will be in accordance with BTIM’s expectations. Actual results could differ materially from those expected by BTIM. The information contained in this presentation is not intended to be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. In this presentation, unless otherwise stated or the context otherwise requires, references to 'dollar amounts', '$', 'AUD' or 'A$' are to Australian dollars. Important Notice This presentation has been prepared by BT Investment Management Limited (BTIM). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation. This presentation contains forward looking statements. These forward-looking statements have been made based upon BTIM’s expectations and beliefs concerning future developments and their potential effect upon BTIM and are subject to risks and uncertainty which are, in many instances, beyond BTIM’s control. No assurance is given that future developments will be in accordance with BTIM’s expectations. Actual results could differ materially from those expected by BTIM. The information contained in this presentation is not intended to be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. In this presentation, unless otherwise stated or the context otherwise requires, references to 'dollar amounts', '$', 'AUD' or 'A$' are to Australian dollars.