Themes 2 Strong performance Growth in funds under management - - PowerPoint PPT Presentation

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Themes 2 Strong performance Growth in funds under management - - PowerPoint PPT Presentation

Nov 17, 2023 216 likes •543 views

Themes 2 Strong performance Growth in funds under management Leveraging national office network Recurring income 57% (2009 54%) Results 52 weeks to September 2010 3 Sept 2010 Sept 2009 % change 000 000

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Themes

  • Strong performance
  • Growth in funds under management
  • Leveraging national office network
  • Recurring income 57% (2009 54%)
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7.1p 7.1p Dividend 43% 21,939 31,371 Profit before tax 16% 10.6p 12.3p Diluted earnings per share pre-redundancy cost, contract renewal payment and amortisation of client relationship 32% 7.2p 9.5p Diluted earnings per share 25% 32,143 40,164 Profit before tax pre redundancy cost, contract renewal payment and amortisation of client relationship 18% 212,312 250,889 Total income

  • 36%

25,071 15,999 Other operating income 25% 187,241 234,890 Revenue

£’000 £’000

% change Sept 2009 Sept 2010

Results – 52 weeks to September 2010

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11.6% 12.6% 12.2% Total fixed overhead costs as a % of income 19.3% 21.3% 19.0% Total fixed business support cost as a % of income

2008 2009 2010

Cost KPIs

Overhead and business support fixed costs as a % of total income 2.5 2.1 2.4 Corporate advisory & broking 4.5 3.9 4.5 Investment management

2008 2009 2010

Business Facing Income to Salary Ratio

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Front Office:

Staff Turnover

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  • (2,191)

Contract renewal payments (3,638) (253) Redundancy cost 43.0% 21,939 31,371 Profit before tax (6,566) (6,349) Amortisation of client relationships 25.0% 32,143 40,164 Profit before tax

  • 76.5%

1,467 345 Net finance income and other gains and losses 29.8% 30,676 39,819 Operating Profit* 24.2% (27,211) (33,789) Profit before profit share 27.2% 57,887 73,608 Profit before profit share* 16.8% (78,873) (92,094) Other operating costs 12.8% (75,552) (85,187) Salaries 18.2% 212,312 250,889 Total Income £’000 £’000 % Change Sept 2009 Sept 2010

* Excluding redundancy costs, contract renewal payments and amortisation of client relationships

More Detailed Results

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39.6 Capital Requirement 61.8 Firm’s cash 24.4 Surplus 64.0 Capital Resources

£’m

September 2010

Capital Adequacy

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18.6% 5.7% £11.8bn £ 8.7bn £14.0bn £ 9.2bn Discretionary funds under management Advisory funds under management £20.5bn 2,640 5,082 Sept 2009 % change Sept 2010 Indices 13.2% £23.2bn Total managed funds 7.7% 10.2% 2,844 5,598 FTSE APCIMS Private Investor Series Balanced Portfolio FTSE 100 Funds

Funds Under Management

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20.5 11.8 8.7 Value of funds at 27 September 2009 £ billion £ billion £ billion 14.0 1.6 (0.3) 0.1 0.8 18.6% Discretionary funds Total Managed funds Advisory funds 13.2% 5.7% % increase in funds year on year 23.2 9.2 Value of funds at 26 September 2010 2.3 (0.7)

  • 1.1

0.7 (0.4) (0.1) 0.3 Inflows Outflows Transfers Market movement

Funds Under Management

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0.73% 0.96% 0.93% 0.92% Average return on advisory funds 1.18% 1.27% 1.23% 1.21% Average return on discretionary funds 2008

(excluding

  • ne off

interest income)

2009 2009 2010

Return on Funds Under Management

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Regional Network

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Split of Income

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Investment Management Totals

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Investment Management – Discretionary operating profit

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Corporate Advisory and Broking

75 1,545 Operating profit excluding redundancy costs, contract renewal payments (71) (758) Profit share 146 2,303 Profit before profit share (4,161) (4,173) Other operating costs (3,990) (4,401) Salaries 8,297 10,877 Total Income £’000 £’000

2009 2010

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Brand Awareness

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Awards

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Strategy

  • Leverage scale of one of the UK's largest

independent investment managers

  • Build on recurring revenue and discretionary

management

  • Retain and attract clients through richer levels of

customer service

  • Attract and motivate talented people and Build the

Brand

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Outlook

  • Government focus on equity over debt
  • Business well positioned to withstand adverse market

conditions

  • Building on existing national branch network
  • Expect more Regulation – both from UK and EU
  • Considered optimism for the future
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Discretionary £14.0bn Advisory £ 9.2bn Execution-only £ 4.3bn Total funds £27.5bn Custody £25.5bn Certificated £ 2.0bn Total funds £27.5bn

Analysis of Funds

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Allocation of Funds Under Management

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Other Key Facts

  • 41 offices
  • Corporate adviser to 90

quoted companies

  • Assets under management
  • 40 offices
  • Corporate adviser to 103

quoted companies

  • Assets under management
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Staff

* * CF30’s - 628

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What makes us special is that the person who talks to the client makes the investment decisions. With the help of our:

  • Asset Allocation Committee
  • Strong research departments
  • Collective funds analysis service
  • Model portfolios management options
  • Strong compliance

Approach to Investment

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  • Basic salary
  • Profit share
  • Share ownership
  • All personnel believe they can make a difference

Remuneration

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