Schroder Australian Equities Know your Fund Managers

Transcription

1 Schroder Australian Equities Know your Fund Managers 13 April 2012 Representing Schroders: Oliver Trusler, CFA - Investment Specialist Schroder Investment Management Australia Limited ABN Australian Financial Services Licence Level 20 Angel Place, 123 Pitt Street, Sydney NSW 2000

2 Investment presentation Disclaimer statement This presentation is intended solely for the information of the person to whom it was provided by Schroder Investment Management Australia Limited (ABN , AFSL ) (Schroders). Investment in Schroder Funds may be made on an application form in the Product Disclosure Statement (PDS) which is available from the Schroders website The information contained in this Presentation is general information only and does not take into account your objectives, financial situation or needs. Before acting on the information contained in this Presentation you should obtain a copy of the PDS and consider the appropriateness of the information in regard to your objective, financial situation and needs before making any decision about whether to invest, or continue to hold. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this presentation. Except insofar as liability under any statute cannot be excluded, Schroders and its directors, employees, consultants or any company in the Schroders Group do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this presentation or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this presentation or any other person. Returns shown are before tax and fees and all income is reinvested. You should note that past performance is not a reliable indicator of future performance. Opinions constitute our judgement at the time of issue and are subject to change. The information and opinions and associated estimates and forecasts contained in this document have been obtained from or are based on sources believed by us to be reliable, but no responsibility can be accepted for error of fact or opinion. For security reasons telephone calls may be recorded. Investment guidelines represented are internal only and are subject to change without notice. Third party data including MSCI data, is owned by the applicable third party identified in the presentation and is provided for your internal use only. Such data may not be reproduced or re-disseminated and may not be used to create any financial instruments or products or any indices. Such data is provided without any warranties of any kind. Neither the third party data owner nor any other party involved in the publication of this document can be held liable for any error. The terms of the third party s specific disclaimers, if any, are set forth in the Important Information section at 2

3 About Schroders One of the largest independent investment managers in the world Risk Business + Philosophy + People + Valuation + assessment + construction Schroders offices* Financial strength and stability Size and experience of Schroders global network (Investment offices in orange) Bermuda Cayman Islands Mexico City New York Philadelphia Amsterdam Copenhagen Frankfurt Geneva Gibraltar Guernsey Jersey London Luxembourg Madrid Milan Paris Rome Stockholm WiesbadenZ urich Beijing Hong Kong Jakarta Seoul Shanghai Singapore Sydney Taipei Tokyo Long standing heritage Global funds under management: A$283.9 billion* Australian funds under management: A$27.4 billion** Australian equity funds under management: A$9.9 billion** Buenos Aires São Paulo Dubai 3 *as at 31 December 2011 **as at 29 February 2012 Here for the long term

4 The Schroder advantage pure investment management How do we achieve your objectives? Business Philosophy People Achieving client objectives Valuation Risk assessment construction 4 Advantage is achieved through combination Source: Schroders

5 Investment philosophy Quality endures and must manifest itself in superior return on capital Risk Business + Philosophy + People + Valuation + assessment + Strong ROIC : 35% 30% 25% 20% Woolworths construction $35 $30 $25 $20 15% $15 Business value is a long-term concept 10% 5% $10 $5 Research and understanding are essential 0% Weak ROIC : 35% 30% 25% Fairfax Media Return on capital price $0 $5 $5 $4 $4 20% 15% $3 $3 $2 10% $2 5% $1 $1 0% $0 Return on capital price 5 Superior returns over time = outperformance Source: Schroders, Bloomberg company data This is illustrative only and does not represent Schroders recommendation on these stocks

6 Australian Investment Team Integrated approach to research with deep industry knowledge Analyst Years Experience A$100bn+ Martin Conlon Head of Equities 23 yrs Andrew Fleming Deputy Head of Equities 23 yrs David Wanis Senior Manager 17 yrs Marcus Burns Senior Manager 15 yrs Justin Halliwell Head of Research 16 yrs Risk Business + Philosophy + People + Valuation + assessment + Ken Lambden Global Head of Equities 31 yrs Daniel Peters Analyst 12 yrs TBA (~10 yrs) Large Cap (ASX 100) Alex Mears Analyst 8 yrs Belinda Sanith Analyst 5 yrs Alex Chin Analyst 3 yrs Will Psomadelis Head of Trading 12 yrs Adam Lund Trader 5 yrs construction A$1bn+ Barry Chapman Small Cap (ASX ) Quant Analyst 15 yrs A$400m A$10m Micro Cap Oliver Trusler Investment Specialist 13 yrs 6 [ X ] = Years in the Industry at 31 March 2012 Aligned, experienced, large and stable = superior insight

7 Outcomes Historical long term performance Risk Business + Philosophy + People + Valuation + assessment + construction 5.0% Returns in excess of the Index... (to December 2011) 17.0%...with generally lower risk than the Index (to December 2011) 1.5% 16.0% 1.0% 3.0% 15.0% 1.0% -1.0% Standard Deviation 14.0% 13.0% 12.0% 11.0% 0.5% 0.0% -0.5% -1.0% -3.0% 10.0% 9.0% -1.5% -5.0% 8.0% -2.0% Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02 Jun 02 Sep 02 Dec 02 Mar 03 Jun 03 Sep 03 Dec 03 Mar 04 Jun 04 Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02 Jun 02 Sep 02 Dec 02 Mar 03 Jun 03 Sep 03 Dec 03 Mar 04 Jun 04 Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Difference 5yr Rolling 10yr Rolling Diff (RHS) Fund SD 5yr (LHS) BM SD 5yr (LHS) 7 Consistent and reliable performance Source: Schroders, IRESS, Schroder Australian Equity Fund (gross returns), Benchmark is the S&PASX 200 Accumulation Index to 31 Dec 11

8 positioning - Schroder Australian Equity Fund at 31 December 2011 % Schroder Australian Equity Fund S&P / ASX 200 Accumulation Index Materials Financials 8 Source: Schroders, IRESS

9 The strategic power of Masters What is the import of Hardware to Wesfarmers valuation? 14% 12% EBIT Margins Wesfarmers Home Improvement F12 WES EBIT Split 10% 8% Woolworths Food and Liquor Other Coles 6% Resources 4% 2% Wesfarmers Food and Liquor Woolworths Other Home Improvement and Office Supplies 0% Masters is more of a value threat to Wesfarmers than Coles is to Woolworths Source: Schroders, December 2011,This is Illustrative only and does not represent a recommendation to buy/sell.

10 Australian Equities outlook Summary Our revenue and earnings forecasts are based on an expectation of ongoing deleveraging and structural change rather than a traditional cycle. Pricing power should become crucially important in an environment of weak demand and excess capacity. Organic growth will remain far more valuable than acquisitive growth and in an environment of cheap credit, much of the latter will prove disastrous. 10 Changing conditions require changing thinking Source: Schroders, April 2012

11 Performance of the Schroder Wholesale Australian Equity Fund to 31 March Months 6 Months 1 Year 2 Years 3 Years 5 Years Since Inception % % % % p.a. % p.a. % p.a. % p.a. Fund (Pre-fee) S&P / ASX 200 Accumulation Index Value Added Fund (Post-fee) Source: Schroders/IRESS, * Net of 0.92% p.a. management costs Strategy Inception 1 July 2002, past performance is not a reliable indicator of future performance

12 Schroder Australian Equities Know your Fund Managers 13 April 2012 Representing Schroders: Oliver Trusler, CFA - Investment Specialist 12 Schroder Investment Management Australia Limited ABN Australian Financial Services Licence Level 20 Angel Place, 123 Pitt Street, Sydney NSW 2000