Asset Management. Capital Markets Day 6 December 2001

Transcription

1 Asset Management Capital Markets Day 6 December 2001

2 Agenda Achievements in 2001 Industry trends and outlook - Nordic region Strategy within Asset Management Objectives and targets 2

3 Danske Bank - September 2001 Retail Banking Danske Bank BG Bank Fokus Bank Östgöta Enskilda Bank Mortgage Finance Realkredit Danmark Danske Bank Life and Pension Danica Pension Investment Management Danske Capital Danske Invest BG Invest Firstnordic Danske Private Equity Presented figures and achievements Wholesale Banking Danske Bank Danske Markets Investment Bank based on old organisational Danske Securities structure Retail Wholesale Group Services 3

4 Achievements in 2001 core earnings under pressure Core earnings Q1-Q3 Q1-Q3 Variance Index (mill.dkr.) /00 Core income (104) 93 Costs and depreciations Core earnings (136) 85 Cost/income ratio 0,47 0,42 Assets under management (36.000) 93 Core Earnings Before Provisions 44 (BGI Lux) Q1 - Q Q1 - Q Q1 - Q Top line growth affected negatively by lower trading-income Substantial improvement in profitability compared to earlier years; apart from 2000 which was extraordinary 4

5 Achievements in 2001 improved quality of top line Core income Q1-Q3 Q1-Q3 Variance Index (mill.dkr.) /00 Stock income Flow income (157) 81 Core income (excluding BGI Luxembourg) (13) 99 BGI Luxembourg - 91 (91) Core income (104) 93 Explanations to increase in stock income Danske Private Equity 31 Danske Capital Finland 21 Danske Capital Denmark 53 Other areas 39 Changes in stock income 144 Bn. DKK Assets under Management Q Q Q Q Q Discretionary Mandates Custody 22%-increase in stock income. New business lines in Denmark and abroad explain the increase. 5

6 Achievements in asset allocation affected by stock market crisis September 2000 September ,1 36,8 18,9 44,5 78,2 Fixed Income (domestic) 55,4 283,3 Foreign Equities Domestic Equities Cash Fixed Income (foreign) 100,8 296,4 134,9 Sept 00 Sept 01 Assets Under Management

7 Achievements in retail customers still a substantial part of total AuM September 2001 September Life Insurance Mutual Funds Investment Services Private Banking Institutional Sept 00 Sept 01 Assets Under Management

8 Achievements in still positive net inflow on mutual funds Bn. DKK Net inflow in Denmark 11 6,6 7,5 2,7 2,8 Q Q Q Q Q Net inflow still positive in spite of difficult market conditions Institutional customers generate a substantial part of net inflow in

9 Achievements in 2001 very strong position in Denmark Market share - AuM end 2000 Mutual funds Institutional Total Denmark 40% 11% (e) 18% (e) Sweden 1% - 1% (e) Norway 2% 1% (e) 2% (e) Finland 0% 7% (e) 4% (e).. challenges in the other Nordic countries 9

10 Achievements in overall satisfying position on mutual funds Overall Ranking Total Points 1. Carnegie WorldWide 2. Uni-invest 2. Danske Invest 4. BankInvest 5. Sparinvest Alm. Brand Invest 22 Source: Investeringsdata/Børsens Nyhedsmagasin 10

11 Achievements in however still challenges on equity investment performance Investment Performance Sharpe ratio 3 years Ranking AuM in bn. dkr. Target - top quartile Danish equities European Equities Global Equities Far East 0,32 3 of 16 4,1 0,08 5 of 17 2,2 0,20 9 of 20 0,5 0,38 7 of 9 0,4 Source: Investeringsdata/Børsens Nyhedsmagasin Further offensive initiatives on niches - IT, Health Care, Biotech, Baltic, East European equities and Private Equity 11

12 Achievements in investment performance on bonds has been good Investment Performance Return 3 years Ranking AuM in bn. dkr Target - top quartile Short-term Danish bonds Other Danish bonds Global bonds Index-linked bonds 16% 1 of 10 1,3 18% 1 of 14 8,1 21% 3 of 7 0,4 8% 5 of 7 0,2 Source: Internal statistics Further offensive initiatives on European credit bonds 12

13 Achievements in 2001 We have increased quality in core income and consolidated our strong competitive position on the Nordic market 13

14 Agenda Achievements and initiatives in 2001 Industry trends and outlook - Nordic region Strategy within Asset Management Objectives and targets 14

15 Industry trends and outlook - Nordic region Areas of importance Trends and outlook Comments Market growth Customer needs and preferences Products and services Distribution channels Employees and management Organisation 15

16 Industry trends and outlook - Nordic region Areas of importance Market growth Trends and outlook Creation of wealth Increased savings Pension schemes Comments Still a growth market; however with lower growth rates Customer needs and preferences Products and services Distribution channels Employees and management Organisation 16

17 Industry trends and outlook - Nordic region Areas of importance Trends and outlook Comments Market growth Creation of wealth Increased savings Pension schemes Still a growth market; however, with lower growth rates Customer needs and preferences Sophistication of demands from institutional and retail customers Products and services Distribution channels Employees and management Organisation 17

18 Industry trends and outlook - Nordic region Institutional Clients Essential success criteria Competence Performance Client services and reporting Superior advisory services Image Investment philosophy and processes Focus on ALM and asset allocation Performance (relative to benchmark) is a key competitive parameter Increasing services and reporting requirements Less loyalty - also among small, institutional clients 10-20% in alternative investments 18

19 Industry trends and outlook - Nordic region Retail Clients Essential success criteria Image/brand Client services and concepts Superior advisory services Rating and performance Branding of products and distributors Increasing demand for advisory services and concepts A growing differentiation of services provided for retail and VIP clients - partly by means of e-solutions Focus on rating and absolute return Clients demand more options Competence 19

20 Industry trends and outlook - Nordic region Areas of importance Trends and outlook Comments Market growth Creation of wealth Increased savings Pension schemes Still a growth market; however with lower growth rates Customer needs and preferences Sophistication of demands from institutional and retail customers Quality and performance combined with unique client focus are key parameters Products and services Distribution channels Employees and management Organisation 20

21 Industry trends and outlook - Nordic region Areas of importance Market growth Customer needs and preferences Products and services Trends and outlook Creation of wealth Increased savings Pension schemes Sophistication of demands from institutional and retail customers More complexity in products and services Increased number of investment alternatives Comments Still a growth market; however with lower growth rates Quality and performance combined with unique client focus are key parameters Distribution channels Employees and management Organisation 21

22 Industry trends and outlook - Nordic region Assets Hedge Funds Strategic ALMallocation Tactical Private Equity Private Equity Equity Equity Equity Liabilities Bonds Bonds Bonds Cash Cash Cash Past Present Future 22

23 Industry trends and outlook - Nordic region Areas of importance Market growth Customer needs and preferences Products and services Trends and outlook Creation of wealth Increased savings Pension schemes Sophistication of demands from institutional and retail customers More complexity in products and services Increased number of investment alternatives Comments Still a growth market; however with lower growth rates Quality and performance combined with unique client focus are decisive parameters Concepts and innovative products instead of traditional product focus Distribution channels Employees and management Organisation 23

24 Industry trends and outlook - Nordic region Areas of importance Trends and outlook Comments Market growth Customer needs and preferences Products and services Distribution channels Creation of wealth Increased savings Pension schemes Sophistication of demands from institutional and retail customers More complexity in products and services Increased number of investment alternatives Physical distribution combined with powerful e-solution Still a growth market; however, with lower growth rates Quality and performance combined with unique client focus are decisive parameters Concepts and innovative products instead of traditional product focus Employees and management Organisation 24

25 Industry trends and outlook - Nordic region Areas of importance Market growth Customer needs and preferences Products and services Distribution channels Employees and management Trends and outlook Creation of wealth Increased savings Pension schemes Sophistication of demands from institutional and retail customers More complexity in products and services Increased number of investment alternatives Physical distribution combined with powerful e-solution Top skilled employees seek high-profile asset management companies Comments Still a growth market; however with lower growth rates Quality and performance combined with unique client focus are decisive parameters Concepts and innovative products instead of traditional product focus Value-based management Organisation 25

26 Industry trends and outlook - Nordic region Areas of importance Trends and outlook Comments Market growth Customer needs and preferences Products and services Distribution channels Employees and management Creation of wealth Increased savings Pension schemes Sophistication of demands from institutional and retail customers More complexity in products and services Increased number of investment alternatives Physical distribution combined with powerful e-solution Top skilled employees seek high-profile asset management companies Still a growth market; however with lower growth rates Quality and performance combined with unique client focus are decisive parameters Concepts and innovative products instead of traditional product focus Value-based management Organisation Separation of production and distribution Open architecture 26

27 Industry trends and outlook - Nordic region Summary A more complex world, where the overall challenge will be to meet your customers demands with adequate customised solutions.. provided by yourselves or by somebody else 27

28 Agenda Achievements and initiatives in 2001 Industry trends and outlook - Nordic region Strategy within Asset Management Objectives and targets 28

29 Vision Preferred Nordic Asset Manager Client-driven and value creating organisation supported by innovative concepts and focused production 29

30 Preferred Nordic Asset Manager how do we use corporate values? Client focus - accessibility - integrity Innovative concepts - value creation - commitment Focused production - expertise 30

31 Preferred Nordic Asset Manager how do we use corporate values? Client focus - accessibility, integrity dedicated and personal Innovative concepts - value creation - commitment Focused production - expertise customised advisory services comprehensive and consistent view 31

32 Preferred Nordic Asset Manager how do we use corporate values? Client focus - accessibility - integrity dedicated and personal customised advisory services comprehensive and consistent view Innovative concepts - value creation - commitment investment concepts based on in-depth and thorough portfolio analysis presentation of consistent concepts value always visible to the client Focused production - expertise 32

33 Preferred Nordic Asset Manager how do we use corporate values? Client focus - accessibility - integrity Innovative concepts - value creation - commitment Innovative concepts - expertise dedicated and personal customised advisory services comprehensive and consistent view investment concepts based on in-depth and thorough portfolio analysis presentation of consistent concepts value always visible to the client in-house production only within areas of competence never compromise on product quality best practice 33

34 Strategy within Danske Bank new organisational structure distinguishes between P&D Production Danske Capital Danske Invest Danske Markets Danske Securities Danica Link External providers Distribution decides where to buy.. Distribution Retail Denmark Retail Sweden Retail Norway Etc. 34

35 Strategy within Danske Bank new organisational structure reflects an open architecture Production Distribution External Production Internal Production Danske Invest Danske Capital Firstnordic Danske Private Equity Retail Denmark Retail Sweden Retail Norway Etc. End-Customer Retail HNWI/affluent Corporate End-Customer Institutional 35

36 Strategy within Asset Management - future growth created by four-stringed strategy Retail - mutual funds Consolidate market share brand and top-class performance intensive support to distribution broad product range alternative distribution, (unit link) Institutional Increase market share - Tier I+II top-class performance and investment processes customer focus and top-class reporting/communication innovative products (niche products) Increase market share intensive support to distribution broad product range top-class performance Increase market share - Tier II strong global and local position top-class performance niche competence 36

37 Strategy within Asset Management - mutual funds will still be a key driver Mutual funds in Scandinavia bill. Euro Denmark Sweden Norway Finland Reasons for mutual funds Customer view-point Risk diversification Cost effective Banking view-point Quality in earnings Source: Official market statistics 37

38 Strategy within Asset Management - further improvement in top-line quality through mutual funds Stock income Retail Fees Sales on fees on outstanding volume outstanding volume Flow income Retail Underwriting commission Trading by the customer Asset Management Advisory fee for portfolio management Asset Management Portfolio management by the asset manager 38

39 Agenda Achievements and initiatives in 2001 Industry trends and outlook - Nordic region Strategy within Asset Management Objectives and targets 39

40 Objectives And Targets Asset Management value creation Core Earnings 10-15% Annual Growth To consolidate our existing retail-market share in Denmark and create higher efficiency År 1999 År 2000 År 2001 År

41 Objectives And Targets Asset Management value creation Core Earnings 10-15% Annual Growth To consolidate our existing retail-market share in Denmark with higher efficiency To create a platform for further expansion, especially in Sweden; presumably by organic growth År 1999 År 2000 År 2001 År

42 Objectives And Targets Asset Management value creation Core Earnings 10-15% Annual Growth To consolidate our existing retail-market share in Denmark with higher efficiency To create a platform for further expansion, especially in Sweden; presumably by organic growth To deliver investment results in the Top-quartile År 1999 År 2000 År 2001 År

43 Objectives And Targets Asset Management value creation Core Earnings 10-15% Annual Growth To consolidate our existing retail-market share in Denmark with higher efficiency To create a platform for further expansion, especially in Sweden; presumably by organic growth To deliver investment results in the Top-quartile To implement an open architecture with top-class external providers of products outside our core competence's År 1999 År 2000 År 2001 År

44 Asset Management Capital Markets Day 6 December 2001