INVESTMENT OPPORTUNITIES IN AFRICA AND AROUND THE WORLD

Transcription

1 INVESTMENT OPPORTUNITIES IN AFRICA AND AROUND THE WORLD

2 OLD MUTUAL GROUP (Established in South Africa in 1845) ASSETS UNDER MANAGEMENT: US$513.9bn* Old Mutual is an international savings, insurance and banking group. Listed on the London and Johannesburg stock exchanges, and operating on five continents across emerging and developed markets. Old Mutual Global Investors: US$130bn Serving over 16 million customers US$25.2bn invested in community projects US Asset Management: US$257bn Over 400 investment professionals Employing over people Old Mutual Emerging Markets: US$100bn South America, Africa, China & India OLD MUTUAL INVESTMENT GROUP ASSETS UNDER MANAGEMENT R574.4bn* Largest African private sector investment manager 12 specialist investment boutiques Global leverage * As at 30 June 2014 All figures as at 31 December 2013 unless otherwise stated

3 Dear Investors At the Old Mutual Investment Group, we take our responsibility to our customer very seriously. So much so we even have a unique Customer and Fund Manager Investment Partnership Agreement a contract that sets out, in detail, our commitment to delivering marketbeating returns for you in the long term. Over the next few pages, you will find out how we work and gain some insight into why the many investment solutions offered by our unique multi-specialist boutiques could benefit your investment portfolio. If you would like more information, please don t hesitate to call us. We re always available to talk and we re as invested as you are in making sure you see marketbeating returns over the long term. Diane Radley Chief Executive Officer (CEO) COMMITMENT AS INVESTED AS YOU ARE With over R560 billion in assets under management, we are focused on delivering consistent marketbeating returns for our customers, being responsible stewards of the assets we manage and benefiting the communities in which we invest. To ensure that we achieve these goals, our portfolios are managed by a suite of specialist investment boutiques, each with a unique philosophy and process. As part of a leading life assurance company, with a proud heritage of 169 years, our teams are well resourced to grow and develop new and innovative products for the benefit of our customers.

4 PARTNERSHIP DESIGNED TO ENABLE GROWTH Old Mutual is an international savings, insurance and banking group. It is listed on the London and Johannesburg stock exchanges and operates on five continents across emerging and developed markets. The group s vision is to harness the resources and skills we have around the world to become our customers most trusted partner and, in so doing, help them achieve their lifetime financial goals. Old Mutual serves more than 16 million customers and employs more than people including over 400 investment professionals.

5 People will always be at the centre of the Old Mutual vision and we have US$25.2bn invested in community projects. UNDERSTANDING CARING ABOUT YOUR UNIQUE NEEDS Asset Management We aim to grow our customers savings and wealth, whether through active and direct asset management or by selecting funds and managers for customers to invest in. Long-term Savings and Investments We provide innovative life assurance-based solutions that address both protection and retirement needs. Banking We have a majority shareholding in Nedbank, one South Africa s leading banks, which also has banking interests in other countries in Southern Africa. Property and Casualty We provide short-term insurance solutions in Southern Africa through Mutual & Federal and Old Mutual.

6 TOGETHER LOOKING TO ACHIEVE LONG-TERM INVESTMENT SUCCESS INVESTING RESPONSIBLY IN YOUR FUTURE, OUR FUTURE AND THE WORLD S FUTURE In the interests of investing in a richer life, in every sense of the word, we are pioneers in infrastructure and impact asset investing across the African continent. As such, we are proud to contribute to the economic and social development of the communities in which we invest, and the continent as a whole, knowing that the ultimate investment is in the people of the countries in which we operate.

7 At Old Mutual Investment Group, we attract and retain the best talent through our boutique structure, where the boutique heads and investment professionals own equity in their business and invest their own money alongside that of our customers. THE DEAL IS SIMPLE: The boutiques have investment autonomy and we provide them with a world-class professional infrastructure. This means that our fund managers enjoy the upside of managing their own investment business, namely the ability to focus 100% on managing customer portfolios built on proprietary research, while business operations are effectively managed by a strong team of expert professionals. THE RESULT: Our customers reap the reward of this focus by getting market-beating returns and the peace of mind that we will deliver on our promises over time. As testimony to our ability to deliver over the long term, we manage South Africa s longest running unit trust. Backed by a 48-year track record, the Old Mutual Investors Fund is recognised as the winning SA equity fund over the long term*. *Africa Asset Management Performance Awards October 2013

8 TRUST BUILDING RELATIONSHIPS We ve been proving ourselves for 169 years. We are Africa s largest private sector investment manager and a member of the Old Mutual Group, a Fortune 500 company, which has been growing investors wealth since We re proud to say that we manage South Africa s longest running unit trust and offer you a record of long-term, market-beating returns. Including the Old Mutual Investors Fund, which has been creating wealth for our customers for almost 50 years. Winning a wide range of awards along the way. Two Raging Bull Awards in 2014 One Morningstar Award in 2012 Two Africa Asset Management Performance Awards in African Renewables Deal of the Year by Project Finance International Offering unequalled on-the-ground expertise in emerging markets. We operate in South America, China, India and across the African continent. This means our customers benefit from our access to on-the-ground intelligence when navigating the complexities of investing in emerging markets. Assets Under Management By Capability And world-class governance and business practices. We have a strong focus on governance issues and align our compliance procedures with international best practice. We pride ourselves on being responsible stewards of our customers assets. Guided by the United Nations-backed Principles for Responsible Investing (PRI), we believe that by incorporating environmental, social and governance (ESG) factors into our investment and ownership decisions we are able to deliver strong, long-term returns for our customers. Our diverse range of experience. Our customers come from a wide range of businesses, of all kinds of sizes, and include: Unit trust investors Financial advisers Linked investment service providers Multi-managers Retirement funds Trade unions Corporates Medical aids Assets Under Management By Stakeholders Alternative Equity Interest Bearing Assets R24,3bn R15,3bn R97,6bn Unit Trusts R92,6bn Multi-Asset Class Property R313,0bn R574,4bn R124,2bn Third Party R126,9bn R574,4bn Life incl. policyholders R354,9bn As at 30 June 2014

9 CARING ABOUT THE FUTURE FOR ALL INVESTING IN SUSTAINABILITY We invest significantly in real assets such as infrastructure development, education, affordable housing, low-carbon energy and agriculture. Through these investments our customers contribute to the development and growth of an economically vibrant country and empowering local communities, while receiving market-related returns. INVESTING IN LOCAL COMMUNITIES We embrace the communities in which we invest and aim to add value to them in various ways. Green Hands, for instance, is a staff-driven initiative that supports education, health and housing through fund-raising and volunteerism. The Old Mutual Foundation creates opportunities for integrating marginalised South Africans in rural and peri-urban communities into the mainstream economy. The focus is on skills capacity building, enterprise development, education and staff volunteerism. INVESTING IN TALENT Our strong transformation agenda focuses on the socio-economic advancement of previously disadvantaged individuals, with the aim of ensuring that we have a vibrant and demographically representative workforce. In 2008, we established the Imfundo Trust, a bursary programme run in partnership with local universities, which aims to grow the pool of black investment talent in South Africa.

10 SIDE BY SIDE INVESTED IN YOUR SUCCESS Our investment boutique heads and investment professionals own equity in their business, and invest their own money right alongside their customers. This means that each fund manager is as invested as their customers and thus committed to achieving financial success over the long term. Let our multi-skilled investment specialists help you to do great things.

11 FLEXIBLE WORKING WITH YOU AROUND YOUR NEEDS Our portfolios are managed by a suite of specialist investment boutiques, each with a unique philosophy and process. This means that whatever your listed or unlisted investment need, we have a solution. Here is a brief introduction to our boutiques. You can read more about their specific investment philosophies and processes at

12 ABSOLUTE RETURN INVESTMENTS By blending sophisticated risk protection techniques and investments with specific return characteristics, we build portfolios that target consistent, inflation-beating returns. LIABILITY-DRIVEN INVESTMENTS We aim to manage assets relative to their liability to ensure a stable, consistent surplus over time. This is achieved through the use of two distinct components, namely risk-protection and returnproducing investment strategies. ALTERNATIVE INVESTMENTS MACROSOLUTIONS Old Mutual Alternative Investments is one of the largest alternative investment managers in Africa, with R51billion (US$5 billion) assets under management. We manage investments in private equity, infrastructure and a range of impact funds. We build local and global multi-asset class portfolios, using active asset allocation that offers optimal investment solutions across the risk/return spectrum. ELECTUS MARRIOTT INCOME SPECIALISTS Highly focused, fundamentally-based share selectors, we construct high-conviction, concentrated portfolios with the potential for high returns over the long term. We invest retired investors capital conservatively to ensure that a reliable, predictable income is produced without eroding the capital base. FUTUREGROWTH ASSET MANAGEMENT We use our insights and experience in understanding interest rate and credit cycles to create performancedriven portfolios in the fixed income markets. OLD MUTUAL EQUITIES We invest in undervalued shares, while also carefully considering the risk, quality, growth and sentiment of each share. Our investment approach can be used as an anchor equity component to a portfolio. It is disciplined, consistent and robust, and we directly link final portfolio decisions to our in-house research.

13 OLD MUTUAL GLOBAL INDEX TRACKERS OLD MUTUAL SPECIALISED FINANCE Our tracker and tracker-plus capabilities focus on providing investors with cost-effective, efficient access to many markets and asset classes via our technologydominated index tracking. We are a proprietary investment business and an alternatives investment manager. Our areas of expertise lie in credit, equity, interest rate, liquidity and tax risk. OLD MUTUAL PROPERTY QUANTITATIVE INVESTMENTS We build innovative real estate investment solutions that deliver reliable, predictable and growing income streams. These solutions provide investors with access to the most prestigious commercial properties in South Africa. Quantitative Investments focusses on building wealth by achieving stable returns over the long-term. We construct equity portfolios by considering rigorous and objective analysis of fundamental, risk and economic data. We also consider a number of themes that drive markets. Our strategies are objectively and consistently applied across all shares within a universe and over time.

14 OPEN SEEKING OPPORTUNITIES THROUGHOUT AFRICA We are the largest African private investment manager with a full complement of both listed and unlisted capabilities, and operations in South Africa, Ghana, Nigeria, Namibia, Swaziland, Zimbabwe, Malawi, Kenya and Botswana. As we are a pan-african investor, our customers can benefit from the outstanding investment potential of Africa s stock exchanges, via both actively managed and index-tracker funds. Within Alternative Investments, we manage South Africa s largest private, economic and social infrastructure funds. Our unmatched capabilities in non-traditional asset classes include investments in private equity, low-income housing, schools, infrastructure, agriculture, development equity and property. These assets have low correlations to other asset classes offering investors an attractive alternative source of equity and debt returns over the long term, while providing attractive returns and measurable socio-economic impacts that and support growth across the continent. STRONG GDP GROWTH FORECAST FOR AFRICAN COUNTRIES 28 African countries are ranked in the Top 50 Emerging and Developing Economies according to real GDP growth projected to 2017 AFRICAN COUNTRY GDP GROWTH 2017 (F) Angola 5,5% Nigeria 6,6% Egypt 6,5% Mali 5,3% Zambia 7,7% Morocco 5,9% Kenya 6,5% Burkina Faso 7,0% Mauritius 4,2% AFRICAN COUNTRY GDP GROWTH 2017 (F) Ghana 5,7% Sierra Leone 4,3% Tunisia 6,7% Botswana 4,3% Cameroon 5,0% Cote d lvoire 6,7% Congo 5,7% Namibia 4,4%

15 BOLD AN ENORMOUS CONTINENT MASSIVE OPPORTUNITY France Netherlands Belgium Portugal Spain Germany Switzerland Italy Eastern Europe USA India India Part 2 China China Part 2 UK Japan

16 PROGRESSIVE WE ARE THE LARGEST AFRICAN INVESTMENT MANAGER OLD MUTUAL HAS OPERATIONS IN: Accra, Ghana Lagos, Nigeria Nairobi, Kenya Blantyre, Malawi Windhoek, Namibia Harare, Zimbabwe Mbabane, Swaziland Johannesburg, South Africa Cape Town, South Africa

17 RESPONSIVE TO THE UNIQUE DEMOGRAPHICS OF OUR CONTINENT From a demographic perspective there is no place like Africa. The combination of a burgeoning middle class and, unlike aging populations of the developed world, the ratio of younger to elderly people and the impact this has on the future size of the working population, augurs well for future economic activity and growth prospects. 45% of the African population is currently under the age of 15 and the median age in Sub-Saharan Africa is a mere 18.6 years, the lowest compared with medians in other regions. Africa s population demographics should help to boost economic growth on the continent with: - A projected increase in the relatively low median age, and - A growing middle class, which is larger than India s. Cavan Osborne, Portfolio Manager of our African active equity funds: Old Mutual has a large African footprint and, from a fund management perspective, our way is paved by access to in-country expertise and contacts.

18 WILLING TO PROVE OURSELVES TO YOU OLD MUTUAL An international investment, savings, insurance and banking group. Serving over 16 million customers. Over 400 investment professionals. Employing over people. US$25.2bn invested in community projects. 17% growth in Group Adjusted Operating Profit (constant currency).* US$513.9bn Group Funds under Management (core operations).* US$2.736bn Net client cash flows.* 14% increase in gross sales.* As at 31 December 2013 unless otherwise stated *As at 30 June 2014

19 OLD MUTUAL INVESTMENT GROUP 12 multi-specialist investment boutiques. Over 200 investment professionals. 48 years Old Mutual Investors Fund, SA s longest running unit trust. R51bn invested in alternative assets across Africa. As at 31 December 2013

20 ACCESS TO ALL THAT OLD MUTUAL OFFERS AFRICA ASIA EUROPE NORTH AND SOUTH AMERICA BARROW, HANLEY, MEWHINNEY & STRAUSS, LLC This is not a complete list of our brands. Our US and South Africa Asset Management businesses have a number of separately branded boutiques.

21 OUR INVESTMENT CAPABILITIES These tables map our investment capabilities to the specialist teams that offer them. You can read about each boutique in more detail, including their specific investment philosophies at LISTED ASSETS ACTIVE EQUITY PASSIVE EQUITY SOUTH AFRICA AFRICA INTERNATIONAL SHARI AH EMERGING MARKET SOUTH AFRICA AFRICA INTERNATIONAL Absolute Return Investments, Old Mutual Equities, Electus, Quantitative Investments Old Mutual Equities MacroSolutions Quantitative Investments Electus Old Mutual Global Index Trackers PROPERTY FIXED INCOME SOUTH AFRICA INTERNATIONAL SOUTH AFRICAN MONEY MARKET SOUTH AFRICAN BONDS SOUTH AFRICAN CREDIT SOUTH AFRICAN GOV T BONDS MacroSolutions Futuregrowth Asset Management EMERGING MARKET DEBT INTERNATIONAL BONDS INTERNATIONAL CREDIT INTERNATIONAL CURRENCIES MacroSolutions MULTI-ASSET SOUTH AFRICA AFRICA INTERNATIONAL MacroSolutions HEDGE SHARI AH SOUTH AFRICA Quantitative Investments Absolute Return Investments, Quantitative Investments

22 ALTERNATIVE AND UNLISTED ASSETS EQUITY SOUTH AFRICAN PRIVATE EQUITY AFRICAN PRIVATE EQUITY Alternative Investments INTERNATIONAL PRIVATE EQUITY DEVELOPMENT EQUITY Futuregrowth Asset Management SOCIAL INFRASTRUCTURE SOUTH AFRICAN HOUSING AFRICAN HOUSING SOUTH AFRICAN SCHOOLS Alternative Investments ECONOMIC INFRASTRUCTURE RENEWABLE ENERGY POWER & GAS TRANSPORT TELECOMS HEALTHCARE DEVELOPMENT FINANCE SMALL/MICRO/MEDIUM ENTERPRISES SHOPPING CENTRES Alternative Investments, Futuregrowth Asset Management SOUTH AFRICAN AGRICULTURE AFRICAN AGRICULTURE WATER & SANITATION Futuregrowth Asset Management PROPERTY FIXED INCOME SOUTH AFRICA EMERGING MARKETS SOUTH AFRICAN DEBT Old Mutual Property Futuregrowth Asset Management

23 JANINA SLAWSKI Head: Institutional Distribution (0) (0) DISCLAIMER Old Mutual Investment Group (Pty) Limited Physical Address: Mutualpark, Jan Smuts Drive, Pinelands 7405 Old Mutual Investment Group (Pty) Limited (Reg No 1993/003023/07) is a licensed financial services provider, FSP 604, approved by the Registrar of Financial Services Providers ( to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS). Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance. The investment portfolios may be market-linked or policy based. Investors rights and obligations are set out in the relevant contracts. Unlisted investments have short-term to long-term liquidity risks and there are no guarantees on the investment capital nor on performance. It should be noted that investments within the fund may not be readily marketable. It may therefore be difficult for an investor to withdraw from the fund or to obtain reliable information about its value and the extent of the risks to which it is exposed. The value of the investment may fluctuate as the value of the underlying investments change. In respect of pooled, life wrapped products, the underlying assets are owned by Old Mutual Life Assurance Company (South Africa) Limited, who may elect to exercise any votes on these underlying assets independently of Old Mutual Investment Group. In respect of these products, no fees or charges will be deducted if the policy is terminated within the first 30 days. Returns on these products depend on the performance of the underlying assets. Disclosures: Personal trading by staff is restricted to ensure that there is no conflict of interest. All directors and those staff who are likely to have access to price sensitive and unpublished information in relation to the Old Mutual Group are further restricted in their dealings in Old Mutual shares. All employees of the Old Mutual Investment Group are remunerated with salaries and standard incentives. Unless disclosed to the client, no commission or incentives are paid by the Old Mutual Investment Group to any persons other than its representatives. All inter-group transactions are done on an arm s length basis. We outsource investment administration of our local funds to Curo Fund Services (Pty) Ltd, 50% of which is owned by the Old Mutual Investment Group. Disclaimer: The contents of this document and, to the extent applicable, the comments by presenters do not constitute advice as defined in FAIS. Although due care has been taken in compiling this document, Old Mutual Investment Group does not warrant the accuracy of the information contained herein and therefore does not accept any liability in respect of any loss you may suffer as a result of your reliance thereon. The processes, policies and business practices described may change from time to time and Old Mutual Investment Group specifically excludes any obligation to communicate such changes to the recipient of this document. This document is not an advertisement and it is not intended for general public distribution. The information herein does not constitute an offer to sell or a solicitation of an offer to buy any securities. Old Mutual Investment Group has comprehensive crime and professional indemnity insurance. For more detail, as well as for information on how to contact us and on how to access information, please visit Telephone number: