AXA Investment Managers

Transcription

1 Investor Day November 7, 2012 AXA Investment Managers Dominique Carrel-Billiard CEO, AXA Investment Managers

2 Cautionary note concerning forward-looking statements Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Please refer to the section Cautionary statements in page 2 of AXA s Document de Référence for the year ended December 31, 2011, for a description of certain important factors, risks and uncertainties that may affect AXA s business. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. G2 AXA Investment Managers November 7, 2012

3 AXA IM is key for the AXA Group A strategic part of the insurance value chain and AXA positioning The Win-win model with AXA: a sustainable growth engine Investment excellence Capacity to develop solutions adapted to client needs Quality & advisory services Investment excellence Success stories & value creation Provide access to innovative products in a structurally attractive industry AXA GROUP AXA IM Access to long-term capital market growth Growing barriers to entry Demand & support for innovation Scale Strong cash flow generation LONG TERM VALUE CREATING RELATIONSHIP Attractive RoE driven by low capital intensive business BUILDING UP ATTRACTIVE EXPERTISE FOR 3RD PARTY CLIENTS G3 AXA Investment Managers November 7, 2012

4 AXA IM at a glance Figures as at 09/30/2012 YTD Revenues Assets Third-party assets: Euro 187 billion in Euro million 855 in Euro billion 548 8% JVs AXA Fixed Income 29% AXA Framlington 11% 54% 34% 6% AXA PE 1 9% AXA RE 2 5% AXA SF 3 AXA Rosenberg 5% MACS 4 26% 46% Third-party clients AXA Insurance companies 66% Third-party clients AXA Insurance companies AXA assets: Euro 361 billion 3% AXA PE 1 7% AXA RE 2 AXA Fixed Income 65% 2% AXA SF 3 20% MACS 4 1% AXA Rosenberg AXA Framlington 2% AXA IM manages one-third of assets for third-party clients accounting for more than 50% of its revenues A well balanced portfolio of expertise 1. AXA PE: AXA Private Equity 3. AXA SF: AXA Structured Finance 2. AXA RE: AXA Real Estate 4. MACS: Multi Asset Client Solutions (includes multi-assets, external managers, total return and structured products) G4 AXA Investment Managers November 7, 2012

5 2015 Ambition Vision Help clients to meet their future liabilities or life goals by managing their financial assets and advising them on their investment strategy Ambition From a distinctive multi-expert European asset manager to a leading global player in the asset management industry, leveraging our belonging to the AXA Group 2015 roadmap 1 Reinforce our distribution footprint in mature and high growth markets 2 Pursue operational efficiency 3 Develop our product pipeline G5 AXA Investment Managers November 7, 2012

6 1 Rolling out our strategy Reinforcing our distribution footprint A focused expansion Sales are gaining momentum 1 2 Consultant and RFP teams strengthened Number of rated strategies has tripled over 2 years Sales force reinforced In Euro billion FY Gross New Money +7% p.a % 37% 95 46% Example: UK, the Netherlands, Germany Third-party 63% 60% 54% 3 Marketing documentation and processes reviewed Investment roadmaps, global marketing campaigns, revamped website AXA FY09 FY11 4 Client servicing teams reinforced Client satisfaction: +9pts 1 over 1 year / 93% of Good to Excellent ratings High growth markets In Euro billion 9M Gross New Money +6% % 51% 5 Good momentum in JVs (China, India, Korea) Third-party AXA 56% 49% 1.3bn of Net New Money in 2012 reaching 16bn of assets 2 9M11 9M12 6 Take-off of the Asian set-up Sales force reinforced delivering 400M of Net New Money in Capturing growing market share where AXA IM has good products 1. Excellent / Very good ratings in % of total. Source: TNS Sofres 2. Figures as at 09/30/2012 G6 AXA Investment Managers November 7, 2012

7 2 Rolling out our strategy Pursuing operational efficiency A focused approach to deliver Cost Income improvement Operating Cost Income ratio 1 1H12 Integration of AXA Rosenberg 74% 2-2 pts Rationalisation of our set-up in Germany 72% 72% Lean management program on our operational processes Fund range rationalisation IT architecture and infrastructure improvement FY11 1H12 1. Excluding financial result 2. Excluding AXA Rosenberg coding error provision G7 AXA Investment Managers November 7, 2012

8 3 Rolling out our strategy Developing our product pipeline: 7bn 1 of assets raised since 2010 Strong contribution to NNM 2 Short term Long term Globalisation Opportunistic Forward-looking trends Global Strategic Bonds Europe Short Duration High Yield Emerging Markets Local Currency Bonds Sterling Short Duration Credit Global Credit Bonds Emerging Markets Short Duration Bonds SmartBeta Credit Universal Inflation Bonds European High Yield US Loans Gaia & Cronos Mid Cap Loans Global / EAFE Equities Eurozone RI LatAm UK Mid Cap Global High Income Global Convertibles SmartBeta Equity Defensive Equity Income LDI Range Volatility strategy M A C S Optimal Income Global Flex Funds RedEx Share Classes Negative Duration (NED) Solvency II products/ SolEx Share Classes Fiduciary Offering Tail Equity Diversifier (TED) Tokyo Office Fund Equity club deals US triple net lease CRE loans New generation of funds Globalisation of expertise AXA LBO Fund V AXA Infrastructure II AXA Secondary Fund V G8 AXA Investment Managers November 7, Figures as at 09/30/ Net New Money

9 Product life cycles are long in the industry Winners on the Asset Management market usually exhibit a long track record... which has also proven true for AXA IM Top collecting Lipper categories between 2009 and 2011 % of funds representing 80% of the 3Y positive NNM Average track-record of these funds (Years) Asset evolution since inception [N ; N+3] Average: 1.9x [N+3 ; N+7] Average: 4.2x 14x 11x 1 Bonds Global Currencies 5% 6,4 2 Equities Global 8% 5,8 3 Equities Emerging Markets 11% 8,2 4 Asset Allocation 5% 3,4 5 Bonds Emerg. Markets - Local Cur. 18% 4,8 6 Bonds Emerging Markets 17% 6,6 7 Bonds USD Corp. High Yield 18% 8,0 3x 6x 3x 8 Bonds Global High Yield 16% 13,1 9 Bonds USD 4% 11,9 10 Bonds Flexible 9% 5,1 Total Top 10 8% 7,0 N N+1 N+2 AXA Rosenberg AXA Private Equity 2x N+3 N+4 AXA Real Estate US Fixed Income N+5 N+6 N+7 AXA Framlington AXA FoHFs Source: Lipper FMI, cross-border European domiciled funds G9 AXA Investment Managers November 7, 2012

10 Prior investments are paying off (1/3) AXA Framlington In Euro billion Assets 1 In % Breakdown by client types Original Framlington 30 90% 70% 58% Retail 16 FY05 FY09 1H12 Institutional 17 More diversified client-base 7 10 ~ x2 In Euro billion Third-party clients Net New Money 2.1 FY05 FY09 1H12 1, , ,4 NNM o/w 9M Change in scope (2) Original Framlington FY11 9M12 Assets doubled between 2005 and 2012 on the Original Framlington perimeter Institutionalisation of the franchise allowing AXA Framlington to deliver strong NNM levels 1. Including MACS assets managed by AXA Framlington 2. Integration of other AXA IM judgmental equity teams in 2009 and in 2012 G10 AXA Investment Managers November 7, 2012

11 Prior investments are paying off (2/3) AXA Fixed Income: focusing on our US success story Assets 1 Number of investment experts In USD billion ~ 11x Investment Grade High Yield FY06 1H12 FY06 1H12 Extension of the Short-Duration know-how outside of the US Launch Date Euro Credit Short Duration 2009 Sterling Credit Short Duration 2010 Europe Short Duration High Yield 2011 Emerging Markets Short Duration Bonds 2012 Euro 1.6 billion 2 of assets raised since inception 1. Including MACS assets managed by US Fixed Income 2. Figures as at 09/30/2012 G11 AXA Investment Managers November 7, 2012

12 Prior investments are paying off (3/3) Commercial Real Estate (CRE) loans platform A great track record A pioneer amongst non-banking institutions A unique access to both the primary loan market and large secondary portfolios CRE program size Track record Capital raised in Euro billion 7x No payment default on the portfolio 7.0 since inception 2% higher average spread versus 2.5 similar risk corporate bonds 1.0 Average current Loan-to-Value (1) : FY06 FY12E 51% Euro 4 billion of capital expected to be invested by end of ambition is to develop CRE loans product offering with higher risk/return strategies 1. Loan-to-Value : outstanding loan amount divided by the value of the property offered as collateral G12 AXA Investment Managers November 7, 2012

13 Resilient and growing profits In Euro million Annual Underlying Earnings % % 95 CAGR +9% p.a FY04 FY05 FY06 FY07 FY08 FY09 FY11 Underlying Earnings o/w contribution from AXA Rosenberg 1. Excluding AXA Rosenberg coding error provision 2. Including AXA Rosenberg coding error provision. No contribution in 2010 and 2011 G13 AXA Investment Managers November 7, 2012

14 far above industry trajectory 2004 profits indexed to Underlying Profits ~ 2x FY04 FY05 FY06 FY07 FY08 FY09 FY11 AXA IM underlying earnings Western Europe profit pool 3 1. Excluding AXA Rosenberg coding error provision 2. Including AXA Rosenberg coding error provision 3. Source: McKinsey & Company AXA IM has proven a successful profitability story G14 AXA Investment Managers November 7, 2012

15 Positive dynamic on Third-party clients In % of beginning of year assets Net New Money In Basis points Management fee bps 8.2% +31% 4.6% 2.5% 0.7% 0.8% 0.0% FY11 9M12E FY09 FY11 1H12 AXA IM Third-Party 1 Worldwide Asset Management market 2 AXA IM Third-party 3 1. Excluding AXA Rosenberg and employee shareholding plan schemes 2. Sources: McKinsey & Company & AXA IM estimate 3. Excluding AXA Rosenberg. Figures provided at comparable scope. Positive flows while market growth is limited Profitable growth on Third-Party business G15 AXA Investment Managers November 7, 2012

16 Strong investment performance across the board (1/2) Assets 06/30/2012 In Euro billion Assets above benchmark 3 years Rolling outperformance 3 years /31/ % 06/30/ % 12/31/ /30/ % 0.5% Best Fund House: Larger Fixed Income in Germany, Italy, Spain, Austria Morningstar Awards /31/ /30/ % 95% 12/31/ /30/ % Equity Manager of the Year UK Pension Awards 5.3% 2011 & /31/ % 12/31/ % 15 06/30/ % 06/30/ % Figures provided are based on Global Investment Performance Standard (GIPS) composites Scope: Euro 135 billion of assets Past performance cannot be relied on as a guide to future performance or construed as a reliable indicator for future performance G16 AXA Investment Managers November 7, 2012

17 Strong investment performance across the board (2/2) Assets 06/30/2012 Performance measure 1 06/30/2012 In Euro billion 4 1 year rolling outperformance vs HFRi FoF Composite index of 4.3% 3 year rolling outperformance vs HFRi FoF Composite index of 1.6% Funds with NAV performance: 1y rolling performance of 4.0% and 3 year rolling performance of 48.4% Funds with IRR target: 94% on or above IRR target Open-ended funds: 89% of assets above benchmark (3 year and 1year rolling) Segregated accounts: 62% of assets above benchmark (3 year rolling) Closed-ended funds: 52% of positive IRR forecasts 56% of assets in upper quartile Private Equity Firm of the Year (2011 Financial Times and Mergermarket European M&A Awards) 1. Figures provided are, for benchmarkable accounts, based on representative accounts and composites where appropriate and relate to past months or years Past performance cannot be relied on as a guide to future performance or construed as a reliable indicator for future performance 2. Excluding funds under liquidation G17 AXA Investment Managers November 7, 2012