26 July 2010
TREASURY GROUP LIMITED
FUNDS UNDER MANAGEMENT AS AT 30 JUNE 2010
Treasury Group Limited’s (TRG) total Funds under Management (FUM) as at 30 June 2010 was $14.71 billion, representing an increase of 34.63% in FUM over the 2009/10 financial year.
During the year, TRG associated boutiques saw net inflows of $1.46 billion (before acquisitions). The net inflows were attributable to RARE Infrastructure, Trilogy Global Advisors and Orion Asset Management.
Breakdown of FUM by boutique manager
|
Manager
|
June 2008
|
June 2009
|
June 2010
|
|
Investors Mutual (IML)
|
$4,208m
|
$3,069m
|
$2,888m
|
|
Orion Asset Management (Orion)
|
$4,973m
|
$3,919m
|
$5,065m
|
|
Global Value Investors (GVI)
|
$777m
|
$556m
|
$551m
|
|
Treasury Asia Asset Management (TAAM)
|
$727m
|
$1,278m
|
$1,097m
|
|
RARE Infrastructure (RARE)
|
$790m
|
$934m
|
$2,586m
|
|
Trilogy Global Advisers (Trilogy)
|
$935m
|
$1,126m
|
$1,932m
|
|
AR Capital Management (AR Capital)
|
|
|
$85m
|
|
Aubrey Capital Management (Aubrey)
|
|
|
$217m
|
|
Celeste Funds Management (Celeste)
|
|
|
$287m
|
|
Total FUM*
|
$12,491m
|
$10,925m
|
$14,708m
|
* Total FUM includes FUM of Cannae Capital Partners (CCP) which was closed during 2009/10. CCP’s FUM for 2007/08 was $81m and for 2008/09 was $43m
Growth in assets both domestically and offshore
A key feature of the past 12 months has been the continued diversification of Treasury Group’s business by earnings, by manager, by client and by geography. This remains an important part of the business plan and will be communicated in more detail in our results release in August and at the Annual General Meeting (AGM) in November.
The chart below shows FUM across each of the boutique managers as at 30 June 2010:
Institutional and Retail client mix
During the year, the growth in assets has been weighted to institutional clients as retail investors remain cautious. We are optimistic that retail flows will improve over the medium term and TRG has focused on expanding its retail distribution offering for our boutiques. There has been growing interest in utilising TRG’s retail distribution skills. We look forward to updating shareholders on these changes in the release of our full year results in August.
Details on manager flows
o RARE Infrastructure enjoyed an outstanding year of strong growth and continues to attract retail and institutional support both domestically and globally. RARE has established itself as a global leader in the management of listed infrastructure. The growth in clients has been well diversified with a client base of the highest quality both in Australia and offshore.
o IML’s FUM was impacted during the year by fund outflows as retail investors remain cautious on the equity market outlook. The recent addition of investment resources and supporting investment leadership (as the team from Cannae have joined IML) has been extremely well received by clients, research houses and the market. Investment performance has been strong against both benchmarks and competitors. IML continues to focus on broadening its client base, gaining further exposure to model portfolios and platforms.
o Orion continues to perform well and enjoys a strong relationship with its blue chip client base. Institutional support remains strong.
o TAAM saw a fall in FUM during the period as a client allocated away from Asia following the market rally. TAAM continues to attract client interest and is focused on growing its institutional, retail and offshore business.
o GVI products saw flat funds flow over the year as investors remain cautious on the outlook for international equities. GVI has proactively marketed to both the retail and institutional market including the launch of its first unhedged global equity product. The unhedged global equity product sector attracts a significant portion of global equity flows and GVI’s new product is well positioned in this sector.
o Trilogy is a global growth manager which offers both global and emerging markets products for Australian clients. The Trilogy team are highly regarded by Australian clients and the funds continued to grow over the year. Treasury Group has the relationship with Trilogy through their strategic alliance with Orion Asset Management.
New managers
During the year Treasury Group partnered with three new businesses:
o Aubrey Capital Management – Edinburgh based global equity growth manager. Aubrey has undertaken a number of client presentations during the year as Treasury Group has introduced them to both domestic and offshore clients. We continue to focus on building their brand globally.
o AR Capital – Australian absolute return focused Australian equity long/short manager. AR Capital saw client wins post June 30 and they are attracting significant client interest. TRG, working with AR Capital, is focused on expanding client allocations in this important asset class.
o Celeste Funds Management – Australian small companies specialist. The integration and rebranding of the Celeste business has proceeded well. Researcher ratings remain high for this outstanding team and investment process, and client interest is strong. We are focused on growing their business across channels including retail, family office and institutional markets.
Each of the three new boutiques has performed well relative to their respective benchmarks as shown in the table below:
|
Manager
|
Speciality
|
Investment performance for one year to 30 June 2010 & respective benchmark return
|
|
Aubrey Capital
|
Global growth thematic
|
Fund MSCI AC World
15.74% 5.48%*
|
|
AR Capital
|
Australian long short
|
Fund RBA Official Cash rate
8.47% 3.73%
|
|
Celeste
(formerly Souls Funds Management)
|
Australian smaller companies
|
Fund S&P/ASX Small Ordinaries
Accumulation Index
32.21% 11.18%
|
*Performance in GBP
The Directors of Treasury Group wish to thank all the staff within the Group for their continued efforts.
For further information
Mr Mark Burgess Mr Joseph Ferragina
Managing Director Chief Financial Officer
+61 2 8243 0400 +61 2 8243 0400
Treasury Group’s FUM represents the total funds managed by Investors Mutual Limited (IML), Orion Asset Management Limited (Orion), Global Value Investors Limited (GVI), Treasury Asia Asset Management Limited (TAAM), RARE Infrastructure Limited (RARE), AR Capital Management, Aubrey Capital Management and Celeste Funds Management. It also includes Australian sourced funds managed by Trilogy Global Advisors, the New York based boutique asset management business, with whom Orion has a strategic alliance and for whose pooled funds Treasury Group Investment Services Limited acts as responsible entity
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