Reviewed Group Results for the year ended 31 March 2009.
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Transcript of Reviewed Group Results for the year ended 31 March 2009.
Reviewed Group Resultsfor the year ended 31 March 2009
Agenda
Introduction
Factors effecting our performance
Financial review
Review of operations
Prospects
Business of Brait
Brait’s business is the structuring, raising and management of investment funds that are typically classified Alternative Assets. The current product-set includes private equity funds, mezzanine debt funds and a range of hedge funds solutions
Additionally, Brait deploys its capital in proprietary investment programmes in these product areas
These investments are made predominantly in South Africa and its region
Investors include leading global and South African institutions
Brait’s operations are organised in two segments – Private Capital and Public Markets
Introduction
Highlights
Earnings
• Profit from South African operations up by 42% to R241.9 million (2008: 41% decrease)
• Group profit from operations decreased by 21% to R237.3 million (2008: 31% decrease)
• Headline earnings from continuing operations decreased by 34% to R166.6 million (2008: 8% decrease)
• Attributable earnings decreased by 58% to R166.6 million (2008: 16% increase)
• Return on equity 13% (2008: 30%)
Introduction
Highlights (continued)
• NAV robust at 1 436.4 cents per share, increased by 0.3% (2008: 19% increase)
• Assets under Management (fee earning) decreased by 9% from R11.6 billion to R10.5 billion (2008: 20% increase)
• Cash generated of R415.1 million (2008: R117.4 million) compared to cash applied of R279.3 million (2008: R101 million)
• Strong cash position of R430.1 million (2008: R417.7 million)
• Annual dividend distribution increased by 19% to 178.90 cents per share (2008: 13% increase)
Introduction
Factors effecting our performance
Operating Environment
• Market conditions
• Global recessionary conditions
• Economic uncertainty
Value Drivers
• Investment product performance
• Assets Under Management
• Private Equity Fund-to-Fund
cycle
• New product development
• Deployment of capital in
Proprietary Investing
Introduction
Financial Review
Key Performance Measures
Financial Review
Return on Equit
y
Attributabl
e Earnings
Assets
Under
Manage
ment
Investme
nt Product Performance
Net Asse
t Valu
e
Dividend
Return on Equity
Financial Review
Mar 05 Mar 06 Mar 07 Mar 08 Mar 090.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
31%
45%
41%
30%
13%
29%30%
29%28%
23%
25%
ROE LT ROE Long Term target
Attributable Earnings
Financial Review
Mar 05 Mar 06 Mar 07 Mar 08 Mar 09
-60.0
-10.0
40.0
90.0
140.0
190.0
240.0
290.0
340.0
390.0
440.0
-60%
-45%
-30%
-15%
0%
15%
30%
45%
211.7
300.8
338.8
393.0
166.6
238.2267.9
301.4339.1
26% 26% 30%
-51%
Profit Target line (12.5% CAGR) Actual vs Target
R’m
Assets Under Management growth
Mar 05 Mar 06 Mar-07 Mar-08 Mar 090
2
4
6
8
10
12
14
2.1
6.1
9.4
11.6
10.5
2.53.0
3.6
4.4
ZAR Target growth (20% CAGR)
Rbn
Financial Review
Investment Product Performance
Financial Review
Private Capital Brait III & IV 4.5%
AEP 1 4.2%
Mezzanine Partners Fund 17.2%
Public Markets Brait Multi-Strategy Fund 29.2%
Brait Matrix (launched 1 October 2008) 21.3%
Brait Ruby Fund 20.9%
Lauriston Absolute Fund 0.5%
Brait Absolute SA Fund -3.6%
Net Asset Value
Financial Review
Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 -
400.0
800.0
1,200.0
1,600.0
2,000.0
2,400.0
2,800.0
3,200.0
0%
40%
80%
120%
160%
200%
240%
757.5
1,141.9
1,606.9
2,024.8
2,222.8
39.4
166.1
330.8
506.0
700.1
5%
59%
124%
182%
210%
NAV per year Cumulative Dividends paid Cumulative growth in NAV (base Mar 04)
R’m
Dividends per share (excluding special dividends)
Financial Review
Mar 05 Mar-06 Mar-07 Mar 08 Mar-090
40
80
120
160
200
89.89
119.32
133.34
150.344323444835
178.899613066278
Cen
ts
Abridged group income statement for the year ended 31 March
Financial Review
Supplementary US$ information
Reviewed Audited
2008 2009 2009 2008
US$m US$m Rm Rm
38.3 37.7 Revenue 334.1 272.6
34.5 18.6 Other income 164.4 245.9
72.8 56.3 Total revenue and other income 498.5 518.5
(31.0) (30.8) Operating expenses (272.8) (220.8)
0.6 1.3 Income from associates 11.6 4.4
42.4 26.8 Profit from operations 237.3 302.1
(7.5) (6.7) Finance costs (59.2) (53.8)
22.8 4.4 Capital items 39.1 162.9
57.7 24.5 Profit before taxation 217.2 411.2
(4.7) (5.7) Taxation (50.6) (33.3)
53.0 18.8 Profit from continuing operations 166.6 377.9
2.1 - Profit from discontinued operations - 15.1
55.1 18.8 Profit attributable to equity holders 166.6 393.0
Geographic analysis of income from continuing operations
Financial Review
GEOGRAPHICAL ANALYSIS 31-Mar-09 31-Mar-08
Segment income from continuing operations Rm Rm
Revenue 334.1 272.6
- International 44.0 56.3
- South Africa 290.1 216.3
Other income 164.4 245.9
- International (19.3) 111.6
- South Africa 183.70 134.3
Total segment income from continuing operations 498.5 518.5
Net1 and Pangea reduced international profits. Solid performance from South African operations and underlying investee companies.
Net Contributions
Financial Review
31-Mar-09 31-Mar-08
Rm Rm
Segment result from continuing operations 237.3 302.1
- International (4.6) 131.6
- South Africa
241.9 170.5
Net contributions from international operations negative due to global equities market. Net1’s actual operating results showed 20% growth.
Brait’s effective investment in underlying portfolio companies
Financial Review
Other 10%
Pan African Resource 1%Kelly Group
3%
Pangea Di-amond
Fields 3%
Medu 9%Pepkor 17%
DGB 10%
Consol 8%
Primedia 8%
Net 1 16%
Natures Choice 1%AEP 2%
Sponsored Funds 5%Mezz 3%
Unallocated Participation
4%
March 08: R1,459m
Other 9%Medu 9%
Pepkor 21%
DGB 12%Consol 8%
Primedia 6%
Net 1 10%
Pangea Diamond Fields 2%
Private Equity Fund of Funds
1%Sponsored Funds
6%
Mezz 3%
Premier Foods Limited 3%Capital Africa Steel, 2%Toehold 1%
Kelly 4%Wilderness 3%
March 09: R1,668m
Group Income Statement
Financial Review
Brait Group Income Statement Year ended 31-Mar-09 31-Mar-08 Variance %
Notes Rm Rm RmFund management income 1 283.2 216.5 66.7 31%
Fund management expenses: 2 (231.9) (207.9) (24.0) 12%
Profit from fund management operations 51.3 8.6 42.7 498%
Investment income 3 226.9 318.8 (91.9) -29%
Investment expenses 4 (40.9) (10.2) (30.7) 301%
Profit from investment operations 186.0 308.6 (122.6) -40%
Group Profit from Operations 237.3 317.2 (79.9) -25%
Finance costs 5 (59.2) (53.8) (5.4) 10%Capital Items 6 39.1 162.9 (123.8) -76%
Profit before taxation 217.2 426.3 (209.1) -49%
Taxation 7 (50.6) (33.3) (17.3) 52%
Profit for the year/attributable to equity holders 166.6 393.0 (226.4) -58%
Fund Management Income (Note 1):
Financial Review
31-Mar-09 31-Mar-08 Variance %
Rm Rm Rm
Management fees 166.2
185.7
(19.5) -11%
Fee income 112.9
23.6
89.3 379%
Interest received
4.1
9.9
(5.8) -58%
Total fund management income
283.2
219.2 64.0 29%
Performance fees from CMT boosted fee income
Negatively impacted by loss of net R2.5 billion AUM from Brait Absolute.
Fund Management Income
Financial ReviewPri-vate Cap-ital ; 121.2232
; 43%
Public
Markets
; 157.896200000001
; 56%
Treasury Capital; 4.1309; 1%
Mar-09
Private Capital ;
100.2; 46%
Public Markets;
89.4; 41%
Treasury Capital;
29.6; 14%
Mar-08
Fund Management Expenses (Note 2):
Financial Review
31-Mar-09 31-Mar-08 Variance % Rm Rm Rm
Fund Management Expenses:
Advertising, marketing costs & foundation costs
(9.9)
(8.9)
(1.1) 12%
Audit fees & other professional fees (17.6)
(19.1)
1.5 -8%
Communication and computer costs (12.9)
(7.4)
(5.5) 75%
Depreciation
(2.0)
(1.6)
(.4) 24%
Listing and related costs
(3.4)
(3.0)
(.4) 12%
Rent, travel and insurance costs (16.5)
(15.3)
(1.2) 8%
Salaries and related costs
(163.1)
(146.5)
(16.5) 11%
Other costs
(6.5)
(8.7)
2.2 -25%
Total Fund Management Expenses:
(231.9)
(210.6)
(21.3) 10%
Total increase of R21.3 million (10%) is in line with inflation. Communication and computer costs increased due to risk and operations management system in hedge fund business
Investment Income (Note 3):
Financial Review
31-Mar-09 31-Mar-08 Variance %
Rm Rm Rm
Investment appreciation : unrealised 162.2
88.6
73.6 83%
: realised
2.4
154.5
(152.1) -98%
Dividend Income
9.4
19.0
(9.6) -51%
Income from associate
11.6
4.4
7.2 164%
Interest received
41.3
52.4
(11.1) -21%
Investment income
226.9
318.9
(92.0) -29%
Investment Income
Financial Review
Pri-vate Capi-tal ;
105.4; 46%
Public Markets; 26.3; 12%
Treasury Capi-tal;
95.2; 42%
Mar-09
Private Capital ; 288.4; 90%
Public Markets; 8.3; 3%
Treasury Capital; 22.2; 7%
Mar-08
Investment Expenses (Note 4):
Financial Review
31-Mar-09 31-Mar-08 Variance %
Rm Rm Rm
Fund related expenses (27.6)
(14.7)
(12.9) 88%
Loan impairments and other expenses (13.3)
4.5
(17.8) -396%
Total investing activities expenses (40.9) (10.2) (30.7) 301%
Brait’s share of Brait IV Debt Facility Trust ‘s interest paid
Relates to loan impairment provision on investee companies.
Finance Costs (Note 5)
Financial Review
31 March2009
Rm
31 March2008
RmVariance
Rm%
change
Dividends on preference shares¹ 54.2 48.9 5.3 11%
Interest on shareholder’s loan² 0.5 2.5 (2.0) (80)%
Interest on bank overdraft 4.5 2.4 2.1 88%
Total 59.2 53.8 5.4 10%
Overall increase in line with movement in Prime rate of interest as Preference Shares dividend is 78% of Prime.
Capital Items (note 6)Capital items comprise:
Financial Review
2009Rm
2008Rm
Gain on realisation of investment in subsidiary
Realisation of Brait’s interest in Bayport, effective 1 April 2007. - 124.2
Net currency hedge loss
Profit on restructure of the Group’s hedging instruments
(79.5)
169.8
43.5
-
Fair value adjustment of financial liability (16.3) (12.7)
Fair value adjustment of financial asset (34.9) 7.9
Total capital items 39.1 162.9
Cash Proceed of R299m reduced by R88 cost for new hedge per cash flow.
Write-down of 32.3% in Sitogo due to lower profit forecasts for 2009 and 2010.
Taxation (note 7)
Financial Review
31-Mar-09 31-Mar-08 Variance % Rm Rm Rm
Deferred tax provision (31.6)
(28.4)
(3.2) 11%
Current tax expense (15.4)
(2.9)
(12.5) 430%
Prior year over provision (.1)
-
(.1) -
Secondary tax on companies (STC) (3.5)
(2.0)
(1.5) 75%
Taxation (50.6)
(33.3)
(17.3) 52%
Group effective up from 8% to 23% due to current tax paying position and international losses with no deferred tax credit.
Dividend Policy
The Board maintains and is committed to the view that dividend distributions are an important part of longer-term shareowners wealth creation
Dividend Policy:• Pay annual dividends equaling 12.5% of opening NAV• Arrived at to be 50% of targeted ROE of 25%• Provided that solvency is not impaired and the ability to finance its business plan is maintained
Reasons for Policy:• provide more consistent annual dividend distributions• to link the distribution to NAV which is a more stable measure of long-term value generations
• Key measures for Brait are Investment product performance, NAV and Cash as earnings tend to be cyclical
Financial Review
Allocation of Capital
Financial Review
417.7
367.6
1,170.9
90.3
198.0139.2
Mar 08: Rm = 2383.6
Treasury Cash and Capital Other Private Equity Funds
Quoted investments Unquoted investments Public Market Funds
430.0
181.0
1,132.6
107.3
413.7 145.5
Mar-09 Rm = 2,410.0
Treasury Cash and Capital Other Private Equity Funds Quoted investmentsUnquoted investments Public Market Funds
Cash flow from operating and investing activities
Financial Review
Dividends receivedR9.4m(2%)
In-terest re-ceived
R43.7m(10%)
Work-ing capitalR10.4m(3%)
Realisation of currency hedge
R299.4m(72%)
Operating itemsR52.2m(13%)
Cash Generated R415.1m
Fi-nanc
e cost
s; 59200000
; 21%
Taxation;
17100000; 6%
Investing activities; 113500000; 41%
Premium on
cur-renc
y hedge
88.132%
Cash Applied R277.9m
Review of OperationsPrivate Capital
Private Capital
Review of Operations
FundsProprietary
InvestingSponsored
FundsMezzanine
DebtFund-of-Funds
Management of Private Equity
Funds
Deployment of balance sheet
capital of R50m or less per transaction
Sponsorship of Niched
Investment Firms
JV between OMIGSA,
Management and Brait in
management of Mezzanine Debt
Management of Private Equity Fund-of-Funds
• Brait III• Brait IV
• Medu Capital• Molash
Capital
• MP I• MP II
• AEP I
Private Capital
Highlights
• Strong operational performance from all large investment exposures especially Pepkor, Net 1,Consol and DGB. Average EBITDA growth > 20%
• Solid investment performance in Brait III and IV
• Finalisation of two substantial portfolio investments
• Mezzanine Partners I achieved full investment, and 1st investment in Mezzanine Partners II
• AEP I became fully committed
Review of Operations
Return on Capital Employed
Review of Operations - Private Capital
Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar 090%
10%
20%
30%
40%
50%
60%
70%
22.9%
59.4%
42.1%
30.9%
20.4%
4.9%
24%
38%
33%
29%24%
18%
25%
ROE LT ROE Long Term target
Profit from Operations
Review of Operations - Private Capital
Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar 09
-70
-20
30
80
130
180
230
280
-70%
-20%
30%
80%
130%
180%
230%
280%
81.6
242.5 250.2 248.5
240.7
75.9 91.8
103.3116.2
130.7 147.0
164%
142%
114%
84%
-48%
Net profit BT Target line (12.5% CAGR) Actual vs Target
Assets under Management
Review of Operations - Private Capital
Mar 05 Mar 06 Mar-07 Mar-08 Mar 090
1
2
3
4
5
6
7
8
2.1
3.4
5.8
6.46.7
2.5
3.0
3.6
4.3
ZAR Target growth (20% CAGR)
Rbn
Fair value of fund portfolio investments (converted at year-end exchange rates)
Review of Operations - Private Capital
Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Brait II Brait III Brait IV Braitec Mezz Sponsored Funds Private Equity Fund of Funds
1,572
3,550
4,1874,035
7,439
8,566
Capital Invested
Review of Operations - Private Capital
Mar 08 Mar 09
-200.0
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
1800.0
924.7
1,122.1
534.5
533.0
-20.3 -26.9
Working capital Proprietary investments Direct investment in Funds and capital participation
1,628.3
1,438.9
R’m
Sectoral Analysis
Review of Operations - Private Capital
Manufacturing21%
Other18%
Mineral Resource
Explo-ration7%
Entertainment, leisure, tourism
2%
Black Economic Empowerment9%
Services20%
Informa-tion
technol-ogy16%
Media8%
March 08: R1,459m
Services23%
Black Eco-nomic Em-powerment
9%Information Technology
10%
Entertainment, leisure, tourism
3%
Manufacturing25%
Food4%
Media6%
Mineral Re-source Explo-
ration4%
Other17%
March 09: R1,668m
Brait effective investment in underlying portfolio
Review of Operations - Private Capital
Other 10%
Pan African Resource 1%
Kelly Group 3%
Pangea Di-amond
Fields 3%
Medu 9%
Pepkor 17%DGB 10%
Consol 8%
Primedia 8%
Net 1 16%Natures
Choice 1%AEP 2%
Sponsored Funds 5%Mezz 3%Unallocated Participation
4%
March 08: R1,459m
Other 9%Medu 9%
Pepkor 21%
DGB 12%Consol 8%
Primedia 6%
Net 1 10%
Pangea Diamond Fields 2%
Private Equity Fund of Funds
1%
Sponsored Funds 6%
Mezz 3%
Premier Foods Limited 3%Capital Africa Steel, 2%Toehold 1%
Kelly 4%Wilderness 3%
March 09: R1,668m
Funds
Review of Operations - Private Capital
Business Model Value Drivers
Investors
3rd party capital invested
Brait capital invested
Team capital invested
Manager
Managed:
• Over 10 years• Illiquid• Discretionary
Economic effect on Brait:
• Up to 2% management fee p.a.• Potential 10% capital participation• >30% IRR on invested capital
Diversified across various industriesin corporate SA
Investees
Over 5 years Over 3 years-20.0%
0.0%
20.0%
40.0%
60.0% 44.2%
24.9%
IRR - Brait III
IRR (Rand)
Investment Performance
Fund-of-Fund Cycle
Brait IV more than 82% invested
Market Conditions
• Improved buying environment• More challenging capital raising
YE 2005 YE 2006 YE 2007 YE 2008 YE 2009
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2,074
3,434
5,7596,223 6,187
Fee earning funds under management - 31 March 2009
Rm
Proprietary Investing
Review of Operations - Private Capital
Business Model Value Drivers
•Deployment of balance sheet capital of
R50m or less per transaction.
•Economics derived from investment gains.
Over 5 years Over 3 years
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
39.5%
30.6%
IRR - Brait's investment in proprietary investments
IRR (Rand)
Investment Returns
Deployment Rate
Market Conditions
• Last investment made 3 years ago, but improved prospects
• Improved buying environment• Increased competition
Sponsored Funds
Review of Operations - Private Capital
Business Model Value Drivers
•Sponsorship of niched investment managers,
in return for interests in Manco and funds
Investment Performance
AUM
Relationships
• Strong performance from Medu Capital (Medu I IRR – 60%+)
• Weak performance from Molash R34m write-down
• Molash I closed at R170m
• Reduced plan for new relationships
Mezzanine Debt
Review of Operations - Private Capital
Business Model Value Drivers
• Joint Venture between OMIGSA, Management and
Brait in Mezzanine Partners.
• Economics derived from share in Manco and
funds.
Investment Performance
AUM
Market Conditions
• On-track for JIBAR + 9% target (currently tracking 23% IRR)
• MP I fully invested. MP II achieves a first closing of R400m
• Benefits significantly from sub-prime fallout and tightening credit conditions.
Fund-of-Funds
Review of Operations - Private Capital
Business Model Value Drivers
•Investment Management of unlisted fund-of-funds.
•Invests in Brait sponsored and third party funds.
•Economics derived from management fees and performance fees.
Funds Under Management
Investment Performance
Market Conditions
• Final close achieved at R630m
• Rapid deployment of commitments.
• Investment performance too early to determine, but prospective promising
• Market conditions challenging
Strategic Initiatives
Launch Brait V
Drive value in existing portfolio
Invest remainder of Brait IV
Invest R50m p.a. in each of Proprietary Investing and Sponsored Funds
Review of Operations - Private Capital
Review of OperationsPublic Markets
Brief overview of the Brait Public Markets Model
Review of Operations - Public Markets
3rd party capital
invested
Brait capital invested
Team capital invested
Management of Funds:• Open ended• Monthly liquidity• Discretionary
Economic effect on Brait:• Management Fee: up to
2% p.a.• Performance Fee:
between 10% & 30% of out performance
• Investment gains on capital invested
Diversified across asset classes according to investment strategy:• Listed Equities• Bond and Credit Markets• Exchange Traded & OTC
Derivatives• Hedge Funds
Investors Manager Investments
Public Markets
Highlights
• Revenue and profit from operations have significantly increased
• Strong investment performance from CMT products - Brait Multi-Strategy, Brait Matrix Fund & Brait Ruby Fund
• Improved performance from Brait Absolute, especially in the last half of the year, showing the ability to preserve capital; but still below target
• Launch of Brait Matrix Fixed Income Fund with R170m on 1 October 2008
• Assets under management have decreased
• Strengthening of the Multi-Management investment team
Review of Operations
Multi Management
Review of Operations - Public Markets
Business Model Value Drivers
• Use Brait capital to seed products
• Provide institutional investors with risk managed
hedge fund solutions
• Range of fund-of-hedge fund products
• Accessing scarce sources of alpha
• Constructed to deliver targeted return
• Revenue generated from management and
performance fees
Investment Performance
Assets under Management
Market Conditions
• Performance drives capital flows
• Behind target but there has been an improvement over the last quarter – 3/16 in latest AF Fund of Hedge Funds Survey
• R3.1bn at 31 March 2009• 28% decrease from 31 March
2008
• Significant declines, volatility and uncertainty – good for funds of hedge funds
Multi Management
Review of Operations - Public Markets
Brait Absolute South Africa Fund•Generate Cash plus 4% p.a. over rolling
three year periods•Limit volatility to less than 10% p.a.•Compound capital across all market
conditions
Investment PhilosophySkilful diversification across multiple asset
classes, strategies, stylesIdentify talented managers
Managers must be complimentary
Low correlations, offer downside
protection
Good returns relative to riskEnsure appropriate risk management
infrastructure
-5%
0%
5%
10%
15%
70
100
130
160
190
Monthly Returns
Brait Absolute SA
ALBI
Mo
nth
ly R
etu
rns
Cu
mu
lativ
e R
etu
rns
`
Mar-04Sep-04
Mar-05Sep-05
Mar-06Sep-06
Mar-07Sep-07
Mar-08Sep-08
Mar-09
100
150
200
250
300
350
Brait Absolute
Cash
All Bond Index
All Share Index
Capital Management
Review of Operations - Public Markets
Business Model Value Drivers
• Integrated team of six experienced investment
professionals, who:
• collaborate to manage multi strategy
product
• operate independently to manage single
strategy funds, specific to their expertise
• leverage a common operational platform
• Revenue generated from management and
performance fees and investment returns
Investment Performance
• Strong investment performance esp from fixed interest disciplines
Assets under Management
• R1.4bn at 31 March 2009• No change from 31 March 2008
Market Conditions
Premium Fees • Management: 1% p.a.• Performance: 10 – 30% of
outperformance
• Significant declines and volatility
Return on Capital Employed
Review of Operations - Public Markets
0 0 0 0 00.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
6% 7%
33%
19%
69%
6%
15%16%
27%25%
ROCE LT ROE Long Term target
Profit from Operations
Review of Operations - Public Markets
Mar 05 Mar 06 Mar 07 Mar 08 Mar 090.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0%
100%
200%
300%
400%
500%
600%
700%
7.30 8.30
43.30
27.10
86.60
8.21 9.24 10.39 11.69
1%
369%
161%
641%
Profit Target line (12.5% CAGR) Actual vs Target
Assets Under Management
Review of Operations - Public Markets
Mar 05 Mar 06 Mar 07 Mar 08 Mar 090
1
2
3
4
5
6
0.3
2.7
3.9
5.3
3.3
0.4 0.4
0.5 0.6
AUM Target growth
Rbn
Funds
Review of Operations - Public Markets
Fund Name AUM 31 Mar 09R’millions
Investment Strategy Target Return Open for investment
Brait Absolute SA Fund
3,115 Multi Strategy Fund of Hedge Fund
Cash + 4% Yes
Brait Multi Strategy Fund
885 Multi Strategy Fund Cash + 8% Yes
Brait Cobalt Fund 290 Long/Short Equity Fund
Cash + 6% Yes
Brait Matrix Fixed Income Fund
137 Fixed Income Fund Cash + 8% Yes
Brait Ruby Fund 21 Equity Short Biased Fund
Cash + 6% Yes
Strategic Initiatives
Enhance investment performance
Retain assets in Brait Absolute
Raise assets behind performing products
Expand product range selectively
Expand investor universe
Review of Operations - Public Markets
Prospects
Challenge & Opportunity
Brait remains confident of its strategy and market position yet cautions that meeting of targets next year is unlikely.
Tougher to find returns
Reduced fair values of assets
Tougher to raise capital
Prospects
Investors seeking structured and hedge fund solutions
Availability of private equity investments at attractive valuations