Annual Report 2018

Strategic Report

To deliver exceptional investment returns to clients
by attracting and retaining superior investment talent.

The company has experienced six years of consecutive growth in funds under management (FUM), cash net profit after tax (Cash NPAT) and dividends to shareholders as we deliver on our strategy of building out a diverse and truly global asset management business.

The Board and senior management annually review the opportunities and challenges facing the Group to identify strategic priorities over a three to five-year timeframe. The strategy discussion focuses on expanding our investment capabilities, developing and enhancing our distribution channels, identifying opportunities for growth and setting the key priorities for management. This provides clear direction on resource allocation and prioritises the areas that strategically matter most.

Our strategy reflects our core business proposition of global diversification, expanded investment offerings and continued investment in talent.

As part of our global diversification strategy we plan on expanding our presence in the US through growing our sales presence and broadening our product offering via new teams and ‘step-out’ strategies from our existing teams.

Talent management continues to be a key strategic focus as we seek out new investment strategies and teams, emphasising scalability and diversification of our existing portfolio. The Board regularly reviews retention and succession plans to promote sustainable growth in FUM.

Responsible Investing (RI) presents a growth opportunity for the business, driven by strong demand and interest for ESG/RI capabilities that align investor values while delivering strong financial returns. We are well positioned given our rich history in this segment in the Australian market and our focus is on how to leverage our existing capabilities and relationships in this area to expand our ESG offering on a broader scale.

We are also focused on utilising technology to create a more efficient and effective operational platform to not only drive costs down, but connect with our clients in a more meaningful way. We are tapping into cross-industry knowledge and drawing on expertise from the fin-tech sector, to explore and harness more dynamic ways of meeting our clients’ needs in 2019 and beyond. This will enable us to not only manage costs and drive efficiencies, but also enhance the client experience, and deliver competitive advantages to build FUM.

The tables below detail our strategic imperatives, our achievements during the 2018 Financial Year and our focus for the year ahead.