Flagship Investments Ltd. · ASX:FSI
Flagship Investments — Investor Presentation (September 2015)
23 slides from Flagship Investments's investor presentation, Sep 29, 2015
Slide 1: BST and FSI Year-end Update
For personal use only BST and FSI Year-end Update 2015-8-30
Slide 2: Overview
Overview For personal use only Our two listed investment companies, Barrack St Investments (BST) and Flagship Investments (FSI) offer investors an opportunity to invest in a portfolio of quality ASX listed companies managed by a disciplined and experienced investment manager whose objectives are to:
Slide 3: ECPAM Brand Promise
ECPAM Brand Promise For personal use only 1. We are buyers of quality businesses not share traders. 2. We will not diversify to cover up for poor due diligence; and 3. We will not speculate to generate excess returns for our clients.
Slide 4: A Fully Aligned Investment Team
A Fully Aligned Investment Team For personal use only Jared Pohl Andrew Dale Dr Manny Pohl Jason Pohl Daniel Broeren BCom. BIT. MBA BCom. CA B.Sc(Eng). MBA. DBA BCom. LLB BBus. BEng. M.Acc Years in Industry: 10+ Years in Industry: 15+ Years in Industry: 30+ Years in Industry: 2+ Years in industry: 1
Slide 5: Investment Strategy and process
For personal use only Investment Strategy and process
Slide 6: We're disciplined, with a focus on quality
We’re disciplined, with a focus on For personal use only quality. Our investment process is based primarily on two hypotheses about market inefficiencies: On average the market undervalues extremely high quality, capital efficient, organic growth businesses; and The market tends to over-emphasiz
Slide 7: Investment Process Summary
Investment Process Summary For personal use only A focus on quality produces alpha Our investment process is broken up into 4 main stages. Stages 1 → 3 are designed to remove those companies that do not meet our definition of quality, and focus our attention on a smaller opportunity set. Stage 4 is
Slide 8: Earnings season update
For personal use only Earnings season update
Slide 9: Portfolio Overview
Portfolio Overview For personal use only The short-term profit results and outlook statements were generally positive for our companies. The portfolios achieved significant alpha generation during reporting season which is usually the case. Online stocks performed well on the back of strong or
Slide 10: Company Reporting Overview
Company Reporting Overview For personal use only In the BST (EX50) portfolio 12 out of 17 companies reported EPS above or equal to our estimate EPS growth for the large stocks remained positive but slowed due to macro headwinds For the BST (EX50) portfolio the weighted average sales growth was
Slide 11: Portfolio Performance
Portfolio Performance For personal use only Historical Performance to 31 August 2015* Product 3m 1 year 3 Years 5 Years 10 Years FSI Portfolio -5.60 -0.27 18.07 11.81 12.01 S&P ASX All Ords -9.57 -7.16 6.37 3.30 3.85 Alpha 3.97 6.89 11.7 8.51 8.16 *All returns are gross of fees and charges. Excess r
Slide 12: Portfolio Holdings
Portfolio Holdings For personal use only Company Weight GICS Sectors Telstra 8.92 Macquarie Group 8.78 Commonwealth Bank of Australia 7.04 Westpac Banking Corp 6.05 AMP 4.91 REA Group 4.66 Energy Materials Woolworths Limited 4.66 Industrials Consumer Discretionary Catapult Sports 4.22 Consumer Stapl
Slide 13: Portfolio Performance
Portfolio Performance For personal use only Historical Portfolio Performance to 31 August 2015* Product 3m 1 year Inception (21 Aug 14) BST -0.57 6.94 8.69 S&P ASX Small Ords Acc -9.57 -7.16 -7.23 Alpha 9 14.1 15.92 *All returns are gross of fees and charges. Excess returns are calculated against th
Slide 14: Portfolio Holdings
Portfolio Holdings For personal use only Company Weight GICS Sectors REA Group 10.57 Platinum Asset Management 8.66 Trade Me Group 8.34 Domino’s Pizza 8.11 Carsales 7.77 Navitas 6.45 IPH 6.37 Catapult Sports 5.64 Industrials Consumer Discretionary Austbrokers 5.63 Health Care Financials IT Telecomms
Slide 15: FSI Historical Dividends
FSI Historical Dividends For personal use only Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividen 4.5 6.0 6.75 8.00 8.50 8.50 8.50 8.50 6.0 6.5 7.25* 7.25 d Chg % 15.4 33.3 12.5 18.5 6.25 0.0 0.0 0.0 -30.0 8.3 3.8 11.1 CPI 2.50 2.50 4.00 2.10 4.50 1.50 3.10 3.60 1.20 2.20 2.90
Slide 16: Best EX Stock Metrics
BEST EX 50 STOCK METRICS For personal use only Eps Growth (EX 50) Portfolio performance • Blue Sky +125% • Dominoes +1.7% • Sirtex medical +68% • Sirtex medical +1.6% • Dominoes +47% • Catapult +1.0%
Slide 17: Divestments from the portfolios
Divestments from the portfolios For personal use only Large Cap Stocks BHP Billiton Worley Parsons EX 50 Stocks (from both FSI and BST) Bendigo and Adelaide Bank IRESS Sky Network Television Only from BST SEEK
Slide 18: New additions to the portfolio
New additions to the portfolio For personal use only COVER-MORE Globally recognized leader in travel insurance. Market leading claims management (aided by the Medical Assistance division) leading to lowest underwriting costs. Significant penetration opportunities within existing markets Genu
Slide 19: Barrack St Investments Limited performance
From Tuesday, 1 July 2014 to Monday, 31 August 2015 Barrack St Investments Limited ‘Total Performance Over Period B.68% Annualised Performance 7.99% Latest Year Performance 6.93%
Slide 20: Future performance
For personal use only Future performance
Slide 21: Portfolio overview
Portfolio overview For personal use only • There is excess negativity priced into market and we don’t expect a further substantial deterioration from these levels. • Negative sentiment not supported by a deterioration in fundaments resulted in an improvement of the intrinsic portfolio value. • This
Slide 22: Portfolio Prospects
Portfolio Prospects For personal use only 5 YEAR IRR (Pre Franking) PE Expansion Broad Cap (FSI) +15% Broad Cap (FSI) -2% EX50 (BST) +21% EX50 (BST) -5% Dividend Yield 5 YEAR DPS Growth Broad Cap (FSI) +4% Broad Cap (FSI) +13% EX50 (BST) +3% EX50 (BST) +23%
Slide 23: Disclaimer
Disclaimer For personal use only This communication is not a securities recommendation. Any person considering action on the basis of this communication must seek out individual advice relevant to their particular circumstances and investment objectives. Past performance is no guide for future perfo
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