PM Capital Global Opportunities Fund Ltd. · ASX:PGF
PM Capital Global Opportunities Fund — Investor Presentation (July 2024)
33 slides from PM Capital Global Opportunities Fund's investor presentation, Jul 30, 2024
Slide 1: Placement and Share Purchase Plan Investor Presentation
For personal use only Placement and Share Purchase Plan Investor Presentation 30 July 2024
Slide 2: Disclaimer
Disclaimer The information provided in this presentation has been prepared by PM Capital Global Opportunities Fund Limited (ACN 166 064 875, ASX:PGF) (PGF or the Company) in relation to a non-underwritten placement of shares to certain wholesale and sophisticated investors (Placement) and a non-unde
Slide 3: Disclaimer (continued)
Disclaimer (continued) Past performance Past performance and pro-forma historical information in this presentation is given for illustrative purposes only and should not be relied upon and is not indicative of future performance. Historical information in this presentation relating to PM Capital and
Slide 4: Offer Overview
For personal use only Offer Overview 4 4
Slide 5: Placement & Share Purchase Plan
Placement & Share Purchase Plan1 • New capital raised will be invested in line with the existing investment strategy managed on behalf of PGF by PM Capital For personal use only Purpose and • The issue of new shares is expected to grow PGF’s assets, provide greater market benefits liquidity and allo
Slide 6: Reaffirmed & Updated Dividend Guidance
Reaffirmed & Updated Dividend Guidance For personal use only The Company today reaffirms its intention to pay a Full Year 2024 Dividend minimum 5.0c fully franked dividend for the 2H 20241 The Company today announces intention to deliver a Forward Guidance for 2025 minimum 10.0 cents of fully franke
Slide 7: Placement & Share Purchase Plan key dates
Placement & Share Purchase Plan Placement closes How to participate in the Placement: For personal use only 31 July 2024 New and existing wholesale and sophisticated investors can participate in the Placement offer by contacting their broker and bidding into the Placement. SPP opens 9 August 2024 Ho
Slide 8: About PM Capital
For personal use only About PM Capital 8 8
Slide 9: Years of building long-term wealth
25 years of building long-term wealth For personal use only 1998 19 yrs 2023 Global Companies Fund Founded by Average tenure of Became part of Paul Moore Portfolio Regal Partners Managers Australian Companies Fund 3 $3.3B 15-45 Investment Funds under Ideas per Enhanced Yield Fund strategies manageme
Slide 10: Why PM Capital
Why PM Capital For personal use only Alignment. Objective — to Focused on Valuation and in- Opportunity set. We are the first build long-term genuine market depth research. Most investors and largest wealth. anomalies. The foundation of aren’t prepared to investors in the Our willingness to A recogn
Slide 11: PM Capital Global Opportunities Fund
For personal use only PM Capital Global Opportunities Fund (ASX:PGF) 11 11
Slide 12: Global Opportunities Fund
Global Opportunities Fund (ASX: PGF) For personal use only Objective Dividend Guidance1 • PGF aims to create long term • Minimum of 10 cents per share per annum wealth through investment in a concentrated portfolio of • Fully franked (FF) = 6.46% gross (10 cents)2 undervalued global securities • Ret
Slide 13: Building long-term wealth
Building long-term wealth $450,000 ASX:PGF For personal use only $400,000 +315.1%* $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 2013 2015 2017 2019 2021 2023 Performance (net of fees) 3 Years 5 Years 7 Years Since Total return As at 30 June 2024* 1 Year p.a. p.a. p.a. inception p.a.
Slide 14: Dividend history & guidance - PGF
Dividend history & guidance - PGF Forward looking guidance Dividend Guidance1 For personal use only 8.0 7.0 • Minimum of 10 cents per share per annum 6.0 • Fully franked (FF) = 6.46% gross (10 cents)2 • Retained earnings and profit reserves as at 30 June Cents per share 5.0 2024 will enable it to ma
Slide 15: Investment Approach, Market Observations & Portfolio Highlights
For personal use only Investment Approach, Market Observations & Portfolio Highlights 15 15
Slide 16: Our objective
Our objective “ For personal use only 1987 Crash 2017 Trump Our ultimate objective as an investor is to 1990 2022 find different businesses that we believe will “CNN” Gulf War Ukraine War provide us with a satisfactory long-term 2000 return. We remind ourselves that investment Bitcoin TMT Mania retu
Slide 17: Our long-term framework
Our long-term framework For personal use only Global government bond yields at record lows Both momentum and value October 1979: Volcker declares war on inflation pricing ZERO for inflation? (US inflation running at 13% pa). “Containment of inflation is fundamental to a restoration of sound economic
Slide 18: Short-term: Post Covid
Short-term: Post Covid For personal use only INFLATION / INTEREST RATES Geopolitical Economic Confusion US Economy v China Economy Passive Concentration of Risk 18
Slide 19: Top → M7 → Fab → The One & Only
Top 10 → M7 → Fab 4 → The One & Only S&P 500 20-year performance Tech vs S&P 500 (price relative) For personal use only $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- 2004 2009 2014 2019 2024 “Magnificent Seven” market cap as % of S&P 500 = Opportunity to diversify = Opportunity to diversify Source: S
Slide 20: Global Opportunities Fund investment thesis
Global Opportunities Fund (ASX: PGF) For personal use only Investment Thesis Weighting as at 30 June 24 Stock Examples 2025 PE1 Domestic banking – Europe 27% CaixaBank 7x Commodities – Energy 15% Shell 7x Commodities – Industrial metals 15% Freeport-McMoRan Copper 20x Domestic banking – USA 12% Bank
Slide 21: European banks – our largest investment
European banks – our largest investment European banks trade on <7x forward earnings = bottom decile valuation For personal use only 6.9 5.9 Source: Autonomous, Bloomberg, Datastream. Data for European banks (including UK), Y-axis: PE ratio, X-axis: date. 21
Slide 22: Same bank, different multiples
Same bank, different multiples For personal use only Loans $925 billion $863 billion Equity $55 billion $60 billion 2026 Consensus Net Profit $9.8 billion $9.7 billion Market Value $221 billion $70 billion Earnings Multiple 22x 7x Loans, Equity and 2026 Consensus Net Profit as at 31 March 2024. Mark
Slide 23: Opportunity?
Opportunity? $200 $35 For personal use only $175 $30 $150 $25 $125 $20 $100 $15 $75 $10 -60% $5 -70% $50 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 € 250 € 35 € 225 € 30 € 200 € 25 € 175 € 150 € 20 € 125 € 100 -40% € 15 € 75 € 10 -70% € 50 €5 2019 2020 2021 2022 2023 2024 2021 2022
Slide 24: Conclusion
For personal use only Conclusion 24 24
Slide 25: Long-term: Inflation and rates are still the big issue
For personal use only % of GDP -8.0 -6.0 2.0 -16.0 -12.0 0.0 -2.0 4.0 -14.0 -10.0 -4.0 1974 1977 1980 1983 1986 1989 1992 1995 big issue… 1998 2001 2004 2007 2010 2013 2016 2019 US Primary Deficit 2022 2025 2028 2031 2034 2037 2040 2043 2046 2049 2052 % of GDP 80 160 20 60 120 140 0 40 100 180 1974
Slide 26: Conclusion
Conclusion For personal use only $1,400,000 +$1.26m Think long term, $1,200,000 focus on valuation $1,000,000 and be patient. $800,000 PM Capital Global Companies Fund $600,000 MSCI World Net Total Return Index (AUD) Excess Return $400,000 +$0.48m $200,000 $0 1998 2000 2001 2003 2005 2006 2008 2009
Slide 27: Appendix
For personal use only Appendix 27 27
Slide 28: About Regal Partners
About Regal Partners (ASX: RPL) For personal use only ASX-listed $16.5B Specialist alternatives Funds under investment manager management1 Investment specialisation ~185 Covering long/short Staff2 across equities; private markets; Australia and offshore real & natural assets; and credit & royalties
Slide 29: Risks
For personal use only Risks 29 29
Slide 30: Risks
Risks 1.1 Overview and previously disclosed risks For personal use only This section describes the key risks of investing in PGF together with the risks relating to participation or non-participation in the Placement and SPP. This is not an exhaustive list of risks and the risks set out below are no
Slide 31: Risks - continued
Risks - continued 1.2 Additional risks (cont.) For personal use only Cybersecurity and technology The Manager and its Group’s and PGF’s information and technology systems, or those of its suppliers or other counterparties, may be vulnerable to damage or interruption from computer viruses, network fa
Slide 32: International Offer Restriction
For personal use only International Offer Restriction 32 32
Slide 33: International Offer Restriction
International Offer Restriction This presentation does not constitute an offer of new shares in PGF in any jurisdiction in which it would be unlawful. In particular, this presentation may not be distributed to any person, For personal use only and the new shares may not be offered or sold, in any co
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