Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Shareholder Meeting (October 2021)
33 slides from Mirrabooka Investments's shareholder meeting presentation, Oct 5, 2021
Slide 1: 2021 Annual General Meeting Presentation
5 October 2021 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Mirrabooka Investments Limited 2021 Annual General Meeting Presentation Dear Sir / Madam The following presentation w
Slide 2: Annual General Meeting 2021 - Presentation
For personal use only Annual General Meeting 2021 - Presentation
Slide 3: Disclaimer
Disclaimer For personal use only Mirrabooka Investments Limited and Australian Investment Company Services Limited (AFSL: 303209), its related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in
Slide 4: Objectives
Objectives For personal use only Annual General Meeting 2021 16
Slide 5: Our approach
Our approach For personal use only Annual General Meeting 2021 17
Slide 6: ESG is integrated into our investment framework
ESG is integrated into our investment framework For personal use only Approach to Environmental, Social and Governance (ESG) factors o Assessment of ESG risk factors is an important part of our investment process as the sustainability of a business is a key input in our assessment of a company. o As
Slide 7: Board Members
Board Members Our Board has significant experience as Executives, Directors and investors in ASX listed emerging For personal use only companies. Terrence A Campbell AO Mark Freeman Ian A Campbell Chairman and Independent Managing Director Independent Non-Executive Non-Executive Director Director Ja
Slide 8: Investment Team
Investment Team – over 100 years of ASX investing experience For personal use only Kieran Kennedy Stuart Low Nga Lucas Portfolio Manager Investment Analyst Investment Analyst David Grace Olga Kosciuczyk Jaye Guy Portfolio Manager Investment Analyst Investment Analyst Nicky Sun Brett McNeill Jeremy M
Slide 9: Result Summary
For personal use only Result Summary Annual General Meeting 2021
Slide 10: Result Summary
Result Summary For personal use only *Assumes an investor can take full advantage of franking credits Annual General Meeting 2021 22
Slide 11: Share price premium/(discount) to net asset backing
Share price premium/(discount) to net asset backing For personal use only Annual General Meeting 2021 23
Slide 12: Portfolio attributes and performance
For personal use only Portfolio attributes and performance Annual General Meeting 2021
Slide 13: Portfolio Performance to August 2021
Portfolio Performance to 31 August 2021 For personal use only Annual General Meeting 2021 25
Slide 14: Key benefits
Key benefits For personal use only The key unique benefits of Mirrabooka are the combination of: Consistency of long term returns. Alignment of interests Comparatively low management cost No performance fees Tax effectiveness from a low turnover, long term, investment approach. Annual General Me
Slide 15: Consistency of long term returns
Consistency of long term returns Mirrabooka 10 Year Portfolio Return For personal use only Figures assume an investor can take full advantage of franking credits distributed. Note: Mirrabooka’s net asset per share growth plus dividend series is calculated after management fees, income tax and capita
Slide 16: Consistency of long term returns continued
Consistency of long term returns continued Mirrabooka 10 Year Performance History – Benchmark and Outperformance Contribution For personal use only 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annual General Meeting 2021 28
Slide 17: Consistency of long term returns continued
Consistency of long term returns continued Over Mirrabooka’s 22 year history… For personal use only Mid-small cap benchmark doubled in value (7.4% p.a.) On average, a 10-year investment in: MIR’s portfolio (NTA) more than tripled in value (12.5% p.a.) Would be worth approximately $28,000 Mid-small c
Slide 18: Alignment of interests
Alignment of interests Shareholders fully enjoy the cost efficiencies arising from our long term investment gains. For personal use only Mirrabooka's Management Expense Ratio (MER) history Shareholders currently incur 50c of cost pa for every $100 invested Annual General Meeting 2021 30
Slide 19: Alignment of interests continued
Alignment of interests continued For personal use only Mirrabooka is not run by a funds management business charging performance fees, which can be as high as 20% of outperformance. The benefits of portfolio performance are instead retained within the portfolio for the future compound return benefit
Slide 20: Tax effectiveness
Tax effectiveness We are more ‘long term’ in our approach than most institutional investors – period of ownership of top 20 For personal use only stocks. 2004 2008 2012 2016 2020 Note: James Hardie and NEXTDC have been held in prior periods. Annual General Meeting 2021 32
Slide 21: Tax effectiveness continued
Tax effectiveness continued We manage the portfolio with a tax inclusive mindset - crystallising gains creates a tax drag on performance For personal use only Mirrabooka Investment Portfolio Unrealised Gains/Losses 40 35 30 Total unrealised gain: $338 million 25 (31 August) 20 $million 15 10 5 0 -5
Slide 22: Current State of our Portfolio
For personal use only Current State of our Portfolio Contributors to strong recent performance Top 20 holdings Recent material transactions Recent portfolio additions Annual General Meeting 2021
Slide 23: Contributors to strong recent performance
Contributors to strong recent performance Our significant 1-year outperformance was the result of very consistent, and in many cases very strong, For personal use only share price performance from our larger holdings. MIR 1 year return by portfolio weighting MIR 1 year return by number of stocks 20%
Slide 24: Contributors to strong recent performance continued
Contributors to strong recent performance continued For personal use only 11 stocks representing 30% of the Mirrabooka portfolio returned more than 90% in FY21. Annual General Meeting 2021 36
Slide 25: Contributors to strong recent performance continued
Contributors to strong recent performance continued For personal use only Cost Value Long-term Perspective Recent results providing confidence that Mainfreight's $6.9m $45.3m culture led service differentiation is gaining traction in much larger US and European markets. Very large opportunity in glo
Slide 26: Portfolio - Top holdings at August 2021
Portfolio - Top 20 holdings at 31 August 2021 (excluding cash) Diversification of the Portfolio Top 10 Holdings For personal use only – 59 Holdings in Total Rank Company % of Portfolio 1 Mainfreight 6.7% 2 Macquarie Telecom Group 5.6% 3 ARB Corporation 5.4% 4 IRESS 4.0% Pinnacle Investment Managemen
Slide 27: Portfolio - Top holdings at August 2021 continued
Portfolio - Top 20 holdings at 31 August 2021 (excluding cash) continued Diversification of the Portfolio Next 10 Holdings For personal use only – 59 Holdings in Total Rank Company % of Portfolio 11 AUB Group 2.5% 12 NEXTDC* 2.3% 13 Netwealth Group 2.3% 14 Temple & Webster Group 2.3% 15 FINEOS Corpo
Slide 28: Recent material transactions
Recent material transactions Exited Trimmed Investments For personal use only Annual General Meeting 2021 40
Slide 29: Recent portfolio additions
Recent portfolio additions For personal use only Emerging software Globally recognised infection Branded Tasmanian spirits business producing technology prevention business with producer developing a strong for the hospital and pathology a leading position in ultrasound reputation in the whiskey ind
Slide 30: Portfolio outlook
For personal use only Portfolio outlook Annual General Meeting 2021
Slide 31: Portfolio outlook
Portfolio outlook For personal use only Equity markets Portfolio Valuations are elevated but are Strong recent performance of many Short term supported by: large holdings may weigh on near o ample liquidity and term portfolio returns, our focus (1-2 years) o a lack of attractive investments remains
Slide 32: Concluding remarks
For personal use only Concluding remarks Annual General Meeting 2021
Slide 33: Mirrabooka Investments Limited
For personal use only x * ¢. MIRRABOOKA Investments Limited
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