Regal Partners Global Investments Limited · ASX:RG1
Regal Partners Global Investments — VGI Partners Global Investments — Shareholder Meeting (November 2019)
26 slides from Regal Partners Global Investments's shareholder meeting presentation, Nov 18, 2019
Slide 1: ASX announcement: Chairman's AGM Address and Portfolio Manager's Presentation
VGI Partners Global Investments Limited ABN 91 619 660 721 39 Phillip Street Sydney NSW 2000 Australia T. +61 2 9237 8923 www.vgipartnersglobal.com 18 November 2019 ASX Market Announcements ASX Limited Level 6, Exchange Centre 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT VGI Partners Glo
Slide 2: VGI Partners Global Investments Limited FY19 Annual General Meeting
VGI Partners Global Investments Limited ABN 91 619 660 721 39 Phillip Street Sydney NSW 2000 Australia T. +61 2 9237 8923 www.vgipartnersglobal.com VGI Partners Global Investments Limited FY19 Annual General Meeting Monday 18 November 2019 - 10:30am On behalf of the Board of VG1, and VGI Partners –
Slide 3: FY19 results and equity raising
For FY19, the after-tax profit was $50.6 million. This was VG1’s first full financial year since the Company’s listing in September 2017. The Company’s after-tax net tangible assets (NTA) per share grew 10.2% during the year to be $2.39 at 30 June. This equates to 20.3% growth since inception, or 11
Slide 4: Benefit of the VGI Partners IPO to VG1 shareholders
The very positive benefit that the VGI Partners IPO delivered to VG1 shareholders who took up their entitlements is set out on this slide – which shows the current position of a shareholder who originally invested $100,000 in the VG1 IPO in September 2017. You will see in the left hand column that o
Slide 5: VG1 share price and discount to NTA
Turning to VG1’s share price, it is notable that VG1 has historically traded at a premium to its NTA, but this has recently moved to a discount. As the chart shows, this shift occurred around the time of the VG1 equity raising this year. We also understand the launch of VGI Partners’ Asian fund (VG8
Slide 6: Initiatives to address the discount to NTA
Initiatives that we have undertaken to date with the objective of maximizing ongoing secondary market demand for VG1 – which we believe to be the best way of addressing the discount – include: 1) Closing VGI Partners’ global strategy to new investment outside of VG1. This means that the only way to
Slide 7: Introduction of dividend program
Finally – and this has not previously been announced - we will be introducing a dividend program consistent with our dividend policy. You would be aware that, to date, VG1 has not paid a dividend, and delivering a high dividend is not a primary objective of the Investment Strategy. However, the VG1
Slide 8: VGI Partners Global Investments Limited (ASX:VG1) FY19 Annual General Meeting
VGI Partners Global Investments Limited (ASX:VG1) FY19 Annual General Meeting – 18 November 2019
Slide 9: Welcome
Welcome Mr David Jones Chairman
Slide 10: Agenda
Agenda Chairman’s Address Portfolio Manager’s Presentation Formal Business • Financial Statements and Reports of the Directors and Auditors • Resolution 1: Adoption of the FY19 Remuneration Report • Resolution 2: Re‐election of Director – Mr. Robert Luciano • Resolution 3: Re‐election of Director –
Slide 11: Chairman's Address
Chairman’s Address Mr David Jones
Slide 12: VG1 FY19 Business Highlights
VG1 FY19 Business Highlights Year to 30 June 2019 • $50.6 million profit after-tax; 18c earnings per share Year to 30 June ($ million) FY18 FY19 • Post-tax NTA grew 10.2% to $2.39 over the year to Income June 2019 (after fees) Net realised and unrealised gains on investments 58.9 86.1 • $300 million
Slide 13: VG1 IPO Investor Returns
Illustration VG1 IPO Investor Returns Investment outlay Current market value1 Current NTA value2 1 $100,000 VG1 IPO $113,500 $121,000 (50,000 shares at $2.00) 2 $36,336 VG1 Entitlement Offer $35,249 $37,578 (15,528 shares at $2.34) 3 $9,086 VGI Partners IPO take-up $24,383 $24,383 (1,652 shares at $
Slide 14: VG1 Share Price vs NTA Performance
VG1 Share Price vs NTA Performance ($ per Share) • Since inception, VG1’s share price has typically traded at a premium to NTA • Recent equity raising has caused the share price to trade at a discount $2.70 Average premium 5% $2.60 $2.50 $2.40 $2.30 $2.20 $2.10 $2.00 Equity raising ex-date: VG8 anno
Slide 15: Initiatives to Eliminate the Discount to NTA
Initiatives to Eliminate the Discount to NTA 1. Closing VGI Partners’ global strategy to new investment outside of VG1 2. Committing not to raise additional capital for 3 years (May 2022)1 3. Performance fee reinvestment mechanism 4. VGI Partners purchasing VG1 shares on-market 5. Weekly NTA stateme
Slide 16: Investment and Operations Team
Investment and Operations Team • Investment team led by Robert Luciano and Douglas Tynan (Sydney) and Robert Poiner and Thomas Davies (New York) • Total Investment team of fifteen professionals across Sydney, New York and Tokyo • Total Operations team of thirteen professionals across Sydney, New Yor
Slide 17: Portfolio Manager's Presentation
Portfolio Manager’s Presentation Mr Robert Luciano
Slide 18: VGI Partners (The Manager) Overview
VGI Partners (The Manager) Overview • Specialist manager focusing on global equities. Long Individually Managed VGI Managed Funds biased, concentrated strategy with selective shorting. Accounts (IMAs) Minimal to no leverage utilised • 28 staff in Sydney, New York and Tokyo Unlisted Listed Unlisted •
Slide 19: Philosophy and Alignment of Interests
VGI Partners (The Manager) Philosophy and Alignment of Interests Alignment of Interests • The Manager paid for VG1’s upfront listing costs, plus VG1’s transaction costs in the recent VG1 equity raising Capital Preservation Do not lose money • All VG1 operating costs (where permitted) paid by the Man
Slide 20: VGI Partners Master Fund Long-Term Performance Objectives Achieved
VGI Partners Master Fund Long-Term Performance Objectives Achieved Annual Compound Returns (% p.a.) VGI Partners Performance Objective Achieved To 15 November 2019 Master Fund Performance (10-15% p.a.) 1 year 12.6% 2 year rolling (p.a.) 12.5% 3 year rolling (p.a.) 12.8% 4 year rolling (p.a.) 1
Slide 21: Capital Preservation Performance in Up/Down Months
VGI Partners Master Fund: Capital Preservation Performance in Up/Down Months Compound Annual Return (Net) Performance in Performance in 16% "Up Market" Months "Down Market" Months 15% 14.5% 2.8% 14% 3% 2.3% 13% 2% 12% 11.4% 1% 0% 11% (1%) 10% (0.7%) (2%) 9% (3%) (2.3%) 8% Average VGI Average Average
Slide 22: VG1 Net Investment Performance
VG1 Net Investment Performance VG1 Share Price and Post-Tax NTA ($ per share) to 15 November 2019 $2.60 • Post-tax NTA of $2.42 at 15 November 2019 $2.50 • An increase of 22.1% since inception, or 9.8% $2.40 compound annual growth $2.30 • VG1 has traded at an average premium to post-tax $2.20 NTA of
Slide 23: VG1 Portfolio Update
VG1 Portfolio Update as at 31 October 2019 31 October 2019 Top 5 Long Investments Long Portfolio by Location of Exchange Listing CME Group Inc. 11% Amazon.com Inc. 8% Colgate Palmolive Co. 7% MasterCard Inc. 7% 20% Spotify Technology SA 7% Total 40% Month End Exposures 71% 9% Long Equity Exposure 84
Slide 24: Shareholder Engagement
Shareholder Engagement Please elect electronic Investor Letter from Half-year and Annual national communications to the Manager in full-year result roadshow including stay informed January and July conference calls briefings in Sydney, each year Melbourne, Adelaide, AGM in November Perth and Brisban
Slide 25: Questions
VGI PARTNERS Global Investments Questions
Slide 26: Disclaimer
Disclaimer: VGI Partners Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321789) and is SEC Registered. VGI Partners is the manager of VGI Partners Global Investments Limited (VG1) (ABN 91 619 660 721). The information in this document (Info
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