Djerriwarrh Investments Limited · ASX:DJW
Djerriwarrh Investments — Investor Presentation (March 2024)
29 slides from Djerriwarrh Investments's investor presentation, March 2024
Slide 1: Shareholders' Briefing March 2024
Shareholders’ Briefing March 2024 Shareholder Meeting / March 2024
Slide 2: Agenda
Agenda Overview of the LIC’s and Investment Process Mark Freeman Portfolio Updates: Djerriwarrh Brett McNeill Mirrabooka Kieran Kennedy AMCIL Mark Freeman Outlook Mark Freeman Shareholder Meeting / March 2024 2
Slide 3: Disclaimer
Disclaimer Djerriwarrh Investments Limited, Mirrabooka Investments Limited and AMCIL Limited and their service provider Australian Investment Company Services Limited (AICS) (AFSL 303209), their related entities and each of their respective directors, officers and agents (together the Disclosers) ha
Slide 4: Overview of our LICs and Investment Process
Overview of our LICs and Investment Process Shareholder Meeting / March 2024
Slide 5: Investment Objectives
Investment Objectives To provide an enhanced level of fully franked income that is higher than that available from the S&P/ASX 200 utilising option strategies. Attractive total return including capital growth over the medium to long term. Specialising in investing in small and medium sized com
Slide 6: Investment Approach
Investment Approach Attributes of a high-quality company Why this matters: that we seek: • Industry leadership position (or developing one) • The presence of these factors drives a competitive advantage • Unique assets that are hard to replicate • Conservative balance sheets (low debt) • Which leads
Slide 7: LIC share prices trading at a discount to Net Asset Backing
A current feature of the market is that the share prices of many LICs are trading at a discount relative to Net Asset Backing – 29 February 2024 Shareholder Meeting / March 2024 7
Slide 8: Djerriwarrh
rq Dyerriwarrh > ISTRALIAN EQUITIES, ENE
Slide 9: Djerriwarrh: Enhanced Yield
Djerriwarrh: Enhanced Yield At 29 February 2024. Assumes an investor can take full advantage of the franking credits. Yield based on the interim dividend and final dividend paid – in total 15 cents per share. Shareholder Meeting / March 2024 9
Slide 10: Djerriwarrh: Earnings and Dividends
Djerriwarrh: Earnings and Dividends Shareholder Meeting / March 2024 10
Slide 11: Djerriwarrh: Portfolio Performance to February 2024
Djerriwarrh: Portfolio Performance to 29 February 2024 * Assumes an investor can take full advantage of the franking credits. DJW’s portfolio return is also calculated after management fees, income tax and capital gains tax on realised sales of investments. It should be noted that Index returns for
Slide 12: Djerriwarrh: Market Conditions and Option Activity
Djerriwarrh: Market Conditions and Option Activity S&P/ASX 200 Price Index Source: ASX200 data from FactSet Shareholder Meeting / March 2024 12
Slide 13: Djerriwarrh: Portfolio Update
Djerriwarrh: Portfolio Update Constructing a diversified portfolio of high-quality companies across different sectors and with the appropriate balance of Income and Growth is the key for Djerriwarrh to deliver on its Investment Objectives in a variety of market conditions. Key Portfolio Statistics T
Slide 14: Mirrabooka
Slide 15: Portfolio Performance – Per Annum Returns to February 2024
Portfolio Performance – Per Annum Returns to 29 February 2024 * Assumes an investor can take full advantage of the franking credits. Mirrabooka's portfolio return is also calculate after management fees, income tax and capital gains tax on realised sales of investments. It should be noted that Index
Slide 16: Portfolio performance – a longer term perspective
Portfolio performance – a longer term perspective (per annum returns to 29 February 2024) Assumes an investor can take full advantage of the franking credits. Past performance not indicative of future performance. Shareholder Meeting / March 2024 16
Slide 17: Factors contributing to 2024 outperformance: Strong rebound in core holdings
Factors contributing to 2024 outperformance: Strong rebound in core holdings Jan 2022 – Dec 2022 Jan 2023 – Feb 2024 -52% +130% -57% +176% -50% +61% -15% +210% -55% +136% -38% -47% +90% 89% Jan 2022 – Dec Jan 2023 – Feb -41% +49% 2022 Average 2024 Average Return -13% +78% Return -15% +36% -33% +75%
Slide 18: Portfolio Outlook – How we are currently investing
Portfolio Outlook – How we are currently investing Valuation of the highest quality, highest growth companies is looking stretched again. We’ve continued to seek the best relative long-term value in companies that meet our quality threshold. We have recently found these in new portfolio opportun
Slide 19: Mirrabooka Top 20 Holdings – February 2024
Mirrabooka Top 20 Holdings – 29 February 2024 % of % of Company Ownership Period Company Ownership Period Portfolio Portfolio 1 5.7% 6.5 yrs 11* 2.4% 12.5 yrs 2* 4.0% 13 yrs 12 ALS 2.3% 17.5 yrs 3* 3.7% 4 yrs 13* 2.3% 6 yrs 4* 3.7% 7 yrs 14* 2.0% 3.5 yrs 5 3.5% 8 yrs 15* 2.0% 9.5 yrs 6 3.1% 1.5 yr 1
Slide 20: AMCIL
Slide 21: The Key Unique Benefits of an Investment in AMCIL
The Key Unique Benefits of an Investment in AMCIL The key unique benefits of AMCIL are the combination of: Focused portfolio invested in quality companies where holding size is not determined by the index weighting (mix of large, medium and small companies) Alignment of interests Comparatively low
Slide 22: Portfolio Performance – Per Annum Returns to February 2024
Portfolio Performance – Per Annum Returns to 29 February 2024* * Assumes an investor can take full advantage of the franking credits. AMCIL’s portfolio return is also calculated after management fees, income tax and capital gains tax on realised sales of investments. It should be noted that Index re
Slide 23: Major Transactions – Financial Year to Date
Major Transactions – Financial Year to Date BUYS SELLS Seeking value in Stalwarts Captured value (Exit) (Exit) Seeking value in Growth stocks (Trimmed) (Reduced) (Continuing story) (Price dislocation) (Continuing story – small position) Building stakes in businesses with owner (Risk managed) (Risk m
Slide 24: Portfolio Well Positioned For The Future
Portfolio Well Positioned For The Future AMCIL’s portfolio is well placed to navigate a wide range of economic outcomes: Growth Companies Stalwart Companies Income Companies ‘Asset Play’ Companies BLOCK Shareholder Meeting / March 2024 24
Slide 25: Outlook
Outlook Shareholder Meeting / March 2024
Slide 26: What were the themes of the recent reporting season?
What were the themes of the recent reporting season? Revenue Costs Key pricing trends Typically slowed in line with Greater focus on cost control helped Price rises taken to maintain margins expectations. deliver higher than expected – particularly in insurance, online earnings growth across a numbe
Slide 27: Where the market is currently trading against the long term
Where the market is currently trading against the long term ASX 200 Index Price Earnings Ratio ASX 200 Index Dividend Yield Times Per cent Average14.6 times Average 4.6% Source: FactSet Shareholder Meeting / March 2024 27
Slide 28: Outlook
Outlook US and Australian economic data remains healthy. The potential for rising bond yields is a risk, improving growth is an offset. However, optimism is supported by the expectation that the next move in cash rates is down. Overall results for portfolio holdings were positive. Growth com
Slide 29: Questions
Questions Shareholder Meeting / March 2024 29
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