Associate Global Partners Limited · ASX:APL
Associate Global Partners — Contango Asset Management — Shareholder Meeting (November 2016)
24 slides from Associate Global Partners's shareholder meeting presentation, November 2016
Slide 1: Investment Update CIE Annual General Meeting November 2016
INVESTMENT UPDATE CIE ANNUAL GENERAL MEETING NOVEMBER 2016
Slide 2: Disclaimer
DISCLAIMER DISCLAIMER Contango Asset Management Limited (ABN 52 085 487 421) holds an Australian Financial Services Licence (AFSL #237119) restricting it to providing financial products and services to wholesale clients only. This presentation has been prepared for the consideration and use of ‘whol
Slide 3: Table of Content
Heading TABLE OF CONTENT 1. Economics and Investment strategy 2. Portfolio review 3. Overview of Contango Asset Management 4. Summary 03 CONTANGO ASSET MANAGEMENT
Slide 4: 1. Economic Outlook and Strategy Implications
Heading 1. ECONOMIC OUTLOOK AND STRATEGY IMPLICATIONS 04 CONTANGO ASSET MANAGEMENT
Slide 5: Global Growth Momentum Has Improved but Structural Headwinds Remain
Heading GLOBAL GROWTH MOMENTUM HAS IMPROVED BUT STRUCTURAL HEADWINDS REMAIN • Global growth profile has exhibited some signs of improvement – US ISM and German IFO supportive of improved growth momentum – Fed funds Dec rate hike on target – Global growth however to remain modest • Bulks, energy and
Slide 6: Recovery Is Partly Due to Multiple Fiscal and PBOC Stimulus
Heading RECOVERY IS PARTLY DUE TO MULTIPLE FISCAL AND PBOC STIMULUS CHINESE STEEL PRICES HAVE SUPPORTED COKING, ORE AND THERMAL 06 CONTANGO ASSET MANAGEMENT
Slide 7: Aussie Long Bond Yields Higher as US Bond Yields Rise
Heading AUSSIE LONG BOND YIELDS HIGHER AS US BONDS YIELDS RISE DESPITE WEAKER BOND MARKET YIELDS REMAIN STRUCTURALLY LOW 07 CONTANGO ASSET MANAGEMENT
Slide 8: Market Still Pricing in Low Domestic Rates
Heading MARKET STILL PRICING IN LOW DOMESTIC RATES STRUCTURALLY LOW INFLATION SUPPORTS LOW RATE 08 CONTANGO ASSET MANAGEMENT
Slide 9: 2. Portfolio Review
Heading 2. PORTFOLIO REVIEW 09 CONTANGO ASSET MANAGEMENT
Slide 10: A Lower Volatility and Higher Yielding Equity Income Fund
Heading A LOWER VOLATILITY AND HIGHER YIELDING EQUITY INCOME FUND THAT DIVERSIFIES AWAY FROM THE TOP-30 • Offers a portfolio of lower volatility and higher yielding Australian listed shares outside of the top-30 – Provides diversification away from large cap banks and telcos. • Actively managed port
Slide 11: Income Generator Fund's Active Weights Are a Product of the Investment Process
Heading THE INCOME GENERATOR FUND’S ACTIVE WEIGHTS ARE A PRODUCT OF THE INVESTMENT PROCESS Income Generator Fund Active Weights: Contango Industry Sectors Miscellaneous Services 12.6 Diversified Financials 12.3 Utilities 7.1 Retailing 4.5 Media 2.9 Durables & Apparel 2.1 Real Estate 1.8 Construction
Slide 12: Income Generator Fund's Stock Positions Are a Product of the Investment Process
Heading THE INCOME GENERATOR FUND’S STOCK POSITIONS ARE A PRODUCT OF THE INVESTMENT PROCESS Over Under Code Stock Code Stock % % TTS TATTS GROUP LTD 5.4 CBA* COMMONWEALTH BANK -8.8 BOQ BANK OF QUEENSLAND 5.4 WBC* WESTPAC BANK -7.1 ASX ASX LTD 5.0 ANZ* AUST AND NZ BANK -5.7 BEN BENDIGO & ADELAIDE BAN
Slide 13: Fund's Active Risk Positions Consistent with Objectives
Heading THE INCOME GENERATOR FUND’S ACTIVE RISK POSITIONS ARE CONSISTENT WITH THE FUND’S OBJECTIVES Contango S&P/ ASX300 S&P/ ASX300 October 2016 Income All Ordinaries Top-30 ex-30 Generator Median Market Cap ($M) 2304.6 557.9 19465.4 1179.3 Price to Earnings Ratio 15.8 15.6 15.2 16.1 Earnings Growt
Slide 14: The Midcap (Ex 30) Dividend Income Generator Fund Listed Investment Company
Heading THE MIDCAP (EX 30) DIVIDEND INCOME GENERATOR FUND LISTED INVESTMENT COMPANY Contango All Ordinaries October 2016 Income Added Value Accum Index Generator 3 Months -1.4% -3.1% 1.7% 1 Year 6.9% 6.6% 0.3% Inception (Aug 2015) pa 7.9% 5.0% 2.9% Gross Performance LIC Source: Bloomberg, Bloomberg
Slide 15: A Blend of Top-30 and Ex-30 Income Stocks Is a More Efficient Allocation
Heading A BLEND OF TOP-30 AND EX-30 INCOME STOCKS IS A MORE EFFICIENT PORTFOLIO ALLOCATION Return Optimal Portfolio or “Efficient Frontier” Optimal curve portfolio allocation Ex-30 Concentrated income Large cap large cap fund portfolio portfolio Sub-optimal portfolio allocation Risk 015 CONTANGO ASS
Slide 16: What Does the Contango Income Generator Ltd Offer
Heading A DIVERSIFIED PORTFOLIO WHAT DOES THE CONTANGO INCOME GENERATOR LTD OFFER Contango Income Feature Generator Limited Diversified exposure to ex-30 income securities Dividend policy of 6.5% of NTA Targeting capital growth over time Targeting lower volatility Maximise franking where pos
Slide 17: Who Is the Contango Income Generator Ltd Suitable For?
Heading A DIVERSIFIED PORTFOLIO WHO IS THE CONTANGO INCOME GENERATOR LTD SUITABLE FOR? Contango Income Suitable investor Generator Limited SMSFs Retirees Yield focused investors High Net Worth (HNW) investors Investors over-exposed to large cap stocks including the Banks and Telstra 017 CO
Slide 18: 3. Overview of the Manager Contango Asset Management
Heading 3. OVERVIEW OF THE MANAGER CONTANGO ASSET MANAGEMENT 018 CONTANGO ASSET MANAGEMENT
Slide 19: Contango Structure Is Aligned with Clients
Heading CONTANGO STRUCTURE IS ALIGNED WITH CLIENTS ESTABLISHED INSTITUTIONAL AND LIC FUND MANAGER ASX: CGA • Contango Asset Management (CGA) is a listed and established institutional and LIC fund manager • CGA Board: Roger Amos (Chair), Patricia Toh, Marty Switzer, Charlie Aitken and George Bouboura
Slide 20: Contango Group Structure Is Aligned with Clients
Heading CONTANGO GROUP STRUCTURE IS ALIGNED WITH CLIENTS ESTABLISHED INSTITUTIONAL AND LIC FUND MANAGER ASX: CGA LICs Retail ASX: CTN* Institutional Mandates ASX: CIE* *LICs – Long-term Investment Management Agreements 46.25% ownership – JV with Switzer Financial Group (Contango manages retail manda
Slide 21: Contango Has a Flat and Efficient Structure
Heading CONTANGO HAS A FLAT AND EFFICIENT STRUCTURE EXPERIENCED AND LARGE INVESTMENT TEAM George Boubouras MD & Chief Investment Officer (CIO) Legal, Compliance and Operations Investment Team Adam Legg Richard Dalidowicz* Jarrod Deakin Bill Laister Shawn Burns Alistair Drummond Hari Morfis Senior Po
Slide 22: 4. Summary
Heading 4. SUMMARY 022 CONTANGO ASSET MANAGEMENT
Slide 23: Summary: Strong Performance from Income Generator
SUMMARY STRONG PERFORMANCE FROM INCOME GENERATOR • The Contango Income Generator has continued to deliver solid investment returns including a healthy dividend. • The fund continues to target companies that generate high and consistent cash flows and lower volatility of earnings compared to the broa
Slide 24: Contact Details
Heading CONTACT DETAILS George Boubouras Jarrod Deakin Managing Director and Chief Investment Officer Portfolio Manager – Income Solutions Contango Asset Management Limited Contango Asset Management Limited Tel: +61 (3) 9222 2324 Tel: +61 (3) 9222 2329 Mobile: +61 414 614 225 Mobile: +61 (0) 409 780
Contango Asset Management — Shareholder Meeting (November 2016) on 6ix