L1 Capital International Fund Units (Managed Fund) · ASX:L1IF
L1 Capital International Fund Units (Managed Fund) — L1 Capital International — Investor Presentation (June 2025)
31 slides from L1 Capital International Fund Units (Managed Fund)'s investor presentation, June 2025
Slide 1: L1 Capital International Strategy Webinar: Investment Environment and Portfolio Update
Webinar L1 Capital International Strategy Investment Environment and Portfolio Update June 2025 L1 Capital International
Slide 2: Agenda
Agenda 1 Investment environment 3 2 L1 Capital International (Unhedged) Active ETF (ASX:L1IF) 11 3 Results season takeaways 18 4 Summary 23 5 Appendix – Fund terms and contact details 25 L1 Capital International 2
Slide 3: Investment environment
1 Investment environment L1 Capital International 3
Slide 4: President Trump's Tariff announcements have dominated markets followed by the 'One Big Beautiful Bill'
President Trump’s Tariff announcements have dominated markets followed by the ‘One Big Beautiful Bill’ Average Estimated to increase the U.S. Change in change in after tax and deficit by $2.8 trillion over 10 after tax and transfer transfer income ($) years, net of spending cuts income (%) 1st quint
Slide 5: U.S. Consumer Confidence
U.S. Consumer Confidence Consumer confidence has taken a hit, but recent indicators suggest some recovery following recent tariff back-track U.S. Consumer sentiment index 120 100 80 60 40 Source: University of Michigan L1 Capital International 5
Slide 6: Central Bank rate cutting cycle
Central Bank rate cutting cycle Most Central Banks have responded to economic uncertainty by cutting interest rates Since our last update, short-term rates have been cut further in the E.U., U.K., Australia, Canada and New Zealand Central Bank overnight rates U.S. ECB U.K. Australia Canada N.Z. Chin
Slide 7: U.S. inflation expectations
U.S. inflation expectations Medium term inflation expectations have remained constrained, despite some short-term inflationary pressures expected from tariffs 5-year U.S. inflation expectations 4% 3% 2% 1% 0% Source: Federal Reserve Bank of St. Louis L1 Capital International 7
Slide 8: Federal Fund Rate vs. projections
Federal Fund Rate vs. projections Despite pressure from Trump, the Federal Reserve has maintained its data dependent Monetary Policy and has not cut rates further in the face of solid employment and potential tariff induced inflation Federal Reserve Funds Rate and market projections “ If the large i
Slide 9: Equity markets have fully rebounded from the Liberation Day correction
Equity markets have fully rebounded from the Liberation Day correction Fully pricing in the ‘TACO Trade’ MSCI World Net Total Return Index in USD 13,000 12,500 12,000 11,500 11,000 10,500 10,000 Source: Bloomberg L1 Capital International 9
Slide 10: Equity markets are currently in a volatile grey zone
Equity markets are currently in a volatile grey zone Bond markets fail to see the ‘beauty’ in the Trump Administration’s tariff and fiscal policies 10-year U.S. Treasury Yield (%) 5.5% Big P/E hit No more Fed hikes (Inflation rebound) 5.0% Fed easing set to start One Big Beautiful Bill Broad moderat
Slide 11: L1 Capital International (Unhedged) Active ETF (ASX:L1IF)
2 L1 Capital International (Unhedged) Active ETF (ASX:L1IF) L1 Capital International 11
Slide 12: L1 Capital International (Unhedged) Active ETF
L1 Capital International (Unhedged) Active ETF Outperforming the MSCI World Index Benchmark over all time horizons, top quartile returns^ Performance objectives Fund performance* (Net, %) Fund Benchmark** Alpha • Seeks to deliver attractive 1 month 5.1 5.3 (0.2) risk-adjusted returns over a medium t
Slide 13: L1 Capital International (Unhedged) Active ETF: Performance
L1 Capital International (Unhedged) Active ETF: Performance Returns since inception on 1 March 2019 (Net, %) 140% 115% 143.8% return 90% net of fees, 65% versus 40% the Benchmark return of 124.7% 15% -10% L1 Capital International (Unhedged) Active ETF MSCI World Net Total Return Index in AUD Source:
Slide 14: Current portfolio positioning: Diversified by industry, region and company size
Current portfolio positioning: Diversified by industry, region and company size Portfolio focused on high quality companies in developed markets in a range of generally capital light, well structured and growing industries Sector exposure Software / Services 19% Regional exposure by region1 Payments
Slide 15: Current portfolio metrics
Current portfolio metrics Portfolio compared to the MSCI World Index and ASX 200 – financial metrics reflecting portfolio quality Fund1 MSCI World Index1 ASX 2001 Revenue growth 10% 5% 2% Gross margin2 58% 31% 40% 2024 Operating margin 29% 13% 14% metrics Cash conversion3 85% ND ND Net debt to EBITD
Slide 16: Portfolio valuation compared to 12-month trading range
Portfolio valuation compared to 12-month trading range Strong bounce in most share prices following Liberation Day sell-off Portfolio investments – Share price compared to 12-month trading range (rebased) 170 • Portfolio has traded on average around 20% from mid-point of 150 12-month trading range 1
Slide 17: Portfolio valuation compared to share price
Portfolio valuation compared to share price Portfolio broadly fairly valued with pockets of value, particularly where near term is more challenged Portfolio investments – Share price compared to valuation range (rebased) 120 • High conviction in largest positions – top 10 around 65% 110 of total por
Slide 18: Results season takeaways
3 Results season takeaways L1 Capital International 18
Slide 19: Top 10 holdings – Performance and outlook
Top 10 holdings – Performance and outlook Performance in line or ahead of our base case Quarter Results Outlook Slight = AWS: = eCommerce: = AWS: = eCommerce: = Slight = = = Slight Slight Slight = = = = = = = L1 Capital International 19
Slide 20: Example: AerCap
Example: AerCap Structural shortage of aircraft driving up asset values and lease rates • Aircraft demand has fully recovered post COVID • Boeing and Airbus continue to have supply chain and production issues • AerCap is selling older aircraft at substantial premium to book value, increasing the res
Slide 21: Example: Jacobs Solutions
Example: Jacobs Solutions #1 engineering consulting firm with defensive and secularly growing end markets • Portfolio dramatically reshaped after divesting cyclical Energy and Resources and slower growing, lower margin Government Services businesses • Today Jacobs Solutions is a capital light profes
Slide 22: Example: Intuit
Example: Intuit TurboTax Live: commercialisation of AI in a real-world application • TurboTax software is used to file 28% of U.S. tax returns but only has 15% revenue share • TurboTax Live is disrupting the assisted tax filing category • Assisted total addressable market is more than 4x the DIY cat
Slide 23: Summary
4 Summary L1 Capital International 23
Slide 24: Summary
Summary Economic conditions are mixed, and Trump policies are increasing uncertainty 1 Consumers in aggregate are doing O.K., lower socio-economic continues to struggle 2 Economic conditions in most developed regions are slowing, Trump Administration policies add uncertainty 3 Inflation under contro
Slide 25: Appendix – Fund terms and contact details
5 Appendix – Fund terms and contact details L1 Capital International 25
Slide 26: L1 Capital International Active ETFs (ASX:L1IF & ASX:L1HI)
L1 Capital International Active ETFs (ASX:L1IF & ASX:L1HI) Providing investors with increased investment flexibility • In November 2023, the original, unhedged Fund became available as an Exchange Traded Managed Fund (ETMF) as ASX:L1IF • In July 2024, the Manager launched an ETMF offering a hedge ve
Slide 27: L1 Capital International Strategy: Fund terms
L1 Capital International Strategy Fund terms Type of investments Listed securities Benchmark MSCI World Net Total Return Index in AUD Time horizon 5+ years • To outperform the Benchmark over rolling 5-year periods (net of all fees and expenses before tax) Investment objective • To deliver attractive
Slide 28: L1 Capital International Strategy: Key parameters
L1 Capital International Strategy: Key parameters Guidelines Number of positions (typical) 20 to 40 positions Target investment universe (typical) High quality global listed equities (L1 Capital International rating 1, 2, or 3) Target geography (typical) Developed markets: North America, Europe, Asi
Slide 29: Important information
Important information L1 Capital International Pty Ltd Information contained in this publication Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the L1 Capital International (Unhedged) Active ETF ARSN 631 094 141 (ASX:L1IF). Equity Trustee
Slide 30: Contact us
Contact us Head of Distribution Chris Clayton cclayton@L1.com.au +61 3 9286 7021 Researchers Aman Kashyap akashyap@L1.com.au +61 477 341 403 For more insights, visit Advisers Allan Evans aevans@L1.com.au +61 400 993 597 L1.com.au Bryce Leyden bleyden@L1.com.au +61 407 876 532 Clifford Fernandes cfer
Slide 31: Please contact us with any questions
[] 11 CAPITAL Please contact us with any questions. Level 32, 1 Farrer Place Governor Phillip Tower Sydney, NSW 2000 Phone +61 2 8067 7090 Web Liinternational.com ABN 21 125 378 145 | AFSL 314302 31
L1 Capital International — Investor Presentation (June 2025) on 6ix