Flagship Investments Ltd. · ASX:FSI
Flagship Investments — Investor Presentation (June 2016)
27 slides from Flagship Investments's investor presentation, Jun 14, 2016
Slide 1: Retail Presentation cover letter to ASX
Flagship Investments Limited ABN 99 080 135 913 Level 12 Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 PO Box 7536 GCMC BUNDALL QLD 9726 Telephone 07 5644 4400 Facsimile 07 5574 1457 14 June 2016 www.flagshipinvestments.com.au The Manager Company Announcements Office ASX Ltd Exchange Centr
Slide 2: BST and FSI Year-end Update 2016-6-10
BST and FSI Year-end Update 2016-6-10
Slide 3: Overview
i il Ove rvi ew Barrack St Investments Limited INVESTMENTS Our two listed investment companies, Barrack St Investments (BST) and Flagship Investments (FSI) offer investors an opportunity to invest in a portfolio of quality ASX listed companies managed by a disciplined and experienced investment mana
Slide 4: ECPAM Brand Promise
ECPAM Brand Promise 1. Weare buyers of quality businesses not share traders. 2. Wewill not diversify to cover up for poor due diligence; and 3. We will not speculate to generate excess returns for our clients. ECP Asset Management
Slide 5: Investment Philosophy
Investment Philosophy The economics of a business drives long-term investment returns. Investing in high quality, growth businesses, that have the ability to generate predictable, above average economic returns will produce superior investment performance over the long-term. A disconnect exists betw
Slide 6: We're disciplined growth managers, with a focus on quality
We’re disciplined growth managers, with a focus on quality.
Slide 7: A Fully Aligned Investment Team
A Fully Aligned Investment Team Jared Pohl Andrew Dale Dr Manny Pohl Jason Pohl Daniel Broeren BCom. BIT. MBA BCom. CA B.Sc(Eng). MBA. DBA BCom. LLB BBus. BEng. M.Acc Years in Industry: 10+ Years in Industry: 15+ Years in Industry: 30+ Years in Industry: 2+ Years in industry: 10+ Years at ECPAM: 3+
Slide 8: Alpha Attribution (BST)
Alpha Attribution (BST) We are proven stock pickers! Timing Sector 4% allocation 13% Stock selection 83% 7
Slide 9: Interim update
Interim update
Slide 10: Half-Year Snapshot
Half-Year Snapshot • • • •
Slide 11: December Quarter Summary
December Quarter Summary
Slide 12: Performance of market cap segments since 2001
Performance of market cap segments since 2001 All Small Mid Large Year-end Ords cap cap cap $0- $0- $1bn- $8bn- • Size Range $133bn $1bn $8bn $133bn • Dec-01 10% 11% 16% 11% • Dec-02 -8% -10% 5% -10% Dec-03 16% 12% 23% 12% Dec-04 28% 27% 43% 26% Dec-05 21% 20% 23% 23% Dec-06 25% 34% 26% 23% • ECPAM
Slide 13: BST & FSI Metrics (10 June 2016)
BST & FSI Metrics (10 June 2016) BST(EX 50) FSI (All Cap)
Slide 14: Portfolio Holdings (31 March 2016)
Portfolio Holdings ( 31 March 2016) Company Weight GICS Sectors Macquarie Group 7.23 REA Group 6.14 Commonwealth Bank of Australia 5.96 Catapult Sports 5.49 Telstra 5.34 Westpac Banking Corp 5.06 Energy Utilities Materials Industrials CSL 5.05 Consumer Discretionary Consumer Staples Seek 4.92 Health
Slide 15: Portfolio Holdings (10 June 2016)
Portfolio Holdings (10 June 2016) Company Weight GICS Sectors Macquarie Group 7.7 REA Group 6.1 Commonwealth Bank of Australia 5.9 CSL 5.5 Telstra 5.4 Westpac Banking Corp 5.0 Energy Materials IPH 4.7 Industrials Consumer Discretionary Seek 4.6 Health Care Financials Catapult Sports 4.4 IT Telecomms
Slide 16: Portfolio Performance
Portfolio Performance Historical Performance to 31 May 2016* Product (% change) 3m 1 year 3 Years 5 Years 10 Years Inception (May 1998) FSI Portfolio 9.29 9.53 14.32 13.47 9.66 12.40 S&P ASX All Ords 10.10 -5.66 3.50 2.61 0.92 3.93 Alpha -0.81 15.19 10.82 10.86 8.74 8.47 *All returns are gross of fe
Slide 17: Portfolio Holdings (31 Mar 2016)
Portfolio Holdings (31 Mar 2016) Company Weight GICS Sectors IPH 9.32 Sirtex Medical 8.52 Magellan Financial Group 8.27 Blue Sky Alternatives 7.38 Trade Me Group 6.62 Carsales 6.27 Austbrokers 5.96 REA Group 5.89 Industrials Consumer Discretionary Cover-more 5.78 Health Care Financials IT Telecomms
Slide 18: Portfolio Holdings (10 June 2016)
Portfolio Holdings (10 June 2016) Company Weight (%) GICS Sectors IPH 12.0 BT Investment Management 9.7 Magellan Financial Group 8.4 Trade Me Group 8.4 Sirtex Medical 7.9 Aconex 7.7 REA Group 7.6 Carsales 6.9 Reliance Worldwide 4.8 Industrials Consumer Discretionary Health Care Financials Covermore
Slide 19: Portfolio Performance
Portfolio Performance Historical Portfolio Performance to 31 May 2016* Product (% change) 3m 1 year Inception (August 2014) BST 9.16 24.60 19.32 S&P ASX All Ords 10.10 -5.66 -1.85 Alpha -0.94 27.26 21.17 *All returns are gross of fees and charges. Excess returns are calculated against the All Ordina
Slide 20: Rolling 5 Year Volatility
Rolling 5 Year Volatility* We’ve managed to deliver rolling 5 year volatility that is in line with the market (since inception), while delivering significant alpha over the same time frame. *ECPAM All Cap
Slide 21: FSI Historical Dividends
FSI Historical Dividends Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend 4.5 6.0 6.75 8.00 8.50 8.50 8.50 8.50 6.0 6.5 7.25* 7.25 Chg % 15.4 33.3 12.5 18.5 6.25 0.0 0.0 0.0 -30.0 8.3 3.8 11.1 CPI 2.50 2.50 4.00 2.10 4.50 1.50 3.10 3.60 1.20 2.20 2.90 1.6 * Including special
Slide 22: Large Cap Stocks / EX50 Stocks
Large Cap Stocks EX 50 Stocks (from both FSI and BST) Only from BST
Slide 23: Magellan Financial Group, Baby Bunting, PWR Holdings
Magellan Financial Group Baby Bunting PWR Holdings BT Investment Management Reliance Worldwide Silverchef
Slide 24: Future performance
Future performance
Slide 25: Portfolio overview
Portfolio overview * The small and mid cap stocks had a huge tailwind in the first six months which was reversed in the first quarter of the year as the oversold large caps corrected * Quality IPO's have continued to provide new blood for the portfolio. * Debt levels remain low across the portfolio.
Slide 26: Portfolio Prospects
Portfolio Prospects 5 YEAR IRR (Pre Franking) PE Expansion Broad Cap (FSI) +12.4% Broad Cap (FSI) -11% EX50 (BST) +13.3% EX50 (BST) -18% Dividend Yield 5 YEAR DPS Growth Broad Cap (FSI) +3.4% Broad Cap (FSI) +9% EX50 (BST) +2.2% EX50 (BST) +12%
Slide 27: Disclaimer
Disclaimer This communication is not a securities recommendation. Any person considering action on the basis of this communication must seek out individual advice relevant to their particular circumstances and investment objectives. Past performance is no guide for future performance. > ECP Asset Ma
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