Slide 1: Pengana Capital Group Financial Results for the year to 30 June 2018
PENGANA CAPITAL GROUP Financial Results For the year to 30 June 2018 Russel Pillemer Katrina Glendinning Chief Executive Officer Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 2 11 Overview 2 3 FY 2018 Results 34 FY 2018 Highlights 4 Focus for FY 2019 6 2
Slide 3: Overview
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Slide 4: Pengana Capital Group
Pengana Capital Group Investment strategies aim to generate superior long term returns with focus on capital preservation • Leading provider of premium products • Benchmark-unaware mandates; we don’t aim to “beat the market” over the short-term • Proven long-term performance over multiple funds • Im
Slide 5: Strengths and Opportunities
Strengths and Opportunities • A leading retail brand in benchmark-unaware actively managed equities • A diverse high quality offering across Australian and International equities; proven long term performance across multiple funds • Capitalise on increasing demand in benchmark- unaware, absolute ret
Slide 6: Funds Under Management
Funds Under Management 1 Historical Growth in FUM ($m) FUM Strategy Breakdown (30/6/2018) $4,000 $3,519 $3,500 3% 1% $3,127 5% $3,000 $2,879 $2,528 $794 $2,500 $2,140 $1,140 41% $2,020 23% $2,000 $1,117 $3,519 $960 $1,500 $1,115 $2,333 $1,000 $1,739 $1,411 $1,180 27% $500 $905 $- FY 2013 2014 2015 2
Slide 7: Diversified Range of Funds
Diversified Range of Funds 1 Acronym Primary Fund Name Strategy Strategy FUM Management Fee; Performance Fee at 30/6/18 ($m) (Primary Fund) PAEF Pengana Australian Equities Australian Multi-caps 1,434 1.0%; 10% above 0% PECF Pengana Emerging Companies Australian Small-caps 936 1.3%; 20% above ASX Sm
Slide 8: Annual Fee Margin FY 2015 to FY 2018
Annual Fee Margin FY 2015 to FY 2018 3.5% 3.23% 3.0% 2.5% 2.19% 2.0% 1.70% 1.49% 1.5% 1.0% 1.18% 1.15% 1.14% 1.15% 0.5% FY 2015 FY 2016 FY 2017 FY 2018 Mgmt fee/avg FUM Total fee/avg FUM Total fee/avg FUM, 4 year avg Performance fees fluctuate over relatively short periods Over the longer term, we e
Slide 9: FY 2018 Results
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Slide 10: Pengana Capital Group Statutory Profit After Tax
Pengana Capital Group Statutory Profit After Tax 30 June 2018 ($’000) Management fee revenue 38,450 Performance fee revenue 11,580 Operating expenses (19,440) Team profit share (18,750) Operating EBITDA1 11,840 Other income 1,921 Amortisation (3,140) Other non operating expenses (560) Profit before
Slide 11: Pengana Capital Group Underlying Profit After Tax
Pengana Capital Group Underlying Profit After Tax1 30 June 2018 ($’000) Statutory profit after tax attributable to Pengana shareholders 1 6,980 Add back: 2 Amortisation 3,140 Unrealised investment gains 170 Interest on Loan Funded Share Plan 2,110 Underlying profit 12,400 Basic earnings per share on
Slide 12: Pengana Capital Group Balance Sheet
Pengana Capital Group Balance Sheet1 30 June 2018 ($’000) Cash net of $5m AFSL cash requirements 11,070 Current receivables 5,690 Current liabilities (9,472) Net working capital 7,288 Investments net of $5m AFSL liquid asset requirements 12,118 AFSL capital requirements 10,000 Loans (on and off bala
Slide 13: FY 2018 Highlights
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Slide 14: 2018 Financial Year in review
2018 Financial Year in review • Completion of merger integration and capture of synergies • Growth in FUM from net inflows and performance • Management fee revenue as expected • Performance fee revenue lower than historical averages: expected from time to time • Improvement in research house ratings
Slide 15: Focus for FY 2019
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Slide 16: Platform for Long Term Growth
Platform for Long Term Growth a a a a Superior Business Scalable Infrastructure Distribution and Brand Acquisition Model Opportunities • Attract, retain and • Manage • FUM growth in • Attractive align “in-house” significantly larger existing and new partner/buyer for teams asset base with low funds
Slide 17: Focus Going Forward
Focus Going Forward • Maintain investment performance across all strategies • Continued growth in FUM , especially for International Equities strategies • Global Small Companies Fund growing at close to an average of $15m per month • Multi-cap International Equities Strategies close to positive net
Slide 18: Launch of New Listed Investment Trust
Launch of New Listed Investment Trust • Significant increase in activity in listed investment vehicle space • Over the last year, Pengana has been working on the launch of a new Listed Investment Trust (“LIT”) • Investing in highly attractive segment of alternative assets • JV type arrangement with
Slide 19: Disclaimer
Disclaimer This presentation has been prepared by Pengana Capital Group Limited (ABN 43 059 300 426) (PCG). The information in this presentation is current as at 28 August 2018. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respec
Slide 20: For More Information
THANK YOU FOR MORE INFORMATION PENGANA CAPITAL GROUP ABN 43 059 300 426 Level 12, 167 Macquarie Street, Sydney, NSW 2000 T: +61 2 8524 9900 F: +61 2 8524 9901 20 E: clientservice@pengana.com PENGANA.COM