Wam Income Maximiser Limited · ASX:WMX
Wam Income Maximiser — Wilson Asset Management — Investor Presentation (May 2019)
37 slides from Wam Income Maximiser's investor presentation, May 15, 2019
Slide 1: Shareholder Presentation May 2019
For personal use only Wilson Asset Management May 2019 Shareholder Presentation /
Slide 2: Disclaimer
Wilson Asset Management Disclaimer Wilson Asset Management and their related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared theinformation contained in these materials in good faith. However, no warranty (express or implied) is made as to
Slide 3: For personal use only
For personal use only
Slide 4: For personal use only
For personal use only
Slide 5: LICs premium
YN au) c =) ‘e) O me 7s) og LICs premium
Slide 6: Catriona Burns, Lead Portfolio Manager
For personal use only Wilson Asset Management Catriona Burns Lead Portfolio Manager
Slide 7: The Fed's pause for thought
The Fed’s pause = for thought S) Global growth slowdown in 2018 Financial conditions tightened 625 625 101. —— US Financial 101 Conditions Index 60 Ge 100 a TIGHTER wh 100 575 575 ~ Pasi WAS 55 a 99 ea p mtr Sorter} 99 525 an A ft 525 98 ‘Vv EASIER 98 eo ay 600 — USHigh-Yield Corporate 600 415 415 5
Slide 8: What's ahead for the Fed
What’s ahead _~ for the Fed = © oa US unemployment rate at 48 year lows : US inflation sanguine for now S | @ 5 — USHeadline PCE Inflation 9 1200 (xt ) £ 1000 3 ” € 800 § i= W@W ® 600 x a os LE 400 sO 0 es i< ) >? 200 a vi 4 LIL, 000 « 5 5 ; = 2 s 1948 1958 1968 1978 1988 1998 2008 2018 2008 2009 20
Slide 9: End of the bull market?
End of the bull market? Inverted yield curves, 1968-2018 4 1, fh , UM . & Yield curve inversions, recessions & the term premium Inversion date Recession lead ae a TEAR MINUS SAUONTH YIELD sss00= 0-YEAR MINUS 2-YEAR YIELD Dec 1968 12 months | dn hoof fh Jun 1973 5 months ol Nov 1978 14 months j Oct 1
Slide 10: Can China save the world economy?
Can China save the world economy?
Slide 11: China stimulus vs trade war
% of GDF China stimulus vs trade war After stimulus, Chinese credit growth is rebounding... — China Credit Impulse (Advanced by 9 months, LS) 1 --- Manufacturing PMI: Imports (RS) 10 12 4 6 18 20 | Lf ..boding well for exporters to China, unless we have an escalation to the trade war Cumulative Impa
Slide 12: WAM Global top holdings
W|A|M Global ene] HCA AMERICAN} EXPRESS logitech DIAGEO BOOKING HOLDINGS ThermoFisher SCIENTIFIC % United Technologies ¥, Reckitt Benckiser Top holdings CME Group Alphabet HARRIS i om al BANDAI NAMCO eventin . LVMH % GEE CO, LTD.
Slide 13: Matthew Haupt, Lead Portfolio Manager
For personal use only Wilson Asset Management Matthew Haupt Lead Portfolio Manager
Slide 14: The key drivers of equity markets
The key drivers of equity markets ...and, how they look now Liquidity cycle GC) Highly accommodative 03 ~——~Political cycle ye
Slide 15: The significance of China to Australia
The significance of China to Australia ie Copper Aluminium Nickel Coal =p sox = [) 47% 56% ie) 50% Australia - 5 Australia - 6" Australia — 5t° Australia — 4" in global exports in global exports in global exports in global exports Liquified Seaborne & iron ore Gold natural gas Steel i) 679, ay 27% O
Slide 16: Positioning for global growth
Positioning for global growth INVESTMENT LANDSCAPE 1 China continues to stimulate global growth 5 Global yield curve steepens 2 — Global PMls increase 6 Risk currencies up, defensive currencies down 3 Equities outperform 7 Inflation pick-up 4 Cyclicals outperform defensives 8 Credit spreads and vola
Slide 17: Portfolio positioning
Portfolio positioning Emerging markets Global cyclicals Commodities Financials HOLDINGS ®& RioTintto BHP O22: QBE Q amcor Sill W= © ec) Wwoodside Computershare SOUTH32 ILUKA
Slide 18: Fortescue: The New Force in Iron Ore
Fortescue The New Force in Iron Ore ASX:FMG © Sold 50: of position Jun 18 Jul 18 Feb19 Mar 19 Apr 19 May 19
Slide 19: And if we are wrong
And if we are wrong INVESTMENT LANDSCAPE 1 Global growth stalls 5 — Global yield curve remains flat 2 Global PMs fall 6 Risk currencies down, defensive currencies up 3. Equities underperform 7 Low inflation persists 4 Defensive outperform cyclicals 8 Credit spreads and volatility widen bL fi ,., DB)
Slide 20: Portfolio positioning
Portfolio positioning Developed markets : Goldand : Long duration : Consumer staples, : yield sensitive : assets : telcos and health assets : eS ra xX IS . lA <> CSL ¢ ani Airport a NORTHERN STAR Saracen @D veces 7% Transurban GPT Eon dexus min LIMITED St Barbara iMaTeD
Slide 21: Evolution Mining
Evolution MINING. ASX: EVN S a 20 + T T T T T T T T T T T T T T T T Jan 18 Feb 18 Mar18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 13 Oct 18 Nov 18 Dec 18 Jan 19 Feb19 Mar 19 Apr 19 a
Slide 22: WAM Leaders top active holdings
W|A|M Leaders MNRAS Ad. St Barbara (Aw wirenaven COAL powner' [@EeJ Tabcorp Wr ae: THE STAR NORTHERN STAR eee @ G sssINine ILUKA €omputershare igo) QO amcor ® NEWCREST Top active holdings Le atlasArteria fa Saracen e ARISTOCRAT Q QBE
Slide 23: Oscar Oberg, Lead Portfolio Manager
For personal use only Wilson Asset Management Oscar Oberg Lead Portfolio Manager
Slide 24: Get me out of here: high P/E firms
as an a Get me out of Ke, 4 w oe wo x wi’ ra g 7 Fe 2 _— = - — — -_- — ——— 24.4x rae me N = © D 27 5 > <x 12 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 ——_ High P/E firms; average forward P/E ~~ > 25 year average > o>, “™
Slide 25: Top research-driven holdings
W|A|M Capital vocus GROUP city chic TH Childcare Limited W|A|M Research JOHNS LYNG vy GROUP G&G Spicers ” W|A|M Microcap MYER InvoCare © ENERO vita Top research- driven holdings we Wi & PSC Gkoue EnergyAustralia <2) G8 Education” INF@MEDIA Global leaders in port ¥ vice software INTELLECTUAL PROPERTY
Slide 26: Infomedia: Global leaders in parts and service software
iNF@ MEDIA Global leaders in parts and service software
Slide 27: Myer investment profit forecast
— — _a F ie & rr Lins 80 : 20 60 as 30 ‘cae =. 5S__ 2 So eee eee ee _-. Forecast analyst oe 55 profit = $35m Myer profit Rent savings Head office costs Service/store Wilson Asset investment Management forecast profit
Slide 28: Martin Hickson, Lead Portfolio Manager
For personal use only Wilson Asset Management Martin Hickson Lead Portfolio Manager
Slide 29: Share price move on day of result
H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 ™@ Share price move on day of result / average daily share price move GP \\ H2 H1 H2 H1 H2 H1 H2 H1 2015 2016 2016 2017 2017 2018 2018 2019 \
Slide 30: Top market-driven holdings
Top market- W|A|M Capital WJ|A|M Microcap W\A|M Active driven holdings ue Steadfast ° O mcauarie se id p e-7 SGH afterpaya7 MMS Altium. 2appen 360 Capital TOTAL RETURN FUND ail 2 C PEOPLE MAGMAHON PACIFICENERGY a cfrGs bc sbs Ruralco DG vert
Slide 31: For personal use only
sappan ASX: APX 1666 N09 826 509 FY2014 FY2015 FY2016 FY2017 Language Resources = = = Content Relevance = = 364.3 FY2018 eNusAed UOII|IWS
Slide 32: FY18 Category Sales
Hr FY18 Category Sales q@ BD ; ng > ADVANCED COOLING TECHNOLOGY ASX: PWH $1.9m S2.1m | Motorsports Automotive aftermarket 61% 22% mem Original equipment Emerging technologies manufacturers & other 8% 9%
Slide 33: Kate Thorley, Chief Executive Officer
For personal use only Wilson Asset Management Kate Thorley Chief Executive Officer
Slide 34: Making a difference
Making a difference Investing more than Committed to philanthropic $3 bi | | id n and advocacy initiatives on behalf of more than 80,000 investors PLEDGE across six listed investment companies Proven investment approach that has delivered solid returns for over 20 yea rs Creator and lead supporter o
Slide 35: For personal use only
For personal use only
Slide 36: For personal use only
For personal use only
Slide 37: Get in touch
Join more W: than 45,000 weekly readers wilsonassetmanagement.com.au — Getintouch — info@wilsonassetmanagement.com.au (02) 92. ———
Wilson Asset Management — Investor Presentation (May 2019) on 6ix