AMCIL Limited · ASX:AMH
AMCIL — Shareholder Meeting (October 2017)
29 slides from AMCIL's shareholder meeting presentation, Oct 12, 2017
Slide 1: AMCIL Limited 2017 Annual General Meeting Presentation
12 October 2017 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement AMCIL Limited 2017 Annual General Meeting Presentation Dear Sir / Madam Please find attached a presentation that wil
Slide 2: Annual General Meeting 2017
For personal use only Annual General Meeting 2017
Slide 3: Disclaimer
For personal use only Disclaimer AMCIL Limited and Australian Investment Company Services Limited (AFSL: 303209) and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, no warranty (expre
Slide 4: Results and Shareholder Returns
For personal use only Results and Shareholder Returns Annual General Meeting 2017
Slide 5: AMCIL's Approach
For personal use only AMCIL’s Approach Focused portfolio covering large and small companies. Aim is to provide: • attractive returns through strong capital growth over the medium to long term; and • the generation of fully franked income. Our size means small companies can have an equally important
Slide 6: Financial Year Summary – to June
For personal use only Financial Year Summary – to 30 June 2017 Annual General Meeting 2017
Slide 7: Dividend Reflects the Policy of Paying out all Available Franking Credits Each Year
For personal use only Dividend Reflects the Policy of Paying out all Available Franking Credits Each Year Annual General Meeting 2017
Slide 8: Changes to Tax Legislation – Franking Credits
For personal use only Changes to Tax Legislation – Franking Credits • The Federal Government has proposed retrospective legislation to prevent Investment Companies claiming the lower company tax rate until 2023–24. • If enacted, AMCIL will continue to pay tax at 30%, and frank its dividends at 30% u
Slide 9: Share Price Return Including Dividends and Benefit of Franking Credits
For personal use only Share Price Return Including Dividends and Benefit of Franking Credits – 10 Years to 30 September 2017 *Based on net operating result * Assumes the reinvestment of dividends. This chart calculates the benefit of franking credits at the time dividends are paid for both AMCIL and
Slide 10: Share Price is Trading at a Small Discount to Net Asset Backing
For personal use only Share Price is Trading at a Small Discount to Net Asset Backing Annual General Meeting 2017
Slide 11: The Market and Portfolio
For personal use only The Market and Portfolio Annual General Meeting 2017
Slide 12: The Market by Company Size Over the Year to September 2017
For personal use only The Market by Company Size Over the Year to 30 September 2017 Source: FactSet Annual General Meeting 2017
Slide 13: Mid Cap Resource Sector Returns Have Been Very Strong
For personal use only Mid Cap Resource Sector Returns Have Been Very Strong Over the Year to 30 September 2017 – Iluka is in AMCIL’s Portfolio Annual General Meeting 2017
Slide 14: Portfolio Performance Including Benefit of Franking Credits
For personal use only Portfolio Performance Including Benefit of Franking Credits* – to 30 September 2017 After tax and expenses. Ignores benefits LIC tax credits. * Assumes an investor can take full advantage of the franking credits. Annual General Meeting 2017
Slide 15: Performance of the Portfolio Each Financial Year can vary markedly from the Index
For personal use only Performance of the Portfolio Each Financial Year can vary quite markedly from the S&P/ASX 200 Accumulation Index Note assumes an investor can take full advantage of the franking credits. Annual General Meeting 2017
Slide 16: Total Portfolio Returns including Dividends and Franking Credits
For personal use only Total Portfolio Returns including Dividends and Benefit of Franking Credits – 10 Years to 30 September 2017 * Assumes the reinvestment of dividends. This chart calculates the benefit of franking credits at the time dividends are paid for both AMCIL and the index. In practice th
Slide 17: How AMCIL Invests – What we Look for in Companies
For personal use only How AMCIL Invests – What we Look for in Companies Board and management, financial position, as well as some key financial metrics – the level of gearing and cash flow. Ability of companies to grow earnings over time, which ultimately should produce good dividend and capital gro
Slide 18: How we have gone about Positioning the Portfolio
For personal use only How we have gone about Positioning the Portfolio • Larger companies offering growth and/or income through the use of buy and write option strategies. • Companies with good prospects for expansion: very good management, credible growth; and unique product positions • Oppor
Slide 19: Positioning of the Portfolio – Larger Companies
For personal use only Positioning of the Portfolio – Larger Companies Offering growth For buy and write option strategies Annual General Meeting 2017
Slide 20: Positioning of the Portfolio – Growth Companies
For personal use only Positioning of the Portfolio – Growth Companies Very good management, credible growth, unique product positions. Annual General Meeting 2017
Slide 21: Positioning of the Portfolio – Value Opportunities
For personal use only Positioning of the Portfolio – Value Opportunities Undervalued situations: Recent purchases. Reducing positions. Annual General Meeting 2017
Slide 22: Top Investments as at September 2017
For personal use only Top 20 Investments as at 30 September 2017 Rank Company % of Portfolio 1 BHP* 5.4% 2 National Australia Bank* 4.9% 3 Westpac Banking Corporation* 4.8% *Based on net operating result 4 Lifestyle Communities 4.5% 5 Commonwealth Bank of Australia* 4.1% 6 CSL* 4.0% 7 Qube Holdings*
Slide 23: Top Investments as at September 2017 continued
For personal use only Top 20 Investments as at 30 September 2017 continued Rank Company % of Portfolio 11 Transurban Group 2.7% 12 IRESS* 2.6% 13 Treasury Wine Estates* 2.6% *Based on net operating result 14 CYBG 2.3% 15 Computershare* 2.3% 16 Amcor* 2.3% 17 Seek* 2.3% 18 Rio Tinto* 2.2% 19 Iluka Re
Slide 24: Some Recent Adjustments to the Portfolio
For personal use only Some Recent Adjustments to the Portfolio Added: Complete sales: new addition new addition Annual General Meeting 2017
Slide 25: Significant Repositioning of the Portfolio has occurred already this Financial Year
For personal use only Significant Repositioning of the Portfolio has occurred already this Financial Year • Total sales $37.7 million – 9 holdings sold completely. • Purchases of $34.1 million – 4 new holdings added. • One of the key characteristics is the quality of management. • $58 million of the
Slide 26: Moving Forward
For personal use only Moving Forward Annual General Meeting 2017
Slide 27: Moving Forward
For personal use only Moving Forward The Australian equity market has lagged the US – 1 year to Although valuations for many companies in Australia are 30 September 2017 still at the top end – P/E ratio for S&P/ASX 200 index Source: FactSet Source: FactSet Annual General Meeting 2017
Slide 28: Moving Forward
For personal use only Moving Forward • Significant repositioning of the portfolio has occurred. • AMCIL holds a relatively strong cash position. • Remain cautious about growth for a number of sectors, although buy and write strategies can still generate good returns. • Market volatility will produce
Slide 29: For personal use only
For personal use only