Regal Asian Investments Limited · ASX:RG8
Regal Asian Investments — VGI Partners Global Investments — Investor Presentation (August 2018)
21 slides from Regal Asian Investments's investor presentation, Aug 20, 2018
Slide 1: VGI Partners Global Investments 2018 Investor Briefing
For personal use only VGI Partners Global Investments Limited (ASX Code: VG1) 2018 Investor Briefing 20 August 2018
Slide 2: Disclaimer
Disclaimer For personal use only VGI Partners Pty Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321 789) and is SEC Registered. VGI Partners is the manager of VGI Partners Global Investments Limited (VG1) (ACN 619 660 721). The information
Slide 3: 2018 Results Overview
2018 Results Overview For personal use only $ millions Income Net realised and unrealised gains on investments $ 58.9 Interest income $ 3.3 Dividend income $ 3.5 Total Income $ 65.7 Total Expenses $(18.3) Profit before income tax $ 47.4 ▪ Inaugural $47.4 million profit before tax for the approximate
Slide 4: For personal use only
For personal use only ▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 4
Slide 5: The Manager – VGI Partners
The Manager – VGI Partners For personal use only ▪ Boutique manager, focussing on global equities. Long biased, concentrated strategy with selective shorting. Minimal to no leverage utilised ▪ 20 staff in Sydney, New York and Tokyo; 10 investment and 10 operations staff ▪ Deploys a single investment
Slide 6: Global listed equities portfolio: long, short and cash
Investment Mandate and Philosophy For personal use only ▪ Global listed equities portfolio: comprising long, short and cash ▪ Focus on risk-adjusted returns Capital Preservation Do not lose money Long-Term Compound Growth 10-15% p.a. net of fees Portfolio Concentration Top 5 long investments = 40-50
Slide 7: Capital Preservation: Performance in Up/Down Months over 9.5 years
Capital Preservation: Performance in Up/Down Months over 9.5 years For personal use only Compound Annual Return (Net) Performance in Performance in 16% 15.2% "Up Market" Months "Down Market" Months 15% 2.8% 3% 2.4% 14% 2% 13% 1% 12% 11.2% 0% 11% (1%) 10% (0.8%) (2%) 9% (2.2%) (3%) 8% Average VGI Ave
Slide 8: Long-Term Performance Objectives Achieved
Long-Term Performance Objectives Achieved For personal use only Annual Compound Returns (% p.a.) VGI Partners Performance To 30 June 2018 Master Fund Objective Performance Achieved (10-15% p.a.) 1 year 20.2% ✓ 2 year rolling (p.a.) 12.8% ✓ 3 year rolling (p.a.) 12.9% ✓ 4 year rolling (p.a.) 18.7% ✓
Slide 9: For personal use only
For personal use only ▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 9
Slide 10: Post-Tax NTA and Share Price Premium, September 2017 to June 2018
Net Investment Performance – 25 September 2017 to 30 June 2018 For personal use only ▪ Post-Tax NTA grew +9.2% to $2.18 per share for the approximately 9 months to 30 June 2018 ▪ VG1 has traded at an average premium of ~4% to post-tax NTA since listing Post-Tax NTA Per Share Share Price Premium to N
Slide 11: Performance Attribution – September 2017 to June 2018
Performance Attribution – 25 September 2017 to 30 June 2018 For personal use only NTA Performance for the Period Contribution Long Investments 5.8% Short Positions -0.8% Currency 4.2% Net Performance (after all fees) 9.2% Largest Long Contributors Contribution Zillow Group Inc. 1.5% Amazon.com Inc.
Slide 12: For personal use only
For personal use only ▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 12
Slide 13: Portfolio Update as at June 2018
Portfolio Update as at 30 June 2018 For personal use only Top Long Investments 30 June 2018 Long Portfolio by Location of Exchange Listing CME Group Inc. 10% Medibank Private Limited 6% Colgate Palmolive Co. 6% 14% Praxair Inc. 5% 10% The Coca-Cola Co. 5% MasterCard Inc. 5% Zillow Inc. 4% 76% Amazon
Slide 14: Portfolio Update – Deployment
Portfolio Update – Deployment For personal use only ▪ We have been patiently and steadily deploying the portfolio, given our focus on preservation of investors’ capital ▪ The portfolio was invested to ~80% of targeted individual stock weightings at 30 June 2018, on average across the entire portfoli
Slide 15: For personal use only
For personal use only ▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 15
Slide 16: Market outlook: valuations and interest rates
General Market Commentary For personal use only ▪ High-quality businesses continue to trade at valuations which imply unlikely levels of growth into perpetuity, combined with an expectation that interest rates will remain low forever ▪ As global interest rates normalise we believe this will lead to
Slide 17: For personal use only
For personal use only ▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 17
Slide 18: Three precedent setting commitments
Alignment of Interests For personal use only ▪ Three precedent setting commitments: 1. The Manager is paying for all upfront listing costs of VG1 2. All operating costs (where possible) are paid for by the Manager 3. The owners of VGI Partners will reinvest all performance fees earned on an after-ta
Slide 19: For personal use only
For personal use only ▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 19
Slide 20: Shareholder Engagement
Shareholder Engagement For personal use only Upcoming Investor Events Date Location Sydney Briefing 18 October 2018 Customs House Perth Briefing 22 October 2018 Crown Hotel, Burswood Adelaide Briefing 24 October 2018 Hilton Hotel Melbourne Briefing 31 October 2018 Novotel Hotel Brisbane Briefing 1 N
Slide 21: Questions
For personal use only ▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 21
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