AMCIL Limited · ASX:AMH
AMCIL — Shareholder Meeting (October 2018)
27 slides from AMCIL's shareholder meeting presentation, Oct 11, 2018
Slide 1: 2018 Annual General Meeting Presentation
11 October 2018 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 2018 Annual General Meeting Presentation Dear Sir / Madam Please find attached a presentation that wil
Slide 2: Annual General Meeting 2018 Presentation
For personal use only Annual General Meeting 2018 Presentation
Slide 3: Disclaimer
Disclaimer For personal use only 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: Financial Results
For personal use only Financial Results Annual General Meeting 2018
Slide 5: Financial Results
Financial Results For personal use only Management expense ratio of 0.69% Annual General Meeting 2018
Slide 6: Tax Legislation – Franking Credits
Tax Legislation – Franking Credits • As previously highlighted the Federal Government was considering retrospective For personal use only legislation to prevent Investment Companies claiming the lower company tax rate – this has now been legislated. • The last two final dividends, paid in August 201
Slide 7: Labor Party Policy on ending refundability of franking credits – our response
Labor Party Policy on ending refundability of franking credits – our response For personal use only • AMCIL has provided a template letter on its website for shareholders to write to their parliamentary representatives - personal examples are likely to have the biggest impact on local members. • We
Slide 8: The Investment Approach
For personal use only The Investment Approach Annual General Meeting 2018
Slide 9: AMCIL's Approach
AMCIL’s Approach For personal use only Focused portfolio covering large and small companies. Our size means small companies can have an equally important impact on portfolio returns as large ones. Use of the buy and write option strategies and small trading portfolio to generate additional fully fra
Slide 10: Profile of the Portfolio by Value – as at September 2018
Profile of the Portfolio by Value – as at September 2018 For personal use only Annual General Meeting 2018
Slide 11: Portfolio Performance Including Benefit of Franking Credits
Portfolio Performance Including Benefit of Franking Credits* – to 30 September 2018 For personal use only After tax and expenses. Ignores benefits of LIC tax credits. * Assumes an investor can take full advantage of the franking credits. Annual General Meeting 2018
Slide 12: Components of Share Price Return – Years to September 2018
Components of Share Price Return – 10 Years to 30 September 2018 For personal use only * Assumes an investor can take full advantage of franking credits. Annual General Meeting 2018
Slide 13: How AMCIL Invests – What we Look for in Companies
How AMCIL Invests – What we Look for in Companies Board and management, financial position, as well For personal use only 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 14: The Portfolio is Positioned Around the Following Key Attributes
The Portfolio is Positioned Around the Following Key Attributes Core Holdings For personal use only Large companies with strong Businesses with long term growth structural positions. opportunities, many of which are outside top 20 ASX. Annual General Meeting 2018
Slide 15: The Portfolio is Positioned Around the Following Key Attributes continued
The Portfolio is Positioned Around the Following Key Attributes continued Strategic Holdings For personal use only Companies in a Latent value Income, including cyclical/turnaround phase in assets option strategies with earnings upside Annual General Meeting 2018
Slide 16: Some Recent Adjustments to the Portfolio
Some Recent Adjustments to the Portfolio New Additions Complete Sales For personal use only Annual General Meeting 2018
Slide 17: Top Investments as at September 2018
Top 20 Investments as at 30 September 2018 Rank Company % of Portfolio For personal use only 1 CSL 5.9% 2 BHP 5.5% 3 Lifestyle Communities 3.6% *Based on net operating result 4 Westpac Banking Corporation* 3.6% 5 Macquarie Group 3.6% 6 Mainfreight 3.5% 7 Qube Holdings 3.1% 8 Oil Search* 3.1% 9 Natio
Slide 18: Top Investments as at September 2018 continued
Top 20 Investments as at 30 September 2018 continued Rank Company % of Portfolio For personal use only 11 James Hardie Industries 2.8% 12 Transurban Group 2.7% 13 CYBG 2.5% 14 Freedom Foods Group 2.4% 15 Brickworks 2.3% 16 Carsales.com 2.2% 17 Woolworths Group* 2.2% 18 IRESS* 2.2% 19 Computershare*
Slide 19: The Market and Closing Comments
For personal use only The Market and Closing Comments Annual General Meeting 2018
Slide 20: Small and Mid Caps Continue to Drive Market Returns
Small and Mid Caps Continue to Drive Market Returns – Year to 30 September 2018 For personal use only Index Source: FactSet Annual General Meeting 2018
Slide 21: Divergence of Year Returns Across Sectors
Divergence of 1 Year Returns* to 30 September 2018 Across Sectors – ‘Growth’ Sectors at Elevated Levels For personal use only *Includes dividends Annual General Meeting 2018
Slide 22: The market has been willing to pay up for high PE stocks
The market has been willing to pay up for high PE stocks which have outperformed low PE names by 25% year to date For personal use only Source: FactSet, UBS Annual General Meeting 2018
Slide 23: Details of Share Purchase Plan (SPP) Announced September
Details of Share Purchase Plan (SPP) Announced 20 September For personal use only • Up to a maximum of $15,000 per registered shareholder. • Shares issued under the SPP will rank equally for future dividends. • Price determined by VWAP 5 days up to including closing date – no discount. • Record date
Slide 24: Share Price Relative to Net Asset Backing
Share Price Relative to Net Asset Backing For personal use only Annual General Meeting 2018
Slide 25: Lift in option market volatility providing opportunities
More recently we have also seen a lift in option market volatility which is beginning to provide some opportunities For personal use only Index Volatility Annual General Meeting 2018
Slide 26: Issues to Consider
Issues to Consider For personal use only • High prices for many ‘growth stocks’. • Rising interest rates globally (although unlikely in Australia). • China, including trade tariffs and commodity prices. • Domestic economy, including impact of elevated debt. • Financial Services enquiry and potential
Slide 27: For personal use only
For personal use only