Regal Investment Fund · ASX:RF1
Regal Investment Fund — Investor Presentation (April 2025)
47 slides from Regal Investment Fund's investor presentation, Apr 16, 2025
Slide 1: Regal Investment Fund (ASX:RF1) Investor Update & Q&A
Regal Investment Fund (ASX:RF1) Investor Update & Q&A | 16 April 2025 This presentation deck accompanies a webinar scheduled for 11:00am AEST on 16 April 2025. To view the webinar, please click on the link here to register. To access the recording, or should you have queries relating to Regal, pleas
Slide 2: Investor Update & Q&A
Investor Update & Q&A Regal Investment Fund April 2025
Slide 3: Disclaimer
Disclaimer Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Regal Investment Fund and has authorised the issue of this document (Information). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22607 797 615), a publicly liste
Slide 4: Contents
Contents Page Section Page 6 Welcome & Regal Update Page 11 RF1 Update Page 16 Market Update Page 31 Market Neutral Strategy Page 35 Resources Royalties Page 40 Water Strategy Page 45 Q&A Discussion 4
Slide 5: Speakers
Speakers BRENDAN O’CONNOR PHILIP KING SIMON KLIMT CHARLIE AITKEN Chief Executive Co-Founder & CIO Portfolio Manager Investment Director Officer and Long/Short Equities Regal Resources Regal Partners Managing Director Regal Funds Royalties Fund Regal Partners RF1 Investment RF1 Investment Committee M
Slide 6: Introduction
Introduction Brendan O’Connor, CEO and Managing Director, Regal Partners RF1 Investment Committee Member
Slide 7: The Regal Investment Fund (RF1) listed in 2019
The Regal Investment Fund (RF1) listed in 2019 to provide investors with exposure to a diversified selection of alternative investment strategies managed by Regal Its objective is to produce attractive risk-adjusted absolute returns over a period of more than five years, with limited correlation to
Slide 8: Update to RF1 Investment Guidelines
Update to RF1 Investment Guidelines Exposure Updated guidelines 1 Concentration • 2.5% single stock position limit. Approval beyond this required from Investment Committee • Lower limits for stocks with binary outcomes 2 Commonality • Global Long Short Equity CIO, Paul Moore and CIO Income Strategie
Slide 9: Expansion of the Investment Committee
Expansion of the Investment Committee Regal Investment Fund (ASX:RF1) Philip King Adrian Redlich Paul Moore Brendan O’Connor James Persson Investment Committee Member Investment Committee Member Investment Committee Member Investment Committee Member Investment Committee Member Philip King is the Ch
Slide 10: Regal Partners Limited (RPL) Overview
Regal Partners Limited (ASX:RPL) Overview Regal Partners Limited is an ASX-listed, specialist alternative investment manager with $17.9 billion1 in funds under management and commitments. $17.9bn RPL >95 FUM1 & commitments ASX ticker Investment professionals2 • The Group manages a broad range of inv
Slide 11: RF1 Update
RF1 Update Philip King, Co-Founder & CIO Long/Short Equities, Regal Funds
Slide 12: RF1 performance since inception
RF1 performance since inception Adjusted NAV and share price Distribution A$/share RF1 PERFORMANCE SINCE LISTING A$/share Launch date 4.00 1.40 3 3 Adjusted NAV (LHS) Adjusted share price (LHS) Distribution (RHS) 17 June 2019 3.50 1.20 Fund size1 $657m 3.00 1.00 Annualised Return Since Inception1,2
Slide 13: Opthea (ASX:OPT) share price history
Opthea (ASX:OPT) share price history 3.50 • In June 2024, RF1 participated in a capital raise at $0.40/share 3.00 that provided funding for two Phase III trials • The share price increased to $1.14 at the end of January (+185% on $0.40 placement price), valuing the company at over $1b 2.50 • Unfortu
Slide 14: ASX-listed alternative investment vehicle universe
ASX-listed alternative investment vehicle universe 12 MONTH PRE-TAX NTA RETURN1 5% 0% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% Peer 1 -5% -10% PREMIUM/DISCOUNT TO NTA2 -15% Peer 2 Peer 4 -20% Peer 5 -25% -30% Peer 6 Peer 7 -35% Peer 3 Source: Bell Potter analysis. Vertical axis represents the share p
Slide 15: Increasing allocations to uncorrelated investment strategies
Increasing allocations to uncorrelated investment strategies RF1 STRATEGY ALLOCATIONS RF1 STRATEGY ALLOCATIONS As at 31 October 2020 As at 31 March 2025 Strategies added since inception: Global Long Market Water Strategy Short Neutral 7% 7% Resources Royalties Global Alpha 9% Private Credit Market N
Slide 16: Market Update
Market Update Philip King, Co-Founder & CIO Long/Short Equities, Regal Funds
Slide 17: Market update
Market update Key takeaways 1 ‘Liberation Day’ triggers liquidation – – Real damage to the US economy and global trade hard to quantify ‘Strong-arm’ negotiating tactics may have backfired 2 Market sell-off may provide good buying opportunity – – Uncertainty will cause damage in short-term but the US
Slide 18: Market sell-off may create buying opportunity
Market sell-off may create buying opportunity Performance of S&P 500 Index vs ASX 200 Index 200 S&P 500 ASX 200 “You don’t catch the falling knife. You wait for it to stick in the floor, 180 then you pick up the vibrating knife” – Charlie Aitken (8 April 2025) 160 Index levels rebased to 100 140 120
Slide 19: Speed of sell-offs accelerating
Speed of sell-offs accelerating Sell-offs: 2000-02 2007-09 2018 2020 2022 2025 110 100 Index levels rebased to 100 as at peak 90 2025TD: -19% 80 2018: -20% 2022: 70 -25% 2020: 60 -34% 50 2000-02: 2007-09: -49% -57% 40 0 100 200 300 400 500 600 700 800 900 Days following peak Source: Bloomberg as at
Slide 20: S&P 500: Market recoveries
S&P 500: Market recoveries Sell-offs: 2000-02 2007-09 2018 2020 2022 220 2020: +99% 200 2007-09: +95% Index levels rebased to 100 as at trough 180 2022: +63% 160 2018: +58% 2000-02: 140 +44% 120 100 80 0 100 200 300 400 500 600 700 Days (2 years post trough) Source: Bloomberg. Returns are based on p
Slide 21: VIX surges to 5-year high
VIX surges to 5-year high 90 80 70 60 50 40 30 20 10 0 2004 2008 2012 2016 2020 2024 Source: Bloomberg as at 9 April 2025. Past performance is not a reliable indicator of future performance. It should not be relied upon as (and is not) an indication of future performance. 21
Slide 22: Australia – Lowest growth but still high valuation
Australia – Lowest growth but still high valuation 30.0x 25.0x NASDAQ 20.0x S&P 500 FY25 P/E Nikkei ASX 200 15.0x TSX Comp DAX Euro Stoxx 50 CAC 40 10.0x FTSE MIB Hang Seng 5.0x 5.0% 10.0% 15.0% 20.0% FY26 EPS growth Source: Bloomberg as at 11 April 2025. Past performance is not a reliable indicator
Slide 23: Superior earnings growth in the Regal Small Companies portfolio
Superior earnings growth in the Regal Small Companies portfolio CONSENSUS FY26 EPS GROWTH (%) 100% Top 10 ASX companies by market cap Regal Small Companies1 90% 80% 70% 60% 50% 48% 40% 30% 20% 10% 5% 0% Rio Tinto Select Harvests CSL Macquarie Group Myer Aussie Broadband Wesfarmers Integral Diagnosti
Slide 24: Australian small caps may be starting to catch up
Australian small caps may be starting to catch up Performance of the ASX Small Ordinaries Index vs ASX 100 Index 130 S&P/ASX 100 ASX Small Ordinaries 120 110 S&P/ASX 100 +3% 100 90 ASX Small Ords -18% 80 70 Jul-21 Dec-21 Jun-22 Nov-22 May-23 Oct-23 Apr-24 Sep-24 Mar-25 Source: Bloomberg as at 9 Apri
Slide 25: Passive investing has compounded growth 'bubble'
Passive investing has compounded growth ‘bubble’ % ppts S&P Growth – S&P Value % ppts Russell 1000 Growth – Russell 1000 Value (Quarterly) (Quarterly) 30 30 20 20 10 10 0 0 -10 -10 -20 -20 2000 2004 2008 2012 2016 2020 2024 2000 2004 2008 2012 2016 2020 2024 S&P Growth / S&P Value Russell 1000 Growt
Slide 26: Spot the difference
Spot the difference Share price Share price A$ £ 200 500 400 150 300 100 200 50 100 0 0 1998 2004 2009 2014 2019 2025 1998 2004 2009 2014 2019 2025 Loans $975b $937b Equity $75b $80b Consensus FY26 NPAT $10.5b $11.7b Market cap $250b $82b FY26 P/E 24x 7x Source: Bloomberg as at 9 April 2025. Share p
Slide 27: Passive – Buy high, sell low
Passive – Buy high, sell low ASX200 Index additions and deletions Additions Deletions 12-month performance 12-month performance Ticker Ticker pre-event pre-event MSB 736% CHN -82% AD8 158% SYA -81% VAU 150% CXO -80% SPR 136% AD8 -65% CU6 123% CRN -62% GYG 80% STX -52% SDR 77% WBT -47% TPW 27% SPK -3
Slide 28: February 2025: Unprecedented results day volatility
February 2025: Unprecedented results day volatility Share price trading range on results day 7.5% 7.1% 7.0% 6.5% Volatility (%) 6.0% 5.5% 5.0% Feb-22 Aug-22 Feb-23 Aug-23 Feb-24 Aug-24 Feb-25 Source: UBS, FactSet. High price on results day relative to low price for average stocks. Past performance i
Slide 29: The ASX Metals and Mining index has fallen sharply
The ASX 300 Metals and Mining index has fallen sharply Mining equities are trading around recent multi-year lows 7,000 6,500 6,000 5,500 5,000 4,500 2022 2022 2023 2023 2024 2024 2025 Source: Bloomberg as at 9 April 2025. Past performance is not a reliable indicator of future performance. It should
Slide 30: Gold price making record highs, gold miners look poised to outperform
Gold price making record highs in AUD and USD, gold miners look poised to outperform A$ Gold (A$) GDX Index vs Gold price (US$) 5,500 300 Rebased to 100 GDX Index Gold (US$) 5,000 250 4,500 4,000 200 3,500 3,000 150 2,500 2,000 100 1,500 1,000 50 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 202
Slide 31: Market Neutral Strategy
Market Neutral Strategy Philip King, Co-Founder & CIO Long/Short Equities, Regal Funds
Slide 32: Market Neutral Strategy – Performance since inception
Market Neutral Strategy – Performance since inception Performance since inception – Market Neutral Strategy (gross of fees) vs Regal Tasman Market Neutral Fund (net of fees) Logarithmic scale Regal Tasman Market Neutral Fund 1 Market Neutral Strategy within RF1 2 1,000 Market Neutral Strategy within
Slide 33: Strong returns following GFC and COVID drawdowns
Strong returns following GFC and COVD drawdowns GFC – Regal Tasman Market Neutral Fund (net of fees)1 COVID – Market Neutral Strategy within RF1 (gross of fees)2 160 180 Drawdown Jun-08 to Dec-08 -23% 170 Drawdown Jan-20 to Mar-20 -37% 150 Recovery Dec-08 to Dec-10 +101% Recovery Mar-20 to Mar-22 +1
Slide 34: Resources Royalties
Resources Royalties Simon Klimt, Portfolio Manager, Regal Resources Royalties Fund
Slide 35: Regal Resources Royalties Fund
Regal Resources Royalties Fund Overview and Introduction INVESTMENT OPPORTUNITY Established Track Record of Positive Outlook Strong Pipeline of Future Performance For Commodities Investments Asset class provides a unique Further investment in natural resource The Strategy can take advantage of a opp
Slide 36: Royalty investing overview
Royalty investing overview How the Regal Resources Royalties Fund invests The Regal Resources Royalties Fund acquires existing royalties and creates new royalties The Regal Resources Royalties ACQUIRE EXISTING ROYALTIES CREATE NEW ROYALTIES Fund acquires and • Predominantly in-production but can be
Slide 37: Since inception returns and a strong track record of distributions
Since inception returns and a strong track record of distributions of the Fund D D D D D D D Unit Price (inception) $1.00 D Unit Price: $1.863 Cash Distributions Paid: $0.979 D Annualised return: 24.71% D D Source: Regal. Performance as of 31 March 2025. Annualised return assumes reinvestment of dis
Slide 38: How we select Royalties
How we select Royalties Robust and repeatable investment process developed over a decade of royalty investing by the managers Investment Guidelines Based on Fundamental Analysis Robust Due Diligence and Approval Process Resource quality Upside potential Independent technical review Tax and accountin
Slide 39: Water Strategy
Water Strategy Charlie Aitken, Investment Director, Regal Partners
Slide 40: Kilter Water strategy – Performance vs traditional assets
Kilter Water strategy – Performance vs traditional assets Attractive risk-adjusted returns with low correlation to traditional asset classes KILTER WATER STRATEGY HAS DELIVERED HIGHER RETURNS AT LOWER KILTER WATER STRATEGY RETURN PROFILE IS UNCORRELATED TO VOLATILITY VS OTHER ASSET CLASSES TRADITION
Slide 41: Market outlook summary
Market outlook summary 1 INCREASING WATER DEMAND: Water needs of permanent horticulture (with inelastic demand) continues to escalate. Almonds alone are expected to drive an 18% increase in water usage in the SMDB by 20301 2 REDUCED SUPPLY 1: Climate change long-term reduction in winter rainfall exp
Slide 42: Dry conditions = Falling water storage levels
Dry conditions = Falling water storage levels – The Southern Murray-Darling Basin (SMDB) has experienced significant rainfall deficits over the last 8 months. Winter/spring rainfall (Jun-Sep) was below the ten-year average in the SMDB – The rapid drawdown of water storages continues, and allocation
Slide 43: Government buybacks could generate tailwinds
Government buybacks could generate tailwinds SMDB ANNUAL ENTITLEMENT TRADE VOLUME COMPARED TO BUYBACK TARGETS – Govt buyback shortfall > 600 GL/yr – Equivalent to 8 years total market entitlement trade – First tender for 70GL/yr closed Sept 2024. Volume sought is equivalent to 2023-24 turnover – Sec
Slide 44: Investor Q&A
Investor Q&A Submit your questions via the side menu on the webcast PHILIP KING SIMON KLIMT CHARLIE AITKEN player Co-Founder & CIO Portfolio Manager Investment Director Long/Short Equities Regal Resources Regal Partners Regal Funds Royalties Fund RF1 Investment Committee Member 44
Slide 45: RF1 portfolio & investment characteristics
RF1 portfolio & investment characteristics As at 31 March 2024 SECTOR LONG SHORT NET CURRENT EXPOSURE BY STRATEGY Communication Services 3 -3 1 (NAV) 6 -9 -3 Percentage of Positive Months Consumer Discretionary 70% Consumer Staples 3 -2 1 Market Neutral Diversified 1 -0 1 7% Energy 3 -3 1 Global Alp
Slide 46: Disclaimer
Disclaimer Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Regal Investment Fund and has authorised the issue of this document (Information). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22607 797 615), a publicly liste
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