AMCIL Limited · ASX:AMH
AMCIL — Investor Presentation (March 2024)
30 slides from AMCIL's investor presentation, Mar 13, 2024
Slide 1: Information Meetings – Presentation
13 March 2024 The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street For personal use only Sydney NSW 2000 Electronic Lodgement AMCIL Limited Information Meetings – Presentation Dear Sir / Madam Please find attached the presentation to be given a
Slide 2: Shareholders' Briefing March 2024
For personal use only Shareholders’ Briefing March 2024 Shareholder Meeting / March 2024
Slide 3: Agenda
Agenda For personal use only Overview of the LIC’s and Investment Process Mark Freeman Portfolio Updates: Djerriwarrh Brett McNeill Mirrabooka Kieran Kennedy AMCIL Mark Freeman Outlook Mark Freeman Shareholder Meeting / March 2024 2
Slide 4: Disclaimer
Disclaimer Djerriwarrh Investments Limited, Mirrabooka Investments Limited and AMCIL Limited and their service provider Australian For personal use only Investment Company Services Limited (AICS) (AFSL 303209), their related entities and each of their respective directors, officers and agents (toget
Slide 5: Overview of our LICs and Investment Process
For personal use only Overview of our LICs and Investment Process Shareholder Meeting / March 2024
Slide 6: Investment Objectives
Investment Objectives To provide an enhanced level of fully franked income that is higher than that available from the S&P/ASX 200 utilising option strategies. For personal use only Attractive total return including capital growth over the medium to long term. Specialising in investing in smal
Slide 7: Investment Approach
Investment Approach Attributes of a high-quality company Why this matters: that we seek: For personal use only • Industry leadership position (or developing one) • The presence of these factors drives a competitive advantage • Unique assets that are hard to replicate • Conservative balance sheets (l
Slide 8: LIC share prices trading at discount to Net Asset Backing
A current feature of the market is that the share prices of many LICs are trading at a discount relative to Net Asset Backing – 29 February 2024 For personal use only Shareholder Meeting / March 2024 7
Slide 9: Djerriwarrh
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Slide 10: Djerriwarrh: Enhanced Yield
Djerriwarrh: Enhanced Yield For personal use only At 29 February 2024. Assumes an investor can take full advantage of the franking credits. Yield based on the interim dividend and final dividend paid – in total 15 cents per share. Shareholder Meeting / March 2024 9
Slide 11: Djerriwarrh: Earnings and Dividends
Djerriwarrh: Earnings and Dividends For personal use only Shareholder Meeting / March 2024 10
Slide 12: Djerriwarrh: Portfolio Performance to February 2024
Djerriwarrh: Portfolio Performance to 29 February 2024 For personal use only * Assumes an investor can take full advantage of the franking credits. DJW’s portfolio return is also calculated after management fees, income tax and capital gains tax on realised sales of investments. It should be noted t
Slide 13: Djerriwarrh: Market Conditions and Option Activity
Djerriwarrh: Market Conditions and Option Activity S&P/ASX 200 Price Index For personal use only Source: ASX200 data from FactSet Shareholder Meeting / March 2024 12
Slide 14: Djerriwarrh: Portfolio Update
Djerriwarrh: Portfolio Update Constructing a diversified portfolio of high-quality companies across different sectors and with the appropriate balance of Income and Growth is the key for Djerriwarrh to deliver on its Investment Objectives in a variety of market conditions. For personal use only Key
Slide 15: Mirrabooka
For personal use only
Slide 16: Portfolio Performance – Per Annum Returns to February 2024
Portfolio Performance – Per Annum Returns to 29 February 2024 For personal use only * Assumes an investor can take full advantage of the franking credits. Mirrabooka's portfolio return is also calculate after management fees, income tax and capital gains tax on realised sales of investments. It shou
Slide 17: Portfolio performance – a longer term perspective
Portfolio performance – a longer term perspective (per annum returns to 29 February 2024) For personal use only Assumes an investor can take full advantage of the franking credits. Past performance not indicative of future performance. Shareholder Meeting / March 2024 16
Slide 18: Factors contributing to 2024 outperformance: Strong rebound in core holdings
Factors contributing to 2024 outperformance: Strong rebound in core holdings Jan 2022 – Dec 2022 Jan 2023 – Feb 2024 -52% +130% For personal use only -57% +176% -50% +61% -15% +210% -55% +136% -38% -47% +90% 89% Jan 2022 – Dec Jan 2023 – Feb -41% +49% 2022 Average 2024 Average Return -13% +78% Retur
Slide 19: Portfolio Outlook – How we are currently investing
Portfolio Outlook – How we are currently investing Valuation of the highest quality, highest growth companies is looking stretched again. For personal use only We’ve continued to seek the best relative long-term value in companies that meet our quality threshold. We have recently found these in
Slide 20: Mirrabooka Top Holdings – February 2024
Mirrabooka Top 20 Holdings – 29 February 2024 % of % of Company Ownership Period Company Ownership Period Portfolio Portfolio 1 5.7% 6.5 yrs 11* 2.4% 12.5 yrs For personal use only 2* 4.0% 13 yrs 12 ALS 2.3% 17.5 yrs 3* 3.7% 4 yrs 13* 2.3% 6 yrs 4* 3.7% 7 yrs 14* 2.0% 3.5 yrs 5 3.5% 8 yrs 15* 2.0% 9
Slide 21: AMCIL
For personal use only
Slide 22: The Key Unique Benefits of an Investment in AMCIL
The Key Unique Benefits of an Investment in AMCIL The key unique benefits of AMCIL are the combination of: For personal use only Focused portfolio invested in quality companies where holding size is not determined by the index weighting (mix of large, medium and small companies) Alignment of interes
Slide 23: Portfolio Performance – Per Annum Returns to February 2024
Portfolio Performance – Per Annum Returns to 29 February 2024* For personal use only * Assumes an investor can take full advantage of the franking credits. AMCIL’s portfolio return is also calculated after management fees, income tax and capital gains tax on realised sales of investments. It should
Slide 24: Major Transactions – Financial Year to Date
Major Transactions – Financial Year to Date BUYS SELLS Seeking value in Stalwarts Captured value For personal use only (Exit) (Exit) Seeking value in Growth stocks (Trimmed) (Reduced) (Continuing story) (Price dislocation) (Continuing story – small position) Building stakes in businesses with owner
Slide 25: Portfolio Well Positioned For The Future
Portfolio Well Positioned For The Future AMCIL’s portfolio is well placed to navigate a wide range of economic outcomes: For personal use only Growth Companies Stalwart Companies Income Companies ‘Asset Play’ Companies BLOCK Shareholder Meeting / March 2024 24
Slide 26: Outlook
For personal use only Outlook Shareholder Meeting / March 2024
Slide 27: What were the themes of the recent reporting season?
What were the themes of the recent reporting season? For personal use only Revenue Costs Key pricing trends Typically slowed in line with Greater focus on cost control helped Price rises taken to maintain margins expectations. deliver higher than expected – particularly in insurance, online earnings
Slide 28: Where the market is currently trading against the long term
Where the market is currently trading against the long term ASX 200 Index Price Earnings Ratio ASX 200 Index Dividend Yield For personal use only Times Per cent Average14.6 times Average 4.6% Source: FactSet Shareholder Meeting / March 2024 27
Slide 29: Outlook
Outlook US and Australian economic data remains healthy. For personal use only The potential for rising bond yields is a risk, improving growth is an offset. However, optimism is supported by the expectation that the next move in cash rates is down. Overall results for portfolio holdings were
Slide 30: Questions
For personal use only Questions Shareholder Meeting / March 2024 29