Pacific Current Group Ltd · ASX:PAC
Pacific Current — Shareholder Meeting (October 2015)
46 slides from Pacific Current's shareholder meeting presentation, Oct 15, 2015
Slide 1: Annual General Meeting 15 October 2015
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED // N O R T H E R N L I G H T S C A P I TA L G R O U P ANNUAL GENERAL MEETING 15 OCTOBER 2015 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP
Slide 2: Agenda
AgendaINTERIM RESULTS 31 DECEMBER 2014 1. Chairman’s address 2. FY15 Review 3. Investment Strategy 4. Sales Strategy 5. Seizert Capital Partners 6. Concluding Remarks 7. Formal Items of Business TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 2
Slide 3: Chairman's Address
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED 1. Chairman’s INTERIM RESULTSAddress 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 3
Slide 4: Chairman's Address: A Transformational Year
INTERIM RESULTS 1. Chairman’s Address: A Transformational Year 31 DECEMBER 2014 » TRG and NLCG completed in November 2014, creating a greater diversified portfolio, greater leverage, broader management expertise, greater distribution capabilities and other strategic benefits » Underlying NPAT of $18
Slide 5: Chairman's Address: Dividends
INTERIM RESULTS 1. Chairman’s Address: Dividends 31 DECEMBER 2014 Dividends Increased 60 » Final dividend 28 cps, 52 50 fully franked 50 » Payout ratio of 71% 40 40 against underlying NPAT 34 34 (dividend policy 60-80%) 30 cps (A$) 20 10 0 2011 2012 2013 2014 2015 Interim Final TREASURY GROUP LIMITE
Slide 6: Chairman's Address: Market Environment Shifting
INTERIM RESULTS 1. Chairman’s Address: Market Environment Shifting 31 DECEMBER 2014 » Australia: » Interest rates low in Australia and expected to decline further • Australian dollar materially lower since end of financial year and diversifying the business to a larger proportion of US denominated e
Slide 7: Sale of RARE post-June
INTERIM RESULTS 1. Chairman’s Address: Sale of RARE post-June 31 DECEMBER 2014 » Conditional sale of RARE in July, post year-end » Sale of RARE Infrastructure delivering greater than 33x cash on cash return over 9 years of ownership » Completion expected ahead of expectations: end of October vs. pre
Slide 8: FY15 Review
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED 2. FY15 Review INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 8
Slide 9: Significant Outcomes
INTERIM RESULTS 2. Review of 2015: Significant Outcomes 31 DECEMBER 2014 » Underlying earnings up 32.9%. Statutory NPAT of 138.7m, materially higher due to non-recurring abnormal gains » Performance of key boutiques strong, particularly RARE and IML. Material earnings contribution from Seizert and A
Slide 10: Financial Results
INTERIM RESULTS 2. Review of 2015: Financial Results 31 DECEMBER 2014 Treasury Group underlying current year vs prior year results TRG TRG » TRG Statutory NPAT for FY15 $138.7m Underlying Underlying Variance P&L Highlights (A$m) FY15 FY14 % » Actual FY15 figures include 7 months results post merger
Slide 11: Financial Results: Significant non-recurring items
INTERIM RESULTS 2. Review of 2015: Financial Results 31 DECEMBER 2014 Significant non-recurring items in FY15 » Gain on sale is mark to Treasury Group P&L (A$m) FY15 FY14 market adjustment of all assets and liabilities at the Profit After Tax 138.7 13.1 time of transfer to Aurora Gain on sale net of
Slide 12: Financial Results: Reconciliation of non-cash items
INTERIM RESULTS 2. Review of 2015: Financial Results 31 DECEMBER 2014 Reconciliation of major non-cash items at TRG/Aurora Treasury Group P&L (A$m) FY15* TRG Share of Profit/(Loss) from Aurora (4.2) Impairment of WHV by Aurora (TRG share) 10.8 Amortisation of identifiable intangibles (TRG 0.9 share)
Slide 13: Financial Results – Aurora Trust
INTERIM RESULTS 2. Review of 2015: Financial Results – Aurora Trust 31 DECEMBER 2014 Illustrative aggregation of portfolio P&L as if all boutiques were 100% owned Pro-forma » Total FUM of $49.0bn at 30 June Aggregate P&L for Boutiques (A$m) FY15 2015, excluding WHV & Trilogy Year end FUM ($bn)* 34.8
Slide 14: Financial Results – Aurora Trust: Contribution by boutique
INTERIM RESULTS 2. Review of 2015: Financial Results – Aurora Trust 31 DECEMBER 2014 Contribution by boutique – pro forma for 12 months A$49.0bn » Well diversified portfolio of 100% Products and strategies 90% » Broad client diversification 80% Others (14 boutiques) » Broad geographic diversificatio
Slide 15: Investment Strategy
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED 3. Investment INTERIM RESULTSStrategy 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 15
Slide 16: Investment Strategy: Overview
INTERIM RESULTS 3. Investment Strategy: Overview 31 DECEMBER 2014 » Generally ultra-long-term holders of assets » Seek to make two types of investments • Core holdings in larger strategic partnerships • Smaller capital commitments to highly scalable opportunities » Will from time-to-time divest • Wh
Slide 17: Investment Strategy: Overview, continued
INTERIM RESULTS 3. Investment Strategy: Overview, continued 31 DECEMBER 2014 » Constantly strive to enhance portfolio diversification • Many vectors of diversification that we consider • Most important is balance of long-term contractual revenue with long-only “optionality” TREASURY GROUP LIMITED //
Slide 18: Investment Strategy: Sunrise / Sunset
INTERIM RESULTS 3. Investment Strategy: Sunrise / Sunset 31 DECEMBER 2014 SUNRISE SUNSET • International/global/emerging markets • Domestic equities, particularly equities large cap • Liquid alternatives • Defined benefit plans • Private Capital (equity, debt, real estate) • Real assets • Traditiona
Slide 19: Investment Strategy: Deal Pipeline
INTERIM RESULTS 3. Investment Strategy: Deal Pipeline 31 DECEMBER 2014 » Sourced more than 130 opportunities, of which approximately: • 45 moved through to intensive due diligence; • 25 added to current prospect list; • 6 offered term sheets; • 14 countries » Robust existing deal pipeline with oppor
Slide 20: Sales Strategy
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED 4. Sales Strategy INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 20
Slide 21: Sales Strategy: Building Businesses
INTERIM RESULTS 4. Sales Strategy: Building Businesses 31 DECEMBER 2014 » Builders of asset management businesses • Supporting boutiques with significant expertise and experience • Creating stability, diversity and growth of FUM and revenue • Generating enterprise value for boutiques and Aurora • Al
Slide 22: Sales Strategy: Global Market AUM (USD)
TEAM INTERIM RESULTS 4. Sales Strategy: Global Market AUM (USD) 31 Global D E CUnder Assets E M B Management: ER 2014 $68.7T in 2013 Assets under Management TRG / NL GLOBAL STAFF 6 Institutional Sales 3 Sales Support 3 Marketing Source: Boston Consulting Group, Global Asset Management 2014: Steering
Slide 23: Sales Strategy: Strong Activity Drives Results
INTERIM RESULTS 4. Sales Strategy: Strong Activity Drives Results 31 DECEMBER 2014 » Global sales and marketing team conducts 1,000+ meetings annually across the Current Pipeline Breakdown world of Distributed Boutiques » New business development presence in the largest markets: AUS, US, CAN, UK and
Slide 24: Sales Strategy: Growth in Core and Emerging Boutiques
INTERIM RESULTS 4. Sales Strategy: Growth in Core and Emerging Boutiques 31 DECEMBER 2014 Core Boutiques » Our distributed core managers (RARE, IML, and Seizert) have experienced 5-year compounded annual growth rate (FUM) of 15 to 30% » We will continue to focus on facilitating solid FUM expansion y
Slide 25: Sales Strategy: Business Building with Seizert
INTERIM RESULTS 4. Sales Strategy: Business Building with Seizert 3 1 D Eof Highlights CE M B E R 2partnership strategic 014 include: $6,000 In 2012 Seizert Mid $5,000 Cap was ranked #1 for Accelerated AUM institutional inflows in $4,000 the US* growth since $3,000 partnership was formed $2,000 in D
Slide 26: Seizert Capital Partners
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED 5. Seizert Capital INTERIM RESULTS Partners 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 26
Slide 27: Gerry Seizert Introduction
INTERIM RESULTS 5. Seizert Capital Partners: Gerry Seizert Introduction 31 DECEMBER 2014 » Co-founder of Seizert Capital Partners in 2000 » Chartered Financial Analyst and Chartered Investment Counselor » Held various positions at Munder Capital Management from 1995 -1999: Co-CEO, Managing Partner,
Slide 28: Seizert Capital Partners: Firm Overview
INTERIM RESULTS 5. Seizert Capital Partners: Firm Overview 31 DECEMBER 2014 » Assets under management of USD $3.8 billion (9/30) » Dedicated long-only US value investors focused on quality companies » Concentrated strategies with a long-term perspective and research-driven culture with disciplined i
Slide 29: Seizert Capital Partners: Robust Investment Team
INTERIM RESULTS 5. Seizert Capital Partners: Robust Investment Team 31 DECEMBER 2014 YEARS ROLE EXPERIENCE PREVIOUS EXPERIENCE Munder Capital Management, Managing Partner and Managing Partner CIO – Equities Gerald Seizert, CFA, CIC 40 Years Portfolio Manager Loomis, Sayles & Co., Managing Partner Ed
Slide 30: Seizert Capital Partners: Investment Expertise
INTERIM RESULTS 5. Seizert Capital Partners: Investment Expertise 31 DECEMBER 2014 » Consistent and disciplined process has been used for over 15 years by all team members at the firm, across all strategies » We believe value factors have historically outperformed over time – focus on companies wher
Slide 31: Concluding Remarks
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED 6. Concluding INTERIM RESULTSRemarks 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 31
Slide 32: Concluding Remarks
INTERIM RESULTS 6. Concluding Remarks 31 DECEMBER 2014 » Today we have • Given a feel for the complexion of our business • Shown you the depth and quality of the team, as well as the depth of thought that goes into our strategy • Demonstrated the quality of the boutiques that Treasury invested in vi
Slide 33: Introducing Pacific Current
INTRODUCING • Creating clarity around the integrated group • Promoting a shared culture for employees • Ability to build a global brand that reaches audiences in many jurisdictions • It is intended our new ticker on ASX will be PAC I N S P I R AT I O N F O R T H E N A M E PACIFIC the body of water t
Slide 34: Formal Items of Business
INTERIM RESULTS 31 DECEMBER 2014 TREASURY GROUP LIMITED 7. Formal Items INTERIM RESULTS of Business 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 34
Slide 35: Formal items of business: Item 1
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 1: Financial statements and reports » “To receive and consider the Financial Report, the Directors’ Report and the Auditor’s Report for the year ended 30 June 2015.” TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 35
Slide 36: Formal items of business: Item 2
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 2: Adoption of Remuneration Report » “that for the purpose of section 250R(2) of the Corporations Act, the Remuneration Report for the Company and its controlled entities for the year ended 30 June 2015 be adopted.” Proxies have bee
Slide 37: Formal items of business: Item 3a
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 3a: Election of Mr Jeffrey Vincent » “That Mr Jeffery Vincent, a Director appointed on 10 December 2014, retire in accordance with clause 7.1(d) of the Constitution, and being eligible for re- appointment, be elected as a Director.”
Slide 38: Formal items of business: Item 3b
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 3b: Election of Mr Gilles Guérin » “That Mr Gilles Guérin, a Director appointed on 10 December 2014, retire in accordance with clause 7.1(d) of the Constitution, and being eligible for re- appointment, be elected as a Director.” Pro
Slide 39: Formal items of business: Item 3c
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 3c: Election of Mr Joseph Ferragina » “That Mr Joseph Ferragina, a Director appointed on 31 March 2015, retire in accordance with clause 7.1(d) of the Constitution, and being eligible for re- appointment, be elected as a Director.”
Slide 40: Formal items of business: Item 3d
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 3d: Election of Mr Paul Greenwood » “That Mr Paul Greenwood, a Director appointed on 10 December 2014, retire in accordance with clause 7.1(d) of the Constitution, and being eligible for re- appointment, be elected as a Director.” P
Slide 41: Formal items of business: Item 3e
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 3e: Election of Mr Antony Robinson » “That Mr Antony Robinson, a Director appointed on 28 August 2015, retire in accordance with clause 7.1(d) of the Constitution, and being eligible for re- appointment, be elected as a Director.” P
Slide 42: Formal items of business: Item 3f
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 3f: Re-election of Ms Melda Donnelly » “That Ms Melda Donnelly, a Director, retire in accordance with clause 7.1(f) of the Constitution, and being eligible for re-appointment, be re-elected as a Director.” Proxies have been received
Slide 43: Formal items of business: Item 4a
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 4a : Issue of 34,007 shares » 4a: “That for the purposes of ASX Listing Rule 7.4 and for all other purposes, Shareholders ratify and approve the issue of 34,007 ordinary Shares previously issued for nil consideration, as described i
Slide 44: Formal items of business: Item 4b
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 4b : Issue of 487,804 shares » 4b: “That for the purposes of ASX Listing Rule 7.4 and for all other purposes, Shareholders ratify and approve the issue of 487,804 ordinary shares previously issued for nil consideration, as described
Slide 45: Formal items of business: Item 5
INTERIM RESULTS 7. Formal items of business 31 DECEMBER 2014 » Item 5: Change of name and constitution » “That with effect from the day on which the Australian Securities and Investments Commission alters the details of the Company’s registration the name of the Company be changed to Pacific Current
Slide 46: Disclaimer
INTERIM RESULTS Disclaimer 31 DECEMBER 2014 The material in this presentation is general background information about Treasury Group Ltd’s (Company’s) activities current as at the date of this presentation. The information is given in summary form and does not purport to be complete. Information in
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