Pacific Current Group Ltd · ASX:PAC
Pacific Current — Shareholder Meeting (November 2008)
23 slides from Pacific Current's shareholder meeting presentation, Nov 12, 2008
Slide 1: 2008 Annual General Meeting
2008 Annual General Meeting 12 November 2008 Welcome 1 2008 Annual General Meeting Chairman’s Address Mike Fitzpatrick Managing Director’s Address David Cooper (Executive Director) Mark Burgess (CEO) Formal business Questions 2 1
Slide 2: Chairman’s Address
Chairman’s Address Mike Fitzpatrick 3 Managing Director’s Address David Cooper Executive Director Mark Burgess CEO 4 2
Slide 3: 2008 Annual General Meeting: Current pressures
2008 Annual General Meeting 1. Current pressures 2. Business update 3. Introduce Mark Burgess 5 2008 Annual General Meeting Current pressures 6 3
Slide 4: S&P ASX All Ordinaries Index
S&P ASX All Ordinaries Index 5500 5000 4500 4000 -23% 3500 3000 30 June 2008 10 Nov 2008 7 Mixed fortunes Ô 40% fall in equity markets Ô Investment cycle will hurt profitability ¾ Revenue impacted by FUM fall ¾ Some outflows from retail ¾ Cost of enhancing investment capability (Headcount) ¾ Product
Slide 5: Net profit after tax
2008 Annual General Meeting Business update 9 Net profit after tax Variables $18.0m $17.0m Î Net new business $14.4m Î Market movement $12.5m Î Investment performance Funds under management $6.3m have been impacted by the market fall and we therefore $3.7m expect this to be reflected in our earnings
Slide 6: Dividends per share
Dividends per share 70 60 Expecting a lower dividend in 50 2008/09 30 35 40 32 Capital management: 30 The buyback remains open but 27 we are conserving cash as we 20 assess opportunities 25 30 10 25 The balance sheet remain strong 18 13 3 3 0 3 4 5 6 7 8 /0 /0 /0 /0 /0 /0 02 03 04 05 06 07 20 20 20
Slide 7: Quarterly net client cash flows
Quarterly net client cash flows 1,600,000,000 1,400,000,000 1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0 (200,000,000) (400,000,000) 06 06 07 07 07 07 08 08 p0 8 p ec ar un ep ec ar un e l- Se t-D -M r-J l -S t-D -M r-J l-S Ju O c Ja n Ap Ju O c Ja n Ap Ju 13 Headcou
Slide 8: Funds under management
15 Funds under management Trilogy 16 8
Slide 9: Diversification
Diversification Funds under management at 30 June 2006 2008 $9.9 billion $12.1 billion 17 Product lines 9 Australian equities x Structured products 9 Global equities x Hedge funds 9 Asian equities x Fixed income 9 Global listed infrastructure x Mortgage funds 9 Emerging markets x Property x Quantita
Slide 10: Support services for boutique fund managers
Support services • Capital SERVICE PROVIDER • Risk management • Compliance • Human Resources • Operations BOUTIQUE FUND • Administration MANAGERS • Accounting • Marketing • Joint purchasing (including IT services) • Responsible entity 19 Client location 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 20 10
Slide 11: Added skills to the investment team
1. Added skills to the investment team 2. Some ratings downgrades due to staff turnover 3. Marketing to the institutional market 4. Value style well positioned 5. Relative performance exceptionally good in the bear market 21 1. Another year of solid performance 2. Strong investment team and support
Slide 12: TAAM
TAAM 1. Strong product offering attracted new clients 2. Added to the investment team and support staff / Singapore office 3. Volatile markets added some challenges 4. Operating in a strong economic region - Asia 23 1. Strong product offering attracted new clients 2. Added to the investment team and
Slide 13: Growing interest in listed infrastructure
1. Growing interest in listed infrastructure 2. Canadian retail alliance working well 3. Added to the investment team and support staff 4. Moved into new offices in 2008 5. Building a presence in the retail market 25 1. Strong product offering 2. Development has been slow due to volatile markets and
Slide 14: Compulsory superannuation
Compulsory superannuation Year end 30 June 2008 $1.17 Trillion Superannuation guarantee is 9%pa The average default asset allocation: Î Australian equities 26% Î International equities 20% Î Listed property 4% Î Australian fixed interest 22% Î International fixed interest 5% Î Cash 15% Î Other 6% So
Slide 15: New boutiques
New boutiques Î Recently announced plans remain under consideration but will not be opening in the near term Î Two interesting opportunities under assessment 29 Summary Î Short term profitability lower Î Business model remains strong Î No debt (net cash) Î Marketing reach continues to grow Î Looking
Slide 16: Gratitude
Gratitude A special note of thanks to the talented people who contribute to the company: The team that are there to protect us in risk and compliance services The finance and accounting team Human resources and operations staff Our outsourced service providers (Tango Technology, Arrowtech an
Slide 17: Business model strength
2008 Annual General Meeting Mark Burgess 33 Business model strength Î Strong balance sheet Î Quality range of boutique management partners Î Avoided leveraged and lower quality areas of the industry Î High levels of service provided to boutique partners Î Working with partners to gain opportunities
Slide 18: Asset market downturn
Asset market downturn Î Australian asset management industry will consolidate Î Flow will slow with some outflows in short term until industry regains confidence Î Investment talent will look for move to strong business models Î Opportunity for Treasury to lead the industry consolidation 35 Outlook
Slide 19: Formal Business of the Meeting
Formal Business of the Meeting 37 Item 1 Consideration and discussion of financial statements and reports 38 19
Slide 20: Re-election of director – Peter Kennedy
Item 2 Re-election of director – Peter Kennedy Proxies have been received in respect of this resolution as follows: • For 4,775,326 • Against 1,970 • Abstain 11,810 • Proxy’s Discretion 1,627,906 39 Item 3 Appointment of Auditor Proxies have been received in respect of this resolution as follows: •
Slide 21: Special Business
Special Business 41 Item 4 Adoption of remuneration report Proxies have been received in respect of this resolution as follows: • For 4,581,038 • Against 94,876 • Abstain 126,295 • Proxy’s Discretion 1,614,803 42 21
Slide 22: Questions?
Questions? 43 Thank-you 44 22
Slide 23: Disclaimer
Disclaimer: The information in this presentation is general background information about Treasury Group Limited and is current only at the date of this presentation. In particular, this presentation: • is not an offer or recommendation to purchase or subscribe for securities in Treasury Group Limite
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