Regal Partners Limited · ASX:RPL
Regal Partners — H1 2020 Earnings Presentation
22 slides from Regal Partners's earnings presentation, Aug 25, 2020
Slide 1: 1H20 Results Briefing Presentation
VGI Partners Limited ABN 33 129 188 450 39 Phillip Street Sydney NSW 2000 Australia T. +61 2 9237 8900 www.vgipartners.com AFSL No. 321789 | SEC Registered 25 August 2020 ASX Market Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT 1H20 Results Briefi
Slide 2: 1H20 Investor Briefing
VGI Partners Limited (ASX:VGI) 1H20 Investor Briefing – 25 August 2020
Slide 3: 1H20 Business Highlights
Six months to 30 June ($ million)1 1H20 1H19 1H20 Business Highlights Income Six months to 30 June 2020 Management fees (net)1,2 22.2 12.5 Performance fees (net)2 0.1 32.8 • Normalised NPAT of $9.9m1 Other income1 0.1 0.0 • Management fees up on 1H19 given higher average Normalised total operating r
Slide 4: Business Overview
VGI PARTNERS Business Overview
Slide 5: VGI Partners Overview
VGI Partners Overview • Specialist manager focusing on global equities. Long Individually Managed biased, concentrated strategy with selective short VGI Managed Funds Accounts (IMAs) selling. Minimal to no leverage utilised • Offices in Sydney, New York and Tokyo Unlisted Listed Unlisted • FUM of $2
Slide 6: Funds Under Management on 30 June 2020 of $2.9 bn
Funds Under Management on 30 June 2020 of $2.9 bn Half in Listed Investment Companies Individually Managed Master Fund Offshore Fund Accounts VG1 VG8 FUM (A$m) at $800m $250m $380m $900m $555m 30 June 2020 Launch date January 2009 May 2012 Various September 2017 November 2019 50% 50% Currency A$ US$
Slide 7: Philosophy and Alignment of Interests
VGI Partners Philosophy and Alignment of Interests Alignment of Interests • All operating costs of VG1 and VG8 (where permitted) paid by VGI • Founders of VGI Partners reinvest their pro-rata amount of VG1 and VG8 Capital Preservation Do not lose money performance fees (after tax) back into VG1 and
Slide 8: Capital Preservation Performance in Up/Down Months
VGI Partners Master Fund: Capital Preservation Performance in Up/Down Months Compound Annual Return (Net) Performance in Performance in 18% "Up Market" Months "Down Market" Months 16% 14% 13.0% 2.9% 10.7% 3% 2.2% 12% 2% 10% 1% 8% 0% 6% (1%) 4% (2%) (0.8%) 2% (3%) (2.4%) 0% Average VGI Average Averag
Slide 9: Financials
VGI PARTNERS Financials
Slide 10: Normalised Financials
Six months to 30 June ($ million) 1H20 1H195 Income Management fees (net)1 22.2 12.5 Performance fees (net) 0.1 32.8 Normalised Financials Other income2 0.1 0.0 Six months to 30 June 2020 Normalised total operating revenue 22.4 45.3 • Normalised 1H20 NPAT adds back contra-revenue Normalised operatin
Slide 11: Revenue and FUM
Revenue and FUM Six months to 30 June 2020 VGI Partners FUM • FUM down 7% in 1H20 to $2.9 bn $3.5 bn $3.0 bn • Gross management fees of 1.5% $2.5 bn • Net management fees of c.1.4% largely due to charitable FUM1 $2.0 bn • FUM of $2.9 bn as at 21 August 2020 $1.5 bn $1.0 bn $0.5 bn $0.0 bn 2009 2010
Slide 12: Management and Performance Fees
Management and Performance Fees1 • Management fees have been increasing due to higher average FUM and end of VG1 fee waiver in April 2019 • Performance fees are based on absolute performance with high water marks and can vary materially from period to period • As at 21 August, $2.9 billion of perfor
Slide 13: Expenses
Expenses Six months to 30 June ($ million) 1H20 1H193 Six months to 30 June 2020 Personnel 3.8 5.6 • Normalised operating costs of $7.8m Research, communications and IT 1.2 2.0 Occupancy 0.1 0.2 • Cost decrease on pcp mainly due to lower staff bonuses reflected in decreased personnel expense Donatio
Slide 14: Balance sheet
Balance sheet As at 30 June 2020 30 Jun 31 Dec • $41 million in cash as at 30 June 2020, no debt Statutory balance sheet ($ million) 2020 2019 Cash and cash equivalents 41.1 29.3 • Financial assets represent investments in VG1 and VG8 Trade and other receivables 4.2 8.4 • $7.3m of on-market purchase
Slide 15: VGI Partners Foundation Class and Charitable FUM
VGI Partners Foundation Class VGI’s cumulative charitable rebates and donations and Charitable FUM $7m $6.4m $6m • VGI Partners actively supports charitable and community causes. Total donations and rebates since 2008 of $6.4m. $5m $4m This includes $1.3m of cash donations to select external $3m c
Slide 16: Shareholder Engagement
Shareholder Engagement Please elect electronic Half-year and full-year Annual national Notes from Berkshire communications to result conference calls roadshow each October Hathaway and Daily stay informed – will be virtual this year Journal meetings Annual General Meeting (AGM) in April Manager’s se
Slide 17: Questions
VGI PARTNERS Questions
Slide 18: Appendices
VGI PARTNERS Appendices
Slide 19: Appendix A: Reconciliation
1H19 1H20 1H20 Six months to 30 June ($m) normalised1 statutory Adjust. normalised Income Appendix A: Reconciliation Management fees (net) 12.5 18.9 2.5 + 0.8 22.2 Normalisation adjustments Performance fees (net) 32.8 0.1 0.1 Other income 0.0 (5.5) 5.7 0.1 • Normalised 1H20 NPAT adds back contra- To
Slide 20: Appendix B: Performance
Appendix B: Performance Since 1 July to 21 August 2020 Fund Performance1 VGI Partners Master Fund +5.1% VGI Partners Offshore Fund +6.5% VGI Partners Global Investments Limited (ASX:VG1) +4.4% VGI Partners Asian Investments Limited (ASX:VG8) +0.7% Source: VGI Partners. 1 Figures are unaudited and ba
Slide 21: Disclaimer
Disclaimer: VGI Partners Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321789) and is SEC registered. The information in this presentation (Information) has been prepared by VGI Partners and is current as at the date of this presentation.
Slide 22: Disclaimer (continued)
Disclaimer (continued): Normalisation adjustments Financial Information is presented on both a statutory basis (prepared in accordance with Australian accounting standards which include Australian equivalent to International Financial Reporting Standards (IFRS)) as well as information provided on a