Flagship Investments Ltd. · ASX:FSI
Flagship Investments — Investor Presentation (April 2015)
27 slides from Flagship Investments's investor presentation, Apr 20, 2015
Slide 1: Retail Presentation – FSI as at 31 March 2015
Flagship Investments Limited ABN 99 080 135 913 Level 12 For personal use only Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 PO Box 7536 GCMC BUNDALL QLD 9726 20 April 2015 Telephone 07 5644 4400 Facsimile 07 5574 1457 www.flagshipinvestments.com.au The Manager Company Announcements Office
Slide 2: ECPAM - Retail Presentation Document - As at 31/03/2015
For personal use only ECPAM - Retail Presentation Document - As at 31/03/2015
Slide 3: ECPAM Overview
ECPAM Overview For personal use only ECP Asset Management (ECPAM) manages two listed investment companies, Barrack St Investments (BST) and Flagship Investments (FSI). Both provide investors an opportunity to invest with a disciplined and experienced investment manager whose objectives are to: ● ach
Slide 4: Investment Team
For personal use only Investment Team
Slide 5: Why Our Team Produces Outperformance
Why Our Team Produces Outperformance For personal use only Common Beliefs Our team members all fundamentally believe in our investment philosophy; the economics of a business drives price performance over the long term. Information Advantage The investment team spend 95% of their time on fundamental
Slide 6: Investment Philosophy
Investment Philosophy For personal use only The economics of a business drives long-term investment returns. Investing in high quality, growth businesses, that have the ability to generate predictable, above average economic returns will produce superior investment performance over the long-term. A
Slide 7: Market Inefficiencies We Exploit
Market Inefficiencies We Exploit For personal use only On average the market undervalues extremely high quality, capital efficient, organic growth businesses; and The market tends to over-emphasize temporary themes and short-term factors. 9
Slide 8: Investment Process Summary
Investment Process Summary For personal use only An focus on quality produces alpha Our investment process is broken up into 4 main stages. Stages 1 → 3 are designed to remove those companies that do not meet our definition of quality, and focus our attention on a smaller opportunity set. Stage 4 is
Slide 9: Representative Companies
Representative Companies For personal use only 21
Slide 10: Resulting Portfolio Composition
Resulting Portfolio Composition For personal use only Included Avoided High exposure to growth markets, Low ROE, Low Interest Cover, Low strong competitive advantages, low Growth, Lack of Competitive capital intensity, organic growth and advantage, complex businesses. simple businesses. 25
Slide 11: Process Benefits
Process Benefits For personal use only Proven manager ● Long term out performance is reliable and fundamentally driven. ● Performance is strong in both an absolute and relative sense. Consistent framework and investment process ● Portfolio consists of only the highest quality investments. ● We do no
Slide 12: Process Key Features
Process Key Features For personal use only 1. The investment process is one of elimination of businesses that fail to meet quality standards; 2. Companies that fail process are not held at all rather than underweighted → Sell Discipline; 3. Companies are weighted according to their 5 year prospects
Slide 13: Barrack St Investments Limited
(inl Barrack St Investments Limited
Slide 14: Why BST?
Why BST? For personal use only Most Investors have an exposure to ASX 50 companies. BST only invests in companies outside of this index, so provides investors an opportunity to share in the wealth creation of highly successful small companies: ● QGC : EV AUD 20m Aug 2000 → EV AUD 5bn Oct 2008 ● SEK
Slide 15: Product Details
Product Details For personal use only Name Barrack Street Investments Limited Ticker BST NAV (31 March 2015) 103.7c Benchmark 8% Absolute Return Management Fee 1% Performance Fee 20% over hurdle, high watermark. 29
Slide 16: Portfolio Performance
Portfolio Performance For personal use only Historical Portfolio Performance to 31 Mar 2015* Product 3m 6m 1 year YTD Inception BST 6.42 14.50 - 6.67 8.15 S&P ASX Small Ords Acc 7.30 3.40 - 9.30 -0.14 Alpha -0.88 11.1 - -2.63 8.29 *All returns are gross of fees and charges. Excess returns are calcul
Slide 17: Portfolio Holdings
Portfolio Holdings For personal use only Company Weight REA Group 12.4 Carsales.com 10.9 Platinum Asset Management 9.76 Seek Limited 9.48 Domino’s Pizza 9.06 Trade Me Group 7.00 Bendigo Bank 6.47 Navitas 4.72 Sky Network Television 4.48 Sirtex Medical 4.38
Slide 18: Recent Portfolio Additions
Recent Portfolio Additions For personal use only
Slide 19: Portfolio Return Outlook
Portfolio Return Outlook For personal use only Dividend Growth PE Contraction Dividend Return IRR (pre-franking) 19.6% -1.8% 2.6% 20.4% 27
Slide 20: For personal use only
For personal use only
Slide 21: Product Details
Product Details For personal use only Name Flagship Investments Limited Ticker FSI NAV (31 March 2015) 181.6c Benchmark Cash Management Fee 0% Performance Fee 15% over benchmark, no high watermark. 29
Slide 22: Portfolio Performance
Portfolio Performance For personal use only Historical Performance to 31 Mar 2015* Product 3m 1 year 3 Years 5 Years 10 Years FSI 8.8 12.2 22.1 10.6 12.3 S&P ASX All Ords 8.8 10.0 9.9 3.7 3.6 Alpha 0.0 2.2 12.3 6.9 19.7 *All returns are gross of fees and charges. Excess returns are calculated agains
Slide 23: Portfolio Holdings
Portfolio Holdings For personal use only Company Weight Telstra 9.19 Macquarie Group 8.36 Commonwealth Bank of Australia 8.25 Westpac Banking Corp 6.62 Rio Tinto Limited 5.44 Seek Limited 5.18 REA Group 5.14 AMP Limited 4.62 Brambles Limited 4.60 Woolworths Limited 4.44
Slide 24: Recent Portfolio Additions
Recent Portfolio Additions For personal use only
Slide 25: Portfolio Return Outlook
Portfolio Return Outlook For personal use only Dividend Growth PE Contraction Dividend Return IRR (pre-franking) 14.5% -2.0% 3.3% 15.8% 27
Slide 26: FSI Historical Dividends
FSI Historical Dividends For personal use only Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dividend 4.5 6.0 6.75 8.00 8.50 8.50 8.50 8.50 6.0 6.5 6.75 Chg % 15.4 33.3 12.5 18.5 6.25 0.0 0.0 0.0 -30.0 8.3 3.8 CPI 2.50 2.50 4.00 2.10 4.50 1.50 3.10 3.60 1.20 2.20 2.90
Slide 27: Disclaimer
Disclaimer For personal use only This communication is not a securities recommendation. Any person considering action on the basis of this communication must seek out individual advice relevant to their particular circumstances and investment objectives. Past performance is no guide for future perfo
Flagship Investments — Investor Presentation (April 2015) on 6ix