NAOS Emerging Opportunities Co. Ltd. · ASX:NCC
NAOS Emerging Opportunities — Investor Presentation (May 2013)
32 slides from NAOS Emerging Opportunities's investor presentation, May 21, 2013
Slide 1: NAOS Emerging Opportunities Company: Investment Philosophy & Company Overview
For personal use only Presentation on: NAOS Emerging Opportunities Company (ASX: NCC) Investment Philosophy hl h & Company Overview. For: Current and Prospective Shareholders Shareholder Presentation, May‐2013
Slide 2: Investment Universe – Emerging Companies
For personal use only INVESTMENT UNIVERSE – EMERGING COMPANIES Copyright 2013 NAOS Emerging Opportunities Company Limited ACN 161 106 510 2
Slide 3: Why the need for an allocation to emerging companies?
Why W y the t e need eed for o aan allocation a ocatio to eemerging e gi g co companies? pa ies? For personal use only Investors should consider having an exposure to emerging companies as particular companies can provide a strong earnings growth profile regardless of the macro economic climate ov
Slide 4: Little analyst coverage on emerging companies presents pricing inefficiencies
Little itt e analyst a a yst cove coverage age from o bbroking oki g houses ouses o on For personal use only emerging companies presents pricing inefficiencies Figure 1 Number of Analyst Coverage Relative to Market Capitalisation 18 16.42 16 14 12.90 12 10 8.70 8 5.94 6 4 2.18 2 0.25 0 $0 to $50m $5
Slide 5: Poor industry diversification in the S&P/ASX-200
Poor oo industry i dust y diversification dive si icatio in i the t e S& S&P/ASX‐200 /AS 00 For personal use only The S&P/ASX‐20 is 63% of the All Ordinaries Index and the S&P/ASX‐200 is 98% of the All Ordinaries Index by market capitalisation. capitalisation The ASX‐20 tends to have a high corr
Slide 6: Potential for significant tax effective income and strong capital gains
Provide ovide pote potential tia for o sig significant i ica t ta tax effective e ective income i co e For personal use only and strong capital gains Below is a list of emerging companies in which NAOS has held significant positions over the last 5 years in their unlisted Managed Investment Scheme (
Slide 7: Why the need for active portfolio management?
Why W y the t e need eed for o active po portfolio t o io management? a age e t? For personal use only The objective of any portfolio should be to minimise the potential for significant capital loss without reducing opportunity for significant risk adjusted capital gains and tax effective income o
Slide 8: Why is there a need for active portfolio management?
Why W y is there t e e a need eed for o active po portfolio t o io management? a age e t? For personal use only Figure 4 below illustrates what number of stock positions is required to reach an equivalent level of risk to that of the wider market. It goes against what many fund managers practice
Slide 9: Listed Investment Companies (LICs)
For personal use only LISTED INVESTMENT COMPANIES (LIC (LIC’s) s) Copyright 2013 NAOS Emerging Opportunities Company Limited ACN 161 106 510 9
Slide 10: Why LICs?
Why W y LIC’s? IC s? For personal use only BENEFITS Generally offer investors a higher level of transparency than unlisted managed funds due to ASX disclosure requirements. LIC’s are closed‐end funds = the manager is not forced sellers in order to meet investor redemptions in times of high marke
Slide 11: NAOS Emerging Opportunities Company (ASX:NCC)
For personal use only NAOS EMERGING OPPORTUNITIES COMPANY (ASX.NCC) Copyright 2013 NAOS Emerging Opportunities Company Limited ACN 161 106 510 11
Slide 12: Why?
NCC – W Why? y? For personal use only Successfully listed on the ASX on the 26th February 2013. 2013 To date has outperformed the benchmark Small Ordinaries Accumulation Index by 14.06%. Strong shareholder alignment with the Directors of NCC owning over 13.50% of the issued capital in NCC. S
Slide 13: No other LIC that offers investors a concentrated exposure to Australian emerging companies
No other LIC that offers Investors a concentrated For personal use only exposure to Australian emerging companies NCC is the only listed investment company on the ASX which invests in ASX listed emerging companies Figure 5 in a concentrated manner as shown below in Figure g 5. International Equities
Slide 14: Profile snapshot
NCC – Profile o i e snapshot s aps ot For personal use only Features NAOS Emerging Opportunities Company Inception Date 26th February 2013 Investment Objective To provide investors with exposure to high quality emerging companies in a transparent and concentrated structure to which outperforms the B
Slide 15: Performance history
NCC – Performance e o a ce history isto y For personal use only 1 Month 2 Months 3 Months 6 Months 1 YR INCEPTION (P.A) NAOS Emerging Opportunities 3.02% 6.24% N/A N/A N/A 6.24% Company S&P/ASX Small Ordinaries ‐4.65% ‐7.82% N/A N/A N/A ‐7.82% Accumulation Index (XSOAI) Company Outperformance 7.67%
Slide 16: Highly regarded and proven board of directors
NCC – Highly ig y regarded ega ded aand dpproven ove board boa d o of di directors ecto s For personal use only Director Biography David Rickards David has over 25 years of equity market experience, most recently as an Executive Director at Macquarie Group where Independent David was head of equitie
Slide 17: Management team
NCC – Ma Management age e t tea team For personal use only Team Member Business Role David Rickards Independent Chairman Warwick Evans Director Sebastian Evans Managing Director/Portfolio Manager Tom Granger Investment Team Robert Miller Investment Team Jeffrey Kim Investment Team Julie Coventry Com
Slide 18: Exchange traded option (ASX: NCCO)
NCC – E Exchange c a ge ttraded aded option optio (AS (ASX:NCCO) :NCCO) For personal use only At the time of the IPO, NCC issued a 1 for 1 free attaching option listed option trading under the ASX code NCCO. Exercise price of NCCO is $1.00. Options can be exercised any time up until 1st Februa
Slide 19: Risk management
NCC – Risk isk management a age e t For personal use only Experienced board of directors provide sound corporate governance and oversight. Experience of the NAOS investment team within investing in the emerging companies space. All portfolio positions have their own respective in‐house/in‐dept
Slide 20: NCC Investment Objectives, Philosophy & Strategy
For personal use only NCC INVESTMENT OBJECTIVES, PHILOSOPHY & STRATEGY Copyright 2013 NAOS Emerging Opportunities Company Limited ACN 161 106 510 20
Slide 21: Investment overview
NCC – IInvestment vest e t ove overview view For personal use only •Provide investors with high quality quality, transparent and concentrated exposure to emerging companies. companies •Protect investors capital. •Outperform the Small Ordinaries Accumulation Index (XSOAI) over the medium to long term
Slide 22: Investment objectives
NCC – IInvestment vest e t objectives For personal use only To provide investors with high quality, quality transparent and concentrated exposure to Emerging Companies. Companies To protect investors capital. To provide investors with material outperformance over the S&P/ASX Small Ordinaries A
Slide 23: Investment philosophy
NCC – IInvestment vest e t p philosophy i osop y For personal use only Inefficiencies create opportunities, opportunities especially in emerging companies. companies Inefficiencies arise due to: Lack of established profitability. Poor understanding of competitive advantage and potential scale.
Slide 24: Investment philosophy
NCC – IInvestment vest e t p philosophy i osop y For personal use only Through the implementation of our investment philosophy we have produced consistent, risk‐adjusted investment returns by: Exploiting pricing/market inefficiencies. Focus on capital preservation. Concentrated portfolio str
Slide 25: Investment process
NCC – IInvestment vest e t p process ocess For personal use only Copyright 2013 NAOS Emerging Opportunities Company Limited ACN 161 106 510 25
Slide 26: Investment process: Qualitative & quantitative approach to investing
NCC – IInvestment vest e t pprocess: ocess: Qua Qualitative itative & qua quantitative titative For personal use only approach to investing This is a qualitative and quantitative process. Qualitative The investment philosophy and process is built around quality one on one contact with management
Slide 27: Investment process: Idea generation & universe screening
NCC – IInvestment vest e t p process: ocess: Idea ge generation e atio & u universe ive se For personal use only screening 1. Company Meetings/Proposals Plentiful access to management teams from Emerging Companies (capital requirements, liquidity constraints and cash flow hurdles limit investment
Slide 28: Investment process: Catalyst analysis
NCC – IInvestment vest e t p process: ocess: Cata Catalyst yst aanalysis a ysis For personal use only ‘Catalyst’ y analysis y aims to identify y events that will increase the market’s awareness of the stock and increase the likelihood of it reaching risk adjusted fair value. This can include: Ex
Slide 29: NCC – Investor Information
For personal use only NCC – INVESTOR INFORMATION Copyright 2013 NAOS Emerging Opportunities Company Limited ACN 161 106 510 29
Slide 30: Investor communication
NCC – IInvestor vesto co communication u icatio For personal use only Detailed monthly investment reports & NTA A updates are issued within 14 days of the end of the prior month. Website: www.naos.com.au has an archive of all investment reports, shareholder forms and media content. Quarterly i
Slide 31: Directory
NCC – Directory i ecto y For personal use only Registered Office – NAOS Asset Management Ltd Level 4, 139 Macquarie Street. Sydney, NSW 2000 q Investment Enquiries – NAOS Asset Management g Ltd enquiries@naos.com.au (02) 9947 2566 Share Registry Enquires – Boardroom Pty Ltd www.boardroomlimited.com.
Slide 32: Disclaimer
Disclaimer isc ai e For personal use only This presentation has been prepared by NAOS Emerging Opportunities Company Ltd (ACN 161 106 510). The information in this presentation is only intended for Australian residents. The purpose of this presentation is to provide information only and the contents
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