Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — HY 2019 Earnings Presentation
20 slides from Pengana Capital's earnings presentation, Feb 22, 2019
Slide 1: Pengana Capital Group Interim Results
PENGANA CAPITAL GROUP Interim Results For the period to 31 December 2018 Russel Pillemer Katrina Glendinning Chief Executive Officer Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 2 11 Overview 2 3 HY 2019 Results 34 HY 2019 Highlights 4 Focus for FY 2019 6 2
Slide 3: Overview
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Slide 4: Our Philosophy
Our Philosophy We aim to generate superior long term returns with focus on capital preservation • Leading provider of premium products • Benchmark-unaware mandates; we don’t aim to “beat the market” over the short-term • Proven long-term performance over multiple funds • Impose capacity limits acros
Slide 5: Funds Under Management
Funds Under Management 1 Historical Growth in FUM ($m)2 Slightly positive net inflows in FY2019 $4,000 $3,519 Reduction in FUM in 2019, solely due to $3,500 • investment performance in falling equity markets in $3,127 Q2 $3,012 • Distributions paid to investors $3,000 $2,879 $2,528 $2,500 PCG Austra
Slide 6: Funds Under Management
Funds Under Management 1 FUM Strategy Breakdown (31/12/2018) Australian strategies account for 64% of FUM; was 68% at 31/12/17 3% 1% International equity strategies expected to be the 6% dominant segment within the medium term Significant further capacity in various International 40% Equities strate
Slide 7: Diversified Range of Funds
Diversified Range of Funds 1 Acronym Primary Fund Name Strategy Strategy FUM Management Fee; Performance Fee at 31/12/18 ($m) (Primary Fund) PAEF Pengana Australian Equities Australian Multi-caps 1,179 1.0%; 10% above 0% PECF Pengana Emerging Companies Australian Small-caps 733 1.3%; 20% above ASX S
Slide 8: Annual Fee Margin FY 2015 to HY 2019
Annual Fee Margin FY 2015 to HY 2019 3.5% 3.23% 3.23% 3.0% 2.5% 2.19% 2.0% 1.70% 1.49% 1.5% 1.38% 1.0% 1.18% 1.15% 1.14% 1.15% 1.18% 0.5% FY 2015 FY 2016 FY 2017 FY 2018 HY 2019 Mgmt fee/avg FUM Perf fee/avg FUM Total fee/avg FUM, 4.5 year avg Performance fees fluctuate over relatively short periods
Slide 9: HY 2019 Results
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Slide 10: Statutory Profit After Tax
Pengana Capital Group Statutory Profit After Tax 31 December 2018 ($’000) Management fee revenue 19,370 Performance fee revenue 3,199 Operating expenses (10,877) Team profit share (7,552) Operating EBITDA1 4,140 Other income 262 Amortisation (1,604) Product development and other non operating expens
Slide 11: Underlying Profit After Tax
Pengana Capital Group Underlying Profit After Tax1 31 December 2018 ($’000) Statutory profit after tax attributable to Pengana shareholders 1 935 Add back: 2 Amortisation 1,604 Unrealised investment losses (525) Interest on Loan Funded Share Plan 1,090 Product development and other non operating exp
Slide 12: Balance Sheet
Pengana Capital Group Balance Sheet1 31 December 2018 ($’000) Cash net of $4.5m AFSL cash requirements 8,324 Current receivables 5,928 Current liabilities (6,782) Net working capital 7,470 Investments net of $4.5m AFSL liquid asset requirements 8,994 AFSL capital requirements 9,000 Loans (on and off
Slide 13: HY 2019 Highlights
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Slide 14: Year to date in review
Year to date in review • Management fee revenue up on the 6 months to 31 Dec 17, however recent decline in FUM due to a combination of distributions paid $221m and investment performance of $299m. Net inflows were slightly positive. • Performance fee revenue lower than historical averages: expected
Slide 15: Focus for FY 2019
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Slide 16: Overview of Pengana Private Equity Trust
Overview of Pengana Private Equity Trust THE OFFER Trust Pengana Private Equity Trust ARSN 630 923 643 Proposed ASX code PE1 Units offered Fully paid ordinary Units Min/Max number of Units 80 million / 480 million Subscription Price per Unit $1.25 Min/Max gross proceeds $100 million / $600 million P
Slide 17: Implications of PE1 for PCG earnings
Implications of PE15 for PCG earnings Total cost to PCG will be circa 8.0% of the amount raised: • Offer costs estimated to be circa 3.0%; • cash payment to be funded via a floating bank facility at currently circa 7% p.a. Issuance of alignment shares equating to 5% of amount raised • non-cash item
Slide 18: Focus Going Forward
Focus Going Forward • Launch Pengana Private Equity Trust • Maintain long-term investment performance across all strategies • Focus on growth in FUM for various International Equities strategies • Continued focus on advised markets • Increased focus on direct markets • Evaluate acquisition opportuni
Slide 19: Disclaimer
Disclaimer This presentation has been prepared by Pengana Capital Group Limited (ABN 43 059 300 426) (PCG). The information in this presentation is current as at 22 February 2019. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with resp
Slide 20: For More Information
THANK YOU FOR MORE INFORMATION PENGANA CAPITAL GROUP ABN 43 059 300 426 Level 12, 167 Macquarie Street, Sydney, NSW 2000 T: +61 2 8524 9900 F: +61 2 8524 9901 20 E: clientservice@pengana.com PENGANA.COM
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