Pacific Current Group Ltd · ASX:PAC
Pacific Current — Merger or Acquisition (December 2015)
16 slides from Pacific Current's merger presentation, Dec 14, 2015
Slide 1: Investment in Aperio Group, LLC
For personal use only 1 5 D e c e m b e r 2 0 1 5 ASX Investor Presentation Investment in Aperio Group, LLC Presenters: Tim Carver, CEO A S X : P A C Paul Greenwood, CIO
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation is general information about Pacific Current Group 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 Pacific Cur
Slide 3: Table of Contents
Table of Contents For personal use only 1. PAC Investment Strategy 2. Transaction Details 3. Overview: Aperio Group 4. PAC Outlook A S X : P A C // 3
Slide 4: PAC Investment Strategy
PAC Investment Strategy For personal use only ›❯ PAC seeks new investments that • Provide enhanced portfolio diversification across multiple dimensions (assets, geographies, investment strategies …) • Are in “sunrise” (or strong secular growth) segments of the market ›❯ We seek two broad types of in
Slide 5: Transaction Details
For personal use only TRANSACTION DETAILS A S X : P A C // 5
Slide 6: Transaction: Overview
Transaction: Overview ›❯ Pacific Current Group Limited (Pacific Current or PAC) to acquire minority equity interest For personal use only in Aperio Group, LLC (Aperio), an A$18.3bn FUM US-based smart beta, ESG and tax managed beta manager based in the US ›❯ Pacific Current capital commitment of US$
Slide 7: Transaction: Strategic Rationale
Transaction: Strategic Rationale For personal use only ›❯ Investment is immediately accretive from completion ›❯ Aperio is a rapidly growing business – significant growth in FUM (+50% over last 4 years) and high demand for its services ›❯ Creates greater stability in earnings for PAC and greater div
Slide 8: Overview: Aperio Group
For personal use only OVERVIEW: APERIO GROUP A S X : P A C // 8
Slide 9: Aperio Group: Business Overview
Aperio Group: Business Overview For personal use only ›❯ Investment strategy targets intersection of passive management, smart beta, tax management and SRI investing ›❯ Products are distributed through financial intermediaries, providing leveraged distribution for Aperio ›❯ Exceptional management qu
Slide 10: Emergence of the "New Institutional"
Emergence of the “New Institutional” Positive US industry dynamics providing growth opportunity For personal use only ›❯ Outflows from defined benefit (institutional) are going into defined contribution and retail ›❯ Active managers feeling pressure from indexing (Vanguard, I-Shares, etc.) ›❯ UHNW
Slide 11: Emergence of the "New Institutional"
Emergence of the “New Institutional” US UHNW total net worth now greater than the top 1000 US retirement plans For personal use only 11.00T 10.00T $9.63T $9.06T 9.00T 8.00T US $ Value 7.00T 6.00T 5.00T 4.00T 3.00T 2.00T 1.00T 1000 Largest US Retirement Plans US UHNW* Source: Pension & Investments An
Slide 12: Strong Demand in Current Industry
Strong Demand in Current Industry Aperio’s expertise includes: For personal use only Aperio Group’s personalised level ›❯ Tax Management of portfolio customisation • Tax alpha more predictable than stock selection alpha ›❯ SRI / Values Investing ACTIVE • Interest is expanding rapidly TAX Aperio Grou
Slide 13: Aperio's Vision is Gaining Traction
Aperio’s Vision is Gaining Traction For personal use only Aperio FUM (US$bn) 14 13.2 12 10 10 US $ Billions 8 7.1 6 4 3.2 1.9 2.1 2 1.3 1.3 1.0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 A S X : P A C // 13
Slide 14: PAC Outlook
For personal use only PAC OUTLOOK A S X : P A C // 14
Slide 15: PAC Pipeline and Opportunities
PAC Pipeline and Opportunities For personal use only ›❯ Pipeline continues to look robust (>160 deals reviewed in 2015) ›❯ Several smaller “option” style investments look very promising ›❯ Will continue to look to add diversification, resilience and growth to the portfolio A S X : P A C // 15
Slide 16: Outlook
Outlook For personal use only ›❯ Poised for success with a proven leadership team focused on growing Pacific Current by diligently and strategically building our underlying boutiques ›❯ Continuing strong business momentum from many areas in the portfolio ›❯ Significantly improved access to global cl
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