Bentley Capital Ltd. · ASX:BEL
Bentley Capital — Shareholder Meeting (November 2014)
12 slides from Bentley Capital's shareholder meeting presentation, Nov 21, 2014
Slide 1: CBG Asset Management Presentation to Bentley Capital AGM
CBG Asset Management Presentation to Bentley Capital AGM 21st November 2014 Presentation by: Ronni Chalmers AFSL 246790 ABN 12 098 327 809 rchalmers@cbgam.com.au
Slide 2: Investment Philosophy
Investment Philosophy • Seek stocks that will outperform over 2-3 year time horizon • Tax efficiency • Tend to be overweight ex ASX 100 Why? Crowding by fund managers to ASX 100 • Seek to position portfolio with active positions. Currently 58%. • Typically have 30 – 60 stocks in portfolio • Can have
Slide 3: Investment Philosophy (cont'd)
Investment Philosophy (cont’d) • Low portfolio turnover - 2013 was 28% provides favourable after tax returns Turnover 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 Turnover Adjusted Turnover 3
Slide 4: Competitive Advantage
Competitive Advantage We believe we can add value through: • Constructing a portfolio with a high active share, based on detailed bottom up research of individual stocks. • In addition we have a longer investment time horizon than our peers. • Our ability to invest up to 25% of the portfolio in non-
Slide 5: Competitive Advantage (cont'd)
Competitive Advantage (cont’d) • The CBG investment team has been very stable: o We have been able to keep the team together which has created an environment with shared beliefs and the ability to challenge each other o We have also been able to bring junior people on as our investigative process, t
Slide 6: Competitive Advantage (cont'd)
Competitive Advantage (cont’d) • The investment team has in excess of 500 meetings each year with management of ASX companies that we follow. • Many of our peers have a level of FUM which becomes a disadvantage in terms of ability to invest outside the largest cap stocks in the market. • As an indep
Slide 7: Types of Companies Preferred or Avoided
Types of Companies Preferred or Avoided • We prefer to invest in companies with robust business models and quality management, sustainable competitive advantage and barriers to entry, above average EPS growth, strong free cash flow and below average earnings/cash flow multiples relative to growth pr
Slide 8: US Equity Volatility at 7 year Lows
US Equity Volatility at 7 year Lows 8
Slide 9: Net Performance as at 30 June 2014
Net Performance as at 30 June 2014 CBG AM S&P / ASX 200 Net Value Fund Net Return Accum. Added 2013 CY 26.9% 20.2% + 6.7% 1 Year 22.2% 17.4% + 4.8% 2 Years 23.9% pa 20.1% pa + 2.8% pa 3 Years 10.5% pa 10.4% pa + 0.1% pa 4 Years 12.3% pa 10.7% pa + 1.6% pa 5 Years 12.8% pa 11.2% pa + 1.6% pa Annualis
Slide 10: Top 20 Holdings as at 30 June 2014
Top 20 Holdings as at 30 June 2014 Name CBG Weight XJO Weight Active Weight ANZ ANZ Banking Group 9.4% 6.3% 3.1% WBC Westpac Banking Corporation 8.7% 7.2% 1.5% CBA Commonwealth Bank of Australia 8.3% 9.0% - 0.7% BHP BHP Billiton 5.0% 8.4% -3.4% HGG Henderson Group 4.4% 0.2% 4.2% NAB National Austral
Slide 11: How is the Fund Positioned Today?
How is the Fund Positioned Today? • 20% overweight financials including fund managers • 12% underweight resources • Overweight utilities/infrastructure • Underweight non 200’s vs 8 year average • No mining services companies 11
Slide 12: Disclaimer
Disclaimer “Performance is influenced by market volatility over time. Past performance is not necessarily indicative of future performance. Neither CBG Asset Management Limited or any related corporation guarantee the repayment of capital or the performance of the CBG Australian Equities Fund. The c
Bentley Capital — Shareholder Meeting (November 2014) on 6ix