Pacific Current Group Ltd · ASX:PAC
Pacific Current — Shareholder Meeting (November 2019)
21 slides from Pacific Current's shareholder meeting presentation, Nov 13, 2019
Slide 1: ASX Announcement: Updated AGM Presentation Slides
Tacoma // Denver // Sydney // Melbourne ASX ANNOUNCEMENT 13 November 2019 UPDATED AGM PRESENTATION SLIDES Pacific Current Group Limited (ASX:PAC), a global multi-boutique asset management firm, advises that the attached slide deck replaces the version lodged this morning prior to the commencement of
Slide 2: Annual General Meeting - Firm Overview
ANNUAL GENERAL MEETING 13 November 2019 Firm Overview
Slide 3: Disclaimer
Disclaimer The information in this presentation is general information about Pacific Current Group Limited (‘Pacific Current’ or ‘PAC’) 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
Slide 4: Agenda
Agenda Welcome to the FY2019 Annual General Meeting of Pacific Current Group (“PAC”) ❯ Chairman’s Address - Tony Robinson ❯ Business Overview - Paul Greenwood, Managing Director, CEO & CIO ❯ FY2019 Financial Results - Ashley Killick, CFO ❯ Questions & Answers ❯ Notice of Meeting ❯ Consideration of R
Slide 5: Chairman's Address
CHAIRMAN’S ADDRESS Tony Robinson, Chairman
Slide 6: Agenda
Agenda Welcome to the FY2019 Annual General Meeting of Pacific Current Group (PAC), and thank you all for being here: • Shareholders • Staff • Advisors • Directors // 5
Slide 7: Chairman's Address
Chairman’s Address ❯ In FY2019 our focus was on the following: • Redeploying capital to make PAC’s portfolio less vulnerable to market shocks and more aligned with long-term trends in asset allocation • Facilitate growth in our portfolio companies • Improve investor understanding of PAC and its busi
Slide 8: Chairman's Address - Recent PAC Acquisition Proposal
Chairman’s Address - Recent PAC Acquisition Proposal ❯ FY20 has already been an interesting year with a significant investment and a recently rejected offer to purchase 100% of PAC ❯ Background of offer: • PAC’s stock languished in FY2019, reaching a low of $4.23/share • PAC received an unsolicited
Slide 9: Chairman's Address
Chairman’s Address ❯ Pacific Current Group is an investment company. ❯ Our performance is a product of how well we invest our shareholders funds. This is largely dependent on the abilities of the Pacific Current team who are capably lead by Paul Greenwood. // 8
Slide 10: Business Overview
BUSINESS OVERVIEW Paul Greenwood, MD, CEO & CIO
Slide 11: Business Overview
Business Overview FY19 was another year of steady progress ❯ Financial Strength • Underlying NPAT tax of A$20.6m (A$.43/share) vs. A$18.3m (A$.38/share) in FY18 • Reported profit of A$37.6m compared to a loss of A$97.6m in FY18 • Dividend of A$0.25 per share, which compares to A$0.22 per share in FY
Slide 12: Portfolio Activity
Portfolio Activity Another busy year reshaping PAC’s portfolio ❯ Investments Sold • Sold 23.4% stake in Aperio for approximately US$72m (A$101.6m) • Exercised “Put” option to sell remaining 10% stake in RARE for A$21.5m • Sold position in Celeste to management for A$1.6m • Sold FIM for A$530k in Oct
Slide 13: FY19 Portfolio Company Highlights
FY19 Portfolio Company Highlights Solid growth, with 7 of 11 managers with FUM growing during the year* ❯ FY19 was another strong year of growth with FUM increasing 45%. • GQG – GQG continued rapid growth, increasing funds under management from US$15.7B to US$25.7B • Aether – Successfully closed ARA
Slide 14: Investment Strategy
Investment Strategy Creating shareholder value comes from a focused investment strategy ❯ Invest • Identify great investment firms wherever in the world they exist • Focus on growing market segments • Structure investments that align long term interests ❯ Diversify • We seek portfolio company specif
Slide 15: Portfolio
Portfolio Company Update FUM 30 June 2019 vs. 30 September 2019 (in each manager’s home currency) Tier 1 Boutiques Tier 2 Boutiques 30 7 0% Billions Billions 7% 25 6 5 20 4 15 3 -2% 10 2 4% 5 14% 8% 1 -1% 12% 0% 4% -15% 1% - - Aether Carlisle GQG Proterra* Victory Park 30/06/2019 30/09/2019 30/06/20
Slide 16: Portfolio
Portfolio Company Update Quarterly FUM progress (excluding boutiques sold during the period) 80 FUM Growth (Excluding boutiques sold) Billions 70 +9% +10% 60 +13% +5% 50 +11% +5% +9% 40 +10% +17% 30 20 10 0 30/06/2017 30/09/2017 31/12/2017 31/03/2018 30/06/2018 30/09/2018 31/12/2018 31/03/2019 30/06
Slide 17: Portfolio
Portfolio Company Update Quarterly FUM progress (excluding boutiques sold during the period and GQG) 30 FUM Growth (Excluding boutiques sold and GQG) +6% Billions +4% +1% +1% +1% +1% 25 +6% +2% +6% 20 15 10 5 0 30/06/2017 30/09/2017 31/12/2017 31/03/2018 30/06/2018 30/09/2018 31/12/2018 31/03/2019 3
Slide 18: Portfolio Analysis
Portfolio Analysis Continued progress in making revenue stream more diverse and resilient FUM FUM 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Public Equity Non-Public Equity Open End Closed End FY2018 FY2019 30-Jun-18 30-Jun-19 Source of PAC Revenues ❯ PAC’s reliance on public equity strategies
Slide 19: FY2019 Financial Results
F Y 2 0 1 9 F I N A N C I A L R E S U LT S Ashley Killick, CFO
Slide 20: FY2019 Financial Results Summary
FY2019 Financial Results Summary 28% » Total FUM of boutiques reaches A$57.5bn Up A$17.2bn (or 51.2%) from FY18 (excluding boutiques sold/acquired FUM A$57.47bn* 72% New Acquisition during the year) Net inflows of A$14.1bn with growth from Carlisle, GQG, Aether and Existing FUM growth ROC Partners F
Slide 21: Questions
QUESTIONS
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