Pacific Current Group Ltd · ASX:PAC
Pacific Current — Shareholder Meeting (October 2016)
28 slides from Pacific Current's shareholder meeting presentation, Oct 27, 2016
Slide 1: Annual General Meeting
For personal use only 27 October 2016 ANNUAL GENERAL MEETING Presenters A S X : PA C Mike Fitzpatrick, Chairman Paul Greenwood, President North America and Global CIO Joseph Ferragina, CFO and COO, Australia
Slide 2: Agenda
Agenda For personal use only 1. Chairman’s Address 2. FY16 Results 3. Business Overview 4. Formal Items of Business 5. Questions 6. Formal Items of Business (continued) 7. Close of Meeting ASX: PAC // 2
Slide 3: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS ASX: PAC // 3
Slide 4: Chairman's Address: Overview of FY16
Chairman’s Address Overview of FY16 For personal use only ❯ FY16 was a year of substantial change and restructuring. Some of these changes were actively pursued and others addressed reactively ❯ Specific examples include: • Significant cost reductions • Meaningful changes to our portfolio of boutiqu
Slide 5: Chairman's Address: Overview of FY16 - FY17 focus
Chairman’s Address Overview of FY16 For personal use only ❯ The Board and Management are committed to addressing the needs of the business in order to begin rebuilding shareholder value ❯ Our efforts to enhance shareholder value in FY17 will focus on: • Further cost reduction • Maximizing cash flows
Slide 6: Chairman's Address: Overview of FY16 - rebuilding value
Chairman’s Address Overview of FY16 For personal use only ❯ Pacific Current has a proud history of making solid, profitable investments and the recent history has been an aberration ❯ We believe be have largely addressed the key challenges and believe we are moving the right direction ❯ We appreciat
Slide 7: FY16 Results
For personal use only FY16 RESULTS ASX: PAC // 7
Slide 8: Review of FY16 Results: A Transitional Year
Review of FY16 Results A Transitional Year For personal use only ❯ Aggregate FUM of A$50.4 billion, up 3.0% due to strong performances at Aperio, Aether and IML; offset by continued outflows at Seizert and RARE and overall changing composition ❯ Underlying NPAT of A$11.6m for FY16, down from the res
Slide 9: FUM Composition
FUM Composition A Transitional Year For personal use only ❯ FUM lost through the closure or sale of Billions 50 TAMRO, Orion/Trilogy and WHV has been RARE replaced by Aperio Seizert 40 ❯ Overall quality of FUM has improved year on Investors Mutual year based on margin and quality of business Orion/T
Slide 10: PAC Statutory P&L for twelve months to 30 June 2016
Review of FY16 Results PAC Statutory P&L for twelve months to 30 June 2016 For personal use only PAC ❯ Statutory PAC profit and loss primarily reflects Statutory P&L Highlights (A$m) FY16 share of profit and loss from Aurora Trust, the business operations of the Group Revenue 5.6 ❯ Aurora Trust impa
Slide 11: Impairment charges, non-labour costs incurred as a result of restructure
Review of FY16 Results Impairment charges, non-labour costs incurred as a result of restructure For personal use only PAC P&L (A$m) FY16 ❯ All non-recurring items are PAC’s share of PAC Statutory (Loss) After Tax (48.2) expense/gain from Aurora Trust Gain on sale/revaluation/acquisition/deemed dispo
Slide 12: Aurora Trust Balance Sheet
Review of FY16 Results Aurora Trust Balance Sheet For personal use only Balance Sheet – Aurora Trust FY16 ❯ $14.8m of surplus cash available at 30 June 2016 (A$m) ❯ Repayment of Medley debt of $62m and investment in Current Assets 30.9 Aperio of $21m ❯ PAC owned 65% of Aurora Trust as at 30 June 201
Slide 13: Impairments: Assumptions and Judgements
Impairments Assumptions and Judgements For personal use only ❯ The Board needs to review the carrying value of investments at each reporting period and the level of goodwill being carried forward ❯ The valuation of assets is typically based on applying a discounted cash flow methodology ❯ Key assump
Slide 14: Business Overview
For personal use only BUSINESS OVERVIEW ASX: PAC // 14
Slide 15: Business Overview: We stumbled and need to do better
Business Overview We stumbled and need to do better For personal use only ❯ We recognize that elements of the merger have proven more challenging than we expected, including the Trust structure and the underperformance of a small number of boutiques ❯ As a result we have delivered results that are c
Slide 16: Management focusing on operational efficiencies, simplification and growth
Business Overview Management is focusing on operational efficiencies, simplification and growth For personal use only ❯ Improve operational results • Reconfigured management team and responsibilities • Restructured sales team to increase capacity while decreasing costs • Significant reduction in hea
Slide 17: Key FY16 Portfolio Developments - Seizert
Key FY16 Portfolio Developments - Seizert Seizert faced both performance and industry headwinds in FY16 For personal use only Percentile Ranking of Performance v. Peers Quarter 1 - Year 3 - Years 5- Years 10 -Years ❯ Weak post-merger performance has Concentrated Equity led to FUM attrition. We have
Slide 18: Key FY16 Portfolio Developments: RARE and Aperio
Key FY16 Portfolio Developments FY16 brought challenges to Core boutiques and great opportunities through new investments For personal use only ❯ RARE • We believe it was necessary to support RARE’s management in its decision to sell • PAC made 33X its initial investment in RARE, while retaining a 1
Slide 19: A unique opportunity to partner with an exceptional investor
Key FY16 Portfolio Developments A unique opportunity to partner with an exceptional investor For personal use only ❯ GQG Partners • Backed Rajiv Jain, one of the most prominent long-only investors in the world • Mr. Jain previously managed US$48b in global and emerging markets equity strategies • Gi
Slide 20: FUM Update – September, 2016
FUM Update – 30 September, 2016 For personal use only ❯ Aperio continues to lead in terms of FUM flows 30 June* FUM Flows* 30 Sept* with another great quarter Core 41.12 1.4 42.76 ❯ Seizert still in redemption mode, though FUM grew in quarter ending 30 September due to excellent performance Growth 6
Slide 21: Business Overview - Summary
Business Overview - Summary FY17 expected to be more positive after a challenging year for the group For personal use only ❯ FUM losses at Seizert had a large adverse impact on FY16 results. Accordingly, FY16 was significantly impacted by large impairment charges and various one-off events ❯ Have de
Slide 22: Formal Items of Business
For personal use only FORMAL ITEMS OF BUSINESS ASX: PAC // 22
Slide 23: Formal Items of Business: Financial Statements Reports
Formal Items of Business For personal use only ❯ Part A - Consideration of Financial Statements Reports ❯ To receive and consider the Financial Report, the Directors’ Report and the Independent Auditor’s Report of the Company for the financial year ended 30 June 2016. ASX: PAC // 23
Slide 24: Questions
For personal use only QUESTIONS ASX: PAC // 24
Slide 25: Resolution 1a. Re-election of Director – Michael Fitzpatrick
Formal Items of Business For personal use only ❯ Resolution 1a. Re-election of Director – Michael Fitzpatrick ❯ To consider and, if thought fit, pass the following as an ordinary resolution of the Company: ❯ “That Michael Fitzpatrick, who retires in accordance with clause 7.1 (f) of the Company’s Co
Slide 26: Resolution 1b. Re-election of Director – Peter Kennedy
Formal Items of Business For personal use only ❯ Resolution 1b. Re-election of Director – Peter Kennedy ❯ To consider and, if thought fit, pass the following as an ordinary resolution of the Company: ❯ “That Peter Kennedy, who retires in accordance with clause 7.1 (f) of the Company’s Constitution a
Slide 27: Resolution Remuneration Report
Formal Items of Business For personal use only ❯ Resolution 2 Remuneration Report ❯ To consider and, if thought fit, pass the following as a non-binding ordinary resolution of the Company: ❯ “That the Company’s Remuneration Report for the financial year ended 30 June 2016, as set out in the Director
Slide 28: Close of Meeting
Close of Meeting For personal use only ❯ Thankyou for attending. ❯ AGM Closed. Please complete your voting card and deposit it at the exit ASX: PAC // 28
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