Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Investor Presentation (November 2015)
33 slides from Australian Foundation Investment's investor presentation, Nov 25, 2015
Slide 1: NZ Information Meetings – Presentation
25 Novvember 201 15 For personal use only The Maanager ASX Market Anno ouncements Australian Securities Excha ange Exchannge Centree Level 4 20 Brid dge Street Sydneyy NSW 2000 2 Electron nic Lodgement Au ustralian Foundatio F n Investm ment Comppany Limitted NZ Infformation n Meetings s – Presen nt
Slide 2: New Zealand Shareholder Meetings 2015
For personal use only NEW ZEALAND SHAREHOLDER MEETINGS 2015
Slide 3: Disclaimer
DISCLAIMER For personal use only Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), their related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good fai
Slide 4: Introduction
For personal use only INTRODUCTION NZ SHAREHOLDER MEETINGS 2015
Slide 5: Get rich slow: the secret of long term investment
For personal use only GET RICH SLOW The secret of long term investment NZ SHAREHOLDER MEETINGS 2015
Slide 6: Short term returns can be very volatile
SHORT TERM RETURNS CAN BE VERY VOLATILE For personal use only AFIC rolling 1 year returns to 30 June 2015 NZ SHAREHOLDER MEETINGS 2015
Slide 7: Long term returns build wealth for patient investors
HOWEVER LONG TERM RETURNS BUILD WEALTH FOR PATIENT INVESTORS For personal use only AFIC rolling 1 year and 10 year returns to 30 June 2015 NZ SHAREHOLDER MEETINGS 2015
Slide 8: This still holds even in light of recent turmoil
THIS STILL HOLDS EVEN IN LIGHT OF RECENT TURMOIL For personal use only AFIC rolling 1 and 10 year returns to 30 September 2015 NZ SHAREHOLDER MEETINGS 2015
Slide 9: Results & Shareholder Returns
For personal use only RESULTS & SHAREHOLDER RETURNS ANNUAL GENERAL MEETING OCTOBER 2015
Slide 10: Full Year Financial Summary
FULL YEAR FINANCIAL SUMMARY For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 11: New Zealand imputation credits paid for the first time
NEW ZEALAND IMPUTATION CREDITS PAID FOR THE FIRST TIME For personal use only • 3 cents per share of dividend had a credit • Derived from dividends received from: – ANZ – Commonwealth Bank – National Australia Bank – Westpac – Auckland International Airport – Fisher and Paykel Healthcare – Fletcher B
Slide 12: Share price is at a premium
SHARE PRICE IS AT A PREMIUM For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 13: Share price performance in $NZ per annum
SHARE PRICE PERFORMANCE IN $NZ – PER ANNUM RETURN TO 31 OCTOBER 2015 For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 14: The Market
For personal use only THE MARKET NZ SHAREHOLDER MEETINGS 2015
Slide 15: Lower prospects for growth, market more volatile
WITH LOWER PROSPECTS FOR GROWTH THE MARKET HAS BEEN MORE VOLATILE For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 16: Market valuations (price earnings ratio) moving higher
MARKET VALUATIONS (PRICE EARNINGS RATIO) ARE MOVING HIGHER AFTER RECENT DECLINES For personal use only Source: FactSet. NZ SHAREHOLDER MEETINGS 2015
Slide 17: Portfolio
For personal use only PORTFOLIO NZ SHAREHOLDER MEETINGS 2015
Slide 18: Short term portfolio performance impacted by energy holdings
SHORT TERM PORTFOLIO PERFORMANCE IMPACTED BY ENERGY HOLDINGS AND UNDERWEIGHT PROPERTY EXPOSURE– PER ANNUM RETURN IN $NZ TO 31 OCTOBER 2015 For personal use only After tax and expenses for AFIC. NZ SHAREHOLDER MEETINGS 2015
Slide 19: Portfolio remains well positioned, with some adjustments
WE BELIEVE THE PORTFOLIO REMAINS WELL POSITIONED ALTHOUGH WE HAVE BEEN MAKING SOME ADJUSTMENTS For personal use only • Further broadened the portfolio by adding to small/midcap holdings • Marginally reduced exposure to: – banks – energy – supermarkets • Used recent market volatility to generate retu
Slide 20: Banks – Portfolio at October 2015
BANKS – PORTFOLIO AT 31 OCTOBER 2015 For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 21: Energy – Portfolio at October 2015
ENERGY – PORTFOLIO AT 31 OCTOBER 2015 For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 22: Healthcare – Portfolio at October 2015
HEALTHCARE – PORTFOLIO AT 31 OCTOBER 2015 For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 23: Consumer Staples – Portfolio at October 2015
CONSUMER STAPLES – PORTFOLIO AT 31 OCTOBER 2015 For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 24: Real Estate – Portfolio at October 2015
REAL ESTATE – PORTFOLIO AT 31 OCTOBER 2015 For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 25: Portfolio at October 2015 – Top Holdings
PORTFOLIO AT 31 OCTOBER 2015 – TOP 10 HOLDINGS REPRESENT 50.5% OF THE PORTFOLIO For personal use only * Indicates that options were outstanding against part the holding. NZ SHAREHOLDER MEETINGS 2015
Slide 26: Portfolio at October 2015 – Next holdings
PORTFOLIO AT 31 OCTOBER 2015 – NEXT 10 REPRESENT 18.1% OF THE PORTFOLIO For personal use only * Indicates that options were outstanding against part the holding. NZ SHAREHOLDER MEETINGS 2015
Slide 27: We have recently topped up some smaller positions
WE HAVE RECENTLY TOPPED UP SOME SMALLER POSITIONS For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 28: New holdings added this financial year
NEW HOLDINGS ADDED THIS FINANCIAL YEAR For personal use only NZ SHAREHOLDER MEETINGS 2015
Slide 29: Looking Ahead
For personal use only LOOKING AHEAD NZ SHAREHOLDER MEETINGS 2015
Slide 30: What is on our mind
WHAT IS ON OUR MIND For personal use only • Sluggish domestic economy. • Top line earnings growth difficult for many companies. • Changes in the Chinese economy likely to affect Australia. • Slower growth in the advanced economies. • Falling Australian dollar may assist. • Interest rates likely to s
Slide 31: What is on our mind – con't
WHAT IS ON OUR MIND – con’t. For personal use only • There are small and mid sized companies with growth prospects greater than the broader economy. • Market volatility is providing opportunities for ongoing portfolio adjustments. • Cash positions being replenished. NZ SHAREHOLDER MEETINGS 2015
Slide 32: Share Purchase Plan
SHARE PURCHASE PLAN For personal use only • Raised A$153.3 million with 17.9% of shareholders participating • Priced at A$5.51 per share (approximately $NZ 6.07 per share) - a discount of 5.0% on the VWAP on the ASX and Chi-X over the 5 trading days up to, and including, the day on which the SPP clo
Slide 33: Australian Foundation Investment Company
AUSTRALIAN FOUNDATION INVESTMENT COMPANY
Australian Foundation Investment Company — Investor Presentation (November 2015) on 6ix