Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Shareholder Meeting (October 2015)
32 slides from Australian Foundation Investment's shareholder meeting presentation, Oct 7, 2015
Slide 1: 2015 Annual General Meeting Presentation
7 October 2015 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited 2015 Annual General Meeting Presentation Dear Sir / Madam Please fin
Slide 2: Annual General Meeting October 2015
For personal use only ANNUAL GENERAL MEETING OCTOBER 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: Chairman's Introduction
For personal use only CHAIRMAN’S INTRODUCTION ANNUAL GENERAL MEETING OCTOBER 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 ANNUAL GENERAL MEETING OCTOBER 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 ANNUAL GENERAL MEETING OCTOBER 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 ANNUAL GENERAL MEETING OCTOBER 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 ANNUAL GENERAL MEETING OCTOBER 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: Share price has moved back to a premium
SHARE PRICE HAS MOVED BACK TO A PREMIUM For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 12: Share price performance – per annum return to September 2015
SHARE PRICE PERFORMANCE – PER ANNUM RETURN TO 30 SEPTEMBER 2015 For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 13: The Market
For personal use only THE MARKET ANNUAL GENERAL MEETING OCTOBER 2015
Slide 14: With lower prospects for growth the market has declined from near term highs
WITH LOWER PROSPECTS FOR GROWTH THE MARKET HAS DECLINED FROM NEAR TERM HIGHS For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 15: Market valuations back to more reasonable levels
HOWEVER MARKET VALUATIONS (PRICE EARNINGS RATIO) ARE BACK TO MORE REASONABLE LEVELS For personal use only Source: FactSet. ANNUAL GENERAL MEETING OCTOBER 2015
Slide 16: Portfolio
For personal use only PORTFOLIO ANNUAL GENERAL MEETING OCTOBER 2015
Slide 17: Short term portfolio performance impacted by energy holdings and underweight property
SHORT TERM PORTFOLIO PERFORMANCE IMPACTED BY ENERGY HOLDINGS AND UNDERWEIGHT PROPERTY EXPOSURE – PER ANNUM RETURN TO 30 SEPTEMBER 2015 For personal use only After tax and expenses. Ignores benefits of franking and LIC tax credits. ANNUAL GENERAL MEETING OCTOBER 2015
Slide 18: Per annum return including benefit of franking credits
PER ANNUM RETURN TO 30 SEPTEMBER 2015 INCLUDING THE BENEFIT OF FRANKING CREDITS For personal use only After tax and expenses. Ignores benefits LIC tax credits. ANNUAL GENERAL MEETING OCTOBER 2015
Slide 19: Portfolio remains well positioned although making 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 September 2015
BANKS – PORTFOLIO AT 30 SEPTEMBER 2015 For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 21: Energy – Portfolio at September 2015
ENERGY – PORTFOLIO AT 30 SEPTEMBER 2015 For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 22: Consumer Staples – Portfolio at September 2015
CONSUMER STAPLES – PORTFOLIO AT 30 SEPTEMBER 2015 For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 23: Real Estate – Portfolio at September 2015
REAL ESTATE – PORTFOLIO AT 30 SEPTEMBER 2015 For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 24: Healthcare – Portfolio at September 2015
HEALTHCARE – PORTFOLIO AT 30 SEPTEMBER 2015 For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 25: Portfolio at September 2015 – Top Holdings
PORTFOLIO AT 30 SEPTEMBER 2015 – TOP 10 HOLDINGS REPRESENT 51.3% OF THE PORTFOLIO For personal use only * Indicates that options were outstanding against part the holding. ANNUAL GENERAL MEETING OCTOBER 2015
Slide 26: Portfolio at September 2015 – Next 18.2% of the portfolio
PORTFOLIO AT 30 SEPTEMBER 2015 – NEXT 10 REPRESENT 18.2% OF THE PORTFOLIO For personal use only * Indicates that options were outstanding against part the holding. ANNUAL GENERAL MEETING OCTOBER 2015
Slide 27: Response to recent market weakness – topped up smaller positions
OUR RESPONSE TO RECENT MARKET WEAKNESS – WE HAVE TOPPED UP SOME SMALLER POSITIONS For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 28: Response to recent market weakness – added new holdings
OUR RESPONSE TO RECENT MARKET WEAKNESS – WE HAVE ADDED SOME NEW HOLDINGS For personal use only ANNUAL GENERAL MEETING OCTOBER 2015
Slide 29: Looking Ahead
For personal use only LOOKING AHEAD ANNUAL GENERAL MEETING OCTOBER 2015
Slide 30: Comments on the Australian Equity Market
COMMENTS ON THE AUSTRALIAN EQUITY MARKET 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. • Inter
Slide 31: Share Purchase Plan
SHARE PURCHASE PLAN • Board has initiated a share purchase plan For personal use only • Maximum of $15,000 per shareholder • Open to shareholders on the register at 6 October • Offer opens 16 October, closes 16 November • Priced at a discount of 5.0% on the VWAP over the 5 trading days up to, and in
Slide 32: Australian Foundation Investment Company
AUSTRALIAN FOUNDATION INVESTMENT COMPANY
Australian Foundation Investment Company — Shareholder Meeting (October 2015) on 6ix