NAOS Small Cap Opportunities Company Ltd · ASX:NSC
NAOS Small Cap Opportunities — Contango Asset Management — Investor Presentation (August 2019)
18 slides from NAOS Small Cap Opportunities's investor presentation, August 2019
Slide 1: Investor Update
Investor Update Marty Switzer | CEO and Managing Director August 2019
Slide 2: Disclaimer
Disclaimer This document has been prepared by Contango Asset Management Limited (ABN 56 080 277 998) (CGA) and comprises written materials/slides for a presentation concerning CGA. This is not a prospectus, disclosure document or offering document. CGA its officers, employees, agents and related bod
Slide 3: Key Highlights FY2019
Key Highlights FY2019 August 18 Strengthening of the Board with the appointment of Ms Nerida Campbell as a Non-Executive Director. September 18 Launch of WCM Quality Global Growth Fund (Quoted Managed Fund) (ASX:WCMQ). September 18 Shareholder approval for the acquisition of Switzer Asset Management
Slide 4: Strong Growth in Retail FUM since 2017
Strong Growth in Retail FUM since 2017 As at 23 August 2019, Contango’s FUM totalled $516 million $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 Income Global Equities *NB: Contango Microcap Limited management rights reassigned in October 2017 4
Slide 5: Strong Growth in Retail FUM
Strong Growth in Retail FUM Strong growth has been achieved since the launch of Switzer Asset $400 million + Management and Contango’s strategic shift from being a manufacturer of Retail FUM growth since 1 Jan product to a marketing and distribution platform, targeting the self- 2017 directed and IF
Slide 6: Contango Asset Management Product Suite
Contango Asset Management Product Suite Product Suite Global Equities Income WCM Quality Global WCM Quality Global WCM International Switzer Dividend WCM Global Growth Contango Income Switzer Higher Yield Growth Fund (Quoted Growth Fund Small Cap Growth Growth Fund (Quoted Limited Generator Limited
Slide 7: A Proven World Class Investment Manager
A Proven World Class Investment Manager WCM Investment Management QUALITY GLOBAL GROWTH • WCM Investment Management (WCM) is a top quartile global and international equities STRATEGY specialist with total funds under management (FUM) of over A$57 billion. • Based in Laguna Beach, California, WCM's i
Slide 8: WQG Options Exercise and Partial Underwriting
WQG Options Exercise and Partial Underwriting • In June / July 2019, WCM Global Growth Limited (WQG) completed a successful exercise and partial underwriting of the majority of the company’s listed options which expired on 24 June 2019. • The successful issue resulted in additional capital being rai
Slide 9: WCM Product Suite
WCM Product Suite WCM Quality Global WCM Quality Global WCM Global Growth Growth Fund WCM International Small Cap Growth Growth Fund Limited (Quoted Managed Fund (Managed Fund) (Managed Fund) Fund) Listed Investment Exchange-traded Company Unlisted Managed managed fund Unlisted Wholesale Managed Fun
Slide 10: Outstanding Global Equities Performance
Outstanding Global Equities Performance Cumulative outperformance of WCM QGG strategy vs. ACWI. Notes: Analysis is as at 30th June 2019 vs the MSCI ACWI Index. WCM QGG Composite returns are post (net of) fees. Past performance is not indicative of future performance. Source: Quality Global Growth (Q
Slide 11: Outstanding Global Equities Performance
Outstanding Global Equities Performance Annualised returns of WCM QGG strategy vs. ACWI. Performance WCM Quality Benchmark (MSCI All Country Relative Annualised, after fees Global Growth World Index ex-Australia) 1 Year 26.3% 11.9% 14.4% 3 Year 19.3% 14.5% 4.8% 5 Year 20.8% 13.3% 7.5% 10 Year 17.3%
Slide 12: Australian Equity Income Strategies
Australian Equity Income Strategies • Contango has two Equity Income products that are targeted at the direct and intermediary market. • Whilst the environment has been challenging for value oriented, yield generating stocks, the investment team has delivered on its objective of providing consistent
Slide 13: New Product Launches
New Product Launches WCM Quality Global Growth Fund (Managed Fund) • In June 2019, Contango announced the launch the WCM Quality Global Growth Fund (Managed Fund) (WCMM). • WCMM recently received seed capital as well as a recommended rating from leading research house Lonsec and will be accessible t
Slide 14: Increased Annualised Revenue
Increased Annualised Revenue Revenue Growth • Based on FUM as at 23 August 2019, Contango’s revenue run rate is approximately $4.0 million per annum (excluding any performance fees earned). • The biggest contributors to revenue growth have been the launch and ongoing growth of WCMQ and the WQG optio
Slide 15: Reduced Cost Base
Reduced Cost Base • Cost control continues to be a key focus for management. • In FY2019 changes to the operating structure resulted in substantial savings across key expense lines including: o employee benefits; o professional services; o operations; and o corporate and administrative. • There were
Slide 16: Cash Position
Cash Position • In July 2019 Contango invested $1.2 million in relation to the partial underwriting of WQG’s listed options. • Contango’s cash balance at 31 July 2019 was $3.0 million. • Contango currently has a receivable of $5.0 million in total (net of GST) from NAOS Asset Management Limited for
Slide 17: Strategic Priorities FY2020
Strategic Priorities FY2020 • We have built the • Cost control continues to Costs be a key focus for distribution capability required to organically management on the path grow our existing products to being cash flow positive DISTRIBUTION and profitability. in the advised and self- COSTS CAPABILITY
Slide 18: Contact Details
Contact Details Marty Switzer CEO and Managing Director Contango Asset Management Level 6, 10 Spring Street Sydney NSW 2000 Australia 0407 297 702 (Marty Switzer) 1300 001 750 18
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