Regal Investment Fund · ASX:RF1

Regal Investment Fund — Investor Presentation (July 2020)

34 slides from Regal Investment Fund's investor presentation, Jul 31, 2020

  1. Slide 1: For personal use only

    For personal use only This presentation deck accompanied an audio recording. To view the full webcast please click on the link here. 0

  2. Slide 2: Regal Investment Fund July 2020

    Equity Trustees Limited ACN 004 031 298 AFSL 240975 FUNDS MANAGEMENT ARSN 632 283 384 July 2020

  3. Slide 3: Disclaimer

    Disclaimer REG AL FUNDS MANAGEMENT Equity Trustees Limited (Equity Trustees) (ABN 46 004 031 298), AFSL240975, is the Responsible Entity for the Regal Investment Fund (ARSN 632 283 384) (ASX: RF1). Equity Trusteesis a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), publicly listed company o

  4. Slide 4: Agenda

    RF1 Review Market Update RF1 Outlook Q&A Agenda REG AL FUNDS MANAGEMENT e@ Regal Investment Fund (RF1) — Review 5 e@ Market Update 1 mm Health Care 12 mm Shorting 18 mm Resources 21 mm Emerging Companies 23 e@ Regal Investment Fund (RF1) — Outlook 27 ® Investor Q&A 30

  5. Slide 5: Regal Investment Fund (RF1) Review

    For personal use only ― ― ― ― ― ― ― ― ―

  6. Slide 6: Speakers

    RF1 Review Market Update RF1 Outlook Q&A Speakers REG AL FUNDS MANAGEMENT Brendan O'Connor Phil King Chief Executive Officer Chief Investment Officer Deepan Dr Craig Collie Ben McCallum Pavendranathan Portfolio Manager Portfolio Manager Head of Events & Trading —

  7. Slide 7: RF1 Investment Performance

    Market Update RF1 Outlook Q&A RF1 Investment Performance REGAL FUNDS MANAGEMENT Performance since listing — Net Asset Value 2020 140 Fund performance 2019 YTD* +33% 130 Regal Investment Fund (RF1) Regal Investment Fund! +11% +19% +33% 120 S&P/ASX 300 Total Return Index +5% 9% 4% 110 100 performan -4

  8. Slide 8: RF1 NAV Since Inception

    Market Update RF1 Outlook Q&A RF1 NAV Since Inception REGAL FUNDS MANAGEMENT Regal Investment Fund -—net asset value $3.5 4.5cdistribution | 18.6cdistribution | . 1 1 1 1 ' ' $3.06? $3.0 ! 1 +33% 1 1 1 $2.5 $2.28! $2.19? -4% $2.0 $1.5 Jun-19 Jut19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar

  9. Slide 9: High Conviction Picks Bounce Back

    Market Update RF1 Outlook Q&A High Conviction Picks Bounce Back REG AL FUNDS MANAGEMENT Share price performance for select RF1 high conviction stocks in 2020 Electro Optic Zip Money = PointBet |= Opthealtd Nitroltd AppenLtd Systems Life 360 — Fineos Corp XERO (Z1P) (PBH) OPT) (NTO) ‘APX) EOS) (360)

  10. Slide 10: Sector Positioning Underpins Outperformance

    Market Update RF1 Outlook Q&A Sector Positioning Underpins Outperformance REG AL FUNDS MANAGEMENT Sector overweights Sector underweights 130 —Information Technology 130 —Financials ——Health Care ——Real Estate 120 . 120 — Materials +15% — Energy 10 10 +3% 100 100 _% 90 90 -10% 80 80 -21% 70 70 60 60

  11. Slide 11: New Volatility Regime Creating Opportunities

    Market Update RF1 Outlook Q&A New Volatility Regime Creating Opportunities REG AL FUNDS MANAGEMENT VIX Index —since January 2019 90 80 70 60 Post COVID average 50 40 Pre COVID average 30 20 10 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Source: Bloomberg as at 24 July 2020

  12. Slide 12: ECM Activity Forecast To Boom

    Market Update RF1 Outlook Q&A ECM Activity Forecast To Boom REGAL FUNDS MANAGEMENT ASX equity issuance since 2007 mas A$ billion secondary capital raised, rolling 12 months = S&P/ASX 200 Index (RHS) Mmm Regal forecasts $120 7,500 7,000 $100 6,500 $80 6,000 5,500 $60 5,000 $40 4,500 4,000 $20 3,500 3

  13. Slide 13: What Has Changed Since April

    RF1 Outlook Q&A What Has Changed Since April REGAL FUNDS MANAGEMENT RF1 Review @ Australia has dealt better with COVID than anticipated == Daily new cases low until recent Victorian outbreak e@ Unprecedented fiscal and monetary stimulus == Stronger than expected @ Commodity prices stay strong 1

  14. Slide 14: Difficult To Open Up Economy With Immunity Still Low

    RF1 Review Health Care RF1 Outlook Q&A Difficult To Open Up Economy With Immunity Still Low REGAL FUNDS MANAGEMENT Percentage of population with COVID antibodies New York City 19.9% London 17.5% Stockholm Barcelona Australia Source: New York State; Carlos Ill Health Institute; Journal of Medical Vir

  15. Slide 15: Market Underestimating The Lasting Impact Of COVID

    RF1 Review Health Care RF1 Outlook Q&A Market Underestimating The Lasting Impact Of COVID REG AL FUNDS MANAGEMENT Medical tourists for ASEAN hospitals unlikely to Soaring global demand for gloves is driving large return anytime soon earnings upgrades for Malaysian manufacturers Thailand tourist arri

  16. Slide 16: Bull Market — Powering On

    RF1 Review RF1 Outlook Q&A Bull Market — Powering On REGAL FUNDS MANAGEMENT S&P/ASX 200 Index since 1992 and 10 year rolling annualised returns 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 — S&P/ASX 200 Index (LHS) ——10yr rolling S&P/ASX 200 Index returns (RHS) 1992 1994 1996 1998 2000 2002 2004

  17. Slide 17: Forecast EPS Growth Falls Off A Cliff

    RF1 Review RF1 Outlook Q&A Market Forecast EPS Growth Falls Of A Cliff REGAL FUNDS MANAGEMENT S&P/ASX 200 Industrial next twelve months EPS growth 15% 10% 5% (10%) Source: Broker research as at 24 July 2020 $120bn $100bn $80bn $60bn $40bn $20bn Government fiscal policy support by quarter Q2-20 Q3-20

  18. Slide 18: Expensive v. History

    RF1 Outlook Q&A Expensive v. History REGAL FUNDS MANAGEMENT RF1 Review S&P/ASX 200 Index 1 year forward P/E multiple 20 19.2x 18 16 14 12 10 8 1992 1993 1995 1997 1998 2000 2002 2003 2005 2007 2008 2010 2012 2013 2015 2017 2018 2020 — NIM P/E: ASX 200 ---- +] st. dev. ----Average 9 ----- 1 st. dev.

  19. Slide 19: But... Attractive v. Bonds

    RFI Review RF1 Outlook Q&A But... Attractive v. Bonds REGAL FUNDS MANAGEMENT Equity yield v. real bond yield 12% Earnings yield Real bond yield 10% 8% 6% 4% 2% ~% (2%) 1999 2002 2005 2008 2011 2014 2017 2020 Source: Broker research as at 24 July 2020 7

  20. Slide 20: Crowded Shorts Squeeze

    RF1 Review Shorting RF1 Outlook Q&A Crowded Shorts Squeeze REG AL FUNDS MANAGEMENT Performance of the Top 20 most shorted stocks in the S&P/ASX 200 Index 25% === Rolling 3 months Short Alpha (LHS) Rolling 12 months Short Alpha (RHS) 50% 20% Short Alpha: underperformance of the Top 20 most shorted st

  21. Slide 21: Growth Continues To Outperform Value

    RF1 Review Shorting RF1 Outlook Q&A Growth Continues To Outperform Value REG AL FUNDS MANAGEMENT S&P/ASX 200 Value and Growth Premium of ‘High’ vs 'Low' P/E firms 120 200% 10 +6% 160% 100 90 = 40% 120% +123% = 12% 80 80% 70 40% 60 50 ~% Dec-19 Feb-20 Apr-20 Jun-20 1998 2002 2005 2009 2012 2016 2020

  22. Slide 22: Retail Investor Euphoria

    RF1 Review Shorting RF1 Outlook Q&A Retail Investor Euphoria REG AL FUNDS MANAGEMENT Google Trends analysis on retail investor activity Retail broker share — June qtr. market share v. CY19 350 9, 60% +55% 300 50% 250 40% 200 9 +27% 150 30% +25% 27% 100 7 ' 70% +20% so | V7 10% Jul-19_ Sep-19 Nov-19

  23. Slide 23: Fiscal Stimulus Largest Since WW2

    RFI Review Resources RF1 Outlook Q&A Fiscal Stimulus Largest Since WW2 REGAL FUNDS MANAGEMENT Australian Government budget balance percentage of GDP — Australian Government budget balance, reversed percentage of GDP (LHS) | ==ASX Resources Index, logarithmic (RHS) WW1 & Great (30%) Depression GFC CO

  24. Slide 24: Gold Price Roars Past The Post GFC Peak

    RFI Review Resources RF1 Outlook Q&A Gold Price Roars Past The Post GFC Peak REG AL FUNDS MANAGEMENT ASX Gold Miners Index vs US$ gold price — US$ Gold Price (LHS) ——Australian Gold Miners (RHS)! $2,000 1,400 1,200 $1,600 1,000 $1,200 800 $800 600 400 $400 200 $- _ 2000 2002 2004 2007 2009 2011 2013

  25. Slide 25: Sector Exposure More Important Than Country Exposure

    RF1 Review Emerging Companies RF1 Outlook Q&A Sector Exposure More Important Than Country Exposure REG AL FUNDS MANAGEMENT Global Index returns—year to date 130 +16.1% +13.8% -6.0% “8.5% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 —S8&P/ASX All Technology Total Return Index — NASDAQ Total Retur

  26. Slide 26: The ASX Dominated By 'Old World' Stocks

    RF1 Review Market | Emerging Companies The ASX Dominated By ‘Old World’ Stocks RF1 Outlook Q&A REGAL FUNDS MANAGEMENT S&P/ASX 200 Index Information Technology 4% Health care 12% Communications A% Materials & Energy 24% Other 56% Source: Bloomberg as at 24 July 2020 S&P 500 Index Information Other Te

  27. Slide 27: Providing Access To New-World Industries

    RF1 Review Emerging Companies RF1 Outlook Q&A Providing Access To New-World Industries REG AL FUNDS MANAGEMENT — Artificial intelligence —; Advanced manufacturing 3 p= EVbattery technology = —=Next generation / BNPL— 2appen eos NOVONI.@m 2 zip BNPL Neo-lender Biotechnology ———,_ = Regenerative medic

  28. Slide 28: Regal Investment Fund (RF1) Outlook

    For personal use only • • • • • • •

  29. Slide 29: Delivering Unitholder Value

    RF1 Review Market Update Q&A Delivering Unitholder Value REGAL FUNDS MANAGEMENT Investment Performance Top quartile returns! YA investor Alignment Significant staff ownership v Capital Management Accretive share buy-back Vf Communications Strategy Investor roadshows Note: (1) Regal peer group compar

  30. Slide 30: Buyback Has Provided Accretion and Liquidity

    RF1 Review Market Update Q&A Buyback Has Provided Accretion and Liquidity REG AL FUNDS MANAGEMENT The RF1 buyback has been 23% of the traded volume since initiation AS/share Weekly share buyback (000° shares) Regal | tI t Fund (RF1) A$/shi 000" shares Lt — $2.75 eekly share buybacl shares ‘egal Inve

  31. Slide 31: RF1 Share Price

    RF1 Review Market Update Q&A RF1 Share Price REG AL FUNDS MANAGEMENT RF1 share price— adjusted for distributions $3.0 1 Buy-back announced 50% i 1 RF1 Investor Roadshow 1 Aprillnvestor Webinar ! ! ! $2.53? $2.5 y J ' +11% $2.28) ! ! ! 1 1 1 $2.0 : — ' ~% ar 1 1 1 1 1 1 1 $1.5 1 1 I 1 1 1 1 1 1 1 1 1

  32. Slide 32: Investor Q&A

    RFI Review Market Update RF1 Outlook Investor Q&A REG AL FUNDS MANAGEMENT Brendan O'Connor Phil King Chief Executive Officer Chief Investment Officer Deepan Dr Craig Collie Ben McCallum Pavendranathan Portfolio Manager Portfolio Manager Head of Events & Trading — 30

  33. Slide 33: For personal use only

    For personal use only ― ― ― ― ― ― ― ― ― ― ― ― ― ― ― ― ― ― ―

  34. Slide 34: Contact Details

    Contact Details REGAL FUNDS MANAGEMENT Regal Funds Management Pty Ltd Level 47, Gateway, 1 Macquarie Place Sydney, NSW 2000 AUSTRALIA Tel: +61-2-8197-4333 Email: info@regalfm.com Website: www.regalfm.com AFSL277737 ABN 30107 576 821 Regal Funds Management Asia Pte Ltd 80 Raffles Place #26-23 UOB Pla

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