Pacific Current Group Ltd · ASX:PAC
Pacific Current — Treasury Group — Shareholder Meeting (November 2013)
27 slides from Pacific Current's shareholder meeting presentation, Nov 7, 2013
Slide 1: Treasury Group Limited Annual General Meeting
Treasury Group Limited Annual General Meeting 7 November 2013
Slide 2: Agenda
Agenda 1. Chairman’s Address 2. Review of 2013 3. Strategy & Opportunities 4. Outlook & Summary 5. Formal Items of Business 2
Slide 3: Chairman's Address - a year of strong growth and increasing momentum
Chairman’s Address - a year of strong growth and increasing momentum • FUM at June 2013- $17.1bn, up 4.6% on previous year • Underlying NPAT $10.6m, up 30.9% year on year • TRG total shareholder return of 89.6% vs 20.7% for the S&P/ASX All Ordinaries • Strong investment performance from RARE Infrast
Slide 4: Chairman's Address – high activity levels
Chairman’s Address – high activity levels IML Winner AFMA Australian Large Evergreen IML OCTIS Celeste Merger discussions Restructure Acquisition Winner Zenith Australian Small Cap commence with of team Freehold Investment completed AFMA Winner Australian Small Cap equity Management TAAM incentives
Slide 5: Chairman's Address - dividends
Chairman’s Address - dividends Dividend History 45 40 • Full year dividends of 40cps fully 35 franked 30 cps 25 • Cash, Available for Sale 20 Investments and Loans to Boutiques of $24.3m at 30 June 15 10 5 0 2009 2010 2011 2012 2013 Interim Final 5
Slide 6: Chairman's Address - industry experienced a return to inflows
Chairman’s Address - industry experienced a return to inflows… although outflows to equities continued Australian Managed Funds Industry - Quarterly Funds Flows $bn Source: Morningstar Funds Flows ; Industry = Australia Funds ex ETF 6
Slide 7: Agenda
Agenda 1. Chairman’s Address 2. Review of 2013 3. Strategy & Opportunities 4. Outlook & Summary 5. Formal Items of Business 7
Slide 8: Review of 2013 – significant outcomes during the year
Review of 2013 – significant outcomes during the year • Underlying earnings up 32%. Statutory earnings up 54% • Performance of key boutiques strong, particularly RARE, IML and Celeste • Swing back to Retail inflows for key boutiques during year • Pro-active approach to management of TRG interests −
Slide 9: Review of 2013 – very strong returns to shareholders
Review of 2013 – very strong returns to shareholders Total Shareholder Return (TRG vs S&P/ASX All Ordinaries & Peer Group) 275 Treasury Group Limited +153.5% 250 Peer Group Index +89.6% 225 S&P/ASX All Ordinaries TR 200 +99.0% Index 175 (Jul 12=100) 150 +56.6% +33.7% 125 100 +20.7% 75 50 Source: Tre
Slide 10: Review of 2013 – improved financial results across the board
Review of 2013 – improved financial results across the board % P&L Highlights ($m) 2013 2012 • Aggregate net funds inflows to RARE, Change IML and Celeste of $488m (versus Year end FUM ($bn) 17.1 16.4 +4.6 outflows of $40m in prior year) Aggregate Boutique Mgmt Fees 83.0 71.0 +16.9 ($m) • Institutio
Slide 11: Review of 2013 - RARE drove significant profit growth during year
Review of 2013 - RARE drove significant profit growth during year Contribution to FY13 NPAT by Business Segment 12.0 0.714 10.391 10.0 3.217 8.0 0.406 (0.698) 6.752 6.0 $m 4.0 2.0 0.0 FY12 Australian International Alternative Overhead, FY13 Equities Equities Equities Outsourcing, RE Services & One o
Slide 12: Growth in FUM at RARE and IML driving improved financial outcomes
Review of 2013 - Growth in FUM at RARE and IML driving improved financial outcomes for TRG Composition of FUM vs Average Margin 18 80 16 70 Trilogy 14 60 Evergreen & AR Capital 12 Celeste 50 TAAM 10 FUM 40 Aubrey & Global Value Investors Avg Margin $bn 8 (bps) RARE Infrastructure at year end 30 6 Or
Slide 13: Review of 2013 - Boutiques
Review of 2013 - Boutiques • Excellent momentum at RARE, IML and Celeste − Strong performance, multiple Fund Manager of the Year nominations − Retail net funds inflow (in aggregate) of $488 million (FY2013), compared to net funds outflow of $40 million (FY2012) − Net funds inflow (Retail & Instituti
Slide 14: TRG's key boutiques have delivered alpha to investors over the long term
Review of 2013 – TRG’s key boutiques have delivered alpha to investors over the long term Boutique Investment Performance Since Inception (%pa to end September 2013) Net Inception Selected Funds Alpha Sample Ratings Return Date Aubrey Global Conviction +12.7% +1.2 Jan 2007 Zenith- Recommended Celest
Slide 15: Agenda
Agenda 1. Chairman’s Address 2. Review of 2013 3. Strategy & Opportunities 4. Outlook & Summary 5. Formal Items of Business 15
Slide 16: Strategy & Opportunities – progress during 2013
Strategy & Opportunities– progress during 2013 • Significant investment in review of new investment opportunities: 73 opportunities assessed since July • Andrew Howard appointed as Chief Investment Officer in August 2013 • Relationship commenced with PM Capital (fee for service) • Proactive manageme
Slide 17: Strategy & Opportunities - strong deal flow seen through the year
Strategy & Opportunities- strong deal flow seen through the year Deal Flow Analysis (Since July 2012) 100% ------ 90% 80% 27 70% ------ 60% # of Deals 50% 73 17 40% ------ 9 30% ------ 20% 10 ------ 10% 9 1 0% ------ 17
Slide 18: Strategy & Opportunities
Strategy & Opportunities • Expand and diversify portfolio of boutiques • Proactive management of investments and interests • Improve capacity to provide seed funding • Invest in Distribution and Marketing capabilities • Pursue efficiency from support services • Pursue M&A opportunities at corporate
Slide 19: Agenda
Agenda 1. Chairman’s Address 2. Review of 2013 3. Strategy & Opportunities 4. Outlook & Summary 5. Formal items of Business 19
Slide 20: Outlook & Summary – market environment evolving
Outlook & Summary– market environment evolving • Australian Market trends − Introduction of MySuper: increased focus on cost will drive demand for ‘value for money’ strategies − Growing post retirement market: ageing population and the SMSF market require more strategies aligned with the objectives
Slide 21: Outlook & Summary – TRG well positioned
Outlook & Summary – TRG well positioned • FY2013 was a year of strong earnings growth and increasing momentum • TRG business model leveraged to markets − All Ords started FY2014 a higher level than average for FY2013 − Momentum at RARE, IML and Celeste continuing: Retail net inflows running at $51.6
Slide 22: Agenda
Agenda 1. Chairman’s Address 2. Review of 2013 3. Strategy & Opportunities 4. Outlook & Summary 5. Formal Items of Business 22
Slide 23: Formal Items of Business
Formal Items of Business Item 1: Financial statements and reports “To receive and consider the Financial Report, the Directors’ Report and the Auditor’s Report for the year ended 30 June 2013” 23
Slide 24: Formal Items of Business
Formal Items of Business Item 2: Re-election of Mr Michael Fitzpatrick “That Mr Michael Fitzpatrick, a Director retiring by rotation in accordance with the Company’s constitution and offering himself for re-election, be re-elected as a Director of the Company.” Proxies have been received in respect
Slide 25: Formal Items of Business
Formal Items of Business Item 3: Adoption of Remuneration Report “To adopt the remuneration report forming part of the Directors’ Report for the financial year ended 30 June 2013” Proxies have been received in respect of the resolution as follows: In favour Against Abstention Proxy’s Discretion 4,19
Slide 26: Partnering with outstanding investment professionals to deliver superior investment performance
Partnering with outstanding investment professionals to deliver superior investment performance to clients Superior alignment of investment team incentives to client outcomes Equity ownership delivers greater team stability Treasury Group value add: • Distribution and marketing capability • Efficien
Slide 27: Disclaimer
Disclaimer The information in this presentation is general background information about Treasury Group Limited and is current only at the date of this presentation. In particular, this presentation: • is not an offer or recommendation to purchase or subscribe for securities in Treasury Group limited