Ai Private Opportunities Trust · ASX:AIX
Ai Private Opportunities Trust — Pengana International Equities — FY2024 Earnings Presentation
24 slides from Ai Private Opportunities Trust's earnings presentation, August 2024
Slide 1: Pengana International Equities Limited 30 June 2024 Investor Presentation
PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) 30 June 2024 Investor Presentation Zenith Independent Investment Research Lonsec Recommended Recommended Investment Grade
Slide 2: Important Information & Disclosures
IMPORTANT INFORMATION & DISCLOSURES This report has been prepared by Pengana Investment Management Ltd (ABN 69 063 081 612, Australian Financial Services Licence No. 219462) (“Pengana”). This report does not contain any investment recommendation or investment advice and has been prepared without tak
Slide 3: Agenda
PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) AGENDA I Corporate overview II Highlights for the year ending 30 June 2024 The Strategy III Portfolio update from Harding Loevner IV Harding Loevner overview PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) | PAGE 3
Slide 4: Corporate Overview
CORPORATE OVERVIEW RESPONSIBLE INVESTING – CAPITAL GROWTH – RELIABLE INCOME PIA’s objective is to provide shareholders with: • capital growth from investing in an ethically screened and actively managed portfolio of international businesses, and • regular, reliable and fully franked dividends, paid
Slide 5: Responsible Investing: The Largest International Ethical LIC on the ASX
RESPONSIBLE INVESTING: THE LARGEST INTERNATIONAL ETHICAL LIC ON THE ASX Ethical Screens Pre trade application of Pengana’s Ethical Screens that seek to avoid investment in companies that derive operating revenues from direct and material business involvement1 in the following: o Adult content, alc
Slide 6: Agenda
PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) AGENDA I Corporate overview II Highlights for the year ending 30 June 2024 The Strategy III Portfolio update from Harding Loevner IV Harding Loevner overview PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) | PAGE 6
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDING 30 JUNE 2024 Final quarter dividend 1.35 cps to be paid on 16 September Annual dividend1 5.4 cps paid quarterly, yield of 5.0% or 2024, fully franked at 30% tax rate 7.1% grossed up for franking Net Assets $333 million or $1.29 per share (post-tax) Net Assets
Slide 8: Sustainable Fully Franked Dividends
SUSTAINABLE FULLY FRANKED DIVIDENDS PIA’s objective is to provide shareholders with capital growth from investing in an ethically screened and actively managed portfolio of global businesses, in addition to providing shareholders with regular, reliable and fully franked dividends Annual Dividend Tar
Slide 9: Dividend Yield
DIVIDEND YIELD Quarterly Fully Franked Dividends The current profit reserves & franking balance are able to sustain fully franked quarterly dividends into FY2027 Based on closing share price at 16 August 2024 and a 30% company tax rate PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) | PAGE 9
Slide 10: NTA and Share Price Movements July 2017 to June 2024
NTA AND SHARE PRICE MOVEMENTS 1 JULY 2017 TO 30 JUNE 2024 Pre Tax NTA Share Price $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 Jan 22 Jul 22 Jan 23 Jul 23 Jan 24 As at 18 August 2023. Source: Bloomberg and Pengana Capital.
Slide 11: Agenda
PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) AGENDA I Corporate overview II Highlights for the year ending 30 June 2024 The Strategy III Portfolio update from Harding Loevner IV Harding Loevner overview PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) | PAGE 11
Slide 12: Top Holdings
TOP HOLDINGS AS AT 30 JUNE 2024 Alcon Inc Switzerland Health Care Alphabet Inc United States Communication Services Amazon United States Consumer Discretionary Meta United States Communication Services Microsoft United States Information Technology Netflix Inc United States Communication Services Ro
Slide 13: Portfolio Positioning
PORTFOLIO POSITIONING EXPOSURES AS AT 30 JUNE 2024 GEOGRAPHIC EXPOSURE SECTOR EXPOSURE Under/Over Under/Over Cash Cash Utilities Western Europe Real Estate Middle East Materials Information Technology Eastern Europe Industrials Asia Health Care Financials Pacific Energy South America Consumer Staple
Slide 14: Quality & Growth Investment Philosophy
QUALITY & GROWTH INVESTMENT PHILOSOPHY WE BUILD DIVERSIFIED PORTFOLIOS OF HIGH-QUALITY, GROWING COMPANIES. More Profitable Lower Risk Faster Growth Profit Margin Return on Assets Return on Equity Std. Dev. of ROE Debt/Equity Sales Growth Earnings Growth Cash Flow Growth 22.0 18.6 16.6 64.7 14.9 14.4
Slide 15: What's On Our Mind?
WHAT’S ON OUR MIND? Four years after the COVID-19 outbreak, the global macroeconomy is nearly healed, but risks remain 1 The current backdrop Economic activity and inflation continue to slow, as unemployment levels remain low Interest rates will fall (further) but are unlikely to revisit pre-pandemi
Slide 16: Investing in Waves of AI Innovation
INVESTING IN WAVES OF AI INNOVATION The AI tsunami moves from semiconductors to platforms to software and services The portfolio is actively managed, therefore holdings shown may not be current. The portfolio holdings identified above do not represent all the securities held in the portfolio. PENGAN
Slide 17: Rising Quality Stance at Lower Valuations
RISING QUALITY STANCE AT LOWER VALUATIONS We have maintained our quality and growth premium while lowering relative valuation HL Global vs. MSCI ACWI: Relative Quality, Growth, and Value Rank Quality Growth Value 1.50 1.50 1.50 1.40 1.40 Weighted Average Relative Rank 1.40 1.30 1.30 1.30 1.20 1.20 1
Slide 18: Agenda
PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) AGENDA I Corporate overview II Highlights for the year ending 30 June 2024 The Strategy III Portfolio update Harding Loevner IV Harding Loevner overview PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) | PAGE 18
Slide 19: Investment Hypothesis
INVESTMENT HYPOTHESIS Investing in high quality, growing businesses at reasonable prices leads to long term superior risk adjusted returns. This “QUALITY GROWTH” Investment philosophy has been the foundation of our strategies since the firm was founded. PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: P
Slide 20: Investment Process
INVESTMENT PROCESS Analysts search the world for companies that meet high quality and sustainable growth criteria, conduct fundamental research, then value and rate their stocks to make them available to PMs for investment. ESG issues are considered in each step of the process. Collaborative, Highly
Slide 21: Investment Strategy
INVESTMENT STRATEGY DECISION MAKING PRODUCING A DISTINCTIVE PATTERN OF PERFORMANCE 5-Year Annualised Rolling Returns (Net, AUD)1 25 The Harding Loevner Global Equity strategy invests worldwide in high- HL Global Equity Returns (net AUD %) 20 quality, growing companies. 15 Outperform The Global Equit
Slide 22: Harding Loevner Global Equity Performance
HARDING LOEVNER GLOBAL EQUITY PERFORMANCE Growth of $100,000 invested since inception1 (net, AUD) to June 30, 2024 $2,000,000 $1,750,000 $1.84 million $1,500,000 $1.37 million $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 Dec-89 Dec-92 Dec-95 Dec-98 Dec-01 Dec-04 Dec-07 Dec-10 Dec-13 Dec-16 De
Slide 23: Harding Loevner Global Equity Performance
HARDING LOEVNER GLOBAL EQUITY PERFORMANCE Performance (net, AUD) as at June 30, 2024 1M 3M 6M 1Y 2Y (pa) 3Y (pa) 4Y (pa) 5Y (pa) 7Y (pa) 10Y (pa) SI1 (pa) HL Global Equity Strategy 3.0 0.0 11.5 15.7 17.9 2.2 8.0 9.3 10.5 12.0 8.8 (Partial Simulation)2 MSCI World Total Return 1.6 0.3 14.2 19.8 21.1 1
Slide 24: For More Information
PENGANA INTERNATIONAL EQUITIES LIMITED (ASX: PIA) FOR MORE PENGANA CAPITAL LIMITED ABN 30 103 800 568 CLIENT SERVICE T: +61 2 8524 9900 INFORMATION AFSL 226566 E: clientservice@pengana.com pengana.com/pia Level 27, Governor Phillip Tower, 1 Farrer Place Sydney, NSW 2000 T: +61 2 8524 9900 F: +61 2 8
Pengana International Equities — FY2024 Earnings Presentation on 6ix