Associate Global Partners Limited · ASX:APL
Associate Global Partners — Contango Asset Management — FY2017 Earnings Presentation
18 slides from Associate Global Partners's earnings presentation, August 2017
Slide 1: Investor Update August 2017
INVESTOR UPDATE August 2017 Confidential 1 | CONTANGO ASSET MANAGEMENT
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: FY17 Highlights
FY17 HIGHLIGHTS FY17 Since February 2017 June 2017 30 June 2017 INCREASING SUCCESSFUL LAUNCH SUCCESSFUL LAUNCH INCREASING FUMA REVENUE OF LISTED SWITZER OF CONTANGO GLOBAL DIVIDEND GROWTH ETF GROWTH $4.1m $30-$100m* $100m $752.6m Revenue Rapid FUM growth for Switzer IPO raised Asset Management (SAM)
Slide 4: FY17 FUMA Growth (9 Months Only)
FY17 FUMA GROWTH (9 MONTHS ONLY) Strong growth in FUMA in only 9 months while establishing Contango’s operating platform FUMA GROWTH, AUG 16 TO JUN 17 ($ million) 760.0 740.0 752.6 720.0 700.0 680.0 676.8 660.0 640.0 620.0 Aug 16 Jun 17 4 | CONTANGO ASSET MANAGEMENT
Slide 5: Successful Rollout of Product Suite – Contango Global Growth
SUCCESSFUL ROLLOUT OF PRODUCT SUITE CONTANGO GLOBAL GROWTH LIMITED (ASX: CQG) Successful launch of Contango Global Growth Limited $100 Million Raised Over 2,500 shareholders ASX listed in June 2017 Undertaken in conjunction with leading California- based fund manager, WCM Investment Management which
Slide 6: Successful Rollout of Product Suite – Switzer Dividend Growth Fund
SUCCESSFUL ROLLOUT OF PRODUCT SUITE SWITZER DIVIDEND GROWTH FUND (AXW: SWTZ) Successful launch of active ETF $50 million raised in two weeks following 12 month lead time in February 2017 Over 2,500 unitholders Steady increase in FUMA since launching to $66 million as at 31 July 2017 Highly scalable
Slide 7: Switzer Active ETF – Growing Strongly
SWITZER ACTIVE ETF – GROWING STRONGLY STRONG FUMA GROWTH & UNITS ON ISSUE 70,000,000 28,000,000 68,000,000 27,000,000 66,000,000 FUNDS UNDER MANAGEMENT. $ 26,000,000 64,000,000 25,000,000 NUMBER OF UNITS ON 62,000,000 60,000,000 24,000,000 ISSUE 58,000,000 23,000,000 56,000,000 22,000,000 54,000,000
Slide 8: Diversifying FUMA and Revenue Streams
DIVERSIFYING FUMA AND REVENUE STREAMS Fixed Income 5% Global Fixed Income 12% 5% Large/Mid Cap 37% Large/Mid Cap 40% 30 JUN 17 31 AUG 16 TOTAL TOTAL FUM FUM $676M $752.6M Small/Micro Cap 58% Small/Micro Cap 43% 8 | CONTANGO ASSET MANAGEMENT
Slide 9: FY18 Strategic Growth Path
FY18 STRATEGIC GROWTH PATH GENERATE FURTHER INCREASES IN FUM AND RECURRING REVENUE • leverage off existing business platform, with little additional investment required • target institutional and SMA/MDA mandates via IFAs and wealth planning networks • convert retail and institutional FUMA pipeline
Slide 10: Strong Growth in Switzer Platform
STRONG GROWTH IN SWITZER PLATFORM THE SWITZER NETWORK CGA owns 46% of Switzer Asset Management (SAM) SAM will leverage a network of over 300,000 SAM launched in February 2017 and from an initial base of around $30 million has grown FUMA to investors to drive FUMA via a unique multi approximately $10
Slide 11: Enhancement of Existing LIC Structure
ENHANCEMENT OF EXISTING LIC STRUCTURE CONTANGO MICROCAP LIMITED (ASX: CTN) Priority Offer to CTN Single manager structure restored Active capital management – Improved shareholder shareholders and completion of to improve efficiency and reduce on market buyback activated communications including $27
Slide 12: Enhancement of Existing LIC Structure, Cont.
ENHANCEMENT OF EXISTING LIC STRUCTURE, CONT. CONTANGO INCOME GENERATOR LIMITED (ASX: CIE) November 2016 - Refreshed board of directors – new independent chairman November 2016 - Significant reduction in directors’ fees November 2016 - Completion of $27m CIE block trade Ongoing - Improved shareholder
Slide 13: Highly Scalable Operating Platform – High Calibre Team
HIGHLY SCALABLE OPERATING PLATFORM – HIGH CALIBRE TEAM Substantial investment in high calibre legal, compliance, operations and STAFF 30 JUNE 2017 finance resources recruited to the business. Key hires include: Investment Team • CFO • General Counsel and Company Secretary Portfolio Managers/Analysts
Slide 14: FY17 Profit and Loss
FY17 PROFIT AND LOSS UNDERLYING AND STATUTORY RESULTS (INCLUDES NINE MONTHS CONTRIBUTION FROM FY17 CONTANGO FUNDS MANAGEMENT LTD TO 30 JUNE 2017, $M) Revenue 4.15 Expenses Employee costs (3.10) Other operational expenses (2.49) Underlying EBITDA (1.44) Depreciation and amortisation (0.45) Underlying
Slide 15: FY17 Profit and Loss Commentary
FY17 PROFIT AND LOSS COMMENTARY REVENUE COSTS • Reported revenues are from 29th September, 2016 (date of • Employee costs include significant investment in legal, compliance, acquisition of Contango Funds Management Ltd) to 30th June, operations and finance teams which is complete 2017 • One off cos
Slide 16: Equity Placement
EQUITY PLACEMENT Successful completion of placement to raise gross proceeds of $5.0m from strategic high net worth and institutional investors to fund Contango’s future growth strategy KEY INFORMATION DETAIL USE OF PROCEEDS • Further rollout of product suite Number of Placement Shares to be Issued 5
Slide 17: Summary
SUMMARY Significant FY17 growth Highly scalable operating FY18 growth from institutional Debt free balance sheet achieved platform in place and retail FUMA pipeline and with excess cash to fund é FUMA new products expansion é Revenue é New product launches 17 | CONTANGO ASSET MANAGEMENT
Slide 18: Contact Details
CONTACT DETAILS George Boubouras Managing Director (MD) and Chief Investment Officer (CIO) Contango Asset Management Limited Tel: +61 (3) 9222 2324 Mobile: +61 414 614 225 E-mail: gboubouras@contango.com.au 18 | CONTANGO ASSET MANAGEMENT
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