Regal Partners Limited · ASX:RPL
Regal Partners — H1 2019 Earnings Presentation
22 slides from Regal Partners's earnings presentation, Aug 27, 2019
Slide 1: VGI Partners Limited 1H19 Investor Briefing
VGI Partners Limited (ASX:VGI) 1H19 Investor Briefing – 27 August 2019
Slide 2: 1H19 Business Highlights
1H19 Business Highlights Six months to 30 June ($ million)1 1H18 1H19 Six months to 30 June 2019 Income Management fees (net)1,3 8.4 12.5 • IPO completed in June 2019. Now 80% owned by key management. No selldown and majority of founder Performance fees (net)3 39.5 32.8 shareholding in 5 year escrow
Slide 3: Business Overview
VGI PARTNERS Business Overview
Slide 4: VGI Partners Overview
VGI Partners Overview • Specialist manager focusing on global equities. Long Individually Managed VGI Managed Funds biased, concentrated strategy with selective shorting. Accounts (IMAs) Minimal to no leverage utilised Unlisted Listed Unlisted • Post IPO in June 2019, 80% owned by Robert Luciano, Do
Slide 5: VGI Partners Philosophy and Alignment of Interests
VGI Partners Philosophy and Alignment of Interests Alignment of Interests • VGI Partners meets establishment costs of new listed investment companies (VG1 and the proposed VG8) and VGI Partners met Capital Preservation Do not lose money all costs in the recent VG1 equity raising Long-Term • Founders
Slide 6: VGI Partners Master Fund Long-Term Performance Objectives Achieved
VGI Partners Master Fund Long-Term Performance Objectives Achieved Annual Compound Returns (% p.a.) VGI Partners Performance Objective Achieved To 30 June 2019 Master Fund Performance (10-15% p.a.) 1 year 13.1% 2 year rolling (p.a.) 16.6% 3 year rolling (p.a.) 12.9% 4 year rolling (p.a.) 12.9%
Slide 7: VGI Partners Master Fund: Capital Preservation
VGI Partners Master Fund: Capital Preservation Performance in Up/Down Months Compound Annual Return (Net) Performance in Performance in "Up Market" Months "Down Market" Months 16% 15.0% 15% 2.9% 3% 2.4% 14% 2% 13% 1% 12% 11.3% 0% 11% (1%) 10% (0.7%) (2%) 9% (3%) (2.3%) 8% Average VGI Average Average
Slide 8: Financials
VGI PARTNERS Financials
Slide 9: Normalised Financials
Six months to 30 June ($ million) 1H18 1H19 Income Normalised Financials Management fees (net) 8.4 12.5 Performance fees (net) 39.5 32.8 Six months to 30 June 2019 Other income 0.3 0.6 • Given VGI’s listing in June 2019, new VG1 FUM raised, Total operating revenue (statutory) 48.2 45.9 the costs of
Slide 10: Revenue and FUM
Revenue and FUM VGI FUM ($ billion) Six months to 30 June 2019 3.0 • FUM of $2.6 billion up 24% over the six months ($0.3 bn 2.5 VG1 raising and $0.2 billion performance/other) 2.0 • Gross management fees of 1.5% 1.5 • VG1 fee waiver finished c.25 April 2019 1.0 • Go-forward annualised net managemen
Slide 11: Go-forward annualised net management fees of c.$38 million
Go-forward annualised net management fees of c.$38 million Assumes no further capital raised Bridge: 1H19 net management fees to “go-forward” net management fees as at 31 July 2019 ($ million)1 40 37.6 35 30 25 2.2 18.8 20 1.1 2.9 15 12.5 10 5 0 1H19 management fee VG1 fee waiver Increase in FUM (ex
Slide 12: Expenses
Expenses Six months to 30 June 2019 Six months to 30 June ($ million) 1H18 1H19 • Non-recurring costs of $5.7 million for VGI and VG1 Personnel 4.3 5.6 raisings. Normalised costs (ex raising) of $10.5 million Research, communications and IT 1.8 2.0 • Cost increase on pcp mainly due to personnel, giv
Slide 13: Balance sheet: Increased flexibility post IPO
Balance sheet Increased flexibility post IPO • Strong balance sheet; increased flexibility post IPO 31 Dec 30 Jun Statutory balance sheet ($ million) 2018 2019 • $76.0 million in cash, no debt Cash and cash equivalents 7.8 76.0 • Fully franked dividend of 25.6¢ ($17.2 million) Trade and other receiv
Slide 14: VGI Partners Foundation Class and Charitable FUM
VGI Partners Foundation Class VGI’s charitable fee rebates and donations1 ($ millions) and Charitable FUM 1.8 1.6 • VGI has actively supported charitable and community 1.4 1.2 causes. Since its formation in 2008, VGI has made $1.3 1.0 million of cash donations to select charities. VGI has also 0.8 b
Slide 15: Market Commentary
VGI PARTNERS Market Commentary
Slide 16: General Market Commentary
General Market Commentary Due to the low interest rate environment, high-quality businesses continue to trade at valuations which imply unlikely levels of growth into perpetuity, combined with an expectation that interest rates will remain low forever We believe market volatility will provide attrac
Slide 17: Shareholder Engagement
Shareholder Engagement Please elect electronic Half-year and Annual national Notes from Berkshire communications to full-year result roadshow including Hathaway and Daily stay informed conference calls briefings in Sydney, Journal Meetings Melbourne, Adelaide, Annual General Perth and Brisbane. Meet
Slide 18: Questions
VGI PARTNERS Questions
Slide 19: Appendix: Reconciliation Normalisation adjustments
1H18 1H19 1H19 Appendix: Reconciliation Six months to 30 June ($ million) statutory statutory Adjust. normalised Normalisation adjustments Income Management fees (net) 8.4 12.5 12.5 • Given VGI’s listing in June 2019, new VG1 FUM raised, the costs of the VGI and VG1 raisings, Performance fees (net)
Slide 20: Disclaimer
Disclaimer: VGI Partners Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321 789) and is SEC Registered. The information in this document (Information) has been prepared for general information purposes only and without taking into account a
Slide 21: Disclaimer (continued)
Disclaimer (continued): A prospectus relating to the initial public offering of ordinary shares in VGI Partners Asian Investments Limited (VG8) will be lodged with ASIC and available for download at www.vg8offer.com (VG8 Prospectus). Invitations to apply for new fully paid ordinary shares in VG8 (VG
Slide 22: Disclaimer (continued)
Disclaimer (continued): This announcement contains certain "forward-looking statements" including statements regarding VGI Partners’ intent, belief or current expectations. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of