Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — FY2019 Earnings Presentation
21 slides from Pengana Capital's earnings presentation, Aug 26, 2019
Slide 1: Pengana Capital Group Results for the year to 30 June 2019
PENGANA CAPITAL GROUP Results For the year to 30 June 2019 Russel Pillemer Katrina Glendinning Chief Executive Officer Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 2 11 Overview 2 3 FY 2019 Results 34 FY 2019 Highlights 4 Focus for FY 2020 6 2
Slide 3: Overview
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Slide 4: Our Philosophy
Our Philosophy We aim to generate superior long term returns with focus on capital preservation • Leading provider of premium products • Benchmark-unaware mandates; we don’t aim to “beat the market” over the short-term • Proven long-term performance over multiple funds • Impose capacity limits acros
Slide 5: Funds Under Management
Funds Under Management 1 Historical Growth in FUM ($m)2 $4,000 FUM relatively flat from prior year when taking into $3,519 account distributions paid: Distributions $3,500 of $269m paid $3,272 in FY2019 $3,127 • Distributions at $269 million larger than normal for $2,879 FY2019 $3,000 • Pengana Priv
Slide 6: Funds Under Management
Funds Under Management 1 FUM Strategy Breakdown (30/06/2019) Australian strategies account for 59% of FUM; was 67% at 30/06/18 7% 1% International equity strategies expected to be the 1% dominant segment within the medium term 6% Significant further capacity in various International 35% Equities str
Slide 7: Diversified Range of Funds
Diversified Range of Funds 1 Acronym Primary Fund Name Strategy Strategy FUM Management Fee; Performance Fee at 30/06/19 ($m) (Primary Fund) 2 PAEF Pengana Australian Equities Australian Multi-caps 1,126 1.0%; 10% 3 PECF Pengana Emerging Companies Australian Small-caps 801 1.3%; 20% above ASX Small
Slide 8: Annual Fee Margin FY 2015 to FY 2019
Annual Fee Margin FY 2015 to FY 2019 3.5% 3.23% 3.23% 3.0% 2.5% 2.19% 2.0% 1.70% 1.49% 1.5% 1.32% 1.0% 1.18% 1.15% 1.14% 1.15% 1.14% 0.5% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Mgmt fee/avg FUM Perf fee/avg FUM Total fee/avg FUM, 5 year avg Performance fees fluctuate over relatively short periods O
Slide 9: Recurring fee profit
Recurring fee profit 3.23% 2019 2018 Variance Variance 3.23% $m $m $m % Management fee revenue 38.19 38.85 (0.66) (1.7) Net fund direct expenses (3.38) (3.28) (0.10) 3.0 Operating expenses (15.77) (16.12) 0.35 (2.2) Management fee profit share (11.59) (13.28) 1.69 (12.7) Recurring fee profit 7.45 6.
Slide 10: FY 2019 Results
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Slide 11: Pengana Capital Group Underlying Profit After Tax
Pengana Capital Group Underlying Profit After Tax1 Pengana Capital Group Operating EBITDA ($’000) 2019 2018 Management fee revenue 37,554 38,450 Performance fee revenue 4,909 11,580 Net fund direct expenses (3,241) (2,830) Operating expenses (17,229) (16,610) Team profit share (13,891) (18,750) Oper
Slide 12: Pengana Capital Group Statutory Profit After Tax
Pengana Capital Group Statutory Profit After Tax Pengana Capital Group Operating EBITDA ($’000) 2019 2018 Underlying profit after tax1 8,694 12,400 Add: Items excluded from underlying profit Non-cash amortisation and impairment (3,437) (3,140) Non-cash issue of alignment shares to Pengana Private Eq
Slide 13: Pengana Capital Group Balance Sheet
Pengana Capital Group Balance Sheet1 Pengana Capital Group Balance Sheet ($’000) 30 June 2019 30 June 2018 Cash net of AFSL cash requirements 10,346 11,070 Current receivables 5,188 5,690 Current liabilities (8,432) (9,472) Net working capital 7,102 7,288 Investments net of AFSL liquid asset require
Slide 14: FY 2019 Highlights
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Slide 15: Year to date in review
Year to date in review • Significant activities for the year: • Launch of the Pengana Private Equity Trust (ASX:PE1) • Further development of our International equity capabilities • Business restructuring to reduce costs and increase sales • FUM relatively flat from prior year when taking into accou
Slide 16: Focus for FY 2020
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Slide 17: Pengana Private Equity Trust (ASX: PE1)
Pengana Private Equity Trust (ASX: PE1) Impact of PE1 on PCG earnings The Trust has the potential to be a significant contributor to PCG's profitability: • Profit contribution from base management fees estimated at 85-90 bps per annum • Potential profit contribution from annual performance fees (not
Slide 18: International Equities Strategy
International Equities Strategy Pengana International Fund performance since inception to 30 June 20191 Return since inception 9.7% 2 vs MSCI ACWI 3 of 10.1% Generated index like returns while underweight the key driver of the market - large cap US tech stocks Attracting increased support from key g
Slide 19: Focus Going Forward
Focus Going Forward • Substantial growth opportunity for Pengana Private Equity Trust • Trading at a premium to NAV • Strong investor demand • Large capacity potential • Further raisings possible • Focus on growth in FUM for various International Equities strategies • Strong performance in context o
Slide 20: Disclaimer
Disclaimer This presentation has been prepared by Pengana Capital Group Limited (ABN 43 059 300 426) (PCG). The information in this presentation is current as at 26 August 2019. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respec
Slide 21: Thank you - For more information
THANK YOU FOR MORE INFORMATION PENGANA CAPITAL GROUP ABN 43 059 300 426 Level 12, 167 Macquarie Street, Sydney, NSW 2000 T: +61 2 8524 9900 F: +61 2 8524 9901 21 E: clientservice@pengana.com PENGANA.COM