Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Investor Presentation (March 2017)
27 slides from Australian Foundation Investment's investor presentation, Mar 15, 2017
Slide 1: Information Meetings – Presentation
15 March 2017 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited Information Meetings – Presentation Dear Sir / Madam Please find atta
Slide 2: Shareholder Meetings March 2017
For personal use only SHAREHOLDER MEETINGS MARCH 2017
Slide 3: Disclaimer
For personal use only DISCLAIMER Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), their related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good fai
Slide 4: Introduction
For personal use only INTRODUCTION SHAREHOLDER MEETINGS MARCH 2017
Slide 5: How We Invest – What We Look For in Companies
For personal use only HOW WE INVEST – WHAT WE LOOK FOR IN COMPANIES Quality First Growth (including dividends) Value Portfolio that is actively managed for the long term SHAREHOLDER MEETINGS OCTOBER 2016
Slide 6: Results & Shareholder Returns
For personal use only RESULTS & SHAREHOLDER RETURNS SHAREHOLDER MEETINGS OCTOBER 2016
Slide 7: Half Year Financial Summary – December 2016
For personal use only HALF YEAR FINANCIAL SUMMARY – 31 DECEMBER 2016 SHAREHOLDER MEETINGS MARCH 2017
Slide 8: Share Price Is at a Slight Discount to Net Asset Backing
For personal use only SHARE PRICE IS AT A SLIGHT DISCOUNT TO NET ASSET BACKING SHAREHOLDER MEETINGS MARCH 2017
Slide 9: Recent Share Price Return Has Reflected Fall in Premium
For personal use only RECENT SHARE PRICE RETURN HAS REFLECTED FALL IN PREMIUM – PERFORMANCE PER ANNUM TO 28 FEBRUARY 2017 INCLUDING BENEFIT OF FRANKING CREDITS* *Assumes an investor can take full advantage of the franking credits. SHAREHOLDER MEETINGS MARCH 2017
Slide 10: Cumulative Long Term Share Price Performance, Including Benefit of Franking
For personal use only CUMULATIVE LONG TERM SHARE PRICE PERFORMANCE, INCLUDING THE BENEFIT OF FRANKING* *Includes dividends. Assumes an investor can take full advantage of the franking credits SHAREHOLDER MEETINGS MARCH 2017
Slide 11: The Market & The Portfolio
For personal use only THE MARKET & THE PORTFOLIO SHAREHOLDER MEETINGS MARCH 2017
Slide 12: US Market Has Risen Strongly Since November 2016
For personal use only US MARKET HAS RISEN STRONGLY SINCE NOVEMBER 2016 Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 13: With the Australian Market Following, Large Companies Back in Favour
For personal use only WITH THE AUSTRALIAN MARKET FOLLOWING WITH LARGE COMPANIES BACK IN FAVOUR Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 14: Driven Largely by Banks and Material Sectors
For personal use only DRIVEN LARGELY BY BANKS AND MATERIAL SECTORS Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 15: Portfolio Performance Including Benefit of Franking Credits
For personal use only PORTFOLIO PERFORMANCE INCLUDING BENEFIT OF FRANKING CREDITS* – PER ANNUM RETURN TO 28 FEBRUARY 2017 After tax paid and expenses. *Assumes an investor can take full advantage of the franking credits. SHAREHOLDER MEETINGS MARCH 2017
Slide 16: AFIC's Portfolio vs the ASX Index – Major Variations
For personal use only AFIC’S PORTFOLIO VS THE ASX 200 INDEX – MAJOR VARIATIONS SHAREHOLDER MEETINGS MARCH 2017
Slide 17: What Have We Been Doing?
For personal use only WHAT HAVE WE BEEN DOING? • AFIC is fully invested. • Changes made to the portfolio: • Small number of new stocks added. • Topped up selected holdings – CSL, Cochlear. • Used market conditions to buy stock and write call options to generate additional income. SHAREHOLDER MEETING
Slide 18: Portfolio at February 2017 – Top Holdings
For personal use only PORTFOLIO AT 28 FEBRUARY 2017 – TOP 10 HOLDINGS REPRESENT 48.7% OF THE PORTFOLIO 99 holdings in the Portfolio Rank Company % of Portfolio 1 Commonwealth Bank of Australia 9.6% 2 Westpac Banking Corporation 7.8% 3 BHP Billiton 5.2% 4 National Australia Bank* 4.7% 5 Wesfarmers 4.
Slide 19: Portfolio at February 2017 – Next Holdings
For personal use only PORTFOLIO AT 28 FEBRUARY 2017 – NEXT 10 HOLDINGS REPRESENT 16.8% OF THE PORTFOLIO 99 holdings in the Portfolio Rank Company % of Portfolio 11 Amcor 2.6% 12 Woolworths 1.9% 13 Brambles* 1.8% 14 AGL Energy 1.7% 15 Oil Search 1.7% 16 Woodside Petroleum 1.5% 17 Ramsay Health Care 1
Slide 20: Featured Companies Added This Financial Year
For personal use only FEATURED COMPANIES ADDED THIS FINANCIAL YEAR SHAREHOLDER MEETINGS MARCH 2017
Slide 21: Large Companies Represent 80% of the Portfolio
For personal use only LARGE COMPANIES REPRESENT 80% OF THE PORTFOLIO At 28 February 2017 SHAREHOLDER MEETINGS MARCH 2017
Slide 22: Looking Ahead
For personal use only LOOKING AHEAD SHAREHOLDER MEETINGS MARCH 2017
Slide 23: Comments on the Recent Reporting Season
For personal use only COMMENTS ON THE RECENT REPORTING SEASON Earnings were slightly ahead of expectations Recent trend of ‘below the line’ one offs continued Input cost pressures emerging, particularly energy Slight upturn in dividends, buy backs announced Earnings expected to improve – mostly from
Slide 24: How Will These Trends Play Out?
For personal use only HOW WILL THESE TRENDS PLAY OUT? S&P/ASX 200 p/e still above long term average Current iron ore price not expected to last Source: FactSet Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 25: How Will These Trends Play Out? – continued
For personal use only HOW WILL THESE TRENDS PLAY OUT? – continued Long term interest rates have started to rise $A will also influence how the economy performs Source: FactSet Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 26: Where Does This Leave Us?
For personal use only WHERE DOES THIS LEAVE US? • Australian economy improving, remains largely dependant on China • Reporting season provided some earnings improvement • Cash rate in Australia currently stable but likely to head upward • Market tone is currently positive • Believe the portfolio rem
Slide 27: Australian Foundation Investment Company
For personal use only AUSTRALIAN FOUNDATION INVESTMENT COMPANY
Australian Foundation Investment Company — Investor Presentation (March 2017) on 6ix