Regal Asian Investments Limited · ASX:RG8
Regal Asian Investments — VGI Partners Global Investments — H1 2019 Earnings Presentation
22 slides from Regal Asian Investments's earnings presentation, Feb 5, 2019
Slide 1: VGI Partners Global Investments Limited 1H 2019 Investor Briefing
VGI Partners Global Investments Limited (ASX Code: VG1) 1H 2019 Investor Briefing 5 February 2019
Slide 2: Disclaimer
Disclaimer VGI Partners Pty Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321 789) and is SEC Registered. VGI Partners is the manager of VGI Partners Global Investments Limited (VG1) (ACN 619 660 721). The information in this document (Inf
Slide 3: 1H 2019 Results Overview
1H 2019 Results Overview $ millions Income Net realised and unrealised gains on investments 22.1 Interest income 3.2 Dividend income 4.5 Total Income 29.8 Total Expenses (11.8) Profit before income tax 18.0 ▪ $18.0 million profit before tax for the six months to 31 December 2018 ▪ Underpinning the r
Slide 4: Agenda
▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Shareholder Engagement ▪ Questions 4
Slide 5: The Manager – VGI Partners
The Manager – VGI Partners ▪ Specialist manager, focussing on global equities. Long biased, concentrated strategy with selective shorting. Minimal to no leverage utilised ▪ 21 staff in Sydney, New York and Tokyo ▪ Deploys a single investment strategy across two funds (AUD and USD), Individually Mana
Slide 6: Investment Mandate and Philosophy
Investment Mandate and Philosophy ▪ Global listed equities portfolio: comprising long, short and cash ▪ Focus on risk-adjusted returns VGI Partners’ Investment Philosophy Capital Preservation Do not lose money Long-Term Compound Growth 10-15% p.a. net of fees Portfolio Concentration Top 5 long inves
Slide 7: Capital Preservation: Performance in Up/Down Months
Capital Preservation: Performance in Up/Down Months Compound Annual Return (Net) Performance in Performance in 16% "Up Market" Months "Down Market" Months 15% 14.7% 2.8% 3% 2.4% 14% 2% 13% 1% 12% 0% 11% 10.1% (1%) 10% (0.8%) (2%) 9% (2.2%) (3%) 8% Average VGI Average Average VGI Average VGI Partners
Slide 8: Long-Term Performance Objectives Achieved
Long-Term Performance Objectives Achieved Annual Compound Returns (% p.a.) VGI Partners Performance To 31 December 2018 Master Fund Objective Performance Achieved (10-15% p.a.) 1 year 16.9% ✓ 2 year rolling (p.a.) 11.6% ✓ 3 year rolling (p.a.) 11.2% ✓ 4 year rolling (p.a.) 14.5% ✓ 5 year rolling (p.
Slide 9: Alignment of Interests
Alignment of Interests ▪ VGI Partners’ staff are prohibited from purchasing securities outside the VGI Funds and VG1 ▪ The Manager is paying for all upfront listing costs of VG1 ▪ All operating costs (where possible) are paid for by the Manager ▪ The owners of VGI Partners will reinvest all performa
Slide 10: Agenda
▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Shareholder Engagement ▪ Questions 10
Slide 11: Net Investment Performance – six months to December 2018
Net Investment Performance – six months to 31 December 2018 ▪ Post-tax NTA grew +2.4% to $2.24 per share for the six months to 31 December 2018 ▪ VG1 has traded at an average premium of ~5% to post-tax NTA since listing Post Tax NTA Per Share Share Price Premium to NTA $2.30 20.0% $2.25 18.0% $2.20
Slide 12: Calendar Year 2018 Performance
Calendar Year 2018 Performance Post-tax NTA Performance CY18 Performance CY18 Performance (After tax and all fees) (Stock Contribution) (AUD including currency contribution) VG1 +3.3% +10.8% Total Return Index in AUD CY18 Performance CY18 Performance (including dividends reinvested) (Local Currency)
Slide 13: Performance Attribution – six months to December 2018
Performance Attribution – six months to 31 December 2018 VG1 NTA Performance Contribution Long Investments (4.6%) Short Investments +4.1% Stock Contribution (0.5%) Currency +2.9% Net Performance (after all fees) +2.4% Largest Long Contributor Contribution CME Group Inc. 1.8% Largest Long Detractors
Slide 14: Agenda
▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Shareholder Engagement ▪ Questions 14
Slide 15: Portfolio Update as at December 2018
Portfolio Update as at 31 December 2018 Top Long Investments 31 December 2018 Long Portfolio by Location of Exchange Listing CME Group Inc. 12% Colgate Palmolive Co. 8% Amazon.com Inc. 7% 15.0% Medibank Private Limited 6% 9.0% MasterCard Inc. 6% Total 39% 76.0% Month End Exposures 31 December 2018 L
Slide 16: Portfolio Update – Deployment
Portfolio Update – Deployment ▪ We have been patiently and steadily deploying the VG1 portfolio, given our focus on preservation of investors’ capital ▪ Recent market volatility has provided VG1 the opportunity to purchase securities at attractive prices ▪ The portfolio was invested to ~85% of targe
Slide 17: Agenda
▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Shareholder Engagement ▪ Questions 17
Slide 18: General Market Commentary
General Market Commentary ▪ Recent months have seen global equity markets sharply decline due to the fear of rising interest rates, global trade wars and slowing global growth ▪ Even after the recent market sell-off, we feel the vast majority of high-quality businesses continue to trade at valuation
Slide 19: Agenda
▪ The Manager, Investment Mandate and Philosophy ▪ Net Investment Performance ▪ Portfolio Update ▪ General Market Commentary ▪ Alignment of Interests ▪ Shareholder Engagement ▪ Questions 19
Slide 20: Shareholder Engagement
Shareholder Engagement ▪ Investor Letter from the Manager in January and July each year ▪ Investor Events: ▪ Half year and full year results conference calls ▪ Annual national roadshow including investor briefings in Brisbane, Adelaide, Perth, Sydney and Melbourne ▪ Independent Research ▪ Zenith and
Slide 21: Electronic Communication Election
Electronic Communication Election ▪ Please elect electronic communications to stay informed ▪ Contact our Investor Relations team if you have any questions or feedback Investor Relations Manager Victoria Arthur, CA Phone: + 61 2 9237 8921 Email: Investor.relations@vgipartnersglobal.com 21
Slide 22: Questions
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