Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — HY2018 Earnings Presentation
19 slides from Pengana Capital's earnings presentation, Feb 27, 2018
Slide 1: Pengana Capital Group Interim Results
PENGANA CAPITAL GROUP Interim Results For the period to 31 December 2017 Russel Pillemer Katrina Glendinning Chief Executive Officer Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 1 2 Overview 1 23 HY 2018 Results s 3 4 HY 2018 Highlights 4 The Future 6
Slide 3: 1. Overview
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Slide 4: Pengana Capital Group
Pengana Capital Group Investment strategies 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 • Im
Slide 5: Strengths and Opportunities
Strengths and Opportunities • A leading retail brand in benchmark-unaware actively managed equities • A diverse high quality offering across Australian and International equities; proven long term performance across multiple funds • Capitalise on increasing demand in benchmark- unaware, absolute ret
Slide 6: Funds Under Management
Funds Under Management 1 Historical Growth in FUM ($m) FUM Strategy Breakdown (31/12/2017) $4,000 $3,475 $3,500 5% 1% $3,127 3% $3,000 $2,879 $2,528 $794 $2,500 $2,140 $1,140 23% $2,020 43% $2,000 $1,117 $3,475 $960 $1,500 $1,115 $2,333 $1,000 $1,739 $1,411 $1,180 25% $500 $905 $- FY 2013 FY 2014 FY
Slide 7: Diversified Range of Funds
Diversified Range of Funds 1 Acronym Primary Fund Name Strategy Strategy FUM Management Fee; Performance Fee at 31/12/17 ($m) (Primary Fund) PAEF Pengana Australian Equities Australian Multi-caps 1,474 1.0%; 10% above 0% PECF Pengana Emerging Companies Australian Small-caps 888 1.3%; 20% above ASX S
Slide 8: Annual Fee Margin FY 2015 to HY 2018
Annual Fee Margin FY 2015 to HY 2018 3.5% 3.23% 3.0% 2.5% 2.19% 2.0% 1.80% 1.70% 1.5% 1.0% 1.18% 1.15% 1.14% 1.17% 0.5% FY 2015 FY 2016 FY 2017 HY 2018 Mgmt fee/avg FUM Total fee/avg FUM Total fee/avg FUM, 4 year avg
Slide 9: 3. HY 2018 Results
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Slide 10: Pengana Capital Group Operating EBITDA
Pengana Capital Group Operating EBITDA 1 31 December 2017 ($000) Management fee revenue 18,744 Performance fee revenue 10,006 Operating expenses (9,772) Team profit share (11,055) Operating EBITDA 7,923 Other income 1,318 Amortisation (1,482) Profit before tax 7,759 Income tax expense (2,751) Statut
Slide 11: Underlying Profit Reconciliation
Pengana Capital Group Operating EBITDA 1 31 December 2017 ($000) Statutory profit after tax attributable to Pengana shareholders 1 5,008 Add back: 2 Amortisation 1,482 Unrealised investment gains 348 Interest on Loan Funded Share Plan 1,063 Underlying profit 7,901 Basic earnings per share on underly
Slide 12: Pengana Capital Group Balance Sheet
Pengana Capital Group Balance Sheet1 31 December 2017 ($m) Cash net of $5m AFSL cash requirements 12.22 Current receivables 11.81 Current liabilities (12.35) Net working capital 11.68 Investments net of $5m AFSL liquid asset requirements 8.68 AFSL capital requirements 10.00 Loans (on and off balance
Slide 13: 2. HY 2018 Highlights
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Slide 14: Six months to 31 December 2017 in review
Six months to 31 December 2017 in review • Completion of merger integration and capture of synergies • Growth in FUM from net inflows and performance • Management fee revenue as expected • Performance fee revenue lower than historical averages: expected from time to time • Strong performance from In
Slide 15: 4. The Future
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Slide 16: Focus going forward
Focus going forward • Continued growth in FUM , especially for International Equities strategies • Increase in distribution resources • Continued focus on advised markets • Increased focus on direct markets • Unit trust and listed investment company activities • Evaluate acquisition opportunities wh
Slide 17: Platform for Long Term Growth
Platform for Long Term Growth a a a a 1 2 3 4 Superior Business Model 1 Scalable Infrastructure 2 Distribution and Brand 3 Acquisition Opportunities 4 Superior Business Scalable Distribution and Acquisition Model Infrastructure Brand Opportunities •• Attract, retain Attract, retain and and align ••
Slide 18: 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 27 February 2018. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with resp
Slide 19: 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 19 E: clientservice@pengana.com PENGANA.COM