Associate Global Partners Limited · ASX:APL

Associate Global Partners — Contango Income Generator — Shareholder Meeting (November 2017)

19 slides from Associate Global Partners's shareholder meeting presentation, Nov 15, 2017

  1. Slide 1: Annual General Meeting – Chairman's Address

    CONTANGO INCOME GENERATOR LIMITED (ASX:CIE) ABN 40 160 959 991 ANNUAL GENERAL MEETING WEDNESDAY 15 NOVEMBER 2017 | 10.00AM CHAIRMAN’S ADDRESS Delivered by Andrew MacDonald Welcome and Introduction Good morning ladies and gentlemen. Welcome to the second Annual General Meeting for Contango Income Gen

  2. Slide 2: Formal business and commentary

    Following my preliminary comments, I will proceed with the formal business of today’s AGM, which is: 1. to receive and consider the Financial Statements, Directors' Report and Auditor's Report of the Company for the year ended 30 June 2017; 2. to adopt the Remuneration Report; 3. the appointment of

  3. Slide 3: Dividends and performance commentary

    The current year’s performance and profit is primarily attributed to the strategic intent to deliver a high level of dividends from the Company’s investment portfolio as well as an increase in the value of the Company’s underlying investments. During the year, we welcomed accomplished financial indu

  4. Slide 4: Departure of George Boubouras and manager changes

    George had been on the board of Income Generator since it listed in 2015, and has been instrumental in the success and growth of the Company to date. We thank George for his contribution to CIE and wish him well with his future endeavours. As you would no doubt be aware our Investment Manager, Conta

  5. Slide 5: Thank you to our shareholders

    Thank you to our shareholders who have supported the Company and we look forward to working towards delivering on the CIE objectives for you in the year ahead. © 2017 Contango Income Generator Limited Contango Income Generator Limited 2017 Annual General Meeting | 5

  6. Slide 6: Portfolio Manager's Update

    CONTANGO INCOME GENERATOR LIMITED ANNUAL GENERAL MEETING 15 NOVEMBER 2017 PORTFOLIO MANAGER’S UPDATE

  7. Slide 7: A lower volatility and higher yielding equity income fund

    A LOWER VOLATILITY AND HIGHER YIELDING EQUITY INCOME FUND THAT DIVERSIFIES AWAY FROM THE TOP-30 • Offers a portfolio of lower volatility and higher yielding Australian listed shares outside of the top-30 – Provides diversification away from large cap banks, resources and telecoms. • Actively managed

  8. Slide 8: CIE performance against relative indices

    CIE PERFORMANCE AGAINST RELATIVE INDICIES CONTANGO ASX ALL ORDS ASX SMALL CAP OCTOBER 2017 INCOME ASX 300 BANKS ACCUM INDUSTRIALS GENERATOR 1 Month 2.2% 4.1% 5.91% 2.83% 3 Months 4.3% 4.9% 8.82% 1.62% 6 Months 3.7% 2.7% 8.06% -4.86% 12 Months 14.3% 15.5% 13.90% 15.50% Inception (Aug 2015) 10.7% 9.6%

  9. Slide 9: Active weights are a product of the investment process

    THE INCOME GENERATOR FUND’S ACTIVE WEIGHTS ARE A PRODUCT OF THE INVESTMENT PROCESS Income Generator Fund Active Weights: Contango Industry Sectors Miscellaneous Services 12.7 Construction Materials 5.2 Diversified Financials 5.0 Information Technology 3.3 Utilities 2.7 Retailing 2.5 Media 1.9 Real E

  10. Slide 10: Stock positions are a product of the investment process

    THE INCOME GENERATOR FUND’S STOCK POSITIONS ARE A PRODUCT OF THE INVESTMENT PROCESS OVER UNDER CODE STOCK CODE STOCK (%) (%) BOQ Bank of Queensland Ltd 5.8 CBA* Commonwealth Bank of Australia -8.5 ASX ASX Ltd 5.0 WBC* Westpac Banking Group -7.0 TAH Tabcorp Holdings Ltd 4.7 ANZ* Aust and NZ Banking G

  11. Slide 11: Active risk positions consistent with fund objectives

    THE INCOME GENERATOR FUND’S ACTIVE RISK POSITIONS ARE CONSISTENT WITH THE FUND’S OBJECTIVES CONTANGO S&P / ASX 300 S&P / ASX 300 EX OCTOBER 2017 INCOME ASX ALL ORDS TOP 30 30 GENERATOR Median market cap ($m) 2,145.1 637.6 18006 1349 Price to earnings ratio 17.0 17.2 16.1 19.5 Earnings growth (%) 5.7

  12. Slide 12: CIE holdings that have attracted takeover bids

    CIE HOLDINGS THAT HAVE ATTRACTED TAKEOVER BIDS Target Name DUET Group Fairfax Media Ltd GPT Metro Office Fund SAI Global Ltd Tatts Group Ltd 7 CONTANGO INCOME GENERATOR LIMITED

  13. Slide 13: ASX Market Cap: Top 30 vs Ex 30

    ASX 300 MARKET CAP TOP 30 VS EX 30 ASX 300 Market Cap as at 31 May 2017 ($Mil) 365,639 - 20% Ex 30 Top 30 297,158 - 16% Ex 30 Ex 30 High Yield 1,168,751 - 64% Top 30 8 CONTANGO INCOME GENERATOR LIMITED

  14. Slide 14: Long term example of Contango process: Challenger

    LONG TERM EXAMPLE OF CONTANGO PROCESS CHALLENGER (CGF) CHALLENGER LTD (CGF) 14.00 13.00 Sold ($12.93) 12.00 11.00 10.00 Price ($) Bought ($7.04) 9.00 8.00 7.00 6.00 5.00 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Source: Bloomberg 9 CONTANGO INCOME GENERATOR LIMITED

  15. Slide 15: Long term example of Contango process: JB Hi-Fi

    LONG TERM EXAMPLE OF CONTANGO PROCESS JB HI-FI (JBH) JB HI-FI LTD (JBH) 33.00 Sold ($27.6) 31.00 29.00 27.00 25.00 Price ($) Bought ($20.6) 23.00 21.00 19.00 17.00 15.00 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Source: Bloomberg 10 CONTANGO INCOME GENERATOR LIMITED

  16. Slide 16: Blend of top-30 and ex-30 income stocks is more efficient

    Heading A BLEND OF TOP-30 AND EX-30 INCOME STOCKS IS A MORE EFFICIENT PORTFOLIO ALLOCATION Return Optimal Portfolio or “Efficient Frontier” Optimal curve portfolio allocation Ex-30 Concentrated income Large cap large cap fund portfolio portfolio Sub-optimal portfolio allocation Risk 11 CONTANGO INCO

  17. Slide 17: A diversified portfolio: what does CIE offer?

    A DIVERSIFIED PORTFOLIO WHAT DOES CONTANGO INCOME GENERATOR LIMITED OFFER? Contango Income Feature Generator Limited Diversified exposure to ex-30 income securities  Dividend policy of 6.5% of NTA  Targeting capital growth over time  Targeting lower volatility  Maximise franking where possible 

  18. Slide 18: Summary: continued strong performance from Income Generator

    SUMMARY CONTINUED STRONG PERFORMANCE FROM INCOME GENERATOR • Contango Income Generator Limited has continued to deliver solid investment returns including a healthy dividend, paid quarterly. • The fund continues to target companies that generate high and consistent cash flows and lower volatility of

  19. Slide 19: Disclaimer

    DISCLAIMER Contango Funds Management Limited (ABN 52 085 487 421) (CFML) holds an Australian Financial Services Licence (AFSL #237119) restricting it to providing financial products and services to wholesale clients only. CFML is a wholly owned subsidiary of Contango Asset Management Limited (ABN 56

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