Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Investor Presentation (October 2018)
15 slides from Whitefield Industrials's investor presentation, Oct 15, 2018
Slide 1: Whitefield
For personal use only WHITEFIELD A listed investment company providing capital growth and regular franked income through a diversified portfolio of Australian Industrial shares 0 INDUSTRIALS
Slide 2: Industrials specialisation and conservative approach increase income and return while reducing risk
Whitefield’s industrials specialisation and conservative approach have increased income and return for shareholders, while reducing risk For personal use only Industrials v Resources Conservative approach Outcomes Enhanced index investing can Peer group ranking Industrials 50 deliver investors lower
Slide 3: Depth of experience our shareholders can rely on
Depth of experience our shareholders can rely on For personal use only years since Whitefield's years average experience of 96 incorporation 23 the investment team Whitefield's team are experienced investors Whitefield is the oldest listed investment with unique perspectives on investment company in
Slide 4: Most profitable sources of market inefficiency stem from errors of human judgment
The most profitable sources of market inefficiency are those stemming from errors of human judgment For personal use only In investment markets, human behavioural bias produces: Trends Reversals "The self-reinforcing interaction "Trends breaks down on the between prices and perceptions realisation t
Slide 5: Quant process exploits trends and reversals via Trend and Contrarian factors
Our quant process exploits trends and reversals by targeting the intersection of our Trend and Contrarian factors For personal use only Trend Factors aim to identify stocks with a Contrarian Factors aim to identify stocks with high probability of a continuing trend a high probability of a trend reve
Slide 6: We add value by focussing on accuracy in each stage of our quant process
We add value by focussing on accuracy in each stage of our quant process For personal use only Datasets Factors Portfolio TR QA deployed Investment Trend Model database Committee Proprietary Alpha Model Optimisation datasets Proprietary Multiple-Factor Contrarian Model database Strategy Extensive da
Slide 7: For personal use only
α β For personal use only $ Whitefield's dividends have Whitefield's quantitative Whitefield's industrials been maintained or increased process harnesses the value portfolio provides exposure every year since the of technology for greater to Australia's high population introduction of the dividend c
Slide 8: Whitefield's dividend outlook is well supported
Whitefield’s dividend outlook is well supported For personal use only Indicative WHF Yield On Pre-Tax Asset Backing* WHFPB Reset Impact >1.90% >6.40% The WHFP's are being reset at a net dividend rate of 4% for those who don't convert, compared to 7% previously +X% >4.50% Realised Gains Impact In lin
Slide 9: The benefits of our year development of quantitative investment infrastructure
The benefits of our 10 year development of quantitative investment infrastructure For personal use only Datasets Factors Portfolio Results Leveraged technology and Leveraged experience and Through backtesting Enhanced risk-adjusted experience as analysts to backtesting to develop developed unique me
Slide 10: Enhanced quant strategy combines Trend and Contrarian factors to maximise information ratio
Enhanced quant strategy combines our Trend and Contrarian factors to maximise Whitefield’s information ratio with low turnover For personal use only Strategy Backtesting Rationale Aims to exploit trends and reversals by targeting the profitable WHF Strategy and components intersection of our Trend a
Slide 11: The longer term outlook for Industrials is relatively strong
The longer term outlook for Industrials is relatively strong For personal use only Strong Australian demographics will favour our domestic economy and Industrial shares Population growth, 2000-2050 Chg age 60+ % of pop, 2015-2030 Australia's strong population growth will immediately benefit many ind
Slide 12: 2016-18 Resource rally and Banking Royal Commission created a statistically unusual return differential
The 2016-18 Resource rally and the Banking Royal Commission have created a return differential that is statistically unusual and at historical extremes For personal use only Industrials & Resources since 1979 14,000 Industrials Accum. Resources Accum. 12,000 10,000 8,000 6,000 4,000 2,000 0 1981 198
Slide 13: Appendix 1: Fact Sheet
APPENDIX 1: FACT SHEET For personal use only Reliable stream of fully franked income; Return Objective Risk-adjusted return higher than average of peer group; and Portfolio return 0-100 basis points above The Benchmark over rolling 5 year periods Target 70-100 basis points tracking error Risk Object
Slide 14: Appendix 2: Performance
APPENDIX 2: PERFORMANCE For personal use only FY19 YTD Financial Years to 31 March 2018** Whitefield (WHF) Q2 Q1 1yr 3yr 5yr Portfolio Return 1.81% 6.24% (0.23%) 2.67% 9.07% Benchmark* 1.71% 6.66% (0.39%) 2.94% 8.81% Portfolio Excess Return 0.10% (0.41%) 0.16% (0.27%) 0.26% Beta 0.87 0.93 0.94 Track
Slide 15: Appendix 3: Active Exposures
APPENDIX 3: ACTIVE EXPOSURES For personal use only Industry Exposures as at Sept Qtr End * Top 15 overweights and underweights ** Insurance 1.2% MTS 0.53% (0.23%) WOW CIM 0.50% (0.24%) TLS ConsumerDiscretionary 1.2% CPU 0.50% (0.24%) JHG ConsumerStaple 1.0% MPL 0.49% (0.24%) QUB PropertyDevelopment
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