Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — Pengana International Equities — FY2020 Earnings Presentation
20 slides from Pengana Capital's earnings presentation, June 2020
Slide 1: Pengana International Equities Limited Investor Presentation June 2020
ASX: PIA PENGANA INTERNATIONAL June 2020 EQUITIES LIMITED Stability. Growth. Yield. Investor presentation: year ending 30 June 2020
Slide 2: Highlights of Financial Year Ending 30 June 2020
HIGHLIGHTS OF FINANCIAL YEAR ENDING 30 JUNE 2020 EPS Profit after Tax Portfolio Return1 Important Dates 9.5c per share $24 million 11.3% Final Dividend 2.5 c per share 43% 44% 6.5% above index Ex date: 8 October 2020 Record date: 9 October 2020 7.6% 9.4% Full Year Dividend Payment date: 23 September
Slide 3: Key Benefits for Shareholders
KEY BENEFITS FOR SHAREHOLDERS • Consistent stream of fully franked dividends • Dividend yield of 4.7% for FY 20201 3 KEY AIMS • 6.6% yield grossed up for franking credits1 GROW WEALTH • Excellent portfolio management2 • 11.3% portfolio return for FY 2020 • 10.2 % portfolio return since mandated PROT
Slide 4: Dedicated to Delivering Stable Fully Franked Yield
DEDICATED TO DELIVERING STABLE FULLY FRANKED YIELD $26 bn worth of ASX dividend income disappeared in 2020. Unlike many other companies that are limited in their ability to pay dividends due to capital constraints, illiquidity or debt covenants… PIA is well positioned to pay stable and secure divide
Slide 5: Why PIA Is Able to Deliver Stable Fully Franked Yield
WHY PIA IS ABLE TO DELIVER STABLE FULLY FRANKED YIELD 1. Profits and Profit Reserves 2. Sufficient Franking Credits Profits to cover the dividend Highly liquid holdings Truly diversified portfolio PIA is uniquely placed to satisfy this test Flexibility across medium – long term holding periods PIA h
Slide 6: ESG Investing Without Compromising Returns: Grow Wealth
ESG INVESTING WITHOUT COMPROMISING RETURNS: GROW WEALTH Performance as at 30 June 2020 3 months 6 months 1 year 2 year Since Mandate 14% 12% 11.3% 10.6% 10.2% 10% 9.3% 8.0% 8.3% 8% 6.1% 6% 4.8% 4% 3.5% 2% 0% -2% -4% -3.8% -6% PIA MSCI World Source: Bloomberg and Pengana Capital Performance figures r
Slide 7: Key Objective: Protecting Capital and Managing Volatility
KEY OBJECTIVE: PROTECTING CAPITAL AND MANAGING VOLATILITY Global stock market downturn, S&P500 falls (Q4/2018) COVID-19 (Q1/2020) 8% 6.4% 6% 5.2% 4% 2% 0% -2% -4% -4.7% -4.2% -6% -8% -10% -9.3% -12% -11.0% Pengana International Equities Limited MSCI World Excess Source: Bloomberg and Pengana Capital
Slide 8: Investment Philosophy
INVESTMENT PHILOSOPHY 3 KEY AIMS GROW WEALTH PROTECT CAPITAL MINIMIZE VOLATILITY v Focus on the highest quality Truly diverse across geographies and Through active diversification of businesses around the world at sectors. Opportunities that aren’t businesses and consistent cash reasonable valuation
Slide 9: Portfolio Update
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Slide 10: Investment Process: Stock Requisite Characteristics
INVESTMENT PROCESS: STOCK REQUISITE CHARACTERISTICS POSITIVE GOOD UNLIKELY TAILWINDS MANAGEMENT TO BLOW UP CASH REASONABLE GROWING GENERATION VALUATION STRONG ESG AND ETHICAL FRAMEWORK 10
Slide 11: Integration of ESG and Ethical Factors into the Research Process
INTEGRATION OF ESG AND ETHICAL FACTORS INTO THE RESEARCH PROCESS Environmental Social Governance
Slide 12: Fundamental Bottom Up Approach to Investing
FUNDAMENTAL BOTTOM UP APPROACH TO INVESTING CORE CYCLICAL OPPORTUNISTIC • High cash flow generative • Business that operate in • Company specific businesses cyclical industries situations • Stable and growing with • Poised for an upturn • Attractive potential upside positive tailwinds
Slide 13: A Diversified International Ethical Conglomerate
A DIVERSIFIED INTERNATIONAL ETHICAL CONGLOMERATE DUTCH MAPPING COMPANY 13
Slide 14: Volatile Markets Present Opportunities
VOLATILE MARKETS PRESENT OPPORTUNITIES • World largest provider of scientific equipment and services • Has been able to grow faster than the market • Can expect share price gains to continue in the future • Robust long term growth prospects • Defensive position in uncertain times • 4.2% Free Cash fl
Slide 15: Houlihan Lokey is a global advisory firm specialising in M&A and restructuring
• Houlihan Lokey (HLI) is a global advisory firm specialising in M&A and Financial restructuring • 2019 HLI was the #1 M&A adviser in the US (by number of deals) and #1 global restructuring advisor by number of distressed debt and bankruptcy deals • Independent/specialised player with a strong partn
Slide 16: Counter-Cyclical Performance in Times of Market Stress
COUNTER-CYCLICAL PERFORMANCE IN TIMES OF MARKET STRESS • One of the largest global “market makers” for ETFs • Provides protection against spikes in market uncertainty/volatility • Reason: higher volatility = higher spreads for Flow Traders (and higher profits for shareholders) • Share price has rise
Slide 17: Portfolio Positioning as at June 2020
PORTFOLIO POSITIONING AS AT 30 JUNE 2020 Geographic Exposure Sector Exposure Cash 12% Mega Only 41% of portfolio invested in US 31% Cap Small and 22% Mid Cap Overweight Europe ex-UK and Emerging Markets 35% Large Cap • Overweight Communication Services and Financials • Underweight Information Techno
Slide 18: Key Benefits for Shareholders
KEY BENEFITS FOR SHAREHOLDERS • Consistent stream of fully franked dividends • Dividend yield of 4.6% for FY 20201 3 KEY AIMS • 6.5% yield grossed up for franking credits1 GROW WEALTH • Excellent portfolio management2 • 11.3% portfolio return for FY 2020 • 10.2 % portfolio return since inception PRO
Slide 19: Disclaimer
DISCLAIMER Pengana International Equities Limited (“PIA”) and Pengana Investment Management Ltd (including its parent, subsidiaries and/or affiliates) (“PIML”), their staff or consultants or any individuals preparing this communication, may at any time have a position in securities or options of any
Slide 20: Pengana International Equities Limited
PENGANA INTERNATIONAL EQUITIES LIMITED ACN 107 462 966 Managed by Pengana Investment Management Limited AFSL 219462 T: +61 2 8524 9900 E: [email protected] PENGANA.COM/PIA 20
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