PM Capital Global Opportunities Fund Ltd. · ASX:PGF
PM Capital Global Opportunities Fund — Non-Deal Roadshow (December 2014)
20 slides from PM Capital Global Opportunities Fund's roadshow presentation, Dec 8, 2014
Slide 1: Broker Roadshow Presentation December 2014
PM Capital Global Opportunities Fund Limited (ASX: PGF) PM Capital Asian Opportunities Fund Limited (ASX: PAF) For personal use only Broker Roadshow Presentation December 2014
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is provided for information purposes only. The information contained in this presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of securities in the Companies nor does it consti
Slide 3: What we said...
For personal use only What we said... 3
Slide 4: Commodity prices
For personal use only 75 80 85 90 95 100 105 110 115 1100 1200 1300 1400 1500 1600 1700 1800 Nov 2012 Nov 2012 Dec 2012 Dec 2012 Jan 2013 Jan 2013 Feb 2013 Feb 2013 Mar 2013 Mar 2013 Apr 2013 Apr 2013 May 2013 May 2013 Jun 2013 Jun 2013 Jul 2013 Jul 2013 Aug 2013 Aug 2013 Sep 2013 Sep 2013 Oct 2013
Slide 5: PM Capital Global Opportunities Fund Limited (PGF)
For personal use only PM CAPITAL GLOBAL OPPORTUNITIES FUND LIMITED (PGF) 5
Slide 6: Our best ideas globally…
Our best ideas globally… For personal use only 1. Domestic banking Economic recovery and increased payout ratios 2. US housing Recovery from severe price corrections in US 3. European property Recovery from severe price corrections in Europe 4. Monopolistic type service providers Expectations of sol
Slide 7: Portfolio evolution
Portfolio evolution For personal use only Portfolio composition 31 December 2013 31 March 2014 30 June 2014 30 September 2014 30 November 2014 Domestic banking 8.7% 23.0% 34.5% 36.6% Monopolistic type service providers 3.5% 9.7% 10.6% 19.4% European property 4.7% 10.7% 11.6% 12.4% Global beverage co
Slide 8: 1. Domestic banking
1. Domestic banking For personal use only Future Return on Price to Potential Price to Equity Book variance Book? CBA 16.8% 2.7x 2.5x1 -10% Wells Fargo 15%+1 1.7x 2.2x1 +30% Lloyds Bank 15%+1 1.3x 2.2x1 +70% ING 13-15%1 0.9x 1.8x1 +100% Loan demand in the UK2 Straw hats in winter: Domestic banking f
Slide 9: 2. US housing
2. US housing For personal use only New home sales USA (1963—2014) US housing recovery still early in the cycle Straw hats in winter: US housing sales cyclically depressed. Source: www.calculatedriskblog.com sourced on 18 March 2014 9
Slide 10: 3. European property
3. European property For personal use only 90% below peak Straw hats in winter: European property construction cyclically depressed. Source: Organisation for Economic Co-operation and Development as at 23 April 2014 10
Slide 11: 4. Monopolistic type service providers
4. Monopolistic type service providers For personal use only 5 Year P/E when Earnings Per Market acquired by Share (EPS) Position PGF Growth Intercontinental 14.6x +90% interest 21.6% Exchange Date: 9/07/2014 rate futures 17.2x #1 global VISA 15.5% Date: 7/10/2014 payments Google 17.6% 18x 90% searc
Slide 12: 5. Global beverage companies
5. Global beverage companies For personal use only Brewing industry ♦10 year industry consolidation theme ♦Top 4 beer players have shifted from ~24% market share in 2003 to ~85% market share Spirit industry ♦Economic slowdown has caused a slowdown in earnings - as economies recover, share prices sho
Slide 13: 6. Pharmaceutical
6. Pharmaceutical For personal use only R&D productivity improved ♦ Peaked pre GFC at 17%, now 13% Financial efficiency ♦ 25% of market capitalization in offshore trapped cash – tax inversion ♦ Spun off assets and proceeds used to buyback stock Valuation ♦ Reported P/E = 13x ♦ Adjusted P/E = 10x ♦ F
Slide 14: PM Capital Asian Opportunities Fund Limited (PAF)
For personal use only PM CAPITAL ASIAN OPPORTUNITIES FUND LIMITED (PAF) 14
Slide 15: Asia
Asia For personal use only The evolution of 4bn+ consumers growing in affluence Source: Wikipedia as at 31 August 2014. 4bn constitutes Asia as a whole. 15
Slide 16: Our best Asian ideas…
Our best Asian ideas… For personal use only 1. Gaming Market liberalisation, rising affluence, infrastructure improvements. 2. Internet service providers Evolution in the way consumers view content and advertisers spending advertising dollars. 3. Consumer Rising affluence, household incomes and per
Slide 17: Portfolio evolution
Portfolio evolution For personal use only Portfolio composition 31 May 2014 30 June 2014 30 September 2014 30 November 2014 Gaming 5.2% 7.9% 18.2% 21.0% Internet service providers 10.4% 12.2% 9.4% 16.9% Healthcare 7.1% Consumer 2.9% 6.4% Infrastructure providers 5.1% Other 4.7% 4.4% 7.8% 10.2% Net e
Slide 18: LIC ongoing communication
LIC ongoing communication For personal use only ♦ NTA and investment reports Submitted to the ASX within ~5 business Monthly ♦ days ♦ Available online and / or emailed ♦ Quarterly video from each Portfolio Manager Quarterly video from the Chief Investment Quarterly ♦ Officer ♦ Quarterly broker updat
Slide 19: Why PM CAPITAL / PGF / PAF?
Why PM CAPITAL / PGF / PAF? Investment philosophy For personal use only Old fashioned ♦ A portfolio of businesses stock-pickers Investment process Research intensive, ♦ Bottom-up research process global perspective Business structure ♦ Staff are owners and investors Alignment of interests Investment
Slide 20: Questions and Answers
For personal use only QUESTIONS AND ANSWERS 20
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