PM Capital Global Opportunities Fund Ltd. · ASX:PGF
PM Capital Global Opportunities Fund — Non-Deal Roadshow (September 2014)
28 slides from PM Capital Global Opportunities Fund's roadshow presentation, Sep 16, 2014
Slide 1: Broker Roadshow Presentation September 2014
PM Capital Global Opportunities Fund Limited (ASX: PGF) PM Capital Asian Opportunities Fund Limited (ASX: PAF) For personal use only Broker Roadshow Presentation September 2014
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is intended solely for the information of brokers, advisers and investors in PM CAPITAL Global Opportunities Fund Limited (“PGF”) and PM CAPITAL Asian Opportunities Fund Limited (“PAF”). It is intended to provide information and does not purport to
Slide 3: What we said...
For personal use only What we said... 3
Slide 4: Nothing has changed
Nothing has changed For personal use only ♦ Australians remain under-invested in overseas investments ♦ Australians can access a wider range of opportunities offshore Australian dollar $0.95 ♦ The Australian dollar is still trading $0.94 $0.93 Bought USD at 0.906 7 December for PGF at historically e
Slide 5: Markets and outlook
Markets and outlook For personal use only Yields are at historical lows Equity markets are at post-GFC highs Activity levels are still below “normal” Elevated AUD despite a fall in commodities prices Data as at 30 June 2014
Slide 6: Why we should expect a lower AUD?
Why we should expect a lower AUD? For personal use only ♦ Key drivers of the Australian dollar (AUD) are commodity prices and interest rate differentials. Commodity prices have fallen due to the slowing economic growth in China. A slowing Australian economy should result in a contraction of our inte
Slide 7: PM Capital Global Opportunities Fund Limited (PGF)
For personal use only PM CAPITAL GLOBAL OPPORTUNITIES FUND LIMITED (PGF) 7
Slide 8: Our best ideas globally…
Our best ideas globally… For personal use only 1. Property related equity positions Recovery from severe price corrections in US and Europe 2. Offshore domestic banking franchises Economic recovery and increased payout ratios 3. Monopolistic type service providers Expectations of solid earnings grow
Slide 9: 1. Property related equity positions
1. Property related equity positions For personal use only 1 90% below peak Portfolio positions: ♦ M.D.C. Holdings (one of the Americas largest homebuilders) ♦ Realogy Holdings (Americas largest residential real estate broker/franchise) ♦ Kennedy Wilson Europe (a collective investment fund that inve
Slide 10: 2. Offshore domestic banking franchises
2. Offshore domestic banking franchises For personal use only Future Return Price to Potential Price to on Equity Book variance Book? CBA 16.8% 2.7x 2.5x2 -10% Wells Fargo 15%+1 1.7x 2.2x2 +30% Lloyds Bank 15%+1 1.3x 2.2x2 +70% ING 13-15%1 0.9x 1.8x2 +100% Portfolio positions: ♦ United States - Well
Slide 11: 3. Monopolistic type service providers
3. Monopolistic type service providers For personal use only 1 2 Consolidated Revenues by Revenue Source Portfolio positions: ♦ Exchanges- CME Group Inc (US), Intercontinental Exchange Inc (US), Deutsche Börse AG (Europe) ♦ Services- Google Inc Portfolio positions as at 12 September 2014 1 Source: C
Slide 12: 4. Global brewers – consolidation of industry
4. Global brewers – consolidation of industry For personal use only ♦ 10 year industry consolidation PM CAPITAL Absolute Performance Fund historic positions1 theme Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 European ♦ Purchased 13 individual stocks AmBev 2% A and se
Slide 13: 5. Asia
5. Asia For personal use only Evolution of 4bn+ consumers creates a huge investment opportunity Due to the large opportunity set within Asia, and as we are attracted to several industry sectors, our preferred vehicle to access the opportunity was through the cost effective PAF, which is discussed in
Slide 14: Gradually building a strong portfolio
Gradually building a strong portfolio For personal use only Portfolio composition 31 December 2013 31 March 2014 30 June 2014 12 September 2014 Offshore domestic banking franchises 8.7% 23.0% 34.1% Property related equity positions 5.8% 15.3% 17.1% Monopolistic type service providers 4.7% 12.7% 13.5
Slide 15: PM Capital Asian Opportunities Fund Limited (PAF)
For personal use only PM CAPITAL ASIAN OPPORTUNITIES FUND LIMITED (PAF) 15
Slide 16: What we said in May 2014…
What we said in May 2014… For personal use only 16
Slide 17: What we said in May 2014…
What we said in May 2014… For personal use only 17
Slide 18: Company snapshot
Company snapshot For personal use only Portfolio composition Gaming thematic 19.6% Genting Malaysia 5.3% Donaco International 4.9% SJM Holdings 4.8% MGM China Holdings 4.5% iSentric Sdn Bhd 0.1% Internet thematic 9.8% 51job 5.4% Baidu 3.5% Zhaopin 0.9% Stock specific investments 11.1% Turquoise Hill
Slide 19: Gaming
Gaming For personal use only ♦ Rapid expansion of legalised gaming creates an opportunity for investors ♦ A positive long term structural backdrop ♦ Significant growth potential driven by rising incomes, improved connectivity and casino supply ♦ Economics improving with mass market penetration ♦ Cur
Slide 20: Gaming: Donaco International opportunity today
Gaming For personal use only Donaco International (DNA) opportunity today… PM Capital investment thesis: DNA headlines: ♦ Strong underlying casino economics ♦ ‘Chinese travel to Vietnam plummets amid South China Sea standoff’ (WSJ 21st May 2014) ♦ Long term growth potential driven by demand in Vietn
Slide 21: Gaming: DNA reminiscent of Macau opportunity
Gaming For personal use only DNA opportunity is reminiscent of the Macau opportunity PM CAPITAL captured in 2009… PM CAPITAL investment thesis: Macau headlines: ♦ Strong underlying economics for existing casino supply, ♦ Monthly gaming revenues decline 10%+ year on year significant free cash flow ge
Slide 22: Gaming: Macau today
Gaming For personal use only SJM share price Macau today… July 2008 IPO to August 20141 30 ♦ 1H14 gaming revenues of US$25bn 25 ♦ SJM’s EBITDA up over 400% from 2008 PM CAPITAL initial 20 purchase Mar 2009 ♦ SJM share price up over 10x from our initial entry price 15 HK$1.69 10 5 0 2008 2009 2010 20
Slide 23: Internet
Internet For personal use only ♦ Targeted approach with selective investments from a What attracts us… large and growing universe High barriers to entry ♦ Classifieds and search focused investments (‘old world internet’) Scalability Low capital intensity ♦ Defendable business models with proven earn
Slide 24: Internet: opportunity resembles developed markets early 2000s
Internet For personal use only The opportunity resembles developed markets in the early 2000s ♦ Today – large addressable markets / channel shift driving advertising volumes ♦ Future – pricing power Attractive valuations despite an otherwise overvalued sector ♦ Short term earnings events impacting t
Slide 25: Why PGF/PAF?
Why PGF/PAF? For personal use only Remains true-to-label ♦ A portfolio of global businesses, not just shares ♦ A selective approach, no conviction = no investment ♦ Cash is our starting point Unique investment approach ♦ Starting point is not a benchmark, meaning vastly different exposures and outco
Slide 26: Why PM CAPITAL?
Why PM CAPITAL? For personal use only Investment objective ♦ We are true long-term investors. Long term absolute ♦ We invest based on our conviction, not benchmark weighting. capital growth ♦ We can be 100% in cash, if no compelling investments. ♦ Good business at a good price. Investment philosophy
Slide 27: Marketing and communications
Marketing and communications For personal use only Monthly ♦ ♦ NTA investment reporting – aim to report within 7 business days Email distribution – please provide us with your details or add NTA reporting yourself; http://www.pmcapital.com.au/site/contact_us/report_subscription.aspx Quarterly videos
Slide 28: Thank you
For personal use only THANK YOU 28
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