Ironbark Balanced Income Limited Registered · ASX:IBC
Ironbark Balanced Income Limited Registered — Ironbark Capital — Shareholder Meeting (November 2024)
13 slides from Ironbark Balanced Income Limited Registered's shareholder meeting presentation, Nov 13, 2024
Slide 1: Annual General Meeting
For personal use only Annual General Meeting Ironbark Capital Limited 13 November 2024 Doug Hew Investment Manager Kaplan Funds Management 1
Slide 2: Ironbark Capital Portfolio
Ironbark Capital Portfolio For personal use only ➢ Absolute Return Focus Diversified and active portfolio: domestic equities, fixed interest, property and covered call option writing. ➢ 21.5 year track record (includes GFC & Covid-19) 8.9% pa return (pre fees, including franking credits) since incep
Slide 3: Performance to 30/6/24
For personal use only PERFORMANCE TO 30/6/24 Inception 10 Yr 5 Yr 4 Yr 3 Yr 2 Yr 1 Yr FYTD $60m 21.5yrs % pa % pa % pa % pa % pa % pa % pa % IBC pre fees plus franking 8.90 7.14 7.12 10.21 8.18 10.30 7.00 4.40 1 yr swap +6% 9.50 7.94 7.93 8.26 9.01 10.06 10.35 3.41 Relative performance -0.61 -0.80 -
Slide 4: Performance & sector contribution
IRONBARK CAPITAL Jun 2024 12 months - performance & sector contribution For personal use only Benchmark (1yr swap+6%) 10.35% PORTFOLIO TOTAL 7.00% hybrids & corp bonds 3.78% buy & writes & equities 4.96% property trusts -1.82% cash 0.08% -7.0% -2.0% 3.0% 8.0% 13.0% 4
Slide 5: IBC Portfolio performance before management fees plus franking credits
KAPLAN FUNDS MANAGEMENT IBC Portfolio performance before management fees + franking credits For personal use only (5 years to 30 June 2024) 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70 Aug-19 Aug-20 Oct-20 Aug-21 Aug-22 Aug-23 Oct-19 Oct-21 Oct-22 Oct-23 Apr-22 Apr-20 Apr-21 Apr-23 Apr-24 Jun-1
Slide 6: Asset Allocation - June 2024
For personal use only IRONBARK CAPITAL ASSET ALLOCATION - 30 June 2024 Bank Notes & Hybrids Basel III 11.9% 53.4% Corporate Sub Notes 11.9% Non Bank Hybrids & Corp Prefs 40.9% Utilities & Infrastructure 3.1% 0.4% Property Trusts 4.0% Banks Top 50 Industrials 15.2% 4.3% 8.2% Ex Top 50 Industials 0.5%
Slide 7: APRA proposing banks phase out AT1 capital instruments
APRA is proposing that banks phase out the use of AT1 capital instruments For personal use only (often called hybrids) ➢ For the Advanced banks (4 Majors, Macq, ING) this is to be replaced with 1.25% Tier 2 (subordinated notes) and 0.25% CET1 (equity) and for the remaining banks it is to be fully re
Slide 8: Major Bank ASX Listed AT1 Basket – Secondary pricing
Major Bank ASX Listed AT1 ~NC5 Basket – Secondary pricing For personal use only 8
Slide 9: A$ Major Bank 5y T2 FRN Secondary Mid
For personal use only IRONBARK CAPITAL A$ Major Bank 5y T2 FRN Secondary Mid 0 — September 167 + 160 r 140 T T T T T T T T T T ‘Apr 22 Jul 22 Oct 22 Jan 23 Apr 23 Jul 23 Oct 23 Jan 24 Apr 24 Jul 24
Slide 10: ASX200 and banks PE ratios
For personal use only IRONBARK CAPITAL Figure 3: ASX200 and banks PE ratios (on 12m forward consensus earnings) 24 24 ——ASx200 —— Barks 20 20 16 16 12 bi 8 Dotcom 8 yaveel a COVID 19 4 “ 1995 2000 2008 2010 2015 2020 2025 Source: S&P, IBES.Refirithy, Canaccord Genulty Figure 4: International bank PE
Slide 11: Running Yield Composition of Ironbark Capital
Running Yield Composition of IRONBARK CAPITAL For personal use only (inclusive of franking credits) 30-6-24 8.0% 7.0% 7.4% 7.5% 7.5% 7.6% 7.1% 6.9% 6.5% 6.0% 5.0% 4.0% 4.4% 4.4% 3.0% 2.0% 1.0% 0.0% 11
Slide 12: Outlook
Outlook For personal use only • Official interest rates are likely to remain higher for longer benefiting floating rate corporate bonds and hybrid securities, representing over half of the portfolio. • Market volatility is expected to remain moderately elevated particularly as global geopolitical ri
Slide 13: Questions
For personal use only Questions 13
Ironbark Capital — Shareholder Meeting (November 2024) on 6ix