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2013 Meeting Minutes - Marlin · presentation is class advice and is not to be taken as...
Transcript of 2013 Meeting Minutes - Marlin · presentation is class advice and is not to be taken as...
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• 2013 Meeting Minutes
• 2014 Annual Report
• Voting by way of poll
• Voting papers
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• Chairman’s Overview
• Manager’s Review
• Questions relating to the management and operations of the business
• Annual Meeting Resolutions
– Re-election of Director
– Auditor’s Remuneration
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• The information given during this presentation is class advice and is not to be taken as ‘personalised financial advice’
• A disclosure statement is available upon request
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Alistair Ryan (Chairman) Carmel Fisher
Carol Campbell Andy Coupe
Roger Garrett Ashley Gardyne & Chris Waters
Glenn Ashwell
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Resolution For Against Discretionary Total Abstain
Re-elect Carol Campbell
3,040,275 90,743 946,405 4,077,423 -
Fix auditor’s remuneration
3,034,511 22,322 1,020,590 4,077,423 -
Proxy votes to date: 4.1 million
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• Achieve a high real rate of return, comprising both income and capital growth, within risk parameters acceptable to the directors; and
• Provide access to a diversified portfolio of International growth stocks through a single tax-efficient investment vehicle.
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• Net profit $11.1m (2013: profit $9.5m)
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• Net profit $11.1m (2013: profit $9.5m)
• Adjusted NAV* +11.9% (2013: +10.6%)
*Assumes all dividends are reinvested, but excludes imputation credits.
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*Assumes all dividends are reinvested, but excludes imputation credits.
For year to 30 June 2014
Since inception (November 2007)
Adjusted NAV* +11.9% +31.7%
MSCI World Small Cap Gross Index (in NZ dollar terms)
+12.6% +27.3%
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• Net profit $11.1m (2013: profit $9.5m)
• Adjusted NAV* +11.9% (2013: +10.6%)
• Total Shareholder Return* +28.5% (2013: +12.2%)
*Assumes all dividends are reinvested, but excludes imputation credits.
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Share price at 30 June 2013 $0.71
Share price at 30 June 2014 $0.83
Change +16.9%
Dividends paid during the year 7.36cps
Total Shareholder Return* +28.5%
*Assumes all dividends are reinvested, but excludes imputation credits.
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• Net profit $11.1m (2013: profit $9.5m)
• Adjusted NAV* +11.9% (2013: +10.6%)
• Total Shareholder Return* +28.5% (2013: +12.2%)
• Performance fee paid
*Assumes all dividends are reinvested, but excludes imputation credits.
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• Net profit $11.1m (2013: profit $9.5m)
• Adjusted NAV* +11.9% (2013: +10.6%)
• Total Shareholder Return* +28.5% (2013: +12.2%)
• Performance fee paid
• 7.36 cents per share paid in dividends (2013: 6.82cps)
*Assumes all dividends are reinvested, but excludes imputation credits.
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to 30 September 2014
Adjusted NAV* +3.1%
Total Shareholder Return* +1.1%
MSCI World Small Cap Gross Index (in NZ dollar terms)
+4.7%
*Assumes all dividends are reinvested, but excludes imputation credits.
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• Review of financial markets
• What has changed in the portfolio and why
• Performance – what worked / what didn’t
• Current portfolio positioning
• Positioning the portfolio for the long run
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• x
H2 2013 – markets were humming…
1.00
1.05
1.10
1.15
1.20
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
• EU picks up
• US economy accelerating
• Abenomics
• Chinese economy stabilised
• Equity markets responsive
1.00
1.10
1.20
1.30
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
MSCI World Small Cap (NZD) MSCI World Small Cap (USD)
+11.6%
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1.00
1.05
1.10
1.15
1.20
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
• EU recovery stalls
• US economy hurt by weather
• Abenomics loses steam
• Chinese recovery not self-sustaining
• Increased equity market volatility
1.00
1.10
1.20
1.30
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
MSCI World Small Cap (NZD) MSCI World Small Cap (USD)
…H1 2014 – markets were struggling
-0.8%
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Key aim to concentrate the portfolio in our highest conviction / quality ideas
Additions
• 9 additions this year (vs 8 last year)
Exits
• 11 exits this year (vs 4 last year)
Marlin Equity Weights (%)
50
55
60
65
70
75
80
85
90
95
100
20
13
Exit
s
Reb
alan
cin
gs
Go
ogl
e
Var
ian
Siro
na
eBay
Co
lop
last
Pla
ntr
on
ics
UP
S
Har
ley-
Dav
idso
n
Hib
bet
t
20
14
Marlin equity weightings (%)
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Company What it does Position ROIC
Ostomy and incontinence devices
#1 50%
Digital dentistry equipment
#1 15%
Internet advertising #1 29%
Oncology radiotherapy
#1 41%
Online marketplace and payments
#1 & #2 30%*
*adjusted for intangibles
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Company What it does Position ROIC
Communications technology
#1 28%
Parcel delivery and freight
#1 42%
Touring and cruising motorcycles
#1 11%
Small market sports retail
#1 37%
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Performance vs Index
• Solid performance in international equities
• Small cap outperformance starts to reverse
• NZD headwind
Commentary
13.8%
11.9% 12.6%
7.3%
28.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Marlin Gross
Return
Marlin Adjusted
NAV
MSCI World Small Cap
Index
MSCI World Index
Marlin TSR
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Performance of key contributors (TSR)
• #1 supplier of technology to diamond manufacturers
• Technology materially improves returns for customers
• ROE of c.40% and increasing
• 15-20% organic growth over medium term
0%
20%
40%
60%
80%
100%
120%
Bre
mb
o
Bio
test
Sari
ne
Co
lop
last
Wir
ecar
d
Un
ited
Inte
rnet
Go
ogl
e
MSC
I Wo
rld
Sm
all C
ap
MSC
I Wo
rld
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eBay
Mills
Tom Tailor
• Down 8%
• -31bp contribution
• Down 13%
• -26bp contribution
• Down 15%
• -40bp contribution
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Geographical allocation Sector allocation
EuropeEurope
US US
Japan
JapanAsiaAsia
Other Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014
Industrial32%
Healthcare30%
Technology22%
Consumer16%
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• Equity outlook remains positive
–Global growth acceleration
– Low returns in other asset classes
– Earnings delivery important
–Valuation support
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“In this game, the market has to keep pitching, but you don’t have to swing. You can stand there with the bat on your shoulder for six months until you get a fat pitch.”
Warren Buffett
• Our goal is to maintain a high-conviction portfolio that will outperform over an economic cycle
• We have a strong watchlist of quality growth companies, which we use to opportunistically refresh the portfolio with our best ideas
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• Introduce and propose
• Discussion, questions
• Enter your vote on voting paper and lodge your voting paper at end of the meeting
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• Annual Report
• Resolutions:
– To re-elect Carol Campbell as a Director
–Auditor’s remuneration
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To re-elect Carol Campbell as a Director of Marlin Global Limited
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That the directors be authorised to fix the remuneration of PricewaterhouseCoopers’ as auditors for the ensuing year (2014/2015)
PricewaterhouseCoopers continue as the auditor of Marlin
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• Complete and sign voting paper
• Voting papers in the voting boxes
• If you need a voting paper please see Computershare
• Results to NZX
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