8IP Emerging Companies – Proposed Listed Investment Company
Eight Investment Partners Pty Ltd ABN 22 139 616 783 AFSL 342 305
8IP Emerging Companies Proposed Listed Investment Company Investor - - PowerPoint PPT Presentation
Kerry Series, CIO & Portfolio Manager Stephen Walsh, Portfolio Manager October 2015 8IP Emerging Companies Proposed Listed Investment Company Investor Presentation Eight Investment Partners Pty Ltd ABN 22 139 616 783 AFSL 342 305
Eight Investment Partners Pty Ltd ABN 22 139 616 783 AFSL 342 305
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This presentation was prepared by Eight Investment Partners Pty Limited (ABN 22 139 616 783, AFSL 342 305) as the Manager for 8IP Emerging Companies Limited (a company proposed to be listed on the ASX as a listed investment company) (“8EC”). 8EC submitted a Prospectus for approval with ASIC and the ASX on 2 October 2015 and is awaiting approval. This presentation has been prepared solely for use in conjunction with presentations to sophisticated and professional investors and their representatives. Not investment advice This presentation and the information contained within is not an investment statement, prospectus, product disclosure statement or other form of disclosure document under the Corporations Act 2001 (Cth) (Corporations Act) and has not been lodged with the Australian Securities and Investments Commission. It does not include all the information that a prospectus or other disclosure document may contain. The information presented in this presentation may differ materially from that presented in any disclosure document prepared in connection with any offer of securities. Provision of this presentation is not a representation to you or any other person that a transaction will be entered into. Any transaction would be undertaken solely on the basis of the disclosure documentation specific to that transaction. Disclaimer Statements in this presentation are made only as at October 2015 and the information in this presentation remains subject to change without notice. Neither 8IP nor any other entity noted in this document have any responsibility to inform you of any matter arising or coming to their notice after the date of this presentation, which may affect any matter referred to in this presentation. This document has been prepared for the purpose of providing general information, without taking account of your particular objectives, financial circumstances or needs. This presentation contains a synopsis of information on 8IP and 8EC, and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or completeness of such information. While the information in this document has been prepared with all reasonable care, neither 8IP nor other parties associated with the Offer makes any representation or warranty as to the accuracy or completeness of any statement in this document including any forecasts. The information contained in this presentation does not constitute investment product advice (nor taxation or legal advice) or a recommendation to acquire shares in 8EC and is not intended to be used as the basis of making any investment decision. Neither 8IP, 8EC nor other parties associated with the Offer guarantees the performance of 8EC or the repayment of any investor’s capital or the payment of any income. To the maximum extent permitted by law, neither 8IP, 8EC nor other parties associated with the Offer (including all persons named in this prospectus), including their employees, consultants, advisers, officers or authorised representatives, are liable for any loss or damage arising as a result of reliance placed on the contents of this presentation or use of information contained in this presentation (including in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or omissions from, this presentation including without limitation any financial information, estimates or projections and any other information derived there from) and all such liability is expressly disclaimed. Not an offer of securities This presentation is neither an offer to sell nor a solicitation of any offer to buy any securities in the United States or elsewhere. Any offering is made only pursuant to the relevant offering document, if available, and the relevant subscription application, all of which must be read in their entirety. No offer to purchase securities will be made or accepted prior to receipt by the provider of these documents and the completion of all appropriate
8EC will be the issuer of securities under the Offer. The Prospectus for the Offer is available to be obtained by calling the Offer Hotline on +61 2 8274 2088 during the Offer Period. Offers of securities under the Offer will be made in, or accompanied by, a copy of the Prospectus. You should consider the Prospectus in deciding whether to acquire any securities. Anyone who wishes to acquire securities will need to complete the application form that will be in or will accompany the Prospectus. Confidentiality It is a condition of you receiving this presentation that it is to be confidential and will not be reproduced, copied or circulated, in whole or in part, to any third party without the express written consent of 8IP. By receiving this presentation, you agree and acknowledge that the presentation and its contents are confidential and should not be distributed, published or reproduced in whole or in part or disclosed directly or indirectly to any other person. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions.
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Relevant law and relevant persons This presentation is being provided to you on the basis that you are, and that you represent and warrant that:
(a)
If you are in Australia, you are a "professional investor" or "sophisticated investor" (as those terms are used in section 708(11) and 708(8) respectively of the Corporations Act) and are also, in each case, a "wholesale client" (as defined in section 761A of the Corporations Act); or
(b)
If you are outside Australia, you are a person to whom an invitation, offer or issue of securities can be made outside Australia without registration, lodgement or approval of a formal disclosure document or other filing or other formality in accordance with the laws of that foreign jurisdiction; and
(c)
You are not in the United States and you are not a U.S. Person (as defined in Regulation S under the U.S. Securities Act 1933, as amended) (U.S. Person) and you are not acting for the account
If you are not such a person, you are not entitled to receive this presentation and must promptly return all materials received from 8IP (including this presentation) without retaining any copies. This presentation may not be distributed or released (directly or indirectly) in the United States. Persons who come into possession of this presentation who are not in Australia should seek professional advice and observe any such restrictions. Forward looking statements This presentation contains forward-looking statements concerning 8EC's business, operations, financial performance and condition as well as 8EC's plans, objectives and expectations for its business,
these statements by words such as "aim", "anticipate", "assume", "believe", "could", "due", "estimate", "expect", "goal", "intend", "may", "objective", "plan", "predict", "potential", "positioned", "should", "target", "will", "would" and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, forecasts and projections about 8EC's business and the industry in which 8EC operates and management's beliefs and
cases beyond 8EC's control. As a result, any or all of the forward-looking statements in this presentation may turn out to be inaccurate. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. These forward-looking statements speak only as at the date of this presentation. Unless required by law, 8EC does not intend to publicly update or revise any forward-looking statements to reflect new information, future events or otherwise. You should, however, review the factors and risks the Company describes in the reports to be filed from time to time with ASX after the date of this presentation. Some numerical figures in this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that preceded them. Statements of Past Performance This presentation includes information regarding the past performance of 8IP. Investors should be aware that past performance is not indicative of future performance and that the past performance
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Concentrated approach The investment strategy is to invest in a concentrated portfolio of typically 20-30 primarily ASX-listed companies Emerging companies The main focus is companies with market capitalisations typically in the range of $20m to $500m Ability to hedge market risk May hold up to 20% cash and derivatives may be used to hedge market risk up to 80% of NTA Limited Capacity This strategy is constrained by the liquidity of portfolio stocks Target raise The Offer is to raise a maximum of $50m with oversubscriptions of up to $8m and a minimum raise of $18m Options IPO investors will receive 1 option exercisable at $1.00 by 30 Nov 2016 for every 2 IPO shares SIV Compliant At the date of the Prospectus, the investment guidelines meet the Emerging Companies Investment Requirement for a SIV and the Manager's total amount of FUM meets the relevant requirements.
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8IP Australian Small Companies Fund
*Investors should be aware that past performance is not indicative of future performance and that the past performance of the Manager is not the past performance of the Company. 8IP Australian Small Companies Fund cumulative returns net of fees (annualised) for various periods to date compared with the S&P/ASX Small Ordinaries Accumulation Index as at 31 August 2015. For investors in the 8IP Australian Small Companies Fund, investment performance is calculated by Fundhost in accordance with Financial Services Council standards.
20 40 60 80 100 120 140 160 180 200 8IP Australian Small Companies Fund (net-of-fees) S&P/ASX Small Ordinaries Accumulation Index
Annualised Net of Management and Performance Fees 1 Month 3 Months 6 Months 1 Year 2 Years %pa 3 Years %pa Since 30 November 2011 %pa 8IP Australian Small Companies Fund (net-of-fees)
14.00% 14.93% 10.46% S&P/ASX Small Ordinaries Accumulation Index
0.38%
Active Return 1.20% 5.64% 8.33% 7.37% 15.43% 14.56% 11.31%
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8IP Australian Small Companies Portfolio - Representative Portfolio
*Investors should be aware that past performance is not indicative of future performance and that the past performance of the Manager is not the past performance of the Company. 8IP Australian Small Companies Portfolio cumulative returns net of fees (annualised) for various periods to date compared with the RBA cash rate plus 2% per annum as at 31 August 2015. For investors in the 8IP Australian Small Companies Portfolio, investment performance is calculated by Mason Stevens in accordance with Financial Services Council standards. The returns of the representative account are used to report the track record of the Concentrated Strategy in periodic reporting.
20 40 60 80 100 120 140 160 180 200 8IP Australian Small Companies Portfolio (net-of-fees) RBA Cash Rate + 2% per annum
Annualised Net of Management and Performance Fees 1 Month 3 Months 6 Months 1 Year Since Launch %pa 8IP Australian Small Companies Portfolio (net-of-fees) 4.66% 10.82% 33.12% 69.59% 67.38% RBA Cash Rate + 2% per annum 0.34% 1.01% 2.08% 4.36% 4.40% Active Return 4.32% 9.81% 31.04% 65.23% 62.98%
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Independent Min. Subscription
Chairman, Non-executive independent Director
Jones
Folkestone) Yes $250,000
Non-executive independent Director
Mutual
Yes $25,000
Executive non- independent Director
No $1,000,000
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management of c. $5bn
specialist stockbroker
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institutional asset management business
implementation team
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Typically 20-30 stocks (up to maximum 45)
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* These stars are representative of the portfolio construction of the 8IP Australian Small Companies Portfolio at 30 September 2015. ** This table is for illustrative purposes only and does not represent actual or proposed holdings of 8EC. ** 8EC's portfolio may differ for a range of reasons. These reasons include that its mandate is intended (at the date of listing) to be compliant with the SIV emerging companies investment requirements and the operation of the investment methodology in the period following this presentation may yield different stars. ** None of the stocks listed above may actually be held by 8EC when its portfolio is acquired.
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16 Feature Detail Holdings Typically 20-30 ASX-listed securities (minimum 20, maximum 45) Market capitalisation Predominantly invested in companies with market capitalisation below $500m at time of purchase (with up to 30% in previously held companies where the capitalisation is above $500m) Individual stock weight Maximum 10% at time of purchase Cash Up to 20% Derivatives Underlying exposure of up to 80% Sector exposures No limits Unlisted pre-IPO securities Up to 20% where the Manager expects ASX listing within 6 months Overseas securities Up to 10% may be invested in securities listed on foreign stock exchanges
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FEATURE DETAIL
Company 8IP Emerging Companies Limited Manager Eight Investment Partners Pty Limited (8IP) Price per share (IPO) $1.00 Target raise (maximum) Maximum $50m with up to $8m oversubscriptions Minimum raise $18m Options 1 option for every 2 IPO shares Option terms Exercisable at $1.00 at any time up to and including 30 November 2016 Fees (excl GST) 1.25% management fee + 20% of performance above benchmark Benchmark RBA cash rate + 2% per annum Lead broker Taylor Collison Co-Managers Bell Potter, Shaw and Partners Legal adviser Ashurst Accountants and Auditor Moore Stephens Administrator and Custodian White Outsourcing Share registry and company secretary Boardroom
19 Note: The above timetable is indicative only. The LIC reserves the right to vary the dates and times set out above subject to the Corporations Act and other applicable law.
EVENT DATE
Offer opens 19 October 2015 Offer closes 16 November 2015 at 5.00pm Expected date for allotment of shares and options 23 November 2015 Expected date for dispatch of holding statements 24 November 2015 Trading of shares and options commences on ASX (on a normal settlement basis) 1 December 2015 Final date to exercise Options 12 December 2016
KEY INFORMATION DETAIL
Pro forma NAV per Share at Minimum Subscription $0.977 Pro forma NAV per Share at Maximum Subscription before any Oversubscriptions $0.985