Small Companies Fund JAMES DOUGHERTY PORTFOLIO MANAGER July 2013 - - PowerPoint PPT Presentation

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Small Companies Fund JAMES DOUGHERTY PORTFOLIO MANAGER July 2013 - - PowerPoint PPT Presentation

MACQUARIE INVESTMENT MANAGEMENT | Teleconference Series Macquarie Australian Small Companies Fund JAMES DOUGHERTY PORTFOLIO MANAGER July 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS IMPORTANT NOTICE For


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Macquarie Australian Small Companies Fund

JAMES DOUGHERTY PORTFOLIO MANAGER

July 2013

MACQUARIE INVESTMENT MANAGEMENT | Teleconference Series

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FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS

For licensed adviser use only - not for distribution to retail investors This information has been prepared by Macquarie Investment Management Limited ABN 66 002 867 003 AFS Licence 237492 (MIML), the issuer of units in the Macquarie Australian Small Companies Fund ARSN 119 853 566 (Fund). This information is confidential and is provided to licensed financial advisers and professional advisers only. It is not to be distributed to, or disclosed to retail clients. The information may be based on assumptions or market conditions and may change without notice. The information in this presentation is provided for general information purposes only and does not take into account the investment objectives, financial situation

  • r needs of any person. It should not be relied upon in determining whether to invest in the Fund. In deciding whether to acquire or continue to hold an investment

in the Fund, an investor should consider the Fund’s product disclosure statement. The product disclosure statement is available on our website at macquarie.com.au/pds or by contacting us on 1800 814 523. Past performance information is for illustrative purposes only and is not indicative of future performance. This presentation may include forward-looking statements that represent opinions, estimates and projections, which may not be realised. We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. Certain parts of this presentation may have been obtained or are based upon information obtained from third parties which may not have been checked or verified. Investments in the Fund are not a deposits with, or other liabilities of, Macquarie Bank Limited or of any other member of the Macquarie Group and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither Macquarie Bank Limited nor any

  • ther member of the Macquarie Group guarantees the performance of the Fund or the repayment of capital from a Fund, or any particular rate of return.

IMPORTANT NOTICE

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Agenda

01 2Q13 update 4 02 Economic and market backdrop 7 03 Positioning and performance 13 04 Contact details 17

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01

2Q13 update

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  • 25%
  • 20%
  • 15%
  • 10%
  • 5%

0% 5% 10% 15% 20% 25%

3Q 2012 4Q 2012 1Q 2013 2Q 2013

Net return

Macquarie Australian Small Companies Fund S&P/ASX Small Ordinaries Accumulation Accumulation Index

Macquarie Australian Small Companies Fund

2Q13 performance

Quarterly net returns

Source: Iress, Macquarie Investment Management, June 2013

As at 30 June 2013 (post fees) Fund (%) Benchmark (%) Variance (%) 3 months

  • 14.59
  • 14.85

+0.26 1 Year

  • 1.19
  • 5.32

+4.13

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Top five contributors and detractors over the quarter

Macquarie Australian Small Companies Fund

2Q13 performance attribution

Top contributors Top detractors Next DC Oceanagold Henderson Group Buru Energy Breville Group Transfield Services JB Hi-fi Macmahon Holdings Navitas Limited Tiger Resources

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02

Economic and market backdrop

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 China reported GDP growth in 1Q13 of 7.7%yoy (vs expectations of 8.0%yoy)  US Federal Reserve signalled its asset purchase program could be

moderated by late 2013

 People’s Bank of China let tight liquidity in the interbank market continue for

longer than expected

 RBA eased the cash rate 0.25% in May, Australian U/E rose to 5.7% in June

Key events

2Q13

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Shifts in the US yield curve over the past 12 months

US yield curve steepening

Source: Bloomberg, CIMB June 2013

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Prospect of QE tapering had an immediate effect on $A and Gold

0.9 0.95 1 1.05 1.1 Jul 12 Sep 12 Nov 12 Jan 13 Mar 13 May 13

AUDUSD

1200 1400 1600 1800

Jul 12 Sep 12 Nov 12 Jan 13 Mar 13 May 13

USD/oz

Source: Iress, Macquarie June 2013

$A / US$ Gold (USD/oz)

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China 1-week interbank SHIBOR Rate

Chinese Government targeting slower, stable growth

Source: UBS, Datastream, July 2013

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Concerns over a transitioning Australian economy

12

Source:ABS, BofA Merill Lynch Global Research June 2013

Capital investment by sector Australian unemployment rate

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03

Positioning and performance

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0% 10% 20% 30% 40%

Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials & Property ex LPT s LPT s Information T echnology T elecommunication Services Utilities

Percentage of portfolio

ASX Small Ordinaries Index Macquarie Australian Small Companies Fund

Macquarie Australian Small Companies Fund

Positioning

Source: Macquarie Investment Management June 2013

0% 25% 50% 75% 100%

Macquarie Australian Small Companies Fund ASX Small Ords Index

Resources Industrials LPTs Sector positions Segment aware

As at 30 June 2013

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Macquarie Australian Small Companies Fund

Largest stock overweights

15

0% 1% 2% 3% 4%

Senex Energy T echnology One Navitas Mount Gibson Iron Flexigroup Ainsworth Game T echnology Carsales.com BC Iron AWE Limited HGG Group

Overweight

Source: Macquarie Investment Management, 30 June 2013

As at 30 June 2013

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Source: Macquarie Investment Management. Past performance is not a reliable indication of future performance.

  • 1. The inception date of the Fund is 7 July 2006.
  • 2. The Fund invests wholly into the Macquarie Small Companies Fund (Underlying Fund), which commenced on 18 February 1998.
  • 3. The performance figures from 7 July 2006 are the actual returns of the Fund.
  • 4. The performance figures before 7 July 2006 are the returns after fees for the Underlying Fund with the results adjusted to include the effect of the management fee of

0.923% pa and the performance fee of the Fund (which has been removed but applied to the Fund up until February 2012).

Macquarie Australian Small Companies Fund

Performance

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Post fee as at 30 June 2013 3 months (%) 1 year (%) 3 years (% pa) 5 years (% pa) Since Fund inception1 (% pa) Since strategy inception2 (% pa) Fund performance3

  • 14.59
  • 1.19

5.23

  • 1.32

1.26 9.25 S&P/ASX Small Ordinaries Accumulation Index

  • 14.85
  • 5.32
  • 2.00
  • 5.65
  • 2.45

4.10 Variance +0.26 +4.13 +7.23 +4.34 +3.71 +5.16

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04

Contact details

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Business Development Team

Cameron Farrar Head of National Sales P (02) 8237 5438 M 0425 317 203 E cameron.farrar@macquarie.com Jimmy Byrne Business Development Manager P (02) 8232 0604 M 0422 429 865 E jimmy.byrne@macquarie.com Raegan Williams Business Development Manager P (07) 3233 5220 M 0417 448 473 E raegan.williams@macquarie.com Jessica Chen Business Development Associate P (02) 8237 6835 E jessica.chen2@macquarie.com Rani Singh Business Development Officer P (03) 9635 9292 E rani.singh@macquarie.com Benjamin Price Head of National Accounts and Researcher Relations P (02) 8237 4243 M 0414 973 494 E benjamin.price@macquarie.com Haydn Scott Business Development Manager P (03) 9635 9679 M 0408 902 427 E haydn.scott@macquarie.com Alana Grist Business Development Manager P (03) 9635 8035 M 0417 455 831 E alana.grist@macquarie.com Joel Lewis Business Development Associate P (03) 9635 8392 E joel.lewis@macquarie.com Sam Bishop Business Development Officer P (07) 3233 5221 E sam.bishop@macquarie.com

NSW ACT NSW NSW ACT QLD VIC TAS VIC SA WA VIC SA WA TAS QLD VIC SA WA TAS

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Thank you

Thank you for dialling in to the Macquarie Australian Small Companies Fund update We hope to speak to you during our next Teleconference Series in October 2013 Look out for our next monthly update email for more information

Information on the funds in this month’s Teleconference Series can be found at the Macquarie Investment Management website: macquarie.com.au/mim

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