Westoz Investment Company. October 2018

Transcription

1 Westoz Investment Company October 2018

2 Disclaimer Disclaimer & Disclosure Westoz Investment Company Limited ACN (WIC) and Westoz Funds Management Pty Ltd (WFM) AFSL 85607, their related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, no warranty (express or implied) is made as to the accuracy, completeness or reliability of any statements, estimates or opinions or other information contained in these materials (any of which may change without notice) and to the maximum extent permitted by law, the Disclosers disclaim all liability and responsibility (including, without limitation, any liability arising from fault or negligence on the part of any or all of the Disclosers) for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from these materials. This information has been prepared and provided by WIC and WFM. To the extent that it includes any financial product advice, the advice is of a general nature only and does not take into account any individual s objectives, financial situation or particular needs. Before making an investment decision an individual should assess whether it meets their own needs and consult a financial advisor. Past performance is not an indication of future performance. 2

3 Westoz Investment Company Difference Western Australian based and investment focused Generated $156m of dividends and franking credits Investment Manager aligned with investors Consistent investment team 3

4 Westoz Investment Company (WIC.ASX) Snapshot, 30th Sept Market capitalisation $153m Shareholder Composition Last price $1.15 NTA (pre unreal. tax) $1.28 Share price discount 10% Fully franked dividend 6cps Fully franked yield 5.2% Gross income yield 7.5% EUROZ 27% WA 27% NSW 18% VIC 18% SA 4% QLD 3% Other 3% Source: Westoz Funds Management (WFM), IRESS 4

5 Performance Return* 30 th Sept FY2019 1Yr 3Yrs p.a. 10Yrs p.a. Inception p.a. Investment Portfolio 2.1% 28.3% 22.5% 8.4% 13.7% ASX Small Ordinaries Acc. 1.1% 20.3% 17.0% 4.8% 4.9% Bloomberg Bank Bill Index 0.5% 1.9% 2.0% 3.2% 4.0% *Returns above are before expenses, fees and taxes Source: WFM, IRESS 5

6 Payout Cumulative Dividend Returns 140c 120c 100c $1.29 of income returned to shareholders 39c 80c 60c 40c 90c 20c 0c Dividends Franking Credits Source: WFM 6

7 Payout vs Price A B C D E WIC F G H I J K L M N O P Yield on NTA 1.6% 4.0% 7.4% 0% 4% 8% -16.8% Premium/(Discount) A B C D E WIC F G -2.3% H I J K L M N O P 20.1% -20% 0% 20% Strong relationship between yield on NTA and share price vs NTA Source: ASX Investment Products Monthly Update August

8 WA Growth: Economy Entering Uptrend 20% WA State Final Demand Annual Change (Trend) 15% 10% 5% 0% Jun-00 Jun-03 Jun-06 Jun-09 Jun-12 Jun-15 Jun-18-5% -10% Source: ABS 8

9 WA Growth: Final Demand Components State Final Demand Components - rolling 12m (SA) $120bn Household consumption $80bn Private capital formation $40bn Public capital formation Government consumption $0bn Jun 00 Jun 03 Jun 06 Jun 09 Jun 12 Jun 15 Jun 18 Source: ABS 9

10 WA Growth: Low base 140,000 Net Migration, rolling 12m 100,000 VIC NSW 60,000 QLD 20,000-20,000 Mar-1998 Mar-2002 Mar-2006 Mar-2010 Mar-2014 Mar-2018 WA Source: ABS, WFM 10

11 WA Growth: Capacity 200 WA 200 NSW House Prices 140 Wages Wages 100 House 80 Prices Mar 10 Mar 14 Mar Mar 10 Mar 14 Mar 18 Source: ABS 11

12 WA Growth: Confidence Source: CCIWA 12

13 WA Growth: Confidence driver 40% Job Vacancies - Annual Change +27% 20% 0% Aug-2012 Aug-2014 Aug-2016 Aug % -40% Source: ABS 13

14 Investment Considerations People Capital Cash flow Value 14

15 Australis Oil & Gas (ATS.ASX) 60c ATS Share Price 50c 40c 30c 20c 10c Jul-2016 Jul-2017 Jul-2018 People Experience: Aurora Oil & Gas Equity: Board & Management 11% Capital Net cash, undrawn facilities Producing assets, land holdings Cash flow Value Cash flow from producing asset Cash flow growth potential Information to assess Value enhancement catalysts Source: IRESS, WFM 15

16 Portfolio Holdings Westoz Sept 18 Australis Oil & Gas 13% Cedar Woods Properties 9% Finbar Group 6% Ausdrill 6% Macmahon Holdings 5% Cooper Energy 5% Evolution Mining 5% Materials 16% Real Estate 15% Cash 11% Energy 19% Mount Gibson Iron 4% Independence Group 4% Southern Cross Electrical 4% Austal 3% Industrials 24% Gold 13% Financials 2% Regis Resources 3% Other 22% Cash 11% 16

17 Shareholder Communications Weekly Shareholder Weekly NTA Disclosure Economic Updates Monthly Portfolio Report Regular Shareholder Briefings Subscribe : admin@westozfunds.com.au

18 Contacts Dermot Woods Executive Director (08) Tim Banfield Head of Distribution (08) Jaime Underdown Chief Operating Officer (08)