5 th Annual Meeting of Shareholders Thursday 1 November 2012
Welcome to the 5 th Marlin Global Annual Meeting of Shareholders • Duly convened • Quorum
Preliminary Matters • 2011 Meeting Minutes • 2012 Annual Report • Voting by way of poll • Registration
Agenda • Chairman’s Overview • Manager’s Review • Questions relating to the Chairman’s and Manager’s presentations • Annual Meeting Resolutions – Election of directors – Auditor remuneration – Elevation proposal • Voting and Conclusion
Please note 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
Introduction Board of Directors • Alistair Ryan Chairman • Carmel Fisher Director • Carol Campbell Director Senior Portfolio Manager • Roger Garrett Senior Investment Analyst • Manuel Greenland Chief Financial Officer • Ben Doshi
Audited Proxy Count Resolution For Against Discretionary Total Abstain Re-elect 5,167,612 632,080 1,375,697 7,175,389 22,798 Carmel Fisher Elect 4,997,868 662,677 1,527,642 7,188,187 10,000 Alistair Ryan Elect 4,974,313 666,384 1,547,490 7,188,187 10,000 Carol Campbell Fix 4,843,148 5,500 1,863,943 6,712,591 485,596 Auditor Fees Elevation 6,262,067 26,995,175 2,484,736 35,741,978 - proposal Proxy votes to date: 7 million = 7% (resolutions 1-4), 35 million = 34% (resolution 5)
Today’s Meeting • Business as per the Notice of Meeting circulated on 24 September 2012 • Elevation Capital Resolution circulated on 17 October 2012 • Matters raised in conjunction with the Elevation proposal will be addressed • Mr Swasbrook will speak to the Elevation resolution • Adequate time will be allowed but we will be mindful of time management
Presentation of Annual Result Chairman’s Overview
Overview of the Year • Net loss of $12.0m – First half loss of $18.1m – Second half profit of $6.1m – $2.5m impairment of Fook Woo • Adjusted Net Asset Value decreased 11.5% (9.1%) All figures have either been audited by PwC or reviewed by an independent actuary
Adjusted Net Asset Value Year to Since inception 30 June 2012 (Nov 2007) Adjusted Net Asset (11.5%) +6.5% Value MSCI Global Small (5.3%) (10.5%) Cap Gross Index (in NZD) All figures have been reviewed by an independent actuary
Overview of the Year • Net loss of $12.0m – First half loss of $18.1m – Second half profit of $6.1m – $2.5m impairment of Fook Woo • Adjusted Net Asset Value decreased 11.5% • Total Shareholder Return decreased 18.4% All figures have either been audited by PwC or reviewed by an independent actuary
Total Shareholder Return Share Price at 30 June 2010 $0.83 Share Price at 30 June 2011 $0.95 Share Price at 30 June 2012 $0.70 Change (FY12) (26.3%) Dividends paid during year (FY12) 7.43cps Total Shareholder Return (FY12) (18.4%)
Total Shareholder Return $1.20 0.025 Dividends $1.10 T otal Shareholder Return* 0.020 $1.00 Share Price Dividends Per Share $0.90 0.015 Return $0.80 0.010 $0.70 $0.60 0.005 $0.50 $0.40 0.000 Jul-09 Jun-12 Nov-07 Apr-08 Sep-08 Feb-09 Dec-09 May-10 Oct-10 Mar-11 Aug-11 Jan-12 *Assumes all dividends are reinvested, but excludes imputation credits. Source: Fisher Funds
Overview of the Year • Net loss of $12.0m – First half loss of $18.1m – Second half profit of $6.1m – $2.5m impairment of Fook Woo • Adjusted Net Asset Value decreased 11.5% • Total Shareholder Return of decreased 18.4% • 7.43 cents per share paid in dividends All figures have either been audited by PwC or reviewed by an independent actuary
Three Month Update 1 July – 30 September (2.9%) Adjusted Net Asset Value +1.3% Total Shareholder Return MSCI Global Small Cap Gross +3.0% Index
Communication and Reporting • Frequent, comprehensive • Marlin website • Quarterly newsletters and monthly updates • Interim and annual reports • Good reporting
Board • Board rotation and refresh during 2011/12 • Two new experienced directors added to the Board – Alistair Ryan (February) to replace Annabel Cotton – Carol Campbell (June) to replace the anticipated retirement of James Miller (end of August) • Recruitment to replace Mark Todd in progress • Carmel Fisher since 2007
Governance • Remuneration & Nominations Committee • Share Purchase Plan • Independence as per NZX
Management Agreement • Contract with specific obligations and commitments on both parties • Renewal is based on Fisher Funds’ performance of the contract over a five year period • Comprehensive review undertaken • Performance metrics by Morningstar • Independent process validation
Management Agreement • Terms of the agreement available to all shareholders • Decision to renew and not invoke the non-renewal process • Marlin is identified as a Fisher Funds managed fund • Outperformance until 2011 • 2012 a year of two halves
Management Agreement • Second half performance significant improvement, despite Fook Woo • Fisher Funds team - depth and capability • Future performance potential • Non-renewal: initiated by mid August latest, six weeks before initial Elevation proposal • Checked to validate before formalising renewal decision, given Elevation proposal
Manager’s Review Carmel Fisher, Roger Garrett & Manuel Greenland
The year that was • Disappointing recent performance but remain ahead of market • New team & orderly transition • Investment approach for ‘new normal’ environment
Contributors in year to 30 September 2012 Sarin +3.1% Valid +1.3% Wirecard +1.2% Equinix +1.2% Conceptus +1.1% Fook Woo -3.9% Ports Design -2.2% Torishima -0.7% O2 Micro -0.6% China Automation -0.6% Euro/NZD -0.3% USD/NZD -0.2% HKD/NZD -0.1% Currency overall -0.6% China overall -6.7%
NAV performance vs Index Marlin Adjusted NAV 20% MSCI Global Small Cap Gross Index (in NZD) 15% Value add 10% 5% 0% -5% -10% -15% -20% 2008 (partial year) 2009 2010 2011 2012 Inception to 30 Sep 2012
As for the discount ... 0.00 -0.10 -0.20 -0.30 -0.40 -0.50 -0.60 -0.70 SUNVEST WIDESPREAD GLOBAL PETERS MARLIN TEMPLETON PLATINUM MAGELLAN PREMIUM CORPORATION PORTFOLIOS MASTERS MACGREGOR GLOBAL LTD GLOBAL CAPITAL LTD FLAGSHIP INVESTORS LIMITED LTD FUND LTD INVESTMENTS GROWTH FUND LTD LTD FUND NZX and ASX closed-end listed investment companies with international equities focus as at 30 September 2012
As for the discount ... 0.00 -0.05 -0.10 -0.15 -0.20 -0.25 -0.30 -0.35 -0.40 -0.45 BENTLEY AMP CAPITAL PETERS MARLIN TEMPLETON HUNTER HALL MERCANTILE PLATINUM MAGELLAN CAPITAL LTD CHINA MACGREGOR GLOBAL LTD GLOBAL GLOBAL VALUE INVESTMENT CAPITAL LTD FLAGSHIP GROWTH FD INVESTMENTS GROWTH LTD CO LTD FUND LTD FUND NZX and ASX closed-end listed investment companies with international equities focus per KPMG report 2009 as at 30 September 2012
As for the discount ... 10% 0% -10% -20% -30% -40% -50% -60% -70% NZX and ASX closed-end listed investment companies with international equities including sector funds as at 30 September 2012
Introducing the team Mark Brighouse - Chief Investment Officer Manuel Greenland - Senior Investment Analyst Roger Garrett - Senior Portfolio Manager With support from the entire Fisher Funds investment team – one of the largest and most experienced in New Zealand.
The Transition at Fisher Funds May June July Aug Sep 2012 2012 2012 2012 2012 Manuel Greenland joins the team Ken working Ken working from NZ from the USA Roger Garrett joins the team
Initial Portfolio Review 18% 57% 25% China Defensive Growth company 25% 50% 25% Growth mkt New products New markets
Portfolio Performance Investment thesis Distribution of returns since June 13% 17% 54% 29% -5% Good Challenged Review -30% Good Challenged Review
Recent Decisions Sell Torishima Pump • Fundamental 800 review 750 700 - 21% 650 600 550 • Robust sell 500 450 and buy 400 27/07/2012 27/08/2012 27/09/2012 discipline Raffles Education 0.39 0.37 + 14% 0.35 0.33 0.31 0.29 0.27 0.25 27/07/2012 27/08/2012 27/09/2012
Recent Decisions • Innovative Buy VW analysis 154 152 +8.2% 150 148 • Enhancing 146 144 quality focus 142 140
New Senior Portfolio Manager Roger Garrett • 24 years investment management experience • 18 years experience covering international equity markets while based in London – Emerging Market Equities – International Equities
Some Key Global Investment Principles • Disciplined process backed up by in house research • Fundamental analysis • Focus on medium – long term growth companies • A preference for high quality companies with strong cash flow • Generally avoid the outliers • Develop a keen understanding of the risks associated with a company • Don’t overpay
Portfolio Strategy • Validation of all stocks in the portfolio according to STEEPP • Meeting company management • Understanding the risks to the investment thesis • Match portfolio weightings with conviction levels • Identify new ideas for the portfolio
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