2013 Meeting Minutes - Marlin · presentation is class advice and is not to be taken as...

• 2013 Meeting Minutes

• 2014 Annual Report

• Voting by way of poll

• Voting papers

• 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

• 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

Alistair Ryan (Chairman) Carmel Fisher

Carol Campbell Andy Coupe

Roger Garrett Ashley Gardyne & Chris Waters

Glenn Ashwell

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

• 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.

• Net profit $11.1m (2013: profit $9.5m)


• Adjusted NAV* +11.9% (2013: +10.6%)

*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%


• Adjusted NAV* +11.9% (2013: +10.6%)

• Total Shareholder Return* +28.5% (2013: +12.2%)


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%



• Adjusted NAV* +11.9% (2013: +10.6%)


• Performance fee paid



• Adjusted NAV* +11.9% (2013: +10.6%)


• Performance fee paid

• 7.36 cents per share paid in dividends (2013: 6.82cps)


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%


• 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

• 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


MSCI World Small Cap (NZD) MSCI World Small Cap (USD)

+11.6%

1.00

1.05

1.10

1.15

1.20


• 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


MSCI World Small Cap (NZD) MSCI World Small Cap (USD)

…H1 2014 – markets were struggling

-0.8%

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

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Var

ian

Siro

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Pla

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on

ics

UP

S

Har

ley-

Dav

idso

n

Hib

bet

t

20

14

Marlin equity weightings (%)

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

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%

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

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

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eBay

Mills

Tom Tailor

• Down 8%

• -31bp contribution

• Down 13%


• Down 15%


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%

• Equity outlook remains positive

–Global growth acceleration

– Low returns in other asset classes

– Earnings delivery important

–Valuation support

“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

• Introduce and propose

• Discussion, questions

• Enter your vote on voting paper and lodge your voting paper at end of the meeting

• Annual Report

• Resolutions:

– To re-elect Carol Campbell as a Director

–Auditor’s remuneration

To re-elect Carol Campbell as a Director of Marlin Global Limited

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

• Complete and sign voting paper

• Voting papers in the voting boxes

• If you need a voting paper please see Computershare

• Results to NZX

2013 Meeting Minutes - Marlin · presentation is class advice and is not to be taken as...

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