Transcript PRESENTATION TO RBS MORGANS

ASX SPOTLIGHT
B L U E S K Y A LT E R N AT I V E I N V E S T M E N T S L I M I T E D
M AY 2 0 1 4
Private Equity | Private Real Estate | Hedge Funds | Real Assets
blueskyfunds.com.au | Page 1
DISCLAIMER
This presentation has been prepared by Blue Sky Alternative Investments Limited (‘Blue Sky’). The information in this presentation is of a general nature and does not
purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirements of the
Corporations Act.
This presentation contains statements, opinions, projections, forecasts and other material (forward looking statements), based on various assumptions. Those
assumptions may or may not prove to be correct. None of Blue Sky, its respective officers, employees, agents, advisers or any other person named in this presentation
makes any representation as to the accuracy or likelihood of fulfilment of the forward looking statements or any of the assumptions upon which they are based.
The information contained in this presentation does not take into account the investment objectives, financial situation or particular needs of any recipient and is not
financial product advice. Before making an investment decision, recipients of this presentation should consider their own needs and situation and, if necessary, seek
independent, professional advice.
To the extent permitted by law, Blue Sky and its respective officers, employees, agents and advisers give no warranty, representation or guarantee as to the accuracy,
completeness or reliability of the information contained in this presentation. Further, none of Blue Sky and its respective officers, employees, agents and advisers
accept, to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in
this presentation. Any recipient of this presentation should independently satisfy themselves as to the accuracy of all information contained herein.
blueskyfunds.com.au | Page 2
ABOUT BLUE SKY
•
Founded in 2006, listed in 2012
•
Focused on four major alternative asset classes:
–
–
–
–
Real assets (water entitlements and water infrastructure)
Private equity
Private real estate
Hedge funds
•
>$145m market cap1
•
Over $550m in Assets Under Management
•
Investor base: HNW direct, institutional direct, retail & semi whole sale via listed diversified fund
•
Offices in Brisbane, Sydney, Melbourne, Adelaide and New York
•
46 staff
1) Based on a closing price on 23 May 2014 of $2.61 and issued capital of 56,047,589 shares.
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W H Y A LT E R N AT I V E S ?
•
Used to enhance risk/return characteristics of investment portfolios
–
–
–
•
Increase diversification
Reduce overall volatility (given low correlations to traditional investments)
Potential for delivery of enhanced total portfolio returns
Potential for strong returns
–
–
–
–
Wider opportunity set
Less efficient than public markets
Direct and active management
Managers incentives are typically based on absolute returns (not relative returns)
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I N S T I T U T I O N A L I N V E S TO R S
A L L O C AT E > 2 0 % TO A LT E R N AT I V E S
Russell Investments - Global Survey on Alternative Investing
Example allocations
Average asset allocation by institutional investors
38% allocation to alternatives1
56% allocation to alternatives
24% allocation to alternatives
1) Includes alternative assets, private equity, infrastructure and timberland and property
Source: Company websites. Russell Investments’ 2012 Global Survey on Alternative Investing. Survey included responses from 146 institutional investors representing $1.1 trillion in
assets
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A L L O C AT I O N S TO A LT E R N AT I V E S
ARE GROWING IN AUSTRALIA
Allocations to
alternatives have
almost tripled,
from 5% in 1997
to 14% in 2013.
Allocations
anticipated to rise
to just under 20%
by 2033
Source: Rainmaker Roundup – Edition 64 (December 2013)
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B L U E S K Y: A S N A P S H O T
RAPIDLY GROWING INDEPENDENT ALTERNATIVE ASSET MANAGER
BLUE SKY ALTERNATIVE INVESTMENTS LIMITED (ASX:BLA)
PRIVATE
EQUITY
• Expansion capital minority partners for
Australian SME
growth companies
• Late Stage Venture
Capital
PRIVATE REAL
ESTATE
• Private equity into
real estate
• Affordable, medium
density residential
development
projects
• Yielding
investments in
property
management rights
REAL
ASSETS
• Blue Sky Water
Fund - investment
in water
entitlements
• Water Utilities
Australia investment into
small scale water
infrastructure
HEDGE
FUNDS
• Strategic risk
allocation
products
• Targets defined
portfolio volatility
levels
• Current AUM1 is ~$550m
• FY17 target of $2bn in
AUM
• ~50% from offshore
investors; ~50%
domestic investors
• ~ 50% from
institutional investors;
~50% from noninstitutional investors
• Property
mezzanine
investments
(1) AUM stands for Assets Under Management.
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BLUE SKY’S TRACK RECORD
Returns to investors in Blue Sky managed funds
(since inception in 2006, net of fees)
20%
16.3%
16.7%
15%
13.9%
10.0%
10%
7.9%
5%
0%
PRIVATE
EQUITY
PRIVATE
REAL ESTATE
REAL
ASSETS
HEDGE
FUNDS
TOTAL
(1) Note that total returns are equity weighted returns since inception through to 31 March 2014 (for Real Assets and Hedge Funds) and 28 February 2014 (for Private Equity and Private Real Estate). All returns
are net of fees.
(2) Note that past performance is not a reliable indicator of future performance.
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P R I VAT E E Q U I T Y
BLUE SKY PORTFOLIO COMPANIES
•
Focused on expansion capital
and late stage venture capital
•
Australian SME growth
companies
•
Current portfolio of 16 assets
•
Established in 2006
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P R I VAT E R E A L E S TAT E
•
Asset backed, income generating assets
e.g.
– Management rights
– Freehold motels
•
High density, affordable developments
•
Established in 2007
blueskyfunds.com.au | Page 10
REAL ASSETS
•
Water entitlements
– Australia has the World’s leading water
rights trading market
– Our focus is on entitlements in the
southern Murray-Darling Basin
– Asian food bowl investment thematic
•
Water infrastructure
– Infrastructure for residential and
commercial property (existing and
greenfield)
– Agricultural schemes
•
Established in 2007
blueskyfunds.com.au | Page 11
HEDGE FUNDS
•
Blue Sky acquired hedge fund manager, Investment Science, in April 2014
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Investment Science’s approach is focused on risk, with correlations between asset
classes a primary determinant of portfolio construction
– Helps investors mitigate risk of allocating to a portfolio of assets that appear ‘diverse’
but that in reality are highly correlated
•
Currently manages ~$70m across four funds that target different levels of risk (between
4% - 16% volatility p.a.)
•
Market penetration across financial planners
•
Established in 2006
(1) Note that past performance is not a reliable indicator of future performance. Note also that the returns reflect the average historical performance of Investment Science’s funds
only and do not relate to the future performance of the Alternatives Fund, and should not be relied upon and is not an indication of future performance of the Alternatives Fund.
Refer to the Glossary for further details.
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SHARE PRICE AND REGISTER
SHARE PRICE PERFORMANCE SINCE IPO
$2.50
SHARE REGISTER MAKE UP
$2.00
Blue Sky Directors
27%
$1.50
Other Blue Sky Employees
$1.00
May-14
Apr-14
Jan-14
Feb-14
Mar-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
Apr-13
May-13
Feb-13
Mar-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
Apr-12
May-12
Mar-12
Feb-12
Jan-12
$0.50
9%
Other
64%
Total
100%
DAILY VOLUME SINCE IPO
FINANCIAL SNAPSHOT
500
• FY14 NPAT guidance of $5 million +
400
300
• $33 million tangible assets on Balance
Sheet ~ Cash + Investments in AUM
200
100
Apr-14
Feb-14
Mar-14
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
Apr-13
May-13
Feb-13
Mar-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
Apr-12
May-12
Mar-12
Feb-12
Jan-12
0
May-14
In thousands
600
Note that charts above use data up to and including 21 May 2014.
blueskyfunds.com.au | Page 13
BLUE SKY LISTED DIVERSIFIED FUND
•
Currently completing the IPO of Blue Sky Alternatives Access Fund Limited on ASX (ASX:BAF)
•
Blue Sky managed co-investment fund offered as a Listed Investment Company
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Diversified, low fee, co-investment along side HNW / institutional direct investment clients
•
Provides “liquid access” to alternatives for retail and semi whole sale markets (e.g. Self Managed Super
Funds)
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Raising up to $100m, offers closes 4 June*
* ‘A prospectus in respect of the Offer has been lodged with the Australian Securities and Investments Commission and is available at www.blueskyfunds.com.au.
The offer of securities by way of issue is contained in the prospectus and you should consider the prospectus in its entirety before deciding whether to acquire the
securities. If you wish to acquire securities under the offer you will need to complete the application form that accompanies the prospectus’.
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