Devon Funds Management
Devon Webinar November 2017 Global growth In recovery mode
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Source: UBS Global growth Bubbles? Nothing to see here….
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Source: Craigs IP NZ Tech – Serko Business improving but price response has been extraordinary
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Source: IRESS NZ Tech Strong performance overall but some notable laggards
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12 month return (%)
500
400
300
200
100
0
-100 Serko Pushpay EROAD Xero Vista Orion Group Health Source: IRESS Vista Group China presents an interesting opportunity
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Box Office - US$bn Vista Cinema sites 12 7000
10 6000
8 5000
6 4000
4 3000
2 2000 1000 0 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 0 US China CY9 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17
Source: company data Fletcher Building Valuation attractive but plenty of uncertainty
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30
700 25.5 25 24.0 600 21.0 21.0 500 20.5 20 18.5 400 14.5 300 15 12.0 200 11.0 11.0 9.5
100 12m (x) forward P/E 10 8.5 0 Justic Precint NZICC Auckland East Commercial 5 Prison Bay Current estimate Project value 0 FBU* MPG MVN STU ABC BLD CSR DLX GWA JHX REH RWC
*Underlying P/E Source: Forsyth Barr, Stats NZ Devon Funds Management Devon Trans-Tasman Fund – Portfolio Snapshot
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Stock Name Country Holding BHP AU 5.5% Cash, 3.1% Contact Energy NZ 4.9%
ANZ AU 4.7%
National Australia Bank AU 4.5%
Spark New Zealand Limited NZ 4.4% Australia, New Zealand, 51.6% 45.3% Fletcher Building NZ 4.3%
Fisher & Paykel Healthcare NZ 4.0%
Westfield AU 4.0%
Vista Group NZ 3.6%
Meridian Energy Limited NZ 3.5%
GTN AU 3.4%
Trade Me NZ 3.3%
Resmed AU 3.2%
Brambles AU 3.1%
Janus Henderson AU 2.8% Devon Alpha Fund Current portfolio positioning 9 Top Holdings Asset allocation Company Name Country % Fund
Westfield AU 7.9% Cash, 29% Contact Energy NZ 7.6% Australia, Vista Group NZ 7.1% 43.0% Fletcher Building NZ 6.0%
GTN NZ 5.6%
Resmed AU 5.1%
Brambles AU 5.0% New Zealand, BHP AU 5.0% 28.0% Janus Henderson AU 4.0%
Scottish Pacific AU 3.9%
Spark Infrastructure AU 3.8%
Z Energy NZ 3.3%
Super Retail AU 2.9%
Serko NZ 2.2% 10
This document is not a Product Disclosure Statement (PDS) under New Zealand law or under any other law. It is for information purposes only and contains summarised information. Accordingly, this document neither purports to be exhaustive nor contains all of the information which a prospective investor or the recipient may require to make an investment decision. This document does not contain all of the information which would otherwise be required by New Zealand law or any other law to be disclosed in a PDS or similar disclosure document required under foreign law. Prospective investors should inform themselves as to any applicable legal requirements and taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant. A PDS for the fund/s mentioned in this presentation is available free from Devon Funds Management Limited. Investors should read and understand the PDS for the relevant fund(s) in which they invest and satisfy themselves they understand all the terms and conditions of investment in the fund/s. The information in this document is not intended to be advice. In preparing this document, Devon Funds Management Limited did not take into account the investment objectives, financial situation and particular needs of any particular person. Devon Funds Management Limited recommends that potential investors consult their financial adviser and obtain professional financial advice on their individual requirements before making any investment decisions. Past performance is not indicative of future results. Investments in any of the Devon Funds are subject to investment risk, including possible delays in repayment and loss of income and capital invested. Neither Devon nor any related company of Devon, guarantees any particular rate of return on, or the performance of, the Devon Funds, nor do they guarantee the repayment of capital from the Devon Funds.