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RYDER CAPITAL LIMITED Net Asset Value 2020
65742_rns_2020-10-11_88721ca3-9916-4179-ba44-0fd6d26f20eb.pdf
Net Asset Value
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Net Tangible Asset & Monthly Investment Report
As at 30 September 2020
Investment Performance Key Information
| 3 Months(%) | 6 Months(%) | 1 Year(%) | 3 Years(% p.a.) | 5 Years(% p.a.) | Since Inception(4)(%) | Since Inception(4)(% p.a.) | |
|---|---|---|---|---|---|---|---|
| Gross Portfolio Performance | 14.27 | 40.39 | 16.91 | 21.29 | 21.01 | 159.52 | 21.01 |
| Pre-tax Undiluted NTA Return(1) | 8.47 | 30.87 | 10.16 | 15.14 | 15.53 | 105.84 | 15.53 |
| Pre-tax NTA Return(2) | 8.05 | 30.35 | 9.89 | 12.08 | 13.69 | 89.95 | 13.69 |
| Hurdle(RBA Cash Rate + 4.25%) | 1.12 | 2.23 | 4.74 | 5.36 | 5.59 | 31.25 | 5.59 |
| Excess ReturnPre-tax Undiluted NTA Return(1) -(RBA Cash Rate + 4.25%) (3) | 7.36 | 28.64 | 5.42 | 9.78 | 9.94 | 74.59 | 9.94 |
1. Pre-tax NTA return adjusted for the dilution of the exercised 26.7m RYDO options and 1.7m RYDOA options.
2. Unaudited investment performance less all costs of operating Ryder Capital Ltd including investment management and performance fees and ignoring the dilutionary impact of unexercised outstanding RYDOA options.
3. Excess Return will be calculated with reference to undiluted NTA return as of February 2019 to better reflect underlying fund performance consistent with the Manager's performance measurement.
4. Inception Date is 22 September 2015.
Investment Commentary
Pre-tax NTA decreased by 7.95 cents to $1.7400 net of the 3.0 cent FY20 fully franked final dividend paid during the month resulting in a decrease of 4.29%.
Nominal and relative performance lagged during September led by declines in Betmakers Technology Group Limited, Cash Converters Intl Limited and SRG Global Limited, primarily driven by profit taking after recent strong gains. The broader Portfolio continues to perform well with upcoming AGM commentary expected to provide support to selected core positions.
Monthly activity saw us add to our position in BCI Minerals Limited via a rights entitlement, together with a handful of opportunistic additions to existing holdings. We continue to be active trimming several smaller positions on valuation grounds.
Updater Inc. reported on their June quarter, which despite being somewhat belated, provided insight to operational progress and commentary around a nearer term liquidity event which, if executed, would provide an opportunity to review the carrying value.
Cash holdings decreased on a nominal basis to $14.2m from $21.2m after the payment of $2.7m in FY19 tax, the $1.8m Ryder FY20 final dividend and $2.5m of capital deployed. On a relative basis cash fell from 18.44% to 13.20%, noting an exposure of 5.8% in 3P Learning Limited which is subject to a recommended takeover and as such is considered a cash proxy taking cash/ cash proxy to 19.01%.
September 2020 marks the 5th anniversary since the listing of Ryder Capital Limited providing for an addition to the performance table to now include 5 years.
Investment Strategy & Objectives
- Absolute return, value driven fundamental approach
- Exceed RBA Cash rate + 4.25% p.a. over the medium to longer term
- Concentrated portfolio
- ASX listed small/micro cap focus
- Medium to long term capital growth
About Ryder Capital Limited
Ryder Capital Limited (Company) was listed in September 2015 and is managed by Ryder Investment Management Pty Limited (Manager) a Sydney based boutique fund manager pursuing a high conviction value driven investment strategy specialising in small to mid-cap Australasian equities. The Manager's approach is differentiated by investing for the medium to longer term; being aligned as significant shareholders in the Company; and being focused on generating strong absolute returns first and foremost. A key foundation to the Manager's success to date has been to minimise mistakes, ignore the crowd and back their judgement.
| ASX Code | RYD | ||
|---|---|---|---|
| Date of Listing | 22 Sep, 2015 | ||
| Gross Assets | $107.76m | ||
| Market Cap | $93.63m | ||
| Share Price | $1.55 | ||
| NTA Pre-Tax | $1.7400 | ||
| NTA Pre-Tax Fully Diluted* | $1.6696 | ||
| NTA Post-Tax | $1.5865 | ||
| NTA Post-Tax Fully Diluted* | $1.5611 | ||
| Shares on Issue | 60,409,223 | ||
| Secondary Options | 25,080,173 | ||
| ASX Option Code | RYDOA | ||
| RYDOA Strike Price | $1.50 | ||
| RYDOA Expiry | 10 Dec, 2021 |
*Based on unexercised outstanding 25.1m RYDOA options with strike price of $1.50
Portfolio Asset Allocation
Investment Team
Peter Constable Chairman and Chief Investment Officer
David Bottomley
Portfolio Manager / Director
Lauren De Zilva Analyst
Contact
Address Level 25, 88 Phillip Street Sydney NSW 2000
Phone +61 2 8211 2791 Fax +61 2 8211 0570 Email [email protected] www.rydercapital.com.au ABN 74 606 695 854 AFSL 328 971