PAC - Pacific Current Group

Re: TRG - Treasury Group

robusta said:

I had a buy order in fir TRG a couple of years ago for about $3.75

They have just announced a merger with Northern Lights a US based funds management business.

http://www.asx.com.au/asxpdf/20140805/pdf/42r8t7z0jsz5c1.pdf

SP is now $10.43

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bought a chunk of these in May 2013 for $6.34 per share to go into my low income wifes portfolio, and happy so far with the return at better than 10% on investment just in dividend and FCredits alone. No dilution with tax as she does not earn enough yet but her portfolio is now pushing her to the edge of the tax free threshold. Think i will continue to hold for a while yet. Nice dividend annonced yesterday as well at 27 cents which is 4 cents higher than the corresponding period last year

Re: TRG - Treasury Group

skc said:

I remember looking at them around that level as well. It was the low liquidity that turned me off.

As a longer term investor who attempts to capture large moves (hopefully in the right direction), it's worth following the mantra "Don't be a dick for a tick" a lot of the times.

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Yep from memory missed my buy price for the sake of a few cents.

agumby said:

bought a chunk of these in May 2013 for $6.34 per share to go into my low income wifes portfolio, and happy so far with the return at better than 10% on investment just in dividend and FCredits alone. No dilution with tax as she does not earn enough yet but her portfolio is now pushing her to the edge of the tax free threshold. Think i will continue to hold for a while yet. Nice dividend annonced yesterday as well at 27 cents which is 4 cents higher than the corresponding period last year

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Well done I looked at them again in the high $5's and thought better opportunity elsewhere. This sort of business has great leverage when the FUM grows.

Re: TRG - Treasury Group

Came up on my scan tonight.

On October 23rd, 2015, Treasury Group Ltd (TRG) changed its name and ASX code to Pacific Current Group Limited (PAC).

I added PAC to the portfolio last week at 3.95

http://paccurrent.com/

PAC owns 65% of the Aurora Trust, the Trust part or wholly owns a portfolio of 18 boutiques fund managers located in the US, Europe, Aust, India and Singapore, the SP has been falling due to non recurring write downs that have come about because of a sizable reduction of FUM in a few of their funds.

The SP fall was probably accelerated by the September index re-balance, PAC being dropped from the ASX300, i understand that there is evidence of a shift away from active funds to passive index type funds, most of the ASX listed fund managers have seen their SP fall or go sideways over the last 12 months or so.

Only 28 million shares, market cap of 108 million, Aggregate FUM over 50 Billion A, Trust has 30M in cash and 25M in debt, the last cap raising in early 2015 was at $10.25
~

So_Cynical said:

I added PAC to the portfolio last week at 3.95

http://paccurrent.com/

PAC owns 65% of the Aurora Trust, the Trust part or wholly owns a portfolio of 18 boutiques fund managers located in the US, Europe, Aust, India and Singapore, the SP has been falling due to non recurring write downs that have come about because of a sizable reduction of FUM in a few of their funds.

The SP fall was probably accelerated by the September index re-balance, PAC being dropped from the ASX300, i understand that there is evidence of a shift away from active funds to passive index type funds, most of the ASX listed fund managers have seen their SP fall or go sideways over the last 12 months or so.

Only 28 million shares, market cap of 108 million, Aggregate FUM over 50 Billion A, Trust has 30M in cash and 25M in debt, the last cap raising in early 2015 was at $10.25
~

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Hi So Cynical,
I've always respected your posts and from what I can gather your a long term value investor.

Given the bearish trend, do you have a stop loss in place; even though youve conducted significant analysis?
(Apologies for spelling errors / typed on phone)

Thanks,

mcgrath111 said:

Hi So Cynical,
I've always respected your posts and from what I can gather your a long term value investor.

Given the bearish trend, do you have a stop loss in place; even though youve conducted significant analysis?

Thanks,

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Im not a true value type investor, contrarian is more accurate i think, significant analysis dont think so, i just like to have an idea of what im dealing with, almost everything i buy is in a down tend or going sideways after a down trend, no stops, when im in im in, 4 out of 5 are winners within 12 months.

PAC was one of 5 choices and on the day it was the only one to fall so turned out to be the one i bought, coincidentally the other 4 have all bounced...anyway time is my friend, PAC is a solid business.

So_Cynical said:

PAC was one of 5 choices and on the day it was the only one to fall so turned out to be the one i bought, coincidentally the other 4 have all bounced...anyway time is my friend, PAC is a solid business.

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It seems you made the right choice mate, seem to pick the bottom perfectly.

mcgrath111 said:

It seems you made the right choice mate, seem to pick the bottom perfectly.

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Complete accident of course though i have found that bottoms can be captured if one tries...noticed that all the 10 or so stocks i was watching for an entry have bounced, a little all (contrarian) boats rising perhaps. :dunno:

Added PAC to my long term holdings. Bought in at 4.04, I'm seeing a good resistance level at $4.

On a positive note I like the volume from a sell side; large gaps between bid & offer.

So_Cynical said:

(18th-September-2016) I added PAC to the portfolio last week at 3.95

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Out today for a small profit, i have developed fund manger cold feet.

So_Cynical said:

Out today for a small profit, i have developed fund manger cold feet.

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I was going to post the same thing!, although I split my allotments, so I went out almost neutral.

PAC is still not the most transparent of companies but some steps taken forward. FUM growth has been good recently and PPT is increasing holding but no idea if it's just as custodian or they might be thinking of buying some FUM growth for themselves.

PAC featuring with the new IPO coming .... some retail available through CommSec


GQG soon to list; the biggest IPO this year.

Company was co-founded by our Executive Chairman and CIO Rajiv Jain and CEO Tim Carver in June 2016. Tim Carver has extensive experience in establishing and growing investment boutiques with a differentiated proposition for clients, having immediately prior to co-founding GQG, served as CEO of ASX-listed Pacific Current Group, a multi-boutique asset manager.

Pacific Current Group was an early backer of the soon-to-IPO GQG, investing $2.7 million early on and will own 4 per cent of GQG common stock following the listing. The value of the stake would be $260 million, or roughly two thirds of the Pacific Current share price, which rose 8 per cent on Friday following news of the GQG listing.

The links between Pacific Current and GQG help to explain the decision for the Florida-based asset manager to list in Australia. Pacific Current formed from a merger between Australia-based Treasury Group and Seattle-headquartered Northern Lights Capital. Tim Carver, the former chief executive of Pacific Current who co-founded Northern Lights, is the GQG chief executive.

As well, Paul Greenwood,current chief executive and CIO of Pacific Current, has agreed to join the GQG board.

Another reason for the ASX listing for GQG is the attractive valuation comparison to local fund managers, specifically Pinnacle Investment Management and Magellan Financial Group.

As GQG looks for growth, it states in the prospectus :

Prior to our launch, we have successfully expanded our client base into new geographies. We expect to continue to experience growth in certain geographies such as Canada and the Gulf region. In particular, we have invested heavily in building our presence in Australia with a dedicated team and fund infrastructure to benefit from the superannuation system and long term investor focus that make Australia a key market globally for the asset management industry.

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PACIFIC CURRENT GROUP HALF YEAR RESULTS
Six months ended 31 December 2022
SYDNEY (24 February 2023) - Pacific Current Group (ASX: PAC, “Pacific Current” or “Company”) is pleased
to report the Company’s interim results for the six months ended 31 December 2022.
HIGHLIGHTS
• FUM grew 3.5% to A$175b. PAC boutiques have now had 24 consecutive quarters of positive net
flows
• Management fee-related revenues increased 52% (67% AUD) and, ex mark-to-market (MTM)
adjustments, boutique contributions grew 29% (41% AUD)
• Underlying EBITDA (ex MTM) grew 24% (35% AUD)
• Underlying NPAT declined 12% (3% AUD), due to increased interest expense
• Secured new US$50m credit facility
• Fully franked interim dividend of A$0.15 per share
FINANCIAL RESULTS
PAC’s 52% (67% AUD) increase in management fee-related revenues led to boutique contributions (ex
unrealised MTM adjustments) growing 29% in USD (41% AUD). The period-over-period growth primarily
came from the investment of Banner Oak in January 2022 and the recognition of 6 months of GQG
contributions versus 4 months in 1H22. Underlying EBITDA (ex MTM) grew 24% (35% AUD). Underlying
NPAT declined 12% (3% AUD), largely as a result of increased interest expense associated with PAC’s new
debt facility.
Performance fees from Victory Park, SCI and Roc were significant during the current half year though lower
than 1H22, which were driven primarily by the crystallisation of Victory Park incentive fees. Commissionrelated revenues were down due to a reduction in private capital strategies in market fundraising during
the period.
Aggregate FUM grew 3.5% and FUM (ex GQG) increased 5%. PAC’s aggregate portfolio has now
experienced 24 consecutive quarters of new inflows. Over the last 18 months PAC’s boutiques (ex GQG)
have secured approximately A$8b in gross new commitments.
During the period, PAC secured a US$50m credit facility from Washington H. Soul Pattinson. It drew
US$30m on the facility but did not deploy it as a result of terminating a prospective investment in its late
stages.
DIVIDEND
PAC declared a fully franked interim dividend of A$0.15 per share, which was the same as 1H22.
ASX ANNOUNCEMENT
Page 2 of 3
PORTFOLIO COMPANY HIGHLIGHTS
Within the broader world of long-only equity managers, GQG had a remarkable year, differentiating itself
through exceptional investment performance and continued strong net inflows. In addition to GQG,
Pennybacker, Proterra, and Roc secured significant new commitments during the period, despite a general
slowing in activity among institutional allocators.
Also, during the period PAC sold its interest in Blackcrane back to management and retired its Nereusrelated liability.
OUTLOOK
PAC management expects strong continued growth in the combination of both management fee-related
revenue and performance fee-related revenue for the following reasons:
• Increased management fees from firms that are actively raising capital or deploying recently raised
capital
• An increasing number of funds/strategies will be nearing the point at which the expected
performance fees PAC receives should accelerate notably
• New commitments / inflows expected to continue at a pace similar to the last six quarters
• Additional investments likely in 2H23
• Elevated chance of some liquidity in PAC’s portfolio
According to PAC CEO Paul Greenwood, “Our portfolio performed well during 1H23. While the market
environment was less than ideal, we saw strong inflows across the portfolio that appear likely to continue
through the rest of 2023.” Mr. Greenwood added, “In a year of negative equity markets, our private
capital-centric business model allowed PAC to grow and avoid the FUM and revenue contraction that many
traditional investment firms experienced.”
ASX ANNOUNCEMENT
Page 3 of 3
CONFERENCE CALL
Pacific Current Group (ASX: PAC) would like to invite you to join our conference call to be held at 9:00am (AEDT) on
Friday, 24 February 2023.
The presenters will be Paul Greenwood, MD & CEO and CIO and Ashley Killick, CFO.



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DYOR

i hold PAC

has been a confidence tester for me

Strategic Transaction Update

Pacific Current Group Limited (ASX: PAC)(Pacific Current) notes that it was informed by Regal Partners Limited (ASX: RPL) (Regal) on 28 September 2023 that it was formally withdrawing its unsolicited, nonbinding, indicative proposal (Proposal) to acquire all of the ordinary shares in PAC by way of a scheme of arrangement.

As announced on 26 July 2023, the Independent Board Committee (IBC) has been conducting a process to explore its strategic alternatives to maximise value for all shareholders
It has appointed UBS Securities Australia Limited to assist with the process and to evaluate any proposals received from a broad range of potential acquirers.
All participants in the process have been treated consistently, including with respect to access to due diligence information, the IBC, the PAC management team, and PAC’s portfolio companies.

The IBC is continuing with the process and will make an announcement when completed.


i sold mine on-market , a bit over a week ago ( i decided the current offer didn't suit me )

hmmm .. do i buy back in the dip ( if any ) i wonder ??