latileta qoro chief executive officer presentation - nadi chamber of commerce & industry...
TRANSCRIPT
Latileta QoroChief Executive Officer
INVESTING the
SMART WAY
Presentation - Nadi Chamber of Commerce & Industry Business Forum
25th October,2015.
Disclaimer
The information provided in this presentation is for general purposes only and is not intended to provide investing, tax, business, financial or legal advice to any individual or entity. This information has been prepared by the South Pacific Stock Exchange and is provided in good faith and is derived from sources believed to be accurate and reliable at the time of presentation. Financial, legal and other expert advice from competent professionals should be sought.
Outline
SPSE – What do we do?
Market Players – Who are they?
Investors:
• Investment Options
• Current Market Returns
Issuers
• Listing Requirements
4
SPSE - Overview
17 listed companies• 18 listed
securities
• 18,778 resident investors
• 573 non-resident.
4 securities boards• Main Board
• Restricted Board
• Fixed Interest Securities Board
• BondsSPSE
• Regulate – investors/issuers
• Develop
• 7 Staff
• Electronic Trading
• Central ShareRegistry Ltd
• Funded by various Fees and Government grant
• 8 member Board
• Licensed & Regulated by RBF
Clients – Investors and Issuers
5
Market Players
10 Investment Advisory
Firms/Individuals
INVESTORS (Savers)
6
What does Fiji’s Stock Market Offer?
Investment Benefits:• Tax-free dividends for residents & Non-residents• No CGT on gains made• Supplements retirement income (superannuation)• Good hedge against inflation• Tradability - a ready market available• Expert advice available from licensed stockbrokers• Regulated – SPSE & RBF
7
INVESTMENT OPTIONS Shares & Convertible Notes
(i) Yield/Income Securities (ii) Growth Securities
Investors – Options & Benefits?
8
Market ReturnsAverage Total Return (TAX FREE) – 10.5% (6.4% capital growth, 4.1% dividend)
Inflation: 1.5% Average Fixed Income Rate: 1-3.5% Viti Bonds: 4-5%
SecuritySecurity Prices
Capital Growth (%)
Income Yield (%)
Total Market Return (%)Sep-15 Dec-14
APP 0.90 0.70 28.6% 4.4% 33.0%ATH 1.08 0.97 11.3% 8.3% 19.7%CFM 4.13 4.10 0.7% 3.1% 3.9%FFF 0.79 0.79 0.0% 0.0% 0.0%FIL 0.72 0.63 14.3% 5.6% 19.8%
FMF 0.68 0.63 7.9% 1.8% 9.7%FTV 2.40 2.30 4.3% 0.0% 4.3%KGF 0.41 0.30 36.7% 0.0% 36.7%PBF 11.05 10.01 10.4% 0.5% 10.8%PBP 1.00 1.00 0.0% 3.0% 3.0%PGI 1.00 2.00 -50.0% 6.0% -44.0%RBG 3.03 2.83 7.1% 4.6% 11.7%RCF 3.55 2.90 22.4% 7.0% 29.5%TTS 3.05 3.05 0.0% 3.3% 3.3%VBH 3.30 3.16 4.4% 4.2% 8.7%FHL 4.05 3.50 15.7% 5.4% 21.1%BCN 7.12 7.08 0.6% 9.2% 9.8%FFFN 1.02 1.02 0.0% 7.4% 7.4%
AVERAGE 6.4% 4.1% 10.5%
ISSUERS/COMPANIES
9
What does Fiji’s Stock Market Offer?
10
What can companies gain?
Capital Raising Platform
Exit Strategy
Corporate Discipline (Reporting, Governance)Tax Savings/Incentives
Elevate Profile
11
More on Incentives…
Tax
10% Corporate
tax
CGT Exemption
- Restructure
No Dividend
WHT - non-resident
Tax free Dividend – Resident
150% deduction
12
FREQUENT ASKED QUESTIONS
Why no listing?
What can you list?
Outlook?
• Incentives - Application v. Implementation• S11 of ITA - RB Patel Case
• Cash is ‘cheap’
• Parent;• Subsidiary; or• Set-up separate company
• STRONG BUY preference ;• Further Capital Gain
expected.
The Immediate Future
13
RebrandingCloud-based Shareholder Registry
Corporate Investor Education Sessions (FoC)
National Listing Forum
1 Listing
Regional Expansion (Dual Listing etc)
VINAKA VAKALEVU!
14
Where can you obtain further Information?
15
• Contact BrokersKontiki Stockbroking Ltd (KSB)
Tel No : 3307 284 Email: [email protected] FijiStock Brokers Ltd (FSB)
Tel No : 3304 675 Email: [email protected] Stockbrokers Ltd (FHS)
Tel No : 3307 025 Email: [email protected]
• SPSE website: www.spse.com.fjTel No : 3304 130Email: [email protected]
16
MAJOR REQUIREMENTS
Public Company
>$1m Market Cap
3 Years Operations
Audited FS - recent 3 years
20% Public Shareholding
AoA
Fit & Proper Board
Substantially same
Management
Prospectus
17
Sectoral Representations
4.45%
0.54%
50.31%
9.23%26.32%
5.06%
2.22%
1.86%
Market Capitalisation by Sector
Investment Insurance
Telecommunications/Media Retail
Manufacturer & Wholesalers Automotive
Banking Forestry