PAC - the good, bad and ugly, page-4

I enjoy highlighting elements undervalued by market, will continue to do until fully recognised by market.

Here is a summary of key points from the Investor Call:
- The team ran through the presentation, with the following points:
- The US office in Seattle has moved. This will contribute $200k in annual savings.
- Further acquisitions are on the table, but there is nothing imminent. Preference is to look for Private Capital businesses
- EAM and Blackcrane growth significant contribution, other than GQG/Aperio.
- Organic growth strong at 27% this year

Q&A:
- Seizert Capital is a significant contributor to the bottom line
- Rapid growth is sustainable in the growth boutiques, anticipate seeing further increases
- NLAA contribution will always be lumpy, typically earnt once per annum. Revenue / Contributions to earnings for NLAA will not be reported during the year due to this
- RARE provided a higher dividend than anticipated
- Goodhart / FIM / ROC contributed Earnings due to higher growth in FUM. This will continue in future years, specifically pointed out that FIM + ROC contributed $500k, more than expected.
- Blackcrane and other Growth Boutiques expected to report earnings in the Millions next year, up from $300k (already 300% growth). Later on the call, GQG is anticipated to contribute $2-$3 Million in revenues (10% contribution on top of this years revenue figure of $35 Million).
- Tax rate is expected to be less than 10% in Australia, roughly $3 Million, down from $5.7 Million this year. US Tax bill anticipated to be $US1 Million in 2019.
- Cautioned costs are exceptionally low this year due to not paying bonuses to staff, costs are still expected to decrease, however may contain additional commission costs.

Best of Luck
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