ANIMA:from relative value toabsolute performance          Zurich, 26 June 2012          For professional investors only
Agenda ANIMA: who we are Our expertise on European equities From relative value to absolute performance AppendixFrom r...
ANIMA – Key factsLeading Italian asset management firm Over 35 bln Eur of Assets under Management* Largest independent m...
Agenda ANIMA: who we are Our expertise on European equities From relative value to absolute performance ConclusionsFro...
The European Equity investment team                                                       Experience   Experience w/ ANIMA...
ANIMA’s investment philosophy           Our beliefs                           What we do not            What we do        ...
Track record in European Equities – Ten years of over-performance                                       European Equity re...
Track record in European Equities – No style bias                                       European Equity return vs market (...
Idea Generation: Where do we look for alpha ?                                                       ANIMA’s investment   ...
Idea generation: Macro examples            Euro-crisis                                         Investment ideas    Auster...
Idea generation: Micro example                                              Snapshot                                      ...
Idea generation: Theme example – Mobile payments (1/2)               Mobile purchases               Mobile payments growth...
Idea generation: Theme example – Mobile payments (2/2)                                                   Snapshot         ...
Agenda ANIMA: who we are Our expertise on European equities From relative value to absolute performance AppendixFrom r...
ANIMA - Absolute “European Equity based” Funds                                                            2. HIGH POTENTIA...
High Potential Europe – Portfolio construction                                                             Same idea gener...
High Potential Europe – Example of long book investment                                                            Snapsho...
High Potential Europe – Example of dynamic hedging                      Equity Net exposure                            MSC...
High Potential Europe – Example of pairs trade                 Long SAB MILLER vs Short INBEV                             ...
Market Neutral Europe – Portfolio construction                                                                     Same id...
Market Neutral Europe – Exposure and performance                       Equity Net exposure                            MSCI...
Key take aways                           ANIMA has a distinctive approach on absolute return,                            ...
Agenda ANIMA: who we are Our expertise om European equities From relative value to absolute performance AppendixFrom r...
Anima group – Assets under Management 2011 Q3, 100% = 37 Bln Euro                                                         ...
Investment Team                Lars Schickentanz                Head of investments, mutual funds, Head of the European Eq...
Investment Team                Andrea Ferrari                Portfolio Manager (Europa PMI Alto Potenziale)               ...
Anima – Awards      ANIMA                            Best asset manager     Best “big” asset                              ...
Investment themes - ExamplesEnergy revolution                                          Demographic TrendsUS Energy self su...
High Potential Europe – Performance (1/2)High Potential Europe – Class I                                                  ...
High Potential Europe – Performance (2/2)High Potential Europe – Class I                                                  ...
Market Neutral Europe – Performance (1/2)Market Neutral Europe – Class I                                                  ...
Market Neutral Europe – Performance (2/2)Market Neutral Europe – Class I                                                  ...
This document is solely addressed to professional operators. It contains confidential and/or privileged information and it...
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Evento absolute citywire zurich

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Evento absolute citywire zurich

  1. 1. ANIMA:from relative value toabsolute performance Zurich, 26 June 2012 For professional investors only
  2. 2. Agenda ANIMA: who we are Our expertise on European equities From relative value to absolute performance AppendixFrom relative value to absolute performance 1
  3. 3. ANIMA – Key factsLeading Italian asset management firm Over 35 bln Eur of Assets under Management* Largest independent manager, 3rd mutual fund manager by AuM including i l di captive players ti l Operations in Italy (ANIMA Sgr), Ireland (ANIMA Asset Management), Luxemburg (ANIMA Man Co)Distinctive investment and product engineering capabilitiesDi ti ti i t t d d t i i biliti Over 50 investment/product development professionals In-house structuring team for formula funds ~3,5 bln Euro AuM in innovative products (absolute return and structured f d ) t t d funds)Unique distribution network Long-term partnerships with Banca Monte dei Paschi di Siena and Banca P B Popolare di Milano (shareholders of AM Holding – ANIMA’ l Mil ( h h ld f H ldi ANIMA’s parent holding company) 150+ distribution agreements with banks and financial advisors networks* Including Mutual funds and managed accountsSource: Anima, data as of 2011 Q3From relative value to absolute performance 2
  4. 4. Agenda ANIMA: who we are Our expertise on European equities From relative value to absolute performance ConclusionsFrom relative value to absolute performance 3
  5. 5. The European Equity investment team Experience Experience w/ ANIMA 1990 1995 2000 2005 2010 2012 Lars Schickentanz CIO, mutual funds Andrea Bianco Samuele Chiodetto Mathias Domini Over 100 years Luigi Dompè of cumulative investment Andrea Ferrari management experience Manuela Novati Lucio VignatiNote: Citywire ratings as of June 2012Source: ANIMA, Citywire From relative value to absolute performance 4
  6. 6. ANIMA’s investment philosophy Our beliefs What we do not What we do Dynamic portfolio NO buy and hold management  Short term market Short-term cycles  Clear NO style bias Tactical approach y accountability determines success Portfolio managers NO buy-side analysts  Debt > Equity = Analysts NO illiquid bets Liquidity is a mustFrom relative value to absolute performance 5
  7. 7. Track record in European Equities – Ten years of over-performance European Equity return vs market (GEO Europa gross return) + 3700 bp Ten years of p out-performingg the markets… 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 …as expressed -0,75% 3,68% 1,10% 2,47% 4,18% 3,96% 3,18% 9,94% 3,00% 2,33% - ALPHA by consistent -0,19 1,31 0,69 1,44 1,56 1,58 0,60 3,14 1,18 0,73 - IR Alpha and IR - - - 497% 374% 358% 442% 310% 287% 461% - TurnoverNOTE: Performance of Prima Geo Europa gross of fees and taxes; composite benchmark that accounts for changes in porfolio management: 31/12/01-24/11/02 (10% BofA Merrill Lynch Euro Currency 3-Month LIBIDAverage Coupon in EUR - Gross Total Return, 90% MSCI Europe in EUR - Price Index); 25/11/02-31/12/05 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross Total Return, 90% MSCI Europe in EUR - Price Index);01/01/06-27/12/07 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross Total Return , 90% MSCI Europe in EUR - Net Total Return); dal 28/12/07 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross TotalReturn , 90% MSCI Europe in EUR - Net Total Return)From relative value to absolute performance 6
  8. 8. Track record in European Equities – No style bias European Equity return vs market (GEO Europa gross return) + 3700 bp Ten years of p out-performingg the markets… 20% …in both Value Outperformance growth and value Growth outperf. phases MSCI EUROPE Value Vs MSCI EUROPE Growth ‐30%NOTE: Performance of Prima Geo Europa gross of fees and taxes; composite benchmark that accounts for changes in porfolio management: 31/12/01-24/11/02 (10% BofA Merrill Lynch Euro Currency 3-Month LIBIDAverage Coupon in EUR - Gross Total Return, 90% MSCI Europe in EUR - Price Index); 25/11/02-31/12/05 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross Total Return, 90% MSCI Europe in EUR - Price Index);01/01/06-27/12/07 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross Total Return , 90% MSCI Europe in EUR - Net Total Return); dal 28/12/07 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross TotalReturn , 90% MSCI Europe in EUR - Net Total Return)From relative value to absolute performance 7
  9. 9. Idea Generation: Where do we look for alpha ?  ANIMA’s investment approach relies on three pillars: Macro – Macro (top-down) – Micro (bottom-up) – Theme (analyis of megatrends and their impact on specific stocks) Micro ThemeFrom relative value to absolute performance 8
  10. 10. Idea generation: Macro examples Euro-crisis Investment ideas  Austerity  EU Telecoms / Utilities  Fear of Underweight (e.g. Telefonica, Enel) government intervention / regulation  Risks from high  Non-EU exposure (e.g. Overweight leverage BT, Severn Trent) Anima Market Flash – April 2012 [..] Europe: caution on defensive sectors (telecom, utilities) […]From relative value to absolute performance 9
  11. 11. Idea generation: Micro example Snapshot  Adidas is the second largest global athletic footwear and apparel vendor Investment thesis  We bought the stock because we forecast a double digit EPS g growth driven byy  Regional mix: profitability in China and Russia is higher than the group  Retail expansion (planning to open 500 net new stores by 2015) p y )  Reebok restructuring  Thanks to its leadership in football, Adidas should be able to capitalize more effectively than peers on the upcoming UEFA 2012From relative value to absolute performance 10
  12. 12. Idea generation: Theme example – Mobile payments (1/2) Mobile purchases Mobile payments growth (US$ bln) US Mobile ad spending (U$ mln) LTE / 3G SubscribersSource: Visionmobile, emarketerFrom relative value to absolute performance 11
  13. 13. Idea generation: Theme example – Mobile payments (2/2) Snapshot  €2,015 billion revenue 2011, 10,000+ employees  World leading supplier of SIM cards, software and services to mobile industry, e-passports, secure payment solutions Investment thesis • Ready for mobile financial services with a large portfolio innovations.In 2012 mobile payment and transfers are expected to be one of the killer application for smartphones.It will benefict from these structural strong trends: — Mobile Money — Money Mobile banking — Mobile paymentsFrom relative value to absolute performance 12
  14. 14. Agenda ANIMA: who we are Our expertise on European equities From relative value to absolute performance AppendixFrom relative value to absolute performance 13
  15. 15. ANIMA - Absolute “European Equity based” Funds 2. HIGH POTENTIAL 3. MARKET NEUTRAL 1. GEO EUROPA EUROPE EUROPE Approach Long Only Long/short equity Market Neutral MSCI Europe Investment Universe MSCI Europe Stoxx 600 (large cap bias) Long book Long book Performance engines Long Book Dynamic Hedge Hedging book (index Pairs Trade futures) Equity Gross Exposure - beetwen 60% and 80% beetwen 170% and 180% (average) Equity Net Exposure - -20% ; + 70% -5% ; +5% (range) Volatility Target (12 - 6% 2% months) Performance Target (12 - Positive Absolute Performance months) Portfolio liquidity - Max 2 days Max 2 days NAV Liquidity Daily Daily Daily Inception Date June 1997 January 2010 October 2009 AUM (as of 1° of June 1077 mln € 133 mln € 97 mln € 2012)From relative value to absolute performance 14
  16. 16. High Potential Europe – Portfolio construction Same idea generation process as for long-only Long equity funds, but with wider investable book universe due to smaller fund size Dynamic portfoglio D i f li Hedging hedging (through index Pairs futures) trade Long/short pairs (b L / h i (beta neutral)From relative value to absolute performance 15
  17. 17. High Potential Europe – Example of long book investment Snapshot S h  Leading Belgian cable operator, providing a range of TV, telephony and broadband communications services to residential and b i id ti l d business customers across Flanders and part of Brussels Investment thesis  Management seems confident on the th upper end of th company d f the growth guidance given the sales of triple play products above expectations, hence an increased likelihood of guidance revision  Top line acceleration driven by new agreement to upsell mobile services  Higher cash return sustainable Entry Point also in 2013 since the company will not pay taxes till 2016  ZIGGO IPO in Netherland brought huge interest in the cable business.From relative value to absolute performance 16
  18. 18. High Potential Europe – Example of dynamic hedging Equity Net exposure MSCI Europe High Potential – Cl. I Fukushima Greece Double dip Double dip, Italy, US Greek Spain fears debt ceiling referendumNote: Performance as of 31.05.12, net of fees – Data on daily basis – Source: ANIMA SgrFrom relative value to absolute performance 17
  19. 19. High Potential Europe – Example of pairs trade Long SAB MILLER vs Short INBEV SAB MILLER  SAB trading discount (historically at premium), at 8.6 EV/EBITDA vs 9.5 sector average  7.6 free cash flow yield, with superior growth profile 12 14% 12-14% over 2 years  Takeover candidate (INBEV & PEPSICO bidders)  15TH June FTSE Reweighting 7-8 78 DAYS buying demand index trackers INBEV  Massive outperformer YtD  Exposed to slowing brazilian consumer  4/5% FX downgrades due to real exposure (28% exposure)  Brazil tax hike (May 31st) above market expectations From relative value to absolute performance 18
  20. 20. Market Neutral Europe – Portfolio construction Same idea generation process as for long-only Long equity funds, but with wider investable book universe due to smaller fund size Hedging Static portfolio hedging (through index futures) Target net exposure +5%/-5%From relative value to absolute performance 19
  21. 21. Market Neutral Europe – Exposure and performance Equity Net exposure MSCI Europe Market Neutral – Cl. I Note: Performance as of 31.05.12, net of fees – Data on daily basis – Source: ANIMA SgrFrom relative value to absolute performance 20
  22. 22. Key take aways  ANIMA has a distinctive approach on absolute return, that leverages 10 years of consistently delivering overperformance on long-only products  Idea generation comprises a “traditional” macro/micro approach with thematic analysis  Portfolio managers are directly accountable for the whole performance (analysis and execution)From relative value to absolute performance 21
  23. 23. Agenda ANIMA: who we are Our expertise om European equities From relative value to absolute performance AppendixFrom relative value to absolute performance 22
  24. 24. Anima group – Assets under Management 2011 Q3, 100% = 37 Bln Euro Pension fund Individual portfolio management 6% 1% Institutional investors* 27% 66% Mutual funds / Sicav* Includes financial institutions investing in mutual fundsSource: Anima From relative value to absolute performance 23
  25. 25. Investment Team Lars Schickentanz Head of investments, mutual funds, Head of the European Equity desk Career highlights: 20 years of industry experience, started his career in Germany as an Assistant Portfolio Manager. Manager He then covered the same role in Prime Investment Management; in 1993 he became Lead European Portfolio Manager at Caboto Gestione, joined MPAM sgr (now merged in ANIMA Sgr) in 1998 where he became Head of investments in 2007. Degree in Economics from Friedrich Alexander Erlangen Nünberg University) Lucio Vignati Senior Equity Trader European Equity desk Trader, Career highlights: 15 years of industry experience, member of the buy side hedge funds desks at Pioneer Alternative and Newmann Ragazzi, sell side desks as Director European equity sales trader for 9 years at Lehman Brothers and Jp Morgan Andrea Bianco Portfolio Manager, European Equity desk Career highlights: more than 10 years of industry experience, started his career in Spazio Finanza Sgr, joined MPAM sgr (now merged in ANIMA Sgr) in 2001. Degree in Business Administration from the European School of Economics of Milan Mathias Domini Assistant Portfolio Manager, European Equity desk Career highlights: started his career in 2009 at Deutsche Bank AG as Assistant to the Head of Italian Equity Research for the Telecommunication segment, joined PRIMA sgr (now merged in ANIMA Sgr) in 2010. MS Degree in Finance f D i Fi from BBocconi U i i University i Mil i in Milan.From relative value to absolute performance 24
  26. 26. Investment Team Andrea Ferrari Portfolio Manager (Europa PMI Alto Potenziale) Career highlights: over 13 years of industry experience, started his career in 1998 at Spazio Finanza as analyst for both New Market and German Neuer Market. Joined MPAM sgr ( y g (now merged in ANIMA Sgr) in g g) 2001 as an assistant portfolio manager for Small Caps until 2005. After a short period at UBI Banca, in 2007 he -rejoined MPAM sgr. Degree from the European Business School of Paris. Manuela Novati Portfolio Manager (Euro Equity) Career highlights: over 13 years of industry experience. In 1998 started her career at Etra Asset experience Management as assistant of the European Equity Portfolio Manager. In 2005 joined Ras Asset Management as specialist of the Global Healthcare Sector. In 2007 started her experience in BPM Sgr (now Anima Sgr) as specialist of the European Financial Sector and since 2010 has been in charge of the Euro Equity Portfolios. Degree in economics from Bocconi University. Luigi D L i i Dompèè Portfolio Manager, CFA (Italia) Career highlights: 12 years of industry experience he joined Gruppo Banca Sella as Equity market analyst. He began working in MPAM Sgr (now PRIMA sgr) in 2005 first as Analyst, then as Assistant Manager. Graduation: in Economics with a specialization in Monetary Policy at the University of Turin. In 1999 CFA charterholder 1999, Samuele Chiodetto Portfolio Manager (Italia Alto Potenziale) Career highlights: 12 years of industry experience, joined ABN Amro Italy Sgr (now merged in ANIMA Sgr) in 2000 and he was involved in Portfolio Analysis and development of a prop. model of equity valuation prop valuation. Starting from 2004 he joined the Italian equity team as Junior Portfolio Manager. Since Jan 2010 he has been in charge of the PrimaStrategia Italia AltoPotenziale. Degree in Economics from Padua University.From relative value to absolute performance 25
  27. 27. Anima – Awards ANIMA Best asset manager Best “big” asset big Milano Finanza in Italy- 2011 manager 2010 Global Awards 2011 (16-25 funds) (awarded: 03/2011) Tripla A European Equity E i PRIMA Geo Europa PRIMA Geo Europa PRIMA Geo Europa PRIMA Geo Europa (Class A, Y) European Equity Best european fund in Best European Equity 2010 winner Italy - 2010 fundNote: Morningstar rating as of January 2012From relative value to absolute performance 26
  28. 28. Investment themes - ExamplesEnergy revolution Demographic TrendsUS Energy self sufficiency Productivity/potential growth rates (how many in theThe US is moving towards energy self sufficiency via the “young” generation relative to the “old” generation).development of shale oil and gas fields as well as NGLsubstitution. Tax revenues and expenditures and hence budget balances (e.g. resources toward health care).Global LNG Global gas price and supply costdifferentials point towards North America as a major Patterns of consumer spending linked to population agenew source of LNG supply g pp y growth over the next 3 y years. structure is – e.g. demand for assets for retirement g savings.Deepwater findings Migration patternsEmerging market consumer De equitisation De-equitisationThe driver of the consumption boom is the growth of the Companies returning capital to shareholders throughmiddle class in the fast growing Asia. The number of buybacks and dividends.households with an annual income of at least $10,000USD per annum in India and China combined is likely to The financial logic for companies to retire equity and de-exceed that in the US from 2011 on and that in all of equitise is clear - the cost of equity is unusually high,Western Europe 2 or 3 years later. while the cost of debt or cash is unusually low.•Consumption shifts from essentials towarddiscretionary By selling debt and buying equity, companies are picking•Increase of protein consumption as % total diet up a 250 basis point carry.•International versus local brands•Public versus private: healthcare and educationFrom relative value to absolute performance 27
  29. 29. High Potential Europe – Performance (1/2)High Potential Europe – Class I Performance Volatility14/1/2010 = 100 Since +7,7% 6.6% inception 2010 +10.2% 6.0% 2011 -2.1% 6.9% 6 moths -0.23% 3 months -3.60% 1 month -1.17%Note: Performance as of 31.05.12, net of fees – Data on daily basis – Source: ANIMA SgrFrom relative value to absolute performance 28
  30. 30. High Potential Europe – Performance (2/2)High Potential Europe – Class I 1 YEAR MAXIMUM GAIN +2.56% MAXIMUM LOSS -3.29% S SHARPE RATIO O -0.21 0. 2 YEARS MAXIMUM GAIN +3.37% +3 37% MAXIMUM LOSS -3.29% SHARPE RATIO 0.12Note: Performance as of 31.05.12, net of fees – Data on daily basis – Source: ANIMA SgrFrom relative value to absolute performance 29
  31. 31. Market Neutral Europe – Performance (1/2)Market Neutral Europe – Class I Performance Volatility10/09/2009 = 100 Since +8.02% 3.1% inception 2010 +7.19% 3.1% 2011 +5.43% 3.0% 6 moths -0.31% 2.0% 3 months -0.07% 1.5% 1 month -0.21% 1.3%Note: Performance as of 31.05.12, net of fees – Data on daily basis – Source: ANIMA SgrFrom relative value to absolute performance 30
  32. 32. Market Neutral Europe – Performance (2/2)Market Neutral Europe – Class I 1 YEAR MAXIMUM GAIN +2.07% MAXIMUM LOSS -0.32% S SHARPE RATIO O 0.38 2 YEARS MAXIMUM GAIN +2.07% +2 07% MAXIMUM LOSS -1.64% SHARPE RATIO 0.27Note: Performance as of 31.05.12, net of fees – Data on daily basis – Source: ANIMA SgrFrom relative value to absolute performance 31
  33. 33. This document is solely addressed to professional operators. It contains confidential and/or privileged information and it is intendedfor internal use. It cannot be disclosed to third parties and/or distributed to the public. This is an informative report and its content is notintended and cannot be used as advertising for the placement of any fund managed by ANIMA Sgr. The Company assumes the hereby giveninformation as accurate and reliable, but it does not guarantee its precision and it shaIl not therefore be liable for its use by the addressees.
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