Oyster global high dividend october 13

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Oyster global high dividend october 13

  1. 1. October 2013 OYSTER Global High Dividend Welcome to HiDi Land! For professional, qualified and institutional investors only © 2013 OYSTER Funds
  2. 2. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Highlights  Return from dividends is a large part of long term total equity returns  Unique process combining quantitative screening and fundamental analysis  Focus on quality companies with robust and growing dividend yields  Well diversified portfolio across sectors, regions & market caps  Aims to offer income & capital gains and a yield above MSCI ACWI Net USD October 2013 Page 2 A strategy aimed at delivering an optimal total return via quality companies paying robust, growing dividends
  3. 3. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Table of contents October 2013 Page 3 The case for high dividend stocks Investment philosophy and process Investment team Portfolio review Fund key facts The SYZ & CO Group I II III IV V VI 4 12 21 24 34 36
  4. 4. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Table of contents October 2013 Page 4 The case for high dividend stocks Investment philosophy and process Investment team Portfolio review Fund key facts The SYZ & CO Group I II III IV V VI 4 12 21 24 34 36
  5. 5. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Dividends are a key component of long term return Reinvesting dividends improves total return Dividend growth is a crucial part of long term return, alongside dividend yield Source: Elroy Dimson; Paul Marsh and Mike Staunton; Triumph of the Optimists; authors’ updates Source: MSCI, Société Générale Breakdown of real return since 1970 Past performance does not guarantee or predict future performance. Reference to an index is made for comparison purposes only. October 2013 Page 5
  6. 6. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Why focusing on dividends? Source: UBS  Dividends:  are more stable and predictable than earnings …  are paid in cash and thus are not prone to accounting tricks …  force companies to be disciplined with their capital allocation Source: UBS Past performance does not guarantee or predict future performance October 2013 Page 6
  7. 7. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Dividend yields are attractive vs. fixed income yields Current environment is supportive October 2013 Page 7 Dividend payouts are below their long term average (as % of five year trend in earnings) Source: Thomson Reuters Datastream 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 20 30 40 50 60 70 80 90 World US UK Euro-Zone Japan Source: Thomson Reuters Datastream 8 6 8 8 9 0 9 2 9 4 9 6 9 8 0 0 0 2 0 4 0 6 0 8 1 0 1 2 0 2 4 6 8 1 0 1 2 U S e q u itie s U S Tr e a s u r ie s U S IG c o r p o r a te b o n d s U S 3 M c a s h ( T- Bills ) So u r c e : Th o ms o n R e u te r s D a ta s tr e a m
  8. 8. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. October 2013 Page 8 No obvious correlation with interest rates... Source: Bernstein High Dividend Yield vs. Non-paying companies Historical Price-to-book valuation with US 10-year Treasury yield 1965 – 23.09.2013 0% 2% 4% 6% 8% 10% 12% 14% 16% 0.4x 0.5x 0.6x 0.7x 0.8x 0.9x 1.0x 1.1x Jul-65 Jul-69 Jul-73 Jul-77 Jul-81 Jul-85 Jul-89 Jul-93 Jul-97 Jul-01 Jul-05 Jul-09 Jul-13 US10-YearTreasuryyield Relativevaluationmultiple Price-to-Book 10-Year US Treasury
  9. 9. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. -0.4 -0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 30 40 50 60 70 Jun-95 Jun-97 Jun-99 Jun-01 Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 US ISM PURCHASING MANAGERS INDEX (MFG SURVEY) SADJ (MSCI World High Dividend TR USD / MSCI AC World TR USD) Rolling 1Y October 2013 Page 9 ...or with economic cycles… (MSCI World High Dividend TR USD / MSCI AC World TR USD) Rolling 1Y vs. ISM US Source: Thomson Reuters Datastream Correlation -0.26 R Square 0.07 Observations 207 Regression Statistics
  10. 10. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Long term outperformance of high dividends strategies Source: Société Générale Past performance does not guarantee or predict future performance. Reference to an index is made for comparison purposes only High dividend yield rolling relative performance (World ex-US benchmark, High Yield versus market cap weighted index) High dividends outperformance High dividends underperformance October 2013 Page 10 -20 -10 0 10 20 30 40 50 Dec-77 Dec-80 Dec-83 Dec-86 Dec-89 Dec-92 Dec-95 Dec-98 Dec-01 Dec-04 Dec-07 Dec-10 Annual Three year (annualised rate)
  11. 11. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Picking the highest estimated dividends may be risky Source: Société Générale Past performance does not guarantee or predict future performance. Reference to an index is made for comparison purposes only Beware of expectations Forecasts and realised dividend yields since 1995 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% < 4% 4%-5% 5%-6% 6%-7% 7%-8% 8%-9% 9%-10% 10%-15% 15%-20% Estimated dividend yield (%) Realised dividend yield (%) October 2013 Page 11
  12. 12. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Table of contents October 2013 Page 12 The case for high dividend stocks Investment philosophy and process Investment team Portfolio review Fund key facts The SYZ & CO Group I II III IV V VI 4 12 21 24 34 36
  13. 13. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Why investing in high dividends through OYSTER?  A unique and differentiating process combining:  Robust quantitative screening to narrow the universe by focusing on good candidates  Qualitative analysis: strong business franchise and financial position, dividend commitment  Focus on quality stocks able to generate attractive total return through :  Current yield  Dividend growth  Price appreciation  Invest globally with broad diversification across sectors, regions and market caps October 2013 Page 13
  14. 14. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Investment philosophy  Dividends force companies to be disciplined with their capital allocation  2-6% is a sweet spot for dividend:  Ability to select companies with growing dividends  Aim to avoid dividend cutters and value traps  Important to set a sustainability criteria  Finding companies able to grow dividends improves long term returns October 2013 Page 14
  15. 15. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. 3. PORTFOLIO (~ 80-100 stocks) OYSTER Global High Dividend Investment process - overview Global universe (~ 35’000 stocks) Investment universe (~ 600 stocks) 1. QUANTITATIVE SCREENING Narrow down the investment universe and only keep companies that match our constraints 2. QUALITATIVE ANALYSIS Selection of candidates Data given as information only and is as a given date and may evolve over time October 2013 Page 15
  16. 16. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Investment process - quantitative screening  Liquidity  Minimum USD 1 Bn market capitalization  Appropriate trading volume  Dividend  Focus on 2-6% range dividend yield  Sustainability criteria  Profitability  Minimum return on equity  Overall fundamental quality  Assessed through a Piotroski score October 2013 Page 16 Data given as information only and is as a given date and may evolve over time
  17. 17. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Investment process – qualitative analysis Strong business franchise  Strategy and growth potential to avoid dividend trap  Competition and barriers to entry  Quality of management  Applied to the screened universe of around 600 stocks  Fundamental analysis by teams in Geneva and London Solid financial position  Balance sheet and leverage  Credit profile Valuation  Margin & return on capital (ROC)  FCF generation and visibility  Focus on total return Dividend commitment  Dividend policy  Growth potential  Financing source of the dividend  Other forms of shareholder return October 2013 Page 17
  18. 18. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Investment process - portfolio construction1  Country & sector allocation derived from screening results and stock selection  Monitoring of economic environment to adapt strategy to changing conditions Typically :  Number of holdings: 80-100 with top holdings: 2-4%  Expected turnover: 50%  Tracking error: max 8% vs. MSCI ACWI Net USD2  Foreign exchange risk is not hedged  Internal guidelines:  Regional weighting: max. 150% of MSCI ACWI Net USD  Dividend yield: above dividend yield of MSCI ACWI Net USD  Only 5% of portfolio allowed in market capitalizations below USD 1 Bn  Min. 90% of portfolio in the 2-6% dividend yield range and within quantitative criteria 1 Data given as information only and is as a given date and may evolve over time 2 Reference to an index is made for comparison purposes only. For regions representing less than 5% ability to over/underweight by 5% October 2013 Page 18
  19. 19. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Sell discipline Sell discipline and monitoring of holdings A position is sold because: October 2013 Page 19 1 2 3 More value found in other region/sector or specific company Company excluded from the investable universe by the quantitative screening process and showing deteriorating fundamentals Structural changes in a company’s investment case, with a special focus on dividend characteristics
  20. 20. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Risk and reward profile1 October 2013 Page 20 1 2 3 4 5 6 7 Typically Lower Rewards Typically Higher Rewards Lower Risk Higher Risk This indicator is deemed to reflect the level of risk of the fund. It can vary from 1 to 7 depending on the weekly upward and downward fluctuations of the portfolio over the last 5 years. The level 1 on the scale does not mean that the portfolio is risk-free. However, this indicator is based on historic data and therefore does not guarantee the level of future risk of the fund. Neither is this risk level an investment objective for the fund and therefore it could vary over time. Level 7 on the scale represents the highest risk level. It equates to an average fluctuation variance of more than 25%,according to the calculation method described above. Level 6 equates to an average fluctuation variance of between 15% and 25%, according to the calculation method described above. This risk level is mainly explained as follows:  The fluctuation of stocks due to possible sudden and/or prolonged fall of the financial markets.  Investment in small and/or medium-sized enterprises which could result in volatility and a higher liquidity risk for the portfolio.  Investment in emerging markets, which are more uncertain than the markets in developed countries (political risk, currency restrictions, repatriation, etc.).  Investment in foreign currency, resulting in a foreign exchange risk. This indicator does not take into account the following risks:  Liquidity risk: risk linked to the difficulty of selling a portfolio investment on the market, preventing it from being traded under optimum conditions.  Operational risk: risk of loss for the fund linked to human or technical error, inadequate internal procedures or control systems.  Specific risks linked to the possible use of derivatives (financial instruments whose valuation is based on the value of another asset). For further information about risks associated to this fund, please see the full prospectus, available at the head office of the SICAV. 1Source: Key Investor Information Document dated 31.12.2012 The indicator mentioned above concerns one specific share class of the sub-fund, for more details on another share class of the sub-fund, please refer to the last updated KIID
  21. 21. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Table of contents October 2013 Page 21 The case for high dividend stocks Investment philosophy and process Investment team Portfolio review Fund key facts The SYZ & CO Group I II III IV V VI 4 12 21 24 34 36
  22. 22. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend The portfolio managers Roberto Magnatantini Lead portfolio manager, CFA, CMT Armand Suchet d’Albufera Portfolio manager Yves Gallati Portfolio manager  He joined SYZ & CO Group in 2008 and is the portfolio manager of OYSTER World Opportunities.  Roberto previously worked six years at Lombard Odier managing equities portfolio and from 2005 for four years at HSBC Private Bank managing the HSBC World Equities Opportunities Fund.  Roberto holds a Bachelor’s degree in Economics from the SES Geneva and he is a CFA Charterholder and has received the CMT certification.  He joined the SYZ & CO Group in 2007 as a European equity analyst based in London.  He started his career at Rothschild & Cie in the M&A department where he worked for six years. In 2006, he moved to London joining the European Leveraged Finance team at CIBC.  Armand graduated at CESEM in Reims and holds a Master’s degree in Financial Engineering from the EM business school in Lyon.  He joined the SYZ & COGroup in 2010 as an equity analyst within the research team based in Geneva.  Before joining Syz AM, Yves worked six years at HSBC Private Bank as a Telecom - Media - Technology equity analyst and portfolio / fund administrator. He started his career at Lombard Odier in 1999.  Yves holds a Bachelor’s degree in Quantitative Economics and a Master’s degree in Econometrics from the University of Geneva. October 2013 Page 22
  23. 23. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. SYZ Group Multi-local Research and fund management capabilities October 2013 Page 23 All asset class expertise Fixed income expertise Equities & fixed income expertise Roberto Magnatantini,CFA, CMT Eric Bendahan, CFA Giacomo Picchetto Daniel Hannemann, CFA Piergiacomo Braganti Fund Manager Global Equities Fund Manager European Equities Co-portfolio Manager European Equities Fund Manager and Head of Fixed Income Head of equity and investments Yves Gallati William Sharp Stefano Girola Martin Oetiker, CIIA Angelo Drusiani Senior Financial Analyst Global Equities Fund Manager European Equities Co-portfolio manager European Equities Fund Manager Fixed Income Responsible for short-term management Jérôme Schupp, CFA Armand Suchet d'Albufera Gionata Crivelli Luzius Kuster Andrea Garbelotto Fund Manager European Equities Financial Analyst Fund Manager Fixed Income Fund Advisor Corporate Bonds Fabrizio Quirighetti Pierre-Marie Gérez Osvaldo Vitrone Senior Financial Analyst Financial Analyst Adrien Pichoud Olivier Parein, CFA Economist and Fund Manager Corporate Bonds and Currencies Senior Financial Analyst Maurice Harari Luca Lanfranchi Junior Financial Analyst Financial Analyst Joël Le Saux Thomas Mesmin Fund Manager Japanese Equities Financial Analyst Yasmina Barin Senior Financial Analyst Michele Pedroni Junior Financial Analyst Julien Raymond Junior Financial Analyst Equities expertise Paolo Luban, Managing Partner & Chief Investment Officer Ernesto Marelli Banca Albertini SYZ & C. SpAPatrick Bédat, Chief Executive Officer Geneva London Lugano Zurich Milan Head of traditional Investments & Fund Manager Absolute Return Chief Economist and Fund Manager Global Macro, Fixed Income and Absolute Return Strategies
  24. 24. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Table of contents October 2013 Page 24 The case for high dividend stocks Investment philosophy and process Investment team Portfolio review Fund key facts The SYZ & CO Group I II III IV V VI 4 12 21 24 34 36
  25. 25. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend I USD Performance at 31.08.2013 October 2013 Page 25 Source: Lipper Past performance does not guarantee or predict future performance. 1Reference to an index is made for comparison purposes only. The index is not mentioned in the investment policy of the sub-fund (*) Since 30.07.2013, track-record of the R USD share class (LU0821216842). Before this date, track record recalculated from the I USD share class since inception and adjusted on a daily basis from the difference of management fees between these two share classes. Since launch (17.10.2012) YTD OYSTER Global High Dividend I USD 8.0% 7.7% MSCI AC World NR USD 9.7% 8.8% Lipper Global Equity Global Income 7.3% 6.7% 95 100 105 110 115 120 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 OYSTER Global High Dividend I USD MSCI AC World NR USD Lipper Global Equity Global Income
  26. 26. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Portfolio breakdown at 31.08.2013 October 2013 Page 26 Source:OYSTER Sicav Index: MSCI AC World NR USD Data given as information only and is as a given date and may evolve over time Reference to an index is made for comparison purposes only Financials 22.6% 21.4% Merck & Co., Inc. Health Care 2.2% 0.5% Consumer Discretionary 16.2% 11.8% Chevron Corporation Energy 2.0% 0.7% Industrials 13.7% 10.7% Reed Elsevier NV Consumer Discretionary 1.8% 0.0% Consumer Staples 9.1% 10.2% Total SA Energy 1.7% 0.4% Information Technology 9.1% 11.9% Sun Life Financial Inc. Financials 1.7% 0.1% Health Care 8.7% 10.2% MTN Group Limited Telecommunication Services 1.7% 0.1% Utilities 7.3% 3.3% Cinemark Holdings, Inc. Consumer Discretionary 1.6% 0.0% Energy 7.1% 10.1% AXA SA Financials 1.6% 0.1% Telecommunication Services 3.4% 4.2% Kraft Foods Group, Inc. Consumer Staples 1.6% 0.1% Materials 2.8% 6.2% CSX Corporation Industrials 1.6% 0.1% Total 100% 100% Total 17.5% 2% United States 43.3% 48.4% USD 53.1% 48.6% <1BLN 0.0% 0.0% Japan 8.8% 7.9% EUR 16.8% 10.7% >1BLN,<5BLN 13.4% 4.8% France 6.8% 3.4% JPY 8.4% 7.9% >5BLN,<30BLN 45.1% 36.8% Canada 5.0% 3.8% CAD 4.8% 3.8% >30BLN 41.5% 58.4% Germany 4.5% 3.2% GBP 3.6% 8.1% United Kingdom 3.7% 7.4% ZAR 3.1% 0.8% South Africa 3.2% 0.8% HKD 2.7% 3.2% Switzerland 2.9% 3.4% SEK 1.7% 1.2% Netherlands 2.8% 1.2% CHF 1.6% 3.3% Other 19.0% 20.5% Other 4.2% 12.4% Total 100% 100% Total 100% 100% Total 100% 100% By market capitalization Fund Index United States By geography Fund Index By currency Fund Index United States Sector Fund Index United States United States Netherlands France Canada South Africa United States France By sector Fund Index Top 10 Country
  27. 27. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Dividend breakdown by category - examples Expected dividend yield for 2013: 3.6% October 2013 Page 27 Source: SYZ Asset Management SA, data as of 31.07.2013 Data given as information only and is as a given date and may evolve over time  Low & defensive  US insurers, Japanese banks  Stanley Black&Decker, Tyco  Low & growing  CSX, NorthropGrumman  Accenture, Taiwan Semiconductor  Spectris, Time Warner, NagaCorp  High & defensive  Kraft, Reed Elsevier  Johnson & Johnson, Total  Hoya, Seagate  Pipelines in Canada  High & growing  British American Tobacco, Mattel  GE, Elementis  Allianz, Axa, Sanlam  MTN, SJM 19.2% 10.1% 47.7% 23.1% Low & Defensive Low & Growing High & defensive High & Growing
  28. 28. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.  Eurozone stocks and in particular the periphery look cheap in a historical context and relative to global peers with a valuation based on trough earnings  Relative trend P/E and P/B of Europe below the historical norms  Cycle-adjusted PE attractive vs. LT median and other geographies  Eurozone earnings are depressed, offering an easy base for a rebound  From last cycle peak in 07’, EPS are down 32%  In the meantime, US EPS are 13% above the last cycle peak  Attractive dividend yields vs. other regions and asset classes OYSTER Global High Dividend Why overweight Europe? MSCI Europe cycle-adjusted P/E relative to the US Source: Datastream, MSCI Eurozone vs US 12m Fwd EPS October 2013 Page 28
  29. 29. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Stock example: Northrop Grumman – USA, Aero & Defense Screening result  USD 16.8bn mkt cap, DY 3.2%, growing dividend  Payout 28%, ROE 19.9%, Piotroski 9/9 Description  Leading defense contractor with strong competitive positions in Aerospace Systems, Information Systems, Electronic Systems and Technical Services  Attractive industry with massive barriers to entry, recurring revenues and high profitability Qualitative analysis  Excessive fears surrounding DoD budget and sequestration risk translate into attractive valuation  Strong dividend commitment complemented by disciplined share buy-backs  Robust balance sheet & high cash flow generation  ROCE 15.1%, FCFy 12.5%, EV/EBITDA 5.4x, P/E 11.1x 2013e Source: Bloomberg 7.92 7.37 7.16 7.81 7.41 6.775.215.21 1.57 1.69 1.84 1.97 2.15 2.31 2.49 2.63 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2008 2009 2010 2011 2012 2013E 2014E 2015E EPS DPS Source: Bloomberg Past performance does not guarantee or predict future performance October 2013 Page 29 20 30 40 50 60 70 80 90 100 110 2008 2009 2010 2011 2012 2013 Stock Price
  30. 30. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Stock example: MTN Group – South Africa, Telecom October 2013 Page 30 Screening result  USD 37 bn mkt cap, DY 4.5 %, growing dividend  Payout 74 %, ROE 22.5 %, Piotroski 6/9 Description  MTN is a multinational communications group offering cellular network access and business solutions  Mobile licences across 21 countries in Africa and the Middle East  Nigeria should become MTN’s largest market this year, ahead of South Africa Qualitative analysis  Market-leading positions, unique play on Africa, operational delivery and secular opportunity for mobile banking  Earnings and FCF should grow by 15% CAGR over the next three years leaving ample room to increase dividends  11.1x P/E 14' for an 11-14e EPS CAGR of 11.5%, 14e DY of 5.1% and a net cash position Source: Bloomberg 1'613 1'430 1'274 1'1191'110 764781 806 1'253 1'089 947 824 749 500 192181 0 200 400 600 800 1'000 1'200 1'400 1'600 2008 2009 2010 2011 2012 2013E 2014E 2015E EPS DPS 4'000 6'000 8'000 10'000 12'000 14'000 16'000 18'000 20'000 22'000 2008 2009 2010 2011 2012 2013 Stock Price Source: Bloomberg Source: Bloomberg Past performance does not guarantee or predict future performance
  31. 31. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. 0 50 100 150 200 250 300 2008 2009 2010 2011 2012 2013 Stock Price OYSTER Global High Dividend Stock example: Elementis – UK, Chemicals October 2013 Page 31 29.1 27.1 25.1 23.7 27.8 16.7 26.4 20.0 10.7 12.6 7.0 4.9 - 5 10 15 20 25 30 35 40 2010 2011 2012 2013E 2014E 2015E EPS DPS Source: Berenberg Screening result  USD 1.8 bn mkt cap, DY 2,2 %, growing dividend  Payout 34 %, ROE 23 %, Piotroski 6/9 Description  Production of additives improving the flow characteristics and performance of liquids, improving product qualities  Specialty products (60% of sales; 59% EBIT)  Chromium (31% of sales; 38% EBIT)  Surfactants (9% du CA; 3% EBIT) Qualitative analysis  Unique assets (75% market share in chromium in the USA, only one hectorite mine in the world)  Potential from recent acquisition in Brazil (Watercryl)  Dividend policy: at least 30% payout + 50% of the year-end cash position (upside on expectations)  15x P/E 14' for an 12-14e EPS CAGR of c.10%, 14e DY of 3.9% and a net cash position allowing additional distribution Source: Bloomberg Past performance does not guarantee or predict future performance
  32. 32. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. 0 10 20 30 40 2008 2009 2010 2011 2012 2013 Stock Price OYSTER Global High Dividend Stock example: Cinemark – USA, Entertainment October 2013 Page 32 Screening result  USD 3.4 bn mkt cap, DY 3.2%, growing dividend  Payout 57%, ROE 15.9%, Piotroski 7/9 Description  Highest attended worldwide theatrical exhibitor (461 theatres with 5207 screens in 14 countries)  Industry performance leader: best-in-class profitability (EBITDA margin of 24.2%) and superior growth profile Qualitative analysis  Potential for digital 3D technology to drive higher average ticket prices and attendance  Superior growth opportunity in Latin America : 1/3 of group sales with 15% sales CAGR  Strong balance sheet & high cash flow generation  ROCE 10%, FCFy 8%, EV/EBITDA 9.6x, P/E 14.8x 2013e Source: Bloomberg 2.42.09 1.78 1.59 1.331.29 0.79 0.67 0.870.860.850.840.84 0.75 0.72 0.72 0.0 0.5 1.0 1.5 2.0 2.5 2008 2009 2010 2011 2012 2013E 2014E 2015E 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 EPS DPS Source: Bloomberg Past performance does not guarantee or predict future performance
  33. 33. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Stock example: Mattel – United States, Toys Screening result  USD 14.9 bn mkt cap, DY 3.4%, growing dividend  Payout 56%, ROE 27.1%, Piotroski 5/9 Description  World’s largest toy maker. Solid brand portfolio including Barbie, Hot Wheels, Matchbox, Fisher-Price  High barriers to entry, Mattel and Hasbro own more than a third of the total toy market Qualitative analysis  Secular bull market for toy manufacturers driven by EM & improved US demographics  Positive earnings momentum due to innovation (Monster High craze, digital initiatives, American Girl success in the US)  Operating margin expansion: 400bp improvement expected over the coming 5 years  ROCE 20%, FCFy 9%, EV/EBITDA 10.2x, P/E 16.5x 2013e Source: Bloomberg 3.1 2.82 2.522.47 2.18 1.81 1.37 1.05 1.561.55 1.44 1.24 0.920.83 0.750.75 0.2 0.6 1.0 1.4 1.8 2.2 2.6 3.0 3.4 2008 2009 2010 2011 2012 2013E 2014E 2015E EPS DPS October 2013 Page 33 Source: Bloomberg Past performance does not guarantee or predict future performance 0 10 20 30 40 50 2008 2009 2010 2011 2012 2013 Stock Price
  34. 34. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Table of contents October 2013 Page 34 The case for high dividend stocks Investment philosophy and process Investment team Portfolio review Fund key facts The SYZ & CO Group I II III IV V VI 4 12 21 24 34 36
  35. 35. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Global High Dividend Key facts UCITS compliant, Luxembourg SICAV Custodian/Central Administrat Share class Hedged ISIN code Management fee Auditors USD LU0821216339 1.50% Management Company USD D LU0821216412 1.50% Fund Manager R USD LU0821216842 0.90% Index1 EUR yes (active) LU0821216685 1.50% Liquidity R EUR yes (active) LU0821217147 0.90% Trade date CHF yes (active) LU0821216768 1.50% Cut-off time Settlement date Institutional share class 3 Hedged ISIN code Management fee Minimum initial subscription, I USD LU0933608183 0.75% Institutional share class only I USD D LU0821217063 0.75% Fund domicile Registered in2 Further information Subscription fee Redemption fee 4. Not available for investors in Belgium. RBC Investor Services Bank SA PricewaterhouseCoopers (PwC) Oyster Asset Management S.A. Syz Asset Management SA & SYZ & CO Asset Management LLP MSCI ACWI Net USD 1. Please note that the reference to an index is made for information purposes only. The index is not mentioned in the investment policy of the Sub-Fund. 2. Not all share classes may be registered locally, please contact info@oysterfunds.com for further information. 3. For further details please refer to the prospectus. Daily 5 000 000 USD OYSTER Website, Bloomberg, Morningstar, Reuters, SIX Telekurs, Finesti, FundinfoNAV available throughMax 3% Luxembourg AT, BE, CH, DE, ES, FR, UK, IT, LU, NL Max 5%, Max 3% for I USD & I USD D www.oysterfunds.com4 - info@oysterfunds.com T+0 T 12:00 CET T+4 October 2013 Page 35
  36. 36. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Table of contents October 2013 Page 36 The case for high dividend stocks Investment philosophy and process Investment team Portfolio review Fund key facts The SYZ & CO Group I II III IV V VI 4 12 21 24 34 36
  37. 37. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 37 SYZ & CO Group 3 business lines but one common objective Private Banking Institutional Asset Management OYSTER Investment Funds  Swiss banking group founded in 1996 by Eric Syz, Alfredo Piacentini and Paolo Luban  Sole focus on asset management across three activities with a common objective of delivering superior performance  Not involved in project-financing, investment banking, commercial or mortgage lending  Supervised on a consolidated basis by the FINMA (Swiss Financial Market Supervisory Authority) SYZ & CO Group October 2013
  38. 38. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 38  Fast growing banking group - AuM of EUR 25.1 Bn1  Assets increased +18% in 2012  All three activities enjoyed double-digit growth  Solid Capital Base: Core Tier 1 ratio of 27.8%2  Independent: not linked to a financial institution  440 employees in 17 cities worldwide1  Sponsor of OYSTER Sicav SYZ & CO Group Key facts and figures 1Data as of 30.06.2013 2Annual report available on www.syzgroup.com Past performance does not guarantee or predict future performance. October 2013
  39. 39. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 39 OYSTER SICAV Key facts  A Luxembourg SICAV, UCITS compliant  Sub-funds covering major asset classes as well as niche strategies  Compartments are registered in most European countries and Singapore1  The bulk of assets are held by investors external to the group  Distribution team aiming to deliver regular and proactive communication to clients  Mix of internally and externally managed funds  11 out 21 sub-funds ranked first quartile in 2012 including 8 funds in the first decile2 1Solely targeting institutional clients in compliance with applicable law 2Source: Lipper, using Lipper Global universe where sub-funds are registered Past performance does not guarantee or predict future performance. October 2013
  40. 40. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 40 OYSTER SICAV Our philosophy  Bottom-up approach  Style & Market Cap agnostic  Risk team independent from portfolio managers Innovation  Use of atypical managers in main asset classes  Identify tomorrow’s strategies  Anticipate future trends Identify talents  Team dedicated to managers’ selection  Internal recruitment or sub-advisory relationship  Strategy’s exclusivity for European distribution Active management OYSTER philosophy October 2013
  41. 41. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. OYSTER Funds & Representatives October 2013 Page 41 OYSTER Funds OYSTER Sicav Oyster Asset Management SA Route d'Esch 69 Grand Rue 74 L-1470 Luxembourg L-1660 Luxembourg info@oysterfunds.com tél. +352 26 27 361 www.oysterfunds.com Representatives Germany Spain Switzerland Zahlstelle Entidad comercializadora Soggetto incaricato dei pagamenti BHF-Bank Aktiengesellschaft Allfunds Bank S.A. State Street Bank S.p.A Bockenheimer Landstrasse 10 c/Estafeta no6 (La Moraleja) Via Col Moschin 16 Banque SYZ & CO S.A. D – 60323 Frankfurt Complejo Plaza de la Fuente - Edificio 3 20136 Milano Rue du Rhône 30 Tel +49 (0)69 718 22 75 E – 28109 Alcobendas - Madrid Tel +39 02 879 671 53 CH – 1204 Genève Tel +34 (0)91 274 64 00 Tél + 41 (0)58 799 19 05 Austria France Zahlstelle Correspondant Centralisateur Soggetto incaricato dei pagamenti Raiffeisen Bank International AG BNP Paribas Securities Services Société Générale Securities Am Stadtpark 9 Rue du Débarcadère 9 Services SpA A – 1030 Wien F – 93500 Pantin Via Benigno Crespi 19/A-MAC 2 Tel. +43 (0)1 717 070 Tel. +33 (0) 1 57 43 12 58 I – 20159 Milano Tel +39 02 917 846 61 Belgium Italy Agent financier – Financiële agent Soggetto incaricato dei pagamenti Soggetto incaricato dei pagamenti Caceis Belgium s.a./n.v. RBC Investor Services Bank S.A. Allfunds Bank S.A. Avenue du Port 320 Milan Branch Via Santa Margherita 7 Havenlaan 86C b Via Vittor Pisani, 26 I – 20121 Milano B – 1000 Bruxelles 20124 Milano Tel +39 02 896 283 01 Tel +32 (0)2 209 26 40 Tel +39 02 305 756 1 Représentant et service de paiement pour la Suisse
  42. 42. OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer. Disclaimer This promotional document has been issued by the investment fund, OYSTER Sicav (hereinafter referred to as "OYSTER” or the “Fund”). It is not intended for distribution to or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, issue or use. Users are solely responsible for verifying that they are legally authorised to consult the information herein. Only the most recent version of the prospectus, by-laws and annual and half-yearly reports of the Fund (hereinafter referred to as the Fund’s “legal documentation”) should be considered as a basis for investment decisions. These documents are available on the website, www.oysterfunds.com, or from the OYSTER offices at 69, route d'Esch, L-1470 Luxembourg. The information or data contained in the present document does not in any way constitute an Offer or a recommendation to buy or sell shares in the Fund’s units. Furthermore, any reference to a specific security in this document should not be construed as a recommendation or investment advice. They are intended solely to inform the investor as to past performance, and do not reflect the opinion of OYSTER or any related companies as to future returns. The information, opinions and assessments contained in the present document shall apply at the time of publication and may be revoked or changed without prior notice. OYSTER has not taken any measures to adapt to each individual investor who remains responsible for his own independent decisions. Moreover, investors are advised to consult their legal, financial or tax advisors before taking any investment decisions. Tax treatment depends entirely on the financial situation of each investor and may be subject to change. It is recommended that investors obtain the appropriate expert advice before taking any investment decisions. The value of the units referred to may fluctuate and investors may not recoup all or part of their original investment. Investors should consult the Fund prospectus for further details on the risks involved. Past performance is not indicative of future results. It is calculated in the unit currency and, where investments are made in a different currency, may also be affected by fluctuations in exchange rates. The performance data given does not include commissions or any fees linked to the subscription to and/or repurchase of shares. It is possible that companies linked to the Fund and their executives, directors or personnel hold or have held stakes or positions in the securities listed in this document, or that they have traded or acted as market maker for these securities. Moreover, these entities or individuals may also have past or present ties with the executives of the companies issuing the abovementioned shares; furnish or have furnished financial or other services; or are or have been a director of the companies in question. The manager reserves the right not to disclose the name of certain positions that would normally rank amongst the top 10. This promotional document is in no way intended to replace the legal documentation of the Fund and/or any information that investors obtain from their financial advisors. Please note that reference to an index is made for information purposes only. The index is not mentioned in the investment policy of the Sub-Fund. The performance of the Sub-Fund may differ from the performance of the index. For further information on the index please refer to the website of its service provider. OYSTER is a Luxembourg SICAV that is not open to citizens or residents of the USA. www.oysterfunds.com – info@oysterfunds.com MSCI The MSCI indexes are the exclusive property of MSCI Inc. (“MSCI”). MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes. The financial securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such financial securities. The Prospectus contains a more detailed description of the limited relationship MSCI has with any related financial securities. No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI. October 2013 Page 42

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