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  • Government Outsourcing and Efficiency Drivers (equity cluster) Richard R. comments from 3 rd of Feb. 2009: Area that we envisage will be high on the agenda across the world. Governments are looking carefully at how their operation costs are developing. With more demands on their capital (i.e. they are spending a lot of money in a lot of areas) – they need to ensure a more efficient use of capital, particularly as capital becomes more and more constrained. Such a development will involve (amongst other things) outsourcing (whether it is within new schools or hospitals or in security/catering) – (helping companies like Serco, G4S) or within healthcare (keeping down costs on certain drugs (e.g. over use of epogen) – good for Fresenius Medical care. Also companies and governments wanting to reduce the cost on testing or treating people whom have an inappropriate genetic make-up to be positively treated by a certain drug (Qiagen). (we currently have over 7% in this area). General Multiplier (equity cluster) Comments from 15 th of Jan. 2009 The "General multiplier" theme falls into the Gorilla theme "Government Stimuli" and currently represents 2.9% of our portfolio NAV. The rationale behind this driver is that a government’s success in stimulating the economy with fiscal injections ultimately lies in the efficiency of the money multiplier. Governments will act to maximize the impact of stimuli by ensuring benefits are actually spent to bolster trade and not eliminated through leakages such as saving. An example of how this may be achieved is through the donation of vouchers. Vouchers provide the greatest multiplier effect by controlling exactly where and how the proceeds are spent (e.g. Local shops / goods) and ensuring rapid utilisation rates through fixed expiries. The fund is currently invested in Gemalto, a smart card, chip card and pay terminal manufacturer and Accor which produces vouchers.

Pre eaf montreux_201105_eng_final Pre eaf montreux_201105_eng_final Presentation Transcript

  • Nordea 1 – European Alpha Fund ISIN LU0326853404 (BP-EUR) May 2011 Richard Robinson Investment Manager
  • Ashburton: the sub-manager 3 Investment process 7 Appendix - Fund features 17
    • Established in 1982, Ashburton (Jersey) Limited, the investment manager, is centred in Jersey, the largest of the Channel Islands and the highest ranked offshore center, globally (IMF).
    • In 1998, Ashburton became part of an internationally renowned financial services organisation, the FirstRand Group (headquartered in Johannesburg). FirstRand Group is rated: S&P BBB, Fitch: BBB and has assets under management of €131.3bn*.
    • The Nordea 1 – European Alpha Fund (ISIN: LU0326853404) is sub-managed by the Ashburton European Equity team which is managing the Ashburton European Equity Fund (ISIN: GB0002279403), a product launched 12 years ago (06.01.1997).
    • The Ashburton European Equity Fund holds a number of ratings:
    Ashburton – the sub-manager Ashburton, the sub-manager Overall Morningstar Rating*** * Source: http:// www.firstrand.co.za / . Date: 30.06.2010. ** An S&P Fund Management Rating represents an opinion only and should not be relied on when making an investment decision. Reproduction or distribution of S&P’s trade names or logos in any form is prohibited except with the prior written permission of S&P. Visit funds.standardandpoors.com for full terms and conditions. Copyright 2010 © Standard & Poor’s, a division of The McGraw-Hill Companies, Limited. *** Source - © 2011 Morningstar, Inc. All Rights Reserved, Date: 31.03.2011, Morningstar category “Europe Large Cap Blend Equity”. **
    • Richard Robinson – Head of Pan European Equities Team, Investment Manager
    • Richard Robinson joined Ashburton in 2000 and is Head of the Pan European Equities team.
    • Richard studied at the University of Wales College, Cardiff, before joining a Jersey private bank as a security dealer.
    • Richard holds the MSI (Dip) and is a Member of the Securities Institute. He also holds the Investment Managers Certificate.
    • Veronika Pechlaner – Investment Manager
    • Veronika Pechlaner joined Ashburton (Jersey) Limited as Investment Manager in early 2008.
    • She previously worked as Executive Director at Goldman Sachs in London where she focussed on Pan European equity research in the media sector since 2001.
    • Veronika has been a CFA charterholder since 2005. She holds a Master degree in Finance and International Management from the University of Innsbruck (Austria, E.U.) and participated in the 1999 exchange program at Tulane University (USA).
    • Alan Le Maistre - Assistant Investment Manager
    • Alan Le Maistre is an Assistant Investment Manager within the Pan European Equities team.
    • Alan joined Ashburton in mid 2007 having graduated from Cardiff University.
    • He holds the Investment Management Certificate (IMC) and is currently studying towards the Chartered Market Technician (CMT) qualification
    Investment Team Source: Ashburton (Jersey) Limited, Date: 30.09.2009 Ashburton – the sub-manager
  • Ashburton European Equity Fund* Longstanding track record in European Equities Data Source - © 2011 Morningstar, Inc. All Rights Reserved, Morningstar Category: Europe Large-Cap Blend Equity, Available for Sale Offshore, Oldest Share Class. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar Licensed Tools and Content implemented and powered by Interactive Data Managed Solutions. * Ashburton (Jersey) Limited distributes the Ashburton European Equity Fund. This sub-fund is not authorised for public distribution in Continental Europe. ** Morningstar Category average: Europe Large-Cap Blend Equity. The performance represented is historical; past performance is not necessarily a guide to the future and investors may not recover the full amount invested. The value of shares can fluctuate and is not guaranteed. 1 1 Top quartile performance 1 1 Ashburton – the sub-manager
  • Nordea 1 – European Alpha Fund Fund performance Sources: Nordea Investment Funds S.A., Datastream and Ashburton. * Ashburton (Jersey) Limited distributes the Ashburton European Equity Fund. This sub-fund is not authorised for public distribution in Continental Europe. Bloomberg: Ashburton European Equity Fund (Bloomberg ticker: ASHIEUR JY). Performance calculated NAV to NAV (net of fees and Luxembourg taxes) gross income reinvested, in EUR, excluding initial and exit charges as per 31.03.2011. The performance represented is historical; past performance is not necessarily a guide to the future and investors may not recover the full amount invested. The value of shares can fluctuate and is not guaranteed.
  • Investment Process Investment process overview “ Unlike many of the fund’s competitors, the initial investment decision stems from identifying significant global macro- and/or industry trends which will persist for some time, or Gorilla Views , which form the bedrock of portfolio construction” * As “Equity cluster” we define a sub-sector or a group of companies exhibiting common features in their positioning with respect to a particular top-down Gorilla view (ie. Common export markets, type of technology, geographical and business exposure etc.). Gorilla View long-term view Sector/Equity Cluster* medium-term view Stock Selection short-term analysis INTERNAL / EXTERNAL RESEARCH PORTFOLIO CONSTRUCTION / RISK MANAGEMENT Gorilla View 1 Stock A Stock B Stock C Equity Cluster 1 Equity Cluster 2 Equity Cluster 3 Stock A Stock B Stock C Stock A Stock B Stock C Gorilla View 3 Stock A Stock B Stock C Equity Cluster 1 Equity Cluster 2 Equity Cluster 3 Stock A Stock B Stock C Stock A Stock B Stock C Gorilla View 2 Stock A Stock B Stock C Equity Cluster 1 Equity Cluster 2 Equity Cluster 3 Stock A Stock B Stock C Stock A Stock B Stock C
  • Energy Demand Forming our ‘Gorilla View’ Investment Process Shortage of supply
    • The world of ‘scramble’
    • Politically straightforward and expedient
    • Supply but at a cost
    • Oil price is elevated
    Increase efficiency of usage
    • The world of ‘controlled response’
    • Appropriate alternative fuels
    • Increasing efficiencies of energy usage
    Growth of emerging economies India, China, South America
    • Leads to civil unrest (inflation)
    • Energy installations in inappropriate areas
    • More extreme engineering (Macondo)
  • Forming our ‘Equity cluster’ The world of ‘scramble’ The world of ‘controlled response’
    • Oil Service Companies
    • Dealing with lower quality fuel
    • Liquid Natural Gas (LNG) facilitators
    • Mining companies (Coal)
    • Mining equipment companies
    • Clean Coal Burners
    • Shipping
    • Engineering Companies
    • Engine companies (more efficient gasoline/diesel)
    • Alternative energy
    • Engine manufacturers (hybrid)
    • Engineering Companies
    • Energy Efficient Infrastructure
    • Bio-fuels (+ fertiliser companies)
    • Profitable action against resource depletion and climate change.
    • The engineered solution and becomes more compelling and profitable the higher energy prices move.
    • Dealing with today’s problem is the priority.
    • Long term ‘action’ to combat resource shortages and climate change are absent on a large scale.
    • Governments inclined to choose short- term solutions, looking to indigenous solutions where possible.
    • Motorists continue to use petroleum.
    • Oil becomes harder to find and produce.
    • Prices Rise, leading to civil unrest.
    Investment Process
  • Investment Process Investment process 3 stage, theme/sector driven
    • 2) Equity Cluster Allocation
    • Identify the equity clusters which profit most from the “Gorilla outlook” at a given point in time
    • Analyse the position of these equity clusters in the value chain
    • Specific Supply/demand fundamentals, identifying bottlenecks
    • Inventory levels
    • 3) Stock Selection
    • Top down screening model reduces investment universe
    • Bottom up qualitative and quantitative valuation
    • Flexible selection process favouring Growth or Value stocks dependent on current market conditions
    • 1) Gorilla View (Identify Macro/Industry Drivers)
    • Long term Supply / Demand analysis
    • Potential Supply bottlenecks
    • Industry Analysis
    • Companies reporting/announcements
    • Macro economic developments
    Stock selection inside Sector/Equity Cluster based on relative valuation shorter-term analysis Gorilla View long-term view Sector/Equity Cluster medium-term view *Example Feb 2011 Gorilla View : Death of Cheap Oil Supply* Equity Cluster : Oil Services Equity Cluster 2. Equity Cluster 3. Stock B Stock C Stock D Stock SEADRILL
  • Portfolio Construction
    • Between 60 and 80 stocks – to diversify away stock specific risks
    • Investments between 1% and 2% of NAV – to minimise impact of losses from one particular stock
    • Average size of holding: 1.6%
    • Combine Large Cap and Mid Cap stocks
    • The benchmark , used as a reference point, does not dictate country, sector or stock weightings used in the portfolio – the benchmark represents historical success, not future success.
    • Investment Universe: companies incorporated in any European country and also securities traded in other markets where the underlying companies derive a significant proportion of their earnings from the European region
    Investment process
  • Fund philosophy “ The fund’s unconstrained approach enables it to focus on global themes reflecting fundamental change while investing in a European equity market context. Principally, the fund’s focus is to create alpha by translating these top-down “Gorilla Views” into “Equity clusters” which results in significant over- and underweights in the fund’s (sub)sector allocation relative to the benchmark Index”
    • ACTIVELY benefiting from GLOBAL CHANGE!
    • Reflected in unique 3-step investment process
    • Proven process allows dynamic positioning
    • Gorilla Views
    • Equity Clusters
    • Stock selection
    Top-down roadmap driven by global macro & industry themes Redefine the market into pockets according to exposure to gorilla views Relative selection within cluster based on profiling & valuation What differentiates us? Performance underpinned by differentiated investment philosophy
    • Oil Services
    • Oil E&P
    • Integrated
    • Alternative Energy
    Death of Cheap Oil Supply Austerity Busters Recovering West Billion Boomers
    • Clean and Green
    • Innovation
    • Financials
    • Others
    • Consumer
    • Logistics
    • Consumer and Lifestyle
    • Hard Commodities
    • Infrastructure
    • Deleveraging consumer
    • Stable Demand
    • Increased Tax Revenue
    • Increased Gov. efficiency
    Investment process Global themes actively managed in Europe Performance underpinned by differentiated Investment Process Incubator Diverging West Internal Feedback + Analyst Feedback + Independent + General Research * Cash Return On Capital Invested ** Moving Average Convergence / Divergence Stock selection Screening model (Valuation & Momentum) Bottom up (CROCI*, P/NAV, DCF) Technical (RSI, Volume, MACD**) Relative valuation Analyst Input Meet management (where possible) Inventories, sector indicators, etc. Qualitative research Short term Long term Mid term
  • Nordea 1 – European Alpha Fund Thematic allocation as of 29.04.2011 Source: Nordea Investment Funds S.A.. Date: 29.04.2011 Diverging West Current positioning Death Of Cheap Oil 30% Weighting % Oil Services 20.34 Oil E&P 4.20 Integrated 5.53 Billion Boomers 24% Hard / Soft commodities 8.75 Consumer and Lifestyle 4.44 Infrastructure 10.68 Recovering West Consumer 2.73 10% Logistics 6.86 Austerity Busters 3% Deleveraging Consumer 1.57 Stable Demand 1.62 Increased Government Efficiency 0.00 Incubator Clean and Green 16.78 28% Innovation 1.60 Financials 9.50 Bottom-up 1.66 Gorilla Views (Themes) Equity clusters
  • Current positioning & outlook Model portfolio: Sector allocation vs benchmark ( 29.04.2011) Source: Data provided by Ashburton Jersey , Date: 29.04.2011 Positioning driven by top-down “gorilla themes” results in active allocation relative to benchmark
  • APPENDIX
  • Risk Management policies
    • Top slicing : part of a position sold when an out performer becomes a too large part of the portfolio
    • Daily monitoring of stocks relative to their sector, index and benchmark. A drawdown of over 15% in absolute terms or relative to the index will normally lead to a sell (unless exceptional circumstances prevail), i.e. stop loss methodology
    • Minimum liquidity requirement : normally the fund manager will not take a position that constitutes over 30% of the average 90 day daily volume (in value terms)
    • Use of options on the index permitted for the purpose of Portfolio Insurance under specific circumstances
    • Monthly meetings with the MD, Investment Director and Strategist to review all aspects of the fund
    Investment process
  • Nordea 1 – European Alpha Fund Top ten holdings as of Fund features
  • Nordea 1 – European Alpha Fund Sector and country breakdown as of Fund features
  • Nordea 1 – European Alpha Fund Market capitalisation as of Fund features
  • Nordea 1 – European Alpha Fund Key fund data as of Fund features
  • The Nordea 1 fund app: Get Nordea on your iPhone Download the Nordea 1 fund app to your Apple iPhone, iPad or iPod touch now and always stay up to date on the Nordea 1, SICAV range: Features include daily price and performance data, latest Nordea news, fund of the month, portfolio manager videos, personalized watch lists, plus of course an intuitive fund palette that introduces you to the funds and their managers. Nordea 1 fund app To download the app search “Nordea 1” in your Apple App Store or visit www.nordea.lu /APP for further information.
  • Contact Pan-Europe
    • Nordea Investment Funds S.A.
    • 562, rue de Neudorf
    • P.O. Box 782
    • L-2017 Luxembourg
    • www.nordea.lu
    • [email_address]
    • Freephone 00800 43 39 50 00
    • The sub-funds mentioned are part of the Nordea 1, SICAV, an open-ended Luxembourg-based investment company (Société d'Investissement à Capital Variable), validly formed and existing in accordance with the laws of Luxembourg and with European Community Directive 85/611/CEE of 20 December 1985. The custodian of the SICAV’s assets is Nordea Bank S.A., Luxembourg. Investments in the Nordea funds should be made on the basis of the current prospectus, which is available, along with the simplified prospectus, current annual and semi-annual reports, free of charge upon request from Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. Box 782, L-2017 Luxembourg, from the local representatives or information agents, or from our distributors. A transaction involving a foreign exchange transaction may be subject to fluctuations of currency values which may affect the value of an investment. Investments in Emerging Markets involve a higher element of risk. Nordea Investment Funds S.A. only publishes product-related information and does not make any investment recommendations. Further information can be obtained from your financial advisor. He/she can advise you independently of Nordea Investment Funds S.A. Published by Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. Box 782, L-2017 Luxembourg. Additional information for investors in Switzerland : The Swiss Financial Market Supervisory Authority (FINMA) has granted authorisation for Nordea 1, SICAV to be publically distributed within and from Switzerland. The documents listed above, as well as the Articles of Association, are available free of charge from the Swiss Representative and Paying Agent, Nordea Bank S.A. Luxemburg, Zweigniederlassung Zürich, Mainaustrasse 21-23, CH-8008 Zürich. Telephone (+41) 44 421 42 42, Fax (+41) 44 421 42 82. Additional information for investors in Germany: The Information and Paying Agent in Germany is Nordea Bank Finland Plc, Niederlassung Deutschland, Bockenheimer Landstrasse 33, D-60325 Frankfurt am Main. A hard copy of the above-mentioned fund documentation is also available from here. Additional information for investors in Austria : Sub-paying Agent and Representative in Austria is the Erste Bank der Österreichischen Sparkassen AG, Graben 21, A-1010 Vienna. Additional information for investors in France: With the authorisation of the Autorité des Marchés Financiers (AMF) as per 11 March 2003, 13 December 2005, 03 April 2007, 28 September 2007, 29 February 2008, 29 April 2008, 25 November 2008 and 09 June 2009, Nordea 1, SICAV may be distributed to investors in France, as published in the Bulletin des Annonces Légales Obligatoire dated 19 March 2003, 19 December 2005, 18 April 2007, 10 October 2007, 19 March 2008, 28 May 2008, 15 December 2008 and 26 June 2009. Centralising Correspondent in France is CACEIS Bank, located at 1-3, place Valhubert, 75013 Paris. Investors are advised to conduct thorough research before making any investment decision. Additional information for investors in Spain : Nordea 1, SICAV is duly registered in the CNMV official registry of foreign collective investment institutions (entry no. 340) as authorised to be marketed to the public in Spain. In Spain, any investment must be made through the authorised distributors and on the basis of the information contained in the mandatory documentation that must be received from the SICAV’s authorised distributor prior to any subscription, or that may be obtained from the CNMV registries. Additional information for investors in Italy :Fund documentation as listed above is also available in Italy from the distributors and on the website www.nordea.it. The updated list of distribution agents in Italy, grouped by homogenous category, is available from the distributors themselves, at State Street Bank S.p.A. branches (located in the main towns of each region), BNP Paribas Securities Services, Banca Sella Holding S.p.A, Allfunds Bank S.A., Societe Generale Securities Services Sp.A. and on the website www.nordea.it. Any requests for additional information should be sent to the distributors. Before investing, please read the prospectus carefully . We recommend that you read the most recent annual financial statement in order to be better informed about the fund's investment policy. For the risk profile of the mentioned sub-funds, please refer to the fund prospectus. Additional information for investors in the United Kingdom : Approved by Nordea Bank Finland Plc, London Branch, which is regulated by the FSA in the United Kingdom. Additional information for investors in Latvia: The Representative and Paying Agent is Nordea Bank Finland Plc Latvijas branch, K. Valdemara St. 62, Riga, LV-1013. Additional information for investors in Estonia : The Representative and Paying Agent in Estonia is Nordea Bank Finland Plc, Estonia Branch, Hobujaama 4, 15068 Tallinn. Additional information for investors in Lithuania: The Representative and Paying Agent in Lithuania is Nordea Bank Finland Plc, Lithuania Branch, Didzioji str. 18/2, LT-01128 Vilnius. Shareholders must evaluate possible investment risks and take this into consideration when making investment decisions. Additional information for investors in Brazil:  Nordea 1, SICAV have not been, and will not be, registered with the CVM and may not be offered or sold in Brazil except in circumstances which do not constitute a public offering or distribution under Brazilian laws and regulations. Investors within Brazil should consult with their own counsel as to the applicability of these laws and regulations or any exemption there from. This material aims to provide information only and does not constitute and should not be construed as an offer to buy or sell or solicitation of an offer to buy or sell any security or financial instrument. Source : XXX . Performance calculated NAV to NAV (net of fees and Luxembourg taxes) gross income reinvested, in ( EUR) , excluding initial and exit charges as per (29.04.2011) . The performance represented is historical; past performance is not necessarily a guide to the future and investors may not recover the full amount invested. The value of shares can fluctuate and is not guaranteed. Unless otherwise stated, all views expressed are those of Nordea Investment Funds S.A. This document may not be reproduced or circulated without prior permission. Reference to companies or other investments mentioned within this document should not be construed as a recommendation to the investor to buy or sell the same, but is included for the purpose of illustration.