Your SlideShare is downloading. ×
0
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Presentation aberdeen   martin connaghan
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Presentation aberdeen martin connaghan

15,902

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
15,902
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. For Professional Use OnlyNot for public distributionGlobal Equities10 February 2011Presentation toCitywire ConferenceMartin Connaghan, Investment ManagerAberdeen Asset Management
  • 2. Agenda• About Aberdeen• Investment team• Key points of differentiation• Investment process• Current positioning• Portfolio activity over past 12 months – process in action• Performance and investment risk 1
  • 3. About Aberdeen• Dedicated asset management company, founded in 1983• Independently owned and operated, listed since 1991 on the London Stock Exchange• Expertise across equities/fixed income/property/alternative investment strategies• Sizeable: €213.9bn under management• Reach: key investment centres in main time zones: London/Stockholm/Edinburgh; Philadelphia; Singapore; and Sydney• Service: 30 secondary offices in 23 countries providing global client support• Institutional client base• Uniform active equity approach across GroupSource: Aberdeen Asset Management, 31 Dec 10 2
  • 4. Long-term outperformanceTo 31 Dec 10 Product Annualised (%) 3 months 1 year 2 years 3 years 5 years Global Equity (EUR) 10.74 20.43 26.49 1.82 4.62 MSCI World (EUR) 10.98 20.14 23.39 -1.51 0.38 Outperformance -0.24 0.29 3.10 3.33 4.24 Product Calendar years (%) 2010 2009 2008 2007 2006 Global Equity (EUR) 20.43 32.86 -34.03 5.19 12.89 MSCI World (EUR) 20.14 26.72 -37.24 -1.18 7.92 Outperformance 0.29 6.14 3.21 6.37 4.97The above is supplemental information and supplements the composite presentations (as provided in the GIPS disclosures)Total return, gross of fees, EURSource: Aberdeen Asset Management 3
  • 5. Global equity team – a true team approach• Highly experienced and stable• One integrated team drawing on research capability from regional teams located throughout the world• FM interdependence and complementary skills mean teams are greater than sum of parts• Culture of ideas and of challenging them• Collective decision-making through formal meetings first, but also ‘around the desk’• Teams operate in an open-plan environment We cultivate a team, not individual stars 4
  • 6. Global equity team Stephen Docherty Head of Global Equities Bruce Stout Andrew McMenigall Stewart Methven Jamie Cumming Samantha Fitzpatrick Martin Connaghan Ella-Kara Brown Senior Inv. Manager Senior Inv. Manager Senior Inv. Manager Senior Inv. Manager Senior Inv. Manager Investment Manager Asst Inv. Manager Ann Dewar Jill Sneddon Cindy Rose Jamie Govan Fionna Ross Gail McCullie Senior Portfolio Analyst Global Trading Co-ordinator Head of SRI Research SRI Analyst SRI Analyst SRI Researcher Global equity team utilises research produced by regional equity teamsSource: Aberdeen Asset Management, 31 Dec 10 5
  • 7. Key points of differentiation• We are bottom-up stockpickers• High conviction portfolios; c40 - 60 stocks only• We don’t own companies we don’t like, regardless of benchmark weight• Typical average stock position c2%• Buy-and-hold approach, with low turnover; we are true company stakeholders• We build diversified portfolios of companies• Team approach, consensual decision-making, but senior managers have final say• Investment managers/analyst do their own research• Risks controlled at stock level – rigorous process discipline and filters 6
  • 8. Global equity process Regional teams Global team (Pan Europe, Asia Pacific ex Japan, North America, Japan, Emerging Markets) Step 1 Risk checks Regional desk interaction Company visit note Risk controls Step 2 Step 3 Quality Aberdeen Price Portfolio universe construction ComparativeTotal • Model is default Globaluniverseof Pass or fail? Cheap or expensive? • Filter for mandate • Refine weightings analysisstocks • Compliance checks Equity Model portfolio Buy List c50 stocks Potential Watchlist/ Monitor c330 stocks revisit review • Desk research: pre-screen of candidate companies • No quantitative filters • Many stocks eliminated over time or self-excluding due to size/structure Watchlist/review Monitor c280 stocks Same process = Common language = Ability to exchange thoughts across regions 7
  • 9. Step 1: regional teams Company visit note Risk controls Quality Aberdeen Price Portfolio universe construction • Model is defaultTotaluniverse • Filter for mandate Pass or fail? Cheap orof expensive? • Refine weightingsstocks • Compliance checks Potential Watchlist/ Monitor revisit review • Desk research: pre-screen of candidate companies • No quantitative filters • Many stocks eliminated over time or self-excluding due to size/structure 8
  • 10. Step 2: comparative analysis – global team• Stocks in global equity buy-list have passed regional quality and valuation screens• Stocks with market cap < US$1bn are excluded from buy-list• Global team makes comparisons across regions/sectors• Global team focuses on the valuation differentials, where pricing anomalies are identified from a global perspective• Unique companies are identified to help construct a diversified portfolio of businesses We aim for a diversified portfolio, not driven by backward looking index composition 9
  • 11. Comparative analysis example – energy sector Company Region P/E10 P/E11 P/E12 P/B Dividend Dividend growth yield (5yr) (%) Exxon Mobil USA 13.1x 11.4x 10.2x 2.7x 2.3% 8.8% Apache Corporation USA 13.6x 11.4x 10.1x 2.2x 0.5% 12.0% EOG Resources USA 91.4x 30.8x 17.5x 2.5x 0.6% 31.1% Hess Corporation USA 15.9x 12.8x 11.4x 1.7x 0.5% 0.0% Total Europe ex UK 9.1x 8.4x 7.8x 1.7x 5.4% 8.7% ENI Europe ex UK 9.3x 8.3x 7.6x 1.2x 5.7% -5.8% Royal Dutch Shell UK 10.9x 9.0x 7.9x 1.5x 4.9% 0.7% BP UK 7.2x 7.1x 6.8x 1.7x 1.7% -14.6% PetroChina Asia 12.5x 11.4x 10.1x 2.0x 3.1% 2.7% Petrobras Latin America 9.6x 9.9x 9.8x 1.2x 3.6% 6.6% Lukoil EMEA 6.1x 5.7x 5.6x 4.0x 2.7% 11.5% PTT Exploration Asia 13.7x 12.2x 10.2x 3.4x 2.3% 5.3% BG Group UK 18.4x 16.8x 15.2x 3.0x 1.0% 26.8%Source: Aberdeen Asset Management and all numerical data from Bloomberg, 18 Jan 11Companies marked in bold are held in the global equity portfolios. Model research example used for illustrative purposes only 10
  • 12. Step 3: portfolio constructionArt as much as science• The unconstrained Model portfolio(s) is the start of any portfolio• The Model has been constructed over time, in some asset classes over 20 years or more• Exact weightings/allocations for each fund are refined on an ongoing basis• Factors to consider include fund objective, geographical remit, liquidity, mandate constraints• New holdings introduced at 1 - 2% [capped at 5% absolute] We aim for a diversified portfolio, not driven by backward looking index composition 11
  • 13. Risk in portfolioWe see risk in absolute terms• Defined in terms of investing in a poor quality company OR in overpaying for a good one• Diversification at stock level is main form of control• Asset/sector allocation provide informal screens• MPT analysis is for ex-post observations only, to define performance monitoring frameworkTypical risk characteristics:• Low turnover• Tracking error c3 - 9%• Fully invested• Beta typically around 1• We do not actively hedge currencies 12
  • 14. Current positioning
  • 15. Aberdeen Global World Equity FundRelative country positions Country/region 31 Dec 09 (%) 31 Dec 10 (%) MSCI World (%) Fund’s relative position (%) United States 19.6 18.7 49.1 -30.4 Canada 1.5 1.9 5.3 -3.4 Europe ex UK 34.5 30.0 19.3 +10.7 United Kingdom 14.8 16.0 9.7 +6.3 Japan 9.3 10.7 10.1 +0.6 Asia Pacific ex Japan 14.7 16.0 6.1 +9.9 Latin America 3.5 4.7 0.4 +4.3 Cash 2.1 2.0 - +2.0 Total 100.0 100.0 100.0• Portfolio is well diversified from a country/regional perspective, however, benchmark has considerable exposure to the USA and not much exposure to the emerging marketsSource: Aberdeen Asset Management, Dec 09 & 10 14
  • 16. Aberdeen Global World Equity FundRelative sector positions Sector 31 Dec 09 (%) 31 Dec 10 (%) MSCI World (%) Fund’s relative position (%) Financials 23.5 19.5 20.1 -0.6 Energy 14.7 15.4 11.0 +4.4 Utilities 4.6 4.9 3.9 +1.0 Info tech 13.6 12.3 11.7 +0.6 Healthcare 10.7 12.8 9.3 +3.5 Consumer staples 9.8 13.1 9.8 +3.3 Consumer discretionary 2.4 2.4 10.4 -8.0 Telecom services 3.5 5.2 4.2 +1.0 Industrials 11.0 8.9 11.3 -2.4 Materials 4.1 3.5 8.3 -4.8 Cash 2.1 2.0 - +2.0 Total 100.0 100.0 100.0• Portfolio is diversified from a sector perspective and the benchmark has better diversification• If we can’t find the value we will have nothing in a sector• Financials single biggest sector weighting, but closer examination shows this to be diversified between banks, insurance companies and real estateSource: Aberdeen Asset Management, Dec 09 & 10 15
  • 17. Aberdeen Global World Equity FundTop 20 portfolio holdings by market value Name Country % Name Country % 1 Vodafone Group UK 3.8 11 British American Tobacco UK 2.8 2 Zurich Financial Services Switzerland 3.7 12 Johnson & Johnson USA 2.8 3 Taiwan Semiconductor Taiwan 3.5 13 Samsung Electronics Korea 2.7 4 ENI Italy 3.4 14 Standard Chartered UK 2.7 5 QBE Insurance Australia 3.3 15 Banco Bradesco Brazil 2.6 6 Philip Morris USA 3.2 16 Takeda Pharmaceutical Japan 2.5 7 Tenaris Italy 3.1 17 Centrica UK 2.5 8 Novartis Switzerland 3.1 18 Adidas Germany 2.4 9 Canon Japan 3.0 19 E.On Germany 2.4 10 Roche Holdings Switzerland 2.9 20 Swire Pacific Hong Kong 2.4 Cumulative % 58.8• A high conviction portfolio of stocks• Various businesses spread across sectors and countries from around the worldSource: Aberdeen Asset Management, 31 Dec 10 16
  • 18. Portfolio activity over past12 months – process in action 17
  • 19. Aberdeen Global World Equity FundNew company investments – Dec 09 - Dec 10 Portfolio weight 2009 2010 3.5 3.1 3.0 2.6 2.5 2.0 2.0 1.4 1.5 1.0 0.9 1.0 0.5 0 0 0 0 0 0 0.0 Banco Bradesco China Mobile Nestle Novartis Oracle Corp- Pepsico Company• Weights determined through ability to top up on weakness and/or how the stock price performs relative to its fundamentalsSource: Aberdeen Asset Management, change in portfolio weightings 09 & 10. Model portfolio used for illustrative purposes only 18
  • 20. Aberdeen Global World Equity FundCompanies divested – Dec 09 - Dec 10 Portfolio weight 2009 2010 3.5 3.0 3.0 2.6 2.4 2.5 2.2 2.0 1.5 1.5 1.0 1.0 0.5 0 0 0 0 0 0 0.0 Deutsche Post Intesa SanPaolo Mapfre Astrazeneca Intel Corp Procter & Gamble Company• Divested from companies across a range of regions and sectors for a variety of reasons, including M&A, valuation and regional desks sellingSource: Aberdeen Asset Management, change in portfolio weightings 09 & 10. Model portfolio used for illustrative purposes only 19
  • 21. SummaryEquities• Robust investment process - Replicable and consistent across all desksRegional teams• Conduct initial due diligence and filtering on stocks• Always meet and interview a company before investing• Provide company research and ongoing due diligenceGlobal Equities• Pick stocks from a concentrated universe of ‘best’ ideas from regional teams• Take advantage of the benefits and opportunities of a flexible universe• Genuine team effort across all desks• Concentrated portfolios – we back our judgements 20
  • 22. Aberdeen Global – World Equity FundFund characteristicsFund name Aberdeen Global – World Equity FundFund domicile LuxembourgFund type SICAVPortfolio Manager Global Equity teamFund currency USDBenchmark MSCI WorldInvestment universe Lipper Global Equity GlobalInception date 1 Feb 1993Valuation DailyShare Class ISIN Currency AMC Minimum investment S–2 LU0505784297 USD 1.92% USD 1,500 A-2 LU0505663152 USD 1.50% USD 1,500 I-2 LU0505784701 USD 1% USD 1,000,000S – 2 hedged LU0505784883 EUR 1.92% USD 1,500A – 2 hedged LU0505663400 EUR 1.50% USD 1,500 21
  • 23. Performance and investment risk
  • 24. Performance: Global Equity (All Cap)Composite: Global Equity (All Cap) - 3% outperformance (GLOGRP)Benchmark: MSCI WorldBase Currency: US Dollar (reported in Euro)Gross Returns as of: 31 Dec 10Firm: AAMPLC Year Composite Benchmark Number of portfolios Dispersion Market value at Percentage Total firm assets return gross return (*throughout period) end of period of firm assets Rolling 3 months 10.74% 10.98% 37 (35) 0.13% 14,084,679,160 Year to date 20.43% 20.14% 37 (25) 0.44% 14,084,679,160 1 year 20.43% 20.14% 37 (25) 0.44% 14,084,679,160 2 years pa 26.49% 23.39% 37 (14) 1.48% 14,084,679,160 3 years pa 1.82% -1.51% 37 (10) 1.17% 14,084,679,160 4 years pa 2.65% -1.43% 37 (5) 1.39% 14,084,679,160 5 years pa 4.62% 0.38% 37 (5) 2.14% 14,084,679,160 Since inception pa 4.71% 1.97% 37 (0) N/A 14,084,679,160 2009 32.86% 26.72% 28 (15) 1.05% 9,095,027,213 6.66% 136,498,690,785 2008 -34.03% -37.24% 18 (12) 0.85% 3,477,004,977 4.05% 85,873,702,810 2007 5.19% -1.18% 11 (6) 1.25% 1,952,101,209 1.69% 115,759,646,942 2006 12.89% 7.92% 8 (8) 1.35% 845,961,176 0.83% 101,880,305,218 2005 36.79% 26.80% < 5 N/A 282,217,881 0.30% 93,615,691,550 2004 14.37% 6.95% <5 N/A 231,964,671 0.90% 25,908,659,211 2003 8.26% 11.28% <5 N/A 279,919,367 1.24% 22,556,082,521 2002 -29.47% -31.73% <5 N/A 179,755,573 0.83% 21,579,804,411 2001 -15.89% -11.98% 5 (3) N/A 331,232,593 0.74% 44,487,591,225 2000 -7.24% -7.04% <5 N/A 149,666,943 0.39% 38,577,479,667Composite inception: 1 Aug 98Source: Aberdeen Asset Management 23
  • 25. Disclaimer: Global Equity (All Cap)Composite DisclosuresComposite: Global Equity (All Cap) - 3% outperformanceAs of: 31 Dec 10Definition of the FirmAberdeen Asset Management plc ("Aberdeen" or "the Firm") is defined as all portfolios managed globally by subsidiaries of Aberdeen AssetManagement plc, excluding Property, Private Equity, Private Client and Lloyds Syndicate portfolios.Aberdeen is the global brand under which all products are now marketed. The global Firm inception date is 1st December 2005 and is comprisedof five divisions that either were or were part of legacy compliant firms (Aberdeen Asset Management Inc, the Fixed Income products ofDeutsche Asset Management UK and Deutsche Asset Management Americas, from 1st April 2008, the actively managed equity products ofNationwide Fund Advisors and Nationwide SA Capital Trust ("Nationwide") and from 1st May 2009 the Global Investors business of CreditSuisse Asset Management (Australia) Limited). The firm also includes the Aberdeen non-US business and businesses not claiming compliancewhich have been acquired after 1st December 2005, which have been brought into compliance from 1st January 1996.The legacy track records satisfy the GIPS portability criteria and have been linked with the track record of the Aberdeen global Firm. Compositereturns, start date and composite and firm assets reported prior to acquisitions represent those of the legacy firm which managed the product atthe time.GIPS ComplianceAberdeen has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS). The effective dateof compliance is 1st January 1996. The Firm and its legacy components have been independently verified for the periods to 30th September2009. A copy of the verification report is available upon request. The inception date of the composite is 31/07/1998 and it was created on13/04/2006, during the global consolidation project. No alteration of composites has occurred as a result of changes in personnel or any otherreasons at any time. A complete list of the Firms composites is available on request.Composite DescriptionThis composite comprises accounts with at least 80% invested in equities managed on a discretionary basis. The accounts within this compositeinvest primarily in companies based in equity markets as defined by Morgan Stanley Capital International. All composite results includereinvestment of dividends and interest. 24
  • 26. Disclaimer: Global Equity (All Cap)Composite MethodologyReturns are time-weighted total rates of return including cash and cash equivalents, income and realised and unrealised gains and losses.Returns are shown net of non-recoverable tax, whilst recoverable tax is included on a cash basis. Composites results are weighted by individualportfolio size, using start of period market values.Portfolios are valued at least monthly or on the date of any contribution/withdrawal greater than 9% within 1 month. Annual returns are calculatedusing geometric linking of monthly returns. Exchange rates used are WMR 4pm rates.A fund becomes eligible for inclusion the first full calendar month after funding. Inclusion may be deferred in cases where it has not beenpossible to implement the investment strategy. Terminated funds leave composites at the end of the calendar month before official notification oftermination is received. Results include all discretionary, fee paying accounts of the Firm.The dispersion of annual returns is measured by the standard deviation among asset-weighted portfolio returns represented within the compositefor the full year. Dispersion is not calculated for composites with less than five accounts for the whole period.Additional information on policies for calculating and reporting returns is available on request.Presentation of ResultsGross returns are presented before management, custodial and other fees but after all trading expenses. Net returns are calculated after thededuction of a representative management fee.Primary Index DescriptionMSCI World.Representative Fee DescriptionGlobal Equity fee scale: 1.00%Derivative InstrumentsThe portfolios in this composite may invest in exchange traded futures and options for efficient portfolio management. Derivatives are not used toleverage the portfolios.Past performance is not an indication of future results. 25
  • 27. Country attribution: Aberdeen Global World Equity FundThree years to 31 Dec 10 Portfolio Benchmark Currency Net management effects Weight Return Weight Return Return Currency Allocation Selection Total (%) (%) (%) (%) (%) Total 100.0 1.81 100.0 -1.50 3.46 -0.13 0.96 2.48 3.31 Equities 98.0 1.17 100.0 -1.50 3.46 -0.22 0.39 2.48 2.65 North America 20.6 3.31 54.5 0.56 2.95 -0.05 -0.67 0.56 -0.16 Canada 1.9 15.49 5.3 4.47 2.67 0.05 -0.22 0.16 0.00 United States 18.7 2.42 49.1 0.19 2.91 -0.11 -0.45 0.40 -0.15 Europe 46.0 -2.72 29.0 -5.63 -0.35 -0.13 -0.17 1.32 1.01 UK 16.0 -0.04 9.7 -4.22 -5.00 -0.12 0.13 0.55 0.56 Europe ex UK 30.0 -3.85 19.3 -6.31 1.85 -0.01 -0.31 0.77 0.46 Asia Pacific 26.7 5.55 16.2 0.12 12.53 -0.06 1.05 0.60 1.59 Japan 10.7 3.90 10.1 -1.69 14.49 0.22 -0.04 0.48 0.67 Asia Pacific ex Japan 16.0 6.88 6.1 3.34 7.14 -0.29 1.08 0.12 0.92 Pacific Basin ex Japan 16.0 10.22 6.1 3.34 7.14 -0.11 1.28 0.12 1.29 Indian subcontinent 0.0 - - - - -0.18 -0.20 0.00 -0.38 Other international Equities 4.7 2.73 0.4 - 6.08 0.02 0.18 0.00 0.20 Cash 2.0 10.84 - - 2.91 0.09 0.58 0.00 0.67• Performance coming from a variety of sourcesInception: 26 Feb 93Total return, gross of fees, EURBenchmark: MSCI WorldBenchmark is constructed from country level and as such the top line figure may differ slightly from the official benchmark returnSource: Aberdeen Asset Management 26
  • 28. Sector attribution: Aberdeen Global World Equity FundThree years to 31 Dec 10 Portfolio Benchmark Net management effects Weight (%) Return (%) Weight (%) Return (%) Allocation Selection Total Total 100.0 1.81 100.0 -1.51 0.79 2.52 3.32 Equities 98.0 1.17 100.0 -1.51 0.13 2.52 2.65 Energy 15.4 1.66 10.9 -1.00 -0.02 0.62 0.60 Materials 3.5 - 8.3 2.58 -0.04 -0.23 -0.28 Industrials 8.9 2.63 11.3 -0.42 0.23 0.05 0.28 Consumer discretionary 2.4 5.53 10.4 3.81 -0.45 0.13 -0.32 Consumer staples 13.0 -7.26 9.8 5.38 -0.17 -1.18 -1.35 Healthcare 12.8 5.35 9.3 1.97 0.27 0.33 0.60 Financials 19.5 -2.32 20.1 -11.19 0.22 1.66 1.88 Information technology 12.2 11.72 11.7 1.28 0.04 1.35 1.38 Telecom services 5.2 0.49 4.2 -1.87 0.02 0.14 0.16 Utilities 4.9 -12.43 3.9 -5.89 0.04 -0.34 -0.30 Cash 2.0 10.84 - - 0.67 0.00 0.67• Performance coming from a variety of sourcesInception: 26 Feb 93Total return, gross of fees, EURBenchmark: MSCI WorldBenchmark is constructed from country level and as such the top line figure may differ slightly from the official benchmark returnSource: Aberdeen Asset Management 27
  • 29. Aberdeen Global Equity (All Cap) – 3% outperformanceComparison with the Global Equity Core Universe (actual ranking) Return in Euro and before fees for periods ended Sep 10 Return (%) 26 22 18 14 10 6 2 -2 -6 -10 3 months (%) 1 year (%) 2 years (% pa) 3 years (% pa) 5 years (% pa) Aberdeen 1.6 (136) 17.0 (73) 8.2 (50) -1.4 (18) 3.6 (16) Benchmark 2.2 (102) 14.9 (121) 4.2 (128) -6.5 (101) -0.6 (113) 95th Percentile 5.5 24.3 12.3 1.0 4.2 Upper Quartile 3.0 17.9 8.3 -3.8 2.3 Median 2.2 15.6 5.7 -5.7 0.5 Lower Quartile 1.2 13.6 3.3 -7.6 -0.5 5th Percentile -1.9 10.1 0.4 -9.5 -2.3 Number of Funds 207 202 191 173 146The above is supplemental information and supplements the composite presentations (as provided in the GIPS disclosures)Source: Aberdeen Asset Management 28
  • 30. Appendix
  • 31. Benchmark: MSCI WorldSource: Aberdeen Asset Management, Dec 09 Portfolio style skyline Aberdeen Global World Equity Fund – Dec 09 Style Tilt™ -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 0.0 Book to Price 2.5 IBES Div Yld 1.6 IBES Engs Yld -0.9 CFlow Yield -0.6 IBES Sales Yld 0.4 EBITDA to Price 0.3 Rtn on Equity 1.2 Income/Sales -1.7 IBES 12Mth Gr 0.5 IBES 1Yr Rev IBES Sales 12m -0.9 Gr -0.8 IBES Engs LTG -0.1 Market Cap -1.0 Market Beta 0.8 Momentum ST 0.2 Momentum MT -1.3 Debt/Equity 3.3 Foreign Sales30
  • 32. Aberdeen Global World Equity Fund – Dec 10Portfolio style skyline Style Tilt™ 4.0 3.3 3.2 3.0 2.0 0.8 0.9 1.0 0.6 0.6 0.2 0.1 0.0 0.0 -0.5 -0.4 -0.5 -0.5 -1.0 -0.9 -0.8 -1.1 -2.0 -1.8 -1.9 -3.0 IBES Div Yld IBES 1Yr Rev EBITDA to Price IBES Engs LTG IBES 12Mth Gr IBES Engs Yld CFlow Yield IBES Sales Yld Momentum ST Momentum MT IBES Sales 12m Income/Sales Book to Price Market Cap Market Beta Rtn on Equity Debt/Equity Foreign SalesSource: Aberdeen Asset Management, Dec 10 GrBenchmark: MSCI World 31
  • 33. QualityWhat can you expect to find in our chosen stocks?• Business prospects/strategy Evidence of industry growth, clear strategy and execution• Management Motivation, experience and track record: do we trust individuals in charge?• Financials Strong balance sheet, transparent• Transparency Clean company structure, visible earnings, annual report• Commitment to shareholder value Company is run for shareholders, not managers or controlling interests Prefer straightforward companies with clear-sighted management 32
  • 34. PriceRisk control AND relative value• Valuation: use standard metrics, viz P/E ratios, price/cashflow, NAV, dividend yield• Different criteria depending on sector/industry• Cross-border and industry comparisons• Simple forward modelling of each investment using our own forecasts• Conservative approach, focusing on downside• Are risks in price? We dislike overpaying• Relative value as important as absolute given limited number of portfolio names Holistic approach – we identify where the value is and which stocks will work for us 33
  • 35. The company note (I)Dilution Group wide system rating ► Formal background ◄ Dilution? ◄ Usually conservative vs market consensus ◄ Dilution? ◄ Key ratios • ‘If options aren’t an expense, then what are they?’ ◄ Key ratios • Warrants, too • We always fully dilute Prerequisite for new holding Who is behind the company? ◄ The bottom line – Buy/sell/ avoid/result etc ◄ Relative performance 34
  • 36. The company note (II)Management and corporate governance Level of independence, who are the outsiders? Alignment with shareholders? How do they evaluate themselves? The ‘feel’ factor What did we learn about the business, industry, etc during the meeting? • Honesty, transparency, integrity… X-regional comparison, where necessary • In whose interests does the board Level of independence, who are the outsiders? manage? Alignment with shareholders? How do they evaluate themselves? The ‘feel’ factor • Treatment of minorities is critical How does the FM who saw the company justify forecasts? • Family-run companies can be saints or Versus the market, sector etc sinners How do we value the company? What do we think it is worth? • Owners often like dividends – which can What is the rationale for owning this company/business? What is going to boost the share price? be tax-efficient Any ‘funnies’ Varies between countries, important for asset • Separate check on SRI heavy companies Guarantees, lawsuits, derivatives, etc Are tax rates unusually low/high… If so, why? Excess s-t or forex borrowing? Does OCF differ from profit? Free cash flow? 35
  • 37. The company note (III)Accounting policies What did we learn about the business, industry, etc during the meeting? Any ‘funnies’ Varies between countries, important for asset heavy companies X-regional comparison, where necessary Guarantees, lawsuits, derivatives, etc Are tax rates unusually low/high… If so, why? Level of independence, who are the outsiders? Alignment with shareholders? How do they evaluate themselves? The ‘feel’ factor • Focus on exceptional and non-recurring How does the FM who saw the company justify forecasts? items Versus the market, sector etc How do we value the company? • Cross-border comparisons essential What do we think it is worth? • Move to global accounting standards a What is the rationale for owning this company/business? What is going to boost the share price? plus… Any ‘funnies’ Varies between countries, important for asset heavy companies Guarantees, lawsuits, derivatives, etc Are tax rates unusually low/high… If so, why? Excess s-t or forex borrowing? Does OCF differ from profit? Free cash flow? 36
  • 38. The company note (IV)Balance sheet/cash flow What did we learn about the business, industry, etc during the meeting? X-regional comparison, where necessary Level of independence, who are the outsiders? Alignment with shareholders? How do they evaluate themselves? The ‘feel’ factor Excess s-t or forex borrowing? How does the FM who saw the company justify forecasts? Does OCF differ from profit? Free cash flow? Versus the market, sector etc How do we value the company? What do we think it is worth? What is the rationale for owning this company/business? • Simple forecast of sales/earnings What is going to boost the share price? Any ‘funnies’ • Focus on consistency of free cashflow Varies between countries, important for asset heavy companies Guarantees, lawsuits, derivatives, etc and how it is used Are tax rates unusually low/high… If so, why? Excess s-t or forex borrowing? Does OCF differ from profit? Free cash flow? 37
  • 39. Global equity teamStephen Docherty, Head of Global Equities Ella-Kara Brown, Assistant Investment ManagerBSc (Hons) in Mathematics & Statistics from Aberdeen University. Stephen BA (Hons) in Financial Services from Napier University. Previously workedworked with Life Division of Abbey National PLC. Joined Aberdeen Asset for corporate finance firm Adam Smith before joining Aberdeen AssetManagement in 1994. Responsibilities included performance measurement Managers Private Equity Division in 2005 and subsequent move to theprocedures, generalist coverage and input to all Latin American Investment. Global Equity Team in 2007 as an SRI Analyst before becoming an assistantCurrently directly responsible for a number of Global and EAFE mandates. investment manager in 2010. Ann Dewar, Senior Portfolio AnalystBruce Stout, Senior Investment Manager Joined Aberdeen Asset Management in 2000 from Murray Johnstone whereBA (Hons) in Economics, Strathclyde University. Over 20 years’ experience. she was the senior trader for ADR portfolios. Ann has over 20 years’Joined the Group from Murray Johnstone in 2000 where he held the position experience and is responsible for the daily management of the global &of Investment Manager for their emerging markets team. socially responsible funds.Andrew McMenigall, Senior Investment Manager Cindy Rose, Head of SRI ResearchMBA (Edinburgh), ASIP. Over 20 years’ fund management experience. BA in English and French; MSc in Comparative Literature from EdinburghPreviously an officer in Her Majesty’s Armed Forces. Joined Aberdeen Asset University. Joined Aberdeen Asset Management in 2000 from MurrayManagement PLC in 2003 from Edinburgh Fund Managers PLC, where he Johnstone where she was an Investment Writer and Web Editor. Previouslyheld the position of Head of global equities. worked in management consulting and at the US Tax Court in Washington, DC.Stewart Methven, Senior Investment ManagerMA (Hons) in Economics from Heriot-Watt University, Edinburgh, ASIP. Jill Sneddon, Global Trading CoordinatorWorked previously at Prudential Portfolio Managers as an investment BA in Finance & Marketing from Strathclyde University. Workedanalyst. Joined Aberdeen Asset Management in 2003 from Edinburgh Fund previously at Aird Sakol Chartered Accountants. Joined Aberdeen AssetManagers where he was an investment manager on the Pan-European Management in 2002 from Cogent where she worked as an Internationalequity team. Client Administrator. Previously worked at Murray Johnstone. Jamie Govan, SRI AnalystJamie Cumming, Senior Investment Manager BA (Hons) in Accountancy and Law from Glasgow University. Jamie joinedCA, CFA, BA (Hons) in Accountancy and Business Law from Strathclyde Aberdeen Asset Managers with the Global Equity Team on a permanentUniversity. Worked previously at Grant Thornton Chartered Accountants. basis at the beginning of 2008 after working as an intern in the SRI team.Joined Aberdeen Asset Management from Edinburgh Fund Managers,where he was an investment manager on their Japanese equities team. Fionna Ross, SRI Analyst BSc (Hons) Geography from St Andrews University. MSc QuaternarySamantha Fitzpatrick, Senior Investment Manager Science, Royal Holloway, University of London. Worked previously inCFA, BSc (Hons) in Mathematics from Strathclyde University. Joined Finance at The National Trust for Scotland before joining Aberdeen AssetAberdeen Asset Management in 2000 from Murray Johnstone, where she Managers Global Equity Team as an SRI Researcher in 2008.was part of the Performance Measurement & Risk Team. Previously worked Gail McCullie, SRI Researcherat The WM Company. BSc (Hons) Geography from St Andrews University. Worked previously forMartin Connaghan, Investment Manager The National Trust for Scotland in Property Planning and EstateJoined Aberdeen Asset Management in 2000 from Murray Johnstone as a Management before joining the Global Equity Team as an SRI Researcher inTrader in the Global Equity Team. In 2003 he joined the Pan European 2010Investment Grade Credit Team in London, where he worked as a CreditAnalyst. Martin rejoined the Global Equity Team as an SRI Analyst beforebecoming an investment manager. 38
  • 40. Aberdeen equity structure Chief Investment Officer Anne Richards Head of Equities Hugh Young Global UK/Europe US GEM Pacific Basin Japan Stephen Docherty Jeremy Whitley Paul Atkinson Devan Kaloo Hugh Young Kwok Chem Yeh Andrew McMenigall Ben Ritchie Douglas Burtnick London Adrian Lim Keita Kubota Ann Dewar Bertie Thomson Francis Radano Andrew Gillan Sandy Lim Bruce Stout Charles Luke Hughes McLean Andy Brown Chou Chong Yuki Ogawa Cindy Rose Edward Beal Jason Kotik Catriona Edmond Christopher Wong Ella-Kara Brown Ian Hewett Joe McFadden Gabriel Sacks Flavia Cheong Fionna Ross James Laing Jonathan Lux Fiona Manning James Thom Gail McCullie Jonathan Allison Michael Manzo Joanne Irvine Kristy Fong Jamie Cumming Kurt Cruickshank Qie Zhang Mark Gordon-James Louis Lu Jamie Govan Laurent Ingelbert Ralph Bassett Mubashira Bukhari Peter Taylor Jill Sneddon Louise Kernohan Robert Mattson Osamu Yamagata Pruksa Iamthongthong Martin Connaghan Philip Webster Stephen Parr Thomas Reeves Samantha Fitzpatrick Rodney Wells Susan McDonald Stewart Methven Romney Fox Andrew Preston Samantha Brownlee São Paulo Andrew San Sanjeet Mangat Camille Simeon Tom Mann Brunella Isper Chhai Ung Yoojeong Oh Nick Robinson Mark Daniels Michelle Lopez + Natalie Tam Robert Penaloza Pacific Basin in Adithep Vanabriksha Singapore Orsen Karnburisudthi Thailand Ratanawan Saengkitikomol Malaysia Hong Kong Bharat Joshi Gan Ai Mee Gerald Ambrose Jalil Rasheed Frank Tian Kathy Xu Nicholas YeoSource: Aberdeen Asset Management, Jan 11 39
  • 41. For professional use onlyNot for public distribution• Investors should be aware that past performance is not a guide to future returns, the value of investments and the income from them can fall as well as rise and investors may get back less than the amount invested• The views expressed in this presentation should not be construed as advice on how to construct a portfolio or whether to buy, retain or sell a particular investment. The information contained in the presentation is for exclusive use by professional customers/eligible counterparties (ECPs) and not the general public. The information is being given only to those persons who have received this document directly from Aberdeen Asset Management (AAM) and must not be acted or relied upon by persons receiving a copy of this document other than directly from AAM. No part of this document may be copied or duplicated in any form or by any means or redistributed without the written consent of AAM• Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Services Authority in the United Kingdom 40

×