Sept 2012 efgam apei pitchbook citywire

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  • 1. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLY New Capital Asia Pacific Equity Income Fund FOR INSTITUTIONAL INVESTORS ONLY September 2012
  • 2. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYEFG Asset Management An independently managed subsidiary of EFG International. EFG International AG is part of the EFG Bank European Financial Group and has a strong capital base, as illustrated by a Tier 1 Capital Ratio of 13%. As a global private bank headquartered in Zurich, EFG International AG has a comprehensive service offering in the areas of private banking and wealth management. EFG International AG and its subsidiaries currently operate in 50 locations in 30 countries, with over 2400 employees. EFG Internationals registered shares (EFGN) are listed on the SIX Swiss Exchange. EFG Asset Management (EFGAM) is an independently managed subsidiary of EFG International and a provider of investment products and services to institutional and individual investors worldwide.
  • 3. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLY Specialist Strategies for Thoughtful Investors EFGAM is an international advisor delivering leading investment solutions for clients worldwide. With $7 billion in assets under management, we have 94 professionals around the world. We offer a wide range of investment solutions reflecting the varied needs and preferences of our clients. Our clients can access our investment solutions through a variety of product structures, including individual and institutional separate accounts, mutual funds and other pooled investment vehicles. Our range of funds span a broad spectrum of investment options with over $1.2 billion in assets.3 Figures as at 31 December 2011
  • 4. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYNew Capital Asia Pacific Equity Income FundThe aim is to achieve both capital appreciation and a high dividend yield in strong currencies.Philosophy: ► Portfolio aims to produce at least 1.5x market yield, for absolute return and yield reasons ► Portfolio holdings have “quality” bias and a minimum market capitalisation to ensure liquidity ► Diversification between countries and sectorsBackground: ► Asia Pacific high dividend stocks have strong historical performance and low volatility ► Asia offers relatively strong balance sheets and growth opportunities ► Dividends are growing faster than in more developed markets ► Regional currencies are likely to appreciate against the US$, due to better fundamentals ► Universe of Asia Pacific stocks paying dividends is increasing rapidly4
  • 5. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYDividend Yields Have Done Best in Asia 800 700 World APxJ 600 Japan 500 USA Europe 400 300 200 100 0 -100 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 115 Source: Factset, DataStream, CLSA Asia-Pacific Markets
  • 6. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYMSCI Asia ex-Japan – Dividend yield Cumulative Performance6 MSCI-weighted US Dollar total return with quarterly rebalancing for MSCI Universe Source: Factset alpha Tester, CLSA Asia-Pacific Markets
  • 7. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYHigh Dividend Yield vs Growth High yield outperforms fastest growing stocks Q1 is the quartile with the largest value of that factor, Q2 is the second largest7 Source: Citi Investment Research and analysis
  • 8. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYOutperformance of High Dividend StocksAsia-Pacific companies with dividend yield greater than 1.5x industry median 700.00 The Investible Universe ► Not only are stocks defensive 600.00 MSCI Asia Pacific Ex-Japan but they outperform on the 500.00 way up as well 400.00 ► Outperforming strategy in Asia-Pacific in 5,10 and 20 300.00 years 200.00 100.00 0.00 00 1 2 3 4 5 6 7 8 9 0 1 01 02 03 04 05 06 07 08 09 10 11 -0 -0 -0 -0 -0 -0 -0 -0 -0 -1 -1 - n- n- n- n- n- n- n- n- n- n- n- ec ec ec ec ec ec ec ec ec ec ec ec Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju Ju D D D D D D D D D D D D8 Source: Index includes Asia Pacific companies with dividends which are 1.5x that of the Benchmark. Compiled by EFGAM
  • 9. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYDividends & Cashflow9
  • 10. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYPortfolio Characteristics as at 31July 2012 Indicative Valuations P/E Ratio Yield 2010 2011 2012E 2010 2011 2012E New Capital Asian Pacific Equity Income Fund 10.74 10.50 10.42 5.39 5.68 5.45 MSCI Asia Pacific ex Japan 13.87 10.95 12.03 2.67 3.55 3.35 Indicative valuations are based on Earnings and Yield estimates from Factset consensus earnings and yield estimates on a weighted average basis, and do not reflect commissions, fees or other charges. Fund inception: 14 January 2011 2012 are estimates AUM: $50 million (31/07/2012) Average Market Cap: $26.9bn Concentrated portfolio of 40-50 stocks ► Greater China: 47% ► Financials: 40% Source: Bloomberg, Factset, Citi Research, EFG.10
  • 11. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYPerformance of Asia Pacific Equity Income Bond FundPerformance New Capital Asia Pacific Equity Income MSCIAsia Fund– Class A USD Pacific Ex Japan Returns may increase or decrease as a result of currency fluctuations. Performance is net of fees Date of inception 14 January 2011 Source: New Capital Fund Management, Bloomberg Past performance is not necessarily a guide to the future.11 Data as at end July 2012
  • 12. New Capital Asia Pacific Equity Income Fund FOR INSTITUTIONAL INVESTORS ONLY Diversification between Countries and Sectors Weightings vs. Benchmark Geography Sector40.0% 45.0% New Capital Asia Pacific Equity Income Fund New Capital Asia Pacific Equity Income Fund35.0% 40.0% MSCI Asia Pacific ex-Japan MSCI Asia Pacific ex-Japan 35.0%30.0% 30.0%25.0% 25.0%20.0% 20.0%15.0% 15.0%10.0% 10.0%5.0% 5.0%0.0% 0.0% Australia China Hong Kong India Indonesia Korea Malaysia New Zealand Philippines Singapore Taiwan Thailand Cash Energy Financial Communications Industrial Basic Materials Technology Consumer, Cyclical Consumer, Non Healthcare Utilities Cyclical 12 Source: Factset, Citi Research, EFG. Data as at 30 June 2012
  • 13. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYWhy Now? ► High dividend yield stocks attractive against Asian Government bond yields ► In an environment of negative real interest rates we expect investors to switch to stocks from fixed income ► Reversal of tightening policies due to external events ► Asia ex-Japan leverage remains low relative to history2012 Themes ► Strong balance sheets lead to mergers, buybacks and increased dividend payments ► Banks offer an attractive investment in Asian consumer growth ► Telecoms have undemanding valuations and renewed growth from data usage ► Technology stocks in Taiwan offer an attractive combination of yield and growth13
  • 14. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYDividend Yields Attractive Relative to Asian Bond Yields 12.0 Asian Bonds Asian Equities 10.0 8.0 6.0 4.0 2.0 0.0 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-1114 Source: Merrill Lynch
  • 15. New Capital Asia Pacific Equity Income Fund FOR INSTITUTIONAL INVESTORS ONLY Financial Services Trailing PB Banks vs Consumer Staples3.00 ► Preferred exposure to the Asian Consumer2.50 ► Structural increase in loan growth/mortgages/fee2.00 income ► In Asia bank fundamentals1.50 are sound ► Increased market share from1.00 overseas Banks Banks0.50 Consumer Staples0.00 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 15 Source: Credit Suisse
  • 16. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYTelecoms ► Renewed growth in developed markets due to increase in data traffic ► Smartphone effect (increase in ARPU/broadband internet) ► Emerging market of SE Asia still under penetrated ► In some markets capex is declining leading to greater dividend payouts M1 Singapore (M1 SP) - Fibre broadband expansion due to National Broadband Network - Smartphone/Tablet take up leading to increase data revenue - Likelihood of capital management leading to special dividends - Attractive valuations 2010 2011 2012 P/E 15.6 15.0 13.6 Yield 5.2% 6.7%* 5.7% * Including special dividend yield16
  • 17. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYAppendix17
  • 18. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYFund OverviewFund Structure UCITS IV – DublinDesignated Currency USDCustodian HSBC Institutional Trust Services (Ireland) LimitedInvestment Manager EFG Asset ManagementSubscriptions GAM Fund Management Limited George’s Court, 54-62 Townsend Street, Dublin 2, Ireland T: +353 (0) 1 609 3927 F: +353 (0) 1 611 7941 New Capital Income or Management MinimumAsia Pacific Equity Currency ISIN Sedol Accumulative? Fee Investment Income Fund Class A USD Income IE00B3PHBL43 B3PHBL4 1.5% US$10,000 Class B EUR Income IE00B3M4GP73 B3M4GP7 1.5% €10,000 Class C GBP Income IE00B3M6FR88 B3M6FR8 1.5% GBP10,000 Class F USD (CNY Hedge) Income IE00B4YC7V94 B4YC7V9 1.5% US$10,000 Class I USD Income IE00B60RYK03 B60RYK0 0.9% US$5,000,000 Class G SGD Income IE00B6VTV593 B6VTV59 1.5% SGD$10,00018
  • 19. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYTony JordanPossesses over 30 years of investment management experience.1996 - 2009: Co-founded Atlantis Investment Management, an investmentmanagement boutique specialising in Asian Equities ► Between 2000-2009, senior fund manager for Atlantis Asian Recovery Fund and Special Situations fund1984-1996: Schroders Asia Limited, Hong Kong, Director ► 1986-1996: Fund Manager of Schroder Far Eastern Growth Fund ► 1993-1996: Fund Manager of Schroder Asian Smaller Company FundHolds a BSc (hons) in Economics from the London School of Economics19
  • 20. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYInvestment TeamSpecialist Asia Pacific investment team with a local presence. The investment team, based in London and Hong Kong are supported by a wider team of quantitative analysts and the macroeconomic researchers. Highly interactive idea generation, formal and informal discussions between the teams.Tony Jordan, who lived in Asia for 14 years,makes 4-5 visits to the region to meet withcompany management and undertake otherqualitative analysis. Quantitative Analysis Macro- Investment economic Management Strategy20
  • 21. New Capital Asia Pacific Equity Income FundFOR INSTITUTIONAL INVESTORS ONLYImportant Disclaimers The following information is very important, and you should read it carefully and let us know if there Although information in this document has been obtained from sources believed to be reliable, is anything that is unclear to you. neither EFG Private Bank Limited nor EFG Asset Management (UK) Limited represents or warrants its accuracy, and such information may be incomplete or condensed. All estimates and opinions in For the purpose of distribution to Institutional Clients, which are defined as those non-Retail Clients this document constitute our judgment as of the date of the document and may be subject to change falling within the UK Financial Services Authority’s categories of Professional Clients or Eligible without notice. We will not be responsible for the consequences of reliance upon any opinion or Counterparties, this document has been approved and issued by EFG Asset Management (UK) statement contained herein, and expressly disclaim any liability, including incidental or consequential Limited, which provides, manages and administers the products described herein. damages, arising from any errors or omissions. This document has been approved solely for distribution in the United Kingdom and is intended for The value of investments and the income derived from them can fall as well as rise, and past the private use of the clients and investors of EFG Private Bank Limited and EFG Asset performance is no indicator of future performance. Investment products may be subject to Management (UK) Limited – its publication or availability in any other jurisdiction or country may be investment risks, involving but not limited to, currency exchange and market risks, fluctuations in contrary to local law or regulation and persons who come into possession of this document should value, liquidity risk and, where applicable, possible loss of principal invested. inform themselves of and observe any restrictions. This document may not be reproduced or disclosed (in whole or in part) to any other person without our prior written permission. Issued to Institutional Clients by EFG Asset Management (UK) Limited, which is authorised and regulated by the Financial Services Authority. Registered No.7389746. Registered address: EFG This document does not constitute an offer to sell, solicit or offer to buy any investment product or Asset Management (UK) Limited, Leconfield House, Curzon Street, London W1J 5JB, United service, and is not intended to be a final representation of the terms and conditions of any product or Kingdom, telephone +44 (0)20 7491 9111. service. The investments mentioned in this document may not be suitable for all recipients and you should seek professional advice if you are in doubt. Clients should obtain legal/taxation advice suitable to their particular circumstances.21