04 13 0069_uksso_citywire retreat_pres


Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

04 13 0069_uksso_citywire retreat_pres

  1. 1. OLD MUTUAL GLOBAL INVESTORS (UK) LIMITED+44 (0)20 7332 7500 OMGLOBALINVESTORS.COM Building better solutionsOLD MUTUALUK SMALLER COMPANIESFor professional clients only in the UK. Not for distribution to retail clients.April 2013Citywire South West 2013
  2. 2.  Team Why UK Small Cap? Why us?1AGENDA03/12/U6397
  3. 3. 12 years at Old Mutual Global InvestorsOld Mutual UK Specialist Equity Fund2EXPERIENCE, STRENGTH IN DEPTH AND CONTINUITYASHTON BRADBURYHEAD OF EQUITIES/FUND MANAGER11 years at Old Mutual Global InvestorsOld Mutual UK Smaller Companies Fund &Old Mutual UK Select Smaller CompaniesFocus FundDANIEL NICKOLSHEAD OF DESK/FUND MANAGER12 years at Old Mutual Global InvestorsOld Mutual UK Dynamic Equity Fund10 years at Old Mutual Global InvestorsOld Mutual UK Mid Cap FundRICHARD WATTSFUND MANAGERSupported by a teamof analystsTIM SERVICERESEARCH ANALYST/DEPUTY FUND MANAGEROld Mutual UK Specialist Equity Fund5 years Old Mutual Global InvestorsNICK WILLIAMSONRESEARCH ANALYST/DEPUTY FUND MANAGER4 years at Old MutualGlobal InvestorsUK Mid & Small Cap teamThe highly rated, longestablished Old Mutual UKsmall and mid cap team havewon over 13 awards over thelast 5 yearsLUKE KERRFUND MANAGERFE ALPHA MANAGER RATING 2013Daniel Nickols and Richard Watts are Citywire A rated for their risk-adjusted performance for the periods 31/03/2010 to 31/03/2013. An S&P Capital IQ fund grading represents an opiniononly and should not be relied on when making an investment decision. Past performance is not indicative of future results. Currency exchange rates may affect the value ofinvestments. A long-term grading denotes a fund that has achieved an S&P Capital IQ fund grading for five or more consecutive years and continues to hold a grading. Copyright ©2013 by McGraw-Hill international (UK) Limited (S&P), a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved.04/13/0069
  4. 4. 3OLD MUTUAL’S AWARD-WINNING UK EQUITY SUITEUK small and mid cap teamStrong performance across the investment cycleRATING 1YR 3YR 5YRSince fundlaunchStrategy S&P OBSR RSM % Quartile % Quartile % Quartile % QuartileOld Mutual UK Select Mid Cap FundManager: Richard Watts since 01/01/09Fund launch: 25/02/02UK mid cap 29.5 1 58.3 1 70.7 1 357.0 1Benchmark: FTSE 250 ex ITs Index 26.1 52.6 67.9 254.9Old Mutual UK Select Smaller Cos FundManager: Daniel Nickols since 01/01/04Fund launch: 12/02/01UK smallcap22.5 2 61.1 3 70.1 2 409.3 1Benchmark: Numis Smaller Cos ex ITs Index 23.5 57.1 73.0 167.2Old Mutual UK Select Smaller Cos Fund (Dublin)Manager: Daniel Nickols since 01/01/09Fund launch: 21/01/02UK smallcap24.1 2 65.4 2 78.2 1 512.3 1Benchmark: Numis Smaller Cos ex ITs Index 23.5 57.1 73.0 219.6Old Mutual UK Dynamic Equity FundManager: Luke Kerr since 01/07/09Fund launch: 01/07/09UK equitylong/short26.7 1 69.5 1 - - 115.7 1Benchmark: FTSE 250 ex ITs Index 26.1 52.6 67.9 114.9Source: Morningstar bid to bid, net income reinvested, all periods to 29/03/201304/13/0069
  5. 5. 4SMALL CAPS (NUMIS SMALLER COMPANIES EX ITS)HAVE OUTPERFORMED LARGE CAPS (FTSE 100)Source: Morningstar (see important information). Bid to bid, net income reinvested, sterling terms.*Period from launch date 29/02/2001**Period from fund launch to 29/03/2013Period FTSE 100Numis Smaller Companiesex ITs indexYTD 9.9 12.32012 10.0 29.92011 -2.2 -9.12010 12.6 28.52009 27.3 60.72008 -28.3 -40.82007 7.4 -8.32006 14.4 28.02005 20.8 27.82004 11.3 20.72003 17.9 43.02002 -22.2 -23.32001* -14.4 -17.0Cumulative* 59.5 167.204/13/0069
  6. 6. -150-50501502503504502002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012% Top 20 average returnBottom 20 average returnBenchmark: Numis Smaller Companies Index The small cap index is more dynamic than the large cap,offering new opportunities at a more frequent rate Small cap companies offer greater internationalexposure than generally perceived Small cap universe offers a tremendous range of stockpicking opportunities5WHY SHOULD YOU CONSIDER A SMALL CAP FUND?UK SMALL CAPS OFFER SIGNIFICANT OPPORTUNITY TO ADD VALUETHROUGH STOCK PICKINGSource: Numis. Top and bottom 20 stocks are drawn from those that were included in the benchmark at both the start and end of each discreet period.04/13/0069
  7. 7. Fwd PE ex loss (x) Fwd EPS growth (%)FTSE All-Share Index 11.7 7.7FTSE 100 Index 11.5 7.4FTSE Mid 250 Index 13.3 9.4FTSE Small Cap Index 11.3 7.2Numis Smaller Companies ex ITs index 12.4 6.46MARKET VALUATION AND EARNINGS GROWTHMARKET WEIGHTED AGGREGATESMid and small cap valuations well supportedSource: Peel Hunt, as at 15/04/201304/13/0069
  8. 8. 7VALUATION MULTIPLESSTILL BELOW LONG-TERM AVERAGESource: Thomson Reuters Datastream as at 10/04/201351015202551015202503 04 05 06 07 08 09 10 11 12 13(x)FTSE 100 12m fwd P/E FTSE All Share long-term average FTSE 250 12m fwd P/E Numis Smaller Companies Index (12m fwd P/E)04/13/0069
  9. 9. 8WE HAVE OUTPERFORMED THE NUMIS SMALLERCOMPANIES EX ITS INDEX SINCE LAUNCHSource: Morningstar (see important information). Bid to bid, net income reinvested, sterling terms.*Period from launch date 29/02/2001**Period from fund launch to 29/03/2013Period FTSE 100Numis Smaller Companiesex ITs indexOLD MUTUAL UK SMALLERCOMPANIES FUND Quartile**YTD 9.9 12.3 11.6 22012 10.0 29.9 27.1 22011 -2.2 -9.1 -8.9 22010 12.6 28.5 34.1 22009 27.3 60.7 39.2 42008 -28.3 -40.8 -32.8 12007 7.4 -8.3 0.0 12006 14.4 28.0 38.1 12005 20.8 27.8 34.6 12004 11.3 20.7 27.4 12003 17.9 43.0 45.6 12002 -22.2 -23.3 -12.7 12001* -14.4 -17.0 3.0 1Cumulative* 59.5 167.2 409.3 104/13/0069
  10. 10. 9A BALANCED APPROACHBOTTOM UPANALYTICAL FACTORSTOP DOWNANALYTICAL FACTORSINTERPRETATION• Management• Business profile• Financial position• Economic growth• Interest rate cycle• Extreme events• Industry trendsVALUATIONBUY/SELL/HOLDWHERE WILL THE INVESTMENT RETURNCOME FROM?MAKE A DECISIONKEY CRITERIA – the potential for• Sustained above average growth• Profit upgrades• A re-rating03/12/U6400
  12. 12.  Small caps are a dynamic and diverse asset class Valuations attractive Experienced team Proven process11CONCLUSION01/13/0059
  14. 14.  Current size £586m 108 holdings (typical range 90–110) Typical holding size 0.5–2.5% Typically no holdings to exceed 5% Investments will usually have market capitalisations no greater than the largest company inthe Numis Smaller Companies ex ITs index at the time of initial investment13OLD MUTUAL UK SMALLER COMPANIES FUNDSource: OMGI as at 29/03/201304/13/0069
  15. 15. Period Fund % Sector average % Quartile rank1 year 22.5 18.6 23 years 61.1 55.4 35 years 70.1 57.1 214PERFORMANCEOLD MUTUAL UK SMALLER COMPANIES FUND5 YEAR PERFORMANCE VS SECTORAVERAGECUMULATIVE PERFORMANCE12 months to Fund % Sector average % Quartile rank31/03/12 22.5 18.6 231/03/11 4.7 1.2 231/03/10 25.6 29.4 331/03/09 52.7 59.2 331/03/08 -30.9 -36.5 1DISCRETE PERIOD PERFORMANCESource: Morningstar. Bid to bid, net income reinvested, sterling terms. Cumulative performance to 29/03/20134060801001201401601802008 2009 2010 2011 2012 2013Old Mutual UK Smaller Companies FundIMA UK Smaller Companies (sector average)Numis Smaller Companies Index (benchmark)04/13/0069
  16. 16. This communication provides information relating to funds known as Old Mutual UK Smaller Companies Fund (the “Fund”). This communication isissued by Old Mutual Global Investors (UK) Limited (trading name Old Mutual Global Investors), a member of the Old Mutual Group. Old MutualGlobal Investors is registered in England and Wales under number 02949554 and its registered office is 2 Lambeth Hill London EC4P 4WR. Old MutualGlobal Investors is authorised and regulated by the Financial Conduct Authority (“FCA”) with FCA register number 171847 and is owned by OldMutual Plc, a public limited company limited by shares, incorporated in England and Wales under registered number 3591 559.The Funds are also regulated by the FCA and therefore Old Mutual Global Investors may promote the Fund to the public. This communication hasbeen prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor mayrequire in order to make a decision as to whether to invest in the Fund. Nothing in this document constitutes a recommendation suitable orappropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be madewithout first reviewing the prospectus and the key investor information document of the Fund which can be obtained fromwww.omglobalinvestors.com.Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down aswell as up and investors may not get back the amount originally invested. Exchange rates may cause the value of overseas investments to rise or fall.OMGI 04/13/006915IMPORTANT INFORMATION04/13/0069