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Citywire montreux 2013


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Citywire montreux 2013

  1. 1. Ross A PamphilonMulti Asset Class Credit (MACC)Montreux 22-24 May 2013
  2. 2. 2Wells Fargo Asset Management GroupWells Fargo &CompanyWells Fargo AssetManagement (WFAM)$452 billionECM is one of more than 30 distinctinvestment advisors in WFAM.Source: Wells Capital Management, as at 31st December 2012• Strong parental oversight• ECM manage money on behalf of Wells Fargo• 100% owned and consolidated
  3. 3. 33ECM• ECM is fully owned by Wells Fargo and operates as anautonomous boutique• ECM has a pure focus on fixed income with a speciality in credit– Founded in 1999– Extensive experience managing through numerous credit cycles including 2001-2002, the2008 financial crisis and the 2011-2012 European periphery challenges.• Experienced investment team of 40 professionals• High degree of transparency to investors, independent pricing and riskmanagement• ECM is rated High Standards with a stable outlook by Fitch under its AssetManager ratings (March 2013)$940billion undermanagementinvestmentprofessionals
  4. 4. 4What is Multi Asset Class Credit (MACC)?• Flexibility to allocate across the entire cash and derivative creditspectrum• Unconstrained approach to investing without being anchored to abenchmark index• Interest rate hedging with our preference for duration hedged being thestarting point allowing the manager to capture “intended” credit marketbeta• Currency hedged in order to capture the excess return from creditmanagement without the noise from currency markets distorting returns
  5. 5. 5What is Multi Asset Class Credit (MACC)?Active allocationUnconstrainedapproach toinvestingInterest ratehedgingMulti asset classcredit strategy Senior SecuredLoansGovernmentBondsAssetBackedBank CapitalCorporateBondsEuropeanEmergingMarketsHigh YieldHarness fullinvestmentprocess
  6. 6. 601234567Dec 1996 Dec 2001 Dec 2006 Dec 2011Traditional Fixed Income0%10%20%30%40%50%60%70%80%90%100%Dec 1996 Dec 2001 Dec 2006 Dec 2011Global Corporate IndexDuration Market WeightNon-FinancialsFinancialsConstrainedby…TrackingErrorBenchmarkDurationRating
  7. 7. 7How……you can generate returns in fixed income credit even if rates go up…you can benefit from the expertise of a large and dedicated investment team…your fixed income investment can work harder in a low yield environment
  8. 8. 8How do BBB spreads react to changes in interest rates?
  9. 9. 936 Month rolling correlation between 10-year yield andchanges in BBB spreads
  10. 10. 10024681012141618Dec 1980 Dec 1985 Dec 1990 Dec 1995 Dec 2000 Dec 2005 Dec 201030 year bull market for ratesUS 10yr treasury yield to maturity (%)How to protect returns in a rising rate environmentNon-Rate SensitiveInvestmentsDuration HedgedStrategiesSource: Bloomberg
  11. 11. 11Why is active allocation important?Source: ML Lynch Data (ER00, HEAD, EBSU) 31/12/2012, Credit Suisse Loan (Credit Suisse Western Europe) and Barclays ABS (ABS Bond Index ex AAA ) 31/12/2012. Merrill Lynchreturns are excess returns over swaps (no duration,) Floating rate Loans and ABS are total returns excluding Euribor.Because one credit asset class can’tdeliver great returns all of the timeKEY > > > >BestperformingWorstperformingCredit AssetClass2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Investment GradeCorporates-0.65% 2.32% 1.31% 0.19% 0.48% -2.14% -13.92% 10.38% 0.67% -4.18% 7.13%High Yield -15.33% 22.45% 9.39% 3.61% 8.12% -4.55% -42.91% 61.59% 10.34% -7.10% 18.02%Sub Financials -0.52% 3.42% 2.03% 0.72% 0.85% -4.21% -28.74% 19.16% 1.35% -14.53% 23.78%ABS n/a n/a 0.29% 0.57% 0.58% -7.41% -46.78% 8.73% 21.58% -5.27% 16.31%Loans -5.32% 9.74% 4.69% 3.28% 3.07% -3.20% -34.76% 46.25% 7.96% -1.83% 10.03%Why is MACC important?
  12. 12. 12ECM economic view –Low economic growth with political risk• Systemic tail risks have been contained as a result of the ECB’s Outright Monetary Transactions(“OMT”) programme• Eurozone expected to remain in recession until Q3/Q4 2013, leading to a modest contraction in GDPof -0.5% this year, before growth picks up to +1% in 2014. Growth in the US is more resilient withGDP growth expected to be in the +2% range in 2013 before rising to around +2.5% in 20143210-1%DEU GBR USA EURO2012 2013 2014Source: OECD Economic Outlook No.92 (database) OECD economic surveys: France 2013
  13. 13. 13European Systemic Risk• The OMT programme has successfully backstopped markets• Market reaction to events in Italy/Cyprus has been muted• Spanish/ Italian yields continue to stabilise• Imbalances in the TARGET2 cross border system are starting to reverse• Periphery countries moving to current account surpluses• Cyprus policy response was ad hoc but markets are relaxed about implications• Bank creditor/depositor burden sharing is moving up the political agenda• Tail risks are contained in Europe and the focus is shifting to the growth outlook• Modest economic growth combined with low interest rates provides a favourable nearterm environment for credit
  14. 14. 14ECM Investment Strategy – analysing the credit cycle• Different sectors of the economy are in very divergentstages in their respective credit cycle1. Corporates – Early signs of re-leveraging haveresurfaced due to increasing pressure onmanagement to reward shareholders. Idiosyncraticrisk increasing2. Financials – Four years into a multi-year re-regulatingand de-leveraging cycle. Both supply and demand forbank credit from remains under pressure3. Governments – Remain fiscally vulnerable. UScreating more growth than Europe but is yet to startprocess of fiscal consolidation4. Households – Continue to consolidate and slowlyrebuild balance sheets
  15. 15. 1525751251752252753251.2x1.4x1.6x1.8x2.0x2.2x2.4x2001 2003 2005 2007 2009 2011 2013IG spreadLeverageFig 1 Source: Bloomberg 30th March 2013Fig 2 Source: MS European Loans and Deposits Tracker 4th March 2013Different sectors of the economy in differentstages in the deleveraging cycle1.Non-Financial CorporatesA safe haven but single namedispersion risk is rising anddeleveraging is over2. FinancialsCapital increasing, liquidityimproving0510152008 2009 2010 2011 H112%US banks (common equity)European banks (Core Tier 1)1.251.301.351.401.452008 2009 2010 2011 H112European Bank loans/deposits ratio
  16. 16. 160204060801001201402003 2004 2005 2006 2007 2008 2009 2010 2011 2012*Germany France Italy SpainIreland Portugal Greece Euro 17US UKHousehold* Debt to GDP 2012Debtsecuritiesandloansasa%ofDifferent sectors of the economy in differentstages in the deleveraging cycle (cont.)3. GovernmentsAt very different stages of thedeleveraging cycle4. HouseholdsContinue to pay down debtFig 3 Source: DB, CITIFig 4 Source: World Economic Outlook (WEO) October 2012
  17. 17. 17Default rates - ECM expects only a modestincrease in still historically low defaultsSource: Moody’s Speculative Grade Monthly Default Report 28th February 2013• Global trailing speculative default rate currently at 2.7%• Default rates will stay well below the long-term average this year0%2%4%6%8%10%12%14%16%18%Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14US_Actual US_Baseline_Forecast Europe_Actual Europe_Baseline_ForecastLTM Spec Grade Default Rate (%) Defaults 2013 2012 Spec Grade Default Rate (%) Defaults 2012U.S. 3.28% 6 3.28% 43Europe 2.05% 4 1.80% 9Global 2.70% 11 2.65% 58
  18. 18. 18Credit asset class views• Investment Grade Corporates: Expected toremain a relative safe haven but fairly valued,watch event risk with increased creditdispersion• Constructive on selective subordinated andsenior financials• Positive on selective “money good” ABSportfolio exposures• Sub Investment Grade: Opportunistic. FavourSenior Secured Loans and better quality HighYield• ECM managed funds increased risk profiles inH2 2012 but pared risk in March 2013 in orderto enhance financial flexibilityAsset class SelectivelyreduceHold SelectivelyaddInvestment Grade Corporates Financials High Yield Senior Secured Loans Asset-Backed Securities 
  19. 19. 19ECM Investment ProcessModelPortfolioLivePortfoliosPEERREVIEWINVESTMENT STRATEGYGROUPMacro ViewsFundamental CreditResearchSECTOR REVIEWEconomic Cycle Credit CycleSecuritySelectionRelative ValueSector AnalysisMandateGuidelinesPortfolioManagerCalibrationLiquidityQuantitativeAnalyticsMarketTechnicals
  20. 20. 20Active allocation in action0%10%20%30%40%50%60%70%80%90%100%Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Dec 2011 Jun 2012 Dec 2012Asset BackedBank CapitalNon-Financial Corporate BondsFinancial Corporate BondsEmerging MarketsHigh YieldSenior Secured LoansSource: ECM. Data as at 28th March 2013
  21. 21. 21Fund Characteristics& ReferenceStrategy Profile
  22. 22. 22ECM Dynamic Credit Fund – Summary• ECM Dynamic Credit is a Total Return fund investing in Multi AssetClass Credit• ECM Dynamic Credit is UCITS compliant with daily liquidity• ECM Dynamic Credit expects to add value in all types of marketenvironment.• ECM aims to maximize return in a risk controlled framework– Objective over the cycle: Outperform BofA ML Euro Corporate index (ER00) (Hedged*)€5.1bnin total return creditstrategies*Hedged using futures
  23. 23. 23ECM Dynamic Credit Fund-Key characteristicsRisk Managed HedgedInterest rate *Currency Credit Default Liquidity Counterparty Country Political Inflation • The fund diversifies by allocating across different creditasset-classes – with risks tightly monitored from a volatilityand VaR perspective• Asset allocation is dynamically governed by macro-economics, market technicals and the credit cycle• Focus is on European corporate credit with a flexibility toinvest across global credit markets• Exploit relative value opportunities through securityselection and sector rotation driven by a conservative anddisciplined fundamentally driven research process• Interest rate duration is actively managed as a further leverto generate returns and hedge credit returns. Currency riskis hedged• Full transparency across asset allocation, security selectionand risk process* Duration is used strategically as a credit hedge
  24. 24. 24ECM Dynamic Credit Fund profileCharacteristics Risk Profile• Outperform BofA ML Euro Corporate index (ER00Hedged) over the cycle• Investment universe includes:• Asset Backed Securities• Bank Capital• Investment Grade Corporates• High Yield• EMEA Emerging Markets• Minimum Bond Fund Fitch score: BBB-• Obligor limit:– 5% of NAV in any one Investment Grade issuer– 3% of NAV in any one Non-Investment Grade issuer• Duration & currency hedged*Total Return Since Inception (bps) 257Ex Ante Volatility (bps) 284Sharpe Ratio 1.41Volatility Ratio to BofA ML Euro Corporate index (ER00) 0.93Factor Beta against BofA ML Euro Corporate index (ER00) 0.8599% Var 7.00%5 Standard Deviation Drawdown 14.20%Credit Spread (bps) 173Credit Duration (yrs) 3.36Yield To Worst (%) 2.38Source: ECM. Fund Snapshots. Data as at 30th April 2013Performance since inception: 14th December 2012*Duration is used strategically as a credit hedge
  25. 25. 25Asset class and GIIPS allocation shiftsSource: ECM. Fund Snapshots. Data as at 28th March 2013Allocation % of DENAV UCD UCD UCD UCD UCD UCD UCD UCD UCD DCF DCFAsset Class30 Dec201130 Mar2012Q1 Shift29 Jun2012Q2 Shift28 Sep2012Q3 Shift31 Dec2012Q4 Shift28 Mar2013Q1 ShiftAsset Backed 11.5% 9.5% -2.0% 7.1% -2.4% 7.0% -0.2% 6.9% -0.1% 7.7% 0.8%Bank Capital 12.4% 8.2% -4.2% 5.6% -2.6% 6.1% 0.5% 6.3% 0.2% 6.6% 0.3%Non-Financial Corporate Bonds 46.7% 48.8% 2.0% 50.9% 2.2% 58.3% 7.4% 48.1% -10.2% 42.6% -5.6%Financial Coporate Bonds 18.9% 16.7% -2.2% 11.3% -5.4% 16.3% 5.0% 24.8% 8.5% 25.7% 1.0%Emerging Markets 3.6% 2.7% -1.0% 2.8% 0.1% 3.1% 0.3% 6.8% 3.7% 7.3% 0.5%High Yield 5.6% 0.7% -4.9% -0.2% -0.8% 1.3% 1.4% 3.9% 2.6% 5.3% 1.4%Sovereign 0.0% -0.5% -0.5% 0.0% 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Senior Secured Loans 4.6% 3.5% -1.1% 3.6% 0.1% 3.0% -0.6% 3.0% 0.0% 0.0% -3.0%Grand Total 103.3% 89.6% -13.7% 81.2% -8.3% 95.1% 13.8% 99.9% 4.8% 95.3% -4.6%Country Risk30 Dec201130 Mar2012Q1 Shift29 Jun2012Q2 Shift28 Sep2012Q3 Shift31 Dec2012Q4 Shift28 Mar2013Q1 ShiftGreece - - - - - - - - - - -Ireland 0.5% 0.0% -0.5% 0.5% 0.5% - -0.5% 0.5% 0.5% 0.2% -0.3%Italy 3.5% 2.6% -0.9% 2.5% -0.1% 4.2% 1.7% 5.0% 0.8% 5.6% 0.6%Portugal 0.8% 0.8% -0.0% 0.4% -0.4% - -0.4% - - - -Spain 5.5% 4.3% -1.2% 2.6% -1.7% 2.4% -0.2% 3.1% 0.7% 3.2% 0.1%Grand Total 10.3% 7.7% -2.6% 6.0% -1.7% 6.6% 0.6% 8.6% 2.0% 9.0% 0.4%ECM Dynamic Credit Fund was launched on 14th December 2012, prior to this Universal Credit S.A. –Compartment D (“UC-D”)was used as the reference strategy
  26. 26. 26MACC track recordTotal Return MACC Absolute Return MACCAnnualised Since Strategy Inception31st December 2011 – 31st January 2013Return Volatility CorrelationAbsolute Return Credit StrategyRelative European Value S.A.10.3% 2.5% 1.00EURO CORPORATE CREDIT 7.4% 1.9% 0.57EURO HIGH YIELD 18.7% 5.3% 0.38S&P 500 23.6% 9.8% 0.19EURO STOXX 50 16.6% 16.8% 0.00GERMAN BUND 2.5% 2.8% 0.05GSCI INDEX 5.1% 13.2% 0.14Annualised Since Strategy Inception12th December 2008 – 31st December 201236 monthsAnnualisedSince Inception12thDecember 2008AnnualisedTotal Return Credit StrategyUniversal Credit D4.58% 10.08%ER00 (hedged*)BofA ML Euro Corporate index1.08% 3.30%Relative performance 3.50% 6.78%Launched 14th December 2012April YTDSinceInceptionECM Dynamic Credit Fund 1.20% 2.01% 2.57%ER00 (hedged**)BofA ML Euro Corporate index0.79% 1.17% 1.56%Relative performance 0.41% 0.84% 1.01%Launched 20th February 2013April YTDSinceInceptionECM Absolute Return Credit Fund 0.49% 0.58% 0.58%Euribor 0.01% 0.04% 0.02%Relative performance 0.48% 0.54% 0.56%Source ECM as at 30th April 2013 *Hedged using swaps **Hedged using futures
  27. 27. 27How……you can generate returns in fixed income credit even if rates go up…you can benefit from the expertise of a large and dedicated investment team…your fixed income investment can work harder in a low yield environmentWith MACC…With MACC…With MACC…
  28. 28. 28Appendix
  29. 29. 29Strategy FundTotal Return Multi Asset Class CreditECM Dynamic Credit FundECM Short Duration Credit Fund*Absolute Return Multi Asset Class Credit ECM Absolute Return Credit FundTotal Return Single Asset Class CreditECM Senior Secured FundECM Financials FundECM LoansHedge Fund ECM Special Situations FundECM product offering by strategy* European Diversified Credit 1-5yr Fund
  30. 30. 30Ross Pamphilon, 23 (14)Co-Chief Investment OfficerStephen Zinser, 34 (14)Chief Executive Officer / Co-Chief Investment OfficerInvestmentStrategyRates & TreasuryManagementPortfolio Management& Credit ResearchPortfolio ManagementAlternative InvestmentsStephen Zinser, 34 (14)CEO/CO-CIORoss Pamphilon, 23 (14)Co-Chief Investment Officer &Portfolio ManagerFrances Hutchinson, CFA 28 (9)Head of Corporate Strategy &Business DevelopmentAlastair Thomas, 24 (11)Head of Rates & Treasury Mgt.Matthew Craston, 32 (9)Head of Alternative InvestmentsDuncan-Warwick Champion, 22 (2)Head of Corporate ResearchSahil Khan, 5 (2)Senior Quantitative AnalystAlastair Thomas, 24 (11)Head of Rates and Treasury Mgt.David Jones, 18 (5)Sr. Rates ManagerAdam Hicks, 3 (6)Treasury ManagerChristopher Burrows, 2 (2)Jr. Rates ManagerLauren Johnson, 3 (3)Jr. Treasury ManagerDerek Hynes, 15 (8)Lead Portfolio ManagerHenrietta Pacquement, CFA 12 (7)Lead Portfolio ManagerJens Vanbrabant, CFA 14 (6)Lead Portfolio ManagerAndre Mazzella, CFA 17 (3)Lead Portfolio Manager, High YieldAlex Temple, 12 (7)Portfolio ManagerQuantitative Analytics TeamSahil Khan, 5 (2)Senior Quantitative AnalystSuzie-Lea Coltham, 2 (2)Quantitative AnalystDr Paul Keddie, 17 (7)Senior DeveloperAndy Quinn , 14 (7)DeveloperABSAndrew Lennox, 13 (9)Lead Portfolio Manager, ABSJonathan Wyles, CFA 11 (5)Asset Class Specialist PortfolioManager, ABSMaddi Rowlatt, 11 (4) /Anant Ramgarhia ,13 (2)Asset Class Specialist, ABSCorporates (IG / HY / EM)Duncan Warwick-Champion, 22 (2)Head of Corporate ResearchMichie Yana, CFA 23 (9)Sr. Investment AnalystHenry Craik-White, 10 (2)Sr. Investment Analyst, High YieldGeorge Flynn, CFA 11 (11)Investment Analyst, CorporatesSam Barker, CFA 4 (5)Investment AnalystRhys Foulkes, CFA 6 (2)Investment AnalystLauren Millspaugh, 4 (4)Jr. Investment AnalystAdam Gibson, 3 (6)Credit TraderValerie Keller-Crochet, 5 (1)Specialist Portfolio ManagerPaul Davey, CFA 0 (0)Investment AnalystFinancials / SovereignsSatish Pulle, 17 (3)Lead Portfolio Manager, FinancialsRobert Montague, 20 (2)Sr. Investment Analyst, FinancialsAndy Li, 8 (5)Specialist Portfolio Manager,FinancialsMatthew Craston, 32 (9)Head of Alternative InvestmentsLoansTorben Ronberg, 26 (8)Head of LoansAlex Woolrich, 12 (7)Portfolio ManagerSam McGairl, 11 (6)Portfolio ManagerStuart Fuller, 12 (11)Portfolio ManagerSally Tankard, 23 (2)Sr. Investment Analyst , LoansSpecial SituationsSohail Malik, 13 (3)Sr. Portfolio ManagerAmit Staub, 8 (4)Portfolio ManagerInvestment TeamNumber following name = Years in InvestmentNumber in brackets = Years at ECMFigures rounded to nearest full yearCFA = Chartered Financial Analyst^ = Maternity cover As at March 2013
  31. 31. 31Investor breakdownAUM by Investor TypeInvestor Type No. of Clients AUM in USD (mm) AUM as %Banks 41 3,565 40%Insurance 49 2,414 27%Pension Funds 30 1,585 18%Asset Managers 16 421 5%Corporates 1 178 2%Other UCITS n/a 755 8%Grand Total 137 8,918 100%AUM by GeographyGeography No. of Clients AUM in USD (mm) AUM as %Continental Europe 106 4,053 45%UK & Ireland 11 958 11%Americas 12 2,939 33%Asia 8 213 2%Other UCITS n/a 755 8%Grand Total 137 8,918 100%All figures provided as a March month end valuationOther UCITS denotes ECF II InvestorsBanks 40%Insurance 27%Pension Funds 18%Asset Managers 5%Corporates 2%Other UCITS 8%Continental Europe 45%UK & Ireland 11%Americas 33%Asia 2%Other UCITS 8%
  32. 32. 32UCD Total return performance vs. marketsince inception to 31/12/12Periodic Total Returns (floating rate) 36 monthsSince Inception(48 Months)3 month 12 month Annualised AnnualisedUCD € 2.29% 9.73% 4.58% 10.08%ER00 (hedged)BofA ML Euro Corporate index1.81% 7.13% 1.08% 3.30%Outperformance/(Underperformance) 0.48% 2.60% 3.50% 6.78%Source: ECM, BofA ML, 31st December 2012Bank of America European Corporate index (ER00) used for performanceTotal return, based at 100 at inception90100110120130140150Nov 08 May 09 Nov 09 May 10 Nov 10 May 11 Nov 11 May 12 Nov 12Reference IndexMACC
  33. 33. 33Portfolio ConstructionInvestments - Current and FutureCurrent opportunities• Strong countries / strong balance sheets e.g. Rabobank, HSBC, Standard Chartered, ING, Lloyds, Danske• Global banks (US, UK domiciled), Selected EU Banks:– Covered bonds, senior, selected Tier II– Selected bank Tier 1, CoCo• Selected peripheral senior, covered bonds e.g. Caixabank, Banco Espirito Santo, Bankinter, Intesa, Unicredit• Selected insurers – Senior, Tier 2, Tier 1 e.g. Ageas, Delta Lloyd, Aviva, Mapfre, Zurich• Asian financial institutions Tier 2, Tier 1 e.g. Sumitomo Mitsui, Nippon Life• Selected shorts in the peripheryFurther medium term opportunities (next 12-24 months)• As peripheral crisis subsides, we expect to find further value in the periphery in:– Covered, Senior, LT2, selected Tier 1, Subordinated Insurance e.g. Intesa, Unicredit, BBVA, Santander,Caixabank, Bankinter, Banco Popolare• Asian financial institutions senior, Tier 2: HDFC, SBI, ICICI• Selected shortsLonger term opportunties• Peripheral and Asian bank and insurer Tier 2, Tier1, coco’sSource: ECM. 28th September 2012
  34. 34. 34ECM AssetManagement Limited34 Grosvenor Street, London W1K 4QUT +44 (0) 20 7529 7400F +44 (0) 20 7529 7411www.ecm.comECM is the trading name of ECM Asset Management Limited which is authorised and regulated by the U.K. Financial Services Authority.This document is:• issued by ECM for information only;• not investment advice;• confidential and should not be disclosed other than to your professional advisers; and• directed at persons (“Investment Professionals”) having professional experience in matters relating to investments, and any investment orinvestment activity to which this document relates is available only to and will be engaged in only with such persons.If you are not an Investment Professional you should not read this document or participate in any meeting or other communication relating to it.ECM accepts no liability for and gives no warranty or guarantee and makes no representation relating to the performance of any investments referred to inthis document or to the accuracy and/or completeness of the information contained in this document. Any information contained in this document relating toany securities or issuer thereof is subject to the offering document relating thereto and does not constitute an offer to sell, or a solicitation of an offer topurchase, interests in the funds. Such an offer or solicitation can only be made pursuant to the applicable offering document, and any summaries containedherein are qualified in their entirety by reference to the more detailed discussion contained in each such offering document.This document may be distributed only to persons permitted to receive it under applicable law and may not be distributed or passed to any person in anyjurisdiction in which such distribution would violate any applicable law.This document may not be distributed other than: (1) within the USA, to investors that are Accredited Investors within the meaning of Regulation D underthe U.S. Securities Act of 1933; and (2) outside the USA, to non-US persons in offshore transactions in reliance on Regulation S under the U.S. SecuritiesAct of 1933.ECM and its affiliates do not provide tax advice. Please note that: (1) any discussion of tax matters contained in this document (including any attachments)cannot be used by you for the purpose of avoiding tax penalties; (2) this document was written to support the promotion or marketing of the mattersaddressed herein; and (3) you should seek advice based on your particular circumstances from an independent tax advisor.ECM is authorised by the Financial Services Board of South Africa as a Financial Service Provider.