Stanley Gibbons Investment Presentation - Nov 2012


Published on

The presentation that featured at the Stanley Gibbons Investment Open Day on 14th November.

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

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Stanley Gibbons Investment Presentation - Nov 2012

  1. 1. Stanley Gibbons Ltd 399 Strand London WC2R London – Jersey – Guernsey - Hong Kong
  2. 2. The financial landscape Trust Quality Expertise Longevity
  3. 3. The financial landscapeGlobal economic fragilityGeo-political shifts (Israel, Korea, TrustNorth Africa, Iran)Inflationary pressure - even in Asia; QualityChinese economy slowingVolatility of traditional asset classes ExpertiseIncreasing regulation in US & ChinaMaturing investment climate – investors Longevitydemanding moreReal estate and equities still corebut discernible shift towardstangible assetsImportance of wealth preservationincluding for future generationsChanging priorities after crash of2008/09
  4. 4. The financial landscape Trust Quality Expertise Longevity
  5. 5. BBC’s Nick Robinson Trust Quality Expertise Longevity “Things are going to get worse, a lot worse, before they get better…”
  6. 6. Charles J. Windass Trust Quality Expertise Longevity “The numbers don’t lie…”
  7. 7. “The numbers don’t lie…” Trust 10.1% Quality Expertise Longevity
  8. 8. “The numbers don’t lie…” Trust 13.4% Quality Expertise Longevity
  9. 9. “The numbers don’t lie…” Trust 13.1% Quality Expertise Longevity
  10. 10. “The numbers don’t lie…” Trust ZERO Quality Expertise Longevity
  11. 11. A surprising asset class Trust The world’s most valuable commodity by weight… Quality 325 x per gram more expensive… Than weapons’ grade plutonium Expertise Longevity What is the world’s most expensive stamp worth? GBP £ 1,600,000
  12. 12. Coining it in Trust Better than gold… Quality 1795 Flowing Hair Dollar ‘A national treasure…’ Expertise Longevity What is the world’s most expensive coin worth? GBP £ 5,100,000
  13. 13. Great Britain SG 43, 1864 £550,000 Trust 1864 1d Rose red Pl.77 Quality Only nine examples of this very rare plate have been recorded This is the adjoining stamp to the example Expertise held in the British library Longevity
  14. 14. Great Britain SG 2, 1840 £120,000 Trust 1840 1d Black Pl.4. four margin block The worlds most iconic stamp Quality From £300 to £300,000 The ultimate collector piece Expertise Longevity
  15. 15. China SG 2, 1878 £85,000 Trust 1878 thin paper, 2.5mm spacing 3ca red- brown Quality Complete sheet of twenty-five from setting I A spectacular and very rare large dragon Expertise piece. Longevity
  16. 16. China SG 2968, 1980 £1,300 Trust 1980 8f Year of the Monkey The first Chinese New Year stamp issued by Quality the People’s Republic Catalogued at £1,500, having jumped in Expertise value from £275 in just 5 years. Popular with Chinese collectors because of its colour and the number 8 (the face value Longevity is 8f). Coincidentally, 8 million printed.
  17. 17. Wolfgang Amadeus Mozart £150,000 Trust Mozart manuscripts are very hard to obtain and this particular example is Quality in near perfect condition A rare, highly desirable investor piece Expertise Longevity
  18. 18. King Edward IV document, 1468 £175,000 Trust A remarkable original engrossed royal proclamation. Quality Signed by the King at the close as ‘EdowardR’ (thought to be the French form of his Expertise signature) and with stated warranty of Parliament . Documents written by Edward Longevity IV are the earliest royal ones that a collector can ever realistically expect to obtain.
  19. 19. But there’s a problem isn’t there… Trust Quality Expertise Longevity R.I.P.
  20. 20. Trends in prestige collectibles marketRising number of new collectors andinvestors globally – ‘Baby Boomers’ TrustSupply-demand economics QualityNew breed of ‘collectors’ – High Net WorthIndividuals ExpertiseIncrease in collectors trading at auction(from Ebay to Sothebys) LongevityImpact of internet on liquidity, knowledgeand tradabilityEmerging world markets » China (20 million collectors) » India » Brazil
  21. 21. Trends in rare stamp marketThe Bloomberg-listed GB30 Index of rare stamps has delivered compoundannual growth of over 10% per annum over past 50 years Trust Quality Expertise LongevityThe GB 250 Index shows a CAGR of 13.4% over the last 10 years
  22. 22. “The numbers don’t lie…” Trust 38.6% Quality Expertise Longevity
  23. 23. The 5 Golden Rules 1. Rarity Only invest in collectibles where there are a small number of surviving examples or in unique pieces Trust 2. Condition Quality Only invest in the best quality examples in existence 3. Authenticity Expertise Ensure authenticity can be proven – a certificate is only as good as the person or body issuing it. Seek items with documented history and Longevity provenance. 4. Liquidity Only invest in areas where there is a healthy number of collectors 5. Price Classic value investment principle – seek to buy at below fair value23
  24. 24. Key growth areasThe classics from Great Britain – top rarities TrustGB modern errors – earn from others’ mistakes QualityHistorical documents & manuscripts ExpertiseChinese modern “PRC” issuesKey rarities from British Commonwealth Longevity(e.g. India, Malaya, Borneo)Regional pride
  25. 25. Perceived risksLack of knowledge TrustLiquidity QualityTransparency ExpertiseAuthenticityLarge trading spreads LongevityChargesConflicts of interestStorage and insurance
  26. 26. Trust + expertiseA global brandA British institution since 1856 TrustHolder of the Royal Warrant since 1914 QualityInternationally recognised expertise ExpertiseA lifetime guarantee of authenticity Longevity “This is a small company with a big asset: its brand is imbued with an unblemished reputation for expertise and honest dealing.” The Times
  27. 27. What we offer you? 3 primary investment products Trust Capital Growth Plan - straight ‘buy and hold’ – hassle free investing for the Quality medium to long term Portfolio & Platinum Portfolio Builder - Expertise build it and manage it – you make regular payments to suit you to build a growth Longevity portfolio over time New Flexible Trading Portfolio - dynamic trading option where you can add to your portfolio and sell items when you choose.
  28. 28. What we offer you?We provide for you: A balanced, bespoke portfolio for the best Trust chance of both security and growth Quality An investment structure to suit your needs Outsourcing of expertise Expertise A dedicated investment portfolio manager Longevity Free annual valuations, storage & insurance Portfolios under management are subject to a bi-annual independent audit
  29. 29. Portfolio Growth Plan – IllustrationThe table below shows your potential returns assuming an initial investment of£100,000: Trust 5 year 10 year Quality Capital Growth Capital Growth Plan Plan ExpertiseSum invested at start £100,000 £100,000Value at end* £161,051 £259,374 LongevityOur commission** £12,210 £31,874Your return £148,840 £227,499% Growth 49% 127% * Based on annual 10% compound return ** 20% of profit
  30. 30. How to invest – a simple process With your portfolio manager, decide on the most appropriate product, time horizon and amount to invest Trust Decide on portfolio split between rare GB stamps and/or rare coins and/or rare Chinese stamps and/or rare signatures (dependent on Quality availability) Expertise Once presented with your portfolio and rationale, agree and confirm it so the material can be invoiced and removed from stock; review Longevity contract details Complete standard KYC/CDD (proof of ID, source of funds etc) Provide funds Contract is then issued and portfolio is sent to our vaults for safe- keeping30
  31. 31. Rare Stamp Investment Fund GB rare stamp fund currently being set up as a 5 year closed-ended Jersey entity Trust To be authorised in Jersey as a Jersey Private Placement Fund under the Jersey Private Fund Guide issued by the JFSC Quality The likely level of the fund will be £10 million. The minimum amount Expertise targeted is £5 million and the maximum is £15 million. Longevity Minimum investment required per investor to be £250,000 Target launch date of 1st quarter 2013 Provides the opportunity to become involved in a regulated investment within the collectibles market and part ownership of much larger collection offering wider diversification31
  32. 32. What the FT, Sunday Times & and IFA say Trust Quality htt v=T2qSR0kE2j4ps:// Expertise v=T2qSR0kE2j4 Longevity
  33. 33. At your service Trust Quality Expertise Keith Heddle, Investment Director Longevity 0845 026 7170
  34. 34. Stanley Gibbons Ltd 399 Strand London WC2R London – Jersey – Hong Kong