DuraWealth. Investing in a Fast Transforming World DW Transformative & Disruptive Innovation Equity Tracker. June 2017

Transcription

1 DuraWealth Investing in a Fast Transforming World DW Transformative & Disruptive Innovation Equity Tracker June 2017

2 Meeting future market needs thanks to Innovations We live in a fast transforming world Since over 250 years, the 1 st, 2 nd and 3 rd Industrial revolutions lead to the increase of life quality and wealth creation Today, the global economy lives a structural transformation linked to the 4 th Industrial revolution Industrial Revolution 4.0 from WEF Video Clip DuraWealth 2 of 12

3 E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E Meeting future market needs thanks to Innovations Projected economic impact of Internet of Things i.e. connected physical objects of 2.7 to 6.2 trillion USD by 2025E and with growth rates of 15%+ p.a. 3-5x higher growth rates than the global economic growth Projected economic impact of IoT by 2025 [USD trillion] McKinsey (low grow scenario) McKinsey (high grow scenario) Gartner Cisco IDC (IoT spending) GDP of Germany at 2% CAGR Selected Industry 4.0 elements Source: McKinsey, Gartner, IDC, LAM, IoT Analytics, industry data DuraWealth 3 of 12

4 DW Global Disruptive Innovation Index Extracting Value from Global Equities through Innovation and Technology Screening Systematic Investment Process since a decade Step 1: Selection of multi-sector markets linked to the Transformative & Disruptive Innovation Selection of the related industries & sectors Step 2: Sector allocation in the related markets DW Systematic Screening of transformative technologies Step 3: Systematic screening of firms (MSCI World) with transformative technologies SRI filter: Exclusive firms in tobacco, alcohol, military, gambling, adult entertainment, nuclear Step 4: Quant Filter Market Cap & Liquidity & Volatility & ESg Step 5: Index 30 stocks Source: 1 SRI denotes Socially Responsible Investing DuraWealth 4 of 12

5 Meeting Future Needs with DuraWealth equity indexes Key Drivers: Meeting Future Needs Growing population & demand for better life: Targeted health care and drug delivery Resource imbalance: 1.3 bn people without electricity, 0.8 bn people undernourished Smart cities & technologies: Smart materials, buildings, grids, clean tech, big data, IoT DW Systematic Screening of transformative products in related sectors to build enhanced investment portfolios Life science Targeted drug delivery Materials with smart functionalities Tools for automation, smart engineering IT & smart devices, connected world Environment & smart cities & clean tech Actively managed DW Global Disruptive Innovation Index DW Global Disruptive Innovation Tracker Certificate Source: UN, OECD, McKinsey, DuraWealth DuraWealth 5 of 12

6 DW Systematic Screening of transformative products Extracting Value from Global Equities through Innovation & Technology Screening Companies producing transformative technologies are included in the DW Global Disruptive Innovation Certificate Portfolio These technologies allow for saving of ± 30% in electricity, water, heating and natural resources Efficient Use of Resources Positive Societal Impact 5 sectors 20+ application areas (A1 ) 30+ transformative technologies 60+ companies 1 Environment Smart Home Connected appliances Smart fridges, lights 2 Materials Wearables Composites Smart glasses, watches A1 Life Science Connected Health Genomics Non-invasive cures Inf. Technology 2D/3D IT-architectures Quantum computing Tools Electron Microscopes Photolithography Automation. Industrial Internet Remote asset & car control 3D printing A2 Source: IEA, OECD, IoT Analytics, industry data Smart Grids & City Smart metering Smart environ. mgmt. Time DuraWealth 6 of 12

7 DW Global Disruptive Innovation Tracker (AMC) - Summary The DW Global Disruptive Innovation Index tracks performance of 30 listed stocks, with established quantitative methods since 07/2007, and focused on firms operating in the areas of transformative technologies, regrouped in five sectors: life sciences, tools, materials, environment and IT This Index weighting is UCITS-compliant, rebalanced twice a year. The Tracker replicates the Index by direct investing in the thirty selected companies An achieved outperformance over - Key index peers incl. MSCI, S&P, SGI Indexes - Key asset classes: MSCI World Equity, BB Commodity, HFRX Hedge Funds, S&P Private Equity - The Index is calculated daily since 07/2013 and features real track record Country allocation Currency allocation Sector (ICB) allocation Stocks top 5 USA Japan Germany UK Taiwan 33.5% 26.1% 13.4% 10.4% 6.8% USD JPY EUR 20.3% 26.1% 43.4% Health Care Technology Consumer Goods 30.4% 26.7% 16.5% Tesla Hitachi High-Tech Asml Holding 3.7% 3.6% 3.6% South Korea Netherlands Denmark 3.4% 3.3% 3.2% GBP DKK 6.8% 3.4% Basic Materials Industrials 16.6% 9.9% Mobileye Alexion 3.5% 3.5% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% 0% 25% 50% 3.0% 3.3% 3.5% 3.8% 4.0% Source: FIS (USD, as of ), DuraWealth DuraWealth 7 of 12

8 01/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /2017 Performance of DW Global Disruptive Innovation Index Longer Horizon Excess return of >8% - 10% p.a. vs. MSCI World Equity & Nasdaq Comp since 01/2010 DW Global Disruptive Innovation Index (TR) Ann. Return (top bars) Ann. Risk (bottom bars): 01// present [USD] 14.7% 18.7% Performance since 01/2010 [USD] FTSE Environ. Opportunities 100 Index MSCI World AC Nasdaq Comp. 70/30 (TR) 7.0% 10.7% 14.2% 15.9% % MSCI World Equity AC Index (NTR) 13.9% 0% 5% 10% 15% 20% DW Global Disruptive Innovation Index (TR) MSCI World AC Nasdaq Comp. 70/30 (TR) MSCI World Equity AC Index (NTR) FTSE Environ. Opportunities 100 Index DW Global Disruptive Innovation Index (TR) Ann. Return (top bars) Ann. Risk (bottom bars): 01// present [CHF] 17.7% 18.2% Performance since 01/2010 [CHF] FTSE Environ. Opportunities 100 Index 6.1% 18.6% MSCI World AC Nasdaq Comp. 70/30 (TR) 9.7% 18.2% MSCI World Equity AC Index (NTR) 7.4% Source: FIS, DuraWealth (daily data, rounded, as of ) 17.6% 0% 5% 10% 15% 20% DW Global Disruptive Innovation Index (TR) MSCI World AC Nasdaq Comp. 70/30 (TR) MSCI World Equity AC Index (NTR) MSCI Global Environment Index (P) DuraWealth active 8 of 12

9 Why DW Equity Tracker Systematic screening of sectors and companies with double-digit growth prospects Leading experts expect lower GDP growth of < 3% p.a. by 2020E and hence low single-digit returns in various asset classes Companies adopting new business models and producing transformative products (Industry 4.0) have higher ROI prospects as they better leverage their asset base and the capital employed The companies in the DW Equity Tracker Portfolio feature - higher sales and EBIT growth rates of 9.6% and 16.9% in 2017E - margins of 20.9% in 2017E vs 8.9% for the MSCI World Equity - PE2017E of 17.2x and PE2018E of 15.8x (see figure below) higher ROI prospects over cycles 25% 20% 15% 10% 5% PE 2017E % % 4.8% Forward Ann. Growth 2017E, 2018E: Sales, Profit, Margin and PE ratios PE 2018E % 13.2% 16.9% 11.1% 13.5% 8.9% 20.9% 10.4% 22.0% % Ann. Sales Growth 2017E Source: World Bank, Schroders, Willis Tower Watson, FIS, FactSet, Thomson IBES, DuraWealth (April 2017) Ann. Sales Growth 2018E Ann. Profit Growth 2017E Ann. Profit Growth 2018E Profit Margins 2017E Profit Margins 2018E MSCI World Equity S&P500 Index DWNI Index MSCI World Equity S&P500 Index DWNI Index DuraWealth 9 of 12 10

10 Company & Team DuraWealth is a licensed asset management firm and a pioneer in Responsible Investing Miroslav Durana, Partner, Investor Relations & Wealth Management : Head of index development for 7 years at Credit Suisse and Senior portfolio manager & Research analyst at LODH, UBP and a pension fund, managed portfolios of over CHF 1 bn in assets MSc., PhD in Physics (ETH Zurich, Lausanne), MBA (HEC Lausanne) Wayne Cawood, Partner, Chief Technology Officer (CTO) & Internal Controlling : Senior business consultant & IT manager at WCT Consulting, Orange Communications SA (Suisse) and a South African electricity company M.Com. in Business Management (University of Johannesburg) Jean de Skowronski, Partner, Investor Relations & Wealth Management : UHNWI coverage at Credit Suisse, Head Swiss Financial Institutions and Public Sector at BNP Paribas and Head DCM Origination at CSFB & Credit Suisse Master in Law (University of Fribourg), Attorney-at-Law (Geneva bar), MBA (INSEAD) Pierre Montezin, Partner, Risk Management & Compliance 1990-today: Risk Manager at Osiris, Senior fund manager and broker at various asset management companies incl. EIM, Swiss Capital Alternative Investments, MAN Investments and Société Générale Master of Business Law (Université de Paris II), Master of Economy and Finance (SciencesPo Paris) with a team of investment professionals from S&P Dow Jones, Julius Baer and LLB AG DuraWealth 10 of 12

11 Equity Tracker Why to invest in the DW Equity Tracker Certificate (AMC) DW Tracker is listed at the SIX, Telekurs, Bloomberg, FIS, Swissquote, the Website of the Issuer It is a distinct global equity product managed by the DW team with 10+ years experience in managing proprietary global equity index products It deploys capital to wisely invest in the listed companies producing transformative i.e. disruptive technologies with superior ROI prospects and the goal to increase life quality It uses the scientific skills of the DW team to classify transformative technologies in five sectors and proprietary index methods developed in 2007 with real track records with superior returns It is a simple Investment Product, listed at the SIX and managed by the Bank Julius Baer (with Aa2 Moody s rating) Listing on the Website of the Issuer and Listing on the SIX It acts as portfolio diversifiers in global portfolios of individual, institutional (pension fund, treasury, insurance) and responsible investors DuraWealth 11 of 12

12 Incorporation data DuraWealth Ltd. is an asset management company in Schaan (FL), supervised by the FMA Main office: Fanalwegle 1, FL-9494 Schaan, Contact: Website: DISCLAIMER This document was produced by DuraWealth and is dedicated for informational purposes only. It is dedicated for internal use only of the receiver and shall not be partly or fully copied, reproduced or distributed externally conform to Swiss, Liechtenstein and any applicable foreign law. The information in this document is based on sources considered to be reliable, but its accuracy and completeness is not guaranteed. The information is subject to change at any time and without obligation to notify the investors. Unless otherwise indicated, some figures are unaudited. Any action derived from this information is always at the investors own risk. This document is not an official confirmation of terms. Past performance is no indication of future performance, and some performance data do not take account of the commissions and costs incurred on the issue and redemption of shares or fund units. The information does not release the recipient from making his / her own assessment. In particular, the recipient is advised to assess the information, with the assistance of an advisor if necessary, with regard to its compatibility with his/her own circumstances in view of any legal, regulatory, tax and other implications. This document is expressly not intended for persons who, due to their nationality / place of residence or their investor s profile, are not permitted to access to such information under Swiss, Liechtenstein and any applicable foreign law.