Investor Equities. Sicav-SIF Specialized Investment Fund. December 2011

Transcription

1 Investor Equities Sicav-SIF Specialized Investment Fund December

2 Disclaimer Disclaimer: All information in this ad is for informational purposes only and shall in no way be intended as advice Investor Asset Management Bvba, Manager of Lux-Investment Partners (LIP) SICAV-FIS SCA - Investor Equities. LIP Investor Equities is a "société d'investissement à capital variable" (investment company with variable capital, abbreviated SICAV) under Luxembourg law, in the form of a société en commandite par actions (partnership limited by shares, abbreviated SCA) and accredited by the Commission de Surveillance du Secteur Financier (CSSF), the Luxembourg supervisory authority on 20/05/2008 (VISA 2008/ PC) and renewed by VISA 2011/ PC on 11/08/2011. This prospectus is in accordance with the Luxembourg law of the 13 th of February 2007 on "Fonds d'investissement Spécialisé (FIS) and in accordance by the updated prospectus approved by the CSSF by decision on 11/08/2011 and by VISA 2011/ PC. This offer is only for "well informed investors" under Article 1 of the Luxembourg Law of 13 February 2007 on the "FIS". This offer is not public in nature, in conformance with the Belgian law of 20 July 2004 on certain forms of collective management of investment portfolios and is not subject to the publication of a prospectus approved by the FSMA (formerly CBFA) as the law of June 16 th 2006 prescribes. The minimum investment for Belgian residents is 250,000 Euros in accordance with Article 5, of the ICB -Law of July 20, Individuals or institutions who invest in the fund are requested to take note of and to comply with the contents of the prospectus. For more information, see the relevant legal documentation, which is available without charge upon request at Lux-Investment Partners SICAV- FIS SCA, 1 Place de Metz L-1930 Luxembourg. Past performance is no guarantee for the future and the investor runs the risk to lose the amount originally invested. 2

3 Structure BCEE - financial accounts EFA -registrar -calculates the monthly NAV Ernst & Young -custodian -auditor- Investor Asset Management Bvba -manager INVESTOR EQUITIES compartment of Sicav-SIF Lux-Investment Partners CSSF -supervisor prospectus - supervisor Sicav- SIF 3

4 Investor Equities A Luxemburg based Sicaf-Sif Managed by Investor Asset Management Bvba A long only equity fund We mainly invest European small- and midcap stocks A focused portfolio of around 25 stocks 4

5 Our philosophy Outperform the market by: 1. Avoiding bad companies 2. Investing in small- and midcaps 3. Emphasis on: 1. growth stocks at reasonable price 2. Deep value 5

6 Philosophy: When do we sell? Let your profits run! 4 good reasons to sell: 1. Deteriorating outlook 2.expensive stocks (e.g 2x the valuation of the overall market) 3. better alternatives 4. portfolio rebalancing 6

7 Investment strategy 1. GARP: Growth At Reasonable Price (Low debt, high free cash flow, high return on capital) 2. Deep Value (only if financial position is very healthy and when a problem is well defined and isolated) 7

8 Investment Proces INVESTMENT UNIVERSE (>8000 European quoted companies) COMPACTED UNIVERSE ( companies) IDEA LIST (CANDIDATES) ( stocks) PORT- FOLIO 1. Reducing the investment universe exclusion factors : Insufficient liquidity Recurring losses Poor financial position Highly cyclical companies 2. Fishing for ideas Screening Company presentations (visits & conferences) Broker research (company notes, sector/country selections ; NOT recommendations & price targets) 3. Detailed fundamental analysis One-on-one meetings with company management Understanding the company and its financials Understanding its strengths and weaknesses Selection criteria : check-list Valuation & liquidity 4. Portfolio monitoring Portfolio risk monitoring Changes in company fundamentals Changes in valuation Better idea replacing existing holding 8

9 Selection Criteria company QUALITY stock PRICE PROFITABILITY & FINANCIAL STRENGTH ROE (NP/average equity) EBIT margins (EBITA/S) FCF generation Gearing (Net Debt/Equity) Interest cover (EBITA/Fin. Result) MANAGEMENT & STRATEGY Management experience EPS growth track-record Clear & consistent strategy Focus on core activities Corporate culture Uniqueness / niche strategy Sustainability Innovation Communication VALUATION Absolute valuation vs. the market Valuation vs. historical average Valuation vs. most comparable peer(s) Valuation vs. long term growth (PEG) GROWTH PROSPECTS Long term market growth Benefiting from growth trends ( themes ) Market share gains External growth potential Long term margin potential Current FY EPS growth EPS revisions RISK FACTORS Economic sensitivity Sensitivity to currency fluctuations Sensitivity to other external factors Diversification / Multiple revenue streams Competitive position Barriers to entry Power of suppliers Power of customers LIQUIDITY Market capitalisation Free float Average daily volume 9

10 Evolution Investor Equities launch (30/04/08) Investor Equities -11,0% 41,1% 70,6% -36,9% 35,2% Stoxx 600 return -8,6% 11,6% 32,4% -37,3% -15,3% excess return -2,4% 29,5% 38,2% 0,4% 50,5% 1 year 3 year launch (30/04/08) launch (30/04/08) Investor Equities -11,0% 114,2% 35,2% 8,6% Stoxx 600 return -8,6% 35,0% -15,3% -4,4% excess return -2,4% 79,1% 50,5% 13,0% over the period on average 90%+ invested Since launch European small caps performed-9,37%(scxr Index) 10

11 Evolution Investor Equities May/ Dec Investor Equities -A- Eur Eurostoxx 600 return 11

12 Evolution Investor Equities versus similar international mutual funds marketed in Belgium return 44 months (30/12/2011) Investor Equities 35,16% KBC Institutional fund Euro Equity Small & Medium Caps -c- -23,8% Petercam Equities European Small & Midcaps B -k- -30,4% Degroof Equities Small Cap Europe Behavioral Value - BC -30,5% Dexia Equities Europe Small Caps -c- -37,6% return 44 months (30/12/2011) Investor Equities 35,16% Gartmore Pan European Smaller Companies -B 7,24% Threadneedle Pan European Smaller Companies -A- 7,00% Franklin Templeton European Small-Mid Cap Growth Fund -A- 0,23% Henderson Horizon - Pan European Smaller Companies - A2-3,91% Parvest Europe Small Caps - CC -5,20% Blackrock European Opportunities Fund A2-10,18% Fidelity European Smaller Companies Fund -A- -10,70% Pictet Funds Small Cap Europe -12,01% JPMorgan Europe Dynamic Small Caps Fund - AA -14,05% Schroder ISF European Smaller Companies - A AC -14,89% JPMorgan Europe Micro Cap Fund CA-A ACC -16,31% Axa World Funds - European Small Cap Equities -AC- -18,36% Carmignac Euro-Entrepreneurs -19,55% DWS Invest - European Small/Mid Cap - LC -19,61% Amundi Equity Euroland Small Cap C-FE -22,72% KBL Key Fund - European Small Companies -22,79% Oyster European SM Cap -Eur -25,30% Invesco Pan European Small Cap - A -26,69% Axa World Funds - Europe Micro Cap -A-Cap -35,02% 12

13 Lipper Rating (09/30/11) 5 Lipper Leaders : within the top 10% of similar funds in risk-weighted return over 3 years Disclaimer LIPPER: 5 Lipper Leaders: within the top 10% of similar funds in risk-weighted return over 3 years. Lipper Ratings for Total Return reflect fund historic total return performance relative to peers. Lipper Ratings for Consistent Return reflect fund historical risk-adjusted returns relative to peers. Lipper Ratings for Preservation are relative, rather than absolute. Lipper Ratings for Expense reflect fund expense minimization relative to peers. Lipper Ratings DO NOT take into account the effects of sales charges. Overall Ratings are based on an equal-weighted average of percentile ranks for each measure over 3-, 5-, and 10-year periods (if applicable). Lipper Ratings and Lipper Classifications do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. As a result, you should not make an investment decision on the basis of this information. Rather, you should use Lipper Ratings and Lipper Classifications for informational purposes only. Lipper is not responsible for the accuracy, reliability or completeness of the information thatyou obtain from Lipper. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. 13

14 Technical Information Investor Equities is a sub fund of Lux-Investment Partners Sicav-SIF, an open-end investment company established under the laws of the Grand Duchy of Luxembourg Characteristics: capitalisation (A) or distributing (D) share class Currency: EUR / GBP(hedged) Minimum Initial Subscription: Euro or EUR for Belgian citizens Investment Restrictions: No more than 20% of NAV in any one position Management Fee:1% Performance Fee:1/5th of total increase of the NAV over a hurdle rate of 10% annual return with high watermark. Subscription Fee: 0%; only if bought through intermediary max. 1% Redemption Fee: 0% Taxation: No withholding tax Investment Advisor: Investor Asset Management Bvba Depositary Bank: Banque et Caisse d Epargne de L Etat Luxembourg (BCEE). Financial Services: EFA - European Fund Administration Auditor: Ernst&Young Net Asset Value: Monthly Reporting & Liquidity: Monthly ISIN-Code: LU (A) / LU (D) Bloomberg: LUXINVA LX 14