US equities in 2019: a different set of drivers?

Transcription

1 US equities in 2019: a different set of drivers? Evan Bauman Portfolio Manager, ClearBridge Investments January 2019 The value of investments and the income from them may go down as well as up and you may not get back the amount you originally invested. This information is only for use by professional clients, eligible counterparties or qualified investors. It is not aimed at, or for use by, retail clients.

2 USDbn ClearBridge Investments A distinguished history in equity investing 31 December 2018 About Us Well-established global investment manager with a legacy dating back more than 50 years Headquartered in New York and operating from Baltimore, London, San Francisco and Wilmington Operating with investment independence, wholly-owned subsidiary of Legg Mason Asset growth over time Culture of Longevity and Consistency Portfolio management team averages 27 years of investment industry experience and 19 years with the Firm Investment continuity ensured through team management and a commitment to internal promotion Client Focus Alignment of interests with our clients across every aspect of our business, from generating consistent investment performance to promoting sustainable business practices and delivering exceptional client service Ongoing centrally deployed research and risk management functions ensure constant diligence Assets by client objective Intermediaries USD83.2bn Offshore¹ USD4.2bn Institutional USD38.1bn Source: ClearBridge as at 31 December ) Represents funds only Institutional includes offshore AUM of approximately USD0.8 billion.

3 A different type of growth

4 Portfolio management team Richard (Richie) Freeman, Portfolio Manager 42 years of investment industry experience Joined a predecessor firm in 1983 Member of the ClearBridge Management Committee BS from Brooklyn College; MBA from New York University Evan Bauman, Portfolio Manager 22 years of investment industry experience Joined a predecessor firm in 1996 BS in Mathematics from Duke University Source: ClearBridge, as at 31 December

5 Strong long-term track record of over 30 years US Aggressive Growth representative account, 31 December ,000% 5,000% 4,000% 3,000% 2,000% 1,000% US Agg Growth representative account Russell 3000 Growth TR S&P 500 TR 4,376% 3,354% 2,715% 0% Oct-83 Sep-87 Aug-91 Jul-95 Jun-99 Apr-03 Mar-07 Feb-11 Jan-15 Nov-18 Annualised returns (%) 1 Year 3 years 5 Years 10 years Since Inception (25 May 2000) Legg Mason CBI US Agg Growth (Class A Acc.) Russell 3000 Growth TR S&P 500 TR Currency exchange rate fluctuations may impact the value of your investment. Source: Legg Mason/Morningstar/ClearBridge, as at 31 December NAV to NAV with gross income reinvested without initial charges, but reflecting annual management fees, based in USD for Class A Shares. There are differences between the US Aggressive Growth representative account and the Legg Mason ClearBridge US Aggressive Growth Fund including differences in the amount of assets under management, cash flows, fees and expenses, and applicable regulatory requirements, including investment and borrowing restrictions. The past performance of the US Aggressive Growth representative account is, therefore, not indicative of the future performance of the Legg Mason ClearBridge US Aggressive Growth Fund. The US Aggressive Growth representative account has been used to demonstrate the longer term track record of the investment manager. Base 0 in October

6 Key facts Richie Freeman has been running the strategy since 1983, joined by Evan Bauman in 2000 The Fund will typically be invested in holdings Pure bottom-up approach with no attention paid to the benchmark for the purpose of portfolio construction Combines a very concentrated top 10 (~50% of fund assets) making up the core of the portfolio and driving returns; with a long tail of smaller holdings serving as an incubator Invests in companies with strong secular growth prospects in expanding or cyclical industries The Fund has a strict valuation discipline. It uses multiple criteria including PEG (price earnings to growth rate), P/B (price to book) and P/CF (price to cash flow) The Fund has one of the lowest portfolio turnover rates in the industry* *Five-year average annual portfolio turnover of 6.2%. Source: ClearBridge, as at 31 December

7 What differentiates this fund from the competition? An original positioning Provides exposure to a different type of growth stock, complementary to other growth propositions An impressive long term track record Since Inception, the US Aggressive Growth representative account has generated 11.48% net annualised return vs % for the Russell 3000 Growth TR Index and 10.85% for the S&P 500 TR Index* The attention paid to valuation The price you pay is critical to creating value for investors The tenure of the management team Richie Freeman has been running the strategy since inception, joined by Evan Bauman in 2000 A long term investment horizon The fund boasts one of the lowest turnovers in the industry** Source: ClearBridge, as at 31 December Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. *Source: 2019 Morningstar. All Rights Reserved. Please refer to the section entitled Important Information for additional details. **Five-year average annual portfolio turnover of 6.2%. 7

8 P/E A review of the portfolio s key exposures Healthcare Valuations of US Large Biotech, US Large Pharma, S&P 500 Index US mature biotech forward P/E S&P 500 forward P/E S&P 500 Healthcare forward P/E S&P 500 Healthcare is a cap weighted index of 61 US healthcare companies US Mature Biotech is an equal weighted group comprised of Biogen, Amgen, Gilead and Celgene 5 Dec-07 Oct-09 Aug-11 Jun-13 Apr-15 Feb-17 Dec-18 Negative headlines have affected the sector recently, driven in large part by political rhetoric around product pricing with very low probability of follow-through. Risks have dissipated somewhat post-election Pricing concerns are not new in the industry and the team s focus has always been on owning companies with innovative treatments and valuable assets, that are able to grow organically and are best placed to face a tougher pricing environment Valuations of the large, well-capitalized biotech stocks are attractive relative to the large pharmaceutical companies and even relative to the broader market. Continued M&A in this context is likely, particularly as the sector is among the largest holders of overseas cash While stock prices in this space recovered in 2017, negative sentiment remains largely prevalent in contrast to robust fundamentals (financial solidity, innovation), while M&A could help support industry valuations. The sector is also largely underowned by investors Source: ClearBridge, Bloomberg, as of 31 December

9 Price relative to S&P A review of the portfolio s key exposures Energy The price of oil is highly volatile, making short term forecasts perilous. The fund s energy investments aren t predicated on rising prices but are held in a select group of E&P companies with high-quality assets whose value is underappreciated by the market, as well as service concerns helping their clients boost productivity even in challenging market conditions Portfolio holdings in this sector had taken significant steps to shore up their balance sheets, lower breakeven oil prices and live within their cash flows in the wake of one of the industry s worst downturns on record Risk/return profiles are attractive given low valuations and much stronger balance sheets than 24 months ago. Despite better fundamentals, stock and underlying commodity prices have recently diverged Investor concerns overlook the potential for increased spending as nearly four years of deferred capex by large producers has left oilfield equipment in need of upgrades and new drilling technologies. Portfolio E&P companies on their part, are demonstrating good capital discipline WTI Crude Oil vs. Energy Relative to S&P Energy Relative to S&P 500 (Left Axis) WTI Crude Oil (Right Axis) $ bbl Source: ClearBridge, Bloomberg, as of 31 December

10 A review of the portfolio s key exposures Technology The market continues to favor a narrow group of mega cap internet stocks over the types of names in the portfolio which are typically back-end technology providers in hardware or software but benefit from the same long-term trends (growth of the internet, digital data or cloud computing) The team has long viewed technology as a competitive sector susceptible to business cycles. The focus is on owning companies with unique intellectual property and strong balance sheets where pricing is rational The sector is ripe for consolidation, particularly in light of the new administration s plans to facilitate repatriation of overseas corporate cash, of which technology is the largest holder Balance sheets are strong and valuations are at sizeable discounts to overowned mega cap names. Portfolio holdings are typically at below-market earnings multiples 30% 25% 20% 15% 10% 5% NFLX MSFT GOOG AAPL FB 0% 0.17 (FB) ClearBridge Aggressive Growth Strategy AMZN Russell 3000 Growth Source: ClearBridge, FactSet, as of 31 December Individual securities mentioned are for illustrative purposes only. Not a recommendation to buy or sell any security. 10

11 Volume (USDm) A review of the portfolio s key exposures Cable & Media After strong performance in recent years, the industry is concerned over cord cutting, i.e. the trend of viewers cancelling expensive TV subscriptions in favor of cheaper options (e.g. streaming). The focus is on programming assets like AMC Networks and Discovery Communications. The team looks to own content producers, where there is scarcity value The Strategy has owned Comcast since the late 1980s, from its days as a regional cable company to the media conglomerate it is today, encompassing both distribution and content The Portfolio Managers expect consolidation, already brisk, to continue at this pace (e.g. AT&T/Time Warner) M&A Activity in the Media Industry, North America Q Q Q Q Q Q Q Q Q Q Q1 Volume 2011 Q Q Q3 Deal Count 2013 Q Q Q Q Q Q Q Q Q Q Q1 Q Deal count Source: ClearBridge, Bloomberg, as of 31 December *In the top 20 holdings of the portfolio. 11

12 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Deal Volume ($ Billions) M&A Prospects Lack of organic growth and cheap borrowing costs have fueled corporate America s appetite for deals, reaching a post recession peak in 2015 on the back of deals such as Pfizer/Allergan and AB InBev/SABMiller activity slowed, perhaps owing to policy uncertainty Trump s plans to facilitate repatriation of overseas held cash could lead to a further wave of takeover activity. ClearBridge estimate that as much as USD1 trillion could return and be partly used to fund deals. The technology and health care sectors are the largest holders of overseas cash In addition to better access to cash, the environment for M&A remains supportive thanks to high equity prices, still low interest rates and improved business confidence. The new administration is also expected to take a more favorable stance towards deals than the previous White House* While an investment case does not rely on takeover potential, consolidation is one-way value can be realized. Approximately 90 deals have occurred in the Aggressive Growth strategy since 1983, including four in Volume Deal Count Deal Count 0 0 Source: ClearBridge, Bloomberg, as at 31 December *USD370 billion of large deals were blocked since 2009, FT, as at 30 April

13 P/E P/E Evolution of strategy valuation Portfolio discount at its widest in years ClearBridge Aggressive Growth strategy P/E /Russell 3000 Growth P/E ClearBridge Aggressive Growth strategy P/B /Russell 3000 Growth P/B Source: ClearBridge, Bloomberg, as at 31 December

14 Portfolio positioning and performance

15 Sector exposure Relative to Russell 3000 Growth index 31 December 2018 Fund Index Underweight Overweight Health Care 33.33% 15.17% Communication Services 27.64% 11.31% Energy 8.31% 0.83% 7.48 Utilities 0.00% 0.04% Materials 1.64% 1.95% Real Estate 0.00% 2.37% Financials 0.31% 4.62% Consumer Staples 0.00% 5.82% Information Technology 23.01% 30.52% Industrials 4.32% 12.26% Consumer Discretionary 0.28% 15.11% Cash & Cash Equivalents 1.16% 0.00% Source: Legg Mason, as at 31 December Due to settlements in securities transactions at the end of the month, cash position temporarily showed negative. 15

16 Top 10 fund holdings 31 December 2018 Security Biogen Inc UnitedHealth Group Inc Comcast Corp Broadcom Inc Seagate Technology PLC Discovery Inc Amgen Inc Allergan PLC Ionis Pharmaceuticals Inc Liberty Broadband Corp Total Total Number of Holdings % of Total Fund Source: Legg Mason, as at 31 December Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. 16

17 Portfolio characteristics 31 December 2018 Portfolio Characteristics Fund Index Value Factors Harmonic P/E Ratio (Forecasted 12 Months) Price/Book Price/Sales Growth Factors EPS Growth Next 3-5 Years 12.41% 16.38% Quality Factors Debt to Equity Risk Factors over 3 Years Standard Deviation 3 Years 16.23% 12.47% Alpha Beta Market Cap Weighted Median Market Cap ($bn) Weighted Average Cap ($bn) Source: FactSet, as at 31 December The index used is the Russell 3000 Growth. 17

18 % of Fund Fund composition Market capitalisation 31 December 2018 Legg Mason ClearBridge US Aggressive Growth Fund Russell 3000 Growth Index More than 50,000 mil 25,000-50,000 mil 10,000-25,000 mil 5,000-10,000 mil 1,000-5,000 mil Less than 1,000 mil $ Millions Source: FactSet, as at 31 December

19 Legg Mason ClearBridge US Aggressive Growth Fund Class P Distr. (A) GBP annualised performance 31 December % Legg Mason ClearBridge US Aggressive Growth Fund Class P Distr. (A) GBP % Russell 3000 Growth GBP S&P 500 GBP % % % -5% year 3 years 5 years Since inception¹ Currency exchange rate fluctuations may impact the value of your investment. Source: Legg Mason as at 31 December 2018 for Class P Distr. (A) GBP. Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. 1) Since inception date: 13 December

20 Legg Mason ClearBridge US Aggressive Growth Fund Class P Distr. (A) GBP Calendar year performance 31 December % Legg Mason ClearBridge US Aggressive Growth Fund Class P Distr. (A) GBP Russell 3000 Growth GBP S&P 500 GBP 40% 30% % % 0% % Currency exchange rate fluctuations may impact the value of your investment. Source: Legg Mason as at 31 December 2018 for Class P Distr. (A) GBP. Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. 20

21 Standardised past performance Rolling period returns 31 December 2018 Rolling 12-month performance (%) 31 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 2014 Legg Mason ClearBridge US Aggressive Growth Fund Class P Acc. USD Legg Mason ClearBridge US Aggressive Growth Fund Class A Acc. USD Currency exchange rate fluctuations may impact the value of your investment. Source: Legg Mason as at 31 December Performance is calculated on a NAV to NAV basis, with net income reinvested and after deduction of annual fund expenses. 21

22 Fund risks Investment in company shares: The fund invests in shares of companies, and the value of these shares can be negatively affected by changes in the company, its industry or the economy in which it operates. Geographical focus: This fund invests primarily in the United States, which means that it is more sensitive to local economic, market, political or regulatory events in the United States, and will be more affected by these events than other funds that invest in a broader range of regions. Concentrated fund: The fund invests in fewer companies than other funds which invest in shares usually do. This means that the fund does not spread its risk as widely as other funds and will therefore be affected more if an individual company has significant losses. Fund operations: The fund is subject to the risk of loss resulting from inadequate or failed internal processes, people or systems or those of third parties such as those responsible for the custody of its assets. 22

23 Appendix

24 Attribution analysis One year 31 December 2018 Sector Allocation for 1 Year Average Weight Total Return Attribution Effects Port BM (+/-) Port BM Sector Stock Total Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Cash and Equivalents Total Fund Source: Legg Mason, as at 31 December BM: Russell 3000 Growth Index. The attribution figures above are based on the Fund's holdings and do not reflect fees or expenses of the Fund. 24

25 Performance contribution One year 31 December 2018 Top Ten Contributors (%) for 1 Year ending 31 December 2018 Average Weight Bottom Ten Contributors (%) for 1 Year ending 31 December 2018 Average Weight Name Sector Port BM (+/-) Return Contrib Name Sector Port BM (+/-) Return Contrib UNITEDHEALTH GROUP INC Health Care CORE LABORATORIES N.V. Energy BIOVERATIV INC Health Care WEATHERFORD INTERNATIONAL PL Energy AMGEN INC Health Care NEWFIELD EXPLORATION CO Energy MADISON SQUARE GARDEN CO- Communication A Services AUTODESK INC Information Technology DISCOVERY INC - A Communication Services BROADCOM INC Information Technology TWITTER INC Communication Services CREE INC Information Technology WESTERN DIGITAL CORP COMCAST CORP-CLASS A NUANCE COMMUNICATIONS INC TE CONNECTIVITY LTD JOHNSON CONTROLS INTERNATION Information Technology Communication Services Information Technology Information Technology Industrials FLUOR CORP Industrials IONIS PHARMACEUTICALS INC Health Care ALLERGAN PLC Health Care Source: Legg Mason, as at 31 December BM: Russell 3000 Growth Index. The attribution figures above are based on the Fund's holdings and do not reflect fees or expenses of the Fund. 25

26 Attribution analysis Three years 31 December 2018 Sector Allocation for 3 Years Average Weight Total Return Attribution Effects Port BM (+/-) Port BM Sector Stock Total Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Cash and Equivalents Total Fund Source: Legg Mason, as at 31 December BM: Russell 3000 Growth Index. The attribution figures above are based on the Fund's holdings and do not reflect fees or expenses of the Fund. 26

27 Performance contribution Three years 31 December 2018 Top Ten Contributors (%) for 3 Years ending 31 December 2018 Average Weight Bottom Ten Contributors (%) for 3 Years ending 31 December 2018 Average Weight Name Sector Port BM (+/-) Return Contrib Name Sector Port BM (+/-) Return Contrib UNITEDHEALTH GROUP INC Health Care ALLERGAN PLC Health Care BROADCOM LTD AUTODESK INC Information Technology Information Technology WEATHERFORD INTERNATIONAL PL Energy CORE LABORATORIES N.V. Energy AMGEN INC Health Care BAUSCH HEALTH COS INC Health Care SEAGATE TECHNOLOGY Information Technology NUANCE COMMUNICATIONS INC Information Technology FREEPORT-MCMORAN INC Materials NEWFIELD EXPLORATION CO Energy CITRIX SYSTEMS INC COMCAST CORP-CLASS A VERTEX PHARMACEUTICALS INC Information Technology Communication Services AMC NETWORKS INC-A Communication Services IMMUNOGEN INC Health Care Health Care LIONS GATE ENTERTAINMENT- B Communication Services BIOVERATIV INC Health Care NATIONAL OILWELL VARCO INC Energy Source: Legg Mason, as at 31 December BM: Russell 3000 Growth Index. The attribution figures above are based on the Fund's holdings and do not reflect fees or expenses of the Fund. 27

28 Key technical details Investment Objective Long-term capital appreciation Launch Date 25 May 2000* Benchmark Russell 3000 Growth Index Portfolio Manager Richie Freeman & Evan Bauman Base Currencies USD Other Currencies EUR,GBP Management Fee (Class A Dist. (A) USD shares) 1.30% p.a. Management Fee (Class P Acc. USD shares) 0.65% p.a. ISIN Bloomberg WKN Valoren Sedol Legg Mason ClearBridge US Aggressive Growth Fund (Class A Dist. (A) USD) IE00B19Z9P08 LCUAGAI ID A0MUYY B19Z9P0 Legg Mason ClearBridge US Aggressive Growth Fund (Class P Acc. USD) IE00B241FC99 LMUGPAU ID A0M5GB B241FC9 *Performance inception date reflects a predecessor fund (the Salomon Brothers Global Horizons U.S. Aggressive Growth Fund) with a substantially similar investment objective and policy and whose assets were transferred into this Fund on 20 April

29 Legg Mason ClearBridge US Aggressive Growth Fund Class A Distr. (A) GBP annualised performance 31 December % Legg Mason ClearBridge US Aggressive Growth Fund - Class A US$ Distributing (A) Russell 3000 Growth Index S&P 500 Index 15% 10% % % -5% % % 1 Year 3 Years 5 Years 10 Years Since Inception ( ) Currency exchange rate fluctuations may impact the value of your investment. Source: Legg Mason as at 31 December 2018 for Class A USD Distributing (A) USD. Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. 29

30 Legg Mason ClearBridge US Aggressive Growth Fund Class A Distr. (A) USD Calendar year performance 31 December 2018 Legg Mason ClearBridge US Aggressive Growth Fund - Class A US$ Distributing (A) Russell 3000 Growth Index S&P 500 Index Percentage Currency exchange rate fluctuations may impact the value of your investment. Source: Legg Mason as at 31 December 2018 for Class A USD Distributing (A) USD. Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. 30

31 ClearBridge Investments US Equity capabilities 31 December 2018 US Aggressive Growth US Appreciation US Large Cap Growth Value Tactical Dividend Income US Equity Sustainability Leaders Strategy inception Oct-83 Mar-70 Aug-97 Apr-82 Jan-12 Apr-15 Size of fund USD1.4bn USD195m USD1.4bn USD313m USD50m $9.5m Size of strategy USD29.0bn USD9.0bn USD28.5bn USD2.5bn USD1.0bn USD259.8m Benchmark Russell 3000 Growth S&P 500 Russell 1000 Growth S&P 500 Dow Jones US Select Dividend Index Russell 3000 Investment Aim¹ Outperform the benchmark Outperform the S&P 500 over a market cycle (3 5Y) with lower volatility Outperform the benchmark Outperform the S&P 500 over a market cycle Primary objective is to provide a high current dividend yield Secondary objective is to provide capital appreciation over time Outperform the benchmark Seeks companies with demonstrated ESG leadership and emerging opportunities Target yield¹ N/A N/A N/A N/A Benchmark bps N/A (gross) Current dividend yield² 1.3% 2.1% 1.1% 2.1% 4.8% 1.5% Securities employed Common stocks Common stocks Common stocks Common stocks Common stocks, energy infrastructure assets, REITs, converts and preferreds Common stocks Investment approach Bottom-up Bottom-up with a top-down overlay Bottom-up Bottom-up with a top-down overlay Bottom-up with a top-down overlay Investment style Growth Core Growth Blend Value Core Beta profile Higher than benchmark ( ) Lower than benchmark ( ) In-line with benchmark Higher than benchmark ( ) Marginally lower than benchmark Market cap profile All cap Large/mega cap Large cap Large cap with flexibility All cap All cap Weighted average market cap [benchmark] USD55bn [USD216bn] USD229bn [USD193bn] USD211bn [USD233bn] USD136bn [USD193bn] USD128bn [N/A] Bottom-up In-line with benchmark USD146bn [USD163bn] Number of holdings Geographic focus US US US US US with global flexibility US Portfolio Turnover 5 10% 30 50% 15 30% 30 50% 30 50% 20 30% Source: Legg Mason, as at 31 December ) These are targets and there is no guarantee that they will be met. 2) The current dividend yield is the gross annual income (interest or dividends) paid out by the underlying investments within the fund divided by their current price. Portfolio characteristics may change without notice.

32 Important information This is a sub-fund of Legg Mason Global Funds plc ( LMGF plc ), an umbrella fund with segregated liability between sub-funds, established as an open-ended investment company with variable capital, organised as an undertaking for collective investment in transferable securities ( UCITS ) under the laws of Ireland as a public limited company pursuant to the Irish Companies Acts and UCITS regulations. LMGF plc is authorised in Ireland by the Central Bank of Ireland. The information and data in this material has been prepared from sources believed reliable but is not guaranteed in any way by any Legg Mason, Inc. company or affiliate (together Legg Mason ). No representation is made that the information is correct as of any time subsequent to its date. Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or sell any investment or interest. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situations or needs of investors. Before investing investors should read in their entirety LMGF plc s application form and a sub-fund s share class KIID and the Prospectus (which describe the investment objective and risk factors in full). These and other relevant documents may be obtained free of charge in English, French, German, Greek, Italian, Norwegian and Spanish from LMGF plc s registered office at Riverside Two, Sir John Rogerson s Quay, Grand Canal Dock, Dublin 2, Ireland, from LMGF plc s administrator, BNY Mellon Fund Services (Ireland) Limited, at the same address or from This material is not intended for any person or use that would be contrary to local law or regulation. Legg Mason is not responsible and takes no liability for the onward transmission of this material.this material does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. Issued and approved by Legg Mason Investments (Europe) Limited, registered office 201 Bishopsgate, London, EC2M 3AB. Registered in England and Wales, Company No Authorised and regulated by the UK Financial Conduct Authority. This information is only for use by professional clients, eligible counterparties or qualified investors. It is not aimed at, or for use by, retail clients. In Switzerland, issued and approved by Legg Mason Investments (Switzerland) GmbH, authorised by the Swiss Financial Market Supervisory Authority FINMA. Investors in Switzerland: The representative in Switzerland is FIRST INDEPENDENT FUND SERVICES LTD., Klausstrasse 33, 8008 Zurich, Switzerland and the paying agent in Switzerland is NPB Neue Privat Bank AG, Limmatquai 1, 8024 Zurich, Switzerland. Copies of the Articles of Association, the Prospectus, the Key Investor Information Documents and the annual and semi-annual reports of the Company may be obtained free of charge from the representative in Switzerland. January