US EQUITIES LONG ONLY FUND

Transcription

1 US EQUITIES LONG ONLY FUND Independent Long Term Investing Seeking Quality Assets at Cyclical-Distressed Valuations 2016 Q3 François Boulte Ivan de la Fressange Approved for Distribution in Switzerland and France

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3 Gutzwiller Fonds Management AG is the institutional investment arm of E. Gutzwiller & Cie, Banquiers. GFM focuses on a few but highly qualified products that reflect the quality and conservative approach of the bank. We provide investment management solutions to financial institutions around the world. Our clients include some of the world's finest financial institutions, mutual funds and Family Offices. The team manages five open-ended funds and provides asset management services for in-house funds of E. Gutzwiller & Cie, Banquiers. Each fund has its own distinct mandate, all share a long-term, absolute-return focus that seeks to participate in the markets upside potential in good times, while offering value proposal during turbulent times. The company is a Swiss domiciled asset management company incorporated in 2001 in Basel and is regulated by the Swiss Financial Market Supervisory Authority (FINMA). 3

4 Lorenz von Habsburg, Chairman* ADMINISTRATION Valuation, Risk, Controlling and Accounting Reto Brillinger* / Christian Frantz* / Simon Roth LEGAL Martin Wicki INVESTOR RELATION Suzanne Martel Gutzwiller ONE US EQUITIES (USD) François Boulte* Yvan de la Fressange Gutzwiller TWO Event Driven FoHFs (USD / CHF) Stéphane Gutzwiller François Gutzwiller EG EUROPE European EQUITIES (EUR) Portfolio Adviser L. Dobler, Comgest EG GLOBAL Global EQUITIES (EUR) Portfolio Adviser Dr. Markus Elsässer EG SWISS Swiss EQUITIES (CHF) Portfolio Adviser Peter Handschin AUDIT / CONTROL Ernst & Young AG * Members of Executive Committee 4

5 Gutzwiller ONE Is An Outperformer Seeking Quality Assets At Cyclical-distressed Valuations $ Track Record Gutzwiller ONE SP500 Net Total Return As end of Nveomber, 2016 A Long Term performance Built With No Cash Allocation Based on Independent Long Term Investing Through Businesses with strong sharehodler Orientation Achieving Capital Preservation & Appreciation Through Widely Varying Economic Cycles We participate in the markets upside potential in good times while adding value proposal in down markets Past performance is not a guarantee of future results.

6 Our Focus is Solid Fundamentals and Profitability At Low Capital Gutzwiller ONE Is Generating Faster Earnings Growth Than SP500 CAGR adj.until 2016Q Gutzwiller ONE adj. EPS from cont operations ttm SP500 EPS from cont operations ttm Linear (Gutzwiller ONE adj. EPS from cont operations ttm) Linear (SP500 EPS from cont operations ttm) Gutzwiller ONE +12.0% SP % Source: GFM analysis, as end of Q est Past performance is not a guarantee of future results. Source: GFM Analysis, For est 2017: Rolling Estimates from BEst (Bloomberg Estimates) estimation. 6

7 Gutzwiller ONE is Investing Independently With a Value-Oriented Approach In Well-Established Companies When Mispriced Investment Objective A long-term growth of capital by investing in US Equities Invest in well-established companies with diversified operations at an attractive valuation Proceed to a highly disciplined, bottom-up, value-oriented approach based on extensive company analysis Act independently of any sector orientation or other restrictive methodologies No cash allocation Approach The fund maintains a conservative long-term view and avoids market excesses Our main risk assessments: the nature of the investment and its valuation 7

8 As Long Term Investor, Gutzwiller ONE Is Independently Seeking Value Profitability and Best Operations At Margin of Safety For investors dissatisifed with current market valuations, seeking long-term capital appreciation, through quality businesses Gutzwiller ONE builds solid ownership in profitable businesses, backed by solid assets, at discounted prices. We benefit from the investment opportunities that are excluded from consideration by most institutional investors, due to cyclical-distress in their valuation. Contrary to benchmarked products that are blind to all kind of fundamentals and excessive valuations, Gutzwiller ONE is selecting its holdings carefully, seeking to avoid bubbles and market euphoria. We independently build a safe portfolio of established and growing businesses, providing needed products or services worldwide and offering significant earning yields to our investors. 8

9 Strategy is to Concentrate on Established Businesses With Significant Profitability, Avoid Market Excesses Bottom-up Research US markets G1 Universe Watch list Shortlist Stocks Identify sustainable/ resilient businesses with consistent and operating History Seeking for high profitability and growth potential Track Management with rational track record Do managers are increasing share holder value overt time? Acquisition (Gradually) 1-3 Seek out companies that are undervalued Do we feel comfortable with today s business reality & associated risks? Avoid market excesses (Buy) Portfolio Concentrate on the stocks with the most potential Avoid market excesses (Sell) 9

10 We Are Continuously Building A Perpetual Motion Machine For Returns Through Quality Assets Gutzwiller ONE Way of Thinking Gutzwiller ONE - Adjusted Earnings yield + SP500 (Bubble size indicates FCF generation to purchase price) - Adjusted Return on capital + 10

11 That s Why Gutzwiller ONE Is Naturally Better Invested Than The SP500 Built On Sentiments And Recent QEs Gutzwiller ONE SPX Average market cap (Weighted/Median) $118bn / $51 Bn $157bn / $19 Bn Stronger businesses Return on equity (ROE) 5 years Average >21% (normalized) ~16% (median) Increased efficiency Operating margin Excl neg. >25% (Weighted) 15% (Median) Increased profitablity Long term earnings growth* ~ +12% ~ +6% # Holdings Faster growth Better concentrated 85-90% active share Source: GFM analysis, 2016 Q3 while able to maintain low turnover/low cost *Estimation based on a long term historical average adjusted Q3 Past performance is no guarantee of future returns 11

12 We Offered Significant Absolute Return To Patient Investors Only Few Periods Have Been Negative, And Mainly Due To Extreme Points Absolut Returns by rolling periods (net) Sovereign Debt Calendar returns as end of 2016Q3 Crise 2002 Lehman Crise years Past performance is no guarantee of future returns. Holding Periods in # years % 200% 150% 100% 50% 0% -50%

13 You Now Have An Attractive Relative Price For Gutzwiller ONE A Rare Opportunity for our Investors Source: Bloomberg, GFM Analysis Past performance is not a guarantee of future results NAV SP500 Net TR available only since

14 You Better Be Invested With Us A Strong Shareholder Orientation Will be Needed in the Years to Come Generating a superior profitability At Lower Price A long experience with operations A smart diversification across quality assets and resilient operating businesses An exposition to growth and innovation through needed products and services A resilient intrinsic value A holding power with no conflict of interest A stable team with a solid portfolio strategy The power to invest smartly, and being contrarian Benefiting from inevitable take-overs 14

15 Think Profits! A Solid Portfolio of Growing and Profitable Businesses... 15

16 A Coordinated Risk Management Offering 4 lines of Defense to Our Shareholders Investment Team Middle Office Risk Commitee & Custodian Bank Audit Daily - Holdings valuation - Validation of Invesment scenarios - Respect of investment guidlines - Portfolio risk assesment - Performance analysis Weekly - Out/under-performing holdings - Market events affecting the fund - Portfolio Valuation Monthly - Market risk assessment - Respect of investment guidelines - Portfolio risk assessment - Performance analysis - Asset allocation weightings Daily - Holdings valuation - Respect of guidlines - Performance analysis Half Yearly - Report to FINMA - Semi Annual report Yearly - Report to FINMA - Annual Audit (Ernst & Young) - Annual report 2nd line of Defence Daily - Holdings valuation validation (prices & number of shares) - Respect of guidlines - Performance analysis - Out/under-performing holdings - Market events - Asset allocation weightings Bi-Monthy - Porfolio valuation Validation 3rd line of Defence Yearly - Annual report to FINMA - Annual audit by Ernst & Young 4th line of Defence 1st line of Defence

17 Contact François Boulte Gutzwiller Fonds Management AG Kaufhausgasse Basel Switzerland fbo@gutzwiller-funds.com The shown results on the charts do not account for possible commissions and cost of issues and redemptions. For the period from November 3, 1997 to June 30, 2001 it refers to the former internal bank portfolio "EG US Equities", transformed 1:1 into Gutzwiller ONE as per July 1, Past performance is no guarantee for future returns. Gutzwiller ONE s performance depends on future development of investments and on how successfully the fund advisor implements the investment policy. Investments denominated in foreign currencies imply additional risk.