Chiron Investment Management, LLC

Transcription

1 Chiron Investment Management, LLC Chiron (Kai-Ron) AIM TRUE December 2017 In ancient Greece, Chiron tutored heroes on human nature and the art of the hunt. Today, Chiron Investment Management carries those lessons forward to give modern investors the guidance they deserve to choose the right target, to wait until the perfect moment, and to strike for maximum advantage.

2 To determine if the Fund is an appropriate investment for you, carefully consider the fund investment objectives, risk, and charges and expenses. This and other information can be found in the fund (full and summary) prospectus which can be obtained by calling CHIRON or by visiting Please read the prospectus carefully before investing.

3 Introduction to Chiron 3

4 Chiron s Advantage

5 Chiron s Leadership Team Advisory Directors Total Years of Industry Experience Marc Spilker, Chairman 30 years Fmr. Co-Head Goldman Sachs Investment Management Division Fmr. President, Apollo Global Management Scott Prince, Vice Chairman Fmr. Partner, Goldman Sachs Co-founder, Eton Park Capital Management 31 years Goldman Sachs Goldman Sachs Eton Park Capital Apollo Global Mgmt. Skybridge Capital Management Enrico Gaglioti, CEO Fmr. Partner, Goldman Sachs 22 years Salomon Brothers Goldman Sachs Ryan Caldwell, CIO Fmr. SVP, Waddell & Reed Co-Portfolio Manager of Ivy Asset Strategy Fund 19 years Ivy Funds / Waddell & Reed Kirsten Pickens, Distribution Head 21 years Fmr. Head of National Accts & Retirement Sales, Waddell & Reed ING Ivy Funds / Waddell & Reed JP Armenio, CAO Fmr. Managing Partner of Tantalus Capital 22 years Morgan Stanley Mizuho Securities Asia Limited Kristen Richards, CCO Fmr. SVP & Chief Compliance Officer, Waddell & Reed 21 years Ivy Funds / Waddell & Reed Shailendra Panchal, CRO Fmr. VP / Securities Division Risk, Goldman Sachs 16 years Goldman Sachs 6

6 Organizational Structure & Governance

7 Risk Management

8 Where CCAPX Fits Into a Client s Portfolio

9 CCAPX CCAPX By combining our proprietary tools with fundamental judgment, we believe we can understand the conditions that lead to successful investment outcomes, allowing us to Aim True for our clients. 4

10 Investment Team Portfolio Managers Ryan Caldwell Chief Investment Officer Ryan helped lead decision-making and served as co-portfolio manager for 40-Act Funds , co-managed Waddell & Reed/Ivy s flagship Ivy Asset Strategy Fund (WASAX), Waddell & Reed Asset Strategy Fund (UNASX), Ivy Funds VIP (insurance related mutual fund); >$40B 40-Act mutual fund strategies at 2014 peak Named to Institutional Investors list of Rising Star of Mutual Funds in 2009 and in 2007 was a finalist for Morningstar Manager of the Year Grant Sarris Portfolio Manager , Mr. Sarris served as a Portfolio Manager at Kornitzer Capital Management, Inc. Oversaw equity portfolios within the firm's growth team Prior to joining Kornitzer, Mr. Sarris was a small-cap PM at Waddell & Reed From 2013-September 2015, Mr. Sarris managed his personal portfolio Brian Cho Portfolio Manager-Quantitative Strategies Brian co-founded (2002) Empirical Research Partners LLC, an independent research boutique and was Partner and Director of Quantitative Research Managed quantitative research efforts for the firm During his tenure, the research team achieved the highest two rankings in the Institutional Investor All-American Research Team each year from 2003 through 2014 in both the Portfolio Strategy and Quantitative Research categories

11 Investment Team Analysts Marc Irizarry Fundamental Research John Simmons Analyst Pat Srinivas Fundamental Analyst-Emerging Markets Zhe Liu Quantitative Analyst

12 Portfolio Construction & Guardrails 14

13 Quantamental Investment Process Quantitative Analytics Fundamental Research Gather Data Process Data Analyze Data Interpret Data Implement Asset Allocation Top Down 4000 Global Companies Companies Globally Companies 4 Super Factors 70+ Factors Regions Sectors Dispersion Model Security Selection Companies (Attractive) Value Growth Domain Model Companies (Avoid) Deep Market & Company Research Portfolio Core Model Dispute Model Bottom Up

14 Factor Framework Super Factors 75 Individual Factors +Factor Modules Earnings Quality Sales Earnings Cash Flow Balance Sheet ROE, ROA Capital Deployment Capital Spending Dividends Share Buy-backs Total: 13 Factors Valuation Cash Flow Yield Earnings Yield Dividend Yield Price Multiples Total: 16 Factors Market Reaction Price Trend Momentum Turnover Volatility Total: 16 Factors Total: 30 Factors 14

15 Where to start: 5 Chiron Developed Market Domain Indicator 1993 Through December Source: Chiron Investment Management, LLC

16 Domain: Chiron Asset Allocation Framework Domain Approximate Asset Allocation Security Selection Emphasis Earnings Quality Valuation Capital Deployment Market Reaction

17 Standard Deviations The World Dispersion by Region The World Dispersion by Region Cheapest 10% Compared to Regional Markets 1 Historical Range and Current Level 1987 Through December (1) (2) (3) U.S. Canada U.K. Continental Europe Developed Markets Source: Chiron Investment Management, LLC. 1 Emerging markets regional data since Japan Asia Latin (ex-japan) America China Range Current Level Year Ago South Asia Emerging Markets Korea & Taiwan EMEA World

18 100 % Dispersion by Sector Chiron Developed Market Intra-Sectoral Dispersion 1 and Stock Specific Risk Current Readings Compared to Long-Term History Percentiles (1=Narrowest, 100=Widest) 1987 Through December Energy Materials Industrials Consumer discretionary Source: Chiron Investment Management, LLC 1 Cheapest 10% compared to sector. Staples Health Care Financials Technology Telecommunication Utilities

19 Energy Materials Industrials Consumer Discretionary Staples Health Care Financials Technology Telecommunication Utilities Real Estate Sector Allocation ( ) 30.0% 25.0% 20.0% 15.0% 10.0% CCAPX MSCI ACWI 5.0% 0.0%

20 Dispute: Powerful Downside Protection $2.50 Dispute Basket and Equity Universe Returns as of December 31, 2017 $2.00 Equity Universe 10 Yrs: 100.9% $1.50 Spread: 10 Yrs: % Annual: -8.4% $1.00 $0.50 Dispute 10 Yrs: -11.1% Dispute Basket Equity Universe (Developed Market*) $ *The Chiron Equity Universe for the Developed Market consists of Large and Mid-Cap Developed Market Stocks in all developed countries within MSCI All Country World Index. Dispute Basket refers to the worst 10% of the Chiron Dispute Model The investment process described herein is included as a general illustration of the process the investment team follows and may change over time. The statements herein are based on the beliefs and assumptions of our portfolio management team and on the information currently available to our team at the time of such statements. Although we believe that the expectations reflected in these statements are reasonable, we can give no assurance that these expectations will prove to be correct. The information contained in this presentation does not, in any way, constitute investment advice. Opinions, forecasts, assumptions, estimates and commentary or other discussions of potential future events and their impact on any investment strategy are based solely on the opinion of Chiron and may change without notice at any time. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than the original cost.

21 Our Proprietary Research Framework is Built on Two Key Pillars: Chiron Earnings Quality Framework Global Dispute Model Source: Chiron Investment Management, LLC.

22 Fund Statistics (as of )

23 Portfolio Composition (as of ) 1 The Fund s assets include the notional value of derivatives used to obtain long exposure as well as the notional value of derivatives used for hedging purposes, as applicable. 2 The Dispute Hedge includes total return swaps used to short exposure to the equity asset class and the Equity Index Hedge includes the estimated delta-adjusted exposure of index options and a long volatility index position, all as a hedge on the long equity position of the Fund.

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25 Fund Performance Fund Performance (Average Annual Total Return %) One Month As of Three Month YTD Since Inception CCAPX Class I 0.90% 2.40% 15.30% 11.39% 60% MSCI ACWI (Net)/40% FTSE WorldBIG 1.09% 3.83% 17.11% 9.01% MSCI ACWI (Net) FTSE WorldBIG 1.61% 5.73% 23.97% 13.94% 0.32% 1.03% 7.43% 4.74% Lipper Mixed-Asset Target Allocation Growth 0.99% 4.05% 15.70% 9.83% Morningstar World Allocation Category 1.09% 3.21% 14.79% n/a Past performance does not guarantee future results. The performance data quoted represents past performance and current returns maybe lower or higher. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than the original cost, and current performance may be lower or higher than the performance quoted. Source: SEI Investments Distribution Co.

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27 The Chiron Capital Allocation Fund is distributed by SEI Investments Distribution Co. (SIDCo). SIDCo is not affiliated with Chiron Investment Management Company. Investing involves risk, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. The Fund uses investment techniques that are different from the risks ordinarily associated with equity investments. Such techniques and strategies include REIT risk, derivative risks, foreign investment and emerging markets risks, which may increase volatility and may increase costs and lower performance. Chiron Investment Management, LLC is a registered investment adviser. Chiron Investment Management is an active manager that uses a variety of analytical tools and market signposts that inform its investment decision making. The materials contained herein are provided for illustrative purposes only and are not intended to constitute investment advice or an investment recommendation within the meaning of the federal, state, or local securities laws. These charts contain historical market data only and do not reflect actions that were or might have been taken by the Chiron Investment Management team if faced with similar data inputs. You are solely responsible for evaluating and acting upon the information contained in these materials if you choose to act on them without the involvement Chiron Investment Management as your adviser. Chiron Investment Management will not be liable for any direct or incidental damages or losses resulting from applying any of the information obtained from these materials or from any other source mentioned. Chiron Investment Management does not render any legal, tax or accounting advice and the educational and market information contained in this material should not be construed as such. Please consult with a qualified professional for advice in these disciplines. The variables selected for use in the computations shown are for illustrative and educational purposes only and were selected in the sole opinion of Chiron Investment Management, LLC and may change without notice at any time. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions, there can be no assurance that actual results will not differ materially from expectations. Past performance is no guarantee of future results. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Chiron Investment Management, LLC Chiron Investment Management, LLC. All rights reserved. Not a Deposit Not FDIC Insured May Lose Value No Bank Guarantee Not Insured By Any Federal