Hermes Linder Fund SICAV Fund Presentation. April 2018

Transcription

1 Hermes Linder Fund SICAV Fund Presentation 1

2 Contents 1 Who we are 2 Hermes Linder Fund strategy 3 Structure and conditions 4 Hermes Linder Fund Performance 5 How to invest 6 Swiss Investor Information 7 Disclaimer 2

3 1 Who we are The value of experience 3

4 1 Who we are Praude Asset Management was established in December 2009 in Malta, as a limited liability company. In January 2010 the company was granted a Category 2 Licence by the Malta Financial Services Authority (MFSA), authorizing Praude to provide investment services and to hold and control clients money and assets. In addition, Praude qualifies as a 'UCITS Management Company' pursuant to Directive 2009/65/EC and as a 'De Minimis' Licence Holder pursuant to article 3 of 2011/61/EU. Praude was conceived from the idea that the professional management of a portfolio could be of benefit to an investor, only if and to the extent that, such management will effectively achieve positive performance through the accurate management of risk. Our main goal is long term sustainable performance growth. Praude is a small and independent manager without conflicts of interest. The only publicity that Praude engages in is that emanating from its performance. Praude does not engage in the promotion or sale of its own investment products. Praude currently manages two funds that have adopted a similar investment strategy. Current Assets Under Praude s Management add up to around and Advisory add up to around million Euro. 4

5 1 Who we are Hermes Linder Fund, currently consists of around 55% of AUM of Praude. With the aim of offering investors a new product, enabling clients to preserve and appreciate their capital in a number of different market conditions, Praude decided to constitute and manage a new Fund: Altinum Fund. 5

6 2 Hermes Linder Fund Strategy Investment, not speculation 6

7 2 Hermes Linder Fund Strategy Hermes Linder is an open-ended Fund under the laws of Malta and organized as a multi-fund liability company with variable share capital. It is licensed by the Malta Financial Services Authority (MFSA) and is qualified as a Maltese UCITS in terms of the Investment Services Act (Marketing of UCITS) Regulations Hermes is authorised for distribution in Luxembourg, Italy, Switzerland and Malta. Hermes Linder s investment objective is to achieve long-term appreciation principally through value investing, mainly in major equity markets. There are different ways to achieve the so called value investing strategy. Hermes Linder uses a bottom-up approach, selecting shares of firms with: 1. Forecastable business 2. With stable growth of earnings 3. Good management 4. Low financial leverage 5. Good dividend yields which trade at reasonable multiples. The decision to build any new position is taken once we are convinced that there is value, and positions are normally held for the longer term (sometimes months or even years). We specialise in investing, not in speculating. 7

8 2 Hermes Linder Fund Strategy How is the investment decision taken? Via external research Via media In house developed software External Advirors/Risk manager Fundamental Analysis Bottom-up approach For the stock selection Quantitative Analysis For the control of the risk of the position (to be compliant with UCITS rules, and control the whole portoflio s risk) Via data providers Bloomberg analysis Company annual report analysis HERMES LINDER FUND There isn t any hard and fast rule to value investing. But our track record demonstrates that we are able to create value for our investors. 8

9 2 Hermes Linder Fund Strategy Stable Earnings Growth Forecastable Business Low Multiples Good Dividend Yield Good Management Low Leverage The above characteristics are the fulcrum on which Hermes strategy and rationale is based. Stocks are picked on the above criteria, which provide the ideal recipe for stable long term growth and stable recurring return. 9

10 Number of years Invested 2 Hermes Linder Fund Strategy The Fund invests for the long term in the underlying securities and the portfolio is held stable with few movements. Below is a chart of the main holdings of the Fund together with the respective time period they have uninterruptedly been held in the Fund Vienna Airport, 3.05% 14 Vaudoise Assurances, 1.49% 12 Zurich Airport, 6.50% Interpump, 1.00% Schaltbau, 2.45% El.en, 2.17% Banca Ifis, 2.66% 2 La Doria, 0.94% % 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% % Weight in Fund 10

11 3 Structure and Conditions Treating the shareholder s money as our own 11

12 3 Structure and Conditions Management shares the same interests as shareholders. Hence: They are strongly encouraged to invest in the Fund and are effectively substantially invested; The Asset Management Company and its shareholding company have invested a significant amount in the Fund Low level of Management Fees; The performance fee scheme [for classes A and C] is aligned with normal market standards, based on a High Watermark/ NAV Target structure. Hence no performance fees will be accrued unti this target is reached and exceeded. Thus if we can t obtain a minimum return for our clients investments, we will not benefit at the investors expense; Even if the Fund is allowed to use leverage (and the notional position on the equity side may go higher than the AuM of the fund), the exposure to the systemic risk of the Portfolio (i.e. the so called delta ) will never be over the AuM. Shareholders have the right to know how their investments are doing and have the facility to exit the investment in a reasonable time frame. So: Official NAV evaluation is on a daily basis; Accessibility to the Portfolio Manager at all time to discuss markets and similar issues of a generic nature; Short redemption period. 12

13 3 Structure and Conditions - Independent Manager - Up to 370 million of Asset Under Management - History of Success in the management of Funds Investment Manager - The largest Bank in Malta, participated by the Government of Malta and Unicredit Group - Proven experience as Fund Custodian Bank Custodian Service Providers - Owned and controlled by Bank of Valletta - Recognised by the MFSA to provide Fund administration services - Largest Fund administrator in the Maltese market - Belong to the group BancaStato, controlled also by Canton Ticino - It s one of the best private bank in Switzerland, granting to Hermes Linder access to all the necessary markets Administrator Broker & Sub- Custodian - Well Know Global company - Global, integrated approach combines insight and innovation from multiple disciplines, included: Audit, Tax, consulting Auditors - More that 18 years experience in the UK & US; offices in London, NY, San Francisco, Hong Kong & Malta - Winner of Best Regulatory Consultancy UK by the Hedge Fund Journal in 2014 amongst others - Leader in services as: Compliance Advisory Services Hedge funds and Risk Management Compliance 13

14 3 Structure and Conditions Fees and dealing details: Class A Class B Class C* Management Fee 1% pa 2% pa N/A Performance Fee** 15% pa on NAV Target N/A 25% pa on NAV Target Minimum Subscription/Holding 15,000 15,000 15,000 Trading Frequency Every Business Day Every Business Day Every Business Day Redemption Notice One [1] Business Day One [1] Business Day One [1] Business Day * Class C is not yet active ** Performance fee is based on NAV Target 14

15 4 Hermes Linder Fund Performance Creating value though prudent and calculated investing 15

16 31/11/ /10/ /09/ /08/ /07/ /06/ /05/ /04/ /11/ /05/ /10/ /04/ /09/ /03/ /08/ /02/ /07/ /01/ /06/ /08/ /09/ /09/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /09/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/ /02/ /02/ /03/ /03/ Hermes Linder Fund Performance [Class A] 7, CAGR % 6, , , , , , , Hermes Linder Fund Class A has provided investors with a stable positive return since inception. Compounded annual return %. From /share % To 5, per share

17 31/12/ /05/ /10/ /03/ /08/ /01/ /06/ /08/ /08/ /09/ /09/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /08/ /09/ /09/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /09/ /10/ /10/ /10/ /11/ /11/ /12/ /01/ /01/ /01/ /02/ /02/ /03/ /03/ Hermes Linder Fund Performance [Class B] CAGR % 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% Hermes Linder Fund Class B compounded annual return %. From /share % To 1,974.31/share

18 31/11/ /12/ /01/ /02/ /03/ /04/ /05/ /01/ /07/ /02/ /08/ /03/ /09/ /04/ /10/ /05/ /08/ /09/ /09/ /10/ /10/ /11/ /12/ /12/ /01/ /02/ /02/ /03/ /04/ /04/ /05/ /05/ /06/ /07/ /07/ /08/ /08/ /09/ /10/ /10/ /11/ /12/ /12/ /01/ /01/ /02/ /03/ /03/ /04/ /05/ /05/ /06/ /07/ /07/ /08/ /08/ /09/ /10/ /10/ /11/ /11/ /12/ /01/ /01/ /02/ /03/ /03/ Hermes Linder Fund Performance vs Indices 550% 450% CAGR % 350% 250% 150% CAGR % 50% CAGR % CAGR % -50% Since inception, Hermes Linder Fund Class A has outperformed a number of headline indices. 18

19 5 How to Invest For further information kindly consult the Key Investor Information Documents [KIIDs] found in our website. Should you have any queries kindly contact us on the address and telephone number found at the back of this presentation. 19

20 6 Swiss Investor Information Country of Domicile: Swiss Paying Agent: Swiss Representative: Malta Societe Generale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, Switzerland Societe Generale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, Switzerland The Prospectus, Key Investor Information Documents, the Memorandum and Articles of Association, Annual and Interim Financials may be obtained free of charge from the Representative in Switzerland. In respect of the shares/units distributed in and from Switzerland, the place of performance and jurisdiction are at the registered office of the Representative in Switzerland 20

21 7 Disclaimer Nothing in this presentation should be taken as a recommendation to anyone to buy, hold, or sell certain securities or any other investment mentioned herein. Investors are reminded that there can be no assurance that past performance will continue, and that a private fund s current and future portfolio holdings always are subject to risk. As with all funds, investing in Hermes Linder Fund involves risk including potential loss of principal. This document does not constitute an offer to sell, or a solicitation of an offer to buy membership interests in Hermes Linder Fund. Before making an investment decision with respect to the fund, we advise potential investors to carefully read the offering memorandum, the operating agreement, the related subscription documents, and to consult with their tax, legal and financial advisors. The securities are being offered in reliance on an exemption from investment company registration. Past performance is not necessarily indicative of future results. All returns indicated are net of advisory fees, transaction costs, and dividends. There should be no assumption that any specific portfolio securities identified and described herein were or will be profitable. All information provided herein is for informational purposes only and should not be deemed as a recommendation to buy or sell securities. All investments involve risk including the loss of principal. This document is confidential and may not be redistributed without the written consent of Praude Asset Management LTD, and does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product. Any such offer or solicitation may only be made by means of delivery of an approved confidential offering memorandum. Please contact us if you would like any materials such as our investment presentations. We have compiled all information herein from sources we believe to be reliable but cannot guarantee its accuracy. Praude Asset Management LTD Level 14, Portomaso Business Tower Portomaso St Julian s STJ 4011 Malta info@praude.com.mt Phone number: