We are fully aligned with our investors, with significant internal money under management, in addition to third-party mandates

Transcription

1 April 2018

2 Hansa Trust is a proprietor based investment trust blending best-in-class third party funds, a global equity portfolio and a strategic holding in Ocean Wilsons Holdings Managed by Hansa Capital Partners the trust adopts a long-term approach, ignoring short-term noise, with a focus on the growth and preservation of capital. We are fully aligned with our investors, with significant internal money under management, in addition to third-party mandates This patient approach to managing money leads to natural bias towards equities albeit one that is dynamically dialled up and down as influenced by the economic cycle The strategic holding in Wilson Sons, held through the stake in Ocean Wilsons Holdings, gives access to the large and growing Brazilian logistics and container industries. Wilsons has created significant economic value through time which has been reflected in exceptional long-term share price performance 2

3 Index History of Hansa & Strategic Review Performance Review Portfolio Positioning & Characteristics Ocean Wilsons Holdings Market Outlook Appendix 3

4 History of Hansa & Strategic Review 4

5 Hansa timeline Rea Brothers acquire a number of investment companies, including Scottish and Mercantile Finsbury Trust becomes Hansa Trust Hansa Trust began life as Scottish and Mercantile Investment Company Rea Brothers purchases 58% of Ocean Wilsons Holdings Limited Scottish and Mercantile becomes Finsbury Trust Strategic review of Hansa Trust initiated Rea Brothers was formed The Salomon Family obtain control of Rea Brothers Rea Brothers was sold Ocean Wilsons successfully floats 41.75% of Wilson Sons Limited on the Sao Paulo and the Luxembourg Stock Exchanges A history of buying and selling large strategic stakes 5

6 Corporate structure 6

7 Strategic Review Hansa Trust March 2018 Hansa Trust January 2014 Description Portfolio Weight Core Regional Thematic Description Core Regional exposure based on the output of the Hansa House View. Thematic Growth sectors such as biotechnology and technology Portfolio Weight 34.3% 5.6% UK Equities Special situation UK equities but also included larger UK holdings 65% Global Equities Equity exposure through direct global holdings 16.5% Strategic Stakes Wilson Sons Brazilian operating assets (includes Ocean Wilsons Investment portfolio) 35% Diversifying Diversifying investments. As business cycles mature we seek to dynamically shift to those asset classes and sectors which will add portfolio protection Strategic Stakes Wilson Sons Brazilian operating assets 12.5% 19.7% Diversifying Ocean Wilsons Investments Limited Fund portfolio 11.3% The Four Silo Approach - By blending assets and managers with different characteristics we aim to develop the optimal portfolio 7

8 Performance Review 8

9 Performance to end March months One year 5 years (p.a.) 15 years (p.a.) NAV Performance TR -2.0% 6.3% 5.9% 12.9% NAV Performance ex. OWHL TR -1.8% 6.0% 8.5% 10.9% Ordinary Share TR -4.6% 16.5% 5.6% 12.7% A Ordinary Share TR -3.7% 17.3% 5.8% 12.6% FTSE All-Stocks Gilts TR 0.3% 10.5% 4.2% 5.3% UK CPI 0.1% 2.4% 1.4% 2.2% MSCI All Country World Index NR GBP -5.0% 2.2% 11.0% 10.0% FTSE All Share TR -6.9% 1.2% 6.6% 9.1% 600% 500% 400% 300% 200% 100% 0% Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 NAV Cum Income TR Ord Share TR A Ord Share TR Source: Hansa Trust internal, unaudited data: Bloomberg, FTSE 9

10 Performance of the different silos one year to 31 March % 12% 10% 8% 6% 4% 2% 0% -2% Core Regional Funds Global Equities Thematic Diversifying (ex OWHL) Ocean Wilsons Holdings Limited Cash/FX 10

11 Performance Contribution 1 Year to end March 2018 OWHL Private Equity 25,000,000 Core Regional Funds Global Equities Thematic Diversifying 10,182, ,109 23,016,550 20,000,000 77, ,821 15,000,000 10,000,000 5,000,000 2,832,912 1,068, , , , , , , , , , , , ,317 36, ,619 1,158,996 1,508,408 1,448, , , , , , , , , ,656 57,989 17,870 65, , , , , , , , ,954 1,417,243 1,859,927 62,980 52, , ,801 67,150 52,739 29,313 1,457 24,780 38,085 82, , ,909 - Goodhart: Hanjo Indus Japan Long Only BlackRock Eur Hedge SISF Asian Total Return Findlay Park American BlackRock Frontiers Prince Street Inst Odey Absolute Return Adelphi Eur Select Equity SR Global Frontiers ishares Euro Stoxx Select Equity Offshore Vanguard Dev Eur ex UK NTAsian Discovery Indus Japan JPY Unhedged Vulcan Value Equity Pershing Square Interactive Brokers Hansteen Holdings Hilton Food UBM CBRE Orion Engineered Carbons Alphabet Coca-Cola Bottlers Japan Berkshire Hathaway Exor Samsung Howard Hughes Corp Orange Iridium Nutrien Tripadvisor Bayer AG Softbank CK Hutchison White Mountains Liberty Global CVS Health Equities Sold During Period GAM Star Tech SPDR MSCI World Fins Worldwide Healthcare Global Event Partners Ltd Keynes Dynamic B Strategy CZ Abs Alpha UCITS GAM Core Macro Gladwyne GBP BNY Abs Return Bond Fund Schroder GAIA BlueTrend Hudson Bay MKP Opp Offshore Field Street Offshore JLP Credit Opp Ocean Wilsons Holdings DV4 Ltd Cash/FX Fund Holdings sold during period Total 11

12 Performance Contribution 3 Years to end March 2018 OWHL Private Equity 80,000,000 Core Regional Funds Global Equities Thematic Diversifying 33,512, , ,527 71,212,667 70,000,000 60,000, ,169 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 3,938,524 3,324,895 2,725,302 2,678,145 2,094,908 1,908,942 1,530,368 1,119, , , , , ,381 36, , ,652 3,020,361 3,971,569 2,209,040 1,566,580 1,508, , , , , , , , ,656 57,989 17,870 65, , , , , , , , ,954 3,706,154 4,556,847 97,630 52, , , , , ,581 67,150 52,739 50,283 38,733 29, ,295 - Goodhart: Hanjo Findlay Park American Select Equity Offshore SISF Asian Total Return Vulcan Value Equity Indus Japan Long Only BlackRock Eur Hedge Prince Street Inst Vanguard Dev Eur ex UK BlackRock Frontiers NTAsian Discovery SR Global Frontiers ishares Euro Stoxx Indus Japan JPY Unhedged Adelphi Eur Select Equity Odey Absolute Return Pershing Square UBM Hansteen Holdings Hilton Food Interactive Brokers CBRE Acertec Orion Engineered Carbons Alphabet Coca-Cola Bottlers Japan Berkshire Hathaway Exor Samsung Howard Hughes Corp Orange Iridium Nutrien Tripadvisor Bayer AG Softbank CK Hutchison White Mountains Liberty Global CVS Health Equities Sold During Period GAM Star Tech SPDR MSCI World Fins Worldwide Healthcare JLP Credit Opp Global Event Partners Ltd Field Street Offshore Hudson Bay Keynes Dynamic B Strategy CZ Abs Alpha UCITS GAM Core Macro BNY Abs Return Bond Fund MKP Opp Offshore Gladwyne GBP Schroder GAIA BlueTrend Ocean Wilsons Holdings DV4 Ltd Cash/FX Fund Holdings sold during period Total 12

13 Performance of less correlated funds 1 June 2016 to 31 March 2018 A basket of lower-correlated funds have been purchased since June/July The performance since has been positive and outperformed bonds and cash. 25% 20% 15% Performance (GBP) 10% 5% 0% 8.1% 6.6% 4.7% 2.3% -5% -10% -15% 13

14 Transactions 1 April 2017 to 31 March 2018 Equity Purchases 42.0m: White Mountains Insurance Group 3.0m CK Hutchison 2.8m Exor NV 2.7m BerkshireHathaway 2.7m Samsung 2.6m Orange 2.6m Softbank 2.5m Alphabet 2.4m Liberty Global 2.3m CVS Health 2.1m Interactive Brokers 2.1m Coca-Cola Bottlers Japan Holdings 2.1m Bayer AG 2.1m Howard Hughes Corp 1.9m Orion Engineered Carbons 1.9m Nutrien 1.8m CBRE Group Inc. 1.7m TripAdvisor 1.4m Iridium Communications Inc. 1.3m Equity Sales 36.2m: NCC Group - 6.4m (profit of 4.3m) Experian Group Limited 6.3m (profit of 4.1m) UBM PLC - 5.5m (profit of 1.9m) Galliford Try PLC - 4.9m (profit of 2.6m) Cape PLC 4.1m (loss of 0.5m) Brooks Macdonald Group PLC 3.9m (profitof 1.5m) Goals Soccer Centres 2.3m (loss of 0.5m) HargreavesServices 2.3m (loss of 49k) Altitude Group PLC - 1.5m (profit of 0.7m) ImmuPharma - 0.6m (loss of 0.3m) RedT Energy PLC - 0.1m (loss of 0.8m) CAP-XX Ltd - 0.1m (loss of 1.0m) Gordon Dadds Group 64k (loss of 1.1m) Fund Purchases 15.8m: ishares EURO STOXX Mid UCITS ETF 5.1m SR Global Fund Frontier Markets 2.6m Blackrock Frontiers Investment Trust 2.4m Pareturn Gladwyne Absolute Credit UCITS GBP 1.6m Worldwide Healthcare Trust 1.6m GAM Systematic Core Macro Fund 1.3m CZ Absolute Alpha UCITS Fund 1.3m Fund Sales 12.8m: SSgA GBP Liquidity Fund - 3.8m (profit of 3k) JLP Credit Opportunity Fund 2.3m (profitof 0.3m) ishares Core EM IMI UCITS ETF - 2.0m (profit of 11k) Schroder ISF Asian Total Return Fund - 2.2m (profit of 0.6m) Argentiere Fund - 1.7m (loss of 0.2m) Global Event Partners 1.6m (profit of 0.2m) Cantab CCP Core Macro Fund 1.3m (profit of 29k) 14

15 Global Equities performance by size of holding 31 March 2018 Value 31/03/18 (GBP) % of Total NAV 1 Year Performance (or since initial purchase) 3 Year Performance (or since initial purchase) Initial Purchase % of Global Security Name Date Equity Silo Hansteen Holdings PLC 25/11/2005 4,553, % 8.5% 13.8% 25.1% Interactive Brokers Group Inc 05/04/2017 3,592, % 6.7% 72.0% 72.0% UBM PLC 15/10/2010 3,569, % 6.7% 26.9% 95.6% Primary Exchange or Equity Index Hilton Food Group PLC 23/04/2014 2,993, % 5.6% 30.0% 102.7% EXOR NV 05/09/2017 2,888, % 5.4% 5.9% 5.9% Berkshire Hathaway Inc 03/04/2017 2,842, % 5.3% 6.6% 6.6% Samsung Electronics Co Ltd 08/08/2017 2,740, % 5.1% 4.6% 4.6% White Mountains Insurance 11/04/2017 2,617, % 4.9% -17.2% -17.2% FTSE Small Cap, 5.6% Borsa Italiana, 5.4% NYSE, 3.8% S&P 500, 19.3% Alphabet Inc - A Shares 18/04/2017 2,584, % 4.8% 8.3% 8.3% CK Hutchison 01/12/2017 2,555, % 4.8% -9.2% -9.2% Orange 20/02/2018 2,541, % 4.8% -0.8% -0.8% Coca-Cola Bottlers Japan 22/01/2018 2,282, % 4.3% 9.2% 9.2% DAX, 8.2% Nikkei 225, 8.5% NASDAQ, 15.4% SoftBank Group Corp 08/05/2017 2,237, % 4.2% -9.8% -9.8% Orion Engineered Carbons SA 17/07/2017 2,027, % 3.8% 7.8% 7.8% CBRE Group Inc 12/07/2017 2,017, % 3.8% 16.8% 16.8% Howard Hughes Corp 10/04/2017 1,982, % 3.7% 3.0% 3.0% Bayer AG 05/04/2017 1,813, % 3.4% -11.4% -11.4% Liberty Global Plc 05/04/2017 1,784, % 3.3% -21.9% -21.9% Nutrien 29/11/2017 1,613, % 3.0% -9.2% -9.2% CVS Health Corp 10/04/2017 1,507, % 2.8% -27.1% -27.1% TripAdvisor Inc 11/09/2017 1,339, % 2.5% -14.0% -14.0% Iridium Communications Inc 12/07/2017 1,197, % 2.2% -5.9% -5.9% Acertec Limited 10/05/ , % 0.0% 0.0% 8.7% Russell 1000, 8.6% Kospi, 9.9% FTSE 250, 15.2% Total Global Equities Silo 53,297, % 100.0% 15

16 Global Equities as at end March 2018 Geographic Exposure by Listing Asia 19% US 40% Europe 41% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Performance 1 April 2017 to 31 March 2018 World Index FTSE 100 Global Equities Performance

17 Portfolio Positioning & Characteristics 17

18 Current Positioning (as at 31 March 2018) 25.0% 20.0% 19.7% 15.0% 12.9% 13.1% 11.3% 10.0% 7.0% 6.3% 7.0% 5.0% 0.0% 3.7% 3.2% 1.2% 4.1% 0.4% 1.0% 3.4% 3.6% 1.8% 0.2% 18

19 Portfolio Characteristics (as at 31 March 2018) Look-through analysis of Hansa Trust portfolio, including holdings in Ocean Wilsons (Investments) Ltd* Geographic Exposure Sector Exposure 8.2% 3.6% 2.7% 1.7% 0.2% 7.0% 16.5% 8.2% 9.0% 1.0% 0.4% 8.0% 7.0% 0.2% 11.3% Asset Type 26.2% 20.4% North America Latin America Middle East & Africa UK Diversifying Hedge Funds Developed Europe ex UK Japan Asia Pacific ex Japan Middle East & Africa Emerging Europe Cash/Liquidity Funds 48.6% 12.3% 8.1% 3.5% 4.5% 3.6% 5.1% 7.8% 8.0% Dealing Frequency 3.6% 3.6% 1.0% 0.5% 0.2% 0.2% 22.8% 12.8% 8.2% 10.7% 11.3% Industrials Information Technology Middle East & Africa Financials Diversifying Hedge Funds Consumer Discretionary Consumer Staples Health Care Materials Real Estate Telecommunications Energy Utilities Cash/Liquidity Funds 41.2% 19.7% 31.0% Daily Long Only Wilson Sons Direct Equities Market Neutral Monthly Fixed Life Investment Period Complete Private Equity Long-Short Fixed Income Cash > 1 year Note: The exposures are based on the underlying holdings of the investments *Exposures in Ocean Wilson (Investments) Ltd. are based on the top 30 positions. These are subsequently grossed up to 100%. Dealing Frequency has been excluded from the look-through analysis. Ocean Wilsons Holdings Ltd Quarterly Weekly 19

20 Other Portfolio Characteristics (as at 31 March 2018) Fixed 32% Liquidity Cash 0% 1 Week 38% Annual 3rd Party Management Fees on Underlying Holdings 1 < x 1.5% 3% 1.5 < x 2% 3% 0% 46% 0 < x 1% 48% > 6 months 4% 6 months 5% 3 months 12% 1 month 9% Look-through analysis of Hansa Trust portfolio, including holdings in Ocean Wilson (Investments) Ltd. Weighted average management fee = 1.09%. This includes management fees paid to third parties and to Hansa Capital Partners LLP. 20

21 Dividend Profile Dividend Policy The Trust s dividend policy was updated in 2014, and it is now to pay two similar interim dividends each year. Barring unforeseen circumstances, the dividend is expected to grow over time reflecting the longer term returns of the portfolio. 30 Dividend Payments and Annual Yield 3.0% % Net dividend (pence) % 1.5% 1.0% 12 month yield 5 0.5% Net dividends paid during calendar year (LHS) 12 month yield (RHS) 0.0% An interim dividend of 8p was announced on 12 th April 2018 and will be paid on 31 st May

22 Discount 0% -5% -10% -15% -20% -25% -30% -35% -40% -45% -50% Hansa Trust Ord and A combined Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% -45% May-08 Nov-08 Hansa Trust Ord and A combined (relative to AIC overall average discount) May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Nov-17 Discount Look-through discount Discount Look-through discount A significant discount to asset value both absolute and relative to the broader investment trust sector. Even more so on a look through basis 22

23 Ocean Wilsons Holdings 23

24 Ocean Wilsons Holdings Ocean Wilsons Holdings is a Bermudian investment holding company whose main assets are a controlling interest in Wilsons Sons and an international investment portfolio, both run with a long-term view. The Oceans holding is controlled by the Hansa Trust board 24

25 Wilson Sons Revenue EBITDA Wilson Sons is among Brazil s largest and oldest port, maritime and logistics services companies 25

26 Wilson Sons Despite the challenges faced in Brazil in recent years, Wilsons has generated significant economic value 26

27 Wilson Sons Wilson Sons operates in a market with significant structural growth potential 27

28 Ocean Wilsons Investments (Limited) as at 31 December % 28.8% 25% 20% 15% 13.3% 10% 9.4% 8.2% 6.5% 6.4% 6.6% 5% 0% 3.0% 2.1% 2.0% 3.2% 2.7% 2.3% 1.0% 1.0% 0.5% 0.4% 2.6% Ocean Wilsons Investments (Limited) is an investment portfolio focused on achieving long-term returns while emphasising capital generation and possessing an emerging market bias 28

29 Market Outlook 29

30 Market outlook..a choppy to start to the year Local Currency Returns as of 17 Apr 2018 Start of year (1 Jan 2018) to Peak (26 Jan 2018) Peak (26 Jan 2018) to Trough (8 Feb 2018) Q YTD Equities - Regions MSCI ACWI + FM NR USD MSCI World (Developed) NR USD MSCI EM (Emerging Markets) NR USD MSCI Frontier Markets NR USD MSCI EM Asia NR USD MSCI EM ex Asia NR USD MSCI Europe NR EUR Equities - Countries MSCI North America NR USD MSCI United Kingdom NR GBP MSCI Japan NR JPY MSCI China NR USD MSCI India NR INR MSCI Brazil NR BRL MSCI Russia NR USD Equities - Sector MSCI ACWI Financials NR USD MSCI ACWI Energy NR USD MSCI ACWI Information Technology NR USD MSCI ACWI Health Care NR USD MSCI ACWI Biotech NR USD Fixed Income iboxx USD Treasuries TR iboxx USD Liquid IG iboxx USD Liquid HY FTSE UK Gilts All Stocks TR GBP FTSE UK Govt Index Linked All Stocks TR GBP iboxx GBP Non-Gilts TR JPM GBI-EM Global Diversified TR USD JPM EMBI Global TR USD JPM Corp EMBI USD Commodities Bloomberg Commodity Index TR USD Gold Bullion USD Copper Index USD European Dated Brent Index USD WTI Cushing CR USD Source: Bloomberg.markets raced ahead in January only to collapse in late January and early February. Net net little change 30

31 Market outlook..reasons for volatility Source: Deutsche Bank Source: FactSet.the catalyst for the correction appeared to be disappointing inflation numbers. Certainly the market had started to bake in persistently low inflation but another key factor is market complacency 31

32 Market outlook correction or crash? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Aggregate Index Historical Percentile P/E to Growth EV/Sales EV/EBITDA Price/Book Forward P/E FCF yield Cyclically adjusted P/E S&P500 STOXX600 under a wide range of valuation measures, equity markets are increasingly fully valued, especially the US stock market 32

33 Market outlook correction or crash? Source: Deutsche Bank.economic growth is largely improving in both developed and emerging markets. No sign of recession any time soon 33

34 Market outlook correction or crash? Source: Standard & Poors. Thompson Financial. FactSet. Credit Suisse..stronger economic growth is feeding through to improved corporate profitability. 34

35 Market outlook correction or crash?.clearly we are at an inflection point in the liquidity cycle but still huge amounts of liquidity being pumped into the system. A significant jump in yields may limit equity returns 35

36 Market outlook correction or crash? Excess & Exuberance Arguments for.. Pockets of consumer excess in areas such auto debt Overall country debt levels still high in developed economies and also in China Some signs that retail investors are increasingly viewing equities as the best asset class Volatility low Bitcoin market manias Arguments against.. Mortgage debt, which is far more important, is well under control Banks are key to healthy economies and they appear well controlled Investors still feel the pain of previous bear markets and are keen to forecast the next downturn Fund manager cash levels still high (4.7% on Merrill Lynch fund manager survey) some tentative signs that excess & exuberance are re-entering the system but not at the extremes you would normally associate with a downturn 36

37 Market outlook correction or crash?? Global Financial Crisis Liquidity pumped into the system via zero interest rate policies and QE Liquidity cycle inflects The avoidance of a global collapse in economies and the banking system saw valuations normalise across asset classes Equities rise as investors forced up the risk spectrum in pursuit of returns Bond yields collapse through zero interest rate policies and massive demand via QE..much has happened in this cycle. The question is, how close are we to the end? 37

38 Positioning technology and innovation Source: GAM. New Relic despite the strong performance, valuations remain attractive, especially if growth is taken into consideration. Tech has important implications geographically and for existing industries 38

39 Positioning emerging and frontier markets Source: GAM. Statista Digital Market Outlook..EM and FM remain structurally attractive combined with lower valuations 39

40 Positioning bonds..bonds remain unattractive albeit we watch the current rise in yields 40

41 Summary as at 31 March 2018 Look-through analysis of Hansa Trust portfolio, including top 30 holdings in Ocean Wilson (Investments) which are grossed up to 100%. Strategic Allocation Strategic 19.7% Lower Risk Assets Hedge Funds (non directional) 7.7% Cash 0.4% Bonds 1.9% Private Equity 7.5% Equities 58.5% Riskier Assets Directional Hedge Funds 4.2%..we re currently running 10% in defensive assets. We re minded to progressively increase this albeit with the provision of identifying the right assets

42 Conclusion Clearly markets are in the more mature stages of their lifecycle Higher valuations remove the safety net and can lead to higher portfolio volatility and being susceptible to disappointment For this reason we are getting prepared to add to more defensive positions as the cycle evolves It is also the case though that for now we see continued upside in equities.often the later, momentum stages of stock market cycles can represent powerful periods for performance 42