PHEIM ASSET MANAGEMENT (ASIA) As at August 2012
Pheim Asset Management (Asia) Who are we Pheim Asset Management (Asia) Pte Ltd was founded by Dr. Tan Chong Koay in 1995. We are one of the oldest boutique fund management houses in Singapore with a track record spanning 17 years. We are also related to Pheim Malaysia which was founded in 1994 and Pheim Unit Trust Berhad which began operations in 2002. Our firm provides portfolio management services to institutions, government linked accounts and high net worth individuals. Funds are managed on a fully discretionary basis. AUM: US$100m What set us apart Long Track Record of 17 years Unique and Proven Investment Philosophy and Process Strong outperformance for consecutive years 2
Investment Personnel (Singapore) Ms. TEO, Justine Associate Director, Head of Investments Responsible for strategic & tactical asset allocation of the portfolios 13 years working experience; B.Sc (Hons), CFA Covers Hong Kong, China & Korea Mr. YEOH, Chih Hong Senior Portfolio Manager 7 years working experience; B.Eng ( Hons) Covers India, Indonesia, Vietnam & Singapore Mr. SEE, Kuan Min Senior Investment Analyst 4 years working experience; B.Comp (Hons) Covers Malaysia & Taiwan Co-covers Philippines & Thailand Ms. LEE, Samantha Investment Analyst 5 years working experience; B.A Co-covers Philippines & Thailand 3
ASEAN Emerging Companies Growth Fund (USD) - managed up to December 2011 - Standard Deviation (Fund) 27.5% - Standard Deviation (Index) 29.2% +8.8% annualized return (Fund) +1.5% annualized return (Index) For more details, please refer to Factsheet 4
Pheim Vittoria Fund (USD) - managed up to December 2011 - Standard Deviation (Fund) 22.5% - Standard Deviation (Index) 23.5% +10.2% annualized return (Fund) +8.7% annualized return (Index) For more details, Please refer to Factsheet 5
Composite Portfolio Account s Performance Asia Ex Japan Fund - Standard Deviation (Fund) 18.9% - Standard Deviation (Index) 21.2% +6.5% annualized return (Fund) +0.7% annualized return (Index) 6
Verification of Track Record In 2003, Watson Wyatt Investment Consulting verified Pheim Asset Management Sdn Bhd and Pheim Asset Management (Asia) Pte Ltd s performance to be in conformity with the Level I verification standards of the AIMR Performance Presentation Standards (AIMR-PPS ) 10 Consecutive years of Outperformance against KLCI Index Pheim Asset Management Sdn Bhd has outperformed the benchmark (KLCI) for its Malaysian Composite (all Malaysian mandate accounts combined) every year for 10 consecutive years (1994-2003) since inception (Watson Wyatt Malaysia) 9 Consecutive years of Outperformance against Respective Benchmarks Pheim Asset Management (Asia) Pte Ltd has outperformed the respective benchmarks every year for each Composite for 9 consecutive years (1995-2003) since inception. Pheim Singapore tends to perform better during periods when the markets experienced negative returns (Watson Wyatt Singapore) 7
Flagship Funds (managed up to December 2011) ASEAN EMERGING COMPANIES GROWTH FUND (ASEAN Fund) Was awarded Best of the Best Performance Awards 2011 for 3 years and 5 years under the ASEAN Equity Category by Asia Asset Management from Hong Kong Ranked No. 1 in terms of total returns in US dollars, for ALL the 1-to-15-year periods by Morningstar, for the Morningstar Category ASEAN Equity Funds as at December 2010 1 Ranked No. 1 in terms of Returns by S&P s for 3 and 5-year periods among offshore funds in the ASEAN category for 5 consecutive years ended 2000, 2001, 2002, 2003 and 2004 THE VITTORIA FUND (Asia Ex-Japan Fund) Rated 5 Stars 2 against 863 funds in the Morningstar Asia Pacific Ex-Japan Category over the prior 3-year period up to 30 June 2010 1 Ranked in the 1 st Quartile by S&P for 3 and 5-year periods in the Asia Pacific ex Japan category for 3 consecutive years ending 2002, 2003 and 2004 1 Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star 2 Source: Morningstar Inc. Total returns in USD, NAV to NAV with dividends re-invested: Date: 30 Dec 10 (Asean Emerging Companies Growth Fund Ltd) / 30 June 2010 (The Vittoria Fund Ltd). All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely after the date of publication. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guarantee of future results. 8
Investment Philosophy Active Approach To Investment Asian financial markets are less efficient Skilled fund managers are better equipped to find undiscovered gems While Asian markets are cyclical and volatile, the higher risks have been associated with higher returns Value Investing And Not Fully Invested At All Times Fundamental value investors Due to the volatility of Asian markets, we do not believe in being fully invested at all times. Rather, we seek to trim our equity exposure when we believe that the market is near its peak in order to preserve capital. Conversely, we seek to increase equity exposure when we believe that the market is near its bottom. 9
Stock Selection Process 1. Idea Generation Research Reports Stock screening tools Analyst recommendations Company visits Country visits Investment Conferences 4. Present in Investment Committee Meetings (ICM) Company visits notes are tabled at weekly ICM Recommendations, ideas and stocks are discussed ICM members pool experience & knowledge in respective areas of coverage to evaluate stock 2. Check against Investment Criteria Experienced management Growing Industry Good earning prospects Cheap Valuation Strong Balance Sheet 5. Pre-Trade Compliance Check Designated Fund Manager (FM) will submit pre-trade compliance form for clearance before execution 3. Channel Checks Analyst comments Company visits Check with company s competitors Broker comments News articles and Google 6. Execution by Fund Managers FM will send orders to brokers FM will allocate the trades done on fair and equitable basis 10
Investment Criteria Quantitative factors Strong Balance Sheet Low Gearing Strong Cash Flow Positive Earning Dynamics Strong Earnings Growth Dominant Market Position Pricing Power Attractive Financial Ratios Management Good Integrity Capable & Focused Significant Equity Interest Governance Qualitative factors Strong Corporate Governance High Level of Transparency Low P/E Low P/B High Margins Technical Factors Tracking the Turning Points of Major Trends 11
Investment Committee Meeting Purpose The Investment Committee Meeting is held every Saturday morning to review portfolio performance and discuss asset allocation and stock selection Decision Making Decision making based on team effort basis Consensus from Committee Members In the event of difference in views, veto powers lies with Head of Investments 12
Internal Controls Compliance Pre-trade compliance checks for stocks before trade execution Checks are made against investment mandate, shareholdings to screen for conflict of interests etc Approval Stocks have to be approved by the Investment Committee Members Buy notes outlining the basis are to be tabled in the ICM agenda Dealing Executed only by Authorized & Licensed Investment Representatives Fair dealing and trade allocation Minimal Conflict of Interest No Proprietary Trading 13
Risk Management Internal Controls Single Stock limit Single Company limit Single Country limit No leveraging Constant monitoring of portfolio risk including tracking errors, standard deviations. Sell Discipline Material adverse changes in country s socio political developments or economic and sector outlook Adverse changes in company s fundamentals Changes in management or business focus Prices have appreciated to such an extent that they are materially ahead of the intrinsic value or trading at significant premium over comparable shares 14
Recent Awards Awards for Our Funds Pheim Asia Ex-Japan Islamic Fund ranked as best performing fund in the Equity Asia Pacific Ex-Japan category for 5-year period ending December 2011. (fund return 4.58% vs benchmark return of -9.14%). Source : The Edge Lipper Malaysia 2012 ASEAN Emerging Companies Growth Fund Ltd awarded Best of the Best Performance Awards 2010 & 2011 for 3 years and 5 years under the ASEAN Equity Category by Asia Asset Management from Hong Kong (second consecutive win) ASEAN Emerging Companies Growth Fund ranked No 1. in terms of total returns in US dollars, for ALL 1- to 15-year periods as at end of December, 2010 for the Morningstar Category ASEAN Equity Funds Vittoria Fund was rated 5 Stars against 863 funds in the Morningstar Asia Pacific Ex-Japan Category over the prior 3-year period up to 30 June 2010 15
Recent Awards Awards for Dr. Tan Best of the Best Country Awards 2010, CEO of the year for Malaysia by Asia Asset Management from Hong Kong China Top 10 Financial Intelligent Persons Award 2010 中华十大财智人物 特别奖 - 19 Dec 2010 APEA (Asia Pacific Entrepreneurship Awards) 2010, Outstanding Entrepreneurship Award 29 Oct 2010 Best of the Best Awards 2008, CEO of the year for Malaysia by Asia Asset Management Named Southeast Asia s Small-Cap King by Bloomberg in August 2006 Named the Second Board King by Bloomberg in Malaysia for his welltimed investments in small-cap companies in 1995/1996 16
Pheim Asset Management (Asia) Pte Ltd BOARD OF DIRECTORS MR. LIM, YOKE HEAN (CEO) MR. TENG, CHEONG KWEE DIRECTOR DR. TAN, CHONG KOAY (FOUNDER) CHIEF, CORPORATE DEVELOPMENT & STRATEGY INVESTMENT MS. TEO, JUSTINE, CFA, B.Sc (Hons) ASSOCIATE DIRECTOR, HEAD OF INVESTMENTS MR. YEOH, CHIH HONG, B Eng (Hons) SENIOR PORTFOLIO MANAGER OPERATIONS & MARKETING MS. YAP, CHRISTINA B.Sc. (Hons) OPERATIONS MGR & & BUSINESS DEVELOPMENT COMPLIANCE MR. PREMKUMAR, RAJIV LLB (Hons) COMPLIANCE OFFICER MR. SEE, KUAN-MIN, B Comp (Hons) SENIOR INVESTMENT ANALYST MS. LEE, SAMANTHA, B.A INVESTMENT ANALYST OPERATIONS MS. THAM, JASMINE, B.A. (Hons) SENIOR OPERATIONS OFFICER 17
Pheim Asset Management Founder Dr. Tan, Chong-Koay Pheim Asset Mgt Sdn Bhd, Malaysia (1994) TEXT Pheim Asset Mgt (Asia) Pte Ltd Singapore (1995) Pheim Unit Trusts Bhd, Malaysia (2002) 18
Shareholding Pheim Asset Management Sdn Bhd - Malaysia Aizawa Securities Co., Ltd 5.0% Omar Bin Malek Ali Merican 15.0% Azmi Bin Malek Merican 15.0% Multi Purpose Capital Holdings Bhd 20.0% Dr. Tan Chong Koay 45.0% Pheim Asset Management (Asia) Pte Ltd - Singapore Aizawa Securities Co., Ltd 5.0% Omar Bin Malek Ali Merican 28.5% Dr. Tan Chong Koay 66.5% 19
Thank You 20
Contact Details Pheim Asset Management (Asia) Private Limited Address: 43 Duxton Rd, Singapore 089507 Telephone: +65 6227-9928 Facsimile: +65 6225-9912 Email: pheim@pheim.com.sg Website: www.pheim.com.sg 21
Disclaimer While the following informational materials contained within this presentation are believed to be reliable and gathered from credible sources, there is no warranty or guarantee of the accuracy of the information provided by the company and its group affiliates, employees or directors. The material provided is for information purposes only and of itself does not constitute nor should be construed as an offer to sell or any solicitation or any offer of invitation to purchase or subscribe for interests or securities in Singapore or any other jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with any, contract or commitment whatsoever. The information is intended for institutional and accredited investors and the recipient should be aware of the securities laws and regulation of your jurisdiction in your review of the material. The material should not be construed as formal investment, legal, tax or accounting advice and such formal advice should be acquired by any individual investor prior to making an investment. The strategies, instruments and/or opinions in that regard contained within the material may not be suitable or appropriate for all investors. The material does not account for the individual investor s risk requirements, needs, circumstances and objectives. Past performance is not indicative or a warranty of future results. PHEIM expressly disclaims any liability, including incidental or consequential damages arising from errors or omissions in this publication. The value of interests or securities in the Funds and the income derived from them may fall as well as rise. The interests or securities in the Funds are not obligations of, deposits in, or guaranteed by PHEIM or any of its group affiliates. All investment products, including without limitation to derivatives products, are subject to investment risks, including possible loss to principal investments held. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income and occupancy, changes in operating expenses, including employee wages, benefits and training, property expense and governmental and public policy changes and the continued availability reliance on these forward-looking statements, which are based on PHEIM s current view of future events. This presentation has been prepared by PHEIM. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. Neither PHEIM nor any of its agents or advisers, nor any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Neither this presentation, nor any copy or portion of it, may be sent, taken, transmitted or distributed, directly or indirectly, in or into the United States, Japan or Canada, or to any U.S. person (as such term is defined in Regulation S under the Securities Act of 1933, as amended). It is not an offer of securities for sale into the United States. The interests or securities in the Funds may not be offered or sold into the United States, Canada or Japan or to, or for the account or benefit of, U.S. persons unless they are registered or exempt from registration. The interests or securities in the Fund have not been and will not be registered under the Securities Act or the securities laws of any state of the United States. There will be no public offer of securities in the United States. 22