Hansa Investment Company Ltd · LSE:HAN
Hansa Investment — Hansa Trust — Investor Presentation (September 2018)
38 slides from Hansa Investment's investor presentation, September 2018
Slide 1: Hansa Trust PLC September 2018
(&® HANSA TRUST PLC September 2018
Slide 2: Hansa Trust is a proprietor based investment trust
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
Slide 3: Index
HANSA TRUST Index • History of Hansa & Strategic Review • Performance Review • Portfolio Positioning & Characteristics • Ocean Wilsons Holdings • Market Outlook • Appendix 3
Slide 4: History of Hansa & Strategic Review
History of Hansa & Strategic Review 4
Slide 5: Hansa timeline
HANSA TRUST Hansa timeline Rea Brothers acquire a number of Finsbury Trust becomes investment companies, including Hansa Trust Scottish and Mercantile Rea Brothers purchases Strategic review of Hansa 58% of Ocean Wilsons Scottish and Trust initiated Holdings Limited Mercantile becomes Hansa Trust be
Slide 6: Corporate structure
HANSA TRUST Corporate structure 6
Slide 7: Strategic Review
HANSA TRUST Hansa Trust Strategic Review 31 July 2018 Description Portfolio Hansa Trust Weight January 2014 Core Regional Core Regional exposure based on the output 33.1% of the Hansa House View. Description Portfolio Thematic Thematic Growth sectors such as 5.7% Weight biotechnology and technol
Slide 8: Performance Review
Performance Review 8
Slide 9: Performance to end July 2018
HANSA TRUST Performance to end July 2018 Financial YTD Calendar YTD One year 5 years (p.a.) 15 years (p.a.) NAV Performance TR 12.7% 10.5% 15.2% 9.1% 11.9% NAV Performance ex. OWHL TR 10.1% 7.5% 12.4% 9.0% 9.3% Ordinary Share TR 11.2% 6.5% 15.4% 9.2% 11.4% ‘A’ Ordinary Share TR 8.8% 8.3% 16.2% 8.8%
Slide 10: Performance of the different silos one year to 31 July 2018
HANSA TRUST Performance of the different silos one year to 31 July 2018 30% 25% 20% 15% 10% 5% 0% Core Regional Funds Thematic Global Equities Diversifying Assets Ocean Wilsons Holdings Cash/FX Exposure Ltd 10
Slide 11: Portfolio holdings by silo
£10,000,000 £20,000,000 £30,000,000 £40,000,000 £50,000,000 £60,000,000 £- Findlay Park American 2,326,623 Goodhart: Hanjo 1,733,303 Select Equity Offshore 1,587,630 Indus Japan Long Only 1,551,720 Vulcan Value Equity 1,441,199 BlackRock Eur Hedge 824,785 iShares Euro Stoxx 605,883 Odey Absolute Ret
Slide 12: Portfolio holdings by silo (comparison)
£20,000,000 £40,000,000 £60,000,000 £80,000,000 £- £100,000,000 £120,000,000 Findlay Park American 4,977,053 Select Equity Offshore 4,648,171 Vulcan Value Equity 4,271,969 SISF Asian Total Return 3,543,053 Goodhart: Hanjo 3,375,647 Indus Japan Long Only 2,463,285 BlackRock Eur Hedge 1,398,191 Prince
Slide 13: Performance of less correlated funds June 2016 to July 2018
HANSA TRUST Performance of less correlated funds 1 June 2016 to 31 July 2018 A basket of lower-correlated funds have been purchased since June/July 2016. The performance since has been positive and outperformed bonds and cash. 40% 30% 20% Performance (GBP) 9.2% 10% 6.4% 3.1% 0.5% 0% -10% -20% -30% 1
Slide 14: Transactions August 2017 to July 2018
HANSA TRUST Transactions 1 August 2017 to 31 July 2018 • Equity Purchases £24.1m: • Equity Sales £17.3m: – CK Hutchison £3.3m – Informa Plc £3.9m (profit of £1.4m) – Exor NV £2.7m – Brooks Macdonald Group PLC £3.7m (profit of £1.4m) – Orange £2.6m – NCC Group Plc £3.5m (profit of £2.5m) – Samsung El
Slide 15: Global Equities – performance by size of holding
HANSA TRUST Global Equities – performance by size of holding 31 July 2018 1 Year 3 Year Performance Performance % of (or since (or since Initial Purchase Value Total % of Global initial initial Security Name Date (GBP) NAV Equity Silo purchase) purchase) Interactive Brokers Group Inc 05/04/2017 3,92
Slide 16: Global Equities Silo as at end August 2018
HANSA TRUST Global Equities Silo as at end August 2018 Geographic Exposure by Listing Performance 1 August 2017 to 31 July 2018 Asia 20% 14% 18% 16% 14% Europe 36% 12% 10% 8% 6% 4% US 2% 50% 0% World Index FTSE 100 Hansa Trust Global Equities Performance
Slide 17: Portfolio Positioning & Characteristics
Portfolio Positioning & Characteristics 17
Slide 18: Current Positioning
HANSA TRUST Current Positioning (as at 31 July 2018) 25.0% 21.1% 20.0% 15.0% 13.2% 13.1% 11.7% 10.0% 6.7% 6.3% 5.9% 5.0% 4.3% 3.3% 3.4% 2.9% 2.6% 1.2% 1.6% 1.4% 0.9% 0.5% 0.0% 18
Slide 19: Portfolio Characteristics
HANSA TRUST Portfolio Characteristics (as at 31 July 2018) Look-through analysis of Hansa Trust portfolio, including holdings in Ocean Wilsons (Investments) Ltd* Geographic Exposure Sector Exposure 1.4% 7.8% 2.0%1.4% 0.6% 3.5% 2.8% 0.4% 3.6% 8.0% 3.7% 30.6% 6.0% 26.5% 8.3% 7.0% 8.9% 8.0% 16.6% 10.2%
Slide 20: Other Portfolio Characteristics
HANSA TRUST Other Portfolio Characteristics (as at 31 July 2018) Annual 3rd Party Management Fees on Liquidity Underlying Holdings 1 < x ≤ 1.5% 1.5 < x ≤ 2% Cash Fixed 1 Week 4.2% 2.7% 1% 36% 35% 0% 49.8% 0 < x ≤ 1% 43.2% > 6 months 4% 1 month 6 months 5% 3 months 8% 11% Look-through analysis of Han
Slide 21: Dividend Profile
HANSA TRUST 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. Dividend Payme
Slide 22: Discount
HANSA TRUST Discount Hansa Trust Ord and A combined Hansa Trust Ord and A combined (relative to AIC overall 0% average discount) -5% 10% 5% -10% 0% -15% -5% -20% -10% -25% -15% -30% -20% -25% -35% -30% -40% -35% -45% -40% -50% -45% Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-1
Slide 23: Ocean Wilsons Holdings
Ocean Wilsons Holdings 23
Slide 24: Ocean Wilsons Holdings
HANSA TRUST 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
Slide 25: Wilson Sons
HANSA TRUST Wilson Sons Revenue EBITDA Wilson Sons is among Brazil’s largest and oldest port, maritime and logistics services companies 25
Slide 26: Wilson Sons
HANSA TRUST Wilson Sons Despite the challenges faced in Brazil in recent years, Wilsons has generated significant economic value 26
Slide 27: Wilson Sons
HANSA TRUST Wilson Sons Wilson Sons operates in a market with significant structural growth potential 27
Slide 28: Ocean Wilsons Investments (Limited)
HANSA TRUST Ocean Wilsons Investments (Limited) as at 31 December 2017 30% 28.8% 25% 20% 15% 13.3% 9.4% 10% 8.2% 6.5% 6.4% 6.6% 5% 3.0% 3.2% 2.7% 2.1% 2.0% 2.3% 2.6% 1.0% 1.0% 0.5% 0.4% 0% Ocean Wilsons Investments (Limited) is an investment portfolio focused on achieving long-term returns while emp
Slide 29: Market Outlook
Market Outlook 29
Slide 30: Macro Overview: Asset Class Performance
Global markets up but a function of strong US perf. EM/FM particularly weak. Bonds weak – first year in many years. Gold poor HANSA TRUST which is surprising given concerns in market Macro Overview Asset Class Performance Data (Year to 31st July 2018) 20 15 10 Local Currency Returns (%) 5 0 -5 -10 -
Slide 31: Macro Overview
An inflection in newsflow in 2018 vs 2017. 2017: synchronised growth and upgrades, modest USW rates rising reflecting stronger growth. 2018: GDP downgrades, contagion in EM, trade wars, populism, higher inflation due to wage growth etc. Wage Inflation HANSA TRUST “Wage growth Macro Overview remains
Slide 32: Market outlook: key questions
HANSA TRUST Tried to isolate core issues facing markets Market outlook…..key questions Trade wars: How far do they escalate & at what point do they trigger recession? Populism & geo-politics: How serious a threat to markets? Emerging/ Frontier Markets: Does the recent price weakness represent an opp
Slide 33: Market outlook: trade wars
Trade wars are hard to quantify given the rhetoric. Started by quantifying what has been announced to-date and the HANSA TRUST scope for further tariffs if the war escalates. Also tried to quantify the impact on growth and inflation and finally asked what stops Trump going further? Market outlook……t
Slide 34: Market outlook: EM weakness
Following strong performance last year, many EMs have faced a perfect storm in 2018. Despite strong internal positions the external factors have been horrible. Our managers think that this is creating real HANSA TRUST intrinsic value. Raises the question as whether this is a poor time in the cycle t
Slide 35: Market outlook: recession
Growth has come under pressure in 2018 following robust numbers last year. Partly this is a function of trade tariff HANSA TRUST concerns – and there is a real danger that corporates talk themselves into recession by changing spending plans – but on balance inclined to believe it is the normal noise
Slide 36: Market outlook: populism/geo-politics
Another geo-political risks has been the rise in populist governments. A new risk to what fund HANSA TRUST managers face and arguably increases the level of ‘known unknowns’ Market outlook……populism/geo-politics Populism on the rise throughout the world (in 2000, an average 8.5% of the vote went to
Slide 37: Market outlook: technology
One always has to be mindful when specific sectors are responsible for driving market performance in the HANSA TRUST latter stages of a cycle. Often their demise signals the demise of the broader market. Whilst clearly some signs of success the fundamentals do not scream sell Market outlook……technol
Slide 38: Conclusion
HANSA TRUST Conclusion • In stark contrast to last year, 2018 has been beset by a number of challenges • Many of these issues are interlinked – does an escalation in the trade war act as the catalyst for a wider recession? – and often hard to forecast being based on the actions of the players involv