Hansa Investment Company Ltd · LSE:HAN
Hansa Investment — Hansa Trust — Investor Presentation (April 2016)
30 slides from Hansa Investment's investor presentation, April 2016
Slide 1: Hansa Trust April 2016
att HANSA TRUST PLC HANSA TRUST April 2016
Slide 2: Strategic Review March 2016: Four Silo Approach
HANSA TRUST Hansa Trust Strategic Review March 2016 Description % Hansa Trust Core Regional Regional exposure based on the output of the Hansa 33.6% January 2014 Silo House View. Description % UK Special situation UK equities 65% UK Equities UK equity exposure through directly invested special
Slide 3: Performance Review
Performance Review 3
Slide 4: Market Performance Chart YTD and 15 months (GBP)
HANSA TRUST Market Performance Chart YTD and 15 months (GBP) 40% 35% 30% 20% 20% 16% 15% 13% 13% 11% 10% 9% 9% 8% 10% 8% 7% % Return 6% 6% 3% 3% 2% 0% -1% -3% -2% -3% -5% -10% -6% -8% -16% -20% -18% -17% -20% -22% -30% Bars represent 15 month returns represent YTD 2016 returns 4
Slide 5: Performance to end March 2016
HANSA TRUST Performance to end March 2016 3 months to 10 years 3 years (p.a.) 5 years (p.a.) end Mar 2016 (p.a.) Performance TR (NAV) -3.8% 1.0% 0.6% 4.2% Performance ex. OWHL TR -4.5% 4.9% 3.5% 2.9% Benchmark 0.9% 3.2% 3.4% 4.1% Ordinary Share -8.3% -2.4% -4.0% 0.3% A’ Ordinary Share -5.5% -1.8% -3
Slide 6: Performance of the different silos from April 2014 to March 2016
HANSA TRUST Performance of the different silos from 1 April 2014 to 31 March 2016 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% UK Equity Core Regional Funds Eclectic & Diversifying Ocean Wilsons Cash (inc. loans and Benchmark Assets (ex OWIL) Holdings Limited FX) Time-weighte
Slide 7: Silo holdings and contribution by security
£10,000,000 £15,000,000 £20,000,000 £25,000,000 £5,000,000 -£15,000,000 -£10,000,000 -£5,000,000 £- Select Equity Offshore 2,252,299 Adelphi Eur Select Equity 1,737,597 Findlay Park American 1,697,693 Vulcan Value Equity 1,654,278 BlackRock Eur Hedge 1,494,647 SISF Asian Total Return 902,347 HANSA T
Slide 8: UK Equities performance by market capitalisation for year ending 31 March 2016
HANSA TRUST UK Equities – performance by market capitalisation for the year ending 31 March 2016 % of % of Value 31/03/16 Total % of UK 2015/16 Value 31/03/16 Total % of UK 2015/16 Security Name (GBP) NAV Equity Silo % Performance Security Name (GBP) NAV Equity Silo % Performance l NCC Group PLC 13,
Slide 9: Portfolio Characteristics
Portfolio Characteristics 9
Slide 10: Geographic Exposure (as at March 2016)
HANSA TRUST Geographic Exposure (as at 31 March 2016) Look-through analysis of Hansa Trust portfolio, including holdings in Ocean Wilson (Investments) Ltd Hansa Trust Hansa Trust ex. Wilson Sons 60.0% 60.0% 50.0% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0% 0.0% Portfolio MSCI ACWI + F
Slide 11: Sector Exposure (as at March 2016)
HANSA TRUST Sector Exposure (as at 31 March 2016) Look-through analysis of Hansa Trust portfolio, including holdings in Ocean Wilson (Investments) Ltd Hansa Trust Hansa Trust ex Wilson Sons 25.0% 35.0% 30.0% 20.0% 25.0% 15.0% 20.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% Portfolio MSCI ACWI + FM Portf
Slide 12: Other Portfolio Characteristics: Asset Type and Currency Exposure
HANSA TRUST Other Portfolio Characteristics (as at 31 March 2016) 0.3% Asset Type Currency Exposure 4.2% 2.1% 16.4% 21.1% 0.2% 16.3% 38.0% 24.4% 6.6% 7.8% 62.2% 0.4% Long Only Long-Short Private Equity Private Debt UK Equity Wilson Sons Market Neural Fixed Income Cash USD GBP EUR BRL Look-through an
Slide 13: Other Portfolio Characteristics: Management Fee and Liquidity
HANSA TRUST Other Portfolio Characteristics (as at 31 March 2016) Annual Management Fee on Underlying Holding Liquidity 100.0% 4.2% 90.0% 7.0% 80.0% 42.8% 70.0% 60.0% 50.0% 46.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2 <1 <3 <6 >6 Cash 1 Week Fixed Weeks month months months months 0% 0 < x ≤ 1% 1 < x ≤ 1.5%
Slide 14: NAV Performance in different market environments
HANSA TRUST NAV Performance in different market environments two years to end March 2016 3.0% 3.0% 2.5% 2.0% 2.0% 1.5% 1.0% Return (GBP) Return (GBP) 1.0% 0.5% 0.0% 0.0% -0.5% -1.0% -1.0% -1.5% -2.0% -2.0% -2.5% -3.0% Average return when index falls Average return when index rises Average return whe
Slide 15: Dividend Profile
HANSA TRUST Dividend Profile Dividend Policy The 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. Under certain circumst
Slide 16: Performance Analysis – Ocean Wilsons Holdings
HANSA TRUST Performance Analysis – Ocean Wilsons Holdings 31/3/14 to 31/3/16: -32.0% (-26.8% total return) Annual Dividend and Yield $0.70 6.0% $0.60 5.0% 12 month yield $0.50 4.0% Dividend $0.40 3.0% $0.30 2.0% $0.20 $0.10 1.0% $- 0.0% Jun-05 Nov-11 Jun-12 Dec-08 Dec-15 Oct-07 Jul-09 Oct-14 Feb-10
Slide 17: Performance Analysis – Wilson Sons
HANSA TRUST Performance Analysis – Wilson Sons 31/3/14 to 31/3/16 (in BRL): +16.1% (+24.0% total return) 31/3/14 to 31/3/16 (in GBP): -14.8% (-8.9% total return) Annual Dividend and Yield 7.0% $1.40 6.0% $1.20 Dividend (BRL) 5.0% $1.00 Yield 4.0% $0.80 3.0% $0.60 2.0% $0.40 1.0% $0.20 0.0% $- Yield
Slide 18: Portfolio Positioning & Market Outlook
Portfolio Positioning & Market Outlook 18
Slide 19: Q1 characterised by significant volatility and a change in leadership
HANSA TRUST Q1 was characterised by significant volatility and a change in leadership 50% 40% 30% Return (GBP) 20% 10% 0% (10%) ANSA (20%) TR (30%) 01 Jan - 11 Feb 11 Feb - 31 March Q1 MSCI AC World MSCI Emerging Markets MSCI North America MSCI Europe MSCI Japan MSCI China Brazil (Bovespa) Oil (WTI)
Slide 20: Why are markets exhibiting this volatility
HANSA TRUST Why are markets exhibiting this volatility FT 24th February 2016 FT 15th March 2016 FT 21st April 2016 BBC 25th March 2016 Reuters 12th January 2016 The Guardian 19th January 2016 FT 29th January 2016 FT 20th April 2016 NBC News 22nd March 2016 The Economist 21th April 2016 WSJ 11th Marc
Slide 21: Economic backdrop
HANSA TRUST Economic backdrop ……..Economic data-points are giving mixed signals and the absolute level of growth is low 21
Slide 22: Geopolitical risks rising
HANSA TRUST Geopolitical risks rising The Greek situation is still unresolved with ongoing disagreements between Greece, the IMF and Europe BREXIT referendum hard to call. Risks are arguably factored into currency markets but other assets are looking remarkably complacent Emerging markets increasing
Slide 23: Interest rates moving in different directions and increasingly ineffective
HANSA TRUST Interest rates moving in different directions and increasingly ineffective • The Fed is keen to get interest rates up – Abenomics is faltering with the economy it gives them firepower in the next back in recession and the yen strengthening downturn – but already having to back- – increas
Slide 24: China
HANSA TRUST China However, there are still worrying Recent economic indicators excesses (credit growth etc) and suggest an improving picture recent government measures arguably extend these further ……..lacks transparency and has the capacity to cause a global meltdown 24
Slide 25: Valuations
HANSA TRUST Valuations ……..valuations are no longer cheap but arguably not expensive either 25
Slide 26: Earnings outlook
HANSA TRUST Earnings outlook Markets EPS growth expectations are very low – they may even be beaten! ……..despite the possibility that earnings may beat expectations the absolute level of growth is very low. Current valuations demand that any further upside is driven by earnings! 26
Slide 27: Seeing the wood for the trees
HANSA TRUST Seeing the wood for the trees • Market noise is so high that there is a real danger of being knee-jerked into poor decisions • Taking a step-back we believe that we are in the mature stages of an unusual cycle characterised by: • Muted economic growth • Even more muted earnings growth •
Slide 28: Our options
HANSA TRUST Our options • In light of the maturing business cycle a number of options are open to us: • Buy tail hedges • Introduce a basket of more defensive investments that preserve capital during market drawdowns, are uncorrelated and hopefully generate positive returns in their own right • Do n
Slide 29: Appendix
Appendix 29
Slide 30: Important Notice
IMPORTANT NOTICE This presentation pack is issued by Hansa Capital Partners LLP, which is authorised and regulated by the Financial Conduct Authority. Hansa Capital Partners LLP is the Portfolio Manager and Company Secretary to Hansa Trust PLC. Investment Trusts are UK Public Listed companies and ar