Staude Capital Global Value Fund Ltd · ASX:GVF
Staude Capital Global Value Fund — Global Value Fund — Investor Presentation (November 2018)
32 slides from Staude Capital Global Value Fund's investor presentation, Nov 6, 2018
Slide 1: Global Value Fund
For personal use only www.globalvaluefund.com.au
Slide 2: Disclaimer
Disclaimer This presentation is provided by Staude Capital Limited, a company incorporated in England and Wales. Staude Capital Limited is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. Mirabella Financial Services LLP is
Slide 3: Agenda
Agenda For personal use only 1. Introduction – The Global Value Fund 2. What are markets pricing in? What are the second page stories? 3. Protecting shareholder capital 4. Case studies 5. Appendices 3
Slide 4: 1. Introduction - The Global Value Fund
For personal use only 1. Introduction - The Global Value Fund (ASX: GVF) 4
Slide 5: The Global Value Fund
The Global Value Fund For personal use only A focus on listed securities which Our core discount are undervalued relative to a defined and observable asset value capture strategy • A discount to “break-up” value We operate on a targets returns global stage; investing around comparable with global Cl
Slide 6: A focus on capital preservation
A focus on capital preservation Global share markets upside vs. downside participation1 For personal use only GVF upside participation GVF downside participation 100% 80% Since IPO we have 60% participated in 69%1 of the upside in 40% global share markets, 20% but only 44%1 of market declines. 0% 1
Slide 7: The Global Value Fund at a glance
The Global Value Fund at a glance ASX code: GVF For personal use only Objective 11.8% IPO Price: $1.00 To generate equity market Share Price: $1.0851 like returns when measured No. Shares: 147M over time, but to do so with Annualised adjusted NTA significantly less risk than a Mkt Cap: $160M return
Slide 8: GVF dividend & option price history
GVF dividend & option price history Declared dividends, franking credits and option VWAP1 since IPO2 For personal use only 4.5 4.0 Current Board 3.5 guidance3 is for 3.0 FY2019 dividends of 6.3 cents per share, 2.5 70% franked 1 Data source: The ASX. The Volume 2.0 Weighted Average Price (VWAP) of t
Slide 9: 2. What are markets pricing in?
For personal use only 2. What are markets pricing in? What are the second page stories? 9
Slide 10: The key debates in the market today
The key debates in the market today The front page stories For personal use only Rising US interest rates Controlled slow down in China Trump’s trade wars A red hot US economy Europe approaching Growth vs. Value debate end of QE 10
Slide 11: Second page stories we are following
Second page stories we are following Where the market could be wrong For personal use only Are we late cycle in A dangerous ‘new the bull market? normal’ in Western politics Market risks are Prospect of a rising, expected hard landing returns are not in China 11
Slide 12: Market risks are rising
Market risks are rising Historic S&P bull markets1. Global Debt to GDP2 For personal use only 12.0 400% No of years the bull ran for S&P total returns US$ 350% 10.0 300% 8.0 The longest US bull 250% 6.0 market in history, 200% the second most 150% 4.0 profitable US bull 100% 2.0 market in history 50
Slide 13: Policy makers hands are tied
Policy makers hands are tied Few conventional tools available to fight the next recession For personal use only 19% Central Bank Interest Rates1 Forecast 17% US UK EUR JAPAN 15% 13% Central Banks have 11% little scope to cut 9% 7% rates in the face of 5% a downturn 3% 1 Data source: Bloomberg LP and
Slide 14: A new normal in Politics
A new normal in Politics The greatest threats to the global economy today are political For personal use only 150% US Federal Debt as a % of GDP1 Actual Projected 140% 130% 120% When the next 110% World War II downturn comes, 100% politics could prevent the 90% necessary response 80% 1 Data source:
Slide 15: 3. Protecting shareholder capital at The Global Value Fund
For personal use only 3. Protecting shareholder capital at The Global Value Fund 15
Slide 16: Investment Portfolio
Investment Portfolio1,2 For personal use only Underlying Asset Classes Underlying Currency Exposures Listed EUR 17% Equity Listed Debt 24% Instruments 37% USD 40% Cash 3% Other AUD 30% 13% Listed Private Listed Hedge Equity Other 13% Funds 13% 10% Diversification across asset classes lowers portfoli
Slide 17: Focus on Risk Management
Focus on Risk Management Monthly drawdowns. Gross return by investment Our investment For personal use only 1% philosophy places a MSCI AC A$2 down months since GVF3 IPO high importance on 0% controlling for risk, Sep 18 May 18 -1% Oct 16 Mar 18 Apr 15 Feb 18 whilst seeking to Sep 16 Jul 17 -2% Feb
Slide 18: Protection when it counts
Protection when it counts Global equity markets total return in A$1,2 For personal use only 360 1% Global equity markets TR in A$ GVF TR in A$ -1% 340 -3% 320 -5% 300 -7% -9% 280 -11% 260 -13% 240 -15% 220 200 180 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Jul 2
Slide 19: Protection when it counts
Protection when it counts Global investment grade debt total return in A$1,2 For personal use only 670 650 630 610 590 4% Global IG Debt TR in A$ GVF TR in A$ 570 2% 0% 550 -2% 530 -4% -6% 510 -8% -10% 490 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Jul 2018 1 Da
Slide 20: Protection when it counts
Protection when it counts Global high yield debt total return in A$1,2 For personal use only 1850 1800 1750 1700 1650 1600 1550 1500 Global HY Debt TR in A$ GVF TR in A$ 0% 1450 -1% -2% 1400 -3% 1350 -4% -5% 1300 -6% -7% 1250 -8% 1200 -9% -10% 1150 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 Jul 20
Slide 21: Gross investment returns since IPO
Gross investment returns1 since IPO Attributed by market2, currency3 and excess returns4 For personal use only 75% Market Currency Excess Return 65% 55% 45% 35% 25% 15% 5% -5% Jul 14 Nov 14 Mar 15 Jul 15 Nov 15 Mar 16 Jul 16 Nov 16 Mar 17 Jul 17 Nov 17 Mar 18 Jul 18 1 Gross investment returns refers
Slide 22: 4. Case studies
For personal use only 4. Case studies 22
Slide 23: Case Study: London Listed Fund "A"
Case Study: London Listed Fund “A” Trading opportunity: liquidity provision For personal use only Description Investment Rationale A closed-end fund listed on the London stock exchange that GVF secured a large block of stock at a c.5% discount to NAV invests into UK listed companies. in January 2018
Slide 24: Case Study: DW Catalyst Fund
Case Study: DW Catalyst Fund Corporate action: unlocking low risk value For personal use only Description Investment Rationale DW Catalyst Fund (DWCG) was a closed-end fund listed on GVF first invested at the end of 2016 at 13.7% discount to the London stock exchange. NAV. It was a feeder fund which
Slide 25: Case Study: Blue Capital Alternative Income
Case Study: Blue Capital Alternative Income Corporate Activism: last line of defence For personal use only Description Investment Rationale Blue Capital Alternative Income Fund (BCAI): Invests GVF invested into the fund in March 2017 at an 11% discount into a master fund that owns a diversified port
Slide 26: Company Details
Global Value Fund Limited For personal use only Company Details Structure Listed Investment Company Incorporated Australia Service Providers Investment Manager Mirabella Financial Services Portfolio Manager Miles Staude Staude Capital Limited1 Head of Corporate Affairs Emma Davidson Registrar Boardr
Slide 27: 5. Appendices
For personal use only 5. Appendices 27
Slide 28: Mirabella Financial Services
Mirabella Financial Services Best-in-class compliance and regulatory solution For personal use only ▪ One of the largest regulatory hosts in Europe with assets under management of over US$10Bn. ▪ Mirabella is wholly independent. There are no commercial Dedicated links to the performance of its hoste
Slide 29: Organisational Chart
For personal use only Organisational Chart Mirabella Financial Services Regulatory Host Miles Staude Emma Davidson Portfolio Manager & Director Investor Relations & Director Robert Fairbairn Emma Beall James Dow Middle Office & Support Investment Managers 29
Slide 30: Biographies
Biographies For personal use only Miles Staude – Portfolio Manager & Director Miles has over seventeen years of experience in trading, investment management and research, covering a wide range of financial markets. He is the Portfolio Manager of the Global Value Fund and serves as a Director on the
Slide 31: Biographies
Biographies For personal use only Rob Fairbairn – Investment Manager Under Mirabella’s regulatory license, Robert is a member of the GVF portfolio management team. Prior to joining Staude Capital, he performed a variety of roles over a period of eight years at Metage Capital, including trading, rese
Slide 32: Contact details
For personal use only statement? Landline (UK): +44 20 3874 2243 miles.staude@globalvaluefund.com.au Mobile (Australia): 0423 428 972 emma.davidson@globalvaluefund.com.au Mobile (Australia): 0401 299 885 ir@globalvaluefund.com.au www.globalvaluefund.com.au
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