Hansa Investment Company Ltd · LSE:HAN
Hansa Investment — Hansa Trust — Shareholder Meeting (July 2019)
25 slides from Hansa Investment's shareholder meeting presentation, July 2019
Slide 1: Hansa Trust AGM July 2019
e@& LANSA TRUST PLC HANSA TRUST AGM July 2019
Slide 2: Recap: our aims and aspirations for Hansa Trust
HANSA TRUST Recap………our aims and aspirations for Hansa Trust • A proprietor-led vehicle with strong alignment (rather than an asset gathering entity) • A multi-asset fund that offers something different from most other portfolios in the market place • A fund aspiring to generate long-term returns an
Slide 3: Recap: Strategic review
HANSA TRUST Recap: Strategic review 31 December 2013 31 March 2019 OWIL OWIL 12.4% Core Regional 11.7% Wilson Sons 34.6% Wilson Sons 18.7% 23.3% Diversifying & UK Equity Thematic Cash 65.0% Global Equities 6.1% 11.8% 16.5% 3
Slide 4: Market Outlook
Market Outlook 4
Slide 5: Market performance chart (2018 vs 2019 to end June)
HANSA TRUST Market performance chart (2018 vs 2019 to end June) (£) 40% 30% 20% 29% 29% % Returns 11% 9% 10% 20% 16% 8% 9% 9% 17% 17% 16% 17% 17% 13% 11% 5% 10% 11% 12% 12% 13% 3% 8% 8% 5% 4% 5% 6% -2% 1% 0% -4% -3% 0% -4% -4% 1% 0% 4% -6% 1% 0% -9% -11% 0% -9% -8% -10% -7% 4% -1% -2% -1% -1% -14% -
Slide 6: 2018……the beginning of the end?
HANSA TRUST 2018……the beginning of the end? 2018 saw downgrades across the board with the US the Economies are undoubtedly maturing notable exception …..2018 characterised by slowing growth, both globally and China in particular 6
Slide 7: 2018……the beginning of the end?
HANSA TRUST 2018……the beginning of the end? …..Trump has progressively escalated his war on trade 7
Slide 8: 2018……the beginning of the end?
HANSA TRUST 2018……the beginning of the end? ……..this backdrop saw US equities produce their worst December performance since the 1920’s and, unusually, all asset classes fell in 2018 8
Slide 9: 2019……markets have rallied sharply
HANSA TRUST 2019……markets have rallied sharply US fed announced a U-turn on interest rate policy in Lower growth but not recession January 9
Slide 10: 2019……markets have rallied sharply
HANSA TRUST 2019……markets have rallied sharply This cycle has been all about tech Market positioning remains conservative ……the current bull market has been a deeply unloved one. Technology has been key to its success and may not be finished yet 10
Slide 11: Performance Review
Performance Review 11
Slide 12: NAV, Share Price and KPI Performance
HANSA TRUST NAV, Share Price and KPI Performance YTD 1 Jan 2019 – Financial Year to end Financial Year to end 3 years to end March 5 years to end March 15 years to end 30 June 2019 March 2018-19 March 2017-18 2019 (p.a.) 2019 (p.a.) March 2019 (p.a.) NAV Performance TR 5.6% 5.6% 6.3% 11.1% 4.7% 9.9%
Slide 13: Portfolio holdings by silo
£10,000,000 £15,000,000 £20,000,000 £25,000,000 £- £5,000,000 Findlay Park American 3,158,073 Select Equity Offshore 2,410,863 Vulcan Value Equity 1,564,831 Pershing Square 1,524,538 Adelphi Eur Select Equity 838,758 BlackRock Eur Hedge 506,568 SISF Asian Total Return 192,704 Odey Absolute Return 18
Slide 14: Peer Group Analysis (to 31st March 2019)
HANSA TRUST Peer Group Analysis (to 31st March 2019) % % Net % NAV % Price Price Size £m Discount Yield Performance Performance Now Mkt Cap Assets 3y 3y Total Return Total Return Global Global AIC Sector ATS Artemis Alpha Trust UK All Companies 283.00 -17.3 116 153 1.8 21 30 BTEM British Empire Glob
Slide 15: We own great managers
HANSA TRUST We own great managers 15
Slide 16: Summary
HANSA TRUST Summary • The stock market cycle is undoubtedly maturing and certainly is long versus previous cycles • However, the factors that one would normally look to be in place at a market top are not yet there • This creates a challenging backdrop for fund managers – de-risk and preserve capita
Slide 17: Appendix
Appendix 17
Slide 18: Performance of the different silos one year to March 19
HANSA TRUST Performance of the different silos one year to 31 March 2019 16% 14% 12% 10% 8% 6% 4% 2% 0% Core Regional Funds Thematic Global Equities Ocean Wilsons Holdings Diversifying Assets Cash/FX Exposure Ltd 18
Slide 19: Portfolio Characteristics (as at March 2019)
HANSA TRUST Portfolio Characteristics (as at 31 March 2019) Look-through analysis of Hansa Trust portfolio, including holdings in Wilson Sons and Ocean Wilsons (Investments) Ltd* Sector Exposure Geographic Exposure 0.7% 0.7% 0.6% 4.4% 2.7% 1.9% 0.2% 6.9% 1.9% 5.7% 7.7% 7.1% 27.2% 34.0% 8.4% 8.1% 9.9
Slide 20: Fees
HANSA TRUST Fees THIRD PARTY Can be higher cost with two PASSIVE layers of fees in a fund Low cost but guaranteed sub structure. However, you can market returns. Also invest in best-in-class structurally biased towards managers globally (unlikely those companies and sectors to be able to do this tha
Slide 21: Fees (as at June 2019)
HANSA TRUST Fees (as at 30 June 2019) Annual 3rd Party Management Fees on Underlying Holdings Between 1% and Between 1.5% 1.5% and 2% 5.2% 1.9% No Fee 47.1% Less than 1% 45.8% Weighted average management fee = 1.23%. This includes the management fee paid to Hansa Capital Partners LLP as well as mana
Slide 22: Weighted Average Fees
HANSA TRUST Weighted Average Fees 1.5 1.4 1.3 % 1.2 1.1 2015 2016 2017 2018 2019 The weighted average management fee, as described on the previous slide, has declined over the last five years to the current level of 1.23%. 22
Slide 23: Fees: breakdown of total fees and costs
HANSA TRUST Fees Third party fees within Hansa Trust Breakdown of total fees and costs 3.0% Internally managed therefore no third party fees 2.5% Fees as % of NAV 2.0% 1.5% 1.0% 0.5% Our management fee is reduced from 1% as it is 0.0% not charged on Ocean Wilsons Holdings Hansa Trust total = 1.82% M
Slide 24: Investment process: Global equity selection
HANSA TRUST Investment process…..Global equity selection Our global equity portfolio is composed of 20 – 45 names, is diversified, has a high active share and is built from the bottom up 24
Slide 25: 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 Manager and Company Secretary to Hansa Trust PLC. Investment Trusts are UK Public Listed companies and are not auth