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Next Edge CIA Disciplined Growth Portfolio — Next Edge Strategic Metals and Commodities Fund — Investor Presentation (April 2023)
26 slides from Next Edge CIA Disciplined Growth Portfolio's investor presentation, April 2023
Slide 1: Next Edge Strategic Metals and Commodities Fund
Next Edge Strategic Metals and Commodities Fund April 2023
Slide 2: Important Notes
Important Notes The “Next Edge Strategic Metals and Commodities Fund” or “Fund” means the “Next Edge Strategic Metals and Commodities Fund”. Capitalized terms not defined in this presentation are defined as set forth in the prospectus of the Fund (the “Prospectus”). This communication is not, and un
Slide 3: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following presentation may contain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Next Edge Capital Corp., the Portfolio Manager, or any affiliates the
Slide 4: Executive Summary
Executive Summary The Next Edge Strategic Metals and Commodities Fund (the “Fund”) is a diversified and opportunistically managed portfolio of primarily equity securities of commodity and resource companies. These investments may be made globally with a bias towards North American companies. The Man
Slide 5: About Next Edge Capital Corp.
About Next Edge Capital Corp. Next Edge Capital is an alternative investment fund manager providing leading-edge solutions for investors. For almost two decades our experienced team has launched numerous investment solutions in a variety of product structures. The people and approaches we discover m
Slide 6: About Delbrook Capital
About Delbrook Capital Delbrook Capital Advisors Inc. (“Delbrook”) is a Vancouver based investment manager focused on alternative strategies in the materials sector. The firm was founded by former Fidelity Management & Research Company (“FMR Co.”) Portfolio Manager, Matthew Zabloski in 2010. The fir
Slide 7: The Case for Commodities
The Case for Commodities Increasing and Multiple Drivers of Demand for various metals, minerals and resources (driving prices higher) 1 Supply Constraints (driving prices higher) 2 PRIMARY FACTORS driving a investment Inflation Hedge/Protection against inflation opportunity in 3 the metals and commo
Slide 8: The Case for Commodities: Multiple Drivers of Demand
The Case for Commodities Multiple Drivers of Demand The move towards clean energy initiatives, targets, Mass government and standards stimulus and (wind, solar, electric infrastructure vehicles, batteries) will place spending initiatives a significant demand on various metals, minerals and resources
Slide 9: Commodities: Demand from Clean Energy Initiatives
The Case for Commodities: Demand Increased demand from Clean Energy Initiatives The strain on demand from clean energy initiatives for various metals and minerals is intense and rapidly increasing. MINERALS USED IN SELECTED ENERGY TECHNOLOGIES (KG/VEHICLE)* The shift to a more mineral-intensive ener
Slide 10: Commodities: Accelerating Demand from Clean Energy
The Case for Commodities: Demand Clean energy initiatives Accelerating Demand METALS AND MINERALS IN ELECTRIC VEHICLES VERSUS INTERNAL COMBUSTION VEHICLES DEMAND PROJECTIONS STAGGERING The rapid adoption of EV technology will lead to materially increased demand for several commodities. Naïve to assu
Slide 11: Mass Stimulus and Infrastructure Spending
The Case for Commodities: Demand Mass Stimulus and Infrastructure Spending The 1.2 trillion-dollar Bipartisan Infrastructure Law will rebuild America’s road, bridges, and rails. This includes Emerging Markets a network of Electric infrastructure Vehicle (EV) chargers, spending could exceed high-spee
Slide 12: Mass Stimulus and Infrastructure Spending: USD $69 Trillion
The Case for Commodities: Demand Mass Stimulus and Infrastructure Spending USD $69 Trillion The projected cumulative infrastructure investment is needed before 2035 to keep up with the projected global demand. Cash- strapped governments have been reaching out to the private sector to help meet that
Slide 13: Supply Constraints
The Case for Commodities Supply Constraints 1 2 3 Vast underinvestment Most mines require In many cases, cheaper over the past decade + in timelines of 10+ and higher grade the exploration and mining years to be put into resources are decreasing of various metals and production requiring significant
Slide 14: Supply Decreasing Despite Increasing Demand
The Case for Commodities: Supply Supply Decreasing Despite Increasing Demand GLOBAL CAPEX IN THE MINING INDUSTRY ACROSS 15 COMMODITIES WILL DROP BY 6.4% YEAR OVER YEAR IN 2020, DRIVEN BY A DECLINE IN DEVELOPMENT CAPEX* Copper Gold Iron ore Metallurgical coal Nickel Zinc Other 160,000 140,000 120,000
Slide 15: Commodities remain one of the best inflation hedges
The Case for Commodities: Inflation Hedge Commodities remain one of the best inflation hedges 12-MONTH PERCENTAGE CHANGE, CONSUMER PRICE INDEX, Historically, SELECTED CATEGORIES commodities have provided for purchasing power protection and upside return potential during inflationary environments. “T
Slide 16: Inflation Hedge: Significant Return Potential
The Case for Commodities: Inflation Hedge SIGNIFICANT RETURN POTENTIAL POSSIBLE DURING RISING INFLATIONARY ENVIRONMENTS Energy Copper Broad Commodities Industrial Metals Agriculture Precious Metals Gold S&P 500 CPI 0% 5% 10% 15% 20% 25% 30% Gains for every $1 annual rise in US CPI Sources: Bloomberg
Slide 17: Diversification Benefits
The Case for Commodities: Diversification Benefits The addition of metals and commodity exposure can add diversification benefits to investment portfolios. CORRELATION OF MONTHLY RETURNS FROM JANUARY 31, 1990 TO MARCH 31, 2023 Barclays Global Goldman Sachs TSX S&P 500 Aggregate Index Commodities Ind
Slide 18: Next Edge Strategic Metals and Commodities Fund
Next Edge Manager Strategic Next Edge Capital Corp. Metals and Investment Sub-Advisor Commodities Delbrook Capital Advisors Inc. , Fund Investment Objective The Fund seeks to provide long term growth of capital by investing opportunistically and primarily in equity securities of companies involved i
Slide 19: Portfolio Management Team
Portfolio Matthew Zabloski, Portfolio Manager and Founder Management Managing Director of Delbrook, a firm he founded in 2010 Team Over 15 years of capital markets experience including asset management and investment banking Founding Board Member of the Shareholder Gold Council (“SGC”) Portfolio Man
Slide 20: Investment Process
Investment Process WELL DEFINED PROCESS FOR CAPITALIZING ON OPPORTUNITIES IN METALS AND COMMODITIES 1 2 3 4 Evaluate individual Fundamental equity Allocate capital within Monitor risk factors to commodity fundamentals and macro analysis to the Fund’s strategy minimize downside and based on supply/de
Slide 21: Investment Strategy and Portfolio Details
Investment Strategy and Portfolio Details • Materials Investment Universe • Energy • Clean Tech/Industrials • Long Duration Thematic Investment Strategy • Opportunistic • Hedging • No position greater than 10% of NAV at inception • 90% listed equites Risk Management/Composition • 10% other – this ca
Slide 22: Summary of Terms
Summary of Terms • Class A – NEC 220 FundSERV Codes • Class F – NEC 219 • Class I – NEC 218 • $5,000 for Class A & F Investment • $1,000,000 for Class I Subsequent Investment $1,000 for all Classes • Class A – 2% (includes 1% servicing fee payable out of the management fee) Management Fee • Class F
Slide 23: Fund Performance
Fund Performance HISTORICAL PERFORMANCE Class A1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD2 2023 5.88% -1.17% -0.46% 3.58% -- -- -- -- -- -- -- -- 7.90% 2022 -0.01% 3.61% 4.94% -5.05% -1.87% -10.89% 4.42% -2.69% -12.72% 2.79% 4.26% 2.65% -11.94% 2021 -- -- -- -- -- -- -- -- -- -- 1.88% -0.
Slide 24: Appendix
Appendix
Slide 25: Reference Track Record for Delbrook Capital
Reference Track Record for Delbrook Capital Delbrook Resource Opportunities Fund1 3 Year 5 Year Fund XME ETF2 1 Month 1 Year Annualized Annualized PERFORMANCE 4.60% -21.74% 45.20% 20.61% Annualized return since inception 16.50% 3.80% RISK METRICS Std. Dev. 9.20% 10.20% JAN FEB MAR APR MAY JUN JUL AU
Slide 26: Contact
nextedgecapital.com linkedin.com/company/next-edge-capital twitter.com/NextEdgeCapital 1 Toronto Street, Suite 200, Toronto, ON M5C 2V6 416.775.3600 Toll Free: 1.877.860.1080 info@nextedgecapital.com 26
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