Staude Capital Global Value Fund Ltd · ASX:GVF
Staude Capital Global Value Fund — Global Value Fund — Investor Presentation (November 2014)
29 slides from Staude Capital Global Value Fund's investor presentation, Nov 18, 2014
Slide 1: For personal use only
For personal use only www.globalvaluefund.com.au
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in this presentation or subsequently provided to the recipient whether orally or in writing by, or on behalf of Global Value Fund Limited (GVF) or any of its directors, officers, employees, agents, representatives and advisers (the Parties)
Slide 3: Agenda
Agenda: For personal use only 1. Key issues driving global financial markets 2. About the Global Value Fund 3. Current opportunities 4. Investment portfolio 5. Performance since IPO 1
Slide 4: 1. Key issues driving global financial markets
For personal use only 1. Key issues driving global financial markets 2
Slide 5: The headline issues in global financial markets today
The headline issues in global financial markets today For personal use only End of US and UK quantitative China slowing recovery easing in US European Equity markets Fed raising recovery stalling near all-time interest rates (again) highs None of this is new news Important to remember what is alread
Slide 6: Second page stories worth paying attention to
Second page stories worth paying attention to For personal use only ECB and BOJ China quantitative rebalancing, US and UK easing to replace financial markets political risks the Fed? opening Fed real rates to remain negative Further Could equity for the downside risks markets actually foreseeable to
Slide 7: Yes, interest rates are going up…
Yes, interest rates are going up… For personal use only US Treasury forward curve1 2.5% 2.0% …but gradually and to historically very low levels 1.5% 1.0% 0.5% 0.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Data source Bloomberg LP and Metage Capital 5
Slide 8: Hardly a challenging environment by historical standards
Hardly a challenging environment by historical standards For personal use only 3 month US Treasury yield1 8% 7% It will take a further 6% 5 years for US$ 5% interest rates to reach the lows of 4% the last cycle Interest rates in 2024 3% Interest rates in 2019 2% 1% 0% 1990 1994 1998 2002 2006 2010 2
Slide 9: Even with rising rates, real yields will remain negative
Even with rising rates, real yields will remain negative For personal use only 5 year real US Treasury yield1 3.0% 2.5% 2.0% Monetary policy 1.5% remains highly 1.0% supportive of asset prices 0.5% 0.0% -0.5% -1.0% -1.5% -2.0% Nov 08 Jul 09 Mar 10 Nov 10 Jul 11 Mar 12 Nov 12 Jul 13 Mar 14 1 Data sou
Slide 10: Equities are not expensive given interest rates
Equities are not expensive given interest rates For personal use only S&P500 CAPE ratio vs. US Long-term Interest rates1 50x 18% P/E (LHS) 45x 16% US 10yr Interest Rate 40x (RHS) 14% We can not 35x compare the P/E 12% 30x ratio of the market 10% today to its 25x 8% longer-term 20x average 6% 15x 10x
Slide 11: 2. About the Global Value Fund
For personal use only 2. About the Global Value Fund 9
Slide 12: The Global Value Fund
The Global Value Fund For personal use only A focus on listed securities which are Our core discount undervalued relative to a defined and observable asset value capture strategy • A discount to “break-up” value targets returns We operate on a Closed-end funds (CEFs) will form global stage; comparab
Slide 13: Discount Capture Strategy
Discount Capture Strategy Both passive and active strategies For personal use only Many tools to “crack the nut” • Using proprietary systems we are often able to profit from discounts through passive investment techniques • Examples include: Capitalising on tender offers, buybacks and liquidation ev
Slide 14: Discount Capture Strategy: Risk reducing investment
Discount Capture Strategy Risk reducing investment For personal use only Provides access to global financial markets through a portfolio of discounted securities In the hands of a team with a long track-record of capturing value Underlying assets provide exposure to a wide variety of global markets
Slide 15: 3. Current opportunities
For personal use only 3. Current opportunities 13
Slide 16: Current Investment: Tri-Continental Corporation
Current Investment: Tri-Continental Corporation S&P 500 at an Attractive Discount For personal use only Equity CEF (Ticker: TY US) Description Investment Rationale NYSE-listed closed-end fund investing primarily in US The fund provides attractive exposure to the US equity equities and benchmarked to
Slide 17: Current Investment: Pacific Alliance China Land
Current Investment: Pacific Alliance China Land Deeply discounted Chinese fund in realisation For personal use only Property CEF (Ticker: PACL LN) Description Investment Rationale London-listed closed-end fund investing in Chinese Shareholders including Metage voted in July 2014 to move property-rel
Slide 18: Current Investment: Boussard & Gavaudan Holdings
Current Investment: Boussard & Gavaudan Holdings Very cheap access to a well performing hedge fund For personal use only Hedge Fund CEF (Ticker: BGHL NA) Description Investment Rationale Amsterdam-listed closed-end fund which acts as a feeder The Fund provides access to a hedge fund manager with a f
Slide 19: Position Being Built: Fund "A"
Position Being Built: Fund “A” Asian equities at an Attractive Discount For personal use only Equity CEF Description Investment Rationale Listed closed-end fund investing in Asian equities. We previously invested in this fund at an average discount of 26% and were able to exit at an average discount
Slide 20: 4. Investment portfolio
For personal use only 4. Investment portfolio 18
Slide 21: Top Five Holdings
Top Five Holdings For personal use only Name Summary Story Pacific Chinese property-related Significant structural downside protections built into its investment Alliance assets and loans with a holdings. Recent move into realisation provides catalyst for China Land conservatively valued portfolio e
Slide 22: We have already begun exiting some investments
We have already begun exiting some investments All returns quoted are A$ returns For personal use only Premium/(Discount) Price NAV Fund A Fund B £7.0 15% £1.8 10% NAV return:+28% NAV return:+11% Price return:+35% £1.7 Price return:+20% Discount capture:+7% 10% Discount capture:+7% £6.0 £1.6 5% 5% £
Slide 23: Investment Portfolio
Investment Portfolio For personal use only Inherent benefits in running a diversified portfolio over time 21
Slide 24: In the land of the blind, the one-eyed man is king
In the land of the blind, the one-eyed man is king We focus on buying assets at a discount, not trying to pick asset classes For personal use only Asset Class1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Australian Shares 28% 21% 25% 18% -40% 40% 3% -11% 19% 20% International Shares 10% 17% 12
Slide 25: 5. Performance since IPO
For personal use only 5. Performance since IPO 23
Slide 26: Net Tangible Assets as at 31st October, 2014
Net Tangible Assets as at 31st October, 2014 For personal use only Net Tangible Asset (NTA) per share* NTA before tax $1.0077 NTA after tax $1.0011 * NTA figures are not adjusted for outstanding options. Adjusting for outstanding options the diluted NTA before tax would be A$1.004/shr In less than 4
Slide 27: Capital Structure
Capital Structure For personal use only Outstanding shares & options Shares outstanding (GVF): 54,969,601 Options outstanding (GVFO): 54,953,600 All shareholders Option terms who participated in Exercise price: $1.00 the IPO received Options are exercisable at any time until the 17th March 2016 opti
Slide 28: Fund terms
Fund terms For personal use only Company Details Structure Listed Investment Company Incorporated Australia Service Providers Investment Manager Metage Capital Limited ir@globalvaluefund.com.au Registrar Boardroom Pty Limited enquires@boardroomlimited.com.au Tel no. 1300 737 760 Prime Broker/Custodi
Slide 29: Further information
For personal use only statement? Further information Landline (UK): +44 20 7087 7053 Mobile (Australia): 0423 428 972 miles.staude@globalvaluefund.com.au www.globalvaluefund.com.au
Global Value Fund — Investor Presentation (November 2014) on 6ix