Abrdn European Logistics Income Plc · LSE:ASLI
Abrdn European Logistics Income — Aberdeen Asset Management — Investor Presentation (July 2009)
25 slides from Abrdn European Logistics Income's investor presentation, Jul 22, 2009
Slide 1: Aberdeen Asset Management Fixed Income division
Aberdeen Asset Management Fixed Income division 22 July 2009 Paul Griffiths, Global Head of Fixed Income Chris Gagnier, Head of US Fixed Income Charles McKenzie, Head of Fixed Income EMEA
Slide 2: Paul Griffiths – Global Head of Fixed Income
Paul Griffiths – Global Head of Fixed Income • Based in London and responsible for the operation and co-ordination of the global fixed income business and member of Group Management Board • Will work closely with regional heads of fixed income as well as the heads of the respective alpha teams • Joi
Slide 3: Aberdeen – Pro forma enlarged AuM
Aberdeen – Pro forma enlarged AuM Aberdeen – May 09 Credit Suisse – May 09 Combined Group Multi-Asset Multi-Asset Property 5% 5% 1% Equities Property 17% 17% Equities 31% Property Equities 22% 35% Multi-Asset Money 5% market 38% Money market 10% Fixed income Fixed income 39% 37% Fixed income 37% Tot
Slide 4: Fixed Income breakout
Fixed Income breakout 31 May 09 Aberdeen % Credit Suisse % Combined % (£bn) UK 11.6 33 2.8 10 14.4 23 US 9.9 28 0.6 2 10.4 16 Asia Pacific 3.5 10 6.0 21 9.5 15 Global 6.9 19 2.2 8 9.0 14 Europe 1.8 5 1.9 7 3.7 6 Emerging markets 1.6 4 0.3 1 1.8 3 Convertibles - - 0.5 2 0.5 1 High Yield 0.4 1 0.1 0 0
Slide 5: Enlarged Fixed Income division
Enlarged Fixed Income division • £14.3bn of fixed income assets transferred across taking pro forma AuM to £49.9bn (37% of Group AuM) • £13.7bn of Money Market funds transferred across (10% of Group AuM) • New fixed income assets principally open-end funds but include a number of segregated mandates
Slide 6: Fixed Income: Global Resources and Products
Fixed Income: Global Resources and Products Global Head of Fixed Income US Paul Griffiths EMEA Global Fixed US Core Income US Core Plus UK Fixed Income High Yield (US$) Euro Fixed Income London 70 Emerging Market Debt Philadelphia 36 Money Markets Singapore Asia Pacific 13 High Yield (EUR) Australia
Slide 7: Fixed Income Process: An Evolution not a Revolution
Fixed Income Process: An Evolution not a Revolution • Alpha team structure continues to underpin Fixed Income investment process • Significant Bottom-Up skills within Aberdeen are critical to our future success • CS acquisition brings: - clear Top-Down portfolio construction discipline - additional
Slide 8: US Fixed Income
YN ez Aberdeen US Fixed Income
Slide 9: Chris Gagnier – Head of US Fixed Income division
Chris Gagnier – Head of US Fixed Income division • Senior Portfolio Manager and Head of US fixed income • Based in Philadelphia • Joined Aberdeen in 1997 from DeAM • 17 years experience in fixed income investments at Paine Webber and Continental Bank • BS from University of Pennsylvania: MBA from Un
Slide 10: US Fixed Income Overview
US Fixed Income Overview Products Assets Benchmark Core* $7.7 bn Barclays Capital US Aggregate Core Plus** $5.8 bn Barclays Capital US Aggregate Core Short Duration $1.3 bn ML 1-3 Year Treasury Index Short Duration $2.1 bn Various Global Aggregate** $4.6 bn Barclays Capital Global Aggregate $21.5 bn
Slide 11: Investment process overview
Investment process overview Security selection, portfolio construction and risk management • Performance target Product design • Guidelines • Risk budget • Intrinsic value analysis Bottom up security selection • Buy/sell discipline • Team comparison cross sector Cross sector relative value • Team re
Slide 12: Market review – June 2009
Market review – June 2009 Total return (%) YTD 09 Year 08 Barclays Capital Aggregate 1.90 5.24 Treasuries (4.30) 13.74 Agencies (0.04) 9.26 MBS 2.91 8.34 Corporates 8.32 (3.08) ABS 15.78 (12.72) EMBI GI Diversified 15.55 (12.03) CMBS 10.36 (20.52) High Yield 27.22 (26.17) S&P 3.19 (38.49) EAFE 8.42
Slide 13: Barclays Capital MBS, ABS, & CMBS Indices – Excess Returns
Barclays Capital MBS, ABS, & CMBS Indices – Excess Returns Calendar Year Results Excess Return (bp) MBS ABS CMBS 2,500 2,000 1699 1,500 1281 1,000 500 137 210 201 142 137 297 125 125 93 53 130 131 173 181 77 48 83 74 113 139 142 118 121 87 13 16 -13 27 87 42 -16 11 32 15 0 -49 -90 -77 -41 -75 -37 -1
Slide 14: Barclays Capital Credit Indices – Excess Returns
Barclays Capital Credit Indices – Excess Returns Calendar Year Results Excess Return (bp) Credit Index BBB Credit Index Finance 2,000 1893 1,750 1,500 1151 1,250 938 1,000 934 750 527 368 478 500 263 158 316 277 279 219 267 227 160 203 160 207 154 133 136 194 170 165 274 159 131 146 250 104 91 53 12
Slide 15: Despite rally, corporates remain historically cheap to MBS
Despite rally, corporates remain historically cheap to MBS SOT - USCORP vs USMBS Spread to Tsy U.S. Corporate Investment Grade U.S. Mortgage Backed Securities 700 600 500 400 300 200 100 - 00 00 00 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09
Slide 16: Core Plus Fixed Income performance attribution
Core Plus Fixed Income performance attribution Year 08 YTD 09 CORE (17.18) % 5.26 % Asset-Backed Securities (0.17) 0.06 Residential MBS (9.80) 1.86 Commercial MBS (4.13) 0.72 Corporate (2.86) 2.45 Agency 0.34 (0.27) Municipal (0.57) 0.44 PLUS SECTORS (2.13) 1.65 High Yield (1.73) 1.26 Emerging Marke
Slide 17: Portfolio yield vs index
Portfolio yield vs index Aberdeen Core Plus Fixed Income Representative Account Relative exposure Benchmark*YTM Account +/- % YTM Treasury -19.8% 2.40 2.61 Agency -13.2% 2.52 N/A Agency MBS -9.4% 4.34 8.66 Non-Agency MBS 10.9% N/A 12.52 Corporate 12.9% 5.98 6.53 ABS 1.1% 5.20 14.49 CMBS 4.2% 9.90 9.
Slide 18: EMEA Fixed Income
YN ez Aberdeen EMEA Fixed Income
Slide 19: Charles McKenzie – Head of Fixed Income EMEA
Charles McKenzie – Head of Fixed Income EMEA • Joined Aberdeen via the acquisition of Deutsche Asset Management's London and Philadelphia fixed income businesses in 2005 • Previously Head of UK fixed income at Deutsche Asset Management in London which he joined in 1993. • Previously, worked at Globa
Slide 20: The liquidity crisis
-100 -50 0 50 100 150 200 30 Jun 09 01 Jul 88 Source: Bloomberg 01 Jul 89 01 Jul 90 Lawson Boom 01 Jul 91 01 Jul 92 ERM 01 Jul 93 The liquidity crisis 01 Jul 94 3M LIBOR vs UK base rates 01 Jul 95 01 Jul 96 01 Jul 97 Asia LTCM Russia 01 Jul 98 01 Jul 99 Y2K 01 Jul 00 01 Jul 01 01 Jul 02 01 Jul 03 01
Slide 21: Unfolding of the credit crunch
Unfolding of the credit crunch All maturity credit yield spread over gilts Central Banks announce QE Rating agencies 500 Bank sub became proactive debt drops On European out of index DB failed to call Bank Governments step in subordinated US stress test to save global debt for banks financial system
Slide 22: Performance – EMEA Fixed Income
Performance – EMEA Fixed Income To 30 June 09 Relative performance (% pa) YTD 1 year 3 years Global Government +1.76 +0.56 +0.31 Global Aggregate +2.90 -6.22 -2.91 Global Credit +4.88 -8.89 - Euro Aggregate +0.63 -3.85 -1.77 UK Aggregate +0.83 -1.37 -0.51 Emerging Market Debt – Core +3.61 -3.99 -0.4
Slide 23: Current positioning: EMEA Fixed Income
Current positioning: EMEA Fixed Income • Interest rates: - Overweight long dated UK gilts - Overweight short dated European rates • Currencies: - Low levels of risk - Focus on relative value • Security selection: - Overweight financials - Underweight industrials and sovereign/supranationals • Overwe
Slide 24: Summary
Summary • Combined teams to capture strengths of both CS and Aberdeen • Introducing new products and clients to Aberdeen • Enhanced portfolio construction and risk control in US fixed income • Seeing strong recovery in performance year to date • Fixed income capability truly global, able to leverage
Slide 25: Disclaimer
Disclaimer The information contained herein, including any opinions or forecasts have been obtained or are based on sources believed by Aberdeen to be reliable, but Aberdeen does not warrant the accuracy, adequacy or completeness of the same, and expressly disclaims liability for any errors or omiss
Aberdeen Asset Management — Investor Presentation (July 2009) on 6ix