Smead International Value Fund Class A Shares · NASDAQ:SVXAX
Smead International Value Fund Class A Shares — Smead Value Fund — Investor Presentation (June 2021)
47 slides from Smead International Value Fund Class A Shares's investor presentation, June 2021
Slide 1: Smead Value Fund 1st Quarter 2021 Webcast
Smead Value Fund 1st Quarter 2021 Webcast This material is provided for informational purposes only and should not be construed as investment advice. Forecasts and opinions reflect the personal judgments of the presenter and may not reflect those of Smead Capital Management. Statements and opinions
Slide 2: Today's Agenda
Today’s Agenda Performance, Characteristics and Top 10 Holdings Cole Smead, CFA, Portfolio Manager Featured Stock: Merck & Co., Inc. (MRK) Tony A. Scherrer, CFA, Portfolio Manager Winning the Peace Bill Smead, Lead Portfolio Manager 2
Slide 3: Quarter-End Performance
Quarter-End Performance Total Returns (%) as of March 31, 2021 Since Qtr YTD 1 Year 3 Year 5 Year 10 Year Inception Smead Value Fund Investor Class (SMVLX) 20.22% 20.22% 79.86% 15.26% 14.43% 14.49% 9.75% Smead Value Fund A Share w/ load (SVFAX) 13.32% 13.32% 69.47% 13.03% 13.12% 13.74% 9.15% Smead V
Slide 4: Key Facts and Characteristics
Smead Value Fund Key Facts and Characteristics as of March 31, 2021 Price to Earnings (P/E) 4 Past performance does not guarantee future results. P/E: Price to earnings ratio.
Slide 5: Top Ten Holdings
Smead Value Fund Top Ten Holdings as of March 31, 2021 Percentage of Fund Lennar Corp 6.21% American Express Co 5.64% Target Corp 5.58% NVR Inc 5.28% Amgen Inc 4.92% Merck & Co Inc 4.89% Continental Resources Inc 4.66% JPMorgan Chase & Co 4.56% Bank of America Corp 4.27% eBay Inc 4.11% 0.00% 1.00% 2
Slide 6: Portfolio Additions / Deletions
Portfolio Additions / Deletions First Quarter 2021 > New positions: > Trims to position weightings: – Discovery Inc Series C (DISCK) – Accenture (ACN) – Walgreens Boots Alliance Inc. (WBA) – Walt Disney Co. (DIS) > Adds to position weightings: – Discovery Communications Inc. (DISCA) – Amgen Inc. (AM
Slide 7: Today's Agenda
Today’s Agenda Performance, Characteristics and Top 10 Holdings Cole Smead, CFA, Portfolio Manager Featured Stock: Merck & Co., Inc. (MRK) Tony A. Scherrer, CFA, Portfolio Manager Winning the Peace Bill Smead, Lead Portfolio Manager 7 CFA is a registered trademark owned by the CFA Institute.
Slide 8: Featured Stock: Merck & Co., Inc. (MRK) Our Eight Criteria
Featured Stock: Merck & Co., Inc. (MRK) Our Eight Criteria Required over entire holding period 1. Meets an economic need 2. Strong competitive advantage (wide moats or barriers to entry) 3. Long history of profitability and strong operating metrics 4. Generates high levels of free cash flow (FCF) 5.
Slide 9: Meets an Economic Need
Featured Stock: Merck & Co., Inc. (MRK) Meets an Economic Need 9 Past performance is no guarantee of future results. Source: Company Fact Sheet
Slide 10: Strong Competitive Advantage
Featured Stock: Merck & Co., Inc. (MRK) Strong Competitive Advantage 10 Past performance is no guarantee of future results. Source: Trefis
Slide 11: Strong Competitive Advantage
Featured Stock: Merck & Co., Inc. (MRK) Strong Competitive Advantage 11 Past performance is no guarantee of future results. Source: Merck Pipeline Q1 2021; RBC Initiation of Coverage report
Slide 12: Long History of Profitability & Operating Metrics
Featured Stock: Merck & Co., Inc. (MRK) Long History of Profitability & Operating Metrics 12 Past performance is no guarantee of future results. Source: Bloomberg
Slide 13: High Levels of Free Cash Flow
Featured Stock: Merck & Co., Inc. (MRK) High Levels of Free Cash Flow 13 Past performance is no guarantee of future results. Source: Bloomberg
Slide 14: Low Price in Relation to Intrinsic Value
Featured Stock: Merck & Co., Inc. (MRK) Low Price in Relation to Intrinsic Value 14 Past performance is no guarantee of future results. Source: FactSet
Slide 15: History of Shareholder Friendliness
Featured Stock: Merck & Co., Inc. (MRK) History of Shareholder Friendliness 15 Past performance is no guarantee of future results. Source: Bloomberg
Slide 16: Strong Balance Sheet
Featured Stock: Merck & Co., Inc. (MRK) Strong Balance Sheet 16 Past performance is no guarantee of future results. Source: Merck Investor Day
Slide 17: Insider Ownership
Featured Stock: Merck & Co., Inc. (MRK) Insider Ownership 17 Past performance is no guarantee of future results. Source: Bloomberg
Slide 18: Today's Agenda
Today’s Agenda Performance, Characteristics and Top 10 Holdings Cole Smead, CFA, Portfolio Manager Featured Stock: Merck & Co., Inc. (MRK) Tony A. Scherrer, CFA, Portfolio Manager Winning the Peace Bill Smead, Lead Portfolio Manager 18
Slide 19: Winning the Peace
Winning the Peace Presented by: Bill Smead Lead Portfolio Manager www.smeadcap.com © 2021 Smead Capital Management (SCM), All Rights Reserved. Opinions are subject to change, are not guaranteed, and should not be considered recommendations to buy or sell any security.
Slide 20: Agenda
Agenda Who Won the War? Who Wins the Peace? Where to Invest for the Peace? 20
Slide 21: Who Won the War? Stay At Home Stocks
Winning the Peace Who Won the War? Stay At Home Stocks 21 Past performance is no guarantee of future results. Source: Yardeni; Cypress Capital March 26, 2021
Slide 22: Who Won the War? Work From Home Stocks
Winning the Peace Who Won the War? Work From Home Stocks 22 Past performance is no guarantee of future results. Source: Bloomberg
Slide 23: Who Won the War? The Unprofitable
Winning the Peace Who Won the War? The Unprofitable 23 Past performance is no guarantee of future results. Source: Cypress Capital March 26, 2021; https://www.barrons.com/articles/the- booming-ipo-market-shows-no-signs-of-slowing-what-investors-need-to-know-51615546800
Slide 24: Who Won the War? The Fed / Deficit Spending
Winning the Peace Who Won the War? The Fed / Deficit Spending 24 Past performance is no guarantee of future results. Source: Cypress Capital March 12, 2021
Slide 25: Who Won the War? Equity Enthusiasm
Winning the Peace Who Won the War? Equity Enthusiasm 25 Past performance is no guarantee of future results. Source: JP Morgan; Cypress Capital March 26, 2021
Slide 26: Who Won the War? Insane Speculation-SPACTACULAR
Winning the Peace Who Won the War? Insane Speculation-SPACTACULAR Past performance is no guarantee of future results. Source: Bloomberg; https://www.ft.com/content/3258285a-00c2-445e-a318- 26 3e760c298698. A special purpose acquisition company (SPAC) is a company with no commercial operations that i
Slide 27: Who Won the War? Fleas and Lice / Bitcoin and Tesla
Winning the Peace Who Won the War? Fleas and Lice / Bitcoin and Tesla 27 Past performance is no guarantee of future results. Source: Bloomberg
Slide 28: Agenda
Agenda Who Won the War? Who Wins the Peace? Where to Invest for the Peace? 28
Slide 29: Who Wins the Peace? 1918 vs. 1945
Winning the Peace Who Wins the Peace? The Importance of Winning the Peace: 1918 vs. 1945 29 Past performance is no guarantee of future results. Source: The Winnipeg Evening Tribune, Nov 4, 1918
Slide 30: Who Wins the Peace? The Vaccine Army
Winning the Peace Who Wins the Peace? The Vaccine Army 30 Past performance is no guarantee of future results. Source: Fundstrat; JP Morgan Guide to the Markets, March 31, 2021
Slide 31: The Demographic Pig Through the Python
Winning the Peace Who Wins the Peace? The Demographic Pig Through the Python 31 Past performance is no guarantee of future results. Source: Fundstrat
Slide 32: Who Wins the Peace? Necessary Industries
Winning the Peace Who Wins the Peace? Necessary Industries 32 Past performance is no guarantee of future results. Source: Fundstrat
Slide 33: Unlevered Personal Balance Sheets Ready to Go
Winning the Peace Who Wins the Peace? Unlevered Personal Balance Sheets Ready to Go 33 Past performance is no guarantee of future results. Source: Bloomberg
Slide 34: Main Street Economic Ability to take Risk
Winning the Peace Who Wins the Peace? Main Street Economic Ability to take Risk Mortgage Burden 34 Past performance is no guarantee of future results. Source: https://themortgagereports.com/61853/30-year-mortgage-rates-chart
Slide 35: Agenda
Agenda Who Won the War? Who Wins the Peace? Where to Invest for the Peace? 35
Slide 36: Where to Invest for the Peace? Homebuilders
Winning the Peace Where to Invest for the Peace? Homebuilders 36 Past performance is no guarantee of future results. Source: Advisor Perspectives November 2019; Cypress Capital March 26, 2021
Slide 37: Where to Invest for the Peace? Class A Mall REITS
Winning the Peace Where to Invest for the Peace? Class A Mall REITS 37 Past performance is no guarantee of future results. Source:
Slide 38: Where to Invest for the Peace? Banks
Winning the Peace Where to Invest for the Peace? Banks Past performance is no guarantee of future results. Source: Bloomberg; https://www.wsj.com/articles/the-pandemic-ignited-a-housing- 38 boombut-its-different-from-the-last-one-11615824558?mod=article_inline
Slide 39: Where to Invest for the Peace? Energy
Winning the Peace Where to Invest for the Peace? Energy 39 Past performance is no guarantee of future results. Source: JP Morgan Guide to the Markets, March 31, 2021
Slide 40: Where to Invest for the Peace? Drug/biotech blue chips
Winning the Peace Where to Invest for the Peace? Drug/biotech blue chips NYSE Arca Pharmaceutical forward P/E relative to the S&P 500 40 Past performance is no guarantee of future results. Source: Factset
Slide 41: Dividends & Book Value
Winning the Peace Where to Invest for the Peace? Dividends & Book Value 41 Past performance is no guarantee of future results. Source: Cypress, January 15, 2021 + March 12, 2021
Slide 42: Agenda
Agenda Who Won the War? Who Wins the Peace? Where to Invest for the Peace? 42
Slide 43: Today's Agenda
Today’s Agenda Performance, Characteristics and Top 10 Holdings Cole Smead, CFA, Portfolio Manager Featured Stock: Merck & Co., Inc. (MRK) Tony A. Scherrer, CFA, Portfolio Manager Winning the Peace Bill Smead, Lead Portfolio Manager 43
Slide 44: Definitions
Definitions Basis point: A basis point is one hundredth of one percent, used chiefly in expressing differences of interest rates. Book Value: A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as good
Slide 45: Definitions
Definitions NASDAQ-100 is a stock market index made up of 104 equity securities issued by 100 of the largest non-financial companies listed on the NASDAQ. It is a modified capitalization-weighted index. Nasdaq Composite Index is the market capitalization-weighted index of approximately 3,000 common
Slide 46: Disclosures
Disclosures Past performance is no guarantee of future results. Consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The statutory and summary prospectuses contain this and other information about the Fund and is available at www.smeadcap.com or by
Slide 47: Questions & Answers
| Questions & Answers Email info@smeadcap.com or call 877.701.2883 | SMEAD CAPITAL MANAGEMENT 2777 East Camelback Road, Suite 375 Phoenix, AZ 85016