Staude Capital Global Value Fund Ltd · ASX:GVF
Staude Capital Global Value Fund — Global Value Fund — Investor Presentation (May 2015)
28 slides from Staude Capital Global Value Fund's investor presentation, May 18, 2015
Slide 1: www.globalvaluefund.com.au
www.globalvaluefund.com.au
Slide 2: Disclaimer
Disclaimer 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) is provided to the rec
Slide 3: Agenda
Agenda: 1. Key issues driving global financial markets 2. About the Global Value Fund 3. Investment portfolio 4. Performance since IPO 5. Dividend guidance 1
Slide 4: 1. Key issues driving global financial markets
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 ECB Return of risk Beginnings of a implementing appetite US$ bull market aggressive QE Global growth Equity markets Fed raising improving, led near all-time interest rates by US recovery highs We believe financial markets are pricing in these hea
Slide 6: The second page stories that we are following
The second page stories that we are following Coming impact Markets Risk the US of Central Bank underestimating recovery falters policy impact of ECB divergence Risk of an Further Equity markets Emerging Market downside risks still look cheap debt crisis to the A$ Less clear how markets have priced
Slide 7: ECB has had a greater impact than both Fed and BOJ
ECB has had a greater impact than both Fed and BOJ German Bund Yield Curve1 3.0% Apr-15 2.5% Apr-14 2.0% Euribor rates are now negative, 1.5% something that never happened Yield 1.0% in either the USA 0.5% or Japan 0.0% 0 5 10 15 20 25 30 -0.5% -1.0% Years 1 Data source Bloomberg LP and Metage Capit
Slide 8: Earnings are not what is driving equity markets
Earnings are not what is driving equity markets Earnings expectations have been falling1 Change in consensus earnings expectations over the past six months2 6-mth Change Liquidity and Country Equity Index 2015 EPS Estimates 2016 EPS Estimates Index 6-mth Total Return in 10-Yr Bond Yield Central Bank
Slide 9: Relative to bonds, equities remain cheap
Relative to bonds, equities remain cheap Earnings and sovereign bond yields1 Monetary policy remains highly supportive of all risk assets 1. Data source Reserve Bank of Australia * Trailing earnings-to-price ratio for MSCI AUS & S&P500 ** Prior to 1996 for Australia and 2000 for US, 10-yr sovereign
Slide 10: Central Bank policy divergence reaching extreme levels
Central Bank policy divergence reaching extreme levels Monetary Policy Pendulum1 EASING TIGHTENING The gap between Central Banks will widen further as the Fed begins its tightening cycle The backdrop for a structural US$ bull market? 1 Data source Credit Suisse, Bank of International Settlements 8
Slide 11: 2. About the Global Value Fund
2. About the Global Value Fund 9
Slide 12: The Global Value Fund: core discount capture strategy
The Global Value Fund 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; comparable with the core of ou
Slide 13: Passive and active discount capture methods
Discount Capture Strategy Both passive and active strategies 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 events, as well as tradi
Slide 14: Naturally low beta and low correlation to equity markets
Discount Capture Strategy Risk reducing investment 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 Naturally low and asse
Slide 15: 3. Investment portfolio
™ 3. Investment portfolio 13
Slide 16: Investment Portfolio – Underlying asset and currency exposures
Investment Portfolio – Underlying asset and currency exposures Underlying asset classes Underlying currency exposures Fixed Income EUR 22% 16% USD 36% Listed Equity 48% Hedge CNY 11% Fund 14% Real Estate Other 6% GBP 11% 10% VND 2% Cash 6% Private Other 4% Equity 3% AUD 12% Inherent benefits in runn
Slide 17: Top Five Holdings
Top Five Holdings Name Summary Story HSBC China Hong Kong listed closed-end The position has been accumulated at an average discount to net Dragon Fund fund investing in a diversified asset value of wider than 25%. portfolio of Chinese equities. Boussard & A feeder fund into the BG The BG Master Fun
Slide 18: Case Study: Standard Life UK Smaller Companies Trust
Case Study: Standard Life UK Smaller Companies Trust UK small-cap fund with semi-annual tender Equity CEF Description Investment Rationale London-listed closed-end fund investing in an actively The fund provides attractive exposure to the UK equity managed portfolio of smaller and mid-sized companie
Slide 19: Case Study: A European direct property fund
Case Study: A European direct property fund Deeply discounted European property fund in realisation Property CEF Description Investment Rationale London-listed closed-end fund investing directly in Shareholders voted in 2013 to move the Fund into run-off. European commercial real estate and run by o
Slide 20: Case Study: AMP Capital China Growth Fund
Case Study: AMP Capital China Growth Fund Chinese equities at an attractive discount Equity CEF Description Metage Action ASX listed trust investing in the domestic Chinese A-share Attempts to engage constructively with the Responsible stock market. Entity (RE) have so far been disappointing. This c
Slide 21: 4. Performance since IPO
™ 4. Performance since IPO 19
Slide 22: Investment portfolio return: discount capture strategy since IPO
Investment portfolio1 return Discount capture strategy since IPO 25% Discount capture strategy Performance of underlying investment classes 20% The fund holds a diversified 15% Cumulative Return portfolio of 10% global assets 5% Discount capture represents 0% manager Jun-14 Aug-14 Oct-14 Dec-14 Feb-
Slide 23: Substantial growth in NTA since IPO
Substantial growth in NTA since IPO NTA per Share1 1.15 1.10 Pre-Tax NTA has 1.05 increased 14.9% NTA per Share ($) since IPO in July 1.00 2014 0.95 0.90 0.85 IPO Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 1 Pre-tax NTA per share not adjusted for outstanding options 21
Slide 24: 5. Dividend guidance
™ 5. Dividend guidance 22
Slide 25: Dividend Guidance
Dividend Guidance Intended Final Fully Franked Dividend of 2 cents per share The Board recently guided it intends to declare a fully franked final dividend for FY2015 of 2.0 cents per share, so long as it remains prudent to do so. The Board understands the Interim Dividend for FY 2016 The Board curr
Slide 26: Capital Structure
Capital Structure Outstanding shares & options1 Shares outstanding (GVF): 65,029,463 Options outstanding (GVFO): 58,656,763 Option holders Option terms who exercise Exercise price: $1.00 their options Options are exercisable at any time until the 17th March 2016 before the Option ISIN: AU00000GVFO1
Slide 27: Global Value Fund Limited
Global Value Fund Limited 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/Custodian Cred
Slide 28: Further information
statement? Further information Landline (UK): +44 20 7087 7053 Mobile (Australia): 0423 428 972 miles.staude@globalvaluefund.com.au www.globalvaluefund.com.au