Ninepoint Balanced+ Fund · TSX:NBAL
Ninepoint Balanced+ Fund — Ninepoint Alternative Income Fund — Q1 2020 Earnings Presentation
31 slides from Ninepoint Balanced+ Fund's earnings presentation, 2020
Slide 1: Ninepoint Alternative Income Fund Q1 2020 Review & Commentary
Ninepoint Alternative Income Fund Q1 2020 Review & Commentary Ramesh Kashyap Managing Director, Alternative Income Group Ninepoint Partners 0
Slide 2: Firm Overview
Ninepoint Partners Firm Overview 1
Slide 3: Firm Overview: Ninepoint Partners
Firm Overview: Ninepoint Partners† • Ninepoint Partners manages unique alternative investment solutions that strive to offer investors the benefits of better diversification. We target investment strategies that are uncorrelated from traditional asset classes, with the goal of lowering overall portf
Slide 4: Agenda
Agenda • Why Invest in Ninepoint Alternative Income Fund? • Q1 2020 Summary • Underlying Strategies • Performance • Key Contributors • Other Developments • Portfolio Positioning • Private Debt Outlook 3
Slide 5: Why Invest in Ninepoint Alternative Income Fund?
Why Invest in Ninepoint Alternative Income Fund? 4
Slide 6: The New "Normal"
The New “Normal” Generating current income in the new “normal” will be increasingly difficult. Bonds Dividend Stocks Commercial REITs Policy rates are expected to Volatility has been unprecedented Commercial real estate has been remain near zero in the as companies look to halt decimated by the pand
Slide 7: Why Invest in Ninepoint Alternative Income Fund?
Why Invest in Ninepoint Alternative Income Fund? The Fund is a through-the-cycle investment and is well diversified to soften volatile shocks. It should not be viewed as a tactical trade to time the economic cycle. • Strategies are primarily senior secured and first lien with conservative loan-to-va
Slide 8: Is Overseeing Private Debt Funds Important?
Is Overseeing Private Debt Funds Important? Ninepoint has invested in building specialized and dedicated expertise to analyze, select and oversee best-in-class private debt strategies. 1. Identify & Select Best-in-Class Managers 2. Seasoned Team with Institutional Experience 3. Enhanced Transparency
Slide 9: Alternative Income Oversight Committee
Alternative Income Oversight Committee Seasoned team with institutional experience. James Fox John Wilson Co-CEO, Managing Partner Co-CEO, Managing Partner • Formerly President of Sprott Asset Management LP • Formerly with Sprott Asset Management, CIO Cumberland PWM, RBC Capital Markets • Launched S
Slide 10: Q1 2020 Summary
Summary [Eitepoint
Slide 11: Q1 2020 Summary
Q1 2020 Summary For Quarter ended March 31st, 2020, the Ninepoint Alternative Income Fund (“Fund”) returned -2.02% (Net). Fund’s AUM was $536 million. Performance as at March 31st, 2020 – Series F Net Return Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2020 0.59% -0.03% -2.56% -2.02% 2019 0.5
Slide 12: Performance Attribution
Performance Attribution Mark-to-market markdowns and volatility in liquid credit markets impacted the Fund’s return for Q1 2020. Estimated Quarterly Attribution(1) Mark-to-Market Marketable Credit Securities Strategy • Mark-to-market losses are primarily “accounting • The global widening of credit s
Slide 13: Dislocation in Financial Markets
Dislocation in Financial Markets Economic fallout from COVID-19 has created a dislocation in the liquid credit market, creating an opportunity for private lenders. US Leveraged Loan Prices and Bid-Ask Spreads High yield & broadly syndicated loans have traded down since late February Due to its relat
Slide 14: Underlying Strategies
Underlying Strategies 13
Slide 15: Underlying Strategy Performance
Underlying Strategy Performance Mark-to-market markdowns and performance of the Marketable Credit Securities impacted the Fund’s Q1 2020 return. Underlying Strategy Performance Jan 2020 Feb 2020 Mar 2020 YTD(1) Private Debt North American Middle Market Senior Credit 0.65% -1.69% 1.30% 0.23% Bridge L
Slide 16: U.S. Middle Market Senior Credit
U.S. Middle Market Senior Credit Ninepoint is confident in underwriting and positioning of loans in the U.S. lower middle market. • All positions remain current; there are no workouts. • 2 positions were moved to Grade 3(1) risk rating – due to COVID-19, investments’ risk have increased since Update
Slide 17: North American Middle Market Senior Credit
North American Middle Market Senior Credit Focus on first-lien loans and over-collateralization of critical and valuable assets in companies with resilient business models will safeguard the portfolio in volatile environments. • 3 borrowers are in default – these remain the same names prior to COIVD
Slide 18: Canadian Middle Market Senior Credit
Canadian Middle Market Senior Credit Loans are fully supported by senior liens on assets at conservative loan-to-values with a focus on principal protection. • 13 of the 15 accounts not adversely impacted by COVID-19 and the credit quality remains high. Update on • 1 of the accounts have remained op
Slide 19: Other Developments
Other Developments Positive developments in the underlying strategies include…. North American Canadian Middle Middle Market Market Senior Trade Finance Opportunistic Senior Credit Credit Received additional Received repayments Remains fully deployed Generated 2.50% for the warrants for a new loan f
Slide 20: Portfolio Positioning
Portfolio Positioning 19
Slide 21: Ninepoint Alternative Income Fund Positioning
Ninepoint Alternative Income Fund Positioning The Fund has ~80+ unique issuers, ~74,000+ consumer loans, term to maturities ranging from 1 – 60 months and borrowers from various industries and geographies. Allocation By Strategy(1) Sector Breakdown(2) Marketplace Other High Interest Savings Account
Slide 22: Private Debt Outlook
Private Debt Outlook 21
Slide 23: Global Quarterly Private Debt Fundraising
Global Quarterly Private Debt Fundraising Q1 2020 fundraising has come to a halt as investors analyze the impact of the pandemic. Global Quarterly Private Debt Fundraising, Q1 2015 – Q1 2020 90 70 80 60 Aggregate Capital Raised ($bn) 70 50 60 No. of Funds Closed 50 40 40 30 30 20 20 10 $14 10 0 0 Q1
Slide 24: Investor Allocation in Private Debt
Investor Allocation in Private Debt Investors have continued to shift their Private Debt allocation defensively towards Senior Debt which represents 66% of deals in the space. Proportion of Deals by Strategy Junior/Subordinated Mezzanine Senior Debt Unitranche 3% 5% 7% 8% 9% 9% 10% 11% 16% 15% 15% 2
Slide 25: Bank Provisions for Credit Losses
Bank Provisions for Credit Losses U.S. Banks on average increased provisions by ~300% to deal with the upcoming uncertainty. We expect Canadian Banks to continue the trend, retract further and leave a large void. U.S. Banks Provision for Credit Losses (in US$ millions) 2019Q1 2020Q1 Increase in Prov
Slide 26: Dislocation In Financial Markets
Dislocation In Financial Markets Economic fallout from COVID-19 has created a dislocation in the liquid credit market, creating an opportunity for private lenders. High yield & broadly Liquidity in the public Due to its relative syndicated loans have debt market has come to a illiquidity, private de
Slide 27: Why Invest in Ninepoint Alternative Income Fund Now?
Why Invest in Ninepoint Alternative Income Fund Now? Compelling Risk/Return Profile Diversification & Current Income Seasoned Team with Rigorous Oversight Strategic Asset Allocation Downside Protection (Collateralized Senior Secured) With Upside Opportunity Repricing & Lender Friendly – Enhanced Yie
Slide 28: Ninepoint Alternative Income Fund
Ninepoint Alternative Income Fund Please refer to Offering Memorandum for full terms and conditions of the Offering. Type Open-ended unincorporated investment trust Status OM, Exempt Market, Continuous Offering Valuations Monthly Redemptions Monthly (30 days notice) Class A Units: 1.93% (NPP 630) as
Slide 29: Disclaimer
Disclaimer Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). The Ninepoint Alternative Income Fund is offered on a private placement basis pursuant to an offering memorandum and is only available to investors who meet certain eligibility or minimum p
Slide 30: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “cou
Slide 31: Contact Information
Contact Information Ninepoint Partners LP Royal Bank Plaza, South Tower 200 Bay St. Suite 2700 Toronto, Ontario M5J 2J1 T: 416 943 6707 Toll free: 866 299 9906 F: 416 628 2397 Invest@ninepoint.com www.ninepoint.com 30 30
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