Eventide Balanced Fund Class N · NASDAQ:ETNMX
Eventide Balanced Fund Class N — Eventide Healthcare & Life Sciences Fund — Investor Presentation (September 2022)
39 slides from Eventide Balanced Fund Class N's investor presentation, Sep 30, 2022
Slide 1: Eventide Healthcare & Life Sciences Fund Q3 2022 Presentation
Eventide Healthcare & Life Sciences Fund Q3 2022 Presentation For use during Q4 2022 | © Eventide Asset Management, LLC. 1
Slide 2: Eventide Asset Management overview
Founded: 2008 Headquarters: Boston, MA Vision: To serve individuals, financial advisors, and institutions by offering high performance investments that create compelling value for the global common good. Funds: • Eventide Gilead Fund • Eventide Multi-Asset Income Fund • Eventide Healthcare & Life Sc
Slide 3: Investment Ideals
Investment Ideals We seek investment ✔ Respecting the value and freedom of all people: this includes the right to life at all stages and opportunities that freedom from addictive behaviors caused by gambling, pornography, tobacco and alcohol. reflect these ideals: Demonstrating a concern for justice
Slide 4: Eventide Healthcare & Life Sciences Fund
Eventide Healthcare & Life Sciences Fund Objective A: ETAHX | C: ETCHX | I: ETIHX | N: ETNHX Seeks to provide long-term capital appreciation About the Fund A diversified mutual fund seeking long-term capital appreciation in the healthcare and life sciences sectors (≥80%). Concentrates investments in
Slide 5: Eventide Distinctives
Eventide Distinctives Themes of Human Flourishing Seeking to invest in companies best positioned to participate in long-term secular investment themes that serve important human needs. Creating Compelling Value for Society and the Global Common Good Focused on identifying and investing in companies
Slide 6: Fund Distinctives
Fund Distinctives Focused on Early Development-Stage Companies Median market capitalization of $0.6B. Creating Compelling Value For Patients and Society Targeting large unmet medical needs, rare and orphan diseases. Access to Differentiated Offerings Investing in IPOs, mezzanine financing offerings,
Slide 7: Healthcare Investment Team
Healthcare Investment Team Finny Kuruvilla, Kyle Rasbach, Westley Dupray MD, PhD PhD Research Analyst, Associate Co-CIO, Senior Portfolio Managing Director, Senior Manager Research Analyst Westley Dupray, CFA, serves as a Research Analyst for Dr. Kuruvilla serves as Dr. Rasbach serves as a Eventide,
Slide 8: Investment Team
Investment Team Finny Kuruvilla, Dolores Anant Goel Andrew Singer, Kyle Rasbach, MD, PhD Bamford, CFA Portfolio CFA MD, PhD Co-CIO, Senior Co-CIO, Senior Manager, Senior Portfolio Managing Portfolio Portfolio Research Manager, Senior Director, Senior Manager Manager Analyst Research Research Analyst
Slide 9: Trading Team
Trading Team Colin Delaney Conor Kelly Head of Trading, Portfolio Trading Specialist Specialist For informational purposes only. As of 09/30/2022. For use during Q4 2022 | © Eventide Asset Management, LLC. 9
Slide 10: Business 360 Research Team
Business 360® Research Team Tyler Frugia Brock Treworgy Dashell Laryea Director of Business 360 Business 360 Business 360 Research Research Manager Analyst Ruben Walter Fred Ge Business 360 Senior Portfolio Research Consultant Analyst For informational purposes only. As of 09/30/2022. For use during
Slide 11: Investment Philosophy
Investment Philosophy We believe high-quality companies that excel at creating value for others and trade at a discount to intrinsic value offer superior long-term risk-adjusted returns. The Adviser’s judgment about the quality and intrinsic value of particular companies may prove to be incorrect. T
Slide 12: Investment Process
Investment Process FINANCIAL A N A LY S I S RISK MANAGEMENT Look for companies with long- term financial strength by Construct portfolio with analyzing historical financial goals of high internal IDEA performance and modeling diversification and low EVENTIDE VA L U AT I O N market correlation. G E N
Slide 13: Idea Generation
Idea Generation Start with themes, then identify companies best positioned for participation • Understand the big picture of industries. • Discern attractive long-term secular investment themes. • Leverage consultants, industry experts, Key Opinion Leaders. • Review industry specific reports, trends
Slide 14: Biotech Investment Checklist
Biotech Investment Checklist ü Compelling data (i.e., differentiated efficacy, toxicity, or route of delivery) ideally from a well-controlled clinical trial or, if preclinical, the molecular target or animal model is well-validated and translatable into humans. ü Targeting a large unmet medical need
Slide 15: Investment Themes
Investment Themes Themes poised to grow by serving society and human flourishing • Autoimmune • Cardiovascular and Metabolism • Gastroenterology • Infectious Disease • Medical Devices, Tools, and Diagnostics • Neurology • Ophthalmology • Precision Oncology • Rare Disease These are representative exa
Slide 16: Investment Themes
Investment Themes Seeking to invest in companies positioned at the nexus of long- term secular growth themes and important human needs. These are representative examples of themes in the Eventide Funds. The Adviser’s judgment about secular themes may prove to be incorrect. There is no guarantee that
Slide 17: Qualitative Analysis
Qualitative Analysis Look for “high-quality” companies, which we believe to have: The Adviser’s judgment about the quality of a particular company may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. For use dur
Slide 18: Our Research Framework: Business 360
Our Research Framework: Business 360® Our proprietary framework for evaluating both a company’s long-term competitive advantage and its impact on human flourishing by analyzing its operations and strategy through the lens of key stakeholders. Reference to Eventide’s Business 360® approach is provide
Slide 19: We believe what's right is also smart
We believe what’s right… …is also smart. Companies that place a premium on: Tend to have: • Customer satisfaction • Higher customer loyalty • Employee morale • Higher productivity • Supplier partnership • Resilient supply chains • Societal impact • Stronger brands • Environmental stewardship • Susta
Slide 20: Financial Analysis
Financial Analysis Look for companies with long-term financial strength QUALITIES: ✔ Well capitalized (≧ 1 year of cash remaining) to reach key ✔ No history of ill-conceived and/or poorly executed milestones (clinical trial data release, FDA indication, product financings (extremely dilutive) launch
Slide 21: Valuation Analysis
Valuation Analysis Look for companies with most attractive value and potential • Measure intrinsic value through Discounted Cash Flow (DCF) analysis. We believe the best way to measure the • Build DCF model using forecast assumptions and intrinsic value of a company is with then probability-adjust t
Slide 22: Macro Positioning
Macro Positioning Position portfolio according to our macro views • Establish macro views by synthesizing three key data streams: • Leading economic indicators • Valuation • Sentiment • Position portfolio using cash and other tools to allow stock selection on fundamental grounds to mesh with our mac
Slide 23: Portfolio Construction
Portfolio Construction Construct portfolio, manage for risk • Concentrated portfolio of approximately 60-70 companies (based on conviction level and asymmetry of gain vs. loss). • Manage for risk through high internal diversification and pursuit of consummate knowledge of holdings. • Devote approxim
Slide 24: Sell Discipline
Sell Discipline Continuously scrutinize investment case • Investment thesis failure. • No longer meets Eventide’s Business 360 criteria. • Price target achieved. • Management transition or other concerns. • More attractive use of capital elsewhere. For informational purposes only. There is no guaran
Slide 25: Composition
HLS Presentation Composition Composition A: ETAHX | C: ETCHX | I: ETIHX | N: ETNHX Portfolio Composition1 (%) 30 Sep 2022 Industry Allocation4 (%) 30 Sep 2022 1. Market cap definitions are based on those used by Morningstar, where Giant-Cap are those companies that account for the top 40% of capital
Slide 26: Growth of 10k
HLS Presentation Growth of 10k Performance A: ETAHX | C: ETCHX | I: ETIHX | N: ETNHX Growth of $10,0001 27 Dec 2012–30 Sep 2022 1. Compares the Eventide Healthcare & Life Sciences Fund Class I’s perfor- mance to index performance over the periods shown. Performance will differ Eventide Healthcare &
Slide 27: Trailing Returns
HLS Presentation Trailing Returns Performance A: ETAHX | C: ETCHX | I: ETIHX | N: ETNHX Trailing Returns1 (%) 30 Sep 2022 1. The returns shown do not reflect the deduction of taxes that a shareholder Eventide Healthcare & Life Sciences Fund YTD 3-mos 1-year 3-year2 5-year2 10-year2 Since Inception2
Slide 28: Annual Returns
HLS Presentation Annual Returns Performance A: ETAHX | C: ETCHX | I: ETIHX | N: ETNHX Annual Returns1 (%) 2013–2021 1. Compares the Eventide Healthcare & Life Sciences Fund Class I’s per- 2013 2014 2015 2016 2017 2018 2019 2020 2021 formance to index performance over the periods shown. Performance w
Slide 29: Market Risk
HLS Presentation Market Risk Market Risk A: ETAHX | C: ETCHX | I: ETIHX | N: ETNHX Market Risk1 30 Sep 2022 1. Source: © Morningstar, Inc. (2022). All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content pro- Std. Dev. Beta Alpha (%) R-Squared (%) 3
Slide 30: Morningstar Ratings
HLS Presentation Morningstar Ratings Morningstar ratings - overall 1. Eventide Healthcare & Life Sciences I class was rated 2 stars against 132 US Health funds for the 5 Yr period, and 2 stars Overall Morningstar Rating™ against 151 US Health funds for the 3 Yr period, based on Morningstar Risk-Adju
Slide 31: Morningstar Ratings: Sustainability
HLS Presentation Morningstar Ratings Morningstar ratings - Sustainability Health (551 funds) fraud, or discriminatory behavior. The Morningstar Sustainability Rating is then assigned to all scored funds within as of July 31, 2022 Morningstar Categories in which at least ten (10) funds receive a Port
Slide 32: Morningstar Rankings
HLS Presentation Morningstar Rankings Morningstar ratings - Returns Morningstar percentile rankings pertain to the I share class only. Prior to Q4 2020, Class N shares were displayed. Top 76% 1yr returns (169 funds) Rankings are subject to change and may differ for other share classes based on fees
Slide 33: Refinitiv Lipper
HLS Presentation Refinitiv Lipper Lipper Past performance is no guarantee of future results. The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Li
Slide 34: Important Information
Important Information Mutual funds involve risk including the possible loss of principal. Past performance does not guarantee future results. The Fund can invest in smaller-sized companies which may experience higher failure rates than larger companies and normally have a lower trading volume than l
Slide 35: Appendix
Appendix For use during Q4 2022 | © Eventide Asset Management, LLC. 35
Slide 36: Values-Based Analysis
Values-Based Analysis There are three dimensions to our approach to values-based investing: AV O I D EMBRACE ENGAGE Create an investable Conduct original Business 360® research Engage portfolio companies and universe of securities that to find the highest quality opportunities that security issuers
Slide 37: Sales Team
Sales Team Mark Wambolt Mike Jeff Cave, Lans Slack Abel Ballew Director of Sales Schnackenberg CIMA® Senior Regional Regional Director of Director of Director, Mid- Director, Intermediary Institutional Atlantic Region Heartland Distribution, Markets, Region New England Northeast Region Region Greg G
Slide 38: Investment Consulting Group
Investment Consulting Group Chris Grogan, Fred Ge, CFA CFA Senior Portfolio Director of Consultant Investment Consulting Robert Carney Harry Nelson, Portfolio CIMA® Consultant Chief Operating Officer For informational purposes only. As of 09/30/2022. For use during Q4 2022 | © Eventide Asset Managem
Slide 39: Eventide Asset Management, LLC contact details
Eventide Asset Management, LLC | One International Place, Ste. 4210 | Boston, MA 02110 | 877-771-EVEN (3836) For use during Q4 2022 | © Eventide Asset Management, LLC. | 9427-NLD 10/25/2022 39
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