Ninety One Plc · LSE:N91
Ninety One — SA Opportunity Fund webinar (April 2020)
19 slides from Ninety One's conference presentation, Apr 28, 2020
Slide 1: SA Multi-Asset – Surviving the short term to thrive longer term
SA Multi-Asset – Surviving the short term to thrive longer term Clyde Rossouw 28 April 2020
Slide 2: Important information
Important information All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such i
Slide 3: Ninety One Opportunity Fund Performance
Ninety One Opportunity Fund Performance Annualised performance in ZAR 15% Opportunity A Inc* Opportunity E Inc** SA CPI (Lagged) (ASISA) South African MA High Equity 9.5% 10% 8.6% 6.5% 5.3% 5.6% 5.2% 5.1% 4.6% 4.5% 4.6% 4.2% 5% 0.5% 0.9% 0.9% 0% -0.7% -5% -10% -10.4% -15% 1 year 3 years p.a. 5 years
Slide 4: Resilience in all market conditions
Resilience in all market conditions Opportunity Fund – relative to sector average over the last 20 years* Average rolling 12 month performance 25% Investec Ninety Opportunity One OpportunityAFund A 21.3% 19.4% Sector average 20% 15% 14.2% 11.6% 10% 8.7% 5.7% 5% 0% -2.3% -5% -6.5% -10% Sector > 10% S
Slide 5: Local assets have not rewarded investors for taking risk
Local assets have not rewarded investors for taking risk It hasn’t been easy for investors 15% 10% SA Cash 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% -45% -50% Global Equity SA Bonds SA Equity SA Listed Property SA MA Low Equity SA MA High Equity Funds Avg. Funds Avg. 5 year returns 1 year returns
Slide 6: Global markets have outperformed over the past 5 years
Global markets have outperformed over the past 5 years Source: Bloomberg as at 31 March 2020 6
Slide 7: Macro environment remains uncertain
Macro environment remains uncertain 2020 risks and uncertainties MSCI ACWI consensus EPS estimates ‒ Coronavirus $45 ‒ US-China trading relationship post Phase 1 deal? 2021 2020 $40 ‒ UK-EU trading relationship post Brexit? 2016 ‒ Global growth outlook $35 2013 2014 2015 2019 ‒ Geopolitics $30 2012
Slide 8: How do you balance real returns and capital preservation?
How do you balance real returns and capital preservation? SA Government Bonds 8
Slide 9: Aims to provide investors with inflation-beating returns
Aims to provide investors with inflation-beating returns Opportunity Fund Asset allocation as at 31 March 2020 1. High Quality Global Equities 4.6% - Preferred asset class 7.0% Offshore Cash - High quality global franchises on attractive SA Cash 24.3% valuations SA Equities 2. South African Fixed In
Slide 10: Quality global equities provide support when you need it most
Quality global equities provide support when you need it most Since inception of Global Franchise Fund (30 Apr 2007) All periods since Apr 2007 when the drawdown on All returns in ZAR the ALSI was 10% or more 300 A B C Global Global Franchise Franchise SA Global Fund Fund 250 Equities Equities (I-sh
Slide 11: Global Franchise Fund Performance
Global Franchise Fund Performance Annual performance in USD Cumulative performance in USD 200% 150% 28.2 137% 26.6 24.9 24.0 22.8 100% 9.2 8.4 7.9 6.8 78% 16.4 16.1 4.4 15.8 4.2 0.9 11.8 50% Percentage (%) 0% -2.4 -3.6 -5.9 -50% -9.4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mar-10 Mar-12 Ma
Slide 12: Attractive current positioning
Attractive current positioning Key portfolio characteristics 92% active share Global Franchise MSCI ACWI 25.6% 3,047 227.2 19.6x 18.7x 14.6% 11.3% 10.8% 4.4% 4.7% 23.5 1.3x 29 0.0x Carbon intensity² Number of stocks ROIC Net Debt / EBITDA 7yr FCF growth Free cash flow yield¹ EV to EBIT Quality Growt
Slide 13: Well positioned for the future
Well positioned for the future Sustainability through innovation Exposure to key long-term themes R&D as a % of sales 6.9% Internet & cloud computing Data & 3.5x digitalisation more spending on R&D Payments & 1.9% Fintech Nutrition, health & beauty Climate change No utility, energy or resource stock
Slide 14: SA bonds complement high quality global equity holdings
SA bonds complement high quality global equity holdings Government Coporate ‒ Duration: 6.1 years ILB ILB 11.4% 1.4% ‒ Average yield: 11.4% p.a. ‒ Compelling real returns ‒ Provides superior returns to cash Government Fixed 87.2% Source: Ninety One as at 31 March 2020 15
Slide 15: How much money can we lose in bonds?
How much money can we lose in bonds? Return over one year after a change in the SA 10 year bond yield SA Bonds 13.0% 12.0% 11.0% yield 10.0% 9.0% Capital loss -11.0% Capital gain 13.0% Coupon received 11.3% Coupon received 11.3% Total return 0.3% 5.6% Total return 17.5% Total return 24.3% 16
Slide 16: Ninety One Opportunity Fund Top equities
Ninety One Opportunity Fund Top 10 equities as at 31 March 2020 Top 10 stocks % of fund British American Tobacco 4.2% Assore 3.7% Visa 3.1% Naspers 2.7% Richemont 2.7% Microsoft 2.2% Mondi 2.1% Santam 2.1% Moody’s 1.9% Versign 1.8% Total 26.5% This is not a buy or sell recommendation of any particul
Slide 17: Positioning for the future
Positioning for the future Range of expected annual returns for current holdings over five years 16% 15% 15% 14% 13% 13% 12% 5 year CPI + 6% p.a. 10% 10% 9% 8% 6% 6% 6% 4% 4% 4% 4% 2% 2% 0% 0% 0% Global Equity SA Bonds SA Equity SA Property SA Cash Global Bonds USD Cash Source: Ninety One as at 24 A
Slide 18: Important information
Important information All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such i
Slide 19: Thank you
Thank you
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