Staude Capital Global Value Fund Ltd · ASX:GVF
Staude Capital Global Value Fund — Global Value Fund — Investor Presentation (November 2015)
24 slides from Staude Capital Global Value Fund's investor presentation, Nov 17, 2015
Slide 1: Global Value Fund
For personal use only www.globalvaluefund.com.au
Slide 2: Disclaimer
Disclaimer For personal use only 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)
Slide 3: Agenda
Agenda: For personal use only 1. Key issues driving global financial markets 2. The Global Value Fund 3. Managing risk at the Global Value Fund 4. Investment portfolio update 5. Performance year-to-date 1
Slide 4: Key issues driving global financial markets
For personal use only 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 For personal use only The US$ bull QE 2 is coming Fed set to lift market has in Europe interest rates further to run The US is Risk of a hard RBA to cut approaching full landing in China further employment We believe financial markets are pricing
Slide 6: The second page stories that we are following
The second page stories that we are following For personal use only Emerging Coming impact The forgotten markets of Central Bank risk of inflation reverting to old policy stereotypes divergence China as a Quantitative Prolonged A$ competitive Easing has weakness may threat - exporting worked in US b
Slide 7: The Global Value Fund
For personal use only 2. The Global Value Fund 5
Slide 8: The Global Value Fund
The Global Value Fund For personal use only 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; comparab
Slide 9: Managing risk at the Global Value Fund
For personal use only 3. Managing risk at the Global Value Fund 7
Slide 10: Understanding risk in financial markets
Understanding risk in financial markets For personal use only Returns and realised volatility1 - not all returns are equal 80% Wesfarmers 60% Cochlear 40% Assessing risk is Total return2 20% as important as 0% assessing returns -20% -40% Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14
Slide 11: Comparing risk across asset classes and investments
Comparing risk across asset classes and investments For personal use only Asset class volatility1,2,3,4 25% 20% Higher risks demand higher 15% return Volatility expectations 10% 5% 0% US US High Yield S&P500 TR ASX 200 TR MSCI S&P GSCI Investment Bond Index Index Index Emerging Index grade Bond Mark
Slide 12: The Global Value Fund proposition
The Global Value Fund proposition For personal use only Volatility of selected ASX Global LICs1,2,3,4 16% 14% 12% We seek to generate equity Annualised Volatility 10% market like returns 8% but with a 6% significantly lower 4% risk profile 2% 0% GVF modelled GVF PMC TGG PGF MFF 1 Where available, mo
Slide 13: Global Value Fund risk models
Global Value Fund risk models For personal use only Value at Risk (VaR)1,3 VaR Weekly loss % 2 Confidence level GVF A$ MSCI AC World Index A$ Managing risk is a 99% -1.3% -3.2% key part of our investment 95% -1.1% -2.0% process 50 GVF 40 MSCI AC World TR Index 30 20 1 Assumes normal distributions 10
Slide 14: Why risk measurement is not risk management
Why risk measurement is not risk management For personal use only Euro versus Swiss Franc exchange rate1 1.1 1.0 Risk management FX rate 0.9 is both a quantitative and a 0.8 qualitative process 0.7 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 14% 13% 12% Annualised volatility2,3 10
Slide 15: Investment portfolio update
For personal use only 4. Investment portfolio update 13
Slide 16: Investment Portfolio
Investment Portfolio1 For personal use only There are inherent benefits in running a diversified portfolio over time 1 As at the 30th September 2015 14
Slide 17: Top Five Holdings
Top Five Holdings For personal use only 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%. Following shareholder pressure, the portfolio of Chinese equiti
Slide 18: Case Study: Capturing value in an out-of-favour sector
Case Study: Capturing value in an out-of-favour sector Opportunities in deeply discounted emerging market debt funds For personal use only Fixed Income CEFs Global High Income Fund (GHI) MS Emerging Market Debt Fund (MSD) US-listed closed-end fund investing in local and US$ US-listed closed-end fund
Slide 19: Performance year-to-date
For personal use only 5. Performance year-to-date 17
Slide 20: Investment portfolio return
Investment portfolio1 return For personal use only Discount capture strategy year-to-date The fund holds a diversified portfolio of global assets Discount capture represents manager outperformance 1 Investment portfolio return excludes all fees, expenses, taxes and the impact from option exercises.
Slide 21: Dividend Guidance
Dividend Guidance For personal use only FY2015 dividend paid The Company recently paid its first fully franked dividend of 2.0 cents per share. The Board Interim dividend for FY2016 understands the The Board currently anticipates being able to announce an interim fully franked dividend with the rele
Slide 22: Capital Structure
Capital Structure For personal use only Outstanding shares & options1 Shares outstanding (GVF): 72,855,991 Options outstanding (GVFO): 50,830,234 Options are Option terms listed on the ASX Exercise price: $1.00 under the code Options are exercisable at any time until the 17th March 2016 GVFO Option
Slide 23: Company Details
Global Value Fund Limited For personal use only 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
Slide 24: Further information
For personal use only statement? Further information Landline (UK): +44 20 7087 7053 Mobile (Australia): 0423 428 972 miles.staude@globalvaluefund.com.au www.globalvaluefund.com.au
Global Value Fund — Investor Presentation (November 2015) on 6ix