Staude Capital Global Value Fund Ltd · ASX:GVF
Staude Capital Global Value Fund — Global Value Fund — Investor Presentation (September 2019)
35 slides from Staude Capital Global Value Fund's investor presentation, Oct 28, 2019
Slide 1: Global Value Fund, 30 September 2019
For personal use only 30th September 2019 www.globalvaluefund.com.au
Slide 2: Agenda
Agenda For personal use only 1. Introduction – The Global Value Fund 2. What are markets pricing in? What are the second page stories? 3. The ‘Challenge’ 4. Case studies 5. Appendices 6. Disclaimer 2
Slide 3: 1. Introduction - The Global Value Fund
For personal use only 1. Introduction - The Global Value Fund (ASX: GVF) 3
Slide 4: The Global Value Fund
The Global Value Fund For personal use only A focus on listed securities which Our core discount are undervalued relative to a defined and observable asset value capture strategy • A discount to “break-up” value We operate on a targets returns global stage; investing around comparable with global Cl
Slide 5: December quarter market sell-off
December quarter market sell-off Draw-down of GVF and selected market indices to Dec market low6 For personal use only GVF (A$)1 ASX (A$)2 MSCI AC (A$)3 S&P Growth (US$)4 ‘FANG’ (US$)5 0% -2% -4% -6% 1 GVF investment portfolio. -8% 2 S&P/ASX 200 Index. 3 MSCI All Country World Index in -10% A$ terms
Slide 6: The Global Value Fund at a glance
The Global Value Fund at a glance ASX code: GVF For personal use only Objective 10.5% IPO Price: $1.00 To generate equity market Share Price: $1.0151 like returns when measured No. Shares: 148M over time, but to do so with Annualised adjusted NTA significantly less risk than a Mkt Cap: $150M return
Slide 7: GVF dividend & option price history
GVF dividend & option price history Declared grossed up dividends and option VWAP1 since IPO2 For personal use only 4.29 4.29 4.14 4.10 4.10 4.0 3.88 3.83 3.83 3.83 Current Board 3.5 guidance3 is for FY2020 fully franked 3.0 2.86 dividends of 5.8 cents per share Cents per Share 2.5 1 Data source: Th
Slide 8: 2. What are markets pricing in?
For personal use only 2. What are markets pricing in? What are the second page stories? 8
Slide 9: Markets pricing in a growth slow-down
Markets pricing in a growth slow-down Global PMIs1. Global GDP Growth2 For personal use only 60 Purchasing Managers' Indices (PMI) 58 Economic outlook 56 has deteriorated in 54 most developed 52 countries 1 Data source: Bloomberg LP and 50 Staude Capital as of 30th Europe Germany UK US September 201
Slide 10: Markets have rallied on bad economic news
Markets have rallied on bad economic news Bad economic news as ‘good’ market news only lasts so long For personal use only 2300 150 2200 145 Markets have 2100 rallied in the face 140 2000 of deteriorating 135 growth, and falling 1900 earnings estimates 1800 MSCI AC World Index (LHS) 130 Data source:
Slide 11: Monetary policy has a saturation point
Monetary policy has a saturation point Central bank reversal rates1. Aggregate negative yielding debt2 For personal use only 2.0% 1.5% Current level Median reversal rate estimate 1.0% Central banks have Base rate 0.5% limited scope to cut 0.0% rates if faced with a -0.5% recession… 1 An economy’s re
Slide 12: 3. The 'Challenge'
For personal use only 3. The ‘Challenge’ (and a possible solution…) 12
Slide 13: Australia… welcome to the club
Australia… welcome to the club Australian interest rates have moved towards the zero bound For personal use only 7% 6% ‘We are prepared to 5% do unconventional things if 4% circumstances warranted it. I hope 3% we can avoid that’ RBA Governor 2% Philip Lowe. Data source: Bloomberg LP 30th 1% Septemb
Slide 14: How did we get here?
How did we get here? The RBA is losing the fight against inflation For personal use only Labour force underutilisation (seasonally adjusted) 18% 16% 14% 12% 10% 8% 6% While 4% unemployment 2% Unemployed % Underemployed % Underutilised % remains low, 0% Sep 78 Sep 83 Sep 88 Sep 93 Sep 98 Sep 03 Sep 0
Slide 15: The Challenge
The Challenge Expected returns have fallen, investment risks have risen For personal use only Returns Risk 15
Slide 16: A possible solution?
A possible solution? GVF - global share markets upside vs. downside participation1 For personal use only GVF upside participation GVF downside participation Since IPO, GVF 70% has participated 60% 50% in 63%1 of the 40% upside in global 30% share markets, 20% but only 40%1 of 10% 0% market declines
Slide 17: Investment Portfolio
Investment Portfolio1,2 For personal use only Underlying Asset Classes Underlying Currency Exposures EUR Listed Debt 16% Listed Instruments Equity 29% 34% USD 44% AUD Listed Private 30% Other Equity 8% 13% Listed Hedge Other Funds 10% 16% Diversification across asset classes lowers portfolio level r
Slide 18: Focus on Risk Management
Focus on Risk Management For personal use only GVF monthly draw downs relative to global share markets1 1% MSCI AC A$2 down months since GVF3 IPO 0% Aug 19 Sep 18 May 18 -1% Mar 18 Apr 15 Oct 16 Jul 17 Feb 18 Sep 16 Feb 16 Dec 17 -2% Sep 15 Nov 15 Jan 17 Nov 18 Dec 15 Jun 17 -3% Jan 16 Jun 15 Jun 16
Slide 19: Focus on Risk Management
Focus on Risk Management For personal use only Gross return by investment1 $4.5 $4.0 $3.5 $3.0 $2.5 Total return1 by investment since GVF launch – A$M $2.0 $1.5 $1.0 $0.5 $0.0 -$0.5 -$1.0 -$1.5 -$2.0 -$2.5 -$3.0 -$3.5 -$4.0 -$4.5 Our investment philosophy places a high importance on controlling for
Slide 20: 4. Case studies
For personal use only 4. Case studies The case studies cited in this document are included for illustration purposes only and do not purport to represent all investments made by the Global Value Fund. 20
Slide 21: Case Study: Ranger Direct Lending ZDP
Case Study: Ranger Direct Lending ZDP Corporate Activism as a debt investor For personal use only Description Investment Rationale Ranger Direct Lending ZDP (RDLZ): Zero dividend There has been a rapid growth in the direct lending financing preference share (ZDP), effectively a zero coupon bond, iss
Slide 22: Case Study: Third Point Offshore Investors
Case Study: Third Point Offshore Investors Board Engagement: Unacceptable discount For personal use only Description Current proposition Third Point Offshore Investors (TPOU): London-listed In consultation with shareholders, a new Chairman was closed-end fund (CEF) that acts as a feeder fund into a
Slide 23: 5. Appendices
For personal use only 5. Appendices 23
Slide 24: GVF investment returns since IPO
GVF investment returns since IPO Attributed by Market1, Currency2 and Returns3 For personal use only 70.0% Currency Market Returns 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% - Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Dec 14 Dec 16 Dec 17 Dec 18 Dec 15 Jun 14 Mar 15 Jun 15 Mar 16 Jun 16 Mar 17 Jun 17 Mar 1
Slide 25: Discounts across the LIC sector
Discounts across the LIC sector Federal election franking debate weighed heavily on the LIC sector For personal use only Data source: Bloomberg LP and Staude Capital as of 30 th September 2019. 25 Please note that past performance is not indicative of future returns
Slide 26: Case Study: Blue Sky Alternative Access Fund
Case Study: Blue Sky Alternative Access Fund Corporate action: unlocking substantial unrealised value For personal use only Description Current proposition Blue Sky Alternatives Access Fund (BAF): Portfolio of At today’s price, if we strip out the water fund assets, cash and agricultural, alternativ
Slide 27: Mirabella Financial Services
Mirabella Financial Services Best-in-class compliance and regulatory solution For personal use only ▪ One of the largest regulatory hosts in Europe with assets under management of over US$10Bn¹. ▪ Mirabella Financial Services LLP is the investment manager of Dedicated the Global Value Fund and has s
Slide 28: Organisational Chart
For personal use only Organisational Chart Mirabella Financial Services Regulatory Host Miles Staude Emma Davidson Portfolio Manager & Director Investor Relations & Director Robert Fairbairn Emma Beall James Dow Middle Office & Support Investment Managers 28
Slide 29: Biographies
Biographies For personal use only Miles Staude – Portfolio Manager & Director Miles has over seventeen years of experience in trading, investment management and research, covering a wide range of financial markets. He is the Portfolio Manager of the Global Value Fund and serves as a Director on the
Slide 30: Biographies
Biographies For personal use only Rob Fairbairn – Investment Manager Under Mirabella’s regulatory license, Robert is a member of the GVF portfolio management team. Prior to joining Staude Capital, he performed a variety of roles over a period of eight years at Metage Capital, including trading, rese
Slide 31: Company Details
Global Value Fund Limited For personal use only Company Details Structure Listed Investment Company Incorporated Australia Service Providers Investment Manager Mirabella Financial Services Portfolio Manager Miles Staude Staude Capital Limited1 Head of Corporate Affairs Emma Davidson Registrar Boardr
Slide 32: 6. Disclaimer
For personal use only 6. Disclaimer 32
Slide 33: Disclaimer
Disclaimer For personal use only This presentation is provided by Staude Capital Limited, a company incorporated in England and Wales. Staude Capital Limited is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. Mirabella Fina
Slide 34: Disclaimer continued
Disclaimer continued With regards to the truth, accuracy or completeness of any statement, opinion, forecast, information or other For personal use only matter (whether express or implied) contained in this presentation or as to any other matter concerning them. To the full extent permitted by law,
Slide 35: For personal use only
For personal use only statement? Landline (UK): +44 20 3874 2243 miles.staude@globalvaluefund.com.au Mobile (Australia): 0423 428 972 emma.davidson@globalvaluefund.com.au Mobile (Australia): 0401 299 885 ir@globalvaluefund.com.au www.globalvaluefund.com.au
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