Hansa Investment Company Ltd · LSE:HAN
Hansa Investment — Investor Presentation (July 2023)
48 slides from Hansa Investment's investor presentation, July 2023
Slide 1: Shareholder Presentation July 2023
Shareholder Presentation July 2023 1
Slide 2: Mission Statement
Hansa Investment Company Limited Mission Statement Who we are: We are globally diversified, multi-asset class investors who seek to identify compelling investment opportunities in both long-only funds, hedge funds, direct global equities and private assets. We operate without being constrained by be
Slide 3: Who We Are
Who We Are 3
Slide 4: Timeline
Hansa Investment Company Limited Hansa timeline Rea Brothers acquire the management of a number of Finsbury Trust becomes invesment companies, including Hansa Trust Scottish & Mercantile Rea Brothers purchases 58% of Hansa Trust Ocean Wilsons Holdings becomes Hansa Limited on behalf of its clients I
Slide 5: Corporate Structure
Hansa Investment Company Limited Corporate Structure Hansa Investment Company Limited 26.45% of OWHL is held by HICL 100% Ocean Wilsons Fund and Direct Holdings Limited Equity Holdings Managed by 100% Hansa Capital Partners LLP 56.52% of Wilson Sons is owned by OWHL Ocean Wilsons 43.48% (Investments
Slide 6: Ocean Wilsons Holdings
Hansa Investment Company Limited Ocean Wilsons Holdings 56.52% 43.48% Cargo Offshore Consolidation Bases Ocean Wilsons Holdings is a Bermudian investment holding company whose main assets are a controlling interest in Wilsons Sons and an international investment portfolio, both run with a long-term
Slide 7: Strategic Review
Hansa Investment Company Limited Strategic Review 30th June 2023 Description Portfolio January 2014 Weight Core Regional Core Regional exposure based on the output 44.6% Description Portfolio of the Hansa House View. Weight UK Special situation UK equities 65% Thematic Thematic Growth sectors
Slide 8: Portfolio Allocation as at 30th June 2023
Hansa Investment Company Limited Portfolio Allocation as at 30th June 2023 50.0% Frontier Markets 45.0% Global Emerging Markets 40.0% Asia Pacific ex Japan 35.0% Global Developed 30.0% Europe Japan 25.0% Diversifying Hedge North America Funds - Other 20.0% Wilson Sons Global Bonds 15.0% Equity Marke
Slide 9: Case Study – Core Regional: Beutel Goodman US Value Fund
Hansa Investment Company Limited Case Study – Core Regional: Beutel Goodman US Value Fund • Beutel Goodman is a Toronto based managed with a fundamental value investing philosophy dating back to when they were founded in 1967. • Large-cap US Value Fund based on fundamental analysis and focus on sust
Slide 10: Case Study – Diversifying: Nephila Iron Fund
Hansa Investment Company Limited Case Study – Diversifying: Nephila Iron Fund • A new investment with one of the world’s leading institutional investors in insurance-linked securities who launched their first strategy in 1998. • Catastrophe bonds can provide investors with attractive returns that ar
Slide 11: Case Study – Global Equities: Interactive Brokers
Hansa Investment Company Limited Case Study – Global Equities: Interactive Brokers $100.00 Purchase $90.00 Sale $80.00 • Highly automated electronic broker, operating across 150 $70.00 markets and 33 countries $60.00 • Best customer proposition business – offering lowest costs, best execution and hi
Slide 12: Case Study – Private Equity: GGV Capital
Hansa Investment Company Limited Case Study – Private Equity: GGV Capital • Leading Venture Capital firm founded in 2000. • Dual focus on venture investing in the US and China. • Invests across the technology space in areas such as fintech, SaaS, automation etc. • Fantastic track record. Selection o
Slide 13: Case Study – Strategic: Ocean Wilsons Holdings
Hansa Investment Company Limited Case Study – Strategic: Ocean Wilsons Holdings • Ocean Wilsons Holdings is a Bermudian investment holding company. • Main assets are a controlling interest in Wilsons Sons and an international investment portfolio, both run with a long-term view. • The Oceans holding
Slide 14: Performance
Performance 14
Slide 15: NAV, Share Price and KPI Performance to 30th June 2023
Hansa Investment Company Limited NAV, Share Price and KPI Performance to 30th June 2023 Financial 10 years 15 years Q1 Year 1 Year 3 years (p.a.) 5 years (p.a.) (p.a.) (p.a.) 2022-23 NAV Performance TR 3.0% (3.1%) 5.9% 7.8% 3.6% 5.7% 4.9% NAV Performance ex. OWHL TR (0.1%) (2.7%) 5.2% 4.1% 3.3% 6.0%
Slide 16: Gross time-weighted performance of the different silos
Hansa Investment Company Limited Gross time-weighted performance of the different silos 5 years to 30th June 2023 60.0% 52.0% 49.4% 50.0% 40.0% 37.5% 33.8% 30.0% 30.0% 27.0% 26.0% 24.1% 21.8% 20.0% 20.0% 16.5% 10.0% 0.0% 0.3% -10.0% -20.0% -19.2% -30.0% Core Regional Thematic Core & Global Ocean Div
Slide 17: Holdings by silo (Core Regional, Thematic)
£10,000,000 £20,000,000 £30,000,000 £40,000,000 £50,000,000 £60,000,000 £70,000,000 £80,000,000 £90,000,000 £- Findlay Park American 11,564,272 Pershing Square 6,220,287 BlackRock Strat Equity Hedge 5,452,996 Select Equity Offshore 4,630,285 iShares Core S&P 500 1,835,502 SISF Asian Total Return 1,6
Slide 18: Holdings by silo (Core Regional, Thematic)
£- £20,000,000 £40,000,000 £60,000,000 £80,000,000 £100,000,000 £120,000,000 £140,000,000 £160,000,000 £180,000,000 £200,000,000 Findlay Park American 17,817,514 Select Equity Offshore 10,493,011 BlackRock Strat Equity Hedge 8,185,308 SISF Asian Total Return 5,670,104 Pershing Square 4,297,006 Indus
Slide 19: Performance of less correlated funds
Hansa Investment Company Limited Performance of less correlated funds 1st June 2016 to 30th June 2023 HICL Less MSCI ACWI UK Gilts All UK CPI A basket of lower-correlated funds have been purchased since June 2016. Correlated FM Stocks (May) The performance since has been positive, and has strongly o
Slide 20: Transactions during the Financial Year to Date
Hansa Investment Company Limited Transactions during the Financial Year to Date 30th June 2023 Equity purchases Fund subscriptions Fund Trade Date Cost (£m) Fund Trade Date Cost (£m) Interactive Brokers Group Inc May 0.3 Armistice Capital Offshore Fund Ltd June 6.9 Bergman & Beving April & May 0.3 N
Slide 21: Global Equities – Performance by size of holding
Hansa Investment Company Limited Global Equities – Performance by size of holding at 30th June 2023 1 Year 3 Year Performance Performance Initial Purchase Value % of Total % of Global (or since initial (or since initial Security Name Date (GBP) NAV Equity Silo purchase) purchase) Interactive Brokers
Slide 22: Global Equities Silo as at 30th June 2023
Hansa Investment Company Limited Global Equities Silo as at 30th June 2023 Geographic Exposure by Listing Performance 1 Year to end June 2023 Asia , 7% 25% 22.6% 20% 15% 11.6% Europe , 52% 10% 7.9% US, 41% 5% 0% Hansa Investment Company MSCI ACWI NR (GBP) FTSE All Share Total Return Limited Global E
Slide 23: Macro update – Current risk exposure
Hansa Investment Company Limited Macro update……Current risk exposure (as at 30th June 2023) HICL Assets HICL Assets Ocean Wilsons Holdings Limited (Risk On vs Defensive) (OWHL Split out) Split 400.0 400.0 1100.0 1000.0 350.0 58.8 350.0 63.0 16.7% 900.0 15.6% 300.0 300.0 26.8 7.1% 800.0 70.1% 84.4% 7
Slide 24: Discount
Hansa Investment Company Limited Discount Hansa Investment Company Limited Ord Hansa Investment Company Limited Ord and A combined (relative to AIC overall average discount) and A combined 0% 10% -10% 0% -20% -10% -30% -20% -40% -30% -50% -40% -60% -50% Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-
Slide 25: Macro Environment
Macro Environment 25
Slide 26: Macro Environment – Executive summary
Hansa Investment Company Limited Macro Environment……Executive summary • Markets have experienced a fundamental shift over the past year: • Inflation has rebounded from near zero/deflation to much higher levels. • In response, interest rates have also jumped from near zero levels to higher, historica
Slide 27: Macro Environment – Market performance
Hansa Investment Company Limited Macro Environment……Market performance 10% 5% 0% % Return (GBP) -5% -10% -15% -20% -25% Dark bars represent 3m GBP returns to 31 March 2023 Light bars represent 12m GBP returns to 31 March 2023 27
Slide 28: Macro Environment – Inflation & interest rates
Hansa Investment Company Limited Macro Environment……Inflation & interest rates 25% 7% You’d need to be over 60 to have invested through double digit inflation before… 6% 20% … and over 50 to have invested through inflation rates as high as this. 5% 15% Interest Rates 4% Inflation 10% 3% 5% 2% 0% 1%
Slide 29: Macro Environment – Inflation & interest rates
Hansa Investment Company Limited Macro Environment……Inflation & interest rates Possible paths for inflation 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 US CPI Stickier than expected inflation Inflation settles at 3% …….. the key que
Slide 30: Macro Environment – Global Financial Crisis II?
Hansa Investment Company Limited Macro Environment……Global Financial Crisis II? LDI Crisis 5.0% 28-Sept: BoE Intervention 4.5% UK Gilt Yield 4.0% 3.5% 3.0% 23-Sept: Mini Budget Announcement 2.5% 30-year 10-year ……..the higher rate environment is starting to cause shockwaves throughout the financial
Slide 31: Macro Environment – The next blackhole – Private equity?
Hansa Investment Company Limited Macro Environment……The next blackhole – Private equity? ……..PE has built a model on low rates and copious amounts of liquidity 31
Slide 32: Macro Environment – The next blackhole – Commercial real estate?
Hansa Investment Company Limited Macro Environment……The next blackhole – Commercial real estate? Tightening Loan Standards and Stalling Loan Growth 100 150 % of Banks Reporting Tightening Loan Standards 80 120 Loan Growth (YoY %) 60 90 40 60 20 30 0 0 -20 -30 -40 -60 1990 1992 1994 1996 1998 2000 20
Slide 33: Macro Environment – The next blackhole – Mortgage markets?
Hansa Investment Company Limited Macro Environment……The next blackhole – Mortgage markets? Impact of Higher Interest Rates on UK and US Monthly Mortgate Payments 2,500 US 30-year mortgage rate 2,000 increased from 3.3% to 6.6% Montly Mortgage Payments (£/$) Typical UK mortgage rate rose 1,500from 1.
Slide 34: Macro Environment – Outlook
Hansa Investment Company Limited Macro Environment……Outlook 2022 2023 High and falling, but Rates Low and rising how low? High and falling, but Inflation Low and rising how low? No longer on the Geopolitics Deteriorated rapidly front page, but could return at any time Ok by expected to Mild downturn
Slide 35: Macro Environment – The dollar
Hansa Investment Company Limited Macro Environment……The dollar …..The dollar …..Reserve was a relative currency safe haven at $ vs € vs ¥ time of turmoil US, UK and European Rates 6.0% 5.0% 4.0% 3.0% ……The Fed 2.0% putting up rates earlier 1.0% and faster 0.0% UK Interest Rate European Interest Rate
Slide 36: Macro Environment – The dollar
Hansa Investment Company Limited 1.05 Macro Environment……The dollar 1.00 Euro to Dollar rate 0.95 0.90 …..Many of the reason for 0.85 seeking solace in the $ are 0.80 now diminishing i.e. China 0.75 ZCP ended, Russia/Ukraine 0.70 slipped off the front pages 0.65 0.60 Dec-14 Dec-16 Dec-18 Dec-20 Dec-
Slide 37: Macro Environment – US vs EM
Hansa Investment Company Limited Macro Environment……US vs EM ….EM businesses used to operating in higher rate environments ….EMs looking cheap on a P/E basis ….EM tends to outperform during periods of dollar weakness …..EM companies more prudent than US! 37
Slide 38: Macro Environment – Portfolio positioning
Hansa Investment Company Limited Macro Environment……Portfolio positioning Portfolio for the last 10 years: Portfolio for the future: US Hegemony Rest of world becoming more attractive Growth and quality focus Balance of value, cyclicality, quality and growth Long duration Value becoming more in focu
Slide 39: Portfolio Changes: Defensive holdings
Hansa Investment Company Limited Portfolio Changes: Defensive holdings Defensive Silo Focus 16.0% 14.0% 12.0% Prana Absolute Return Fund Lazard Convertible Global 10.0% Schroder GAIA BlueTrend GAM Systematic Core Macro 8.0% (Cayman) Fund Cash Other 6.0% 4.0% 2.0% 0.0% End 2021 End 2022 ……an increase
Slide 40: Portfolio Changes: Core & Thematic holdings
Hansa Investment Company Limited Portfolio Changes: Core & Thematic holdings 60.0% Core and Thematic Silo Focus iShares Core S&P 500 UCITS ETF 50.0% Schroder ISF Global Recovery BA Beutel Goodman US Value Fund Polar Capital Global Insurance 40.0% Fund iShares MSCI World Energy Sector UCITS ETF iShar
Slide 41: Appendix
Appendix 41
Slide 42: Ocean Wilsons (Investments) Ltd
OCEAN WILSONS (INVESTMENTS) LTD Performance to 31 March 2023 unless stated otherwise ($) 3 years 5 years Q1 2022 1 Year p.a. p.a. OWIL 1.6% -13.8% -6.8% 8.6% 4.4% OWIL (Net) 1.5% -14.7% -7.7% 7.3% 3.2% Performance Benchmark*(i) 2.4% 9.5% 8.0% 8.4% 6.9% 60:40 Composite of MSCI ACWI and Bloomberg Glob
Slide 43: Ocean Wilsons (Investments) Limited – Top holdings
Ocean Wilsons (Investments) Limited Top 30 holdings as at 31st December 2022 Market Value US$000 %of NAV Primary Focus Findlay Park American Fund 24,154 8.2 US Equities - Long Only BlackRock Strategic Equity Hedge Fund 12,920 4.4 Europe Equities - Hedge Select Equity Offshore, Ltd 10,597 3.6 US Equi
Slide 44: Hansa Capital Partners – The Team
Hansa Capital Partners The Team William Salomon Chairman, Senior Partner (40yrs/23yrs) Alec Letchfield Chief Investment Officer, Partner (30yrs/10yrs) Christopher Townsend Investment Director (23yrs/13yrs) William Lewis George Clifton-Brown Henry Millhouse Robert Royle Research Analyst Research Anal
Slide 45: Team Biographies
Hansa Capital Partners Team Biographies William Salomon Chairman, Senior Partner William Salomon has extensive knowledge of all aspects of private client and strategic fund investment business. He was responsible for developing Finsbury Asset Management and the Finsbury range of funds based on the c
Slide 46: Team Biographies
Hansa Capital Partners Team Biographies Christopher Townsend Investment Director, Private Equity Christopher is a qualified solicitor. He has an MA from Peterhouse, Cambridge and was awarded an MBA from London Business School. He is currently investment director at Hansa Capital and a non-executive
Slide 47: Team Biographies
Hansa Capital Partners Team Biographies William Lewis Research Analyst Will joined Hansa Capital Partners LLP in 2012, after four years on the investment team at what was then Lord North Street, now Sandaire Investment Office, a London-based private investment office. He graduated from the Universit
Slide 48: Important Notice
IMPORTANT NOTICE It is very important that you consider this disclaimer and warning before using the information provided within this presentation pack, as it explains certain regulatory and legal restrictions applicable to any investment services provided, the use and distribution of information in
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