EDM Strategy Sicav

EDM Strategy Sicav

January 2012

EDM Strategy SicavEuropean Equities

This document is reserved for professional investors only as defined by the MIFID

EDM Strategy Sicav Index

1- Fund´s Performance

2- Investment Philosophy

3- Portfolio

4- Fund Managers

2

4- Fund Managers

5- Performance over the crisis

6- European Equities

7- About EDM

8- Summary

Performance

3

Performance

Higher return and lower volatility

EDM Strategy Sicav Performance

4All EDM return data are expressed in euros and are stated net of expenses and fees.

Consistent Alpha generation in both bear and bull markets

-10%

10%

30%

50%EDM Strategy


5

Stoxx 50 has been selected due to its high concentration (50weights) in European Equities,including relevant countries such as Switzerland and theUK.

-70%

-50%

-30%

-10%

1999

2000

2001

2002

2002

2003

2004

2005

2005

2006

2007

2008

2008

2009

2010

2011

Stoxx 50

Beating all the main european indices


80

90

100

110

120

130

6

30

40

50

60

70

80

ene-0

0

ene-0

1

ene-0

2

ene-0

3

ene-0

4

ene-0

5

ene-0

6

ene-0

7

ene-0

8

ene-0

9

ene-1

0

ene-1

1

EDM STRATEGY EURO STOXX 50 STOXX 50 MSCI Europe Local

EDM Strategy SICAV

Ranking 2011: 32 / 345 EU Equity Funds

Ranking Allfunds Bank:

Rating Morningstar:

Ratings & Ranking

Performance

7

Rating Morningstar:

Rating Interactive:

Rating Lipper:

Investment philosophy

8


• Long-only traditional investment style (bottom-up)

• Stock picking. No benchmarking (low overlapping against its benchmark)

• Long-term investment horizon (5 years on average)

• Low turnover (15% average for the last 6 years)

EDM Strategy Sicav

Portfolio construction


9

• Low turnover (15% average for the last 6 years)

•High liquidity (92% of the portfolio can be sold within one trading day)

• Restricted investment universe: only 100 companies globally

• Concentrated portfolio, maximum 30 companies

•Always fully equity invested (competition among stocks)

• European currency diversification (EUR, GBP, CHF, DKK)

• 50% currency hedged (we do not predict currency fluctuations)

• Focus on understandable and predictable businesses at reasonable prices

• Management quality & integrity are crucial for us

• Demanding criteria: High quality of the business (ROE = 31%)

• Sustainable EPS growth (11%)

EDM Strategy Sicav

Stock picking methodology


10

• Sustainable EPS growth (11%)

• Low debt balance-sheet (Net Debt/EBITDA = 0,9)

• Recurrent and solid cash-flows

• Companies focused on emerging markets to generate growth (1/3 Sales)

EDM Strategy Sicav

Stock picking methodology


• Following certain long-term Macro-trends:

�Western live style globalization�Outsourcing is increasing� “Low Cost” trend� Population agingIncreasing emerging markets exposure

11

� Increasing emerging markets exposure

• Lack of sectors that are not transparent in terms of profits:

� Banking & Insurance

� Cyclical sectors

� Regulated tariffs

� Commodities

Portfolio

12

Portfolio

EDM Strategy SICAV

Capita Group 6,49%

Roche 6,33%

Danone 6,13%

SAP 6,05%

Tesco 5,97%

Grifols 4,38%

Brenntag 4,13%

Eutelsat 3,97%

BME 3,94%

Wincor Nixdorf 3,77%

PORTFOLIO TOP HOLDINGS

31-oct-11 (1) (2) (3) (3) (4) (5)2011-2016 Dividend

ROE EPS Growth P/E 2011 P/E 2012 PEG Yield

ROCHE HLDG-GENUS 103% 7,5% 10,5 10,4 1,40 4,6%

STRAUMANN HLDG-R 20% 15,0% 19,8 19,8 1,32 1,2%

TELEFONICA 44% 4,0% 9,5 9,2 2,39 9,1%

TEMENOS GROU-REG 16% 15,5% 13,5 12,7 0,87 0,0%

CHRISTIAN DIOR 18% 9,0% 14,7 12,8 1,64 2,1%

EUTELSAT COMMUNI 22% 10,0% 21,8 15,6 2,18 2,5%

DANONE 17% 10,0% 16,7 15,6 1,67 2,6%

AIR LIQUIDE SA 17% 11,0% 17,2 16,2 1,56 2,5%

ALSTOM 11% 13,0% 6,5 7,9 0,50 5,2%

BRENNTAG AG 16% 12,0% 12,0 11,3 1,00 1,9%

GRIFOLS SA 18% 15,0% 21,1 15,1 1,40 0,0%

INDITEX 30% 10,0% 21,2 18,8 2,12 2,4%

BOLSAS Y MERCADO 34% 8,0% 11,0 10,9 1,37 9,5%

ESSILOR INTL 16% 15,0% 21,0 18,8 1,40 1,6%

Portfolio

13

Wincor Nixdorf 3,77%ESSILOR INTL 16% 15,0% 21,0 18,8 1,40 1,6%

COLOPLAST-B 46% 15,0% 15,8 14,2 1,05 1,3%

NOVO NORDISK-B 40% 11,5% 19,9 17,4 1,73 1,7%

SAP AG 20% 11,5% 16,3 14,5 1,41 1,4%

SODEXO 16% 10,0% 17,8 15,5 1,78 2,6%

WINCOR NIXDORF 31% 10,0% 11,7 10,8 1,17 4,2%

CAPITA GROUP PLC 49% 10,9% 14,8 13,5 1,36 3,2%

INTERTEK GROUP 33% 10,0% 19,7 16,7 1,97 1,6%

HOMESERVE PLC 29% 13,0% 12,3 11,2 0,95 3,3%

AGGREKO PLC 30% 11,0% 19,9 17,6 1,81 1,3%

RECKITT BENCKISE 35% 10,5% 13,2 13,0 1,26 4,2%

TALKTALK TEL 9% 10,0% 8,1 7,5 0,81 4,8%

TESCO PLC 17% 10,0% 11,2 10,2 1,12 4,1%

LINDT & SPRUE-PC 15% 10,0% 25,8 23,6 2,58 1,7%

TOTAL 31% 11,0% 14,0 12,9 1,27 3,0%

Source: Bloomberg

(1) Profit after taxes / Equity

(2) EDM estimates for 5 years CAGR

(3) EDM & Bloomberg data

(4) P/E 2011 / (2)

(5) Dividend/Price

Sector

EDM Strategy SICAV

Market Cap

Portfolio

Pharma

16%

Specialised

industries

Retail

10%

IT

9%

Food

9%

Consumer goods

4%

Chemicals

Distribution

8%

Medical Devices

11%

Micro

10%

Giant

29%

Small

5%

Mid

36% Large

14

Country Currency

Services

22%

industries

11%36% Large

20%

France

23%Spain

16%

Denmark

8%

Germany

14%

Switzerland

15%

Great Britain

28%

CHF

14%

EUR

56%

GBP

23%

DKK

7%

Sustainable Earnings Growth…EPS Growth

-20%

-10%

0%

10%

20%

30%

40%

50%

∆∆∆∆ EPS EDM Strategy: +11,4% CAGR∆∆∆∆ EPS DJ Stoxx 600: + 5,3% CAGR

EDM Strategy SICAV Portfolio

15

… should be rewardedP/E EDM STRATEGY (12m forward)

10

12

14

16

18

20

22

24

26

28

30

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011e

-30%

2002 2003 2004 2005 2006 2007 2008 2009 2010 e 2011 e

EDM Strategy DJ Stoxx 600

Performance over the crisis period

16


EDM Strategy vs. Stoxx50 since the beginning of the crisis

EDM Strategy SICAV

-20%

-10%

0%

10%

-38% +45%

EDM Strategy

-10%


17

-60%

-50%

-40%

-30%

-20%

sep-

07

mar

-08

sep-

08

mar

-09

sep-

09

mar

-10

sep-

10

mar

-11

sep-

11

+34%

-58% Stoxx 50 - 43%

EDM Strategy SICAV

Higher return...


EDM Strategy vs. Stoxx50 since the beginning of the crisis

18

... and lower volatility

EDM Strategy vs. its Peers since the beginning of the crisis

EDM Strategy MSCI Europe Growth Index European Equity Growth Big Cap (Category)

EDM Strategy SICAV Performance over the crisis period

19

Source: Morningstar

EDM

EDM

EDM

EDM

EDM

EDM Strategy vs. Competitors since the beginning of the crisis

EDM Strategy SICAV Performance over the crisis period

20

EDM

EDM

EDM EDM EDM

Fund Managers

21

Fund Managers

RicardoVidal, 42. CO-CIOFundManager of EDM Strategy and Consumption Sector Specialist

Holds an MBA from ESADE University (Barcelona). Worked at Banco Vitalicio (InsuranceCompany) and Gesindex SGIIC (Financial Services) from 1993 until 1997. Holds the Certified ofEuropean Financial Analyst (CEFA). Joined EDM in July 1997.

AdolfoMonclús, 38. CO-CIO.Retail, Business Services and TMT´s Sector Specialist for EDM Strategy

EDM Strategy Sicav Fund Managers

22

Graduated in Business Administration by the Universitat Internacional de Catalunya & inEconomics Finance by Bentley College (USA). Holds an International MBA from Instituto deEmpresa (Madrid). Worked at Argentaria and BBVA in the Mid-Corporate Banking area. JoinedEDM in July 2005 after finishing his MBA.

Beatriz López, 34.FundManager of EDM Strategy andMedical, Food and Insurance Specialist

Graduated in Economics from Universitat Pompeu Fabra (UPF) in 1999, followed by a MastersDegree in Finance from CEMFI (Bank of Spain) in 2001. Holds the Chartered AlternativeInvestment Analyst (CAIA) by the CAIA Association. She started her career at Banco Sabadellwhere she became Senior EquityAnalyst. Joined EDM in 2007.

JuanJuanJuanJuan GrauGrauGrauGrau, 66.

SpanishSpanishSpanishSpanish StocksStocksStocksStocks SpecialistSpecialistSpecialistSpecialist forforforfor EDMEDMEDMEDM StrategyStrategyStrategyStrategy

He worked in several industrial companies as CFO during 16years. Joined EDM in 1989 where he has always worked onInvestment Management as a fund manager. Holds adegree in Economics and a PDE IESE Business School.Manager of EDM Inversion since 1989.

GonzaloGonzaloGonzaloGonzalo CuadradoCuadradoCuadradoCuadrado, 41.

Pharmacy,Pharmacy,Pharmacy,Pharmacy, constructionconstructionconstructionconstruction andandandand infraestructureinfraestructureinfraestructureinfraestructureSectorSectorSectorSector SpecialistSpecialistSpecialistSpecialist forforforfor EDMEDMEDMEDM StrategyStrategyStrategyStrategy

Graduated in Economy by the University ofBarcelona (UB). Holds a Master in Finances by theIEAF, the CEFA and CIIA. Worked as a fundmanager in Caixa Penedès. Analyst and portfoliomanager in EDM since 2004.

EDM Strategy Sicav Fund Managers

23

AlbertoAlbertoAlbertoAlberto FayosFayosFayosFayos, 39.

SpecialisedSpecialisedSpecialisedSpecialised industriesindustriesindustriesindustries andandandand FinancialsFinancialsFinancialsFinancials SectorSectorSectorSector SpecialistSpecialistSpecialistSpecialistforforforfor EDMEDMEDMEDM StrategyStrategyStrategyStrategy

Holds a Bachelor in Actuarial and Finances and a Degreein Statistics from University of Barcelona (UB) . Holds theCEFA Certified. Worked at Gaesco Gestión SCIIC from1997 until 2005. Worked at Banc Sabadell Gestión SGIICfrom 2006 until 2009. Joined EDM in March 2009 as anAnalyst and Portfolio Manager.

EDM Group

•No distinction between analyst & portfolio manager

• Collective discussion. Individual decision

• Investment Team over the last 6 years: Non-existent staff turnover

European Equities

24

European Equities

EDM Strategy Sicav

European Equities valuation reaching 30 years low

European Equities

P/E

25

EDM Strategy Sicav

Divergences between profits and prices during 2010 & 2011

European Equities

26

About EDM

27

About EDM

• 23 Years´s experience: founded in 1989

• Leading independent manager in Spain: AUM € 1.2 bn

• Independent: - Fully owned by the Group´s Management

- Focused exclusively on Asset Management

EDM Strategy Sicav About EDM

28

1163 M€

0

100

200

300

400

500

600

700

800

900

1.000

1.100

1.200

1.300

1.98

91.99

01.99

11.99

21.99

31.99

41.99

51.99

61.99

71.99

81.99

92.00

02.00

12.00

22.00

32.00

42.00

52.00

62.00

72.00

82.00

92.01

02.01

1

AUM

Regulated companies in three European domiciles

EDM HOLDING, S.A.

EDM SERVICIOS EDM GESTIÓN EDM FUND EDM ASSET

100%

EDM Strategy Sicav About EDM

29

EDM SERVICIOS FINANCIEROS

S.A. AV

EDM GESTIÓN S.A. SGIIC

EDM FUND MANAGEMENT, S.A.

EDM ASSET MANAGEMENT, Ltd

Discretionary Domestic Funds International Fund of Management & SICAVs SICAVs Hedge Funds

Spain

Spain

Luxembourg

Ireland

Company

Country

Service

Spanish EquitiesEDM Inversion FI

Credit Short Duration (Investment Grade)EDM Ahorro FI

EDM Strategy Sicav

EDM performance with other asset types

About EDM

30All EDM return data are expressed in euros and are stated net of expenses and fees.

Summary

31

Summary

EDM Strategy Sicav

10 reasons for investing in EDM Strategy Sicav

1. Consistent returns above benchmark (+4% annual outperformance)

2. Very small volatility for an equity fund (-4% annual bellow benchmark)

3. Excellent relative performance throughout the financial crisis (2007-2011)

4. Stable investment philosophy all over 23 years

5. Unique and tested investment process developed by an experiencedmanagement team

Summary

32

5. Unique and tested investment process developed by an experiencedmanagement team

6. Very high quality (ROE) and liquid concentrated portfolio

7. Defensive strategy: focus on "ensured growth" without leveraged or cyclical sectors

8. Portfolio valuation at historial minimum levels

9. Poor overlapping and low correlation with other fund managers

10. Complementarywith other equity styles

EDM Strategy Sicav Summary

33

www.edm.esIgnacio PedrosaHead of Investor Relations+34 636814186+34 [email protected]

LEGAL NOTICE

1) This information represents disclosure by EDM and is intended merely to inform those to whom it is addressed in compliance with the code of cunsuct applying to all investment services in Spain. For this reason efforts have been made to ensure that it is sufficient and understandable to anybody likely to receive it.

Given that the information may refer to or include separate additional documentation, the recipient is invited to request this from EDM.

If, within the body of information in this notification, there should be any offer regarding products, financial instruments or services, the recipients thereof also have at their disposition supplementary or additional If, within the body of information in this notification, there should be any offer regarding products, financial instruments or services, the recipients thereof also have at their disposition supplementary or additional documentation which will enable them to authorise all the terms and conditions pertaining to the offer of interest to them.

2) EDM is a securities broker registered in Spain (Avda. Diagonal 399 3º 1ª, 08008 Barcelona) and is authorised to provide investment services with regard to securities and financial instruments for clients, in relation to whom it is subject to the supervision of the Comisión Nacional del Mercado de Valores (National Securities Market Commission) (CNMV, Paseo de la Castellana 19, 28046 Madrid), where it is registered under number 139. The broker is a member of the Fondo de Garantía de Inversiones (FOGAIN, the Investment Guarantee Fund).

3) The recipients of this information should bear in mind that any results or data provided may be subject to fees, commission, taxes, expenses or duties, which could lead to a reduction in the gross return, which will depend on the particular nature of each case.

4) It is here left on record that the instruments described in this information are subject to the impact of various common causes, such as:

i- Alterations to the markets due to unforeseen circumstances

i- Liquidity risks and others which affect the progress of the investment.

5) Within this information here figures appear that refer to past returns for the products mentioned. It is obvious that such information should be used as a reference and as valid background data to reach one’s own conclusions, but under no circumstances should it be employed as an indicator guaranteeing future performance.

By the same token, the information contained that might simulate future trends for any product and its performance must, for identical reasons as those cited for past data, be considered as a valid reference to reach one’s own conclusions but in no way seen as a guarantee of returns that will be obtained.

6) Within this documentation there may be figures based on currencies other than those used by recipients hereof. For this reason consideration should be given to any possible change upwards or downwards in the value of the currency and how this affects the results for the products or instruments proposed.

This document is reserved for professional investors only as defined by theMIFID

Date post:	20-Jun-2015
Category:	Investor Relations
Upload:	ignaciopedrosa
View:	769 times
Download:	0 times