TIN FUNDSTechnology, Innovation & Novel thinking March 2019
TIN FONDER
Why TIN Funds?
• We want to retain the leadership
position in investing in innovative
companies
• Transparency: creating an asset
manager that is engaging
• We want to continue building the
Nordic Tech and Innovation eco system
• Independent asset managers with
principal owners generate better
returns
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Fund managersErik Sprinchorn Carl Armfelt
1995-2000 Swedbank Robur
2000-2004 SEB Enskilda
2004-2007 Alecta
2007-2011 Brummer & Partners
2011-2019 Swedbank Robur
2007-2011 Brummer & Partners
2011-2013 CA Cheuvreux
2013-2014 Nordea
2014-2019 Swedbank Robur
Historic Performance
• Best return of ALL funds on morningstar.se in last 5 and 10 years
• Total return 224% last 5 years and 945% last 10 years
• Average annual return18% per year over 5 years and 25% per year over 10 years
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• Technology and innovation
– Faster growth than general economy
• The Nordics
– Great region to invest in long term
• Small caps
– Small to medium companies generate better
returns over time
• Profitable growth
– Profitable growth compounds value over time
– Focus on strong cash flows
– Avoid speculative ”stories”, unprofitable
companies
A fund for you if you believe in:
Core Ny Teknik
Nordics
InnovationSmall Caps
Software
Med Tech
Digital Brands
Attractive region
Durable value creation
We have a strong network
Quality companies
Profitable growth
Time value
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Good business climate and stable politics
Blessed with no home markets
World class governance
At the forefront of digital transformation
Investing in the Nordics
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Entrepreneurship
• Owner operators of flesh and blood
• Founders and managers often significant owners
Growth
• Focus, dedication, often niche dominance
• Easier to grow from small base
Under analyzed
• Few if any analysts following the company
• Often we have been the first institution to invest
Corporate deals
• Smaller companies can make transformative acquisitions
• Higher buyout probability
Why small caps?
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Investment Process
Long term
horizon
Structural
growth
Sustainable
profitability
Active
management
Company meetings
per year
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Preserve our digital gems
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Transformative deals
• THQ: acquisitions making a difference Other good acquisitive companies
• Kindred
• MTG
• Storytel
• Stillfront
• CLX
• Probi
• SOBI
• Biogaia
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100 years: from ironware, to hardware, to software
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The digital transfer of wealth as already started… …… and it will continue!
There is no room for
complacency in the
fast-moving digital
world.”— Marc Benioff, Salesforce.com
“
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Our first fund: Core Ny Teknik
• Equity fund investing in technology and healthcare
• Primary investment focus small to medium sized innovative companies
• Focus on the Nordics; up to 30% in global companies
• Long term perspective and concentrated portfolio with 40 – 60 holdings
Software Med Tech Digital Brands
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• Increasing importance of Technology, Healthcare and Digital Brands
• Current trends set to continue into the future
• Long term: global value transfer from old to new technology
Our Vision
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Integrated publisher and
developer of computer
games. A number of
interesting titles on the way.
Acquisition-oriented.
Entrepreneurally driven with
strong main owner.
Chinese internet
conglomerate, and the
world's largest computer
games company. Owns 40%
of Epic Games with the title
Fortnite among other assets.
Computer game developer
with a broad portfolio of
brands in niche "grand
strategy games".
Entrepreneurally driven with
strong main owner.
By far the market-leading
supplier in the niche live
casino for online. Strong
corporate culture with a
desire to constantly improve.
Norwegian game developer
and publisher with titles such
as Age of Conan, Conan
Exiles and Mutant Year Zero.
Focus on smaller game titles
with short development
cycles.
American game developer
and publisher with titles such
as GTA IV, Civilization, NBA2K
and Red Dead Redemption.
Increasing its share of digital
sales.
Investment company
focusing on innovative
companies with network
effects. The largest holdings
are BlaBlaCar, Gett, Property
Finder and Babylon.
The company makes
software for architects,
engineers and the
construction industry. High
percentage of recurring
revenue and growth of
around 20 per cent.
Largest Holdings(as of 2019-03-01)
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• Software eats the world
• High growth and profitability
• Trying to find ”hard to replace” software
• Small category winners vs global champions?
Software
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• Companies with high growth and profitability in focus
• Some companies niche/dependent on one business area – portfolio approach
• Large surface under the curve – regulation makes harder to replace than tech
Med Tech
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Digital Brands
• Technology changes but brands last
• Digital entertainment is a growth
business
Possessing a powerful
world wide brand is essential
for sustained success.”— Warren Buffett
“
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• Tech and innovation by nature more global than many other industries
• In the last five years strong contribution from our international investments
• At least 70% Nordics provides focus, up to 30% global provides flexibility
• Global holdings
– Similar to our Nordic champions
– Sometimes at lower valuation
• Outside the Nordics we tend to invest in mid caps rather than small caps
Why up to 30% of the fund global?
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Growth in EBIT, small companies vs large
0
20
40
60
80
100
120
140
160
180
200
2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18
Små bolag Stora bolag ex Equinor
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• Innovation happens in clusters and we want to support keeping the best
entrepreneurs and companies in the Nordics
• Actively strive for more successful companies coming to the stock market
• We deplore letting our digital gems go to the first best bidder
• Examples of corporate clusters:
– Sweden: IT, Software, Games developers,
– Denmark: Med Tech, Pharma, ”Silicon Valley of Sound”
Corporate Clusters
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• Dialogue
– We believe a good dialogue between companies and owners enhances responsible
acting
• Influence
– By exclusion we would evade responsibility. Through influence we can help move
companies in the right direction
• Technical innovation
– Technology + innovation = sustainability
Continued innovation is the most important driving force for a sustainable society.
Responsible investing
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• Policy for responsible investments
– The fund’s overall philosophy for responsible investment is that companies quoted on
Nordic stock markets with long term owners who engage in dialogue are well placed to
act responsibly
– The fund aims to contribute to productive dialogue between companies and owners with
the purpose to establish or strengthen an existing process of continuing improvement in
the area of sustainability
• FN Global Impact
– Companies in which the fund does not see any willingness to change or where the fund
believes the company will not correct its problems within a reasonable time frame will not
be eligble for investment
ESG policy
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Software
29%
Digital brands
27%
Health
23%
Niche Winners
16%
Cash
5%
Sector Distribution
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Nemetschek Recurring Revenue
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Tencent an unique ecosystem
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Funcom pipeline
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The most popular PC games in the world
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Our Key Themes
Technology & InnovationCompanies with ”Ny Teknik” are better placed to create shareholder value over time and grow their earnings faster than the general economy
Novel ThinkingThe long term potential in digital assets is underestimated. In the coming 15+ years we see significant wealth transfer from those owning old technology to those owning new technology
Long Term Value CreationTechnology + innovation = sustainability. Innovation is critical for creating a sustainable society. Responsible dialogue between companies and owners yield greater opportunity to act responsibly.
TransparencyOpen dialogue with unit holders creates engagement and interest in holdings as well as investment process
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Core Ny Teknik
Nordics
InnovationSmall Caps
“Sweet spot”
Software
Med Tech
Digital Brands
Attractive region
Durable value creation
We have a strong network
Quality companies
Profitable growth
Time value
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Disclaimer: Historic returns are no guarantee for future returns. Money placed in the fund may decrease in value and there is no guarantee caöpital will be preserved. A fund with risk class 6-7 may see significant chasnges in value up or down, due to its composition and the investment procesws used. KIID, investment memorandum and fund rules and legal information regarding Atle Investment Services are easiest found on our website WWW.TINFONDER.SE
Innovation & Novel Thinking
TIN FONDERc/o Atle Investment Services AB
Grev Turegatan 12A114 46 Stockholm+46 8 520 277 44
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