Ais city wire workshop may 2013f inalspore
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Transcript of Ais city wire workshop may 2013f inalspore
For Distributors and Financial Advisers Only
Amundi International SICAV
« Making more by losing less* »Wealth Manager – CityWire Conference
May 2013
Robert Hackney, Senior Managing Director
First Eagle Investment Management, LLC.
*The SICAV does not offer a capital guarantee
Morningstar rating as of April 2013
For Distributors and Financial Advisers Only
Delegation of portfoliomanagement
InvestmentManager
Sub-InvestmentManager
AmundiInternational
SICAV
Crédit Agricole Société Générale
75% 25%
Partners with one objective: generating value for our clients
Amundi International SICAV – May 2013 - Slide 2
For Distributors and Financial Advisers Only
Executive Summary
We are Owners of Enterprise, not stock traders
Amundi International SICAV – May 2013 - Slide 3Source: Amundi - Annualized data, net of fees, Retail Share (AU-C), since inception, in USD, as ofend April 2013. Past performance is not a reliable indictor of future returns. The fund has no officialbenchmark. The MSCI World is provided for comparative purposes only.
Investment Objective – To preserve and enhance the purchasing power of capital overtime
– To avoid the permanent impairment of capital through a time-testedvalue approach
– To achieve these goals by investing in a broad universe of assets,including global equities, corporate and short term sovereignbonds, and gold related securities
Key features – Inception: 1996
– Market capitalization: All
– Sector/Country Constraints: None
– Historical Portfolio Turnover:less than 20%
– Currency Hedging: Useddefensively
Results since inception(ending April 2013)
– Absolute Positive Returns:10.72% vs MSCI World 5.84% (inUSD)
– Low Volatility: 11.23% STDvs MSCI World 18.20%
For Distributors and Financial Advisers Only
“The Future is Uncertain!”
But it is certain that crisis periods are recurrent
Source: Amundi, First Eagle. Data as of end April 2013.The fund has no official benchmark. The MSCI World is provided for comparative purposes only.Past performance is not indicative of future returns. First Eagle Global Value composite performance returns are presented toillustrate the application of First Eagle’s global value strategy. As Accounts included in the Composite may have different feestructures, the returns do not represent the actual performance returns of the Amundi International SICAV. Information presentedhere is for reference only
300
1,000
100,000
100
600
2,000
200
3,000 TMTBubbleBurst
SARSEpidemic
Bankruptcy ofContinentalIllinois Bank
Black Monday,October 19, 1987
GulfWar I
MexicanPesoCrisis
AsianCurrency
Crisis
LTCMBankruptcy
EnronFraud
09/11
GulfWar II
SubprimeCrisis
LehmanBankruptcy
GreekDebtCrisis
GlobalEconomic
Crisis
JapanEarthquake& Tsunami
US &EuropeanDebt Crisis
LATAMDebt Crisis
JapaneseEquityBubbleBurst
RussianDebt
Default
10,000
20,000
6,000
Amundi International SICAV – May 2013 - Slide 4
For Distributors and Financial Advisers Only
What We Seek to Avoid
High valuations
High levels of leverage
“Black box” balance sheets
Vulnerable business models
Aggressive management behavior
0.0% in Japan
4.8% in Tech/Telecom
1.72% in Financials**
31/12/1988
31/12/1999
31/12/2006
MSCI World: 44.12%
MSCI World: 32.47%
MSCI World: 26.39%
Jean-Marie Eveillard
« I would prefer to losehalf of my clients ratherthan half of my client’s
money. »
* Source: First Eagle.** Excludes holding companies, paper and forest, Gold ETF.Performance of First Eagle Global Fund may not be representative of Amundi International SICAV.Information presented here is for reference only.
Global ValueStrategy*
Rule No 1: Don’t lose money!
Amundi International SICAV – May 2013 - Slide 5
For Distributors and Financial Advisers Only
Looking for the ugly, unwanted and unloved
What We Do
Analyze andunderstand
business models
Recast financialstatements
Calculate intrinsicvalue
Invest when thebusiness trades at a
30%-50% discount
What a knowledgeable investor wouldpay for the entire company in cash today
IntrinsicValue
Given for indicative purpose only, may be changed without prior notice Amundi International SICAV – May 2013 - Slide 6
For Distributors and Financial Advisers Only
Margin of safety: Following Rule No. 1
What We Do
Protection againstuncertainty
To avoid Permanentimpairment of Capital
Marginof Safety
Discount between intrinsic value and market priceMargin
of Safety
Given for indicative purpose only, may be changed without prior notice Amundi International SICAV – May 2013 - Slide 7
For Distributors and Financial Advisers Only
0
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2005
2006
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2009
2010
2011
60
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120
Focus on companies passing the Bordeaux-Test
Income vs number of outstanding shares
Source: Amundi, First Eagle as at April 2013.References to specific securities are presented to illustrate the application of First Eagle’s investmentphilosophy only and are not to be considered recommendations by First Eagle or Amundi. It should not beassumed that investments in the securities identified were or will always be profitable.
0
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2005
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2011
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2005
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2011
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85
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100
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Operating Income (Rebased 100; in USD, based on weighted average annual exchange rates, RHS)Weighted Average Shares Outstanding (rebased 100, LHS)
Amundi International SICAV – May 2013 - Slide 8
Nestle Microsoft Fanuc
For Distributors and Financial Advisers Only
Cash & Cash Equivalents as residual of investment opportunities
Price is “the” Trigger
Source: First Eagle. Data as of end April 2013 Amundi International SICAV – May 2013 - Slide 9
For Distributors and Financial Advisers Only
Emphasizing sustainable competitive advantage
Top 10 Holdings
Number of Holdings: 143 AUM: $4,189.9 Million
Source: First Eagle. Data as of end April 2013 Amundi International SICAV – May 2013 - Slide 10
For Distributors and Financial Advisers Only
Asset & Sector Breakdown
Asset Breakdown Sector Breakdown
Focusing on companies & revenues, not on markets
Source: First Eagle. Data as of end April 2013 Amundi International SICAV – May 2013 - Slide 11
For Distributors and Financial Advisers Only
1000
Providing consistent positive absolute returns over time
Historical Performance in USD since inception
100
200
300
400
500
700
A m undi International S ICA V - 5y rolling annualised net returns
M S CI W orld (ND) - 5y rolling annualised net returns
Source: Amundi - Data net of fees, Retail Share, since inception, in USD. Past performance is not a reliable indictorof future returns. The SICAV has no official benchmark. The MSCI World is provided for comparative purposes only.Inception date of the fund: 12/08/1996.Given for Illustrative purpose only.
Amundi International SICAV – May 2013 - Slide 12
Performance 1 year 3 years 5 years 10 years Inception
Amundi International SICAV 9,35% 7,32% 3,70% 10,71% 10,72%
MSCI World (ND) 16,30% 9,29% 1,80% 8,35% 5,84%
Spread -6,95% -1,97% 1,90% 2,36% 4,88%
Net of fees, in USD, Retail Share (AU-C), monthly data, as of April 30, 2013
annualized returns
For Distributors and Financial Advisers Only
Other rolling annualized net returns since inception (monthly data, AU-C Share)
Amundi International SICAV MSCI World (ND)
1Y
3Y
7Y
10Y
With patience as ally
Source: Amundi - net of fees, Retail Share, since inception, monthly data, in USD, as of end April 2013.Past performance is not a reliable indictor of future returns. The fund has no official benchmark. The MSCIWorld is provided for comparative purposes only.
Amundi International SICAV – May 2013 - Slide 13
For Distributors and Financial Advisers Only
Competitive Positioning over 5 years (5y returns vs. 5y volatility)
And an unique risk/return profile
Source: Amundi - Data net of fees, Retail Share, since inception, in USD. The figures shown in this chart arethose applicable for the years mentioned. Past performances are not a guarantee for future results, they are notconstant over time. Ranking & Quartile – Lipper – Funds registered for sale in Europe, Performances, Ranking &Quartile are calculated with A Share – Data as of end December 2012.
CarmignacInvestissement A
HigherReturns
HigherReturns
LowerReturns
LowerReturns
Higher VolatilityLower Volatility
Lower Volatility Higher Volatility
Lipper Global EquityUniverse Average(23.11%;-2.52%)
Blackrock GlobalAllocation Fund A2 USD
Amundi International SICAV – May 2013 - Slide 14
For Distributors and Financial Advisers Only
A dedicated team with one goal: minimizing risk of capital loss
Research TeamPortfolio Management
Matt McLennan, CFAHead of Global Value TeamPortfolio Manager21 years of experience
Kimball Brooker, Jr.Deputy Head of Global Value TeamPortfolio Manager20 years of experience
Abhay Deshpande, CFAPortfolio Manager20 years of experience
Jean-Marie EveillardSenior Adviser50 years of experience
Bruce Greenwald, PhDSenior Adviser
Senior Advisers
Alan Barr, CFANon-food consumer products,forest products/paper, chemicals
Rachel BenepeRetail, gold, metals and miningindustries, steel & coal,automobiles
Giorgio CaputoEnergy, distribution, packaging,building products, restaurants,special situations
Manish GuptaTechnology hardware andequipment, commodity chemicals
Robert Hordon, CFAReal estate, infrastructure, retailand construction
Matt Lamphier, CFAIndustrials, energy, medicaldevices, gaming and leisure,transportation
Debra LusmanManager of Research Operations
Oanh Thi NguyenMedia, telecom
Elizabeth TobinPharmaceuticals, agriculture
Mark Wright, CFABanks and food & beverage
Amundi International SICAV – May 2013 - Slide 15Source: First Eagle.
For Distributors and Financial Advisers Only
“Making more by losing less” means…
Capital preservation in real terms over time as main performance objective
Purchasing good businesses at great prices and/or great businesses at goodprices
Remaining flexible in terms of sector, country & market cap
Broadly diversifying the portfolio through investments in Gold, Bonds and Cash
Being prudent, patient, long term oriented, independent and benchmark agnostic
« One of the mostsuccessful long-term recordsin the investment world. »1
Morningstar
Last but not least
Amundi International SICAV – May 2013 - Slide 161Quote as of 27/06/2003
For Distributors and Financial Advisers Only
Amundi International SICAV
Appendix– Historical Portfolio Data
– Global Value AUM
– Fund Characteristics
Amundi International SICAV – May 2013 - Slide 17
For Distributors and Financial Advisers Only
Historical Volatility Capture Ratio vs MSCI World (AU-C Share)
Amundi International SICAV – Appendix
Source: Amundi - Annualized data, net of fees, Retail Share (AU-C), since inception, in USD, as of endApril 2013. Past performance is not a reliable indictor of future returns. The fund has no official benchmark.The MSCI World is provided for comparative purposes only.
Amundi International SICAV – May 2013 – Slide 18
For Distributors and Financial Advisers Only
Historical Tracking Error vs MSCI World (AU-C Share)
Amundi International SICAV – Appendix
Source: Amundi - Annualized data, net of fees, Retail Share (AU-C), since inception, in USD, as of endApril 2013. Past performance is not a reliable indictor of future returns. The fund has no official benchmark.The MSCI World is provided for comparative purposes only.
Amundi International SICAV – May 2013 – Slide 19
For Distributors and Financial Advisers Only
Amundi International SICAV – Appendix
Amundi International SICAV – May 2013 - Slide 20
Historical Asset Breakdown
As of end April 2013
Source: Amundi. Data as of end April 2013 – Please note that the SICAV was closed tosubscriptions between 2004 and August 2008. The negative cash level in early 2008 is aresult of significant redemptions during that period.
For Distributors and Financial Advisers Only
Amundi International SICAV – Appendix
Amundi International SICAV – May 2013 - Slide 21
Historical Regional Breakdown
As of end April 2013
Source: Amundi. Data as of end April 2013 – Please note that the SICAV was closed tosubscriptions between 2004 and August 2008. The negative cash level in early 2008 is aresult of significant redemptions during that period.
For Distributors and Financial Advisers Only
Amundi International SICAV – Appendix
Cash & Short TermGovernment Bonds
Utilities
TelecommunicationServices
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Amundi International SICAV – May 2013 - Slide 22
Historical Sector Breakdown
As of end April 2013
Source: Amundi. Data as of end April 2013 – Please note that the SICAV was closed tosubscriptions between 2004 and August 2008. The negative cash level in early 2008 is aresult of significant redemptions during that period.
For Distributors and Financial Advisers Only
Amundi International SICAV – Appendix
Amundi International SICAV – May 2013 - Slide 23
Historical Market Cap Breakdown
As of end April 2013
Source: Amundi. Data as of end April 2013
For Distributors and Financial Advisers Only
Amundi International SICAV – Appendix
Amundi International SICAV – May 2013 - Slide 24
Currency Hedging – EUR/USD
As of end April 2013
Source: First Eagle, Amundi. Data as of end April 2013
For Distributors and Financial Advisers Only
Amundi International SICAV – Appendix
Amundi International SICAV – May 2013 - Slide 25
Currency Hedging – JPY/USD
As of end April 2013
Source: First Eagle, Amundi. Data as of end April 2013
For Distributors and Financial Advisers Only
Amundi International SICAV – Appendix
Global Value AUM
Global Value Strategy Historical AUM Global Value AUM by Sub-Strategy
Source: First Eagle Investment Management, LLC. Data as of end March 2013
70.5bn USD AUMSep
-11
First Eagle Global Value Composite Assets (USD Billions)
Amundi International SICAV – May 2013 - Slide 26
For Distributors and Financial Advisers Only
Disclaimer
Amundi International SICAV – May 2013 - Slide 27
This document contains information about Amundi International SICAV (the “SICAV”), an undertaking for collective investment in transferable securitiesexisting under Part I of the Luxembourg law of 17 December 2010, organised as a société d’investissement à capital variable and registered with theLuxembourg Trade and Companies Register under number B55.838. The SICAV has its registered office at 16, Boulevard Royal L-2449 Luxembourg. TheSICAV has been authorised for public sale by the Commission de Surveillance du Secteur Financier in Luxembourg. The SICAV will not necessarily beregistered or authorized for sale in all jurisdictions or be available to all investors.
The SICAV is not authorised or recognised by the Monetary Authority of Singapore ("MAS") and are not allowed to be offered to the Singapore retail public.This document is not a prospectus as defined in the Securities and Futures Act, Cap. 289 of Singapore (the "SFA") and accordingly, statutory liability under theSFA in relation to the content of prospectuses would not apply.
This document has not been registered as a prospectus by the MAS, and the offer of the Shares of the SICAV are made pursuant to the exemptions underSections 304 and 305 of the SFA. Accordingly, the Shares may not be offered or sold, nor may the Shares be the subject of an invitation for subscription orpurchase, nor may this document or any other document or material in connection with the offer or sale, or invitation for subscription or purchase of the Sharesbe circulated or distributed, whether directly or indirectly, to any person in Singapore other than under exemptions provided in the SFA for offers made (a) to aninstitutional investor (as defined in Section 4A of the SFA) pursuant to Section 304 of the SFA, (b) to a relevant person (as defined in Section 305(5) of theSFA), or any person pursuant to an offer referred to in Section 305(2) of the SFA, and in accordance with the conditions specified in Section 305 of the SFA or(c) otherwise pursuant to, and in accordance with, the conditions of any other applicable provision of the SFA.
Subscriptions in the SICAV will only be accepted on the basis of the SICAV’s latest complete and simplified prospectuses, its latest annual and semi-annualreports and its articles of incorporation that may be obtained, free of charge, at the registered office of the SICAV or respectively at that of the representativeagent duly authorized and agreed by the relevant authority of each relevant concerned jurisdiction. The value of, and any income from, an investment in theSICAV can decrease as well as increase. The SICAV has no guaranteed performance. Further, past performance is not a guarantee or a reliable indicator forcurrent or future performance and returns. The performance data do not take account of the commissions and costs incurred on the issue and redemption ofthe Shares. This document is solely for the internal use of distributors and financial advisors. It is for your information only and does not constitute an offer tobuy nor a solicitation to sell in any country where it might be considered as unlawful, nor does it constitute public advertising or investment advice.This document is personal and confidential and may not be copied or distributed to anyone or in any jurisdiction that would make such distribution unlawful.The information contained in this document has been obtained from sources believed to be reliable but has not been independently verified, although Amundiand its affiliated companies (“Amundi”) believe it to be fair and not misleading. Such information is solely indicative and may be subject to modification fromtime to time and should be read in conjunction with the appropriate offering document. We do not accept any liability whatsoever whether direct or indirect thatmay arise from the use of information contained in this document. Amundi, its associates, directors, connected parties and/or employees may from time to timehave interests and or underwriting commitments in the investments mentioned in this document.
Amundi does not guarantee that all risks associated to the transactions mentioned herein have been identified, nor does it provide advice as to whether youshould enter into any such transaction. Amundi does not make any representation as to the merits, suitability, expected success, or profitability of any suchtransaction mentioned herein.
Amundi Singapore Limited168 Robinson Road#24-01 Capital Tower Singapore 068912Company Registration Number: 198900774E