Ais city wire workshop may 2013hk amundifinal
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Transcript of Ais city wire workshop may 2013hk amundifinal
Amundi International SICAV
« Making more by losing less* » Wealth Manager – CityWire Conference
May 2013
Robert Hackney, Senior Managing Director
First Eagle Investment Management, LLC.
This material is solely for the attention of "professional” investors (see more details and definitions at the end of the document).
*The SICAV does not offer a capital guarantee.
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Delegation of portfolio management
Investment Manager
Sub-Investment Manager
Amundi International
SICAV
Crédit Agricole Société Générale
75% 25%
Partners with one objective: generating value for our clients
Amundi International SICAV – May 2013 - Slide 2
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Executive Summary
We are Owners of Enterprise, not stock traders
Amundi International SICAV – May 2013 - Slide 3 Source: Amundi - Annualized data, net of fees, Retail Share (AU-C), since inception, in USD, as of end April 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.
Investment Objective – To preserve and enhance the purchasing power of capital over time
– To avoid the permanent impairment of capital through a time-tested value approach
– To achieve these goals by investing in a broad universe of assets, including global equities, corporate and short term sovereign bonds, and gold related securities
Key features – Inception: 1996
– Market capitalization: All
– Sector/Country Constraints: None
– Historical Portfolio Turnover: less than 20%
– Currency Hedging: Used defensively
Results since inception (ending April 2013)
– Absolute Positive Returns: 10.72% vs MSCI World 5.84% (in USD)
– Low Volatility: 11.23% STD vs MSCI World 18.20%
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
“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
300
1,000
100,000
100
600
2,000
200
3,000 TMT Bubble Burst
SARS Epidemic
Bankruptcy of Continental Illinois Bank
Black Monday, October 19, 1987
Gulf War I
Mexican Peso Crisis
Asian Currency
Crisis
LTCM Bankruptcy
Enron Fraud
09/11
Gulf War II
Subprime Crisis
Lehman Bankruptcy
Greek Debt Crisis
Global Economic
Crisis
Japan Earthquake & Tsunami
US & European
Debt Crisis
LATAM Debt Crisis
Japanese Equity Bubble Burst
Russian Debt
Default
10,000
20,000
6,000
Amundi International SICAV – May 2013 - Slide 4
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 lose half of my clients rather than half of my client’s
money. »
* Source: First Eagle. ** Excludes holding companies, paper and forest, Gold ETF.
Global Value Strategy*
Rule No 1: Don’t lose money!
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Amundi International SICAV – May 2013 - Slide 5
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Looking for the ugly, unwanted and unloved
What We Do
Analyze and understand
business models
Recast financial statements
Calculate intrinsic value
Invest when the business trades at a 30%-50% discount
What a knowledgeable investor would pay for the entire company in cash today
Intrinsic Value
Given for indicative purpose only, may be changed without prior notice
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Amundi International SICAV – May 2013 - Slide 6
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Margin of safety: Following Rule No. 1
What We Do
Protection against uncertainty
To avoid Permanent impairment of Capital
Margin of Safety
Discount between intrinsic value and market price Margin of Safety
Given for indicative purpose only, may be changed without prior notice
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Amundi International SICAV – May 2013 - Slide 7
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
0
20
40
60
80
100
120
140
160
180
200
2005
2006
2007
2008
2009
2010
2011
60
70
80
90
100
110
120
Operating Income (Rebased 100;
in USD, LHS)
Weighted Average Shares
Outstanding (rebased 100, RHS)
Focus on companies passing the Bordeaux-Test
Income vs number of outstanding shares
Source: Amundi, First Eagle
0
50
100
150
200
250
2005
2006
2007
2008
2009
2010
2011
80
85
90
95
100
105
110
Operating Income (Rebased 100;
in USD, based on weighted
average annual exchange rates,
RHS)Weighted Average Shares
Outstanding (rebased 100, LHS)
0
20
40
60
80
100
120
140
160
180
2005
2006
2007
2008
2009
2010
2011
60
65
70
75
80
85
90
95
100
105
110
Operating Income (Rebased 100; in
USD, based on weighted average
annual exchange rates, RHS)Weighted Average Shares
Outstanding (rebased 100, LHS)
0
50
100
150
200
2005 2006 2007 2008 2009 2010 2011
60
70
80
90
100
110
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
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
1000
Providing consistent positive absolute returns over time
Historical Performance in USD since inception
100
200
300
400
500
700
Amundi International SICAV - 5y rolling annualised net returns (monthly data)
-10%
-5%
0%
5%
10%
15%
20%
25%
Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10
Amundi International SICAV - 5y rolling annualised net returns
MSCI World (ND) - 5y rolling annualised net returns
Source: Amundi - Data net of fees, Retail Share, since inception, in USD. Past performance is not a reliable indictor of 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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Other rolling annualized net returns since inception (monthly data, AU-C Share) Amundi International SICAV - 10y rolling annualised net returns (monthly data)
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Aug-0
6
Feb-0
7
Aug-0
7
Feb-0
8
Aug-0
8
Feb-0
9
Aug-0
9
Feb-1
0
Aug-1
0
Feb-1
1
Aug-1
1
Feb-1
2
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 MSCI World is provided for comparative purposes only.
Amundi International SICAV – May 2013 - Slide 13
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 are those applicable for the years mentioned. Past performances are not a guarantee for future results, they are not constant 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.
Carmignac Investissement A
Higher Returns
Higher Returns
Lower Returns
Lower Returns
Higher Volatility Lower Volatility
Lower Volatility Higher Volatility
Lipper Global Equity Universe Average (23.11%;-2.52%)
Blackrock Global Allocation Fund A2 USD
Amundi International SICAV – May 2013 - Slide 14
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
A dedicated team with one goal: minimizing risk of capital loss
Research Team Portfolio Management
Matt McLennan, CFA Head of Global Value Team
Portfolio Manager 21 years of experience
Kimball Brooker, Jr. Deputy Head of Global Value Team Portfolio Manager
20 years of experience
Abhay Deshpande, CFA
Portfolio Manager 20 years of experience
Jean-Marie Eveillard Senior Adviser
50 years of experience
Bruce Greenwald, PhD
Senior Adviser
Senior Advisers
Alan Barr, CFA Non-food consumer products, forest products/paper, chemicals
Rachel Benepe Retail, gold, metals and mining industries, steel & coal, automobiles
Giorgio Caputo Energy, distribution, packaging, building products, restaurants, special situations
Manish Gupta Technology hardware and equipment, commodity chemicals
Robert Hordon, CFA Real estate, infrastructure, retail and construction
Matt Lamphier, CFA Industrials, energy, medical devices, gaming and leisure, transportation
Debra Lusman Manager of Research Operations
Oanh Thi Nguyen Media, telecom
Elizabeth Tobin Pharmaceuticals, agriculture
Mark Wright, CFA Banks and food & beverage
Amundi International SICAV – May 2013 - Slide 15
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
“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 good
prices
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 most successful long-term records
in the investment world. »
Morningstar
Last but not least
Amundi International SICAV – May 2013 - Slide 16
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Amundi International SICAV
Appendix – Historical Portfolio Data
– Global Value AUM
– Fund Characteristics
Amundi International SICAV – May 2013 - Slide 17
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 end April 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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 end April 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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 to subscriptions
between 2004 and August 2008. The negative cash level in early 2008 is a result of significant
redemptions during that period.
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 to subscriptions
between 2004 and August 2008. The negative cash level in early 2008 is a result of significant
redemptions during that period.
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Amundi International SICAV – Appendix
0%
20%
40%
60%
80%
100%
Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12
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 to subscriptions
between 2004 and August 2008. The negative cash level in early 2008 is a result of significant
redemptions during that period.
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 EXCLUSIVE USE OF PROFESSIONAL CLIENTS
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 AUM
First Eagle Global Value Composite Assets
(USD Billions)
2,61,9 1,7 1,7 2,2
4,9
10,7
16,0
20,321,5
16,9
28,9
33,4
20,1
0
5
10
15
20
25
30
35
40
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Sep
-11
First Eagle Global Value Composite Assets (USD Billions)
Amundi International SICAV – May 2013 - Slide 26
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Disclaimer
Amundi, French joint stock company (“Société Anonyme”) with a registered capital of € 578 002 350 and approved by the French Securities Regulator (Autorité
des Marchés Financiers-AMF) under number GP 04000036 as a portfolio management company, 90 boulevard Pasteur -75015 Paris-France – 437 574 452
RCS Paris.
amundi.com
This material is solely for the attention of institutional, professional, qualified or sophisticated investors and distributors. It is not to be distributed to the general public, private customers or retail investors in any jurisdiction whatsoever nor to “US Persons”. Moreover, any such investor should be, in the European Union, a “Professional” investor as defined in Directive 2004/39/EC dated 21 April 2004 on markets in financial instruments (“MIFID”) or as the case may be in each local regulations and, as far as the offering in Switzerland is concerned, a “Qualified Investor” within the meaning of the provisions of the Swiss Collective Investment Schemes Ordinance of 23 June 2006 (CISA), the Swiss Collective Investment Schemes Ordinance of 22 November 2006 (CISO) and the FINMA’s Circular 08/8 on Public Offering within the meaning of the legislation on Collective Investment Schemes of 20 November 2008. In no event may this material be distributed in the European Union to non “Professional” investors as defined in the MIFID or in each local regulation, or in Switzerland to investors who do not comply with the definition of “qualified investors” as defined in the applicable legislation and regulation.
This document contains information about Amundi International SICAV (the “SICAV”), an undertaking for collective investment in transferable
securities existing under Part I of the Luxembourg law of 20 December 2002, organised as a société d’investissement à capital variable and
registered with the Luxembourg Trade and Companies Register under number B55.838. The SICAV has its registered office at 16, Boulevard
Royal, L-2449 Luxembourg
Amundi International SICAV has been authorised for public sale by the Commission de Surveillance du Secteur Financier in Luxembourg. Not
all the share classes of the SICAV will necessarily be registered or authorized for sale in all jurisdictions or be available to all investors.
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-annual reports 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 representative agent duly authorized and agreed by the relevant authority of each relevant concerned jurisdiction. Consideration
should be given to whether the risks attached to an investment in the SICAV are suitable for prospective investors who should ensure that they
fully understand the contents of this document. A professional advisor should be consulted to determine whether an investment in the SICAV is
suitable. The value of, and any income from, an investment in the SICAV can decrease as well as increase. The SICAV have no guaranteed
performance. Further, past performance is not a guarantee or a reliable indicator for current or future performance and returns. The
performance data do not take account of the commissions and costs incurred on the issue and redemption of units. This document does not
constitute an offer to buy nor a solicitation to sell in any country where it might be considered as unlawful, nor does it constitute public
advertising or investment advice. The information contained in this document is deemed accurate as at March 31st, 2013.
Amundi International SICAV – May 2013 - Slide 27
FOR EXCLUSIVE USE OF PROFESSIONAL CLIENTS
Amundi International SICAV – May 2013 - Slide 28
Disclaimer
The issuer of this document is Amundi Hong Kong Limited. This document is not intended as an offer or solicitation with respect to the purchase or sale of securities, including shares or units of funds. All views expressed and/or reference to companies cannot be construed as a recommendation by Amundi. Opinions and estimates may be changed without notice. To the extent permitted by applicable law, rules, codes and guidelines, Amundi and its related entities accept no liability whatsoever whether direct or indirect that may arise from the use of information contained in this document. This document is for distribution solely to persons permitted to receive it and to persons in jurisdictions who may receive it without breaching applicable legal or regulatory requirements. Any dissemination, reproduction, copy, modification or translation in whole or in part, with respect to any information provided herein is forbidden. This document is for professional investors only and not for retail investors. Some of the fund(s) mentioned in this document are not authorized by Securities and Futures Commission in Hong Kong. Consequently, shares or units of such funds are not available to the general public in Hong Kong and must not be distributed in Hong Kong by way of public offer, public advertisement or in any similar manner. This document has not been reviewed by any regulatory authority in Hong Kong and no regulatory authority in Hong Kong takes responsibility for the financial soundness of the funds or for the accuracy of any statement made or opinion expressed in this document. Investors are advised to exercise caution in relation to the offer. Any investor who is in doubt about the contents of the document is strongly recommended to seek independent professional advice. This document is prepared for information only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should not only base on this document alone to make investment decisions. Investment involves risk. The past performance information of the market, manager and investments and any forecasts on the economy, stock market, bond market or the economic trends of the markets which are targeted by the fund(s) are not indicative of future performance. Investment returns not denominated in HKD or USD is exposed to exchange rate fluctuations. The value of an investment may go down or up. The offering document(s) should be read for further details including the risk factors. The fund(s) may use financial derivatives instruments as part of the investment strategy and invest in securities of emerging markets or smaller companies, or fixed-income securities. This involves significant risks and is usually more sensitive to price movements. The volatility of fund prices may be relatively increased. Issuers of fixed-income securities may default on its obligation and the fund(s) will not recover its investment. Additional risk factors are described in the offering document(s). Investors are advised to be aware of any new risks that may have emerged in the prevailing market circumstances before subscribing the fund(s).