Cavendish
-
Upload
citywirewebsite -
Category
Business
-
view
329 -
download
2
Transcript of Cavendish
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
UNIQUEINSIGHTINTELLIGENTINVESTINGFOCUSEDONPERFORMANCELONGTERMGROWTHEQUITYSPECIALISTSACTIVEFUNDMANAGEMENTUNIQUEINSIGHTINTELLIGENTINVESTINGFOCUSEDFINDINGIVALUELONGTERMGROWTHEIQUIT
GLOBALIPERSPECTIVEIVEFUNDMANAAGEMJULIANILEMENTUNIQUEINSIGHTINTELLIGENTINVESTINGFOCUSE
DONPERFORMANCELONGTERMGROWTHEQUITYSPECIALISTSACTIVEFUNDMANAGEMENTUNIQUEINSIGHTINTELLIGENTINVESTINGFOCUSEDONPERFORMANCELONGERMGROWTHEQUITYSPECIALISTSACTIVEFUNDMANAGEMENTUNIQUEINSIGHTINTELLIGENT
2 NOVEMBER 2011
This presentation is for investment professionals only and is not intended for
retail clients
EXPERTISEBUILT IN
1
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
OVERVIEW
The Cavendish Worldwide Fund
• Focused on a long-term growth-oriented perspective.
• As a result, tends to have a heavy concentration in emerging
markets or stocks exposed to emerging economies.
• Near-term risk/reward profile means that the fund has an unusually
high cash weighting.
• We are looking for opportunities to reduce cash (non-equity)
holdings as equities tend to lead economic recovery.
2
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
Cavendish Asset Management
Long-only equity specialists
Stockpickers
Range of 10 OEIC funds
Experienced fund managers working collegiately
All funds have same manager since launch
Privately owned by large multi-national parent
company
Manage £648m
Source: Cavendish/Northern Trust. Figures as at 30/09/11
A BRIEF INTRODUCTION
Julian Lewis CIO and Fund
Manager
Cavendish Worldwide Fund
Manager since launch 06/07/1994
Fund Size £61.2m
IMA Sector Active Managed
Also manager of
Cavendish UK Balanced Income Fund
3
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
FINDING VALUE
For the Worldwide Fund, it is a bottom
up focus but following some top down
themes.
Not led by sector allocation, led by the
themes
Shared Insight from 6 fund managers
who regularly visit their markets
Supported by 4 analysts with a global
focus
STRONGMARKETPOSITION
ATTRACTIVE STRATEGY
GOOD MANAGEMENT
MACRO TRENDS
ECONOMIC GROWTH
FLOW OF FUNDS
BENCHMARK WEIGHTINGS
We take account of:
And use these factors to find, identify
and validate good businesses.
Stock Pickers
We look for companies with:
4
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
CAVENDISH WORLDWIDE FUND
10 year Fund Performance
Cavendish Worldwide Retail FTSE World TR GBP IMA Active Managed
Source: Lipper. % growth, total return, GBP, single price, UK net income reinvested with no initial charges. Past performance is no guarantee of future returns. Figures as at
30/09/11
-40
0
40
80
120
160
28/ 09/ 2001 28/ 09/ 2003 28/ 09/ 2005 28/ 09/ 2007 28/ 09/ 2009 28/ 09/ 2011
5
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
PORTFOLIO CONSTRUCTION
Diversification across
markets
Small Bets
111 Holdings
None larger than 1.5%
Invested across 26
geographic locations
Source: Cavendish/Northern Trust. Figures as at 30/09/11
6
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
Source: Cavendish, Northern Trust.
7
ASSET ALLOCATION - NON EQUITIES
0%
5%
10%
15%
20%
25%
30%
Worldwide Fund – Non-equity position to 21st October 2011
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
EQUITIES TODAY
• Shorter term uncertainty, positive long term outlook
• Equities cheap on a long term view
• Dividends/yields trending upwards
10 years Dividend MSCI World Index 10 years Price to Book MSCI World Index
8
Equity Dividend Yield
0
1
2
3
4
5
6
0
0.5
1
1.5
2
2.5
3
Source: Cavendish, Bloomberg 21/10/11
Price to Book Ratio
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
CURRENT FAVOURED THEMES
9
Emerging Markets
Developed Economies
-prefer US to Europe (ex UK)
Consumer Markets
Manufacturing
Technology
Dividend Growth
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
CASE STUDIES
Detail provided on the following
Youngone - Korea
Trakya Cam – Turkey
Tractor Supply company - USA
10
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
KOREA – STOCK PICKS
YOUNGONE
A leading Korean manufacturer and exporter of sportswear
and backpacks. Clients include North Face, Polo Ralph
Lauren, Nike, Timberland.
Benefits from new order momentum and de-stocking by
American and European buyers.
Low cost base, 65% of production situated in Bangladesh
Bangladesh import tax benefit to Western buyers.
Internal and regional demand strong.
Current 11x P/E has increased from last year’s 8x but still
looks good value.
11
Source: Cavendish, Bloomberg 21/10/11
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
TURKEY – STOCK PICKS
TRAKYA CAM
Manufacturer of basic glass, automotive glass and glass for
other vehicles, energy glass, glass for home appliances.
Biggest glass manufacturer in Turkey with strong demand
and leading market position.
Products used in construction and automotive sectors, which
are highly correlated with economic growth.
Good growth story in emerging markets.
Valuation of 8x P/E but downside risks in short-term.
12
Source: Cavendish, Bloomberg 21/10/11
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
USA – STOCK PICKS
TRACTOR SUPPLY CO
The leading operator of farm and ranch stores in the United
States. Gaining market share in a fragmented industry.
Focused on lifestyle needs of recreational
farmers, ranchers, and small businesses (smallholdings).
Plans to grow its1000 shops to 1800 over the longer term.
Outstanding track record – 23% net income CAGR
(Compound Annual Growth Rate) since 1992, with sales
growing every single year.
Excellent Q3 results, Forward P/E 25x.
Consensus estimates of nearly 20% annual EPS growth
over next 3-5 years.
13
Source: Cavendish, Bloomberg 21/10/11
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
CONCLUSION – CAVENDISH WORLDWIDE FUND
Geographic Allocation of Equity Holdings
14
Latin America (6.69%)
Asia Pacific (25.42%)
Europe (ex UK) (14.27%)
Japan (5.71%)
North America (19.65%)
UK (21.71%)
Other (6.56%)
Overweight
Emerging Markets
Looking For…
Growing Consumer Markets
Attractive Valuations
Source: Cavendish, Northern Trust 28/10/2011
.
EXPERTISE BUILT IN
West World, West Gate, London W5 1DT
Tel 0800 028 66 59
WWW.CAVENDISHAM.CO.UK
IMPORTANT INFORMATION
This presentation is for investment professionals only, it is
and is not intended for retail clients and may not be
distributed to third parties.
Cavendish Asset Management Limited has issued and approved
this presentation. It is authorised and regulated in the United
Kingdom by the Financial Services Authority under
registration number 116252.
This presentation should not be regarded as giving you or
your clients investment or tax advice about our products.
You can obtain copies of Cavendish Investments Funds’
Prospectus and Simplified Prospectus, both these documents
are in English and are available from the literature page of
our website www.cavendisham.co.uk.
The presentation does not form the basis of, nor should it be
relied upon in connection with, any subsequent contract or
agreement. It does not constitute and may not be used for the
purpose of an offer or invitation to subscribe to, or
otherwise acquire shares in any of the products mentioned.
Past performance is not a guide to future returns. The value
of the shares in the funds and the income from them, if
any, may fall as well as rise. Investing in the funds involves
risks, including those arising from stock and bond
markets, currency exchange rate and interest rate volatility.
Investors should always obtain professional advice before
investing in our funds.
Cavendish Asset Management Limited is registered in England
no. 735076 at Chelsea House, West Gate, London W5 1DR.
2011/046
15