Transcript
Citywire Pan European Investment Conference
May 2012
Fairmont Le Montreux Palace, 9th – 11th May 2012
Jupiter Dynamic Bond SICAV
FOR PROFESSIONAL INVESTORS ONLY. NOT FOR RETAIL INVESTORS.
Presented by:
Ariel Bezalel, Fund Manager Fixed Interest Team & Fund Management Director
Evelyn Lederle, Senior Sales Manager, Switzerland
Daniel Blum, Sales Manager, Europe
Agenda
Jupiter
People
Investment philosophy
Process
Performance
Manager’s current thinking
Valuations – Credit Still Appealing
Stock Examples
1
Mutual Funds, £18,351m
Segregated Mandates, £3,493m
Private Clients, £1,757m
Investment Trusts, £576m
Introduction to Jupiter
Assets under management Established in 1985
424 employees including
65 Investment Professionals
One of Europe’s most successful and
respected fund management houses,
managing assets of £24.2bn
Market cap £1.1bn*
Source: Jupiter 31.03.12. *Source: Bloomberg as at 31.03.12.
2
Industry recognition
Jupiter’s range of awards –
over 100 in the last 5 years alone –
is a testament to our company-wide
performance record*
Jupiter’s asset management success…
Talented team
Investment philosophy
Fundamental investment approach
*Source: Jupiter, Includes Jupiter Unit Trust Managers Limited and Jupiter Asset Management Limited. Past performance is no guide to the future.
3
Our core investment beliefs
Individual accountability and information sharing
Leads to high conviction ideas
Avoids biases of committees
Freedom to invest
Not restricted by house views or model portfolios
Able to back individual judgements
Portfolio risk controls
Independent, in-house monitoring – Performance and Portfolio Analytics team
Quarterly Portfolio Review committees, Monthly Investment Risk committees
and quarterly Compliance Monitoring committees
Focused on performance
4
Agenda
Jupiter
People
Investment philosophy
Process
Performance
Manager’s current thinking
Valuations – Credit Still Appealing
Stock Examples
5
Fund manager biography
Proven, experienced manager with award-winning track record
Over 15 years experience in sovereign and credit markets. He joined Jupiter
Asset Management in June 1997 as a member of the Fixed Interest team.
Has managed a Unit Trust within the IMA Sterling Strategic Bond sector
since launch in 2008, and also manages the fixed interest component of two
UK-domiciled bond / equity funds.
Qualified in Economics at Middlesex University
Ariel Bezalel Fund Manager, Fixed Interest Team
Fund Management Director
6
Supported by the Fixed Income and Multi Asset Team
John Hamilton Head of Fixed Income Interest Team
31 years market experience
Rhys Petheram Fund Manager / Credit Analyst
11 years market experience
Miles Geldard Head of Convertibles and Multi Asset Team
27 years market experience
Lee Manzi Senior Portfolio Manager
14 years market experience
Nicole Weiss Credit Analyst
12 years market experience
Agenda
Jupiter
People
Investment philosophy
Process
Performance
Manager’s current thinking
Valuations – credit still appealing
Stock examples
7
Investment style
Combines top-down macroeconomic views with
bottom-up fundamental company research
Seeks situations offering value and favourable risk /
reward profile
Emphasis on individual security selection, drawing on
the expertise of Jupiter's fixed interest and equity teams
Invests for medium to long-term
Flexible strategy and a broad investment mandate can
drive returns
8
Jupiter Dynamic Bond
Aims to achieve a high income with prospect of capital growth
Combines top-down strategic asset allocation with bottom-up security selection
‘Go anywhere’ strategy: Global investment universe
Is able to invest across a range of fixed income securities i.e.:
Government bonds
Investment grade bonds
High yield bonds
Preference shares
Convertible bonds
and other bonds
Flexible duration approach
Can invest in all parts of the ratings spectrum from investment grade to high yield
At least 80 % of the currency is either denominated in the base currency
or hedged back to the base currency
Typically 60-80 securities
9
10
Fund details
Luxembourg-domiciled UCITS SICAV, unsophisticated
Institutional and retail share classes – (minimum investment
€10m and €1,000 respectively)
Daily dealing and pricing; cut-off at 1pm* (LUX time)
Settlement period: T+3
EUR-based fund with USD, GBP and CHF share classes (passive currency hedging)
Custodian – HSBC Securities Services (Luxembourg) S.A.
Benchmark: Barclays Capital Euro – Aggregate Corporate Index
Management fees:
L Class 1.25%
I Class 0.50%
*We recommend that you submit orders before 12.45 in order to ensure that it is processed in time for the cut-off.
11
Class name and class currency Class L Euro
Class L US
Dollar
Class L
Sterling
Class L Swiss
Franc Class I Euro
Class I US
Dollar
Class I
Sterling
Class I Swiss
Franc
ISIN LU0459992896 LU0459992979 LU0459993191 LU0750223447 LU0750223520 LU0750223876 LU0750223959 LU0750224098
WKN A0YC40 A0YC41 A0YC42 A1JUF3 A1JUF4 A1JUF5 A1JUF6 A1JUF7
Clearstream common code
45999289 45999297 45999319 000075022344 000075022352 000075022387 000075022395 000075022409
SEDOL B58YQ00 B56LFY0 B56LCL6 B7NFNX4 B7NFPD8 B7NM443 B7NM4P4 B7NM8G3
Benchmark
ticker code .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR
Passive currency
hedging No Yes Yes Yes No Yes Yes Yes
Source: Jupiter, 2012.
Jupiter Dynamic Bond Fund (SICAV)
Agenda
Jupiter
People
Investment philosophy
Process
Performance
Manager’s current thinking
Valuations – credit still appealing
Stock examples
12
Investment process
13
Macro View
Sector
Allocation Portfolio
Issuer
Selection
Credit
Analysis
Idea generation
Existing holdings
Other bonds in our universe
Company specific
General market news, sector related company news
Yield curve analysis, interest rate / inflation
outlook, data flow etc.
Supply / demand, flows, sentiment,
CDS / share price behaviour
Company specific / credit analysis
General market
Valuation
News Flow
Macro Analysis
Market Forces
Knowledge
Team involvement; active discussion
Sources of investment ideas:
14
Portfolio features
Effective yield: 6.45% (net basis)
Duration of portfolio*: 3.52 years
Invest in all parts of the ratings spectrum
Credit rating: BBB+**
Fund manager tends to have a 10% limit in
convertibles
80% of assets must be in sterling or hedged back
to sterling***
Based on UK-domiciled bond fund
Source: HSBC 29.02.12, Institutional class. Yields quoted are not guaranteed and may change in the future. *Source : Jupiter 29.02.12. **Source: Jupiter as at 31.03.12. ***Sector requirement
15
16
Portfolio features of the UK-domiciled bond fund
Source: Jupiter, 2012.
2
3
4
5
6
Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12
Ye
ars
AverageDuration
Change in duration since launch
Source: Jupiter as at 29.02.12. The fund manager has the power to use derivatives but it is intended that these will only be used for efficient portfolio management and not for investment purposes.
17
Portfolio features – Exploiting opportunities across the ratings spectrum
Strategic asset allocation since launch Credit rating split
Based on UK-domiciled bond fund
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11
Sovereign (long) Sovereign (short) High Yield Investment Grade Cash
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11
AAA AA A BBB BB B CCC CC D NR cash
18
UK-domiciled portfolio breakdown
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
High Yield InvestmentGrade
Sovereign long Cash Sovereign short
Based on UK-domiciled bond fund
Average rating BBB
– 0.9% exposure to GIPSI nations
-20%
-10%
0%
10%
20%
30%
40%
Fin
an
cia
ls
Ind
us
tria
ls
Rig
Fin
an
cin
g
Co
ns
um
er
Dis
cre
tio
na
ry
Ca
sh
Med
ia
Tele
co
ms
Pac
ka
gin
g
He
alt
hc
are
Tec
hn
olo
gy
Co
ns
um
er
No
n-
Dis
cre
tio
na
ry
Uti
liti
es
To
bac
co
Su
pra
nati
on
al
Pro
pert
y
So
vere
ign
-20%
-10%
0%
10%
20%
30%
40%
Bri
tain
Au
str
alia
No
rway
Ca
sh
Ge
rma
ny
Fra
nc
e
Mex
ico
Po
lan
d
SN
AT
Irela
nd
Ne
therl
an
ds
De
nm
ark
Sw
itze
rla
nd
Cze
ch
Oth
er*
Source: Jupiter as at 29.02.12. The fund manager has the power to use derivatives but it is intended that these will only be used for efficient portfolio management and not for investment purposes.
Agenda
Jupiter
People
Investment philosophy
Process
Performance
Manager’s current thinking
Valuations – credit still appealing
Stock examples
19
Track record – UK-domiciled bond fund
Ranked 2nd in sector since launch (02.06.08)
Source: FE, GBP, bid to bid, net income reinvested to 31.03.12. Fund launched 02.06.08. Ranked 2 / 55 in IMA Sterling Strategic Bond sector since launch. Past performance is no guide to the future.
20
-30
-20
-10
0
10
20
30
40
50
60
Jun 08 May 09 Apr 10 Mar 11 Mar 12
% G
row
th
UK-domiciled bond fund GB 53.35 IMA Sterling Strategic Bond TR in GB 23.71
Track record: UK-domiciled bond / equity fund – fixed income component
Source: Jupiter, offer to offer to 31.12.11. Assumes TER of 1.75%. Past performance is no guide to the future.
21
80
90
100
110
120
130
140
Nov 06 Jun 07 Jan 08 Aug 08 Mar 09 Oct 09 May 10 Dec 10 Jul 11
UK-domiciled bond / equity fund 127.9 Iboxx Non Gilt Index 124.0
Track record – UK-domiciled bond fund
Performance
Source: FE, bid to bid, net income reinvested to 31.03.12. Fund launched 02.06.08. Past performance is no guide to the future.
Cumulative 1 year % Since launch %
UK-domiciled bond fund 6.4 53.4
IBOXX Stg Non Gilts All Maturities 8.8 30.5
IMA Sterling Strategic Bond sector average 5.1 23.7
Sector ranking 21 / 68 2 / 55
Discrete years 2009 % 2010 % 2011 %
UK-domiciled bond fund 42.5 11.2 4.5
IBOXX Stg Non Gilts All Maturities 10.8 8.4 6.9
IMA Sterling Strategic Bond sector average 20.8 8.1 2.7
Sector ranking 3 / 57 11 / 63 21 / 68
22
Track record – UK-domiciled bond fund
Monthly returns since launch
Source: FE, bid to bid, net income reinvested 30.06.08 to 31.03.12. Fund launched 02.06.08. The fund manager has the power to use derivatives but it is intended that these will only be used for efficient portfolio management and not for investment purposes
23
-10
-8
-6
-4
-2
0
2
4
6
8
Jun 08 Nov 08 Apr 09 Sep 09 Feb 10 Jul 10 Dec 10 May 11 Oct 11 Mar 12
% G
row
th
UK-domiciled bond fund IMA Sterling Strategic Bond TR in GB
Appendix
Portfolio thoughts – where are we now: the debt-equity clock
25
Source: Morgan Stanley Equity & Credit Strategy.
0
500
1000
1500
2000
2500
Dec 99 Dec 01 Dec 03 Dec 05 Dec 07 Dec 09 Dec 11
US High Yield European High Yield
EUR & USD HY benchmark spreads
Portfolio thoughts – high yield pricing in decent downturn in economic growth
Source: Bloomberg, JP Morgan as at 16.03.12. The above commentary represents the views of the Fund Manager at the time of the presentation and may be subject to change in the future, particularly during periods of rapidly changing market circumstances.
High yield still pricing
in a slowdown
Geographic exposure still
important here. Top down
macro fundamentals for
much of Europe still poor
Subordination continues
to be important. Still have
preference for secured
debt but parts of this
market now look rich
900bps is the magic number
26
Jupiter’s fixed income team
John Hamilton Fund Management Director,
Jupiter Asset Management Ltd.
Current role Head, Fixed Interest Team
Current
responsibilities
Manager of two UK-domiciled bond funds and
institutional assets
1991 – Jupiter Asset Management
Head, Fixed Interest Team
1987 – 1 991 Tyndall Investment Management Ltd.
Director and Fund Manager, Fixed Interest
1981 – 1987 London Life Association
Manager, Fixed Interest
1979 – 1981 Laurie Millbank
Gilt-edged department
Qualifications Mathematics (London University)
Ariel Bezalel Fund Manager, Fixed Interest
Team
Fund Management Director
Current role Fund Manager
Current
responsibilities
Manager of UK-domiciled bond fund and fixed interest
component of two UK-domiciled bond/equity funds
1999 – Jupiter Asset Management
Fund Manager, Fixed Interest Team
1998 – 1999 Jupiter Asset Management
Assistant Fund Manager, Fixed Interest Team
Qualifications Economics (Middlesex University)
27
Jupiter’s fixed income team
Rhys Petheram Fund Manager,
Jupiter Asset Management Ltd.
Nicole Weiss Credit Analyst,
Jupiter Asset Management Ltd.
Current role Fund Manager / Credit Analyst
Current
responsibilities
Co-Manager of UK-domiciled bond fund and Manager
of the Fixed Income portion of UK-domiciled
bond/equity fund
2010 – Jupiter Asset Management
Fund Manager
2006 – 2010 Jupiter Asset Management
Assistant Fund Manager
2004 – 2006 Moody’s Investor Services
Credit Analyst, Utilities
2001 – 2004 Towers Perrin Australia (acquired by Frank Russell)
Analyst
Qualifications Bachelor of Commerce Finance
(University of Melbourne)
Diploma in Modern Languages (Indonesian)
(University of Melbourne)
Chartered Financial Analyst
Current role Credit Analyst
Current
responsibilities
Credit Analysis
2011 - Jupiter Asset Management - Credit Analyst
2010 - 2011 Jupiter Asset Management - Assistant Credit Analyst
2007 – 2010 Jupiter Asset Management
Fixed Interest Administrator, additional dealing
function from 2008 – 2010
2006 – 2007 Fidelity International, UK, Associate Bank of America
Liaison & Clearstream Settlement Department
2004 – 2006 Landeskrankenhilfe VVaG in Germany,
Associate Insurance Contract Department
2000 – 2004 Deutsche Bank AG in Germany,
Customer Consultant Retail Banking
Qualifications Graduate in Business Economics
(VWA Lüneburg, Germany)
28
Jupiter’s convertibles and multi asset team
Fund Manager:
Lee Manzi
Jupiter Asset Management Ltd.
Lee started his fund management career at JP Morgan Asset Management (formerly
Flemings) in 1998, working in the fixed income team. After spells working on the European
fixed income team and UK desk, he took over the management of the firm’s UK Sterling
accounts before joining the Global Portfolios Group in 2001 where he managed the fixed
income portion of the balanced funds
He then worked in the Global Multi Asset Group with Miles, focusing primarily on fixed
interest and convertibles
In 2006 he moved to MPC / RWC to work with Miles as a portfolio manager
In the 13 years prior to his appointment Miles built and managed global convertibles, fixed
income and multi asset franchises. In 2009, he was recognised in the Sauren Awards with
three gold medals in the convertibles category, two gold medals in the absolute return
category and two gold medals in the multi strategy international category
Having spent much of his early career managing derivative teams in the Far East, Miles
became an adviser on fixed income portfolio management and foreign exchange to the
Central Bank of Botswana in 1994. In 1997 he joined JP Morgan Asset Management
(formerly Jardine Fleming) in Hong Kong and became Head of Fixed Income, Currencies,
Convertibles and Balanced
In 2004 Miles moved to London and became Chief Investment Officer and Head of the
Global Multi Asset Group and Global Strategy Team at JP Morgan Asset Management. In
addition to building the convertibles business, he also built and managed the JPM Capital
Preservation Fund, a global multi asset absolute return fund. Miles left JP Morgan in 2006
to join RWC Partners (previously MPC Investors), where he founded and headed the multi
asset and convertibles team
Head of Team
& Fund Manager:
Miles Geldard
Jupiter Asset Management Ltd.
29
Disclosure
Jupiter Asset Management Limited (‘JAM’) is registered in England and Wales (no. 2036243).
The registered office is 1 Grosvenor Place, London SW1X 7JJ. JAM is authorised and regulated by
the Financial Services Authority in the UK whose address is 25 The North Colonnade, Canary Wharf,
London E14 5HS.
This presentation is intended for investment professionals and not for the benefit of private retail
investors. However any one attending the presentation or who has the opportunity to view the
accompanying slides should bear in mind that the value of an investment in a unit trust and the
income from it can go down as well as up. It may be affected by exchange rate variations and you
may not get back the amount invested. Initial charges are likely to have a greater proportionate effect
on returns if investments are liquidated in the shorter term. Quoted yields are not guaranteed.
Current tax levels and reliefs will depend on the nature of the holding and details are contained in the
key features documents. Past performance should not be seen as a guide to future performance.
A significant proportion of the portfolio may be held in higher yielding bonds. These have an
increased risk of capital erosion due to a higher possibility of default by the bond issuer. Changing
market conditions and interest rate levels can also have a larger impact on the values of high yielding
bonds than on other bonds. Due to the overall structure of the portfolio, the level of quarterly income
payments will not be constant and will fluctuate. Quoted yields are not guaranteed.
For your security we may record or randomly monitor all telephone calls. If you are unsure of the
suitability of an investment please contact your financial advisor. Any data or views given should not
be construed as investment advice. Every effort is made to ensure the accuracy of the information
but no assurance or warranties are given.
30
top related