Lapis Global Family Owned 50 Dividend Yield Index · TSN US Equity USD US Tyson Food 2.00 SW FP Equity EUR FR Sodexo 2.00 EL FP Equity EUR FR EssilorLuxottica 2.00 EMSN SW Equity

Lapis Global Family Owned 50 Dividend Yield Index

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Q2 – 2020

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About Us

Academic Research Partnership

Relevance of Dividend Yield


Ratios / Statistics

Contact Details and Disclaimer

Lapis Asset Management Ltd | [email protected] | www.lapis.finance

Table of Contents

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▸ Lapis Asset Management Limited is an independent and well established Swiss asset management company.

▸ The company was launched in 2010 and is domiciled in Lugano, Switzerland.

▸ The name of our company is derived from the semi-precious stone «Lapis Lazuli».

▸ The founder has over 35 years of international experience in asset management.

▸ Lapis designs and develops customized indices and funds.

▸ The performance of our strategies and investment products have been verified by several independent research studies.


About Us

5 Lapis Asset Management Ltd | [email protected] | www.lapis.finance

ANDREAS WUEGERCEO

ATHANS CALLIAFASRelationship Manager

JÖRG SCHLÜTERRelationship Manager

MARCO SCALENARelationship Manager

PROF. ERNESTO TURNESChairman, CFA

About Us

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▸We have partnered with the University of Applied Sciences in St. Gallen and its’ Competence

Centre for Banking and Finance, since 2012

▸The department is headed by Professor Ernesto Turnes (Chairman of Lapis Asset Management Ltd)

▸Together we create new ideas for tailor-made equity indices

▸We conduct independent research studies to examine the attractiveness of Lapis’ dividend yield

mandates

▸We test the quality of the stock selection criteria


Academic Research Partnership

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Performance Contributor

A large percentage of the actual total return is attributed to dividend yield payments.

Risk Reduction

Dividend paying stocks are historically less volatile than non-dividend paying stocks.

Steady Cash Flows

The lower volatility of dividends compared to earnings allows for predictable and steady cash flowsfor investors.



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1970 1980 1990 2000 20101960

4500.00

3000.00

1500.00

0.00

5451.09

2772.35

S&P 500 Level

S&P 500 Total Return Level


Relevance of Reinvestment of Dividend

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5.10% 3.30% 4.20% 4.40% 2.50% 1.80% 2.20% 3.40%

13.60%

4.40% 1.60%12.60%

15.30%

-2.70%

11.60%7.70%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

1950s 1960s 1970s 1980s 1990s 2000s 2010-2017 1950-2017

Capital Appreciation

Dividends

S&P 500 total return: Dividends vs. Capital Appreciation

AVERAGE ANNUALIZED RETURNS



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1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

$ 1,000 - $ 10,000

$ 10,000 - $ 100,000

$ 100,000 - $ 1,000,000

Dividend Yield Return Beta

Highest 12.6% 0.93

High 12.4% 0.83

Mid 9.7% 0.92

Low 9.1% 1.07

Lowest 9.6% 1.24

S&P 500 Index 10.4% 1.00

$ 307,868

$ 970,606$ 855,859

$ 153,502$ 200,895$ 211,633


Outperformance of Dividend Yield Strategies vs S&P 500

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▸ The Lapis Global Family Owned 50 Dividend Yield Index is composed of 50 equally weighted mid and large cap

stocks.

▸ It only includes Families Owned companies based in developed countries with a minimum of USD 5 billion of

market capitalization.

▸ Companies must have a minimum of 10 years of uninterrupted and continuously increasing dividend payments.

▸ The application of our algorithms and the rebalancing takes place on a quarterly basis (end of March, June,

September, and December).

▸Our Global Family Owned 50 dividend yield index enables investors to generate risk premia for different risk

factors such as dividend yield, quality, and value.

Description



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Systematic Stock Market Screening

Portfolio Construction

Semi-Active Management

Performance Measurement

Reporting

Lapis Family Owned Elite Stock List

▸Quarterly rebalancing

▸Dividend reinvestments

▸Stock substitution

▸Equal stock weighting

▸Performance analysis

▸Calculation of ratios

▸Regular reports

▸Client updates and meetings

▸50% Dividend yield

▸25% Market capitalization

▸25% CAGR of the dividends over the last 10 years

Quarterly selection of all Family Owned companies based in developed countries with the following criteria:

▸Market capitalization

▸Continued Dividend Payments

▸No Dividend cuts or decrease

▸Family Owned companies, at least one of the two criteria

1. direct and/or indirect shareholding

by founders or descendants > 20%

2. direct and/or indirect voting rights heldby the founders or descendants > 20%

Lapis Global Family Owned 50 List

▸High quality stocks

▸Dividends reinvested

▸No currency hedging

Stock Selection Criteria


Investment Process and Selection Criteria

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▸ Companies can be delisted from the ‘Lapis Elite Stock List’ as they announce a

diminution / elimination of their dividend payments

▸ If the company is included in the Lapis Global Family Owned 50 we will sell

the company during the quarterly rebalancing process

▸ In an unlikely case when a company underperforms the Lapis Index by more

than 20% or we become aware of any contingent liability (e.g. a serious legal

case against a company) the manager reserves sells the stock before the

quarterly rebalancing process

▸ Proceeds of any sale during a quarter can be held in cash until the next

quarterly rebalancing


Risk Management

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20.0%

16.0%

14.0%10.0%

40.0%

US

FR

HK

CH

Others

26.0%

22.0%14.0%

8.0%

30.0%

EUR

USD

HKD

CHF

Others

Portfolio composition

10 COMPONENTS AS OF 01.04.2020

COMPOSITION BY CURRENCIES

Ticker Currency Country Company Weight (%)

TSN US Equity USD US Tyson Food 2.00

SW FP Equity EUR FR Sodexo 2.00

EL FP Equity EUR FR EssilorLuxottica 2.00

EMSN SW Equity CHF CH EMS-Chemie 2.00

RI FP Equity EUR FR Pernod Ricard 2.00

3 HK Equity HKD HK Hong Kong China Gas 2.00

2 HK Equity HKD HK CLP Holdings 2.00

PGHN SW Equity CHF CH Partners Group 2.00

INVEB SS Equity SEK SW Investor 2.00

POW CN Equity CAD CA Power Corporation of Canada 2.00

COMPOSITION BY COUNTRIES

Breakdown-Lapis Global Family Owned 50 Dividend Yield Index


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Remarks: The Total Return Index is calculated with dividends reinvested. The index chart may be partly comprised of historical performance illustration based on a back testing.

Performance

2008

20142015

20162017

2018

300

250

200

150

100

50

2019

2009

2010

2011 2012

2013

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-28.20% 37.63% 23.32% 3.19% 27.11% 23.62% 7.43% -1.39% 7.08% 27.01% -7.08% 23.79%



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Statistics - Lapis Global Family Owned 50 Dividend Yield Index


03.04.2020

USD 30D 90D 180D 360D YTD Since Inception

Performance -19.2% -24.4% -17.0% -18.6% -24.6% 174.6%

Performance (p.a.) - - - - - 7.9%

Volatility (p.a.) 53.2% 33.6% 24.7% 18.9% 32.8% 14.7%

High 343.15 374.23 374.23 374.23 374.23 374.23

Low 254.21 254.21 254.21 254.21 254.21 64.33

Sharpe Ratio -1.76 -2.06 -1.32 -1.05 -2.06 0.47

Max. Drawdown -25.9 -32.1% -32.1% -32.1% -32.1% -45.3%

VaR 95/99 -28.0% / -82.0% -22.0% / -43.1%

CVaR 95 / 99 -58.4% / -117.6% -36.4% / -64.3%

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Market Ratios 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

P/E

Lapis Global Family Owned 50 DY Index 12.68 22.34 15.52 14.52 15.95 15.67 18.25 14.52 16.96 15.57 12.27 15.65

MSCI World Index (Benchmark) 15.43 21.19 15.14 12.77 15.87 19.32 17.87 20.07 21.91 21.47 15.64 20.60

P/E ESTIMATED


MSCI WorldIndex (Benchmark) 10.85 14.14 12.53 11.07 12.46 14.86 15.53 15.76 15.23 16.88 13.42 16.96

P/B



P/S



EV/EBITDA



Ratios - Lapis Global Family Owned 50 Dividend Yield Index


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Financial Ratios 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

DEBT/EQUITY



Performance Measures 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SHARPE RATIO

Lapis Global Family Owned 50 DY Index -1.33 1.69 1.47 0.17 1.97 2.04 0.92 -0.12 0.51 3.74 -1.00 2.03

MSCI World Index (Benchmark) -1.64 1.17 0.74 -0.26 1.20 2.47 0.60 -0.03 0.59 3.50 -0.84 2.28

JENSEN ALPHA

Lapis Global Family Owned 50 DY Index 4.6% 11.2% 11.3% 7.4% 10.3% -1.4% 3.2% -1-1% -0.1% 6.8% -3.1% 19.5%

INFORMATION RATIO

Lapis Global Family Owned 50 DY Index 1.41 0.54 1.57 1.25 1.87 -0.60 0.40 -0.17 -0.16 0.78 0.11 -0.67



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Risk Measures 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

VOLATILITY

Lapis Global Family Owned 50 DY Index 25.62% 18.59% 14.56% 17.90% 12.03% 10.38% 7.82% 11.47% 12.71% 6.18% 9.72% 9.5%

MSCI World Index (Benchmark) 33.25% 23.27% 16.70% 21.63% 12.68% 9.80% 9.11% 13.22% 12.84% 5.80% 12.88% 10.3%

BETA

Lapis Global Family Owned 50 DY Index 0.73 0.76 0.83 0.81 0.90 0.94 0.75 0.78 0.89 0.82 0.63 -0.01

TRACKING ERROR


MAXIMUM DRAWDOWN

Lapis Global Family Owned 50 DY Index -42.90%

MSCI World Index (Benchmark) -54.90%



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Dividend Policy 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

DIVIDEND YIELD



DIVIDEND YIELD ESTIMATED





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Risk-Adjusted Performance

Our equity investments generatean attractive relationship betweenrisk and return.

Transparency

The components and the selectioncriteria of our equity investmentsare completely transparent.

Liquidity

All stocks of our equity investmentsoffer a high liquidity during normalmarket conditions.

Diversification

We rely on high quality value stocksof different sectors and regions tobenefit from diversification.

Rebalancing

Quarterly rebalancing and equalweighting of the stocks reduce therisk of our equity mandates.

Rule-Based Investing

The systematic stock selection isbased on unique and reliablecriteria to avoid emotional traps.


Advantages of Lapis Dividend Yield Investments


Via Collina 9

CH-6962 Lugano

Switzerland

Tel: +41 91 971 16 93

Fax: +41 91 971 16 94

[email protected]

www.lapis.finance

LAPIS ASSET MANAGEMENT LTD

Contact Details


▸ This document is issued and approved by LAPIS Asset Management Ltd(regulated by the Swiss Association of Asset Managers)

▸ The following information is important and you should read thoroughly ifyou are unclear at any time as to the purpose of this document.

▸ Although information in this document has been obtained from sourcesbelieved to be reliable, Lapis Asset Management Limited does not rep-resent or warrant its accuracy, and such information may be incomplete orcondensed.

▸ All estimates and opinions in this document constitute our judgment as ofthe date of the document and may be subject to change without notice.

▸ Lapis Asset Management Limited will not be responsible for the conse-quences of reliance upon any opinion or statement contained herein orfor any omission.

▸ This document is for the use of Lapis Asset Management Limited andregistered Associates and may not be reproduced or disclosed (in wholeor in part) to any other person without our prior written permission.

▸ The value of investments and the income derived from them can fall as wellas rise, and past performance does not guarantee or predict future per-formance.

▸ Investment products may be subject to investment risks, involving but notlimited to currency exchange, market risks, counterparty risks, fluctuationsin value and, where applicable, possible loss of principal invested.

▸ The manner in which this document is distributed may be restricted byregulation or law in certain countries and persons who come into possessionof this document should inform themselves of and observe any restrictions.

▸ This document does not constitute an offer to sell, solicit or offer to buy anyinvestment product, and is not intended to be a final representation of theterms and conditions of any product.

▸ The investments mentioned in this document may not be suitable for allrecipients and you should seek professional advice if you have any doubts.

▸ Clients should obtain legal advice and taxation advice suitable to their par-ticular circumstances.

▸ Clients understand that equity investing can be a risky endeavour and noneof the Lapis group companies can be held liable for losses incurred in thecourse of investing on behalf of clients.

Disclaimers

Lapis Global Family Owned 50 Dividend Yield Index · TSN US Equity USD US Tyson Food 2.00 SW FP Equity EUR FR Sodexo 2.00 EL FP Equity EUR FR EssilorLuxottica 2.00 EMSN SW Equity

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