Sept 2012 efgam apei pitchbook citywire

New Capital Asia Pacific Equity Income Fund

FOR INSTITUTIONAL INVESTORS ONLY

New Capital

Asia Pacific Equity Income Fund

September 2012




EFG Asset Management

An independently managed subsidiary of EFG International.

EFG International AG is part of the EFG Bank European Financial Group and has a strong capital base, as illustrated by a Tier 1 Capital Ratio of 13%.

EFG Asset Management (EFGAM) is an independently managed subsidiary of EFG International and a provider of investment products and services to institutional and individual investors worldwide.

As a global private bank headquartered in Zurich, EFG International AG has a comprehensive service offering in the areas of private banking and wealth management.

EFG International AG and its subsidiaries currently operate in 50 locations in 30 countries, with over 2400 employees. EFG International's registered shares (EFGN) are listed on the SIX Swiss Exchange.



3

Specialist Strategies for Thoughtful Investors

EFGAM is an international advisor delivering leading investment solutions for clients worldwide. With $7 billion in assets under management, we have 94 professionals around the world.

Our range of funds span a broad spectrum of investment options with over $1.2 billion in assets.

We offer a wide range of investment solutions reflecting the varied needs and preferences of our clients.

Our clients can access our investment solutions through a variety of product structures, including individual and institutional separate accounts, mutual funds and other pooled investment vehicles.

Figures as at 31 December 2011



The aim is to achieve both capital appreciation and a high dividend yield in strong currencies.

4


► Asia Pacific high dividend stocks have strong historical performance and low volatility

► Asia offers relatively strong balance sheets and growth opportunities

► Dividends are growing faster than in more developed markets

► Regional currencies are likely to appreciate against the US$, due to better fundamentals

► Universe of Asia Pacific stocks paying dividends is increasing rapidly

► Portfolio aims to produce at least 1.5x market yield, for absolute return and yield reasons

► Portfolio holdings have “quality” bias and a minimum market capitalisation to ensure liquidity

► Diversification between countries and sectors

Philosophy:

Background:



Dividend Yields Have Done Best in Asia

Source: Factset, DataStream, CLSA Asia-Pacific Markets5

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Japan

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Europe



MSCI Asia ex-Japan – Dividend yield Cumulative Performance

MSCI-weighted US Dollar total return with quarterly rebalancing for MSCI UniverseSource: Factset alpha Tester, CLSA Asia-Pacific Markets

6



High Dividend Yield vs Growth

7Q1 is the quartile with the largest value of that factor, Q2 is the second largestSource: Citi Investment Research and analysis

High yield outperforms fastest growing stocks



Outperformance of High Dividend Stocks

Asia-Pacific companies with dividend yield greater than 1.5x industry median

► Not only are stocks defensive but they outperform on the way up as well

► Outperforming strategy in Asia-Pacific in 5,10 and 20 years

Source: Index includes Asia Pacific companies with dividends which are 1.5x that of the Benchmark. Compiled by EFGAM8

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The Investible Universe

MSCI Asia Pacific Ex-Japan



Dividends & Cashflow

9



Portfolio Characteristics as at 31July 2012

Indicative Valuations

AUM: $50 million

(31/07/2012)

Average Market Cap:$26.9bn

Concentrated portfolio of 40-50 stocks

► Greater China:47%

► Financials:40%

Source: Bloomberg, Factset, Citi Research, EFG.

3.353.552.6712.0310.9513.87MSCI Asia Pacific ex Japan

5.455.685.3910.4210.5010.74New Capital Asian Pacific Equity Income Fund

2012E201120102012E20112010

YieldP/E Ratio

Indicative valuations are based on Earnings and Yield estimates from Factset consensus earnings and yield estimates on a weighted average basis, and do not reflect commissions, fees or other charges. Fund inception: 14 January 20112012 are estimates

10



Performance of Asia Pacific Equity Income Bond Fund

Past performance is not necessarily a guide to the future.Data as at end July 2012

Performance

Date of inception 14 January 2011

Source: New Capital Fund Management, Bloomberg

Returns may increase or decrease as a result of currency fluctuations. Performance is net of fees

11

New Capital Asia Pacific Equity Income Fund– Class A USD

MSCIAsiaPacific Ex Japan



12

Weightings vs. Benchmark

SectorGeography

Diversification between Countries and Sectors

Source: Factset, Citi Research, EFG. Data as at 30 June 2012

0.0%

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45.0%

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MSCI Asia Pacific ex-Japan

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Austra

lia

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Hong K

ong

India

Indonesia

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ysia

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Philip

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MSCI Asia Pacific ex-Japan



Why Now?

► High dividend yield stocks attractive against Asian Government bond yields

► In an environment of negative real interest rates we expect investors to switch to stocks from fixed income

► Reversal of tightening policies due to external events

► Asia ex-Japan leverage remains low relative to history

► Strong balance sheets lead to mergers, buybacks and increased dividend payments

► Banks offer an attractive investment in Asian consumer growth

► Telecoms have undemanding valuations and renewed growth from data usage

► Technology stocks in Taiwan offer an attractive combination of yield and growth

2012 Themes

13



Dividend Yields Attractive Relative to Asian Bond Yields

Source: Merrill Lynch

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1

Asian Bonds Asian Equities

14



Financial Services

► Preferred exposure to the Asian Consumer

► Structural increase in loan growth/mortgages/fee income

► In Asia bank fundamentals are sound

► Increased market share from overseas Banks

Trailing PB Banks vs Consumer Staples

Source: Credit Suisse15

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Banks

Consumer Staples



Telecoms

M1 Singapore (M1 SP)

- Fibre broadband expansion due to National Broadband Network

- Smartphone/Tablet take up leading to increase data revenue

- Likelihood of capital management leading to special dividends

- Attractive valuations

2010 2011 2012

P/E 15.6 15.0 13.6

Yield 5.2% 6.7%* 5.7%

* Including special dividend yield

► Renewed growth in developed markets due to increase in data traffic

► Smartphone effect (increase in ARPU/broadband internet)

► Emerging market of SE Asia still under penetrated

► In some markets capex is declining leading to greater dividend payouts

16



Appendix

17



Fund Overview

Fund Structure UCITS IV – Dublin

Designated Currency USD

Custodian HSBC Institutional Trust Services (Ireland) Limited

Investment Manager EFG Asset Management

Subscriptions GAM Fund Management Limited

George’s Court, 54-62 Townsend Street, Dublin 2, Ireland

T: +353 (0) 1 609 3927 F: +353 (0) 1 611 7941

SGD$10,0001.5%B6VTV59IE00B6VTV593IncomeSGD Class G

US$5,000,0000.9%B60RYK0IE00B60RYK03IncomeUSDClass I

US$10,0001.5%B4YC7V9IE00B4YC7V94IncomeUSD (CNY Hedge)Class F

B3M6FR8

B3M4GP7

B3PHBL4

Sedol

1.5%

1.5%

1.5%

Management Fee

GBP10,000

€10,000

US$10,000

Minimum Investment

IE00B3M6FR88

IE00B3M4GP73

IE00B3PHBL43

ISIN

Income

Income

Income

Income or Accumulative?

GBP

EUR

USD

Currency

Class A

Class C

Class B

New Capital Asia Pacific Equity

Income Fund

18



19

Tony Jordan

1996 - 2009: Co-founded Atlantis Investment Management, an investment management boutique specialising in Asian Equities

► Between 2000-2009, senior fund manager for Atlantis Asian Recovery Fund and Special Situations fund

1984-1996: Schroders Asia Limited, Hong Kong, Director

► 1986-1996: Fund Manager of Schroder Far Eastern Growth Fund

► 1993-1996: Fund Manager of Schroder Asian Smaller Company Fund

Holds a BSc (hons) in Economics from the London School of Economics

Possesses over 30 years of investment management experience.



Investment Team

Specialist Asia Pacific investment team with a local presence.

The investment team, based in London and Hong Kong are supported by a wider team of quantitative analysts and the macroeconomic researchers.

Highly interactive idea generation, formal and informal discussions between the teams.

Tony Jordan, who lived in Asia for 14 years, makes 4-5 visits to the region to meet with company management and undertake other qualitative analysis.

20

Quantitative Analysis

Investment Management

Macro-economic Strategy



21

Important Disclaimers

The following information is very important, and you should read it carefully and let us know if there is anything that is unclear to you.

For the purpose of distribution to Institutional Clients, which are defined as those non-Retail Clients falling within the UK Financial Services Authority’s categories of Professional Clients or Eligible Counterparties, this document has been approved and issued by EFG Asset Management (UK) Limited, which provides, manages and administers the products described herein.

This document has been approved solely for distribution in the United Kingdom and is intended for the private use of the clients and investors of EFG Private Bank Limited and EFG Asset Management (UK) Limited – its publication or availability in any other jurisdiction or country may be contrary to local law or regulation and persons who come into possession of this document should inform themselves of and observe any restrictions. This document may not be reproduced or disclosed (in whole or in part) to any other person without our prior written permission.

This document does not constitute an offer to sell, solicit or offer to buy any investment product or service, and is not intended to be a final representation of the terms and conditions of any product or service. The investments mentioned in this document may not be suitable for all recipients and you should seek professional advice if you are in doubt. Clients should obtain legal/taxation advice suitable to their particular circumstances.

Although information in this document has been obtained from sources believed to be reliable, neither EFG Private Bank Limited nor EFG Asset Management (UK) Limited represents or warrants its accuracy, and such information may be incomplete or condensed. All estimates and opinions in this document constitute our judgment as of the date of the document and may be subject to change without notice. We will not be responsible for the consequences of reliance upon any opinion or statement contained herein, and expressly disclaim any liability, including incidental or consequential damages, arising from any errors or omissions.

The value of investments and the income derived from them can fall as well as rise, and past performance is no indicator of future performance. Investment products may be subject to investment risks, involving but not limited to, currency exchange and market risks, fluctuations in value, liquidity risk and, where applicable, possible loss of principal invested.

Issued to Institutional Clients by EFG Asset Management (UK) Limited, which is authorised and regulated by the Financial Services Authority. Registered No.7389746. Registered address: EFG Asset Management (UK) Limited, Leconfield House, Curzon Street, London W1J 5JB, United Kingdom, telephone +44 (0)20 7491 9111.

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