OFI Fund - RS Act4 Positive Economy Investing with a positive impact NOVEMBER 2020 Béryl BOUVIER DI NOTA Deputy Head European Equities Head of Impact Investing Marketing communication relating to OFI Fund, SICAV under Luxembourg law and UCITS in accordance with the European Directive 2009/65/EC, as amended and supplemented, and more particularly its Sub-fund RS Act4 Positive Economy. It is addressed to institutional investors in Austria (AT) and Germany (DE) Not appropriate for U.S. Persons. WEBINAR Strategic Partner of
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OFI Fund - RS Act4 Positive EconomyInvesting with a positive impact
NOVEMBER 2020
Béryl BOUVIER DI NOTA
Deputy Head European Equities
Head of Impact Investing
Marketing communication relating to OFI Fund, SICAV under Luxembourg law and UCITS in accordance with the European
Directive 2009/65/EC, as amended and supplemented, and more particularly its Sub-fund RS Act4 Positive Economy. It is
addressed to institutional investors in Austria (AT) and Germany (DE) Not appropriate for U.S. Persons.
WEBINAR
Strategic
Partner of
Strategic Partner of
OFI AM a leading player in SRI
Source: OFI Asset Management. As of June 2020.
November 2020 - OFI Fund - RS Act4 Positive Economy 2
AUM: 72bn€
300 professionals
20 years of SRI expertise and 50 years in asset
management
PRI assessment: A+
3/4 OFI Group’s assets under management
are managed according to an SRI process
An expertise present within the Group across all
strategies
OFI AM
Active and engaged
Participant
Member
Signatory
Support
OFI Asset Management is rated
PLATINIUM in the TELOS ESG Check
2
Strategic Partner of 3
Impact InvestingA new vision of Responsible Investing (SRI)
We must take changeby the hand or rest
assuredly change willtake us by the throat
Sir Winston Churchill
November 2020 - OFI Fund - RS Act4 Positive Economy
Strategic Partner of
We are facingnew challenges
44November 2020 - OFI Fund - RS Act4 Positive Economy
Recycle 100 %
of plastics
in France by 2025
Provide access to
drinking water and
electricity to a greater
number of people
Reduce greenhouse
gases by 40%
by 2030
Reduce inequalities
and promote
women's work
Limit global
warming to 2°C
Enhance personal
safety in cities and
on roads as well as
personal data
Increasing
renewables
in the energy mix
Developing
clean mobility
Develop the care of
dependent seniors
Strategic Partner of
Impact Investing, a new vision of responsible finance
55November 2020 - OFI Fund - RS Act4 Positive Economy
Mainstream: approach to profitability
Exclusion of controversial sectorsEthic
ESG integrationPractices
Sustainable themeBusiness
Impact InvestingBusinessSearch for
positive
externalities
Reduce
negative
externalities
Strategic Partner of
Investment philosophy
November 2020 - OFI Fund - RS Act4 Positive Economy 6
Investing in the Positive Economy
with a double objective of
generating a positive social and environmental impact
aligned on the themes of the UN SDG’s
and delivering a sustainable performance
Strategic Partner of
The Positive EconomyLooking for a positive impact around 4 themes
November 2020 - OFI Fund - RS Act4 Positive Economy 7
Sub-themes are merely examples and not exhaustive
Many fields for engagement in sustainable development
60 sub-themes are identified in the positive economy universe and 330 stocks
Positive
Economy
PROTECTION OF
NATURAL RESOURCE
18 %
• Circular economy
• Waste recycling
• Innovation/Eco-design
• Clean water and water purification
• Fight against deforestation…
HEALTH / WELL BEING / SAFETY
20 %
• Healthy food
• Combating diseases
• Prevention & diagnosis
• Safety of persons and systems
• Eldercare…
ENERGY TRANSITION
44 %
• Renewable energy
• Energy efficiency
• Green buildings
• Clean and low-carbon mobility
• Clean-tech…
SOCIAL INCLUSION
18 %
• Access to basic products(food, electricity, education.
employment, housing,
infrastructure…)
• Education and training
Strategic Partner of November 2020 - OFI Fund - RS Act4 Positive Economy
Investment Process
Investable Universe1.859 European stocks
Filter on Sustainable Development ThemesControversial activities excluded
Positive Economy Universe330 stocks
ESG Filter
Energytransition
Health / Well being / Safety
Protection of natural ressources
Social inclusion
Best candidates
40-60 stocks
Responsible Universe
of the Positive Economy
Construction of
Positive Economy Portfolio
Financial filter
88
Strategic Partner of
A holistic visionFundamental multi-disciplinary analysis
For illustrative purposes only
November 2020 - OFI Fund - RS Act4 Positive Economy 99
* Sustainable Development Goals fixed by the UN
OPPORTUNITY
ANALYSIS
Analysis
ESG
Positive
Contribution
Impact
measure
Financial
analysis
RISK
ANALYSIS
Meeting with companies
Investment themes
Screening
Change drivers
Management team, regulation
Company analysis worksheets
Analysis of the
company's societal ambition
and corporate purpose
Analysis of the company's
outcomes and impacts aligned
on the SDGs
Strategic Partner of November 2020 - OFI Fund - RS Act4 Positive Economy 10
16% of the global population do not have access to
mobile broadband networks. (UN)
Investment Case
• Incumbent operator in the Nordics (41% of
revenues) with exposure in emerging & developped Asia with
Grameenphone in Bengladesh, Digi in Malaysie, Dtac in
Thaïlande, Mayanmar (Wavemoney)
• Long term supportive catalysts : growing mobile subscriptions, in
creased broadband traffic, growth in connected devices (post-
covid effect)
• Opportunities in Asian markets to drive digital
inclusion and enable economic growth as they lag developped m
arkets with growing profitability
• Potential M&A : Telenor does not rule out the possibility
of further growth in Asia
• Attractive valuation compared to history
• Net dividend yield : 6.0% in 2020E (above sector average)
Financial criteria
Capitalisation 19.2bn€
Valuation
P/E 20e 16.4X P/E 21e 14.3X
Earnings growth
2020e +3% 2021e +15%
Positive Economy Theme
1. SOCIAL INCLUSION
• Mission: “Connecting you to what matters most.
Empowering societies. “
• Social inclusion thanks to telecommunications
• High intentionality: Good integration in the strategy and the
governance.
2. POSITIVE CONTRIBUTION
• 56% of revenues
SDG Impact
3.4M people in 2019 were given access to financial services
through their mobile phone (Malaysia. Myanmar. Bangladesh)
7.9M farmers use online services helping them to increase
revenues (Pakistan and Thailand)
200 000 additional births registered in 2019 in Pakistan
ESG Analysis Category Leader
Challenges
• Access to products and services
• Protection of personal data
• Industrial relations
✓✓✓✓✓
✓✓✓✓
✓✓✓✓✓
Governance
• Structure
• Behavior
✓✓✓✓✓
✓✓✓✓
Controversies AVERAGE
For illustrative purposes only. Any reference to a specific company or security does not constitute a recommendation to buy. sell. hold or directly invest in the company or securities.
It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document.
May not be representative of the Fund's past or future portfolio of investments as a whole.
Source: OFI AM, financial ratios as of 10/30/2020 Source: OFI AM, ESG analysis as of T4 2020
Strategic Partner of
Source: OFI AM, 09/30/2020
For illustrative purposes only. Holdings/allocations are subject to change. The above themes are examples and are not limitative.
Sub-themes are merely examples and not exhaustive
Themes breakdown
11
ENERGY
TRANSITION 43%
RENEWABLE ENERGY 11%
ENERGY EFFICIENCY
AND LOWER CONSUMPTION 32%
PROTECTION
OF NATURAL
RESSOURCES 19%
NATURAL RESOURCES 10%
CIRCULAR ECONOMY 9%
HEALTH. SAFETY
WELL BEING 20%
SECURITY 3%
HEALTH. NUTRITION 17%
SOCIAL
INCLUSION 18%
ACCES TO BASIC PRODUCTS
AND SERVICES 18%
November 2020 - OFI Fund - RS Act4 Positive Economy
Strategic Partner of
Business Impacts 2019 impacts of business activity
Source: OFI AM, 08/31/2020
For illustrative purposes only. Holdings/allocations are subject to change. The above themes are examples and are not limitative.
Sub-themes are merely examples and not exhaustive
November 2020 - OFI Fund - RS Act4 Positive Economy 12
ENERGY
TRANSITION
129,819,565 TONNES (EQ.) OF CO2
SAVED OR STORED
9,930,000ADDITIONAL PEOPLE
WITH ACCESS TO CLEAN ENERGY
PROTECTION
OF NATURAL
RESSOURCES
5,600,000,000M3 OF SANITIZED
OR DEPOLLUTED WATER
2,182,700TONS OF SAND AVOIDED
THANKS TO GLASS RECYCLING
463,950TONS
OF RECYCLED PLASTICS
HEALTH. SAFETY
WELL-BEING
470,000 BENEFICIARIES FROM
HEALTH OR SAFETY SOLUTIONS
800,000,000BENEFICIARIES FROM
HEALTHY NUTRIENTS
SOCIAL
INCLUSION
110,000,000FRAGILE BENEFICIARIES
WITH ACCESS TO A PRODUCT
IMPROVING THEIR HEALTH
650,000PEOPLE WITH EASY ACCESS
TO RESEARCH ARTICLES
4,900,000PEOPLE WITH EASIER ACCESS
TO BASIC FINANCIAL SERVICES
Strategic Partner of
ESG impacts as of 10/30/2020
November 2020 - OFI Fund - RS Act4 Positive Economy 13
Source: OFI AM Source: OFI AM
Source: OFI AM
ESG Ratings
Female share of seats on boards
SRI rating categories
Figures show share of portfolio - may change.
13%
18%
21%
20%
28%
0%
11%
14%
23%
53%
Under
Surveil lance
Unclear
Follower
Committed
Leader
Fund Benchmark
7,3
5,4
6,4
6,2
7,6
6,1
6,6
6,9
G
S
E
ESG
Fund Benchmark
35,4%
37,9%
Benchmark
Fund
Strategic Partner of
Performances as of 10/30/2020
Source: OFI AM, GI Shareclass net of management fees.
Performance since inception
November 2020 - OFI Fund - RS Act4 Positive Economy 14
01/26/2018 – 10/30/2020
OFI Fund - RS Act4 Positive Economy GI EUR Share Class
Stoxx Europe 600 Net Return
The performance data presented are not indicative of future values. These data are calculated in the currency of the share class, dividend reinvested. They are net of fees with the
exception of entry and exit fees. Where the values are denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an
adverse effect on prices and incomes. Stoxx Europe 600 Net Return is the reference benchmark for this share class. This benchmark is provided for informational purpose only. No
benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund it is compared to.
Source: Europerformance, GI Share Class, performance net of management fees
OFI Fund - RS Act4 Positive Economy GI EUR Share Class 5,99% 27,13% 10,37%
Stoxx Europe 600 NR -16,07% 26,82% -7,70%
Strategic Partner of
Key takeaways
The fund obtained the French SRI* label in 2019
The fund is ranked 1st quartile YTD, 1 and 3 years **
A conviction-based investment process
A multi-thematic approach to select best opportunities exposed to
structural mega-trends
Investing in the Positive Economy fund means supporting sustainable
development by generating environmental and social impact in addition
to financial return
1515November 2020 - OFI Fund - RS Act4 Positive Economy
* Sustainable Responsible Investment
** Source: Europerformance – Rankings of the “European Equity - Global” Category as of 11/13/2020. IC Share Class since 07/13/2017 (change of strategy)
For illustrative purposes only. Holdings/allocations are subject to change.
There can be no assurance that the investment objective will be achieved or that there will be a return on capital.
Strategic Partner of
Portfolio construction
November 2020 - OFI Fund - RS Act4 Positive Economy 16
Buy/sell discipline Diversification rules Characteristics as of 11/18/2020
• EPS growth/momentum
• Potential performance or re-
rating
• Attractive valuation
• Solid balance sheet, FCF
generation
• Liquidity risk
• Excessive valuation
• Fundamental deterioration
• Loss of confidence in
management/strategy
• Better market opportunity
• SRI category deterioration
and/or high controversies
• 40-60 positions
• Weight: SRI category,
performance/risk profile,
liquidity
• Active bet : max 5%
• Sector diversification: no
deviation constraints
• Currency risk: unhedged
• Tracking error range: 3/8 %
• AUM : 129M€
• Number of stocks : 49 stocks
• Top 10 : 34%
• Median market capitalization :
19,9 Bn€
• Equity exposure: 99%
Strategic Partner of
Administrative characteristics for Germany and AustriaOFI Fund - RS Act4 Positive Economy
November 2020 - OFI Fund - RS Act4 Positive Economy 17
Legal form Sub-fund of a Luxembourg SICAV (open-ended investment company)
Management company OFI LUX – Delegation to OFI Asset Management
Recommended investment period 5 years minimum
Creation date January 25. 2018
Currency Euro
ISIN codes GI EUR Share Class : LU1753039285
GR EUR Share Class : LU1753039368
Depositary SOCIETE GENERAL BANK TRUST Luxembourg
Pricing agent SOCIETE GENERAL BANK TRUST Luxembourg
Appropriation of income Capitalisation/Distribution
Valuation Daily
Subscription/redemption Cut-off at 12h on business days that are not bank holidays (N+1) Order placed at last NAV known (N)
Settlement N+3
Entry fee 3% (incl. taxes) maximum
Ongoing management fees GI EUR Share Class: 1.10%
GR EUR Share Class: 1.99%
Outperformance fee N/A
Exit fee N/A
Main risks Loss of capital. equities and markets. discretionary. counterparty. small caps. currency
Information agent Germany: OLDENBURGISCHE LANDESBANK AG Stau 15/17. 26122 Oldenburg
Austria: RAIFFEISEN BANK INTERNATIONAL AG Otto Wagner Platz 5 1090 Wien
Strategic Partner of
Contact us
November 2020 - OFI Fund - RS Act4 Positive Economy 18