Q1 2014 USD KBI Water Strategy Summary Details Inception Date Benchmark Assets under Mgmt. Number of Stocks Annualised Performance ($) 05 Dec 2000 MSCI World Net Return Index $1.3bn 38 Risk Characteristics Beta (10 Yrs) Information Ratio (10 Yrs) 1.07 0.83 Portfolio Statistics Current Dividend Yield Price to Earnings (forward) Price to Book Weighted Avg Market Cap. Strategy Index 2.2% 2.5% 16.9x 14.8x 2.2x 1.9x $6.3bn $80.9bn . Source: Kleinwort Benson Investors as of 03/31/14. The risk characteristics are calculated using monthly gross returns over a 10 year period relative to the MSCI World Index. The AUM listed above is Water Strategy AUM. 3Mths YTD Strategy 4.2 4.2 (Gross) Strategy (Net) 4.0 4.0 MSCI World 1.3 1.3 Net Return Index S-Network 4.3 4.3 Global Water Index Source: Kleinwort Benson Investors, Datastream, MSCI as of 03/31/14. 1Yr 3Yrs 5Yrs 10Yrs 25.2 16.4 23.3 12.4 24.4 15.6 22.5 11.6 19.1 10.2 18.3 6.8 23.6 11.2 18.7 11.9 Returns are gross of fees in USD. Returns up to 09/30/07 are based on a Belgian Fund which followed the same strategy as the Kleinwort Benson Investors Water Strategy and was managed by KBI. Returns from 10/01/07 are actual returns from the Kleinwort Benson Investors Water Strategy. ‘The S-Network Global Water Indexes℠ are calculated, distributed and marketed by S-Network Global Indexes, LLC which have been licensed for use. All content of the S-Network Global Water Indexes℠ © 2011 are the intellectual property of S-Network Global Indexes, LLC.’ Gross results shown do not show the deduction of Adviser's fees. A client’s actual return will be reduced by the advisory fees and any other expenses which may be incurred in the management of an investment advisory account. See Part 2 of Adviser's Form ADV for a complete description of the investment advisory fees customarily charged by Adviser. Kleinwort Benson International will provide net performance figures for any account size on request. The performance results are that of a representative strategy which has been managed on a discretionary basis since its inception. Performance returns for individual investors may differ due to the timing of investments, subsequent subscriptions/redemptions, share classes, fees and expenses. Performance for periods of more than 1 year is annualized. Information about indices is provided to allow for comparison of the performance of the Adviser to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index, which also does not take into account trading commissions and costs. Investments denominated in foreign currencies are subject to changes in exchange rates that may have an adverse effect on the value, price and income of the product. Income generated from an investment may fluctuate in accordance with market conditions and taxation arrangement. PAST PERFORMANCE IS NOT A RELIABLE GUIDE TO FUTURE PERFORMANCE AND THE VALUE OF INVESTMENTS MAY GO DOWN AS WELL AS UP. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a Investment Thesis There are compelling investment opportunities in companies providing solutions to resource scarcity across water, food and energy driven by five long term trends. tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. A composite presentation is available upon request.Net results shown are net of all fees and expenses and include the reinvestment of all dividends and capital gains. In order to present meaningful performance results, the performance results reflected above were calculated by adjusting the gross performance by the fee structure that is available to U.S. clients. Inadequate supply of water, cleaner energy and arable land for farming Increasing demand for resources, driven by population growth, industrialization and urbanisation Increasing regulation and government support Increasing investment in Infrastructure to facilitate provision and management of resources Increasing investment in technology to optimise inputs and facilitate the more efficient use of resources Portfolio Positioning Sector Breakdown Sector Water Infrastructure Water/Wastewater Utility Water Technology % 43.3 34.2 22.5 Geographical Breakdown Strategy Overview The Kleinwort Benson Investors' Water Strategy is a longonly, high-conviction global equity portfolio investing in 4050 global companies providing solutions to water scarcity. The strategy has been investing in companies active across all parts of the water cycle including Water and Wastewater Utilities, Water Infrastructure and Water Technology since 2000. The Water Strategy provides exposure to a number of dominant and persistent themes: Global growth Natural resource scarcity Infrastructure spending Emerging market growth Mergers and acquisitions Water brings new sources of alpha to a global equity allocation. Specialist active management is the best way to capture this alpha, carefully qualifying a universe of stocks to ensure exposure to the water theme and then identifying companies with strong fundamentals, leading products, and attractive valuations. Region North America Europe Japan Emerging Markets Top 10 Holdings Stock Country United Utilities Group Plc UK Sulzer AG Switzerland Ebara Corporation Japan HD Supply Holdings Inc US Cia de Saneamento Basico Brazil American Water Works Company Inc US Wolseley Plc UK Calgon Carbon Corporation US Suez Environment SA France Danaher Corporation US Source of all data: Kleinwort Benson Investors. Data as of 03/31/14 % 57.7 29.1 6.6 6.6 % 6.1 5.6 5.4 5.1 5.1 4.7 4.6 4.6 4.2 4.2 Investment Process Investment Team Key People Title Investment Experience Our investment process is designed to use our specialist skills to precisely define each theme, construct a proprietary investment universe and then build a concentrated, high conviction portfolio designed to outperform the broad market and passive alternatives. CIO Chief Investment Officer Noel O'Halloran 26yrs Portfolio Management Team Investment Universe Definition Precisely defined opportunity set for investment to ensure exposure to drivers of resource scarcity Companies for inclusion: Pure Plays and Market Leaders Catherine Ryan Portfolio Manager Environmental Strategies 14yrs Matt Sheldon Portfolio Manager Environmental Strategies 12yrs Steve Falci Head of Strategy Development Sustainable Investment 27yrs Sector Weighting Focus on bottom up fundamentals and valuation with an overlay of top down influences Stock Selection Focus on stocks with exposure to key themes driving earnings growth, strong fundamentals, competitive advantages, strong management and attractive valuation Trading Ultan O'Kane Trader 8yrs Q1 Overview The strategy outperformed the broader equity market in a volatile but positive first quarter. The strong performance was driven by our Water Utilities, some of which was simply due to positioning for the near term risk averse sentiment in the market, but there were also material regulatory developments in the UK and Brazil. In the UK, the last pieces of the regulatory puzzle were put in place for the next five years of tariffs, though they are not final at this point. Similarly, Brazilian water utility Sabesp received the last of its regulatory pieces too, but this positive news was overshadowed by a severe drought impacting its territory which will have detrimental near-term impact on earnings. The French utilities, Suez and Veolia, performed strongly in the quarter as both enjoyed another set of relatively clean results with continuing good execution of their cost-cutting plans, confirmation that waste has bottomed and talk of their focus starting to shift back to growth going forward. Contact Details Tel: Email: +1 212 218 2797 [email protected] Address: Kleinwort Benson Investors International Ltd One Rockefeller Plaza, 32nd Floor New York, NY 10020 Web: Early in the first quarter, we took some risk off the table through a reduction in the Water Infrastructure segment and an increase of the Utilities segment. This was mostly a result of bottom-up risk/reward characteristics, with the underperformance of UK utilities early on providing an opportunity to increase our exposure there. There was also a top-down element, in which we have continued to intentionally structure the portfolio to benefit from areas we are most optimistic about (e.g. US construction sectors) while minimizing exposure to areas where we see potential tail risk that is not priced in (e.g. EM currencies and infrastructure spend). After removing risk in January and February, in March we began to modestly add risk back into the portfolio by way of selling Water Utilities, which had performed well and whose risk/rewards were becoming less attractive, and buying high quality Water Infrastructure stocks with favourable end market exposures. www.kleinwortbensoninvestors.com Kleinwort Benson Investors International Ltd. is a registered investment adviser with the SEC and regulated by the Central Bank of Ireland. Kleinwort Benson Investors International Ltd. is a majority-owned subsidiary of Kleinwort Benson Investors Dublin Ltd. Form ADV Part 1 and Part 2 are available on request. IMPORTANT RISK DISCLOSURE STATEMENT : This material is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security, product or service including any group trust or fund managed by Kleinwort Benson Investors International Ltd, or any of its affiliates (collectively, “Kleinwort Benson Investors”). The information contained herein does not set forth all of the risks associated with this strategy, and is qualified in its entirety by, and subject to, the information contained in other applicable disclosure documents relating to such a strategy. Kleinwort Benson Investors International Ltd’s investment products, like all investments, involve the risk of loss and may not be suitable for all investors, especially those who are unable to sustain a loss of their investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. This introductory material may not be reproduced or distributed, in whole or in part, without the express prior written consent of Kleinwort Benson Investors International Ltd. The information contained in this introductory material has not been filed with, reviewed by or approved by any United States regulatory authority or self-regulatory authority and recipients are advised to consult with their own independent advisors, including tax advisors, regarding the products and services described therein. The views expressed are those of Kleinwort Benson Investors International Ltd. and should not be construed as investment advice. We do not represent that this information is accurate or complete and it should not be relied upon as such. Opinions expressed herein are subject to change without notice. The products mentioned in this Document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates, or other factors. In some tables and charts, due to rounding, the sum of the individual components may not appear to be equal to the stated total(s). Additional information will be provided upon request. Stocks mentioned in this document may or may not be held in this strategy at this time. Any projections, market outlooks or estimates in this document are forward-looking statements and are based upon certain assumptions. Other events which were not taken into account may occur and may significantly affect the returns or performance of the strategy. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. Discussions of market conditions, market high/lows, objectives, strategies, styles, positions, and similar information set forth herein is specifically subject to change if market conditions change, or if KBII believes, in its discretion, that investors returns can better be achieved by such changes and/or modification. Style descriptions, market movements over time and similar items are meant to be illustrative, and may not represent all market information over the period discussed. All MSCI data is provided “as is”. In no event shall MSCI, its affiliates, or any MSCI data provider have any liability of any kind in connection with the MSCI data. No further distribution or dissemination of the MSCI data is permitted without MSCI’s prior express written consent.
© Copyright 2019 ExploreDoc