BMO US Equity Buffer Hedged to CAD ETF - July Trust · NEO:ZJUL
BMO US Equity Buffer Hedged to CAD ETF - July Trust — BMO Global Smaller Companies — Shareholder Meeting (July 2019)
22 slides from BMO US Equity Buffer Hedged to CAD ETF - July Trust's shareholder meeting presentation, Jul 25, 2019
Slide 1: BMO Global Smaller Companies Annual General Meeting
710641 UK BMO Global Smaller Companies Annual General Meeting Peter Ewins – Lead Manager 25 July 2019
Slide 2: Investment risks
Investment risks The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. The value of your investment is dependent on the supply and demand for the shares of the Inves
Slide 3: Agenda
Agenda Review of the 2018/19 financial year Update on portfolio structure and regional strategy Performance in the new financial year to date Outlook 3
Slide 4: 2018/19 Results Highlights
2018/19 Results Highlights • Diluted Net Asset Value total return +3.8% • Benchmark total return +3.0% • Share price total return -1.0% • Dividend per share +14.6% Past performance should not be seen as an indication of future performance. Source: BMO Global Asset Management as at 30-Apr-19. Benchma
Slide 5: Performance
Performance Discrete performance %, 12 month rolling (GBP, net of fees, total returns) Jun-18/ Jun-17/ Jun-16/ Jun-15/ Jun-14/ Percentage growth, % Jun-19 Jun-18 Jun-17 Jun-16 Jun-15 NAV 0.6 12.4 25.9 6.6 14.8 Share Price -3.5 10.7 28.4 4.2 14.8 Benchmark -0.5 10.9 25.8 7.5 10.5 Past performance sho
Slide 6: Regional performance in 2018/19
Regional performance in 2018/19 Geographical performance (total return, GBP) 15 14% 12 10.5% 9 6 4% 3 0.8% 0.1% 0 -3 -1.8% -1.9% -3.4% -4.2% -6 -5.9% -9 -12 -9.7% -15 UK Europe USA Japan Rest of the Pacific ex Latin America World* Japan Portfolio Local smaller companies index Past performance should
Slide 7: Market background
Market background • Global economy still growing, labour market trends encouraging, but slowdown from mid 2018 • Increased US interest rates, pull-back from quantitative easing in Europe, combined with tariff developments undermined equity markets through Q4 2018 • Stronger dollar and the trade news
Slide 8: Our reaction to market developments
Our reaction to market developments • A tough year to navigate with corporate earnings under pressure and political influences impacting markets • Portfolio positioning evolved towards a more defensive bias as the economic news deteriorated • Remained underweight in UK, overweight in Europe and Japa
Slide 9: Some of the largest positive contributors in 2018/19
Some of the largest positive contributors in 2018/19 Source: Google.com as at 20.07.2018. This does not constitute a recommendation to buy or sell any particular security. 9
Slide 10: Geographic split of the portfolio
Geographic split of the portfolio 30 June 2019 30 April 2019 Rest of Rest of World World UK 11.2% 11.4% 24.5% UK 26.1% Japan Japan 9.7% 9.6% Europe Europe 12.0% 12.4% North America North 42.0% America 41.1% Source: BMO Global Asset Management, MSCI as at 30-Jun-19. Benchmark: MSCI All Country World
Slide 11: North American portfolio
Key stock positions North American portfolio Top 10 absolute Holdings Sector allocation (relative to benchmark* %) Portfolio Industrials 7.5 weight %* Alleghany 3.5 Basic Materials 3.2 STERIS 3.4 Consumer Services 1.6 Martin Marietta Materials 2.8 Health Care 1.2 ICON 2.7 Consumer Goods 0.2 WEX 2.6
Slide 12: North American portfolio strategy
North American portfolio strategy • Added to defensive parts of the market, such as Utilities and REITs early in last year • Bought new holdings involved in energy infrastructure and fuel transportation but remained cautious on oil/gas production companies • Built up exposure to precious metals late
Slide 13: UK portfolio
Key stock positions UK portfolio Top 10 absolute Holdings Sector allocation (relative to benchmark%) Portfolio weight %* Health Care 3.8 CLS Holdings 2.8 Technology 3.7 AFH Financial Group 2.4 Industrials 2.9 Sirius Real Estate 2.3 Basic Materials 1.1 Clinigen Group 2.2 Utilities -0.9 Huntsworth 2.2
Slide 14: UK portfolio strategy
UK portfolio strategy • Activity has involved mainly searching for more defensive and niche businesses given macro- uncertainties • Stayed overweight to sectors offering quality growth stocks such as Health Care, Media, Financial services and Technology • Actively looking at opportunities within Res
Slide 15: European portfolio
Key stock positions European portfolio Top 10 absolute Holdings Sector allocation (relative to benchmark %) Portfolio weight %* Basic Materials 5.3 IMCD 4.6 Industrials 3.3 Coor Service Management 4.6 Consumer Services 3.2 Vidrala 4.1 Health Care 3.2 Forbo 4.1 Consumer Goods 2.3 Ringkjoebing Landbob
Slide 16: European portfolio strategy
European portfolio strategy • Added in 2018 to medical technology stocks within Health Care • Still positive on selected Banks and Insurers where local market returns are attractive • Took profits on a number of cyclical stocks where recovery prospects became priced in • Underweight in Technology bu
Slide 17: Collectives for Japan and Rest of World
Collectives for Japan and Rest of World Holdings Portfolio weight %* Eastspring Investments Japan Smaller Companies Fund 4.7% Aberdeen Standard SICAV 1 Japan Smaller Companies 4.1% Pinebridge Asia ex Japan Small Cap Fund 3.6% The Scottish Oriental Smaller Companies Trust 3.0% Utilico Emerging Market
Slide 18: Performance in the new financial year up to July 2019
Performance in the new financial year up to 18 July 2019 • Diluted Net Asset Value total return +3.4% • Benchmark total return +2.0% • Share price total return +1.3% . Past performance should not be seen as an indication of future performance. Source: BMO Global Asset Management as at 18-Jul-19. The
Slide 19: Market backdrop
Market backdrop PMI developed market Developed Market Forward P/E 65 30 25 60 20 55 15 10 50 5 45 0 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Jun 2019 MSCI World SC MSCI US SC MSCI Europe ex UK SC MSCI UK SC US Europe Ex UK UK Japan MSCI Japan
Slide 20: Outlook
Outlook • Positive start to new year for investment portfolio • Recent macro-economic data and profit warnings suggest a tricky end to 2019 in store for company earnings • Markets likely to remain sensitive to news on trade and US interest rates • Central Banks appear ready to provide stimulus if ne
Slide 21: Disclaimer
Disclaimer Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any products that may be mentioned. MSCI makes no express or implied warranties or representations and shall have no liability whatsoev
Slide 22: Contact us
Contact us BMO Global Asset Management (EMEA) – Head Office Exchange House Primrose Street London EC2A 2NY Tel: +44 (0) 20 7628 8000 Calls may be recorded. bmogam.com Extensive worldwide investment capabilities • Total focus on clients • Comprehensive range of products and solutions • Defined expert
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