BMO US Equity Buffer Hedged to CAD ETF - July Trust · NEO:ZJUL
BMO US Equity Buffer Hedged to CAD ETF - July Trust — F&C Investment Trust — Shareholder Meeting (May 2019)
27 slides from BMO US Equity Buffer Hedged to CAD ETF - July Trust's shareholder meeting presentation, May 2, 2019
Slide 1: F&C Investment Trust PLC Annual General Meeting
CM19841 UK Classification: only to be shown if not public F&C Investment Trust PLC Annual General Meeting 2 May 2019
Slide 2: Simon Fraser, Chairman
Classification: only to be shown if not public Simon Fraser Chairman
Slide 3: Paul Niven, Fund Manager
Classification: only to be shown if not public Paul Niven Fund Manager
Slide 4: Investment risk
Investment risk Classification: only to be shown if not public The value of investments and 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 sup
Slide 5: Agenda
Agenda Classification: only to be shown if not public 2018 Results Engagement activity Outlook Q&A 5
Slide 6: Widespread declines in asset values in 2018
Widespread declines in assets values in 2018 Classification: only to be shown if not public Percentage of Assets with a Negative Total Return in USD terms 100% 87% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1% 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 Past performance should not be see
Slide 7: Annual shareholder returns for past decade
Annual shareholder returns for past decade Classification: only to be shown if not public 30 25 20 15 10 5 0 -5 -10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Past performance should not be seen as an indication of future performance. Source: BMO Global Asset Management as at 31-March
Slide 8: 2018 total shareholder return of -0.6%
2018 total shareholder return of -0.6% Classification: only to be shown if not public 0.0 -0.6% -0.6% -0.5 -1.0 -2.2% -2.6% -1.5 -3.1% -3.3% -3.4% -2.0 2.7% -2.5 -0.4% 0% -0.1% -3.0 -0.4% -3.5 -0.2% -4.0 Past performance should not be seen as an indication of future performance. Source: BMO Global A
Slide 9: Underlying performance in 2018
Underlying performance in 2018 Classification: only to be shown if not public Allocation to Underlying Benchmark Portfolio Benchmark strategy allocation weighting performance performance % % % % % North America 42.0 53.4 56.0 4.7 0.8 Europe inc UK 14.4 22.4 19.6 -15.1 -9.9 Japan 8.6 9.9 8.4 -10.0 -7
Slide 10: 5 year investment returns by portfolio strategy
5 year investment returns by portfolio strategy Classification: only to be shown if not public 120 100 80 60 40 20 0 North America Europe inc UK Japan Emerging Markets Private Equity Strategy Index Past performance should not be seen as an indication of future performance. Source: BMO Global Asset M
Slide 11: Private equity weighting
Private equity weighting Classification: only to be shown if not public 20.0% 15.0% 10.0% 5.0% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Legacy Private Equity % New Private Equity % Source: BMO Global Asset Management as at 31-Dec-18. . 11
Slide 12: Revenue and dividends
Revenue and dividends Classification: only to be shown if not public • 9.8% rise in net revenue return per share in 2018 • 5.8% rise in dividends per share in 2018 14 12 10 8 6 4 2 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenue per share (p) Dividend per share (p) Past performance shoul
Slide 13: Long term growth in capital and income
Long term growth in capital and income Classification: only to be shown if not public 16 14 13.3 10-year annual growth % pa 11.7 12 10 8 6 5.5 4 2.3 2 0 Shareholder total return NAV total return Dividend growth Inflation Past performance should not be seen as an indication of future performance Sour
Slide 14: Recent progress in company rating
Recent progress in company rating Classification: only to be shown if not public 0.0 -2.0 -4.0 Discount % -6.0 -8.0 -10.0 -12.0 2009 -13 2014 2015 2016 2017 2018 2019 End Q1 Source: BMO Global Asset Management as at 31-Dec-18. 14
Slide 15: Gearing costs reduced
Gearing costs reduced Classification: only to be shown if not public • Weighted average cost of debt down from 7.1% at end 2013 to 2.5% • £150m of 7 - 40 year debt at average rate of 2.2% to be drawn in June 140 2.78% 1.70% 120 Borrowings (£m) 100 80 60 3.16% 2.69% 40 2.76% 20 0 0-10 years 10-20 yea
Slide 16: OCF and management fees
OCF and management fees Classification: only to be shown if not public • 18% reduction in OCF from 0.79% Ongoing charges figure to 0.65% 0.90% • Change in BMO fee arrangement from 36.5bp on market cap to a tiered approach from 1 January 2019; 0.80% – 35bp on first £3bn – 30bp on £3-4bn 0.70% – 25bp
Slide 17: Returns vs comparators (5 years)
Returns vs comparators (5 years) Classification: only to be shown if not public AIC Median 90 85 80 75 70 % Return 65 60 55 50 45 40 IA Median Vanguard ETF FTSE AW F&C F&C (Open Ended) (Passive) (Benchmark) NAV TR Share Price TR Past performance should not be seen as an indication of future performa
Slide 18: Final results to December 2018
Final results to 31 December 2018 Classification: only to be shown if not public • Share price total return of -0.6%, ahead of market benchmark of -3.4% • NAV total return of -3.3% • Discount ended 2018 at 1.5% – lowest year end level for over 20 years • First issuance of shares since 1959 and first
Slide 19: Voting and engagement
Voting and engagement Classification: only to be shown if not public • 531 company holdings voted in 2018 • It is our belief that effective engagement can enhance shareholder value – 164 engagements with companies in 2018 over 25 countries Key issues • Governance structure, corporate culture and bus
Slide 20: Some key points from last year's outlook
Some key points from last year’s outlook Classification: only to be shown if not public • Increased focus on regulatory risk on the disruptors • Trade tensions to subside • Market concentration and market power is good for investors, bad for competition and workers • Expect more volatility as rates
Slide 21: Yield curve, recessions and bank lending
Yield curve, recessions and bank lending Classification: only to be shown if not public 400 -40 Bank attitude † [INVERTED] 300 -20 200 0 Net balance Yield Curve (bp) 100 20 0 40 STANDARDS -100 60 TIGHTER Yield curve* (LHS) -200 80 -300 100 1990 1994 1998 2002 2006 2010 2014 2018 Source: BMO Global A
Slide 22: US equity valuations
US equity valuations Classification: only to be shown if not public 30 25 20 P/E Ratio 15 Average 10 5 0 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 Past performance should not be seen as an indication of future performance. Source: BMO Global Asset Management, Bloomberg as at 31-March-19.
Slide 23: Global vs UK equity returns
Global vs UK equity returns Classification: only to be shown if not public 240 Global Equities 220 200 180 160 140 UK Equities 120 100 2013 2014 2015 2016 2017 2018 2019 Source: BMO Global Asset Management, Bloomberg as at 31-Mar-19. 23
Slide 24: Discrete performance
Discrete performance Classification: only to be shown if not public Percentage growth 12m to December 2018 2017 2016 2015 2014 F&C Investment Trust Share Price TR -0.6 21.0 23.7 9.0 13.5 F&C Investment Trust NAV -3.3 16.7 24.0 7.6 9.7 Benchmark -3.4 13.8 29.6 4.0 11.3 Past performance should not be
Slide 25: Attractive risk-adjusted returns
Attractive risk-adjusted returns Classification: only to be shown if not public 3-years NAV return/volatility 5-years NAV return/volatility 70% 140% 65% SMT SMT 120% 60% NAV Performance NAV Performance 55% 100% 50% MNKS BTEM 45% FCIT 80% FCIT MNP 40% BNKR FTSE FTSE MNP BNKR MNKS 35% ATST 60% ATST JP
Slide 26: Disclaimer
Disclaimer Classification: only to be shown if not public 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. © 2019 Morningstar. All Rights Reserved. The informa
Slide 27: Contact us
Contact us Classification: only to be shown if not public 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 r
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