Hansa Investment Company Ltd · LSE:HAN
Hansa Investment — Investor Presentation (September 2020)
37 slides from Hansa Investment's investor presentation, September 2020
Slide 1: William Salomon, Director
William Salomon Director September 2020
Slide 2: Brazilian Real vs US Dollar
Brazilian Real vs US Dollar Significant devaluation of Brazilian Currency against USD in both Nominal and Real terms Source: Bloomberg (23-Sep-20) September 2020
Slide 3: Brazilian Real vs US Dollar
Brazilian Real vs US Dollar Significant devaluation of Brazilian Currency against USD in both Nominal and Real terms September 2020
Slide 4: WSL Share Price
WSL Share Price WSL Share Price is at record low in USD terms Source: Bloomberg (23-Sep-20) September 2020
Slide 5: Brazilian Reform Agenda Timeline
Brazilian Reform Agenda Timeline September 2020
Slide 6: Alec Letchfield, Chief Investment Officer
Alec Letchfield Chief Investment Officer Hansa Capital Partners LLP September 2020 1
Slide 7: Hansa Investment Company Limited overview
Hansa Investment Company Limited is a proprietor based investment company blending best-in-class third party funds, a global equity portfolio and a strategic holding in Ocean Wilsons Holdings Managed by Hansa Capital Partners, the company adopts a long-term approach, ignoring short-term noise, with
Slide 8: Market Performance Calendar YTD 31st August 2020
Hansa Investment Company Limited Market Performance Calendar YTD 31st August 2020 (pre-trough vs post-trough) (£) 100% 80% 60% 40% 36% 29% 20% 19% % Return 9% 6% 7% 7% 0% 4% 4% 2% 1% 0% -2% 1% -1% -2% -7% -6% -5% -6% -7% -10% -11% -10% -20% -20% -23% -21% -31% -40% -37% -60% -80% Light bars represen
Slide 9: NAV, Share Price and KPI Performance
Hansa Investment Company Limited NAV, Share Price and KPI Performance Calendar YTD end Financial Year 3 years to end 10 years to end August 2020 2019/20 August 2020 (p.a.) August 2020 (p.a.) NAV Performance TR -7.2% -16.9% 0.4% 4.6% NAV Performance ex. OWHL TR 0.9% -7.4% 4.5% 7.2% Ordinary Share TR
Slide 10: Gross time-weighted performance of the different silos YTD
Hansa Investment Company Limited Gross time-weighted performance of the different silos 1st January 2020 – 31st August 2020 25.0% 21.5% 20.0% 15.0% 10.0% 8.1% 5.3% 6.3% 3.8% 5.0% 0.1% 0.0% -0.3% -5.0% -1.9% -10.0% -6.4% -15.0% -13.6% -20.0% -18.5% -25.0% -30.0% -30.0% -35.0% -40.0% Core Regional The
Slide 11: Gross time-weighted performance of the silos, 12 months
Hansa Investment Company Limited Gross time-weighted performance of the different silos 12 months to 31st August 2020 30.0% 26.1% 25.0% 20.0% 15.0% 10.0% 10.0% 6.7% 5.9% 4.5% 5.0% 0.2% 0.0% -0.4% -5.0% -2.5% -2.6% -10.0% -10.4% -15.0% -12.6% -20.0% -25.0% -22.9% -30.0% -35.0% -40.0% Core Thematic Co
Slide 12: Gross time-weighted performance of the silos, three years
Hansa Investment Company Limited Gross time-weighted performance of the different silos three years to 31st August 2020 70.0% 63.8% 60.0% 50.0% 40.0% 31.5% 30.0% 26.0% 24.7% 20.0% 11.5% 8.1% 10.0% 4.6% 5.3% 4.6% 0.0% -0.3% -10.0% -8.2% -20.0% -30.0% -30.1% -40.0% Core Thematic Core & Global Ocean Di
Slide 13: Fund and equity contributions to performance
£10,000,000 £15,000,000 £20,000,000 £25,000,000 -£15,000,000 -£10,000,000 £5,000,000 £- -£5,000,000 BlackRock Eur Hedge 2,727,317 Pershing Square 1,896,396 Adelphi Eur Select Equity 1,579,520 Vulcan Value Equity 1,514,898 Findlay Park American 1,201,637 Prince Street Inst 1,040,602 SISF Asian Total
Slide 14: Fund and equity holdings by value
£10,000,000 £20,000,000 £30,000,000 £40,000,000 £50,000,000 £60,000,000 £- Findlay Park American 6,931,191 Vulcan Value Equity 4,742,661 BlackRock Eur Hedge 4,721,567 Pershing Square 3,579,529 Select Equity Offshore 3,551,338 Adelphi Eur Select Equity 3,261,742 SISF Asian Total Return 1,265,296 Good
Slide 15: Performance of less correlated funds
Hansa Investment Company Limited Performance of less correlated funds 1st June 2016 to 31st August 2020 HICL Less MSCI ACWI UK Gilts All UK CPI A basket of lower-correlated funds have been purchased since June 2016. Correlated FM Stocks The performance since has been positive. Funds Annualised retur
Slide 16: Transactions during 2020
Hansa Investment Company Limited Transactions during 2020 • Equity Purchases £10.4m: • Equity Sales £16.8m: – Nexon - £2.0m – White Mountains Insurance Group Ltd - £2.8m (profit of £0.3m) – Grupo Catalana - £1.9m – Orange - £1.9m (loss of £0.6m) – Arch Capital Group - £1.8m – Nutrien - £1.8m (profit
Slide 17: Global Equities performance by size of holding
Hansa Investment Company Limited Global Equities – performance by size of holding 31st August 2020 1 Year 3 Year Performance Performance % of (or since (or since Initial Purchase Value Total % of Global initial initial Security Name Date (GBP) NAV Equity Silo purchase) purchase) Interactive Brokers
Slide 18: Global Equities Silo as at 31st August 2020
Hansa Investment Company Limited Global Equities Silo as at 31st August 2020 Geographic Exposure by Listing Performance 1 Year to end August 2020 10% Asia , 21% 5.9% Europe , 27% 5% 0% -5% -10% -10.4% -15% -20% -17.3% Hansa Investment Company FTSE 100 MSCI ACWI (GBP) US, 53% Limited Global Equities
Slide 19: Current Positioning
Hansa Investment Company Limited Current Positioning (as at 31st August 2020) 20% 19.3% 18% 16% 14% 12.8% 12% 10.2% 10% 9.2% 8.6% 8% 6.8% 6.7% 6% 5.4% 4% 3.5% 2.8% 2.7% 2.9% 2.0% 1.8% 2.0% 2% 1.5% 1.2% 0.7% 0% 19
Slide 20: Discount to asset value
Hansa Investment Company Limited Discount Hansa Investment Company Limited Ord and A combined Hansa Investment Company Limited Ord and (relative to AIC overall average discount) A combined 10% 0% 0% -10% -10% -20% -30% -20% -40% -30% -50% -40% -60% -50% Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-
Slide 21: Macro Update
Macro Update 21
Slide 22: Market Performance 2019 vs 2020 to August 2020
Hansa Investment Company Limited Market Performance 2019 vs 2020 to August 2020 (£) 50% 45% 40% 36% 29% 29% 30% 26% 22% 23% 23% 21% 19% 19% 19% 19% 20% 16% 15% 14% 13% 14% 12% 13% 10% 9% 9% 10% 6% 6% 6% 7% 7% 4% 4% 3% 3% 4% % Return 2% 1% 1% 2% 2% 0% 0% -1% -1% -2% -2% -2% -4% -10% -7% -6% -5% -6% -
Slide 23: Macro update: reasons to be bullish
Hansa Investment Company Limited Macro update……reasons to be bullish Economies have bounced back faster than anticipated 23
Slide 24: Macro update: reasons to be bullish
Hansa Investment Company Limited Macro update……reasons to be bullish Markets have been buoyed by copies amounts of liquidity and ongoing strength in technology which constitutes an increasingly large part of the market 24
Slide 25: Macro update: reasons to be bullish
Hansa Investment Company Limited Macro update……reasons to be bullish Covid contagion levels are improving (with the exception There Is No Alternative of the US) 25
Slide 26: Macro update: reasons to be bearish
Hansa Investment Company Limited Macro update……reasons to be bearish Whilst the bounce back in economies and Companies may use recent events to reset companies has exceeded expectations in many dividend policies cases, there is a very real danger that expectation have run ahead of themselves 26
Slide 27: Macro update: reasons to be bearish
Hansa Investment Company Limited Macro update……reasons to be bearish We may not yet be out of the woods in terms of Biden’s tax proposals COVID-19 27
Slide 28: Macro update: Risks
Hansa Investment Company Limited Macro update……Risks Inflation Picks Up EM/FM vs Developed markets -Whilst current events are arguably deflationary in -EM/FM markets have significantly underperformed the near term it is possible that the building blocks developed markets (and specifically the US mar
Slide 29: Macro update: Summary
Hansa Investment Company Limited Macro update……Summary • Markets have made a rapid recovery from the recent COVID induced downturn • Importantly it has reinforced the trends experienced coming into the downturn with the bounce-back driven by the US and technology and growth in particular • The under
Slide 30: Appendix
Appendix 30
Slide 31: Macro update: current risk exposure
Hansa Investment Company Limited Macro update……current risk exposure (as at 31st August 2020) HICL Risk On vs Defensive Ocean Wilsons Holdings HICL (OWHL Split out) Limited Split 350.0 600.0 350.0 550.0 300.0 300.0 32.3 45.3 14.4% 500.0 10.2% 450.0 29.0 9.2% 250.0 52.7% 250.0 297.9 85.6% 400.0 200.0
Slide 32: Core Regional Funds & Thematic Sector allocation vs MSCI ACWI
Hansa Investment Company Limited Macro update…… Core Regional Funds & Thematic Sector combined - Allocation vs MSCI ACWI (as at 31st August 2020) Sector Allocation Geographic Allocation 25.0% 70.0% 60.0% 20.0% 50.0% 15.0% 40.0% 30.0% 10.0% 20.0% 5.0% 10.0% 0.0% 0.0% HICL MSCI HICL MSCI 32
Slide 33: Funds and Global Equities allocation vs MSCI ACWI
Hansa Investment Company Limited Macro update…… Core Regional Funds, Thematic Sector and Global Equities combined - Allocation vs MSCI ACWI (as at 31st August 2020) Geographic Allocation Sector Allocation 70.0% 25.0% 60.0% 20.0% 50.0% 15.0% 40.0% 30.0% 10.0% 20.0% 5.0% 10.0% 0.0% 0.0% HICL MSCI HICL
Slide 34: Entire Portfolio excluding Diversifying Funds allocation
Hansa Investment Company Limited Macro update…… Entire Portfolio excluding Diversifying Funds - Allocation vs MSCI ACWI (as at 31st August 2020) Geographic Allocation Sector Allocation 70.0% 25.0% 60.0% 20.0% 50.0% 15.0% 40.0% 30.0% 10.0% 20.0% 5.0% 10.0% 0.0% 0.0% HICL MSCI HICL MSCI 34
Slide 35: Core Regional Funds allocation vs MSCI ACWI
Hansa Investment Company Limited Core Regional Funds - Allocation vs MSCI ACWI (as at 31st August 2020) Geographic Allocation Sector Allocation 70.0% 25.0% 60.0% 20.0% 50.0% 15.0% 40.0% 30.0% 10.0% 20.0% 5.0% 10.0% 0.0% 0.0% HICL MSCI HICL MSCI 35
Slide 36: Macro update: market performance chart
Highlights the extent of falls at the point of Hansa Investment Company Limited maximum fear Macro update…..market performance chart (to 31/8/20, GBP) GBP Returns as of 31 Aug 2020 1w 1m MTD QTD YTD 1y 3y 5y 1 Jan 2020 to 23 23 March 2020 to March 2020 Today Equities - Regions MSCI ACWI + FM NR USD
Slide 37: IMPORTANT NOTICE
IMPORTANT NOTICE This presentation pack is issued by Hansa Capital Partners LLP, which is authorised and regulated by the UK Financial Conduct Authority. Hansa Capital Partners LLP is the Manager to Hansa Investment Company Limited. Hansa Investment Company Limited is not authorised or regulated by
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