Rob Burnett Head of European Equities Neptune Investment Management European Opportunities Fund.
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Transcript of Rob Burnett Head of European Equities Neptune Investment Management European Opportunities Fund.
Rob Burnett
Neptune: The Essentials
An independent, privately-owned boutique house with over £1bn AUM
Differentiated by our global sector, team-based investment process
Incentivised culture where each member of team own Company shares
Funds to be capped given high conviction, concentrated portfolios
Winner of Specialist Group of the Year Award 2006 (Investment Week)
Rob Burnett
Meet the Team
Robin GeffenChief Investment Officer
Shelley KuhnConsumer Sector
Rob BurnettFinancials Sector
Derek BartlettChief Economist
Felix WintleHealthcare & Biotech Sectors
Jeremy SmithOil & Gas Sectors
Chris TaylorTechnology & Telecoms
Sectors
Ewan ThompsonMining & Metals Sectors
Deputy Economist
Harriet GrieveChemicals & Utilities Sectors
Alex BreeseIndustrials Sector
Douglas TurnballFinancials Sector
Economist
Rob Burnett
Neptune European Opportunities Fund
Launched on 29th November 2002
Managed by Rob Burnett
‘A’ rated by Forsyth-OBSR
Fund size – over £85m (as at 26.01.07)
Income class introduced in January 2005
Available via key platforms & third party distributors
Rob Burnett
The Performance Story
0
5
10
15
20
25
30
35
40
45
2003 2004 2005 2006
Sector AverageMSCI Europe ex UKNeptune European Opps
Discrete calendar year performance (source: Lipper)
1st / 95
1st / 97
1st / 103
%
Rob Burnett
Cash Outperformance: Yield, M&A, Private Equity
Fund has income class, current yield c.1.5%, numerous opportunities
European FCF generation has trebled in the last 5 years
European ex financials cash balances at an all time high
Source: Morgan Stanley
Source: Morgan Stanley
Rob Burnett
Why M&A will continue to be strong in 2007
Financial imperative is clear
Financial fire power is strengthening
We are mid-way through this cycle, but danger of protectionism
Source: Exane BNP Paribas
Rob Burnett
New Europe
Opportunities continue to abound from the GDP per capita convergence theme
Optimal: western listed, but with emerging Europe growth profile
Greece, Turkey
Rob Burnett
“Old Europe”: German Competitiveness & Consumption
Entered euro at a competitive disadvantage, now level playing field
Consumers unleveraged. VAT increase, but savings rate decline
Asset reflation
Rob Burnett
German Residential Property: Downside Limited
* Federal Statistics Office
Low prices. No more subsidies
Population growth to decline from 2010 but households will continue to rise until 2018*
Today’s construction level too low
Source: VDM
Rob Burnett
German Residential Property: Downside Limited
Low house ownership ratio to rise, particularly in cities. Privatisation
Prices turned up in 2005 in all 5 major cities. Impact on consumer confidence
BUT: high tenant protection keeps yields low
Source: Federal Statistics Office
Rob Burnett
New World Order: Europe the Gateway to Global Growth
Basic demographic and economic implications. Strong US parallels from 20th century
Savings rate at 30% will fall. Banking sector consolidation. Welfare provision
Civil unrest
Rob Burnett
New World Order: Opportunity and Threat
Stage 1: Infrastructure Stage 2: Consumption
Changing patterns of global trade, lengthening business cycles: industrials
Exclusive consumption and staples
Rob Burnett
After strong growth already: Energy in 2007
2007: All about non-OPEC & Saudi Arabia
Oil Services. Liquidity. Avoid the crowd
Alternative Energy: the political imperative
Rob Burnett
Outlook
The prime risk factors are the US: housing / consumption and yen
carry trade
Path to the next economic cycle, rocky in the summer, less so now.
US 10 year, Oil
Inflationary trends. Stability of interest rates and growth. Risk premia
Neptune European Opportunities Fund offers outperformance, yield and low absolute risk profile
Rob Burnett
Buying Neptune Funds
Intermediaries
Most funds are available on the following Platforms / Life Links:
— CoFunds — Funds Direct — Legal & General
— FundsNetwork — Lifetime Group — Standard Life
— Selestia — Nucleus — Skandia
— Transact — James Hay — Norwich Union Int’l
— 7im — Abbey — AXA International
— Pershing — Scottish Widows — Scottish Equitable
— Vantage — SIPP Centre — Scottish Life Int’l
Rob Burnett
Important Information
This document is issued by Neptune Investment Management Limited (“Neptune”) which is authorised and regulated by the Financial Services Authority.
Neptune Funds are available to any persons that may be marketed to under the Financial Services and Markets Act (Promotion of Collective Investment Schemes) (Exemptions) Order 2001. Private customers should consult their Independent Financial Adviser or other authorised intermediary.
Please check with your professional financial adviser as to whether such products are available in the country in which you are resident. None of our products are available to residents in the United States.
Please remember that past performance should not be seen as a guide of future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
Any past performance data that has not been shown is due to the information not being available.Neptune is not authorised to give investment advice and only provides information on Neptune products.