For Professional Investors and Advisers Only
TM RWC UK Equity Income Fund
N O V E M B E R 2 0 2 0
|RWC
Value stocks stand at a record discount to Growth
2
Sources: Morgan Stanley, 31 July 2020
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
-70
-60
-50
-40
-30
-20
-10
0
1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020
UK Value vs Growth Average Valuation Premium
Value vs Growth (Avg % Premium On PE, PBV & PD) Median
|RWC
“What were you thinking?”
3
“At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I can get that by my shareholders. That assumes I
have zero cost of goods sold, which is very hard for a computer company. That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes, which is very
hard. And that assumes you pay no taxes on your dividends, which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate. Now,
having done that, would any of you like to buy my stock at $64? Do you realize how ridiculous those basic assumptions are? You don’t need any transparency. You don’t need any footnotes.
What were you thinking?” Scott McNeely, CEO Sun Microsystems 2003
Company Price to sales
ratio
Microsoft 10x
Tesla 14x
Beyond Meat 22x
Snowflake 150x
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
Source: Bloomberg 30 September 2020
“But what’s the catalyst?”
|RWC
Potential Catalysts
5
• Often there is no catalyst e.g March 2000
• Companies can create their own catalysts e.g Dixons Carphone, Aviva, Centrica
• Long term investors are already taking advantage of the under valuation e.g. Pearson, Royal Mail
• Takeovers e.g William Hill, G4S, RSA
• Brexit deal
• Improving news on Covid/vaccine
• An increase in inflation???
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
|RWC
Record valuation divergence, lopsided markets and illiquid stocks produce interesting results
6
100
110
120
130
140
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20
Index 1
00 =
31/1
2/2
019
US Momentum Stocks Have Given Up 4 Months Of Gains Compared To Value
MSCI USA Momentum Price Return USD / MSCI United States Value Index
Bloomberg, 10 November 2020
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and
investors may not get back the full amount invested.
|RWC 7
1.0
1.2
1.4
1.6
1.8
2.0
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20
Ratio
Four Months Of Outperformance By Growth Erased In One Day
Russell 1000 Growth Index / Russell 1000 Value Index
Bloomberg, 10 November 2020
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
Record valuation divergence, lopsided markets and illiquid stocks produce interesting results
|RWC 8
-20
-15
-10
-5
0
5
10
15
20
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Daily
Retu
rn (
%)
MSCI World Energy Index Had The Third Best Day In Its 25-Year History
MSCI World Energy Sector Index - 1 Day Price Change %
Bloomberg, 10 November 2020
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
Record valuation divergence, lopsided markets and illiquid stocks produce interesting results
|RWC
What lessons can today’s investors draw from the 1970s?
9
• Investors cannot see any chance of an increase in inflation and have priced assets accordingly
• QE did not produce inflation post 2008 and therefore do not believe it will not produce inflation this time
• But there are some major differences
• Positioning is so lopsided that many investors will be impacted by the first sign of an increase in inflation
• The 1970’s could provide a useful lesson
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
|RWC
Inflation and value have been closely correlated
Source: Ken French data library, Datastream, Bernstein analysis, 24 September 2020 10
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
|RWC
If inflation is dead, then value investing is dead
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Bond Yields
US 10 Year Yield UK 10 Year Yield German 10 Year Yield Japan 10 Year Yield
11
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
Source: Bloomberg as at 31 August 2020
But maybe inflation isn’t dead?
|RWC
Central bank stimulus is far greater
0
5
10
15
20
25
30
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Aggregate Balance Sheet of Large Central Banks ($tn)
Fed ECB PBOC BoJ BoE SNB
Source: Bloomberg, 22 September 202013
|RWC
Fiscal response to the coronavirus crisis is much greater
40
50
60
70
80
90
100
110
120
130
140
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
US Debt to GDP
Source: Bloomberg, 15 September 2020 14
|RWC
Supply of money increasing at fastest rate since the 1970’s
0
5
10
15
20
25
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Money Supply M2
Source: Bloomberg, 15 September 202015
|RWC
Starting to price in reflation or inflation?
16
-20
0
20
40
60
80
100
120
140
Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20
Spre
ad (
bps)
The 2 Year / 10 Year Treasury Curve Is Its Steepest In Almost Three Years
Market Matrix US Sell 2 Year Buy 10 Year Bond Yield Spread
Source: Bloomberg, 10 November 2020
|RWC
Gold seems to think something is going on
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2016 2017 2018 2019 2020
Gold Spot $/Oz
Source: Bloomberg, 22 September 202017
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
What would investors need to do differently?
|RWC
In the 1970s, real assets performed much better than financial assets
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Commodities UST's US Corporate Bonds Equities
Asset Performance Through the 1970s
Nominal Real
Source: Variant Perception, 1st January 1970 – 31st December 1979.19
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
|RWC
Within equities, the best performing sectors were those that benefitted from rising commodity prices such as energy and materials
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
Energy Industrials Materials Utilities Telecoms ConsumerStaples
ConsumerDiscretionary
Health Care Real Estate Financials InformationTechnology
US Equity Sector Performance Through The 1970s
Nominal Real
Source: Variant Perception, 1st January 1970 – 31st December 1979.20
The names shown above are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations or advice. No investment strategy or risk management technique can guarantee returns or
eliminate risks in any market environment
|RWC
The Nifty 50 group underperformed the market by c. 40%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
1974 market trough 1 month after trough 2 years after trough 3 years after trough 5 years after trough End of decade
Performance of the Nifty Fifty after the 1974 Market Trough
S&P 500 Nifty Fifty
Source: Exane, 1st February 1973 – 31st December 1979 21
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
|RWC
The original Nifty 50 of the early 1970s
22
Name
1972 Peak
P/E
Valuation
Returns
from 1973
to 1974
Market
Trough
Returns
from 1973
to 1977
Name
1972 Peak
P/E
Valuation
Returns
from 1973
to 1974
Market
Trough
Returns
from 1973
to 1977
Polaroid 90.7 -79% -70% Corning Glass 42.9 -53% -32%
McDonald's 85.7 -49% -29% Upjohn 41.1 7% -35%
Walt Disney 81.6 -65% -56% Chesebrough Ponds 41.0 -39% -16%
Baxter Travenol 78.5 -45% -32% Minnesota Mining (3M) 40.8 -25% -29%
Automatic Data Processing 76.2 -68% -23% American Express 39.0 -55% -26%
Intl Flavors & Fragrances 75.8 -33% -43% American Home Products 38.9 -16% -21%
Avon Products 65.4 -80% -56% Schlitz Brewing 38.7 -42% -72%
Rite Aid 64.7 -93% -61% IBM 37.4 -42% -11%
Avery International 64.2 -20% -55% J.C. Penny 34.1 -47% -54%
Hewlett-Packard 63.1 -18% -9% Squibb 33.9 -59% -46%
Emery Air Freight 62.1 -33% -28% Procter & Gamble 32.0 -22% -13%
Johnson & Johnson 61.9 -29% -38% Anheuser-Busch 31.9 -43% -49%
Digital Equipment 60.0 -45% -91% Sears Roebuck 30.8 -46% -38%
Kresge (now Kmart) 54.3 -42% -32% Heublein 30.1 -49% -47%
Wal-Mart Stores 52.3 -45% 8% PepsiCo 29.3 -49% 4%
AMP 51.8 -24% -23% Pfizer 29.0 -39% -28%
Black & Decker 50.5 -59% -9% Bristol-Myers 27.6 -36% 15%
Schering-Plough 50.4 -22% -50% General Electric 26.1 -43% -9%
American Hospital Supply 50.0 -43% -46% Revlon 26.1 -33% 41%
Burroughs 48.8 -25% -34% Phillip Morris 25.9 -24% 10%
Xerox 48.8 -44% -62% Gillette 25.9 -61% -46%
Eastman Kodak 48.2 -42% -53%Louisiana Land &
Exploration25.6 -48% -24%
Coca-Cola 47.6 -48% -37% First National City 22.4 -28% -20%
Texas Instruments 46.3 -10% 1% ITT 16.3 -63% -19%
Eli Lilly 46.0 -15% -44% Nifty Average 46.8 -41% -31%
Merck 45.9 -29% -30% S&P 500 19.2 -37% 1%
The names shown above are for illustrative purposes only and is not intended to be, and should not be interpreted as, recommendations or advice.Source: Exane BNP Paribas estimates, DataStream, 04 July 2019
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back
the full amount invested.
|RWC
Which sectors are likely to perform if inflation expectations increase?
-1.0
-0.8
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
Europe Sector Correlations With 5y5y Inflation Swap Rate
23Source: Bloomberg as at 31 August 2020
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
|RWC
Communication Services, 17%
Consumer Discretionary,
15%
Consumer Staples, 4%
Energy, 11%
Materials, 12%
Financials, 20%
Health Care, 1%
Industrials, 10%
Information Technology, 4%
Utilities, 4%Cash, 2%
Security Weight
Kingfisher 6.6%
Anglo American 6.1%
Royal Mail 6.0%
Pearson 5.2%
Standard Chartered 5.1%
NatWest Group 5.1%
BP 4.4%
Barclays 4.2%
ITV 4.1%
Royal Dutch Shell 3.7%
Sector
24
TM RWC UK Equity Income Fund - Portfolio
Portfolio holdings are subject to change at any time without any notice. This information should not be construed as a recommendation to purchase or sell any security.
Proposed portfolio as at 31 October 2020
|RWC
NatWest Group
The names shown above are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations or advice.
Sources: Company Reports & Accounts, Bloomberg, 31 August 2020
• Share price down 50% YTD
• Q2 2020 TNAV per share 265p; currently valued at less
than 0.5x tangible book value
• Capital position strong – core equity tier one ratio 17.2%
end June (16.2% end December); £6.5bn excess capital
(>50p per share)
• Banks have 3x level of capital pre GFC, underwriting
standards much improved
• COVID19 shock – assumes GDP decline 14%,
unemployment 10%, HPI -10%; takes £2.9bn provisions in
H1, expects £4.0bn for full year; full year pre-provision
profit c.£4.0bn
• Downside economic scenario (GDP -17%, HPI -25%) gives
c.£2bn additional loan losses
• Company maintains medium term target 9% to 11% return
on tangible equity; equates to EPS c.25p
0.0
0.2
0.4
0.6
0.8
1.0
2008 2010 2012 2014 2016 2018 2020
NWG Price-to-Book
25
|RWC
ITV
The names shown above are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations or advice.
Sources: Company Reports & Accounts, Bloomberg, 31 August 2020
• Share price down 50% YTD; 2020 profits will be materially impacted by
COVID19; advertising down sharply, Q2 TV production temporarily ceased;
recovery expected for 2021
• Share of viewing and total viewing hours steady; ITV delivers 95% of
audiences over 5m; high advertiser ROI
• Studios business have seen consistent growth in profits over last 15 years;
2019 EBITA £270m, valuable content, fair value c.£4bn
• More volatile Broadcast business therefore valued at zero; 2019 EBITA
£460m, fair value c.£5bn
• Company 2019 EPS 14p, fair value c.180p, 2019 net debt / ebitda 1.0x
0
50
100
150
200
250
300
0
400
800
1200
1600
2000
2006 2008 2010 2012 2014 2016 2018
1. Studios
Total studios revenue £m Studios EBITA £m
0
200
400
600
800
0400800
1,2001,6002,0002,400
2006 2008 2010 2012 2014 2016 2018 2020e
3. Broadcast & Online
Bcast & Online Revenue (£m)
Bcast & Online EBITA (£m)
10%
15%
20%
25%
30%
10
12
14
16
18
20
2010 2012 2014 2016 2018 H12020
2. Share of Viewing
Total viewing hours bn Share of television viewing (RHS)
26
|RWCSource: RWC Partners, Bloomberg, UBS Portfolio Analysis System (PAS), 31 August 2020
Assumes 100% invested portfolio
Index: FTSE All-Share Index
Portfolio Detail Fund Index Active
P/E (Consensus) 11.3 15.1 -3.9
Yield 4.0 4.0 0.0
Price / Book 0.7 1.4 -0.6
EV / EBIT 13.5 15.2 -1.7
EV / EBITDA 6.2 8.7 -2.5
EV / Sales 0.7 1.6 -0.9
Average Market Cap 21.1 37.7 -16.6
Active Share 82.6%
Tracking Error 11.7
Total Securities Held 29
Geographic Breakdown Weight
UK equities 84.0%
Of which:
FTSE 100 63.4%
FTSE 250 20.6%
Internationally listed stocks 14.0%
Of which:
Asia Pacific 2.7%
Continental Europe 2.8%
North America 8.5%
Cash & Equivalents 2.0%
27
Fundamental analysis – Representative Fund
The information shown above is for illustrative purposes only and is not intended to be, and should not be interpreted as, recommendations or advice.
|RWC
What lessons can today’s investors draw from the 1970’s?
28
• Investors cannot see any chance of an increase in inflation and have priced assets accordingly
• But there is a non-zero probability of inflation increasing
• Asset classes are not priced for this and the consequences could be severe
• Could the FAANG’s be the new Nifty Fifty?
• Could the 2020’s be the decade that value stocks come back in to fashion?
• How confident that zero exposure to value is the correct risk profile?
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
|RWC
RWC Income Team: Portfolio Managers & Investment Analysts
Ian joined RWC Partners in
August 2010. He was previously
senior portfolio manager at
Schroders managing both
Institutional Specialist Value
Funds and the Schroder Income
Fund and Income Maximiser
Fund together with Nick Purves.
During his time at Schroders, Ian
was Citywire AAA rated, Nick and
Ian’s Income fund was
Morningstar 5 star rated, AA
rated by OBSR and won the
Moneywise award in 2009 in the
UK Equity Income and Equity
Income and Growth sectors.
Previously Ian was the Head of
European Equities and Director
of Research at Citigroup Asset
Management and Head of
Global Research at Gartmore.
Ian Lance
John joined RWC Partners in
September 2010. He previously
worked at Schroders, where he
co-managed the Schroder
Income Maximiser with Nick
Purves and Ian Lance. John
also co-managed the Schroder
Global Dividend Maximiser,
Schroder European Dividend
Maximiser and Schroder UK
Income Defensive funds, all
three of which employed a
covered call strategy. John also
specialised in trading and
managing derivative securities
for a range of structured funds.
Previously he worked as a
performance and risk analyst for
Bank of Ireland Asset
Management UK. John is a CFA
charterholder
John Teahan
Nick joined RWC Partners in
August 2010. He was previously
senior portfolio manager at
Schroders for over 16 years
managing both Institutional
Specialist Value Funds and the
Schroder Income Fund and
Income Maximiser Fund together
with Ian Lance. During his time at
Schroders, Nick was Citywire
AAA, Nick and Ian’s Income fund
was Morningstar 5 star rated, AA
rated by OBSR and won the
Moneywise award in 2009 in the
UK Equity Income and Equity
Income and Growth sectors. Nick
is a qualified Chartered
Accountant.
Nick Purves
Larry joined RWC in August 2010
as a graduate recruit. He
graduated from the University of
Nottingham in 2009 with an
honours degree in Economics
and during his tenure
successfully completed two
intern positions; the first at
Permal Investment Management
where he was involved in
manager research for the firm as
an Investment Analyst, and the
Government Economic Service
as an Assistant Economist. Larry
is a CFA charterholder.
Larry Furness
Jaakko joined RWC’s Equity
Income team in September 2015
from Northleaf Capital. Jaakko
was an Associate within the
Private Equity team at Northleaf,
where he focussed on secondary
private equity transactions. Prior
to this Jaakko worked at Bank of
America Merrill Lynch as a
Senior Analyst within their
Investment Banking division in
London, and at AIM Capital in
Helsinki before that. Jaakko
graduated from the Aalto
University School of Economics
with an M.Sc. (with Distinction) in
Finance. He is fluent in Finnish
and English.
Jaakko Kinanen
29
|RWC
Contact
30
Please contact us if you have any general questions or would like to discuss any of our strategies.
RWC London
Verde
10 Bressenden Place
London
SW1H 5DH
Tel: +44 20 7227 6000
Fax: +44 20 7227 6003
Email: [email protected]
Web: www.rwcpartners.com
RWC Miami
2640 South Bayshore Drive
Suite 201
Miami
Florida 33133
Tel: +1 305 602 9501
Email: [email protected]
Web: www.rwcpartners.com
RWC Singapore
80 Raffles Place
#22-23
UOB Plaza 2
Singapore 048624
Tel: +65 6812 9540
Email: [email protected]
Web: www.rwcpartners.com
|RWC
Disclaimer and Important Information
31
The term “RWC” may include any one or more RWC branded entities including RWC Partners Limited and RWC Asset Management LLP, each of which is authorised and regulated by the UK
Financial Conduct Authority and, in the case of RWC Asset Management LLP, the US Securities and Exchange Commission; RWC Asset Advisors (US) LLC, which is registered with the US
Securities and Exchange Commission; and RWC Singapore (Pte) Limited, which is licensed as a Licensed Fund Management Company by the Monetary Authority of Singapore.
RWC may act as investment manager or adviser, or otherwise provide services, to more than one product pursuing a similar investment strategy or focus to the product detailed in this document.
RWC seeks to minimise any conflicts of interest, and endeavours to act at all times in accordance with its legal and regulatory obligations as well as its own policies and codes of conduct.
This document is directed only at professional, institutional, wholesale or qualified investors. The services provided by RWC are available only to such persons. It is not intended for distribution to
and should not be relied on by any person who would qualify as a retail or individual investor in any jurisdiction or for distribution to, or use by, any person or entity in any jurisdiction where such
distribution or use would be contrary to local law or regulation.
This document has been prepared for general information purposes only and has not been delivered for registration in any jurisdiction nor has its content been reviewed or approved by any
regulatory authority in any jurisdiction. The information contained herein does not constitute: (i) a binding legal agreement; (ii) legal, regulatory, tax, accounting or other advice; (iii) an offer,
recommendation or solicitation to buy or sell shares in any fund, security, commodity, financial instrument or derivative linked to, or otherwise included in a portfolio managed or advised by RWC; or
(iv) an offer to enter into any other transaction whatsoever (each a “Transaction”). No representations and/or warranties are made that the information contained herein is either up to date and/or
accurate and is not intended to be used or relied upon by any counterparty, investor or any other third party.
RWC uses information from third party vendors, such as statistical and other data, that it believes to be reliable. However, the accuracy of this data, which may be used to calculate results or
otherwise compile data that finds its way over time into RWC research data stored on its systems, is not guaranteed. If such information is not accurate, some of the conclusions reached or
statements made may be adversely affected. RWC bears no responsibility for your investment research and/or investment decisions and you should consult your own lawyer, accountant, tax
adviser or other professional adviser before entering into any Transaction. Any opinion expressed herein, which may be subjective in nature, may not be shared by all directors, officers,
employees, or representatives of RWC and may be subject to change without notice. RWC is not liable for any decisions made or actions or inactions taken by you or others based on the contents
of this document and neither RWC nor any of its directors, officers, employees, or representatives (including affiliates) accepts any liability whatsoever for any errors and/or omissions or for any
direct, indirect, special, incidental, or consequential loss, damages, or expenses of any kind howsoever arising from the use of, or reliance on, any information contained herein.
Information contained in this document should not be viewed as indicative of future results. Past performance of any Transaction is not indicative of future results. The value of investments can go
down as well as up. Certain assumptions and forward looking statements may have been made either for modelling purposes, to simplify the presentation and/or calculation of any projections or
estimates contained herein and RWC does not represent that that any such assumptions or statements will reflect actual future events or that all assumptions have been considered or stated.
Forward-looking statements are inherently uncertain, and changing factors such as those affecting the markets generally, or those affecting particular industries or issuers, may cause results to
differ from those discussed. Accordingly, there can be no assurance that estimated returns or projections will be realised or that actual returns or performance results will not materially differ from
those estimated herein. Some of the information contained in this document may be aggregated data of Transactions executed by RWC that has been compiled so as not to identify the underlying
Transactions of any particular customer.
The information transmitted is intended only for the person or entity to which it has been given and may contain confidential and/or privileged material. In accepting receipt of the information
transmitted you agree that you and/or your affiliates, partners, directors, officers and employees, as applicable, will keep all information strictly confidential. Any review, retransmission,
dissemination or other use of, or taking of any action in reliance upon, this information is prohibited. The information contained herein is confidential and is intended for the exclusive use of the
intended recipient(s) to which this document has been provided. Any distribution or reproduction of this document is not authorised and is prohibited without the express written consent of RWC or
any of its affiliates.
|RWC
Disclaimer and Important Information
32
The benchmark index is included to show the general trend of the securities markets in the period indicated. The portfolio is managed according to its investment strategy, which may differ
significantly in terms of security holdings, industry weightings, and asset allocation from those of the benchmark index. Portfolio performance, characteristics and volatility may differ from the
benchmark index. No representation is made that the portfolio’s strategy is or will be comparable, either in composition or regarding the element of risk involved, to the securities comprising the
benchmark index. Unmanaged index returns assume reinvestment of any and all distributions and do not reflect any fees, expenses or sales charges. Investors cannot invest directly in an index.
Representative holdings and portfolio characteristics are specific only to the portfolio shown at that point in time and is subject to change. The representative portfolio shown has been selected by
RWC based on account characteristics that RWC believes accurately represents the investment strategy as a whole.
Changes in rates of exchange may cause the value of such investments to fluctuate. An investor may not be able to get back the amount invested and the loss on realisation may be very high and
could result in a substantial or complete loss of the investment. In addition, an investor who realises their investment in a RWC-managed fund after a short period may not realise the amount
originally invested as a result of charges made on the issue and/or redemption of such investment. The value of such interests for the purposes of purchases may differ from their value for the
purpose of redemptions. No representations or warranties of any kind are intended or should be inferred with respect to the economic return from, or the tax consequences of, an investment in a
RWC-managed fund. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns. Nothing in this document constitutes advice on the
merits of buying or selling a particular investment. This document expresses no views as to the suitability or appropriateness of the fund or any other investments described herein to the individual
circumstances of any recipient.
AIFMD and Distribution in the European Economic Area (“EEA”)
The Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (“AIFMD”) is a regulatory regime which came into full effect in the EEA on 22 July 2014. RWC Asset Management LLP
is an Alternative Investment Fund Manager (an “AIFM”) to certain funds managed by it. The AIFM is required to make available to investors certain prescribed information prior to their investment in
an AIF. The majority of the prescribed information is contained in the latest Offering Document of the AIF. The remainder of the prescribed information is contained in the relevant AIF’s annual
report and accounts. All of the information is provided in accordance with the AIFMD.
In relation to each member state of the EEA (each a “Member State”), this document may only be distributed and shares in a RWC fund (“Shares”) may only be offered and placed to the extent that
(a) the relevant RWC fund is permitted to be marketed to professional investors in accordance with the AIFMD (as implemented into the local law/regulation of the relevant Member State); or (b)
this document may otherwise be lawfully distributed and the Shares may lawfully offered or placed in that Member State (including at the initiative of the investor).
Information Required for Distribution of Foreign Collective Investment Schemes to Qualified Investors in Switzerland
The representative and paying agent of the RWC-managed funds in Switzerland (the “Representative in Switzerland”) is Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, CH-
8021 Zürich. In respect of the units of the RWC-managed funds distributed in Switzerland, the place of performance and jurisdiction is at the registered office of the Representative in Switzerland.
Top Related