20110131 finding the value a global perspective - display

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EXPERTISE BUILT IN UEINSIGHTINTELLIGENTINVESTINGFO ONPERFORMANCELONGTERMGROWT YSPECIALISTSACTIVEFUNDMANAGEM IQUEINSIGHTINTELLIGENTINVESTING EDFINDINGIVALUELONGTERMGROWT TY AIGLOBALIPERSPECTIVEIVEFUNDM MJULIANILEWISMENTUNIQUEINSIGH LIGENTINVESTINGFOCUSEDONPERFO CELONGTERMGROWTHEQUITYSPECIA TIVEFUNDMANAGEMENTUNIQUEINS NTELLIGENTINVESTINGFOCUSEDONPER ANCELONGERMGROWTHEQUITYSPECI ACTIVEFUNDMANAGEMENTUNIQUEIN NTELLIGENT 2 NOVEMBER 2011 This presentation is for investment professionals only and is not intended for retail clients EXPERTISE BUILT IN 1

Transcript of 20110131 finding the value a global perspective - display

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EXPERTISE BUILT IN

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UNIQUEINSIGHTINTELLIGENTINVESTINGFOCUSEDONPERFORMANCELONGTERMGROWTHEQUITYSPECIALISTSACTIVEFUNDMANAGEMENTUNIQUEINSIGHTINTELLIGENTINVESTINGF

SEDFINDINGIVALUELONGTERMGROWTHQUITYAIGLOBALIPERSPECTIVEIVEFUNDMA

GEMJULIANILEWISMENTUNIQUEINSIGHTINTELLIGENTINVESTINGFOCUSEDONPERFORMANCELONGTERMGROWTHEQUITYSPECIALISTSACTIVEFUNDMANAGEMENTUNIQUEINSIGHTINTELLIGENTINVESTINGFOCUSEDONPERFORMANCELONGERMGROWTHEQUITYSPECIALISTSACTIVEFUNDMANAGEMENTUNIQUEINSIGHTINTELLIGENT

2 NOVEMBER 2011

This presentation is for investment professionals only and is not intended for retail clients

EXPERTISEBUILT IN

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OVERVIEW

The Cavendish Worldwide Fund

• Focused on a long-term growth-oriented perspective.

• As a result, tends to have a heavy concentration in emerging markets or stocks exposed to emerging economies.

• Near-term risk/reward profile means that the fund has an unusually high cash weighting.

• We are looking for opportunities to reduce cash (non-equity) holdings as equities tend to lead economic recovery.

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Cavendish Asset Management

Long-only equity specialists

Stockpickers

Range of 10 OEIC funds

Experienced fund managers working collegiately

All funds have same manager since launch

Privately owned by large multi-national parent company

Manage £648m

Source: Cavendish/Northern Trust. Figures as at 30/09/11

A BRIEF INTRODUCTION

Julian Lewis CIO and Fund Manager

Cavendish Worldwide Fund

Manager since launch 06/07/1994

Fund Size £61.2m

IMA Sector Active Managed

Also manager of

Cavendish UK Balanced Income Fund

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FINDING VALUE

For the Worldwide Fund, it is a bottom up focus but following some top down themes.

Not led by sector allocation, led by the themes

Shared Insight from 6 fund managers who regularly visit their markets

Supported by 4 analysts with a global focus

STRONGMARKETPOSITION

ATTRACTIVE STRATEGY

GOOD MANAGEMENT

MACRO TRENDS

ECONOMIC GROWTH

FLOW OF FUNDS

BENCHMARK WEIGHTINGS

We take account of:

And use these factors to find, identify and validate good businesses.

Stock Pickers We look for companies with:

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CAVENDISH WORLDWIDE FUND

10 year Fund Performance

Cavendish Worldwide Retail FTSE World TR GBP IMA Active Managed

Source: Lipper. % growth, total return, GBP, single price, UK net income reinvested with no initial charges. Past performance is no guarantee of future returns. Figures as at 30/09/11

-40

0

40

80

120

160

28/09/2001 28/09/2003 28/09/2005 28/09/2007 28/09/2009 28/09/2011

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PORTFOLIO CONSTRUCTION

Diversification across markets

Small Bets

111 Holdings

None larger than 1.5%

Invested across 26 geographic locations

Source: Cavendish/Northern Trust. Figures as at 30/09/11

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Source: Cavendish, Northern Trust.

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ASSET ALLOCATION - NON EQUITIES

0%

5%

10%

15%

20%

25%

30%

Worldwide Fund – Non-equity position to 21st October 2011

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EQUITIES TODAY

• Shorter term uncertainty, positive long term outlook

• Equities cheap on a long term view

• Dividends/yields trending upwards

10 years Dividend MSCI World Index 10 years Price to Book MSCI World Index

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Equity Dividend Yield

0

1

2

3

4

5

6

0

0.5

1

1.5

2

2.5

3

Source: Cavendish, Bloomberg 21/10/11

Price to Book Ratio

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CURRENT FAVOURED THEMES

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Emerging Markets

Developed Economies-prefer US to Europe (ex UK)

Consumer Markets

Manufacturing

Technology

Dividend Growth

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CONCLUSION – CAVENDISH WORLDWIDE FUND

Geographic Allocation of Equity Holdings

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Latin America (6.69%)

Asia Pacific (25.42%)

Europe (ex UK) (14.27%)

Japan (5.71%)

North America (19.65%)

UK (21.71%)

Other (6.56%)

Overweight

Emerging Markets

Looking For…

Growing Consumer Markets

Attractive Valuations

Source: Cavendish, Northern Trust 28/10/2011

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CASE STUDIES

Details were provided on the following:

Youngone - Korea

Trakya Cam – Turkey

Tractor Supply Company – USA.

For more contact Cavendish sales and marketing team as listed overleaf.

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TYRONE LONG Sales Manager

(London, South West and South East)

[email protected]

T 020 8991 4994

M 07850 917 704

CRONAN MACMAHON

Sales & Marketing Director

[email protected]

T 020 8991 4193

M 07850 917 700

MARK HILL Marketing Manager

[email protected]

T 020 8991 4993

BRETT GARLICK Sales Manager (Northern England and Midlands)[email protected] 020 8991 4198M 07713 388 757

www.cavendisham.co.uk

SALES & MARKETING

DEALING

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CONTACTS

0800 028 66 59

0870 870 75 02

WEBSITE

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IMPORTANT INFORMATION

This presentation is for investment professionals only, it is and is not intended for retail clients and may not be distributed to third parties.

Cavendish Asset Management Limited has issued and approved this presentation. It is authorised and regulated in the United Kingdom by the Financial Services Authority under registration number 116252.

This presentation should not be regarded as giving you or your clients investment or tax advice about our products.

You can obtain copies of Cavendish Investments Funds’ Prospectus and Simplified Prospectus, both these documents are in English and are available from the literature page of our website www.cavendisham.co.uk.

The presentation does not form the basis of, nor should it be relied upon in connection with, any subsequent contract or agreement. It does not constitute and may not be used for the purpose of an offer or invitation to subscribe to, or otherwise acquire shares in any of the products mentioned.

Past performance is not a guide to future returns. The value of the shares in the funds and the income from them, if any, may fall as well as rise. Investing in the funds involves risks, including those arising from stock and bond markets, currency exchange rate and interest rate volatility.

Investors should always obtain professional advice before investing in our funds.

Cavendish Asset Management Limited is registered in England no. 735076 at Chelsea House, West Gate, London W5 1DR.

2011/046

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