Quarterly update 30 September 2014 3-year 5-year 10-year N/A Fund - - PowerPoint PPT Presentation
Quarterly update 30 September 2014 3-year 5-year 10-year N/A Fund performance* and AUM (EUR) NAV, 30 September 2014 (EUR) Class RC 12.67 Q3 2014 +0.3% Class IC 12.31 YTD 2014 +7.8% Class ID 9.96 5 yrs (annualised) +7.1% AUM (mn)
Q3 2014 +0.3% YTD 2014 +7.8% 5 yrs (annualised) +7.1% AUM (mn) 15.20 Class RC 12.67 Class IC 12.31 Class ID 9.96
Fund performance* and AUM (EUR) NAV, 30 September 2014 (EUR)
Quarterly update 30 September 2014
N/A 3-year 5-year 10-year *Class RC
The strategy and the team
top managers within renewables, cleantech and water
About Save Earth Fund
Financial Supervisory Authority
administration is performed in Luxembourg
About CB Fonder The team
Carl Bernadotte
Portfolio manager/owner >25 years’ experience Born 1955
Marcus Grimfors
Portfolio manager 6 years’ experience Born 1981
Alexander Jansson
Portfolio manager/CEO 6 years’ experience Born 1983
Erik Allenius Somnell
Business development 2 years’ experience Born 1984
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Investment-case: Three megatrends
Water treatment
Cleantech
Renewable energy
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Portfolio management: Multi-Manager
Every asset manager has a certain skill: one can be a specialist in Swedish Large Caps, another in Emerging Market high-yield debt. To be an expert in every field is hard if not impossible, and generally the complexity increases when analysing lesser developed markets, sectors or companies. Our ambition is to identify the managers that, over time, have performed best-in-class in each region and/or sector in order to deliver the best possible overall performance. To make a simple illustration of this point, we have made a comparison between the personal best marks of Carolina Klüft (successful Swedish heptathlon athlete) and the gold medallists' performance in each individual event in the 2012 London Olympics. Carolina’s performances are of course astonishingly good but can in no single event match that of the specialist. Multi-manager, or Fund of Funds, is in others words a method of identifying and selecting specialists with the ambition to deliver a consistently higher return: the whole is greater than the sum of the parts.
Gold, London 2012 Olympics 12.35 s 2.05 m 21.88 s 20.7 m 7.12 m 69.55 m 1:56.19 Carolina Klüft Personal best 13.15 s 1.95 m 22.98 s 15.05 m 6.97 m 50.96 m 2:08.9
Source: Wikipedia
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Environmental strategies as an asset class: a ”satellite”
risk/return profile as the broad market (e.g. MSCI World) and to add smaller positions (10-20% of the portfolio) in niche strategies, so called satellites, with a different risk/return profile.
different risk/return profile, have the right characteristics to fit well in this type of strategy as a satellite/complement to the core in a global portfolio. Compare, for example, with the characteristics of emerging markets.
Large caps in developed markets Example of a Core/Satellite-portfolio
Bonds Environmental strategies Hedge funds EM HY Credit Real Estate
Environmental strategies as a complement to a global portfolio
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Environmental strategies as an asset class: a ”satellite”
broad developed market indices (MSCI Europe, MSCI World and MSCI USA).
from that perspective it can be argued that the sector is part of the core rather than the satellites.
Risk and return, 10 years (EUR) Risk and return, 2 years (EUR)
Source: S&P, MSCI, Reuters
Environmental strategies as a complement to a global portfolio
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The fund in (Swedish) media
News report about environmental investing and interview with Alexander Jansson
EFN, 23 Sep 2014
News report about the water sector and interview with Alexander Jansson
EFN, 24 Sep 2014
“’It is mainly companies within renewable energy that has performed really well this year’, says Alexander Jansson, who manages the environmental fund CB Save Earth, which in the last 12 months has returned 26 percent [in SEK] … The portfolio manager do not hold high expectations for the UN Environmental Summit this week. ‘These summits rarely lead to anything
Renewable energy, cleantech and other similar sectors have come to look more like mature industrials’, he states.”
Swedish business newspaper Dagens Industri, ”Lönsamt att satsa på miljö”, 24 Sep 2014
N.B. Our translation
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The sector in the media: The Rockefellers ”goes green” and Martin Wolf questions fossil fuel subsidies
‘John D Rockefeller, the founder of Standard Oil, moved America out of whale oil and into petroleum,’ Stephen Heintz, president of the Rockefeller Brothers Fund, said in a statement. ‘We are quite convinced that if he were alive today, as an astute businessman looking out to the future, he would be moving out of fossil fuels and investing in clean, renewable energy.’ ‘With Monday’s announcement, more than 800 global investors – including foundations such as the Rockefeller Brothers, religious groups, healthcare organisations, cities and universities – have pledged to withdraw a total of $50bn from fossil fuel investments over the next five years.’
The Guardian, “Heirs to Rockefeller oil fortune divest from fossil fuels over climate change”, Sep 22
The report estimates subsidies to fossil fuels at $600bn a year, against subsidies of just $90bn to clean energy. This makes no sense at all.
Martin Wolf in Financial Times, ”Clean growth is a safe bet in the climate casino”, Sep 23 2014. Read the full article here.
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Performance: The fund and indices
Source: MSCI, CB Fonder
+14.7% +23.3%
Performance for different sector indices, 1 year (EUR)
case for MSCI World, the latter driven by a strengthening US dollar as well as a very strong performance in the US stock market.
is also the leading performer gaining 23.3% during the last 12 months.
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Source: CB Fonder, Bloomberg
Performance and risk, since inception (EUR)* Sharpe, since inception*
*Monthly data from Bloomberg for the period 2008-06-30 – 2014-09-30, EUR.
Performance: The fund and peers
Standard deviation Return p.a.
high risk. The fund has, since inception in 2008, had a significantly lower risk than many competitors while delivering a highly competitive return; a combination that results in a high Sharpe ratio.
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The portfolio: Largest exposures
Largest company exposures
*Estimation made from data available on the holdings of underlying funds as well as Save Earth Fund’s exposure to these funds, as of 30 September 2014.
expected, which gives attractive valuations (given that these numbers are met): PEG ratio of 1.3.
long history; no mayflies.
and growth companies.
portfolio (6-10 managers; 6 as
company exposures are fairly large.
Company Founded/listed Country Sector Market cap, € bn Share of AUM* EPS growth, 2015E PEG, 2015 DY American Water 1886/2008 USA Water 6.9 2.2% 7.8% 2.4 2.5% Pennon Group 1989/1989 UK Water 4.0 1.8% 13.0% 1.5 4.5% Suez Environnement 1858/2008 France Water 7.3 1.7% 18.3% 0.9 5.0% Arcadis 1888/1995 Holland Cleantech 2.0 1.6% 21.7% 0.6 2.3% Andritz 1852/2001 Austria Renewables 4.3 1.6% 33.2% 0.5 2.4% Veolia Environnement 1853/2000 France Water 7.8 1.5% 66.2% 0.3 3.1% United Utilities 1989/1989 UK Water 7.3 1.5%
A.O. Smith Corp 1874/1983 USA Water 3.9 1.5% 12.6% 1.5 1.2% Xylem 2011/2011 USA Water 5.3 1.5% 15.3% 1.1 1.4% Geberit 1874/1999 Switzerland Water 9.8 1.5% 6.8% 3.3 2.0% Total/Average 5.9 16.3% 18.6% 1.3 3.0%
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The portfolio: Exposure, share of AUM
Sector allocation, 36 months Geographical allocation, 36 months
As of September 2014 As of September 2014 *Including cash in underlying funds.
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Risk profile: Standard deviation and beta
*36 months data on a 60-day rolling basis (EUR)
Standard deviation* Beta against MSCI World*
8.5% 8.4%
The fund’s standard deviation is consistently lower/in line with that of the benchmark, MSCI World The fund’s beta is consistently below 1
+0.84
Period 1. 2008-06-13 - 2009-03-09
11.1% 2. 2010-04-26 - 2010-07-02
2.3% 3. 2011-02-17 - 2011-08-19
4. 2013-05-21 - 2013-06-24
0.6% Outperformance Fund Index Drawdown (EUR)
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Source: MSCI, CB Fonder
The fund compared to MSCI World during the largest drawdowns (EUR)
1 2 3 4
The fund has consistently performed well compared to index (MSCI World) during drawdowns
the performance of the fund in drawdowns to be a testament to this.
Risk profile: The fund’s ability to preserve capital
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Summary
to allocate between the sectors renewable energy, cleantech and water management, as well as geographically.
lower than that of most peers.
sectors as well as to cash (to preserve capital). A large exposure to the water sector has been very important.
fact that more and more companies survive on their own, without subsidies, is crucial for a well-functioning market where investors are looking for long-term outperformance.
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Share classes
CB Save Earth Fund, RC
collective, eternal and both absolute and relative High-Water Mark
CB Save Earth Fund, IC
eternal and relative High-Water Mark
CB Save Earth Fund, ID
eternal and relative High-Water Mark
N.B. The performance fee will be removed shortly
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Fund facts
CB Save Earth Fund
CB Asset Management AB
Luxembourg
SEB Fund Service, Luxembourg
PricewaterhouseCoopers S.ár.I.
UCITS IV
EUR
Daily/Daily
RC/IC: No/No, ID: No/Yes*
June 9, 2008
RC: None, IC/ID: €500 000
*Max 1%, dependent on customer relationship
RC: LU0354788688 / 913218.FBF / CBSVERC LX IC: LU0354788506 / 68173241 / CBSICAE LX ID: LU1053083884 / N/A / CBIDLUX LX
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Disclaimer
This document is neither an offer to sell nor a solicitation to invest. Such offers or solicitations must be preceded or accompanied by a current offering document of the funds. This document is submitted to you confidentially solely in connection with your consideration of an investment in CB Save Earth Fund (the “Fund”). The preceding/upcoming pages constitute a summary
results may vary substantially over any given time period. Past performance is not necessarily indicative of future results. The fund involves a degree of risk. An investor in the fund could lose all or a substantial amount of his or her investment. The fund has fees that will reduce returns. The fund’s performance may be volatile.