Quarterly update 31 December 2013 3-year 5-year 10-year N/A Fund - - PowerPoint PPT Presentation

Quarterly update 31 December 2013

N/A 3-year 5-year 10-year

Fund performance and NAV (EUR)

Fourth quarter 2013 +6.3% Year 2013 +17.5% NAV share class RC 11.75 NAV share class IC 11.37

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Performance

• The fund gained 5.1% in the first

half of 2013, which was about 5% worse than MSCI World Net. During the period the best performing sector exposure was renewable energy, while the worst performing regional exposure was Asia.

• During the second half of 2013 the

fund gained 12.5%, which was about 3% better than MSCI World

• Net. The strong performance can

be contributed mostly to the exposure against environmental technology in Europe, but renewable energy continued to perform very well too. Our exposure to Asia continued to underperform MSCI World.

• For the full year, Europe was the

best contributor to the fund’s

• performance. Asia was the worst

contributor, especially environmental technology in the region.

Fund performance vs MSCI World Net, 2013 (EUR)

Source: MSCI, CB Fonder

+17.5% +21.2%

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News flow during the quarter

• Climate change, population growth and urbanisation can make water the most valuable commodity in the

world, SCA writes in its magazine Shape. Fresh water is a scarce commodity. Only 2.5% of the water on the planet is fresh and most of it is in glaciers and polar ice caps. Gustaf Olsson, professor in industrial automation at Lund university in Sweden, makes the following comparison: ”If all the water in the world would fit into a 10-liter container, all the accessible freshwater in our rivers and lakes would fill a one millilitre measuring spoon.” Read more…

• Air pollution is more harmful than passive smoking according to two reports from the World Health Organization

(WHO). Air pollution was responsible for 3.2 million deaths in 2010 and of those 223 000 was caused by lung cancer. Read more…

• China has serious problems with air pollution. NOAA has published a satellite image that very clearly shows the
• problem. See it here.
• Oil sands and the shale gas revolution lead to an increased demand for water investments from the oil and

gas sector, writes RobecoSAM. Canada – known for vast reserves of oil sands - is mentioned as an example. Another mentioned fact is that one produced barrel of oil require one barrel of water. Read more…

• The global sea and land temperature was the highest ever in November 2013. Measurements go back 134 years

and has never reached as high temperatures. The temperature was 0.78 degrees Celsius over the historical mean. Read more…

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Picture of the quarter 1

In the green countries solar energy is competitive with conventional energy without subsidies; in the red countries solar energy is not competitive. The grey countries are not analysed. The yellow boxes show population and the cost savings, in percent, that can be achieved if conventional energy is replaced with solar

• energy. 60% of the world’s population live in areas where solar energy is competitive!

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Picture of the quarter 2

Energy revolution! ”The falling satellite” below (grey line) shows how the cost of solar energy has developed over time. It is still more expensive than conventional energy, however, the trend is evident for solar energy (down) and conventional energy (up). The graph is as of 2012; according to the author of the analysis solar energy was cheaper than oil globally at the end of 2013 and cheaper than natural gas in Asia at the same time, measured as $/MMBTU. And most importantly: this trend will continue for years to come.

Source: EIA, CIA, World Bank, Bernstein analysis

Price development (real in $/MMBTU) for gas, coal, oil, liquefied natural gas and solar energy

• Index for renewable energy (including dividends): WilderHill New Energy Global Innovation

Index

• Water index (including dividends): S&P Global Water Index
• Index for clean technology (including dividends after tax): The Cleantech Index
• World index (including dividends after tax): MSCI World

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Performance during the quarter (EUR)

The fund and benchmark indices The fund and country / regional indices

• Index for renewable energy (dividends included): WilderHill New Energy Global Innovation

Index

• Water index (dividends included): S&P Global Water Index
• Index for clean technology (dividends after tax included): The Cleantech Index
• World index (dividends after tax included): MSCI World

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7 +17.5%

• 46.9%

+53.4% +1.1% +43.6%

Performance since inception (EUR)

The fund and benchmark indices

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Source: CB Fonder, Lipper, MSCI *Monthly data from Lipper for the period 30 June 2008 – 31 December 2013, in EUR.

• Since inception in June 2008, two
• f the three sectors we invest in

have performed very poorly – the exception is the water sector that has performed well. Our ambition is that the fund shall be a low risk alternative in a high risk sector – in this we have succeeded. However, the performance has so far not met

• ur expectations.
• In light of the poor performance in

the environmental sector since fund inception, 2013 was an encouraging year. For the first time since 2009 both environmental technology and renewable energy

• utperformed MSCI World – a

trend reversal. The fund performed in line with the broad market indices, with low risk.

Year 2013 (EUR) Since inception* (EUR)

The fund compared to index - performance and standard deviation

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The fund compared to peers

Source: CB Fonder, Lipper

Performance and risk, since inception (EUR)* Sharpe, since inception*

*Monthly data from Lipper for the period 30 June 2008 – 31 December 2013, in EUR.

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Sector and geographical allocation

Sector allocation, 36 months Geographical allocation, 36 months

*Including cash in underlying funds. As of December 2013 As of December 2013

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Largest company exposures

Portfolio

• A strong trend for the water sector is

shale gas in USA that demand enormous amounts of water (11-19 million litres of water per drill hole). The water companies take advantage mainly in two ways:

• The water is distributed to and

from the drill holes, which requires infrastructure in the form of water pipes.

• Large amounts of chemicals are

added to the water, which requires treatment of the water after use.

• European companies within energy

efficiency have often much experience and also world leading technologies in the area, because of the demanding European regulation.

Company Country Sector Market cap (billion €) USA Water 11.1 Germany Cleantech 0.3 Germany Cleantech 0.4 Netherlands Cleantech 1.8 Austria Renewable energy 4.7 USA Water 5.4 France Cleantech 6.1 Belgium Cleantech 0.9 USA Water 38.8 USA Cleantech 7.2

Trends

Pentair American Water Danaher Schaltbau Centrotec Arcadis Valeo Melexis

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Risk analysis - correlations

Source: CB Fonder, MSCI, Reuters *Monthly data from MSCI and Reuters for the period 31 December 2008 – 31 December 2013, in EUR.

• The fund’s benchmark index is MSCI World, which it has the highest correlation with. Asia,

Europe and USA are the regions we mainly allocate between, of which the fund has the highest correlation with Asia followed by Europe.

MSCI index, 5 years*

• The water sector is the most mature sector, with the most global and stable companies – the sector also has a high

correlation with MSCI World. In the fund we have, and have had, high exposure to the sector which explains the fund’s high correlation with both MSCI World and S&P Global Water index. Renewable energy differ from both the water sector and MSCI World mainly because of the sector’s immature characteristics, with young companies and volatile stock prices.

World and sector index, 5 years*

Save Earth Fund World Europe USA Asia Save Earth Fund 1.00 0.88 0.81 0.79 0.85 World 1.00 0.88 0.94 0.86 Europe 1.00 0.69 0.75 USA 1.00 0.74 Asia 1.00 Save Earth Fund MSCI World WilderHill New Energy S&P Global Water Cleantech index Save Earth Fund 1.00 0.88 0.82 0.90 0.88 MSCI World 1.00 0.72 0.87 0.85 WilderHill New Energy 1.00 0.67 0.88 S&P Global Water 1.00 0.84 Cleantech index 1.00

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Risk analysis – standard deviation and beta

Standard deviation*

• The fund’s standard deviation is consistently lower than that of the benchmark, MSCI World

Beta against MSCI World*

• The fund’s beta is consistently below 1

8.1% 6.6% +0.59

*36 months data on a 60-day rolling basis (EUR)

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Summary

• Offers a green and global equity exposure through the best managers in the world.
• Three megatrends – in one fund. Save Earth Fund is one of few environmental funds which are

free to allocate between the sectors renewable energy, cleantech and water management, as well as geographically.

• Since inception of the fund in the summer of 2008, many stocks within renewable energy have
• collapsed. During the same period, Save Earth Fund has fared well due to very active

management

• Save Earth Fund has low risk in a segment that is characterized by high risk. The fund's risk

level (standard deviation) is in line with the world index (MSCI World) and significantly lower than that of peers.

• The growth rates within renewable energy, cleantech and water management is higher than that

for global equities in general. At the moment we see several growth enhancing trends, such as severe and alarming air pollution in China and huge needs for water treatment in the wake of the shale gas boom in the US.

• The fund is managed by a team of three portfolio managers.

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Share classes

CB Save Earth Fund, RC

• Management fee:1.0%
• Performance fee: 20% of positive return > MSCI World Net, with collective,

eternal and both absolute and relative High-Water Mark

• Dividend: No
• ISIN: LU0354788688

CB Save Earth Fund, IC

• Management fee: 0.5%
• Performance fee: 20% of return > MSCI World Net, with collective, eternal

and relative High-Water Mark

• Dividend: No
• ISIN: LU0354788506

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• Fund name:

CB Save Earth Fund

• Manager:

CB Asset Management AB

• Domicile:

Luxembourg

• Custodian:

SEB Fund Service, Luxembourg

• Auditor:

PricewaterhouseCoopers S.ár.I.

• UCITS-classification:

UCITS IV

• Currency:

EUR

• Liquidity/NAV:

Daily/Daily

• Fund launch:

June 9, 2008

• Minimum investment:

RC: None, IC: €500 000

• ISIN/Reuters/Bloomberg:

RC: LU0354788688 / 913218.FBF / CBSVERC LX IC: LU0354788506 / 68173241 / CBSICAE LX

Fund facts

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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 Save Earth Fund (the “Fund”). The preceding/upcoming pages constitute a summary only. No assurance can be given that the investment objective will be achieved, and investment 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.