FO FOURPOINTS URPOINTS Fu Fund nds Dig igital ital Le Lead ader ers: s: Thi hink nk Di Differ erent ent! Thi hink nk Di Digital! ital! Third quarter, 2016 Benoît Flamant Twitter : @benoitflamant Leslie Griffe de Malval Twitter : @lgriffe Document réservé aux investisseurs professionnels.
Digital Infrastructure Vendors Are Loosing Ground MSCI World Ranking by Market Capitalization Trend Company As of As of 31/12/2015 31/12/2010 Microsoft 2 3 All former top 10 have lost Cisco 33 26 ground except Microsoft IBM 35 6 Oracle 36 22 Only Microsoft remains in the top 20 HPE+HP Inc. 130 39 EMC 134 100 Infrastructure Top 10 MSCI Nokia 284 128 World weight down 10%, Ericsson 251 153 27% ex. MSFT Red Hat 500 652 Symantec 519 427 Source : FOURPOINTS, MSCI Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 2 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Digital Is About Economic Disruption MSCI World Ranking by Market Capitalization As of As of Trend Company 31/12/2015 31/12/2010 Apple 1 2 6 65 Amazon 4 companies in the top 20 in 10 15 Google 2015 vs. 2 in 2010 NEW Facebook 11 Disruptive Top 10 Visa 28 154 companies ’ MSCI World Mastercard 55 233 weight up 133% 91 166 Paypal +eBay Priceline 97 300 Netflix 148 707 Yahoo! 246 275 Source : FOURPOINTS, MSCI Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 3 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Digital Adressable Markets Way Bigger than IT Digital, a $96tn market, 27x IT market IT, a $4tn market, +0.6% YoY In tr. USD Digital is also about finance, healthcare, industrials, entertainment … and counting Source: Gartner, Statista, Industry Reports, 2016 Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 4 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
FOUR POINTS Funds Digital Leaders FOUR POINTS FUNDS Digital Leaders, a thematic fund to invest in Digital Transformation For all fund’s companies, digital has to be main structural growth driver, insulating the company from global economy growth Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 5 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
FOURPOINTS Funds Digital Leaders Sector Breakdown Now 35% 30% 25% 20% 15% 10% 5% 0% As of June 30, 2016, source : FOUR POINTS FUNDS Digital Leaders Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 6 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Detailed Sector Breakdown eCommerce Advertising Industrials Healthcare Financial & Payment Media & Entertainment Telecom Source: FOUR POINTS FUNDS Digital Leaders, as of June 30, 2016 Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 7 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Fund Performance since December 31, 2008 (EUR) 360 340 FOURPOINTS Funds Digital Leaders 320 MSCI World 300 EuroSTOXX600 280 260 240 220 200 180 160 140 120 100 80 Source: FOURPOINTS IM, Bloomberg, FOURPOINTS Fund Digital Leaders, Class I, as of June 30, 2016 Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 8 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
YTD Performance (as of June 30, 2016) € $ FOUR POINTS Funds Digital Leaders* -1.8% +0.4% MSCI World -1.6% +0.7% EuroSTOXX600 -7.9% -6.1% Source : FOUR POINTS IM, Bloomberg, FOUR POINTS Funds Digital Leaders Class I en euros, Class USD en dollars, index performance net dividends included, Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 9 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Portfolio Risk Balance (as of June 30, 2016) Alignment on our Investment Themes Business model Management Execution Valuation Visible Growth High Potential Steady Growth High value creation Good predictability Lower 1Y volatility Game changers Moderate 1Y volatility High FCF yield Exceptional management Good FCF yield 44% of the Fund 33% of the Fund 20% of the Fund Source: FOUR POINTS Funds Digital Leaders , % of the fund Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 10 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
An Enterpreneurship And Industrial Approach We look at mid-term value creation We have a significant experience and expertise in digital Benoît Flamant is an engineer (Ecole Centrale de Paris), former IBM and Microsoft executive Leslie comes from a business school (Essec) and is a former tech venture executive We are specialized Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 11 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Very Attractive Valuation And Significant Upside Potential 86% of the fund has a NTM FCF Yield (stock price / FCF per share) better than the S&P 500 (2.2%) 69% of the fund has an EV/FCF ratio better than the S&P 500 (28) All that with much better fundamentals (top line growth, EBIT margins, FCF, gearing) Source: FOURPOINTS Funds Info Tech, Factset, as of June 30, 2016 Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 12 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
2 Acquisitions In June 56% premium 3.1% holding pre-deal 49% premium 2.3% holding pre-deal Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 13 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
FOUR POINTS Funds Digital Leaders The global economy is going digital FOURPOINTS Funds Digital Leaders is a thematic fund to invest in Digital Transformation… …With structural growth drivers uncorellated to the global economy A balanced fund in terms of geographical exposure and risk profile Current valuation level is outstanding Significant upside potential for the fund FOUR POINTS Funds Digital Leaders, a compelling, simple, and focused fund Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 14 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Time For A Change Think Digital Think FOUR POINTS Funds Digital Leaders Past performance does not guarantee future performance - This document does not constitute or form part of an offer to issue or sell. or of a solicitation of an offer to subscribe or buy. 15 any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
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