Thi hink nk Di Differ erent ent! Thi hink nk Di Digital! - - PowerPoint PPT Presentation
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 Benot Flamant Twitter : @benoitflamant Leslie Griffe de Malval
Document réservé aux investisseurs professionnels.
Benoît Flamant
Twitter : @benoitflamant
Leslie Griffe de Malval
Twitter : @lgriffe
Third quarter, 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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Digital Infrastructure Vendors Are Loosing Ground
Trend Company As of 31/12/2015 As of 31/12/2010 Microsoft 2 3 Cisco 33 26 IBM 35 6 Oracle 36 22 HPE+HP Inc. 130 39 EMC 134 100 Nokia 284 128 Ericsson 251 153 Red Hat 500 652 Symantec 519 427
Source : FOURPOINTS, MSCI
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All former top 10 have lost ground except Microsoft Only Microsoft remains in the top 20 Infrastructure Top 10 MSCI World weight down 10%, 27% ex. MSFT
MSCI World Ranking by Market Capitalization
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. 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
Trend Company As of 31/12/2015 As of 31/12/2010 Apple
1 2
Amazon
6 65
10 15
NEW Facebook
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Visa
28 154
Mastercard
55 233
Paypal+eBay
91 166
Priceline
97 300
Netflix
148 707
Yahoo!
246 275
Source : FOURPOINTS, MSCI
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4 companies in the top 20 in 2015 vs. 2 in 2010 Disruptive Top 10 companies’ MSCI World weight up 133%
MSCI World Ranking by Market Capitalization
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. 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
IT, a $4tn market, +0.6% YoY
Digital, a $96tn market, 27x IT market
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Source: Gartner, Statista, Industry Reports, 2016
Digital is also about finance, healthcare, industrials, entertainment… and counting
In tr. USD
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. 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
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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. 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
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As of June 30, 2016, source : FOURPOINTS FUNDS Digital Leaders
0% 5% 10% 15% 20% 25% 30% 35%
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. 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
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Source: FOURPOINTS 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. 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)
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Source: FOURPOINTS IM, Bloomberg, FOURPOINTS Fund Digital Leaders, Class I, as of June 30, 2016 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360
FOURPOINTS Funds Digital Leaders MSCI World EuroSTOXX600
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. 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)
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€ $ FOURPOINTS Funds Digital Leaders*
+0.4% MSCI World
+0.7% EuroSTOXX600
Source : FOURPOINTS IM, Bloomberg, FOURPOINTS 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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Alignment on our Investment Themes Business model Management Execution Valuation High Potential High value creation Game changers Exceptional management Steady Growth Good predictability Moderate 1Y volatility Good FCF yield Visible Growth Lower 1Y volatility High FCF yield
Portfolio Risk Balance (as of June 30, 2016)
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44% of the Fund 33% of the Fund 20% of the Fund
Source: FOURPOINTS 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. 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
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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. 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
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Source: FOURPOINTS Funds Info Tech, Factset, as of June 30, 2016
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)
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. 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
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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. 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
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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 FOURPOINTS 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. 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
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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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
YTD 2016 Performance Contribution
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The Best The Worst
1
Demandware*
1
Avanti Communications
2
S&P Global
2
Barracuda Networks*
3
Proofpoint
3
Workday
4
Grubhub
4
Stratasys*
5
TSMC
5
ServiceNow
* No longer in the portfolio Source: FOURPOINTS IM & FactSet, FOURPOINTS FUNDS Digital Leaders Class I (EUR) 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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Balanced Accross Geographies (as of June 30, 2016)
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Source: FOURPOINTS IM
Bermuda 3.0% Canada 3.8% China 2.4% USA 64.7% France 12.6% Israel 2.8% UK 4.5% Taïwan 2.2% Netherlands 1.4%
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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Breakdown By Market Capitalization (as of June 30, 2016)
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Source: FOURPOINTS IM
28% 43% 2% 22%
LARGE: $10bn-$50bn MID: $1bn-$10bn SMALL: <$1bn XL: >$50bn
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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Portfolio’s Top 10 (as of June 30, 2016)
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Source : FOURPOINTS FUNDS Info Tech
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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
Product Details
FOURPOINTS Funds Digital Leaders SICAV (UCITS IV)
Registration: Luxembourg, Switzerland, Spain, Belgium, France Platforms: Allfunds, Inversis Investment Manager: FOURPOINTS Investment Managers Management company: Degroof Petercam Gestion Institutionnelle Currency: EUR Valuation: Daily Custodian: Banque Degroof Petercam Luxembourg Auditor: KPMG ISIN Codes and Bloomberg ticker: Share R: LU0127700903 (accumulation) / ITTEGLI LX Share I: LU0100548261 (accumulation) / ITTEGLO LX Share USD: LU0620567890 (accumulation) / ITTEUSD LX Share RH: LU0288052094 (accumulation) / ITTGBAL LX ISIN Codes and Bloomberg ticker: EUR Share Class – hedged for USD/EUR currency exposure Share RH: LU0288052094 (accumulation) / ITTGBAL LX Management Fees: Part R / RH: 2.20% Part I / USD: 1.20% Outperformance fees: see the prospectus Cut-off: 10:30 am Luxembourg time Out of scope
FOURPOINTS Digital Team
Benoit Flamant
CIO 19-year experience in asset management 2012 – Present: CIO and Head of Digital Investments of FOURPOINTS IM 1996 – 2012 : Managing Director, CIO and cofounder of IT Asset Management 1988 – 1996 : IBM and Microsoft, Marketing Director 1985 – 1987 : ADI/GSI Software Engineer Ecole Centrale de Paris
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Leslie Griffe de Malval
Lead Portfolio Manager & Analyst Digital Equity 12-year experience in asset management 2012 – Present: FOURPOINTS IM, co-Manager of Digital investments 2007 – 2012 : ITAM. based in Paris, Portfolio Manager for the info tech funds 2004 – 2006 : Associate in venture capital. VPSA. Paris 2003 – 2004 : Analyst in capital risk, Siparex. Paris 2000 – 2002 : Associate in M&A, Arthur Andersen Corporate Finance in Paris Specialized Master’s in Strategy and Management of International Business at ESSEC Business School and Master Degree in Competitive Intelligence
Emmanuelle Ferreira
Portfolio Manager & Analyst 12-year experience in asset management
Julien Chehowah
Equities 7-year experience in asset management
FOURPOINTS Investment Professionals
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Eric Fourrier
Portfolio Manager & Analyst 14-year experience in asset management
Béatrice Philippe
President 43-year experience in asset management
2012- Present: President FOURPOINTS AM and FOURPOINTS IM 1973 – 2012 : President – Co-CIO of Philippe Group 1972 – 1973 : Business International, Paris MBA Finance HECJF. Paris / Stanford’s Graduate School of Business Summer Program / Councillor
2012 – Present: Co-CIO, Deputy Managing Director FOURPOINTS IM 1988 – 2012: Co-CIO, Managing Director of Philippe Group 1987 – 1988 : Banque Financière CARDIF – Director 1972 – 1987 : Nivard Flornoy stockbroker – Director Research on French Equities MBA HEC. Paris / Member of SFAF
Michel Raud
Deputy Managing Director 43-year experience in asset management Louiza Ferrara, CFA
Portfolio Manager &
14 -year experience in asset management
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. any securities nor does it constitute a financial promotion. investment advice or an inducement to participate in any product. offering or investment.
FOURPOINTS IM
Disclaimer: 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, any securities nor does it constitute a financial promotion, investment advice or an inducement to participate in any product, offering or investment. The expectations expressed about the stocks, the market, the economy and other factors represent the opinion of the manager and may not be realised in the future. Performance is presented for a specific
index in any particular period. Vos Contacts
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FOURPOINTS IM 13/15, rue de La Baume 75008 Paris – France Téléphone: +33 (1) 40 28 16 50 www.fourpointsim.com
Stéphane Lenique
Head of Development Europe slenique@fourpointsim.com +33 (0)1 70 75 10 73
Ines Cointet
Sales Manager France icointet@fourpointsim.com +33 (0)1 70 75 10 84
Muriel Faure
Chief Executive Officer mfaure@fourpointsim.com +33 (0)1 40 28 16 50
Julien Mathou
Business Relationship Manager jmathou@fourpointsim.com +33(0)1 70 77 07 78