sextant grand large - rankiapro · •institutional segregated accounts: €650m •wealth...

Sextant Grand Large

October 2019

Amiral Gestion: key figures

An independent fund management company founded in 2003

• 100%-owned by its management and employees

• A team of 45 people, with 24 dedicated to fund management*

• PRI signatory since March 2019

AuM as of August 2019: €3.8Bn

• Mutual funds (Sextant funds): €2.8Bn

• Institutional segregated accounts: €650M

• Wealth management: €320M

Adding manpower in France and abroad

• Fund management team (Singapore office)

• Middle office

• Risk Management

• Development (sales, marketing, client servicing)

Source : Amiral Gestion – Data as of 29/03/2019, but may change over time. For additional information, visit the company website:

www.amiralgestion.com

* Including Weath management and the Madrid and Singapore offices

Sextant Grand Large October 2019 2

Our approach

TeamPhilosophy

MethodologyDecision-making

process

The source of ourperformance

A unique identity


Sextant Grand Large

Emphasis on human resources

A quality fund management team is our priority

• 24 analysts/fund managers* focused on funding the best investment ideas

• Fund managers/analysts from the top financial institutions and schools

Stability over time

• All members of the investment team are company shareholders

• Responsibility and autonomy allow employees to thrive

Employees and investors have the same objectives

• All fund managers are invested in all Sextant funds

• No evaluation or compensation is based on short-term criteria

October 2019 4

* Fund management team, Paris and Singapore offices

Our values

Integrity

• Loyalty to our convictions and transparent communication

• Employees and investors have the same objectives

Independent thinking and collective creativity

• Nurturing original ideas, permanent apprenticeship and critical exchanges…

• But encouraging individual, responsible decision-making

Solidarity and benevolence

• A shared passion for investment underpins our solidarity

• Pursuit of a collective goal

Our investments benefit the economy

• Our mission: bring our investors’ future projects to fruition

• Our responsibility: foster growth of our companies


The investment team – Collective management

Sextant Grand Large October 2019 6Source : Amiral Gestion – Data as of 30/08/2019, but may change over time. For additional information, please visit the website:

www.amiralgestion.com

François BADELONESCP

30 years experience

Julien LEPAGEESC Bordeaux

23 years experience

Eric TIBIHEC

30 years experience

David POULETENS Cachan, DEA Droit

14 years experience

Louis D’ARVIEUHEC, DEA Fiscalité

12 years experience

Raphaël MOREAUESSEC

10 years experience

Bastien GOUMAREDauphine

5 years experience

Julien FAURERotterdam School of

Management

3 years experience

Jacques GOUT LOMBARDUniversité de Montpellier,

4 years experience

(Singapore office)

Jacques SUDREESCP

14 years experience

Youssef LBOUKILIReims Management

School

2 years experience

Otilia BOLOGANBocconi, ESSEC

5 years experience

Paul MANIGAULTHEC

1 years experience

Siddharth CHORARIANY University, Columbia

10 years experience

(Singapore office)

Jon XUYale

1 years experience

(Singapore office)

John KUMLondon Business School,

2 years experience

(Singapore office)

Etienne GUICHERDL’investisseur Français

5 years experience

Mario SANTOSLondon Business

School

5 years experience

Since inception(annualized) AuM2019 1 year 3 years 5 years

SEXTANT PEAEquity stock-picking

Inception date: 18/01/2002

2,1% -15,9% 4,0% 43,2% 12,9% 261 M€

SEXTANT EUROPEEuropean Mid & Large, stock-picking


8,5% -12,5% -4,0% 12,7% 5,6% 23 M€

SEXTANT PMEEuropean SMEs, Stock picking


1,8% -22,0% 1,4% 39,2% 8,9% 88 M€

SEXTANT AUTOUR

DU MONDEInternational stock picking


7,2% -3,1% 14,7% 31,9% 5,5% 118 M€

SEXTANT BOND PICKING

International Bond picking


2,2% 2,4% - - 1,7% 236 M€

SEXTANT GRAND LARGEMulti assets, flexible


2,0% -1,0% 5,2% 30,3% 9,6% 2 115 M€

Data as of 30/08/2019

Sextant funds range

Lo

ng

on

lyfu

nd

sFle

xib

le, m

ult

i-

ass

et

fun

d

Investors should note that past performances are not a guide to future performances.


October 2019Sextant Grand Large 8

SEXTANT GRAND LARGE


SEXTANT GRAND LARGE

INTRODUCTION

Sextant Grand Large

Why choose this fund?

• To benefit from Amiral Gestion’s expertise in stock and bond-picking with optimal exposure to the equity market

A flexible multi asset fund

• Exposure to equities ranges from 0% to 100%

• Benchmark index: 50% MSCI AC World / 50% EONIA

• Equities and bonds from all sectors, all regions (25% maximum EMs) and all capitalisations

An original allocation strategy

• Exposure to equities varies with a quantitative model for long-term market valuation

• No macro-economic or stock-market scenario

Stock and bond selection

• Selection by a committee of the most defensive investments (equities and bonds) already included in other Sextant

funds



SEXTANT GRAND LARGE

INVESTMENT PROCESS

"I never met a man who could forecast the market" Warren Buffett, 1987

• " Forecasts may tell you a lot about the forecaster, they tell you nothing about the future“ W. Buffett


Presentation of the Shiller PE

History of the Shiller PE

• 1934: Graham & Dodd invent method

• 1988/2001: studies by Campbell and Shiller affirm its relevance

Nobel Prize for Economics in 2013

• Robert Shiller was awarded the Nobel Prize for Economics for making it possible to « predict general long-run

price trends for equities and bonds »

A long-term market valuation indicator

• An indicator that sits nicely with our fundamental stock-picking approach

• A weak indicator for a 5-year investment


Shiller PE =𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑖𝑛𝑑𝑒𝑥

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑟𝑜𝑓𝑖𝑡𝑠 𝑜𝑣𝑒𝑟 10 𝑦𝑒𝑎𝑟𝑠 𝑎𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝑓𝑜𝑟 𝑖𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛

A relevant indicator


Applying the Shiller PER to Sextant Grand Large


The Shiller PER determines our ideal exposure to equities

• The historical average of the Shiller PER is 17

• At this average level of valuation, our exposure is 50%

The Shiller PER used is a global indicator

• Based on the weighted average of Shiller PERs of 5 regions

• Weightings are coherent with our investment universe and the breakdown of global market capitalization

Eurozone USA Asia ex-Japan Japan UK

30% 30% 25% 10% 5%

Cyclically adjusted PER Markets valutation Equity Exposure

23 High 25%

17 Average 50%

13 Low 75%

«Buy on the rumor, sell the fact»


Equity exposure over the last 5 years

Source: Amiral Gestion as of August 2019

15%

20%

25%

30%

35%

40%

45%

50%

15

16

17

18

19

20

21

22

23

24

25

08/14 02/15 08/15 02/16 08/16 02/17 08/17 02/18 08/18 02/19

Shiller PE (L scale) Historical net exposure (R scale)

Common management principles for equity and bond markets


EQUITIES BONDS

Focus on company fundamentals rather

than markets

Reason like a co-owner of company Reason like a creditor

Selecting investments

(picking)

Model and value each company

without relying on brokers

In-house credit analysis without

relying to rating agencies

Unlimited investment universe All countries and all capitalisations Government bonds, Investment Grade,

High Yield, corporates, financial, senior,

subordinated

Prefer less efficient segments Small & Midcaps Unrated issuers, convertible bonds,

subordinated, perpetuals etc.

No macro-economic bets No trend-following or

sector-rotation strategy

Focus on low and moderate modified

duration

Stock-picking


Stocks already present in other Sextant funds

Stocks that are tracked by - and

familiar to - one or several Amiral

Gestion fund managers

No constraints in terms of

capitalization, sector or region

Stocks with limited downside potential

Recurring and predictable revenue

streams, barriers to entry, quality

and transparency

A minimum valuation close to the

current price: cash available …

Examples of past stock-picks

This information is not intended to serve as investment advice or a recommendation to invest

Bond-picking


What we seek

• Quality of fundamental risk

• Yield

• Spread

• Primo-issuers

• Solvent issuers in a country or sector in crisis

• Issuers in difficulty whose next payment is covered

• Convertible bonds whose conversion option is no

longer in the money

• Paper issued in a currency that is not the issuer’s

main currency

• …

What we avoid

• Interest-rate sensitivity

• Currency risk

• Moderate-duration issues

• Hedging of forex risk (max 20% unhedged)

• …

Criteria for bond-picking

This list does not constitute a commitment by Amiral Gestion concerning the selection of securities. We remind investors that portfolios are constructed at the sole discretion of the

fund manager, on the basis of yield, credit risk and sensitivity (rate risk and spreads) of the securities selected.


SEXTANT GRAND LARGE

THE ENVIRONMENT

Context for valuation of equity markets

Cyclical peaks: 2007 vs 2019 ?

• Theoretical equity exposure: 5% in 2007, 28% today

• High dispersion of valuations with more opportunities in Europe and Asia

>30,0 28,0 25,4 22,8 20,1 17,5 14,9 12,3 9,6 7,0

Valorisation faibleValorisation élevée


Shiller PE as of January 2007: 28.7x Shiller PE as of August 2019: 21,9x

Source: Amiral Gestion, Bloomberg, as of August 2019

Too lower expected returns on equities?


Correlation between US equity allocation and expected returns

Source: FRED, Bloomberg, Amiral Gestion as of january 2019

Lower yields / higher duration

European Investment Grade yield and duration during the last decade

4

4.5

5

5.5

6

6.5

7

7.5

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Yield (L scale) Duration (R scale)


Source: Bloomberg as at May 10th 2019


Markets subject to influence

Forecasting difficulties and non-financial considerations

An unprecedented situation which continues

Money markets stuck at the bottom

Absolute return remains low, high inverse risk

Historical margin compression

-0.5

0.5

1.5

2.5

déc.-11 déc.-13 déc.-15 déc.-17

0

100

200

300

400

500

600

700

800

déc.-11 déc.-13 déc.-15 déc.-17

German 10Y sovereign rates

Itraxx Xover 5Y

Source: Bloomberg as of August 2019


SEXTANT GRAND LARGE

PORTFOLIO POSITIONING


A defensive allocation against a backdrop of overvalued markets

Equities: Gradual decrease in exposure as valuations

rise

Hedge: A hedged bucket that contributed

to performance (index futures)

Money market:Actively managed, a significant reserve that

leaves scope to seize future market

opportunities

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2012 2014 2016 2018

Money market

Bonds

Short

Equity markets net exposure

Historical breakdown

Source: Amiral Gestion, from January 2010 to August 2019

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

France Europe Ex France

Americas Asia ex Japan

Japan


Towards greater geographic diversification

USA: Down, market valuations look excessive

France: Down

• Less small caps,

•Need for a better geographic breakdown

Asia – especially Japan: Regular increases, good risk/reward profile

Historical breakdown


Focus on Japan, the largest position after France


• A structural rise in shareholder returns from low bases

• A structural rise in ROE as margins improve from low bases

Median net debt of Japanese, European and US companies


A more liquid portfolio

Large cap: Increase

• Following the stock-market rally by small

caps from 2015 to 2017

Small Cap:

• Back on stocks since the 2019 summer,

especially in Asia and Europe

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017 2018 2019

Small Caps <500M Mid Caps 500M - 2Mds

Large Caps >2Mds

Historical breakdwon


Top 5 holdings


TOP 5 Equity TOP 5 Bonds

Sources : Amiral Gestion, as of August 2019


Name Country %

Berkshire Hathaway USA 3,1%

Rocket Internet Germany 2,0%

Alibaba China 1,4%

Hoshizaki Japan 1,1%

Hyundai Mobis South Korea 1,1%

Name Country %

Casino Guichard Perp France 1,3%

Solocal 2022 France 1,2%

USB Realty 2022 USA 1,0%

Playtech 2019 UK 1,0%

Econocom 2023 Belgium 0,9%

A defensive positionning

September 2019Sextant Grand Large 31

Bonds bucket: 15,4%• Corporate: 10,4%

• Financials: 3,3%

• Convertibles: 1,7%

32.5%

1.0%

2.0%49.9%

15.4%

Equities Gross exposure

Hedge

Gold

Money market

Bonds

Asset classes breakdown

Sources : Amiral Gestion, as of August 2019


Indicators FI bucket Global fund

Yield 6,5% 1,0%

Yield

after currency hedging 6,1% 0,9%

Spreads in bps 667 103

Maturity 2,9 0,4

Modified duration 2,3 0,4


SEXTANT GRAND LARGE

PERFORMANCE PROFILE

Sources : Amiral Gestion, Quantalys, as of August 2019 – A share

Please note that past performances are not a guide to future performances, and that they are not constant over time

Cumulative

performance

Annualised

performance

Sextant Grand Large 341,1% 9,6%

EuroStoxx 50 (total return) 119,7% 5,0%

International flexible alloc. 79,6% 3,7%

50% MSCI World

+ 50% Eonia172,9% 6,4%

Historical performances

Sextant Grand Large September 2019 33

0

2

4

6

8

10

12

0 10 20 30

Annualized volatility in %A

nn

ual

ize

dp

erf.

In %

50

100

150

200

250

300

350

400

450

500

2003 2005 2007 2009 2011 2013 2015 2017

Sextant Grand Large Eurostoxx Alloc. Flexible Monde 50% MSCI World + 50% ML Global

Changement de process de gestion

50

100

150

200

250

300

350

2008 2010 2012 2014 2016 2018

Sextant Grand Large Eurostoxx Alloc. Flexible Monde

Resilience in falling markets

Sources : Amiral Gestion, Quantalys, as of August 2019 – A share

Please note that past performances are not a guide to future performances, and that they are not constant over time

October 2019 34

Event/period Sextant Grand Large EuroStoxx 50International flexible

alloc.

Sovereign debt crisis (2011) -12.0% -30.2% -8.8%

Stock-market crash in China (2015) -1.3% -17.5% -7.0%

End 2015 / early 2016 -5.8% -19.6% -9.2%

January/February 2018 -1.6% -7.7% -3.1%

October/December 2018 -3.2% -12.8% -7.1%

August 2019 -0.2% -1.0% -0.4%

Why select Sextant Grand Large?

To profit from the Amiral Gestion team’s expertise in stock and bond picking

To benefit from a contrarian approach to allocation:- A defensive profile at times of high valuations- An offensive profile when valuations are low

A defensive fundamental approach for stock’ selection

Consider increases in volatility as opportunities to strengthen and a reservoir of performance for future years


September 2019Sextant Grand Large 36

APPENDIX

Main characteristics

Legal structure A mutual fund (FCP) under French law

Share category A-shares for all investors

ISIN code FR0010286013 (A share)

Bloomberg code AMSEGLA FP

Inception date 11 July 2003

Benchmark 50% MSCI World + 50% EONIA

Valuation Daily

Recommended investment horizon Minimum 5 years

Centralisation settlement/delivery J at 10h00 / J+2

Custodian Caceis Bank

Centralising agent Caceis Bank

Entry/exit fee 2% max including tax / 1% max including tax

Ongoing fees 1.71% (on the basis of the preceding year to December 2018)

Performance fees 15% including tax of the performance from 5% pa


Main risks

• Capital loss

• Equity markets

• Size of capitalisation

• Forex

• Credit

• Derivatives

We invite you to refer to the Key Investor Information Document or the prospectus of funds for a definition of each of these

risks and to consult us if the definition is unclear. Please see the next page for risk attached to subordinated debt



WarningsPlease note that the past performance of UCIs presented in this document is not a guarantee of future performance and may bemisleading. Performance is not constant over time. The value of the investments and the income derived therefrom may vary up or downand is not guaranteed. It is therefore possible that you will not recover the amount originally invested. Variations in exchange rates mayincrease or decrease the value of the investments and the income derived therefrom, if the reference currency of the UCI is different fromthe currency of your country of residence. UCIs whose investment policy especially targets specialised markets or sectors (like emergingmarkets) are generally more volatile than more general and diversified funds. For a volatile UCI, the fluctuations can be particularlysignificant, and the value of the investment may therefore drop sharply and significantly. The presented performance figures do not takeinto account any fees and commissions collected during the subscription and redemption of the units or shares of the UCIs concerned. Thepresented portfolios, products, or securities are subject to market fluctuations, and no guarantee can be given as to their futureperformance. The tax treatment depends on the individual situation of each investor and may be subject to changes.

The Undertaking(s) for Collective Investment (UCI) presented above is (are) organised according to French law and regulated by theFrench financial markets authority (AMF). As the UCIs may be registered abroad for their active marketing, it is up to each investor toensure the jurisdictions in which the UCIs are actually registered. For each jurisdiction concerned, investors are urged to refer to thecharacteristics specific to each country, indicated in the “administrative characteristics” section. The issuer of this document is AmiralGestion, which is an investment management company authorised and regulated by the French Financial Markets Authority (www.amf-france.org) under number GP-04000038. The presented information is not intended to be disseminated and does not in any caseconstitute an invitation for US persons or their agents. The units or shares of the UCIs presented in this document are not and will not beregistered in the United States pursuant to the US Securities Act of 1933, as amended (hereinafter the “Securities Act”), or admitted underany law of the United States. The units or shares of the said UCIs must not be offered or sold in or transferred to the United States,including its territories and possessions, or directly or indirectly benefit a “US Person”, within the meaning of Regulation S of theSecurities Act, and equivalent persons, as referred to in the US “HIRE” Act of 18 March 2010 and in the FATCA provisions. The informationcontained in this document does not constitute investment advice, an investment recommendation, or tax advice. The information doesnot presume the suitability of the presented UCIs for the needs, profile, and experience of each individual investor. In case of doubts as tothe presented information or the suitability of the UCIs as to the personal needs, and before any decision to invest, we recommend thatyou contact your financial or tax advisor. Investment in units or shares of any UCI is not risk-free. Before any subscription in an UCI, pleaseread the prospectus carefully, especially its section relating to risks, and the key investor information document (KIID). The net assetvalue (NAV)/net inventory value (NIV) is available at www.amiralgestion.com. The sources of the performance data presented in thisdocument are specified on each slide.

Pablo MARTÍNEZ BERNAL

Responsable de Relación con Inversores

M. +34 622 33 77 [email protected]

Oficina Madrid

Calle María de Molina, 54, 5º

C.P. 28006

[email protected]

Francisco RODRÍGUEZ D’ACHILLE

Responsable de Desarrollo de Negocio Institucional

M. +34 674 603 869

[email protected]

sextant grand large - rankiapro · •institutional segregated accounts: €650m •wealth...

Documents