Oyster global high dividend october 13
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Transcript of Oyster global high dividend october 13
October 2013
OYSTER Global High DividendWelcome to HiDi Land!
For professional, qualified and institutional investors only
© 2013 OYSTER Funds
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendHighlights
Return from dividends is a large part of long term total equity returns
Unique process combining quantitative screening and fundamental analysis
Focus on quality companies with robust and growing dividend yields
Well diversified portfolio across sectors, regions & market caps
Aims to offer income & capital gains and a yield above MSCI ACWI Net USD
October 2013
Page 2
A strategy aimed at delivering an optimal total return via quality companies
paying robust, growing dividends
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Table of contents
October 2013
Page 3
The case for high dividend stocks
Investment philosophy and process
Investment team
Portfolio review
Fund key facts
The SYZ & CO Group
I
II
III
IV
V
VI
4
12
21
24
34
36
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Table of contents
October 2013
Page 4
The case for high dividend stocks
Investment philosophy and process
Investment team
Portfolio review
Fund key facts
The SYZ & CO Group
I
II
III
IV
V
VI
4
12
21
24
34
36
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Dividends are a key component of long term return
Reinvesting dividends improves total returnDividend growth is a crucial part of long term return, alongside dividend yield
Source: Elroy Dimson; Paul Marsh and Mike Staunton; Triumph of the Optimists; authors’ updates
Source: MSCI, Société Générale
Breakdown of real return since 1970
Past performance does not guarantee or predict future performance. Reference to an index is made for comparison purposes only.
October 2013
Page 5
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Why focusing on dividends?
Source: UBS
Dividends:
are more stable and predictable than earnings …
are paid in cash and thus are not prone to accounting tricks …
force companies to be disciplined with their capital allocation
Source: UBS
Past performance does not guarantee or predict future performance
October 2013
Page 6
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Dividend yields are attractive vs. fixed income yields
Current environment is supportive
October 2013
Page 7
Dividend payouts are below their long term average (as % of five year trend in earnings)
Source: Thomson Reuters Datastream
75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11
20
30
40
50
60
70
80
90
WorldUSUK
Euro-ZoneJapan
Source: Thomson Reuters Datastream
86 88 90 92 94 96 98 00 02 04 06 08 10 12
0
2
4
6
8
10
12
U S equitiesU S Treas ur iesU S IG c orporate bonds
U S 3M c as h (T-Bills )
Sourc e: Thoms on R euters D atas tream
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
October 2013
Page 8
No obvious correlation with interest rates...
Source: Bernstein
High Dividend Yield vs. Non-paying companies
Historical Price-to-book valuation with US 10-year Treasury yield 1965 – 23.09.2013
0%
2%
4%
6%
8%
10%
12%
14%
16%
0.4x
0.5x
0.6x
0.7x
0.8x
0.9x
1.0x
1.1x
Jul-65 Jul-69 Jul-73 Jul-77 Jul-81 Jul-85 Jul-89 Jul-93 Jul-97 Jul-01 Jul-05 Jul-09 Jul-13
US
10
-Year
Tre
asu
ry y
ield
Rela
tive v
alu
ati
on
mu
ltip
le
Price-to-Book
10-Year US Treasury
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
0.4
30
40
50
60
70
Jun-95 Jun-97 Jun-99 Jun-01 Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13
US ISM PURCHASING MANAGERS INDEX (MFG SURVEY) SADJ
(MSCI World High Dividend TR USD / MSCI AC World TR USD) Rolling 1Y
October 2013
Page 9
...or with economic cycles…
(MSCI World High Dividend TR USD / MSCI AC World TR USD)
Rolling 1Y vs. ISM US
Source: Thomson Reuters Datastream
Correlation -0.26
R Square 0.07
Observations 207
Regression Statistics
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Long term outperformance of high dividends strategies
Source: Société GénéralePast performance does not guarantee or predict future performance. Reference to an index is made for comparison purposes only
High dividend yield rolling relative performance
(World ex-US benchmark, High Yield versus market cap weighted index)
High dividends outperformance
High dividends underperformance
October 2013
Page 10
-20
-10
0
10
20
30
40
50
Dec-77 Dec-80 Dec-83 Dec-86 Dec-89 Dec-92 Dec-95 Dec-98 Dec-01 Dec-04 Dec-07 Dec-10
Annual
Three year (annualised rate)
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Picking the highest estimated dividends may be risky
Source: Société GénéralePast performance does not guarantee or predict future performance. Reference to an index is made for comparison purposes only
Beware of expectationsForecasts and realised dividend yields since 1995
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
< 4% 4%-5% 5%-6% 6%-7% 7%-8% 8%-9% 9%-10% 10%-15% 15%-20%
Estimated dividend yield (%)
Realised dividend yield (%)
October 2013
Page 11
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Table of contents
October 2013
Page 12
The case for high dividend stocks
Investment philosophy and process
Investment team
Portfolio review
Fund key facts
The SYZ & CO Group
I
II
III
IV
V
VI
4
12
21
24
34
36
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High Dividend Why investing in high dividends through OYSTER?
A unique and differentiating process combining:
Robust quantitative screening to narrow the universe by focusing on good candidates
Qualitative analysis: strong business franchise and financial position, dividend commitment
Focus on quality stocks able to generate attractive total return through :
Current yield
Dividend growth
Price appreciation
Invest globally with broad diversification across sectors, regions and market caps
October 2013
Page 13
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High Dividend Investment philosophy
Dividends force companies to be disciplined with their capital allocation
2-6% is a sweet spot for dividend:
Ability to select companies with growing dividends
Aim to avoid dividend cutters and value traps
Important to set a sustainability criteria
Finding companies able to grow dividends improves long term returns
October 2013
Page 14
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
3. PORTFOLIO(~ 80-100 stocks)
OYSTER Global High DividendInvestment process - overview
Global universe (~ 35’000 stocks)
Investment universe (~ 600 stocks)
1. QUANTITATIVE SCREENING
Narrow down the investment universe and only keep companies that match our constraints
2. QUALITATIVE ANALYSIS
Selection of candidates
Data given as information only and is as a given date and may evolve over time
October 2013
Page 15
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High Dividend Investment process - quantitative screening
Liquidity
Minimum USD 1 Bn market capitalization
Appropriate trading volume
Dividend
Focus on 2-6% range dividend yield
Sustainability criteria
Profitability
Minimum return on equity
Overall fundamental quality
Assessed through a Piotroski score
October 2013
Page 16
Data given as information only and is as a given date and may evolve over time
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendInvestment process – qualitative analysis
Strong business franchise
Strategy and growth potential to avoid dividend trap
Competition and barriers to entry
Quality of management
Applied to the screened universe of around 600 stocks
Fundamental analysis by teams in Geneva and London
Solid financial position
Balance sheet and leverage
Credit profile
Valuation
Margin & return on capital (ROC)
FCF generation and visibility
Focus on total return
Dividend commitment
Dividend policy
Growth potential
Financing source of the dividend
Other forms of shareholder return
October 2013
Page 17
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High Dividend Investment process - portfolio construction1
Country & sector allocation derived from screening results and stock selection
Monitoring of economic environment to adapt strategy to changing conditions
Typically :
Number of holdings: 80-100 with top holdings: 2-4%
Expected turnover: 50%
Tracking error: max 8% vs. MSCI ACWI Net USD2
Foreign exchange risk is not hedged
Internal guidelines:
Regional weighting: max. 150% of MSCI ACWI Net USD
Dividend yield: above dividend yield of MSCI ACWI Net USD
Only 5% of portfolio allowed in market capitalizations below USD 1 Bn
Min. 90% of portfolio in the 2-6% dividend yield range and within quantitative criteria
1 Data given as information only and is as a given date and may evolve over time2 Reference to an index is made for comparison purposes only. For regions representing less than 5% ability to over/underweight by 5%
October 2013
Page 18
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendSell discipline
Sell discipline and monitoring of holdings
A position is sold because:
October 2013
Page 19
1 2 3
More value found in other region/sector or specific company
Company excluded from the investable universe by the quantitative screening process and showing deteriorating fundamentals
Structural changes in a company’s investment case, with a special focus on dividend characteristics
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendRisk and reward profile1
October 2013
Page 20
1 2 3 4 5 6 7
Typically Lower Rewards Typically Higher Rewards
Lower Risk Higher Risk
This indicator is deemed to reflect the level of risk of the fund. It can vary from 1 to 7 depending on the weekly upward and downward fluctuations of the portfolio over the last 5 years. The level 1 on the scale does not mean that the portfolio is risk-free. However, this indicator is based on historic data and therefore does not guarantee the level of future risk of the fund. Neither is this risk level an investment objective for the fund and therefore it could vary over time. Level 7 on the scale represents the highest risk level. It equates to an average fluctuation variance of more than 25%,according to the calculation method described above.
Level 6 equates to an average fluctuation variance of between 15% and 25%, according to the calculation method described above.
This risk level is mainly explained as follows:
The fluctuation of stocks due to possible sudden and/or prolonged fall of the financial markets.
Investment in small and/or medium-sized enterprises which could result in volatility and a higher liquidity risk for the portfolio.
Investment in emerging markets, which are more uncertain than the markets in developed countries (political risk, currency restrictions, repatriation, etc.).
Investment in foreign currency, resulting in a foreign exchange risk.
This indicator does not take into account the following risks:
Liquidity risk: risk linked to the difficulty of selling a portfolio investment on the market, preventing it from being traded under optimum conditions.
Operational risk: risk of loss for the fund linked to human or technical error, inadequate internal procedures or control systems.
Specific risks linked to the possible use of derivatives (financial instruments whose valuation is based on the value of another asset).
For further information about risks associated to this fund, please see the full prospectus, available at the head office of the SICAV.
1Source: Key Investor Information Document dated 31.12.2012The indicator mentioned above concerns one specific share class of the sub-fund, for more details on another share class of the sub-fund, please refer to the last updated KIID
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Table of contents
October 2013
Page 21
The case for high dividend stocks
Investment philosophy and process
Investment team
Portfolio review
Fund key facts
The SYZ & CO Group
I
II
III
IV
V
VI
4
12
21
24
34
36
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendThe portfolio managers
Roberto MagnatantiniLead portfolio manager, CFA, CMT
Armand Suchet d’AlbuferaPortfolio manager
Yves GallatiPortfolio manager
He joined SYZ & CO Group in 2008 and is the portfolio manager of OYSTER World Opportunities.
Roberto previously worked six years at Lombard Odier managing equities portfolio and from 2005 for four years at HSBC Private Bank managing the HSBC World Equities Opportunities Fund.
Roberto holds a Bachelor’s degree in Economics from the SES Geneva and he is a CFA Charterholder and has received the CMT certification.
He joined the SYZ & CO Group in 2007 as a European equity analyst based in London.
He started his career at Rothschild & Cie in the M&A department where he worked for six years. In 2006, he moved to London joining the European Leveraged Finance team at CIBC.
Armand graduated at CESEM in Reims and holds a Master’s degree in Financial Engineering from the EM business school in Lyon.
He joined the SYZ & COGroup in 2010 as an equity analyst within the research team based in Geneva.
Before joining Syz AM, Yves worked six years at HSBC Private Bank as a Telecom - Media - Technology equity analyst and portfolio / fund administrator. He started his career at Lombard Odier in 1999.
Yves holds a Bachelor’s degree in Quantitative Economics and a Master’s degree in Econometrics from the University of Geneva.
October 2013
Page 22
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
SYZ Group Multi-local Research and fund management capabilities
October 2013
Page 23
All asset class expertise Fixed income expertise Equities & fixed income expertise
Roberto Magnatantini,CFA, CMT Eric Bendahan, CFA Giacomo Picchetto Daniel Hannemann, CFA Piergiacomo Braganti
Fund Manager Global Equities Fund Manager European Equities Co-portfolio Manager European Equities Fund Manager and Head of Fixed Income
Head of equity and investments
Yves Gallati William Sharp Stefano Girola Martin Oetiker, CIIA Angelo Drusiani
Senior Financial Analyst Global Equities Fund Manager European Equities Co-portfolio manager European Equities Fund Manager Fixed Income Responsible for short-term management
Jérôme Schupp, CFA Armand Suchet d'Albufera Gionata Crivelli Luzius Kuster Andrea Garbelotto
Fund Manager European Equities Financial Analyst Fund Manager Fixed Income Fund Advisor Corporate Bonds
Fabrizio Quirighetti Pierre-Marie Gérez Osvaldo Vitrone
Senior Financial Analyst Financial Analyst
Adrien Pichoud Olivier Parein, CFA
Economist and Fund Manager Corporate Bonds and Currencies
Senior Financial Analyst
Maurice Harari Luca Lanfranchi
Junior Financial Analyst Financial Analyst
Joël Le Saux Thomas Mesmin
Fund Manager Japanese Equities Financial Analyst
Yasmina Barin
Senior Financial Analyst
Michele Pedroni
Junior Financial Analyst
Julien Raymond
Junior Financial Analyst
Equities expertise
Paolo Luban, Managing Partner & Chief Investment Officer Ernesto MarelliBanca Albertini SYZ & C. SpAPatrick Bédat, Chief Executive Officer
Geneva London Lugano Zurich Milan
Head of traditional Investments & Fund Manager Absolute Return
Chief Economist and Fund ManagerGlobal Macro, Fixed Income and Absolute Return Strategies
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Table of contents
October 2013
Page 24
The case for high dividend stocks
Investment philosophy and process
Investment team
Portfolio review
Fund key facts
The SYZ & CO Group
I
II
III
IV
V
VI
4
12
21
24
34
36
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High Dividend I USDPerformance at 31.08.2013
October 2013
Page 25
Source: Lipper
Past performance does not guarantee or predict future performance.
1Reference to an index is made for comparison purposes only. The index is not
mentioned in the investment policy of the sub-fund
(*) Since 30.07.2013, track-record of the R USD share class (LU0821216842). Before
this date, track record recalculated from the I USD share class since inception and
adjusted on a daily basis from the difference of management fees between
these two share classes.
Since launch(17.10.2012)
YTD
OYSTER Global High Dividend I USD 8.0% 7.7%
MSCI AC World NR USD 9.7% 8.8%
Lipper Global Equity Global Income 7.3% 6.7%
95
100
105
110
115
120
Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13
OYSTER Global High Dividend I USD
MSCI AC World NR USD
Lipper Global Equity Global Income
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendPortfolio breakdown at 31.08.2013
October 2013
Page 26
Source:OYSTER Sicav
Index: MSCI AC World NR USD
Data given as information only and is as a given date and may evolve over timeReference to an index is made for comparison purposes only
Financials 22.6% 21.4% Merck & Co., Inc. Health Care 2.2% 0.5%
Consumer Discretionary 16.2% 11.8% Chevron Corporation Energy 2.0% 0.7%
Industrials 13.7% 10.7% Reed Elsevier NV Consumer Discretionary 1.8% 0.0%
Consumer Staples 9.1% 10.2% Total SA Energy 1.7% 0.4%
Information Technology 9.1% 11.9% Sun Life Financial Inc. Financials 1.7% 0.1%
Health Care 8.7% 10.2% MTN Group Limited Telecommunication Services 1.7% 0.1%
Utilities 7.3% 3.3% Cinemark Holdings, Inc. Consumer Discretionary 1.6% 0.0%
Energy 7.1% 10.1% AXA SA Financials 1.6% 0.1%
Telecommunication Services 3.4% 4.2% Kraft Foods Group, Inc. Consumer Staples 1.6% 0.1%
Materials 2.8% 6.2% CSX Corporation Industrials 1.6% 0.1%
Total 100% 100% Total 17.5% 2%
United States 43.3% 48.4% USD 53.1% 48.6% <1BLN 0.0% 0.0%
Japan 8.8% 7.9% EUR 16.8% 10.7% >1BLN,<5BLN 13.4% 4.8%
France 6.8% 3.4% JPY 8.4% 7.9% >5BLN,<30BLN 45.1% 36.8%
Canada 5.0% 3.8% CAD 4.8% 3.8% >30BLN 41.5% 58.4%
Germany 4.5% 3.2% GBP 3.6% 8.1%
United Kingdom 3.7% 7.4% ZAR 3.1% 0.8%
South Africa 3.2% 0.8% HKD 2.7% 3.2%
Switzerland 2.9% 3.4% SEK 1.7% 1.2%
Netherlands 2.8% 1.2% CHF 1.6% 3.3%
Other 19.0% 20.5% Other 4.2% 12.4%
Total 100% 100% Total 100% 100% Total 100% 100%
By market capitalization Fund Index
United States
By geography Fund Index By currency Fund Index
United States
Sector Fund Index
United States
United States
Netherlands
France
Canada
South Africa
United States
France
By sector Fund Index Top 10 Country
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendDividend breakdown by category - examples
Expected dividend yield for 2013: 3.6%
October 2013
Page 27
Source: SYZ Asset Management SA, data as of 31.07.2013Data given as information only and is as a given date and may evolve over time
Low & defensive US insurers, Japanese banks Stanley Black&Decker, Tyco
Low & growing CSX, NorthropGrumman Accenture, Taiwan Semiconductor Spectris, Time Warner, NagaCorp
High & defensive Kraft, Reed Elsevier Johnson & Johnson, Total Hoya, Seagate Pipelines in Canada
High & growing British American Tobacco, Mattel GE, Elementis Allianz, Axa, Sanlam MTN, SJM
19.2%
10.1%
47.7%
23.1%
Low & Defensive Low & Growing
High & defensive High & Growing
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Eurozone stocks and in particular the periphery look cheap in a historical context and relative to global peers with a valuation based on trough earnings
Relative trend P/E and P/B of Europe below the historical norms
Cycle-adjusted PE attractive vs. LT median and other geographies
Eurozone earnings are depressed, offering an easy base for a rebound
From last cycle peak in 07’, EPS are down 32%
In the meantime, US EPS are 13% above the last cycle peak
Attractive dividend yields vs. other regions and asset classes
OYSTER Global High DividendWhy overweight Europe?
MSCI Europe cycle-adjustedP/E relative to the US
Source: Datastream, MSCI
Eurozone vs US 12m Fwd EPS
October 2013
Page 28
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendStock example: Northrop Grumman – USA, Aero & Defense
Screening result
USD 16.8bn mkt cap, DY 3.2%, growing dividend
Payout 28%, ROE 19.9%, Piotroski 9/9
Description
Leading defense contractor with strong competitive positions in Aerospace Systems, Information Systems, Electronic Systems and Technical Services
Attractive industry with massive barriers to entry, recurring revenues and high profitability
Qualitative analysis
Excessive fears surrounding DoD budget and sequestration risk translate into attractive valuation
Strong dividend commitment complemented by disciplined share buy-backs
Robust balance sheet & high cash flow generation
ROCE 15.1%, FCFy 12.5%, EV/EBITDA 5.4x, P/E 11.1x 2013e
Source: Bloomberg
7.927.377.16
7.81
7.416.775.215.21
1.57 1.69 1.84 1.97 2.15 2.31 2.49 2.63
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2008 2009 2010 2011 2012 2013E 2014E 2015E
EPS DPS
Source: BloombergPast performance does not guarantee or predict future performance
October 2013
Page 29
20
30
40
50
60
70
80
90
100
110
2008 2009 2010 2011 2012 2013
Stock Price
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendStock example: MTN Group – South Africa, Telecom
October 2013
Page 30
Screening result
USD 37 bn mkt cap, DY 4.5 %, growing dividend
Payout 74 %, ROE 22.5 %, Piotroski 6/9
Description
MTN is a multinational communications group offering cellular network access and business solutions
Mobile licences across 21 countries in Africa and the Middle East
Nigeria should become MTN’s largest market this year, ahead of South Africa
Qualitative analysis
Market-leading positions, unique play on Africa, operational delivery and secular opportunity for mobile banking
Earnings and FCF should grow by 15% CAGR over the next three years leaving ample room to increase dividends
11.1x P/E 14' for an 11-14e EPS CAGR of 11.5%, 14e DY of 5.1% and a net cash position
Source: Bloomberg
1'613
1'430
1'274
1'1191'110
764781806
1'253
1'089
947824749
500
192181
0
200
400
600
800
1'000
1'200
1'400
1'600
2008 2009 2010 2011 2012 2013E 2014E 2015E
EPS DPS
4'000
6'000
8'000
10'000
12'000
14'000
16'000
18'000
20'000
22'000
2008 2009 2010 2011 2012 2013
Stock Price
Source: Bloomberg
Source: BloombergPast performance does not guarantee or predict future performance
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
0
50
100
150
200
250
300
2008 2009 2010 2011 2012 2013
Stock Price
OYSTER Global High DividendStock example: Elementis – UK, Chemicals
October 2013
Page 31
29.127.1
25.123.7
27.8
16.7
26.4
20.0
10.7
12.6
7.04.9
-
5
10
15
20
25
30
35
40
2010 2011 2012 2013E 2014E 2015E
EPS DPS
Source: Berenberg
Screening result
USD 1.8 bn mkt cap, DY 2,2 %, growing dividend
Payout 34 %, ROE 23 %, Piotroski 6/9
Description
Production of additives improving the flow characteristics and performance of liquids, improving product qualities
Specialty products (60% of sales; 59% EBIT)
Chromium (31% of sales; 38% EBIT)
Surfactants (9% du CA; 3% EBIT)
Qualitative analysis
Unique assets (75% market share in chromium in the USA, onlyone hectorite mine in the world)
Potential from recent acquisition in Brazil (Watercryl)
Dividend policy: at least 30% payout + 50% of the year-end cash position (upside on expectations)
15x P/E 14' for an 12-14e EPS CAGR of c.10%, 14e DY of 3.9% and a net cash position allowing additional distribution Source: Bloomberg
Past performance does not guarantee or predict future performance
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
0
10
20
30
40
2008 2009 2010 2011 2012 2013
Stock Price
OYSTER Global High DividendStock example: Cinemark – USA, Entertainment
October 2013
Page 32
Screening result
USD 3.4 bn mkt cap, DY 3.2%, growing dividend
Payout 57%, ROE 15.9%, Piotroski 7/9
Description
Highest attended worldwide theatrical exhibitor (461 theatres with 5207 screens in 14 countries)
Industry performance leader: best-in-class profitability (EBITDA margin of 24.2%) and superior growth profile
Qualitative analysis
Potential for digital 3D technology to drive higher average ticket prices and attendance
Superior growth opportunity in Latin America : 1/3 of group sales with 15% sales CAGR
Strong balance sheet & high cash flow generation
ROCE 10%, FCFy 8%, EV/EBITDA 9.6x, P/E 14.8x 2013e
Source: Bloomberg
2.42.09
1.781.59
1.331.29
0.790.67
0.870.860.850.840.84
0.750.72
0.72
0.0
0.5
1.0
1.5
2.0
2.5
2008 2009 2010 2011 2012 2013E 2014E 2015E0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
EPS DPS
Source: BloombergPast performance does not guarantee or predict future performance
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High DividendStock example: Mattel – United States, Toys
Screening result
USD 14.9 bn mkt cap, DY 3.4%, growing dividend
Payout 56%, ROE 27.1%, Piotroski 5/9
Description
World’s largest toy maker. Solid brand portfolio including Barbie, Hot Wheels, Matchbox, Fisher-Price
High barriers to entry, Mattel and Hasbro own more than a third of the total toy market
Qualitative analysis
Secular bull market for toy manufacturers driven by EM & improved US demographics
Positive earnings momentum due to innovation (Monster High craze, digital initiatives, American Girl success in the US)
Operating margin expansion: 400bp improvement expected over the coming 5 years
ROCE 20%, FCFy 9%, EV/EBITDA 10.2x, P/E 16.5x 2013e
Source: Bloomberg
3.1
2.82
2.522.47
2.18
1.81
1.37
1.05
1.561.551.44
1.24
0.920.830.750.75
0.2
0.6
1.0
1.4
1.8
2.2
2.6
3.0
3.4
2008 2009 2010 2011 2012 2013E 2014E 2015E
EPS DPS
October 2013
Page 33
Source: BloombergPast performance does not guarantee or predict future performance
0
10
20
30
40
50
2008 2009 2010 2011 2012 2013
Stock Price
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Table of contents
October 2013
Page 34
The case for high dividend stocks
Investment philosophy and process
Investment team
Portfolio review
Fund key facts
The SYZ & CO Group
I
II
III
IV
V
VI
4
12
21
24
34
36
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Global High Dividend Key facts
UCITS compliant, Luxembourg SICAVCustodian/Central Administrat Share class Hedged ISIN code Management fee
Auditors USD LU0821216339 1.50%
Management Company USD D LU0821216412 1.50%
Fund Manager R USD LU0821216842 0.90%
Index1 EUR yes (active) LU0821216685 1.50%
Liquidity R EUR yes (active) LU0821217147 0.90%
Trade date CHF yes (active) LU0821216768 1.50%
Cut-off time
Settlement date Institutional share class3Hedged ISIN code Management fee
Minimum initial subscription, I USD LU0933608183 0.75%
Institutional share class only I USD D LU0821217063 0.75%
Fund domicile
Registered in2 Further information
Subscription fee
Redemption fee
4. Not available for investors in Belgium.
RBC Investor Services Bank SA
PricewaterhouseCoopers (PwC)
Oyster Asset Management S.A.
Syz Asset Management SA & SYZ & CO Asset Management LLP
MSCI ACWI Net USD
1. Please note that the reference to an index is made for information purposes only. The index is not mentioned in the investment policy of the Sub-Fund.
2. Not all share classes may be registered locally, please contact [email protected] for further information.
3. For further details please refer to the prospectus.
Daily
5 000 000 USD
OYSTER Website, Bloomberg, Morningstar, Reuters, SIX Telekurs, Finesti, FundinfoNAV available throughMax 3%
Luxembourg
AT, BE, CH, DE, ES, FR, UK, IT, LU, NL
Max 5%, Max 3% for I USD & I USD D
www.oysterfunds.com4 - [email protected]
T+0
T 12:00 CET
T+4
October 2013
Page 35
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Table of contents
October 2013
Page 36
The case for high dividend stocks
Investment philosophy and process
Investment team
Portfolio review
Fund key facts
The SYZ & CO Group
I
II
III
IV
V
VI
4
12
21
24
34
36
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 37
SYZ & CO Group 3 business lines but one common objective
Private Banking Institutional Asset Management
OYSTERInvestment Funds
Swiss banking group founded in 1996 by Eric Syz, Alfredo Piacentini and Paolo Luban
Sole focus on asset management across three activities with a common objective of delivering superior performance
Not involved in project-financing, investment banking, commercial or mortgage lending
Supervised on a consolidated basis by the FINMA(Swiss Financial Market Supervisory Authority)
SYZ & CO Group
October 2013
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 38
Fast growing banking group - AuM of EUR 25.1 Bn1
Assets increased +18% in 2012
All three activities enjoyed double-digit growth
Solid Capital Base: Core Tier 1 ratio of 27.8%2
Independent: not linked to a financial institution
440 employees in 17 cities worldwide1
Sponsor of OYSTER Sicav
SYZ & CO Group Key facts and figures
1Data as of 30.06.20132Annual report available on www.syzgroup.com
Past performance does not guarantee or predict future performance.
October 2013
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 39
OYSTER SICAVKey facts
A Luxembourg SICAV, UCITS compliant
Sub-funds covering major asset classes as well as niche strategies
Compartments are registered in most European countries and Singapore1
The bulk of assets are held by investors external to the group
Distribution team aiming to deliver regular and proactive communication to clients
Mix of internally and externally managed funds
11 out 21 sub-funds ranked first quartile in 2012 including 8 funds in the first decile2
1Solely targeting institutional clients in compliance with applicable law2Source: Lipper, using Lipper Global universe where sub-funds are registered
Past performance does not guarantee or predict future performance.
October 2013
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.Page 40
OYSTER SICAVOur philosophy
Bottom-up approach
Style & Market Cap agnostic
Risk team independent from portfolio managers
Innovation
Use of atypical managers in main asset classes
Identify tomorrow’s strategies
Anticipate future trends
Identify talents
Team dedicated to managers’ selection
Internal recruitment or sub-advisory relationship
Strategy’s exclusivity for European distribution
Active management
OYSTERphilosophy
October 2013
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
OYSTER Funds & Representatives
October 2013
Page 41
OYSTER Funds
OYSTER Sicav Oyster Asset Management SARoute d'Esch 69 Grand Rue 74L-1470 Luxembourg L-1660 [email protected] tél. +352 26 27 361www.oysterfunds.com
Representatives
Germany Spain Switzerland Zahlstelle Entidad comercializadora Soggetto incaricato dei pagamenti BHF-Bank Aktiengesellschaft Allfunds Bank S.A. State Street Bank S.p.A Bockenheimer Landstrasse 10 c/Estafeta no6 (La Moraleja) Via Col Moschin 16 Banque SYZ & CO S.A. D – 60323 Frankfurt Complejo Plaza de la Fuente - Edificio 3 20136 Milano Rue du Rhône 30 Tel +49 (0)69 718 22 75 E – 28109 Alcobendas - Madrid Tel +39 02 879 671 53 CH – 1204 Genève
Tel +34 (0)91 274 64 00 Tél + 41 (0)58 799 19 05
Austria France Zahlstelle Correspondant Centralisateur Soggetto incaricato dei pagamenti Raiffeisen Bank International AG BNP Paribas Securities Services Société Générale SecuritiesAm Stadtpark 9 Rue du Débarcadère 9 Services SpA A – 1030 Wien F – 93500 Pantin Via Benigno Crespi 19/A-MAC 2 Tel. +43 (0)1 717 070 Tel. +33 (0) 1 57 43 12 58 I – 20159 Milano
Tel +39 02 917 846 61
Belgium Italy Agent financier – Financiële agent Soggetto incaricato dei pagamenti Soggetto incaricato dei pagamenti Caceis Belgium s.a./n.v. RBC Investor Services Bank S.A. Allfunds Bank S.A. Avenue du Port 320 Milan Branch Via Santa Margherita 7 Havenlaan 86C b Via Vittor Pisani, 26 I – 20121 Milano B – 1000 Bruxelles 20124 Milano Tel +39 02 896 283 01 Tel +32 (0)2 209 26 40 Tel +39 02 305 756 1
Représentant et service de paiement pour la Suisse
OYSTER is an open-ended investment fund under Luxembourg law that is not open to citizens or residents of the USA. For more details please refer to the complete disclaimer.
Disclaimer
This promotional document has been issued by the investment fund, OYSTER Sicav (hereinafter referred to as "OYSTER” or the “Fund”). It is not intended for distribution to or useby individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, issue oruse.
Users are solely responsible for verifying that they are legally authorised to consult the information herein.
Only the most recent version of the prospectus, by-laws and annual and half-yearly reports of the Fund (hereinafter referred to as the Fund’s “legal documentation”) should beconsidered as a basis for investment decisions. These documents are available on the website, www.oysterfunds.com, or from the OYSTER offices at 69, route d'Esch, L-1470Luxembourg. The information or data contained in the present document does not in any way constitute an Offer or a recommendation to buy or sell shares in the Fund’s units.Furthermore, any reference to a specific security in this document should not be construed as a recommendation or investment advice. They are intended solely to inform theinvestor as to past performance, and do not reflect the opinion of OYSTER or any related companies as to future returns. The information, opinions and assessments contained inthe present document shall apply at the time of publication and may be revoked or changed without prior notice. OYSTER has not taken any measures to adapt to each individualinvestor who remains responsible for his own independent decisions. Moreover, investors are advised to consult their legal, financial or tax advisors before taking any investmentdecisions. Tax treatment depends entirely on the financial situation of each investor and may be subject to change. It is recommended that investors obtain the appropriate expertadvice before taking any investment decisions. The value of the units referred to may fluctuate and investors may not recoup all or part of their original investment. Investorsshould consult the Fund prospectus for further details on the risks involved. Past performance is not indicative of future results. It is calculated in the unit currency and, whereinvestments are made in a different currency, may also be affected by fluctuations in exchange rates. The performance data given does not include commissions or any fees linkedto the subscription to and/or repurchase of shares. It is possible that companies linked to the Fund and their executives, directors or personnel hold or have held stakes or positionsin the securities listed in this document, or that they have traded or acted as market maker for these securities. Moreover, these entities or individuals may also have past orpresent ties with the executives of the companies issuing the abovementioned shares; furnish or have furnished financial or other services; or are or have been a director of thecompanies in question. The manager reserves the right not to disclose the name of certain positions that would normally rank amongst the top 10. This promotional document is inno way intended to replace the legal documentation of the Fund and/or any information that investors obtain from their financial advisors. Please note that reference to an index ismade for information purposes only. The index is not mentioned in the investment policy of the Sub-Fund. The performance of the Sub-Fund may differ from the performance of theindex. For further information on the index please refer to the website of its service provider.
OYSTER is a Luxembourg SICAV that is not open to citizens or residents of the USA. www.oysterfunds.com – [email protected]
MSCI
The MSCI indexes are the exclusive property of MSCI Inc. (“MSCI”). MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use forcertain purposes. The financial securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such financialsecurities. The Prospectus contains a more detailed description of the limited relationship MSCI has with any related financial securities. No purchaser, seller or holder of thisproduct, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this product without firstcontacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior writtenpermission of MSCI.
October 2013
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