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1
Tomasz Godziek
8 April 2020
For Professional Investors Only
JSS Sustainable Equity –Tech Disruptors
For questions please email: wholesale@jsafrasarasin.com or ic@jsafrasarasin.com
2
Executive Summary
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Key messages
Source: Bank J. Safra Sarasin Ltd. As of March 31, 2020
⮚ Very strong and consistent performance in the up and down markets driven by good
stock selection and robust portfolio construction
⮚ Continously focusing on companies characterized by unique technologies, high
barriers to entry and with scalable business models
⮚ We are seeing inflection points in many technology themes (e.g. cloud, 5G & optical
networking, programmatic advertising, modern cybersecurity, electric vehicles)
⮚ Broad based interest in the fund continues: fund AUMs at 190M USD. Very resilient
during the COVID-19 outbreak
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The Fund
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Investing in the major technological innovations
that are reshaping our world…
Source: Bank J. Safra Sarasin Ltd.
Innovations and exposed industries
Connectivity
Information Processing
High-Tech Products
Cloud
5G
Optical Networking
Artificial Intelligence
Big Data and Analytics
Cybersecurity
Robotics
Electric Vehicles &
Autonomous Driving
Virtual Reality
Communications Equipment,
Electronic Equipment,
Semiconductors, Software, Real
Estate
Software, Semiconductors,
Internet, MedTech
Semiconductors, Electronic
Equipment, Life Science Tools,
Machinery
Core Themes Key Technologies Main Industries
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… via a differentiating investment approach
* The investment portfolio consists of at least 30 holdings
Covering the entire disruption
value chain by investing in firms
spearheading technological
innovation (“Enablers”) and those
benefiting from its adoption
(“Beneficiaries”)
Hybrid allocation integrating
cutting-edge disruptive growth
stories with more stable businesses
Superior diversification by
investing across sectors and
industries, rather than only in the
Technology sector*
Three core themes to invest
across the disruption universe
rather than focusing on individual
trends or technologies
Ability to flexibly adjust
allocation among themes,
capitalizing on technological and
macroeconomic cycles
Low level of correlation between
holdings, thanks to a high degree
of diversification in terms of themes,
technologies, and value chains
High conviction portfolio capable
of identifying and magnifying
specific investment opportunities
Multi-layered integration of
specialized research insights
throughout the investment process
Focus on mid-cap growth
companies with identifiable “paths
to success”, following in-depth
valuation-driven and sustainability-
focused research
…more than just technology…
…more than just one theme…
…more than just the “big names”…
Cross-thematic Investment
Universe
Technology Enablers and
Beneficiaries
Specialized Research-driven
Investment Approach
1 2 3
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As of 31.03.2020
Investment Team
Tomasz Godziek
Lead Portfolio Manager
Information Technology & Quant
Pierin Menzli
Portfolio Manager
Head of Thematic Equities
Yohann Terry
Portfolio Manager
Communication & Internet
MSc in Global Financial Markets,
MSc in International Trade, MSc in
Business and Management
Research; Doctoral Research
Program Member at Henley
Business School
Experience as Index Engineer,
Quantitative Analyst and Equity
Analyst
Investment experience: 10 years
M.A. HSG, University of St.Gallen
Experience as Head of Research,
Co-Founder, Managing Director,
Equity and Sustainability Analyst
Investment experience: 17 years
MBA, ESSEC Business School
Experience as Financial Controller,
Sell-Side Financial and
Sustainability Analyst
Investment experience: 16 years
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Performance
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Performance against the Morningstar peer group
since the fund inception (P USD acc share class)
Clear outperformance in the positive market, while being relatively more
resilient during the corrections thanks to the diversified portfolio structure
Source: Morningstar Direct as of March 31, 2020
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Performance against the Morningstar peer group
YTD (P USD acc share class)In Q1 2020 our Cybersecurity, Online Gaming and Cloud related stocks performed best, while stocks
exposed to Cashless Payments, Industrial Automation and Electric Vehicles were the laggards
Source: Morningstar Direct as of March 31, 2020
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Performance vs. closest peers: 1Y (P USD acc)
Strong and consistent outperformance. Outperforming 9, underperforming 1 of the largest
by AuMs and closest peers
*JSS Tech Disruptors fund – black line, NAVs as of April 4, 2020
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Special Topic: COVID-19
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COVID19 update
Key observations and actions
Source: Bank J. Safra Sarasin Ltd.
■ KPIs to monitor (order of relevance):
⮚ Mortality rate and total number of cases
⮚ Governmental actions
⮚ Clustering/density in specific regions/countries
⮚ Treatment and vaccine development
■ Our base case: New Flu-like disease, continues spreading worldwide in the coming weeks,
resulting in disruptions and uncertainties. However, the current market share price correction largely
reflects that case.
■ Impact on Tech: broad based and two sided: supply and consumption. Yet, it will accelerate the
adoption of certain technologies
■ Our actions:
⮚ Developed KPIs, bull/bear/base scenarios
⮚ Reviewed the portfolio structure
⮚ Analyzed the liquidity profile of selected holdings and the portfolio
⮚ Defined COVID19 company exposure scorecard and executed on the selected trades
⮚ Rebalanced the portfolio once the excesses became too large
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COVID update – Short-term portfolio changes
Types of companies towards which we have tilted the portfolio in the initial phase
Source: Bank J. Safra Sarasin Ltd. As of March 8, 2020
Our preferred exposures and companies
Localized production vs. complex supply chain
Selling to large enterprises vs. SMEs
Many smaller vs. few larger deals
Business critical vs. discretionary spending
Recurring vs. short cyclical business models
Growth & Low Leverage vs. Value & High Leverage
Products benefitting from the “stay at home” trend
Exposure to cybersecurity, monitoring, alerting
Intel, Rohm
Salesforce, Microsoft
GoDaddy, Elastic
Data centers, Cybersecurity
Software & selected Internet holdings
Software, Internet
Ubisoft, Zscaler
Everbridge, Synopsys
Exposure Company examples
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Given the magnitude of the monetary and fiscal stimulus that central banks and governments have
injected into the economies, the rebound will be led by the value and cyclical stocks (e.g.
Semiconductors) in the first phase and growth and quality (e.g. Software) in the second phase
Therefore, we remained disciplined and rebalanced the portfolio structure when the relative weight of cyclical
& value versus quality & growth has dropped by 15%
The current situation will have long lasting implications and will change the future behaviours
of corporates and consumers.
The rising need for faster internet bandwidth, innovative cybersecurity solutions, decentralized
computing and more localized supply chains is set to rapidly increase in the coming years
COVID update – Mid/long-term view
Rebound game plan
Source: Bank J. Safra Sarasin Ltd. As of March 18, 2020
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Fund Style Positioning
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Style perspective – Portfolio style risk map
Diversified portfolio structure enables consistent outperformance in the different
phases of the macroeconomic environment
*bold – one of the top 10 position
Source: Bank J. Safra Sarasin Ltd. as March 8, 2020
Company examples:
Ciena
Disruptive Growth
20-50%
Internal Growth
20-50%
Cyclical Growth
20-50%
Quality
5-15%
Value
10-30%
Special Situation
0-10%
Company examples:
Elastic
Everbridge
The Trade Desk
Company examples:
Analog Devices
Kion
Tokyo Electron
Company examples:
Equinix
Company examples:
Ubisoft
Company examples:
Microsoft
Synopsys
Visa
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Appendix
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JSS Sustainable Equity – Tech Disruptors
Fund Details
As of July 2018.
Further details are included in the JSS Investmentfonds SICAV prospectus.
Name of fund JSS Sustainable Equity – Tech Disruptors
Fund domicile Luxembourg
Legal structure SICAV according to Luxembourg law / UCITS
Fund management company J. Safra Sarasin Fund Management (Luxembourg) S.A., Luxembourg
Portfolio management Bank J. Safra Sarasin Ltd, Basel
Custodian bank RBC Investor Services Bank S.A., Luxembourg
Share class P
Accounting currency USD and EUR
Currency share classes USD
Client segment Private clients (for Singapore qualified investors only)
Management fee p.a. P (1.60%)
Minimum subscription P (None)
Liquidity Daily subscription and redemption of fund shares
Authorisation for saleSwitzerland, Luxembourg, Liechtenstein, Germany, Austria, Netherlands, Gibraltar, Great Britain, Ireland,
France, Italy, Belgium, Spain, Sweden, Denmark, Singapore (qualified investors)
Share classes /
ISIN /
Securities-No.
P USD acc / LU1752456340 / 39891369
P USD dist / LU1752456423 / 39891455
P CHF acc / LU1842718188 / 42326331
P CHF dist / LU1842718261 / 42326332
P EUR acc / LU1752456696 / 39891456
P EUR dist / LU1752456852 / 39891457
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JSS Sustainable Equity – Tech Disruptors
Fund Details
As of April 2020.
Further details are included in the JSS Investmentfonds SICAV prospectus.
Name of fund jss sustainable equity - tech disruptors
Fund domicile Luxembourg
Legal structure SICAV according to Luxembourg law / UCITS
Investment company J. Safra Sarasin Fund Management (Luxembourg) S.A., Luxembourg
Portfolio management Bank J. Safra Sarasin Ltd, Basel
Depositary RBC Investor Services Bank S.A., Luxembourg
Share class I
Accounting currency USD
Currency share classes USD, EUR, CHF and USD (BRL)
Benchmark -
Client segment Institutional Clients
Management fee p.a. 0.80%
Minimum subscription I (USD / CHF 1 Mio.)
Liquidity Daily subscription and redemption of fund shares.
Authorisation for sale
Switzerland, Luxembourg, Liechtenstein, Germany, Austria, Netherlands, Gibraltar (not for CHF fund share
classes), Great Britain, Ireland, France, Italy, Belgium, Spain, Sweden, Denmark, Singapore (qualified
investors)
Share classes /
ISIN /
Securities-No.
I USD acc / LU1752458551 / 39891466
I USD dist / LU1752458635 / 39891467
I CHF acc / LU1842718691 / 42326335
I CHF dist / LU1842718774 / 42326336
P USD acc / LU1752456340 / 39891369P USD dist / LU1752456423 / 39891455P EUR acc / LU1752456696 / 39891456P EUR dist / LU1752456852 / 39891457
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Important Legal Information
Switzerland
SICAV I
This document constitutes marketing material. If it refers to a financial instrument for which a prospectus and/or a key investor/information document
exists, these are available free of charge from Bank J. Safra Sarasin Ltd, Elisabethenstrasse 62, P.O. Box, CH-4002 Basel, Switzerland.
This document has been prepared by Bank J. Safra Sarasin Ltd (“Bank”) for the sole use of the recipient only. The information and descriptions of
the investment product contained in this document are intended purely for information purposes and do not constitute financial, legal or tax advice
and/or any other recommendation, offer or solicitation to acquire or sell investment products, to engage in a transaction, or to conclude any type of
business, nor are they any substitute for, in each individual case, obtaining the necessary advice and information on risk from your professional
advisor to an extent which you consider appropriate and reasonable, in order to ensure that the transaction is appropriate and suitable to your
financial goals and circumstances.
This document is based on publicly available information and data (“the Information”) believed to be correct, accurate and complete. The Bank has
not verified and is unable to guarantee the accuracy and completeness of the Information contained herein. Possible errors or incompleteness of the
Information do not constitute legal grounds (contractual or tacit) for liability, either with regard to direct, indirect or consequential damages. There is
no obligation on the part of Bank or any other person to update the content of this document. The views and opinions contained in this document,
along with the quoted figures, data and forecasts, may be subject to change without notice.
The collective investment fund described in this document is a subs-fund of JSS Investmentfonds. JSS Investmentfonds is a UCITS organized as an
open-ended investment company (société d’investissement à capital variable – “SICAV”) regulated by the Commission de Surveillance du Secteur
Financier (“CSSF”). It has been authorized for marketing in Switzerland by the Swiss Financial Market Supervisory Authority FINMA.
The price and value as well as any income that might accrue of any financial instrument mentioned in this document may move upwards or
downwards.
Past performance is no indication of current or future performance. The performance shown does not take account of any commissions and costs
incurred on the issue and redemption of units. Such costs and commissions have a negative impact on the performance of the fund. Information
containing forecasts are intended for information purpose only and are neither projections nor guarantees for future results and could differ
significantly for various reasons from actual performance. Investments in foreign currencies are subject to exchange rate fluctuations. Exchange rate
risk will apply if the investor’s reference currency is not the same as the investment currency.
22
Important Legal Information
Switzerland
SICAV I
Investing in this fund entails risks which are outlined in the prospectus. The latest available prospectus as well as the Key Investor Information
Document “KIID” should be carefully read and an independent consultant should be consulted before considering any investment. The above
mentioned documents, the articles of incorporation as well as the annual and semi-annual reports are available free of charge from the paying agent
(Bank J. Safra Sarasin Ltd, Elisabethenstrasse 62, P.O. Box, CH-4002 Basel, Switzerland) or the Swiss representative (J. Safra Sarasin
Investmentfonds Ltd, Wallstrasse 9, CH-4002 Basel, Switzerland).
The Bank and/or an affiliate of the J. Safra Sarasin Group, its clients and/or officers may hold a position or engage in transactions in any of the
financial instruments mentioned.
The Bank does not accept any liability whatsoever for losses arising from the use of the Information (or parts thereof) contained in this document. In
particular, neither the Bank nor its shareholders and employees shall be liable for the views contained in this document.
This publication is intended only for investors in Switzerland. It may only be distributed in countries where its distribution is legally permitted. This
information is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) such offering is
prohibited. Shares/Units of this fund may not be offered, sold or delivered to persons domiciled in the USA, US nationals or US person as defined by
FATCA-rules. Consequently, services and/or products mentioned in this document may not be available in all countries. Interested parties should
contact the local J. Safra Sarasin Group-representative to be informed about the services and products available in their country of residence.
© Copyright Bank J. Safra Sarasin Ltd. All rights reserved.
Bank J. Safra Sarasin Ltd
Elisabethenstrasse 62
P.O. Box
CH-4002 Basel
T: +41 (0) 58 317 44 44
F: +41 (0) 58 317 44 00
www.jsafrasarasin.com
23
Bank J. Safra Sarasin Ltd
Elisabethenstrasse 62
P.O. Box
CH-4002 Basel
Switzerland
T: +41 (0)58 317 44 44
F: +41 (0)58 317 44 00
www.jsafrasarasin.ch
For further information please contact us
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