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FOR INVESTMENT PROFESSIONAL USE ONLY
DSM Global EquitiesPresentation updated till 30/06/2020, performance data gross of fees
FOR INVESTMENT PROFESSIONAL USE ONLY
Agenda1. About DSM Capital Partners2. DSM’s Investment Style & Process3. Performance & Characteristics4. About Candoris5. Important Information
FOR INVESTMENT PROFESSIONAL USE ONLY
Section One:
About DSM Capital Partners
FOR INVESTMENT PROFESSIONAL USE ONLY 4
About DSM Capital Partners, Ltd.A bottom-up, idea driven, growth stock firm
DSM: A growth firm with a value backbone
• 100% employee owned boutique founded in 2001, focusing exclusively on growth companies
• 25 employees currently managing over $8.7bn* in AUM long only, high-conviction growth strategies with 1 distinct philosophy
• DSM Global Growth has been rated 5 stars by Morningstar
• Clients include corporate pension plans, foundations and endowments, other institutions, and high net worth individuals.
• Transparency – ease of access and open communications with clients
• Firm’s headquarters is located in Palm Beach Gardens, FL.
Candoris & DSM
• Partnership dates to 2013
• Committed to growth in the Nordics and throughout Europe
• Provides capacity to grow in strategy, without jeopardizing performance
* As of 30/06/2020
FOR INVESTMENT PROFESSIONAL USE ONLY 5
YTD 1 Year 3 Years 5 Years
Returns as of: June 30, 2020
0%
25%
Median
75%
100%
DSM Global
Growth Equity
MSCIACWI
Growth-ND
MSCIACWI-ND
Universe: eVestment Global Large Cap Equity
Results displayed in USD using Spot Rate (SR).
Strategy Overview
A Collegial and Engaged Culture Aligned withOur Clients’ Interests
• Analyst/PMs compensated on firm performance and quality of work – “Buy”, “Sell” and “Avoid” recommendations equally important
• Team members have significant ownership of DSM portfolios
• Transparency – ease of access and open communications with clients
A Global Equity Strategy for Sustainable Growth ofCapital
• Long-term focus on quality growth companies with attractive valuations
• Concentrated, high-conviction portfolio
• A demonstrated record of both reward and risk terms
FOR INVESTMENT PROFESSIONAL USE ONLY 6
Organizational StructureDSM Capital Partners
Steve Memishian, CFAFounder,
Co-Managing Partner
Daniel StrickbergerFounder, CIO,
Co-Managing Partner
Research & Portfolio ManagementJustin Burk, CFAHannah Chang Pinaki Kar David McVey, CFA Takamune Fujikawa, CFASteve Tish, CFAEric Woodworth, CFAKenneth Yang, CFA Client Service & Operations
Patricia BonadioKristen D’AmbrosioVitas MartinenasHikaru Sato-Hua
Patricia MichellSandra MontoyaNina PetrushevNina Renna
TradingChris BertoniShayn Logan
Legal & ComplianceBlair Barton, JDRussell Katz, JD
Client Service & Business DevelopmentStephen Constantine James Brown
Meredith MeyerChief Operating Officer
FOR INVESTMENT PROFESSIONAL USE ONLY 7
DSM’s Investment TeamExperienced team dedicated to one single philosophy
DSM’s ten person investment team specializes in quality growth companies worldwide
• Proprietary research used to identify and model quality growth companies, complemented by a rigorous valuation discipline used for both buying and selling positions
• 250 expert calls per year; buy-in research
• Analyst/PM’s compensated on quality of work and firm performance
• “Buy”, “Sell”, and “Avoid” recommendations are equally important
• Investment team has significant ownership of DSM portfolios
The team’s focus on proprietary research, in conjunction with a disciplined approach to valuation, results in a concentrated, benchmark-agnostic portfolio of 35-45 names
Industry DSM
Daniel Strickberger 39yrs 19yrs
Chief Investment Officer
Justin Burk, CFA 22yrs 18yrs
Medical Technology, Enterprise Software, Computer Storage & Communications, Specialty Chemicals, Agriculture, Multi-Industry
Hannah Chiang 22yrs 5yr
Payment Processing, Chinese Online Advertising, Retail, Apparel, Consumer Discretionary
Pinaki Kar 12yrs 12yrs
Biotech/Pharma, Consumer Staples, Discount Stores, Medical Technology, Industrial Glass, Business Software, Semiconductors
David McVey, CFA 24yrs 19yrs
Internet Services, Payment Processing, Banking, Media/ Advertising, Energy Services, Investment Management
Takemune Fujikawa 25yrs 2yrs
Tobacco, Consumer Services, Industrial Distributors, Luxury Products
Steve Tish, CFA 28yrs 13yrs
Biotech, Pharmaceuticals, Restaurants, Gaming, Lodging, Travel
Eric Woodworth, CFA 19yrs 19yrs
Personal Computers, Railroads, Freight Forwarders, Aviation, Computer Services, Networking Software, Security Software
Kenneth Yang, CFA 21yrs 6yrs
Consumer Discretionary, Industrials, Investment Management, Business Services, Instrumentation
FOR INVESTMENT PROFESSIONAL USE ONLY
Section Two:
DSM’s Investment Style & Process
FOR INVESTMENT PROFESSIONAL USE ONLY 9
Investment PhilosophyUnwavering adherence to convictions and discipline
DSM believes that concentrated portfolios of carefully selected equity securities of quality companies – those that demonstrate predictable earnings growth and are attractively valued – hold potential for long-term outperformance of broad market indexes.
This philosophy drives DSM’s distinct investment process, built on three core principles:
• Identify quality growth companies and perform fundamental research on them
• Create and utilize proprietary earnings models
• Utilize valuation discipline
GROWTH QUALITY
VALUATION
DSM GLOBAL
GROWTH
FOR INVESTMENT PROFESSIONAL USE ONLY 10
Investment PhilosophyEssentials of our style
Intellectual Property; High Barriers to Entry
Strong Business Fundamentals
Predictable Revenue and Earnings Growth
Gaining Market Share
Growing End-Markets
Favorable Industry Dynamics
Consistent Management Execution
High ROA/ROE; Free Cash Flow
Solid Balance Sheets
Sustainable Revenue and Earnings Growth
Strong Business Models
Stable Pricing
Few Competitors
ESG Considerations
GROWTH QUALITY
VALUATION
DSM GLOBAL
GROWTH
Reasonable Valuation Reduces P/E Compression Risk
Manageable “Low Case” Return
Attractive “Most Likely” Return
FOR INVESTMENT PROFESSIONAL USE ONLY 11
Investment Process OverviewA consistent approach leading to repeatable outcomes
Idea Generation &Fundamental
AnalysisBuy
DecisionPortfolio
ConstructionMonitoring &
Selling
QUALITYValidation
GROWTHEarnings
Modelling
VALUATIONBelow
Intrinsic Value
POSITION SIZINGIncreases with conviction based
on fundamental execution
RETURN POTENTIAL
Risk Management & ESG
FOR INVESTMENT PROFESSIONAL USE ONLY 12
Investment Process OverviewESG is fully integrated into our investment process
ESG considerations are integrated into
stock selection, sizing, and selling
MSCI feeds & in-depth monitoring
Proprietary DSM ESG scoring
system
Identifying material ESG
issues
Proactive management interactions
Centralized ESG database with daily reporting
Portfolio decision making
Environment• Biodiversity & Land Use• Energy & Climate Change• Operational Waste• Supply Chain Management• Water StressCustomer• Anticompetitive Practices• Customer Relations• Marketing & Advertising• Privacy & Data Security• Product QualityHuman Rights & Community• Civil Liberties & Human Rights• Local Community ImpactLabor Rights & Supply Chain• Child Labor• Collective Bargaining• Workforce Diversity & Discrimination• Health & Safety• Supply Chain Labor StandardsGovernance• Bribery & Fraud• Controversial Investments• Governance StructuresOther
FOR INVESTMENT PROFESSIONAL USE ONLY 13
Fundamental AnalysisHarnessing the power of earnings to drive cash flow and fuel financial returns
QUALITY
Validation
GROWTH
Earnings
Modelling
VALUATION
Below
Intrinsic Value
BUY AND SELL DECISIONS
Identify companies with predictable revenue and earnings growth
Create detailed earnings models for candidate companies
Select equities selling below intrinsic value to reduce risk
• Strong business models• Few competitors • Stable pricing• Consistent management execution• Balance sheet strength• High ROA/ROE, free cash flow• ESG considerations• Intellectual property• Barriers to entry • Favorable industry dynamics• Growing end-markets• Gaining share
• Forecast 4 to 5 years• Revenue projections by product• Revenue/cost sensitivity analysis- Focus on major cost drivers- Project costs driven by competition• Scenario analysis- Most likely earnings case- Potential low earnings case
• Buying undervalued equities to reduce PE compression risk
• Lower entry level valuation reduces price risk
• Scenario analysis - Most likely returns- Low case returns
FOR INVESTMENT PROFESSIONAL USE ONLY 14
Scenario AnalysisDisciplined framework for projecting return potential for individual equities
HYPOTHETICAL RETURN POTENTIAL
Most Likely Case Low Case
Revs/EPS growth At forecast level Low end of potential
Target P/E outcome Achieved Not achieved
Y1 Price $20
Y1 EPS $1.00
Y1 P/E 20
Y2-4 EPS Growth 18% 14%
Y4 EPS $1.64 $1.48
Target P/E (Y3) 23 23
Y3 P/E 23 18
Y3 Price $37.79 $26.67
Y1-3 Annual Return 24% 10%
Setting the P/E Target▪ Industry factors▪ Stock-specific factors▪ Macro factors▪ Historic PE range
Elements of Expected Return▪ EPS growth▪ Dividend yield▪ Change in P/E ratio
FOR INVESTMENT PROFESSIONAL USE ONLY 15
Current outlook for portfolio holdingsConsistent application of investment discipline for repeatability of outcomes
This material is for informational purposes only. Characteristics and performance of individual client accounts may vary. It does not contain any recommendations to buy or sell or a solicitation of an offer to buy or sell any securities or adopt any investment strategy. Past performance is no guarantee of future results. There is no guarantee DSM will deliver on its investment philosophy and/or that investment decisions will be based only on the information presented. Earnings per share, price to earnings ratios and other valuation metrics/models do not guarantee investment success. DSM may not be successful in predicting EPS growth and/or P/E ratios and, as a result, investors may experience losses materially worse than “Low Case” presented above. Please see Important Legal Information at the end of this presentation for additional details.
Valuation and Buy Decision Most Likely Return and Sell Decision Low Return Analysis
Fwd. 4Q P/E to Dec'21
Most Likely Target P/E6
12/31/23Appreciation to
Target P/E
ML EPS Growth8 to
2024% Current Div. Yield
Annualized P/E
ExpansionExpected Ann
Return712/31/23
Low EPS Growth8 2021-
2024Low Target
P/E6 12/31/23
Expect Ann Low Return7
12/31/23ALIBABA GRP-ADR BABA 20 30 52 23 0.0 13 38 19 25 24ALPHABET INC-A GOOGL 19 22 16 18 0.0 4 23 13 17 8AMAZON.COM INC AMZN 50 38 -24 25 0.0 -8 16 24 28 2FACEBOOK INC-A FB 19 22 13 22 0.0 4 27 16 17 9JD.COM INC-ADR JD 28 32 13 25 0.0 4 29 18 22 7RECRUIT HOLDINGS 6098.JP 32 30 -5 17 0.8 -1 16 12 25 4TENCENT 700.HK 27 32 18 21 0.2 5 27 18 23 10
ADOBE INC ADBE 39 35 -10 18 0.0 -3 14 15 25 -1CAPGEMINI SE CAP.FP 15 18 19 18 1.3 5 25 19 14 15EPAM SYSTEMS INC EPAM 36 31 -14 23 0.0 -4 18 25 25 9INTUIT INC INTU 35 34 -3 18 0.7 -1 17 17 26 6MICROSOFT CORP MSFT 29 28 -3 14 1.0 -1 14 14 22 4
AUTOMATIC DATA ADP 22 27 23 13 2.4 6 22 10 22 11GLOBAL PAYMENTS GPN 23 24 4 18 0.4 1 20 17 20 10NICE LTD -SP ADR NICE 30 26 -13 10 0.0 -4 6 10 19 -4PAYPAL HOLDINGS PYPL 38 33 -14 18 0.0 -4 14 14 25 -1SAP SE SAP.GY 20 24 19 12 1.3 5 19 8 17 3VISA INC-CLASS A V 28 30 6 18 0.6 2 21 16 24 9
KWEICHOW MOUTA 600519.C1 34 27 -21 18 1.2 -6 12 15 18 -5WULIANGYE YIBI-A 000858.C2 24 25 3 20 1.3 1 22 18 17 5ASTRAZENECA PLC AZN.LN 21 23 10 17 2.6 3 22 15 17 9STRAUMANN HLDG-R STMN.SW 32 35 9 19 0.7 2 23 11 28 6
ADIDAS AG ADS.GY 21 24 13 15 0.0 4 19 14 19 8ANTA SPORTS PROD 2020.HK 22 24 8 17 0.9 2 20 16 19 10KERING KER.FP 20 23 16 13 1.6 4 19 9 14 -1NEW ORIENTAL-ADR EDU 29 35 22 25 0.0 6 32 18 25 11PARTNERS GROUP J PGHN.SW 26 24 -6 9 3.0 -2 10 8 16 -4
CASHDSM WTD Avg. 26x 28x 9% 19% 0.5% 2% 23% 16% 21x 8%
Used for Buy Decision
Used for Sell Decision
Indicates Earnings
Predictability
FOR INVESTMENT PROFESSIONAL USE ONLY 16
Investment Decisions and Construction DisciplinesRelentless focus on identifying and capturing opportunities in all regions and industries
BUY AND SELL DECISIONS
Team Analysis Construction
Transaction Dynamics Buy Decision Diversification
▪ CIO & lead analyst/PM initiate case▪ Lead analyst/PM present▪ Investment team discusses▪ “Devil’s Advocate” discussion▪ Non-binding private vote by
investment team
▪ Growth– Strong fundamentals – Revenue and earning growth
▪ Quality – Predictable revenue and earnings
growth ▪ Valuation
– Stock is undervalued based on next four quarters projected earnings
– Attractive “Most Likely” return– Manageable “Low Case” return
▪ Typically 5 to 7 sectors▪ Developed and emerging markets▪ Exposure to major world regions
Risk Management
▪ Evaluate common risks across holdings▪ Evaluate overlapping risks across
industries, sectors, geographies
Sell Decision General Weighting
▪ Price appreciation reduces future return potential
▪ “On-deck” stocks offer more attractive return potential
▪ Risk of business deterioration▪ Reduced revenue/earnings outlook
▪ Typically 25 - 50 positions▪ 1% to 2% weight to start▪ 3% to 5% average weight at cost▪ Up to 6% at cost for select investments
FOR INVESTMENT PROFESSIONAL USE ONLY 17
Partnering with DSMA compelling history of capital growth and attractive risk-reward outcomes
THE DSM DIFFERENCE
History of long-term focus and fundamental analysis applied across all strategies
Highly-skilled investment team with proven record of delivering attractive outcomes in both reward and risk terms
Culture of accountability and complete commitment to clients
Openness and transparency provided at all levels
Continuous client communication and service
FOR INVESTMENT PROFESSIONAL USE ONLY
Section Three:
Performance & Characteristics
FOR INVESTMENT PROFESSIONAL USE ONLY 19
DSM Global GrowthHistorical Performance
GIPS Compliant Gross Composite Performance - DSM Global Growth
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Performances in the table above is annualized
Data as of 30-06-2020 YtD 1 Year 3 Year 5 YearSince
Inception Global Equity (in USD)DSM Global Growth (Inception – Oct 10) 10,43% 20,46% 14,95% 14,26% 14,39%MSCI ACWI Net -6,25% 2,11% 6,14% 6,46% 7,91%MSCI ACWI Growth Net 5,48% 16,58% 13,18% 10,83% 10,72%
Outperformance MSCI ACWI Net +16,69% +18,35% +8,81% +7,81% +6,48%
Outperformance MSCI ACWI Growth Net +4,95% +3,88% +1,77% +3,43% +3,67%
FOR INVESTMENT PROFESSIONAL USE ONLY 20
Earnings and Revenue Scorecard – Global GrowthHistory of earnings results of holdings
Portfolio holdings have delivered a solid record of earnings growth relative to consensus estimates
Source: Bloomberg. ^Source: DSM. Quarterly calculations are weighted averages based on position sizes. *As of: 31/03/2020
PORTFOLIO EARNINGS RESULTS - PAST TWENTY-ONE QUARTERS
1Q20
4Q 19
3Q19
2Q19
1Q19
4Q18
3Q18
2Q18
1Q18
4Q17
3Q17
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
4Q15
3Q15
2Q15
1Q15
EPS % vs. Consensus* 15# 8 5 6 8 4 9 5 7 4 7 10 4 6 3 7 5 4 4 3 3
EPS % YoY Growth (Ex Options)^ 8 24 19 20 19 20 24 26 32 36 36 36 28 29 22 25 19 21 15 21 16
Revenue % YoY Growth^ 13 17 18 20 19 19 20 24 25 25 26 28 25 31 29 26 15 19 17 19 17
FWD 4Q P/E on Date of Mid-Q Letter^
21.9x
24.4x
23.2x
23.0x
22.8x
21.3x
20.7x
21.2x
21.8x
22.6x
22.8x
22.2x
20.2x
18.8x
18.4x
19.0x
17.7x
20.2x
19.2x
19.9x
19.7x
FOR INVESTMENT PROFESSIONAL USE ONLY 21
DSM Global Growth active trading performanceBuy and Hold vs Active Management
This table shows the performance of the actual DSM strategy and a virtual buy and hold portfolio. The buy and hold portfolio is based on the performance of weights and holdings per the 30th of June (no trading took place). You can clearly see that trimming, adding and switching names does add value.
Portfolio - Annual Returns
Oct-2010
2011 2012 2013 2014 2015 2016 2017 2018 2019YTD to
30/06/2020
Since Inception
(%, p,a)
Global Equity (in US$)
DSM Global Growth (Gross)
6,7% -1,9% 19,7% 35,6% 4,1% 9,5% -0,6% 47,4% -11,8% 34,4% 10,4% 14,4%
BUY AND HOLD STRATEGY (GROSS)
6,7% -4,1% 18,5% 36,2% 1,1% 6,2% -1,1% 41,5% -9,3% 35,7% 8,4% 13,1%
Difference (Manager Activity)
0,00% +2,20% +1,20% -0,60% +3,00% +3,30% +0,50% +5,90% -2,50% -1,30% +2,00% +1,30%
FOR INVESTMENT PROFESSIONAL USE ONLY 22
Top 10 Holdings Location %
Microsoft Corp. US 9.6%Alibaba Group Holding China 8.1%Adobe Inc. China 7.9%Tencent Holdings Ltd. US 6.9%Alphabet Inc. US 6.1%New Oriental Education China 5.6%JD.com Inc. US 5.2%Facebook Inc. US 5.1%PayPal Holdings Inc. China 4.9%Visa Inc. US 4.3%
Portfolio CharacteristicsA concentrated portfolio built on the basis of growth, quality and valuation fundamentals
22
Source: Bloomberg.*As of 30/06/2020
Characteristics DSM GG MSCI ACWI
Number of Holdings 27 2988Weighted Avg Market Cap $443B $247BMost Likely EPS Growth4 19% NALow case EPS Growth4 16% NACalendar 2021 P/E 26.0x 16.9xCalendar 2022 P/E 21.1x 14.6xPrice to Book Ratio 7.4 2.2Dividend Yield5 0.5% 2.3%Trailing 12 Month Turnover9 37% NALT Debt/Equity 34% 89%Active Share1 88% NA
9,4%
11,8%
8,1%
3,6%
13,4%
12,9%
9,4%
20,7%
4,6%
2,9%
3,2%
15,8%
29,4%
3,8%
0,0%
1,4%
5,1%
1,2%43,0%
0,0%
0,0%
0,0%
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
SECTOR ALLOCATION
MSCI ACWI
DSM GG
15,1%
0,0%
50,4%
0,0%
0,0%
32,6%
1,6%
18,6%
0,9%
59,0%
0,6%
1,0%
18,9%
1,1%
Western Europe
South & Central America
North America
Eastern Europe
Central Asia
Asia Pacific
Africa / Middle East
REGIONAL ALLOCATION
MSCI ACWI DSM GG
FOR INVESTMENT PROFESSIONAL USE ONLY 23
Growth of $100 - Since Inception
G $100 - 9.75 Years
400
375
350
325
300
275
250
225
200
175
150
125
100
75
DSM Global
Growth Equity
MSCIACWI
Growth-ND
MSCIACWI-ND
Results displayed in USD using Spot Rate (SR). ¹10/2010 - 06/2020
Historical PerformanceDSM Global Growth v. Benchmark
Growth of US$ 100 – Since inception
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
FOR INVESTMENT PROFESSIONAL USE ONLY 24
Predictable earnings growth prevails over time
Source: Bloomberg
Standard deviation of EPS Growth Rate
EPS
Gro
wth
Rate
0%
5%
10%
15%
20%
25%
30%
35%
40%
0% 10% 20% 30% 40% 50% 60% 70%
DSM Act EPS% YoY Gr
DSM Est EPS% YoY Gr
ACWI Est EPS% YoY Gr
ACWI Act EPS% YoY Gr
FOR INVESTMENT PROFESSIONAL USE ONLY 25
YTD 1 Year 3 Years 5 Years
Returns as of: June 30, 2020
0%
25%
Median
75%
100%
DSM Global
Growth Equity
MSCIACWI
Growth-ND
MSCIACWI-ND
Universe: eVestment Global Large Cap Equity
Results displayed in USD using Spot Rate (SR).
Returns various periodsDSM Global Growth v. Benchmark and Peers
Consistent Outperformance
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
FOR INVESTMENT PROFESSIONAL USE ONLY 26
Upside Market Capture Since Inception¹ Downside Market Capture Since Inception¹
Since Inception 9.75 Years 10/2010 - 6/2020
130
125
120
115
110
105
100
95
90
85
80
75
70
65
60
55
DSM Global
Growth Equity
MSCIACWI
Growth-ND
MSCIACWI-ND
Universe: eVestment Global Large Cap Equity
Results displayed in USD using Spot Rate (SR). ¹10/2010 - 06/2020
Upside/Downside CaptureDSM Global Growth v. Benchmark and Peers
Higher Upside Capture and lower Downside Capture leads to superior returns
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
FOR INVESTMENT PROFESSIONAL USE ONLY 27
Returns Since Inception 9.75 Years¹ Standard Deviation Since Inception 9.75 Years¹
Since Inception 9.75 Years 10/2010 - 6/2020
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
DSM Global
Growth Equity
MSCIACWI
Growth-ND
MSCIACWI-ND
Universe: eVestment Global Large Cap Equity
Results displayed in USD using Spot Rate (SR). ¹10/2010 - 06/2020
Returns and Standard DeviationDSM Global Growth v. Benchmark and Peers
DSM Global Growth outperforms the benchmark and (almost) all peers.
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
FOR INVESTMENT PROFESSIONAL USE ONLY 28
Fund Launch:March 2014
Structure:UCITS
AUM:US $99.3 million *as of 30/06/2020
Exchange:Luxembourg
Benchmark:MSCI ACWI
Liquidity:Daily Liquidity & Valuation
ISIN:
LU1016061043
Composite Data:
Active share 87.65
DSM Global Growth UCITS FundFund Information
Management Fee
<€10 million 84 basis points
>€10 million 70 basis points
Larger Investments To be discussed
Other ExpensesCapped at 15 basis points for Institutional Investors; In reality, about 11 basis points
Custodian:
Northern Trust
Central Admin:
Northern Trust
Transfer Agent:
Northern Trust
Source: eVestment as of 30/06/2020 since inceptionData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
There is also an US Large Cap Growth UCITS Fund available.Fund Launch : July 2016AuM : $44 millionISIN : LU1016061126
Alpha 5,92
Beta 1,05Std Dev 15,76UMC 126,72DMC 93,76Information Ratio 0,98Tracking Error 6,64Sharpe Ratio 0,87
FOR INVESTMENT PROFESSIONAL USE ONLY
Section Four:
About Candoris
FOR INVESTMENT PROFESSIONAL USE ONLY 30
About CandorisAccess to the world’s best investment strategies
Candoris is:
• A Dutch firm with 6 employees in 2020 and ambitions to broaden its marketing
• Honest and direct in communication
• Transparent about the managers we market and the reasons why
• Transparent on price, fund and separate account solutions
Can·dor“kandər-ˌ dôr”
noun: candour; candor
1. The quality of being open and honest in expression; frankness.
Synonyms: frankness, openness, honesty, candidness, truthfulness, sincerity, forthrightness, directness, plain-spokenness, bluntness, straightforwardness, outspokenness
FOR INVESTMENT PROFESSIONAL USE ONLY 31
Current Activities:
• Marketing of investment strategies• Support with combining managers and portfolio optimization• Relationship management and client servicing• Fund setup under Candoris UCITS and Candoris QIAIF• Investor Support with Manager Selection
Target investors are:
• Institutional investors• Private banks • Wholesale distribution companies
Creating access for investors:
• Offering fund solutions • On the ground representation
Entrepreneurial company pairing boutique investment strategies with a compelling story, strong, unique and repeatable investment process and proven track record with investors
About CandorisAccess to the world’s best investment strategies
FOR INVESTMENT PROFESSIONAL USE ONLY 32
Candoris organizational structure
ARC ***
Business development Austria
Full coverage of the Austrian Market
Privilege Management***
Business development Switzerland
Smaller institutions, smaller private banks and family offices
Ronald Sminia**
Candoris Linked EmployeeBusiness Development NetherlandsWholesale distributors, private banks,family offices
Roy Scheepe**
Candoris Linked Employee;Business Development Germany
*Candoris employee **Candoris linked employee ***External 3rd party marketing firm Direct marketing to investors
Martijn van Vliet*Director Business DevelopmentDenmark, Sweden, Finland
Rick van de Kamp*Director Strategies and FundsNetherlands Inst, Norway, Ireland
Rogier van de Kamp*Data intelligence/IT
Anne de Jong* Coordinator Business DevelopmentCoordinates all marketing activities and reporting
Kern Capital Advisors***
Business development Switzerland
Larger institutions, larger private banks and family offices
FOR INVESTMENT PROFESSIONAL USE ONLY 33
Candoris matches clients’ needs with unique strategies and solutions
For Investors:• Introduce and market investment strategies and styles that are unique and create alpha
• Facilitate European investment vehicles (funds) or mandates
• Manager selection, compare investment strategies with peers, provide insight on adding a strategy in portfolio context
• The organizations we introduce are boutiques, frequently employee-owned, and specialized
For Asset Managers:• Access to Northern European market at limited expense, Central Continental contact point
• Asset managers can focus on managing their assets while Candoris does the marketing
• Organize/fulfil regulatory requirements
• Organizing roadshows typically twice a year through Northern European market
• Establishing funds both UCITS and QIAIF
• ICAV, benefit from our existing Candoris ICAV structure; new sub-funds can be added
• Benefit from our agreements with all service providers, ie Manco, Custodian, Audit, Directorship
FOR INVESTMENT PROFESSIONAL USE ONLY 34
Selected Strategies & ManagersAccess to the world’s best investment strategies
Investment Manager Investment Strategy Style
DSM Capital Partners –Palm Beach Gardens, FL Global, US and EME Equities Equity Growth
Coho Partners -Philadelphia, PA ESG US Equities Equity Value-Core/Capital Preservation
Eleva Capital -Paris European Equities Equity Small & Mid Cap and Absolute
Return
Pacific Asset Management -Newport Beach, CA US Senior Loans Fixed Income Large Syndicated Liquid
Strategic Income Management (SiM) –Seattle, WA US High Yield Fixed Income All Cap/Opportunistic
VanEck –New York, NY
EMD Unconstrained, Emerging Markets Equities
Fixed Income HC, LC, Corporates Equity All Cap
Orchard Capital Management –Chicago, IL Select Small Cap Select Small Cap Equity Value
FOR INVESTMENT PROFESSIONAL USE ONLY 35
Equity Strategies & PerformanceAccess to the world’s best investment strategies
GIPS Compliant Gross Composite Performance
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Data as of 30-06-2020 YtD 1 Year 3 Year 5 Year 10 YearSince
Inception
Emerging Markets Equity Strategy (in USD)
VanEck Emerging Markets Equity Strategy (Inception - Jan 06) -6,90% -0,04% 4,67% 4,26% 6,96% 7,46%
MSCI EM IMI -10,09% -3,97% 1,35% 2,35% 3,11% 4,85%DSM Emerging Markets growth (Inception Jul 2017) -1,02% 2,19% 6,59%
MSCI EM -9,78% -3,39% 1,90% 2,86% 3,27% 1,90%
Global Equity (in USD)
DSM Global Growth (Inception - Oct 10) 10,43% 20,46% 14,95% 14,26% 14,39%
MSCI ACWI ND -6,25% 2,11% 6,14% 6,46% 9,16% 7,91%
European Equities (in EUR)
Eleva Small & Mid Cap (Inception - Dec18) *performance since inception not annualized -1,11% 10,31% 35,16%
STOXX Europe Small 200 Index (net return) -13,20% -3,90% 11,75%
US Large Cap Equity (In USD)
Coho Relative Value Equity (Inception - Oct 00) -5,62% 7,10% 8,15% 8,29% 13,17% 9,22%S&P 500 -3,08% 7,51% 10,73% 10,73% 13,99% 6,04%Russell 1000 Value -16,26% -8,84% 1,82% 4,64% 10,41% 5,99%
US Equity Growth (in USD)
DSM US Equity Growth (Inception - Jan 02) 10,88% 22,76% 18,69% 15,40% 17,92% 11,04%
Russell 1000 growth 9,81% 23,28% 18,99% 15,89% 17,23% 8,95%
US Small Cap Value Equity (in USD)
Orchard US Small Cap Value (inception - Jul 01) -20,39% -13,30% -5,37% 2,11% 10,39% 9,24%
Russell 2000 Value -23,50% -17,48% -4,35% 1,26% 7,82% 6,55%
FOR INVESTMENT PROFESSIONAL USE ONLY 36
Fixed Income Strategies & PerformanceAccess to the world’s best investment strategies
GIPS Compliant Gross Composite Performance
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Data as of 30-06-2020 YtD 1 Year 3 Year 5 Year 10 YearSince
Inception
EMD Unconstrained (in USD)
VanEck EMD Unconstrained (Inception - Aug 12) -3,63% -0,81% 2,81% 2,81% 2,49%
50% JPM EMBI & 50% JPM GBI-EM -4,80% -1,10% 2,43% 3,89% 3,89% 2,15%
US High Yield (in USD)
SiM US High Yield (Inception - Feb 11) -6,43% -3,07% 3,17% 4,75% 6,60%
BofA ML US High Yield Master II -4,78% -1,10% 2,94% 4,58% 6,48% 3,82%
Corporate (Bank) Loan Strategy (in USD)
PAM Corporate (Bank) Loan Strategy (Inception - Jan 07) -3,13% -0,20% 3,09% 3,96% 5,26% 5,17%
CS Leveraged Loan -4,76% -2,27% 2,13% 2,94% 4,34% 3,82%
FOR INVESTMENT PROFESSIONAL USE ONLY
Section Five:
Important Information
FOR INVESTMENT PROFESSIONAL USE ONLY 38
This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Candoris B.V.considers reliable; Candoris B.V. does not represent that such information is accurate or complete. Certain statements contained hereinmay constitute “projections,” “forecasts” and other “forward-looking statements” which do not reflect actual results and are based primarilyupon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events maydiffer materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein arevalid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buyany security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Candoris B.V. assumes noobligation to update any forward-looking information.
Past performance is no guarantee of future results.