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RWC Europe Absolute Alpha Fund December 2010
2
Introduction to RWC Partners
• RWC Partners is an independent investment firm
• Focus is exclusively on high-alpha asset management to institutions, professional investors and intermediaries
• Business is built around highly-talented portfolio managers, an intense focus on performance and a strong risk
management culture
• Majority of equity in RWC Partners is owned by RWC personnel – the balance is owned by Schroders
• 7 investment teams
• UK Equity John Innes
• European Equity Ajay Gambhir
• US Equity Mike Corcell
• Global Convertible Bond Davide Basile
• Global Growth Equity Priya Kodeeswaran
• Equity Income and Value Nick Purves & Ian Lance
• Macro, Rate & Currency Peter Allwright & Stuart Frost
• 63 personnel of which nearly half are investment professionals
• Product focus: UCITS III & non-UCITS high alpha & absolute return funds
3
Introduction to RWC Europe Absolute Alpha
• Long / Short, pan-European equity strategy
• Strategy first launched in 2003 at JPMorgan Asset Management
• Launched strategy in offshore form at RWC Partners in October 2007
• Launched UCITS III Fund in July 2010
• Fund aims to make significant returns with a low correlation to the equity markets
• Historically has achieved over 13.9% annualised return through the life of the strategy with a volatility of 7.8%
• Over the same period MSCI Europe index has achieved 4.8% annualised returns with 15.5% volatility
• Key differentiators of the approach are:
• A unemotional approach to equity investing – avoiding:
• Market noise & crowded, thematic trades
• Emotional attachment to company stories and personalities
• A clear methodology for narrowing the universe to a small subset of opportunities
• Focuses research on money making opportunities
• Maximises the exposure to the team‟s competitive advantages
• The approach provides good diversification from traditional fundamental & thematic stock pickers
Please note that throughout the presentation data will be shown from RWC Samsara. The fund is a monthly dealing, Cayman Islands domiciled fund. The investment ideas will be virtually identical to
those that will be used in RWC Europe Absolute Alpha but investors should expect a tracking error between the two strategies resulting from different structures and terms
4
European Equities: portfolio management team
Ajay Gambhir – portfolio manager
• Joined RWC Partners as a Partner in May 2007 to launch Europe Long / Short hedge
fund named RWC Samsara
• 10 years JPMorgan Asset Management – Senior Portfolio Manager
• Recruited by Peter Harrison
• Lead portfolio manager for the highly successful “Dynamic” investment funds
• £4bn under management
• Top decile performance across the range of funds
• Lipper Award for Best Fund Manager 2007 *; “Investment Week” Best Fund Manager,
UK Equity Growth 2006
• Launched & Managed JPM Europe Dynamic Long / Short fund**
• Winner of Eurohedge award for Best European Hedge Fund 2006***
• 7 years at NM Rothschild's in corporate finance, and previously private equity
• Working within the Emerging Markets team
• Responsible for a variety of projects in Eastern Europe, South Africa & Asia Pacific with a
particular focus on the telecoms, media and utilities sectors
• Graduated from the University of Cambridge in 1990: MA (Hons) Electrical and
Information Sciences; CFA Charterholder
* Ajay managed the fund from launch in Sep 2003; as joint manager until Jan 2005, and as sole manager from Feb 2005 until Mar 2007
** In the sub $500m category
*** Award given for 2006 performance
5
European Equities: portfolio management team
• Ajay is responsible for portfolio management including risk positioning and risk management
• All analysts are generalists and Ajay is a key part of the analytical team
• Analysts typically have strong background in accountancy, balance sheet analysis, or economics
• Amos and Azlan sit within the broader RWC Operations team and have responsibilities on the support of the Europe Equity funds
Portfolio Management
Steve Robertson
Krishna Chokshi
Luke Vose
Analysis Execution & Analytics
Nick Daniel
Amos Dadzie
Azlan Ali
Ajay Gambhir
Note from time to time the individuals from operations dedicated to the strategy may be changed1 CASS Business School 1 year intern
Michael Kelley1
The Power of Compounding – performance since inception of strategy
6
Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – end October 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager.
Equity index used is MSCI Europe Index (TR).
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested
-15%
5%
25%
45%
65%
85%
105%
125%
145%
165%
Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10
Cum
ula
tive R
etu
rn
Performance of Strategy since inception
versus equity index and hedge index
Cumulative Gambhir long / short Strategy Cumulative MSCI Europe TR Index EUR (monthly) Cumulative CSFB Tremont L/S Equity EUR (monthly)
Note: area relates to the period when the portfolio manager was in between companies and was not managing a strategy
% of up-
months
% of down-
monthsTotal Return
Annualised
ReturnAnnualised Vol Sharpe Ratio Correlation
Strategy 71% 29% 138.4% 13.9% 7.8% 1.5 0.55
Equity Index 60% 40% 37.1% 4.8% 15.5% n/a n/a
Positive Skew with Limited Drawdowns
7
Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – end October 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager.
Equity index used is MSCI Europe Index (TR).
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested
02468
101214161820
-15%
-14%
-13%
-12%
-11%
-10%
-9%
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
Mo
nth
s
Monthly Return
Strategy - Distribution of Monthly Returns
02468
101214161820
-15%
-14%
-13%
-12%
-11%
-10%
-9%
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
Mo
nth
s
Monthly Return
Index - Distribution of Monthly Returns
02468
101214161820
-15%
-14%
-13%
-12%
-11%
-10%
-9%
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
Mo
nth
s
Monthly Return
Index - Distribution of Monthly Returns
02468
101214161820
-15%
-14%
-13%
-12%
-11%
-10%
-9%
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
Mo
nth
s
Monthly Return
Strategy - Distribution of Monthly Returns
8
Performance of RWC Europe Absolute Alpha Fund (Net of Fees)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2010RWC EAA - - - - - - -0.5%** 0.1% 2.4% 2.7% 1.1%* - 5.8%
MSCI Europe - - - - - - -0.7%** -1.2% 3.4% 2.5% 0.8%* - 4.8%
Source: RWC Partners / Bloomberg. Data shown is for the period 29 July 2010 – 25 November 2010, net of fees for class B EUR. Equity index used is MSCI Europe Index (TR).
*Data shown up-to 25 November 2010 ** July performance date relates only to the last day of July ***Annualised Volatility calculated using daily returns
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested
% of up-
months
% of down-
monthsTotal Return
Annualised
ReturnAnnualised Vol Sharpe Ratio Correlation
Strategy 80% 20% 5.8% 18.4% 6.99%*** 2.5 0.8
Equity Index 80% 20% 4.8% 15.0% 14.3%*** n/a n/a
-1%
0%
1%
2%
3%
4%
5%
6%
Jul 10 Aug 10 Sep 10 Oct 10 Nov 10
Cu
mu
lative
Re
turn
RWC Europe Absolute Alpha Fund
RWC Europe Absolute Alpha Fund
9
RWC Europe Absolute Alpha
What do we do?
• Focus purely on specific financial metrics that explain a company‟s dynamics
• Management & third parties are only used to explain observations in the financial metrics
• Disciplined use of market valuations to ensure asymmetric payoffs
• Liquid names ensures investment decisions remain objective
What don‟t we do?
• Have dominant single factor, thematic or single stock risk
• Become distracted by noise – third party views, opportunistic but non-core ideas
• Have an emotional attachment to an idea or a company
10
Investment Process – pragmatic, dispassionate and logical
Stock Analysis Priorities
• Business model assessment (e.g. Dupont, Porter)
• Sensitivities to change (e.g. price elasticity, operational leverage)
• Asset and earnings based valuation assessment (e.g. P/B, EV/S, P/E, Yield)
• Utilise stock valuation „ceilings‟ and „floors‟ to skew risk and reward
Exposure Analysis Priorities
• Risk positioning (e.g. options skew, implied volatility, surveys
of investor confidence)
• Other asset classes (e.g. bonds, commodities and
currencies)
• Economic Outlook (e.g. Purchasing Managers Index, lead
indicators, GDP revisions and yield curve analysis)
Clinical, objective, fundamental analysis coupled with understanding investor‟s
behavioural biases
11
Three types of LONG opportunity
1. Positive turning points: companies which have suffered
operational difficulties, where analysis implies fortunes
could improve yet valuations imply neglect or bias
2. Undervalued stocks where positive change in either
margins or sales is foreseen
3. Companies where the growth is under-recognised due
to investor inertia and scepticism
Two types of SHORT opportunity
1. Negative turning points: profitable companies where
either the rate of returns is vulnerable and/or
valuations imply over optimistic future rates of return
2. Companies whose franchise is being eroded but the
valuation still appears prima facie reasonable
Investment Process
• Long and short books managed independently to generate positive returns
• Research is focused purely on five types of opportunity
• “Noise” and emotional influences are reduced to a minimum
• This focus ensures maximum efficiency of analytical resource
• Changes in sales, margins and balance sheet metrics drive investment opportunities
• Valuation provides timing indicators & risk management for positions
12
Portfolio Construction & Risk Management
• Gross exposure reduced at times of performance stress
• Willing to be directional (including net short)
• Very limited or no exposure to illiquid stocks
• Typically able to liquidate 95% of portfolio within 5 days
Permitted / Maximum Range Typical Exposure
Long / short ratio Less than 2.75:1 1.5-1.75:1
Gross Range 50% to 250% 140% to 200%
Net Range -50% to +100% -20% to +60%
No of Long Positions n/a 50-90
No of Short Positions n/a 50-90
Long Max 10% (at market) Average 1.25%-1.75%
Short Max 5% (at market) Average 0.75%-1.25%
Illiquids Less than 10% in stocks less than $500m mkt cap Minimal
VaR(99% / 1 month)20% CSSF Maximum
10% Internal Maximum<12%
Counterparty Exposure 10% of NAV to any single counterparty n/a
Concentration limits Sum of position >5% cannot exceed 40% of NAV n/a
13
RWC Europe Absolute Alpha – Summary
• Long / Short, pan-European equity strategy
• Strategy first launched in 2003 at JPMorgan Asset Management
• Launched strategy in offshore form at RWC Partners in October 2007
• Fund aims to make significant returns with a low correlation to the equity markets
• Historically has achieved over 13% annualised return through the life of the strategy with a volatility of 8%
• Over the same period MSCI Europe index has achieved 4% annualised returns with 16% volatility
• Key differentiators of the approach are:
• A unemotional approach to equity investing – avoiding:
• Market noise & crowded, thematic trades
• Emotional attachment to company stories and personalities
• A clear methodology for narrowing the universe to a small subset of opportunities
• Focuses research on money making opportunities
• Maximises the exposure to the team‟s competitive advantages
• The approach provides good diversification from traditional fundamental & thematic stock pickers
14
Appendix
15
RWC Europe Absolute Alpha – Term Sheet
• Launch Date 29th July 2010
• Liquidity Daily subscriptions & redemptions / daily NAV
• Fees A Share Class 2% AMC / 20% performance fee
• Performance Fee HWM Paid quarterly. Share class level high water mark
• Performance Fee hurdle EURIBOR (or share class currency equivalent)
• Fund structure Luxembourg SICAV (UCITS III) - sub-fund of the “RWC Funds” SICAV
• Currency EUR base currency – GBP, USD hedged share classes
• UCITS III designation “Sophisticated Fund” – VaR approach to exposure
Regulatory limit of max 20% VaR monthly with a 99% confidence level
• Administrator Banque Privée Edmond de Rothschild Europe
• Instruments used Long positions – cash equities / CFDs
Short positions – CFDs
• Local Registrations Luxembourg, Germany, UK, Switzerland, Italy*
• Tax UK Reporting Status Application will be submitted
Daily reporting available for Germany Tax Transparency
*Applications will be submitted
16
Performance of RWC Samsara since launch
Source: RWC Partners. Data shown is for the period 16th September 2007 – end October 2010, net of fees.
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10
Cum
ula
tive R
etu
rn
Performance of RWC Samsara since inception
versus equity index and hedge index
Cumulative RWC Samsara EUR Cumulative MSCI Europe TR Index EUR (since Samsara launch) Cumulative CSFB Tremont L/S Equity EUR (since Samsara launch)
17
Performance of Strategy (Net of Fees)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2003JPM EDLS - - - - - - - - - 1.6% 0.5% -0.7% 1.4%
MSCI Europe - - - - - - - - - 6.9% 1.1% 2.9% 11.1%
2004JPM EDLS 5.3% 0.2% -2.3% -0.1% -0.2% 0.6% 0.8% 1.6% 3.9% -0.6% 1.7% 0.7% 12.1%
MSCI Europe 2.7% 2.9% -2.0% 1.8% -0.2% -1.7% -0.8% 1.8% 1.9% 1.2% 2.7% 1.9% 12.7%
2005JPM EDLS 4.5% 4.3% 0.5% 0.0% 3.1% 4.9% 1.6% 0.2% 2.7% -0.5% 3.5% 2.9% 31.4%
MSCI Europe 2.3% 3.1% -0.4% -1.7% 5.1% 3.5% 3.3% 0.3% 4.5% -2.5% 3.3% 3.5% 26.8%
2006JPM EDLS 5.8% 4.7% 5.1% 1.5% 0.1% 1.8% 1.6% 0.2% 2.5% 5.0% 0.4% 3.8% 37.4%
MSCI Europe 3.5% 1.9% 2.4% 1.1% -4.4% 0.8% 1.7% 2.9% 1.9% 3.5% -0.2% 3.8% 20.3%
2007JPM / RWC -0.1% 0.1% n/a n/a n/a n/a n/a n/a 0.4% 3.5% 0.1% 1.5% 5.5%
MSCI Europe 2.1% -2.0% n/a n/a n/a n/a n/a n/a 4.2% 2.9% -4.6% -1.4% 1.0%
2008RWC Samsara -1.6% -0.2% -1.1% 2.4% 0.4% -0.8% -1.7% -1.3% -5.6% -0.7% 0.8% 1.7% -7.7%
MSCI Europe -11.5% -0.9% -3.7% 6.5% 0.9% -9.9% -1.9% 1.8% -11.0% -12.8% -6.9% -3.9% -43.2%
2009RWC Samsara 1.7% 2.3% -0.9% 3.2% 0.4% -3.7% 0.9% 5.5% 2.3% -3.8% 1.0% -0.5% 8.2%
MSCI Europe -3.5% -9.3% 2.3% 14.4% 5.2% -1.0% 9.3% 5.1% 2.7% -2.1% 1.2% 6.2% 32.6%
2010RWC Samsara -1.0% 0.5% 2.7% -0.4% -2.9% -0.1% 4.8% 0.4% 2.4% 2.7% 1.1%* - 10.3%
MSCI Europe -2.9% -0.2% 7.5% -0.8% -4.6% -0.5% 5.0% -1.2% 3.4% 2.5% 0.8%* - 5.9%
Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – 25 November 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager. Equity index used is MSCI Europe Index (TR).
*Data shown up-to 25 November 2010
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested
% of up-
months
% of down-
monthsTotal Return
Annualised
ReturnAnnualised Vol Sharpe Ratio Correlation
Strategy 71% 29% 138.4% 13.9% 7.8% 1.5 0.55
Equity Index 60% 40% 37.1% 4.8% 15.5% n/a n/a
18
European Equities: portfolio management team
Steven Robertson
• Stock analyst with generalist responsibilities
• 2000-2007 – sell side analyst at Dresdner Kleinwort and Arden Stockbrokers
• 1997-2000 - UBS Warburg, ranked 1st in the Reuters rankings (1999 and 2000) for UK Software and Services
• BSc (Hons) Degree in Chemical Physics from Edinburgh University
• MSc (Hons) Degree from Cambridge University, and after his post-graduate studies he joined Coopers and Lybrand in Audit.
Krishna Chokshi
• Stock analyst with generalist responsibilities
• 2008-2009 – Societe Generale, analyst in the European financial sector
• 2004-2007 – PricewaterhouseCoopers
• Qualified as an accountant in the Banking and Capital Markets Assurance Division
• Responsible for leading parts of key client engagements such as the Money Markets business within Barclays Capital
• Graduated in 2004 from the London School of Economics with a First Class honours bachelor‟s degree in Accounting and Finance.
19
European Equities: portfolio management team
Luke Vose
• Stock analyst with generalist responsibilities, CFA
• 2005-2010 – PricewaterhouseCoopers, Manager in the Valuations group
• Leading on business and intangible asset valuation
• Primary focus on valuation in mergers and acquisitions, demergers and disposals
• Broad cross-sector experience: industrial, retail, business services, real estate, automotive
and pharmaceutical
• Graduated in 2004 from Lancaster University with a First Class honours bachelor‟s degree in
Business Administration
Nick Daniel
• Portfolio assistant with dealing, stock screening and analytical responsibilities
• 2004-2010 – Senior equities & derivatives dealer, JM Finn & Co
• Dealing global equities, fixed income and foreign exchange
• Provided quantitative screening support for the firm‟s global fund
• 2000-2004 – Equities and derivatives broker, Lewis Charles Securities
• Graduated in 1999 with an honours bachelor‟s degree in Economics from University of London,
Queen Mary & Westfield College
20
Risk Management
Portfolio Risk Management
• Non-thematic style avoids single factor exposure
• Portfolio risk focused at a stock level – over 50 positions on each side
• Portfolio analytics function gives output on a wide range of portfolio level risks and attribution
• Fund is highly liquid with position sizes matched to stock liquidity
Internal Risk Management & Oversight
• Separation of compliance, risk monitoring & portfolio management
• Independent review of all transactions on a daily basis.
• Dedicated risk management tools employed to monitor numerous risk factors and ad hoc analysis
• CEO monitors consistency of risk taking and style attributes and meets with portfolio manager regularly
Corporate Risk Management
• Revenue is diversified across investment teams, products and clients. Less than 50% of client assets are hedge funds.
• Business is managed to be profitable before performance fees are generated
• Independent compliance monitoring firm, IMS, complete full compliance review bi-annually
• Front end order management system (with trip wires and full audit trail), Latent Zero, being implemented
Independent Fund Monitoring
• RWC Asset Management LLP act as the fund‟s advisor
• BPERE (Rothschild) are independent administrator &
custodian
• Deutsche and UBS act as prime brokers
• AB Fund Services appointed for local Luxembourg and
UCITS oversight
• Counterparty exposure limited to 10% of NAV
• Daily production and reconciliation of NAVs
• Daily cash reconciliation
• Independent Board of Directors speak with portfolio manager
and CEO once a quarter
21
Unconstrained long only funds historically managed by Ajay Gambhir
• JPM UK Dynamic
• $1.2bn (February 2007)
• AAA rated by Forsyth-OBSR
• AA rated by Standard & Poor‟s
• S&P 5 stars
• Over 5 years up until 31.12.06 the fund returned 107.1% net of fees compared to 49.9% for the FTSE-All Share benchmark,
placing it in the top 10 funds out of 214 in its peer group
• JPM Europe Dynamic (ex UK)
• $362m (February 2007)
• AAA rated by Forsyth-OBSR
• AA rated by Standard & Poor‟s
• Since inception up until 31.12.06 the fund returned 94% compared to the FTSE W.Europe benchmark return of 64.3%,
placing it 2nd out of 89 funds in its peer group
• JPM Europe Dynamic
• $2.08bn (February 2007)
• AA rated by Standard & Poor‟s
• S&P 5 stars
• Over 5 years up until 31.12.06 the fund returned 79.3% compared to the FTSE W.Europe benchmark return of 35.1%,
placing it 10th out of 235 funds in its peer group
22
RWC Partners – company structure
Full biographies can be provided upon request.
Board of Directors
Chief Executive Of f icerPeter Harrison
Management Committee Investment Teams
Europe EquityAjay Gambhir
US EquityMike Corcell
UK EquityJohn Innes
Global Growth EquityPriya Kodeeswaran
Convertible BondsDavide Basile
Equity IncomeNick Purves & Ian Lance
Rate & CurrencyPeter Allwright & Stuart
Frost
FinanceChris Maude
Risk ManagementPeter Harrison
ComplianceJames Kaufmann
Business DevelopmentDan Mannix
OperationsLen Munden
RWC Partners – Investment Capabilities
Portfolio Manager Fund Name Structure Launch DateStrategy
AUMTarget
European Equity Ajay Gambhir
RWC Europe Absolute Alpha Fund UCITS III July 2010
$279.2mAbsolute returns with a high risk adjusted return
profile relative to equity marketsRWC Samsara Fund Non-UCITS September 2007
Equity Income & Value
Nick Purves
Ian Lance
John Teahan
RWC Enhanced Income Fund UCITS III October 2010 $45.9m A yield of 7% with quarterly distributions
RWC Income Opportunities Fund UCITS III September 2010 $1162.9mLong-term outperformance of the FTSE All-
Share
Global Growth Equity Priya Kodeeswaran RWC Advance Absolute Alpha Fund UCITS III February 2010 $10.6mAbsolute returns with a high risk adjusted return
profile relative to equity markets
UK Equity John Innes
RWC UK Focus Fund UCITS III December 2010 $253.0mLong-term outperformance of the FTSE All-
Share
RWC Pilgrim Fund Non-UCITS October 2000 $85.7mAbsolute returns with a high risk adjusted return
profile relative to equity markets
US Equity Mike Corcell
RWC US Absolute Alpha Fund UCITS III September 2009
$864.2mAbsolute returns with a high risk adjusted return
profile relative to equity marketsRWC Biltmore Fund Non-UCITS October 2009
Convertible Bonds Davide Basile RWC Global Convertibles Fund UCITS III December 2006 $914.0mStrong risk adjusted returns relative to the
equity and bond markets
Rate & Currency Peter Allwright
Stuart Frost
RWC Cautious Absolute Rate &
Currency FundUCITS III December 2006
$80.1m
Cash plus 3% net of fees
RWC Enhanced Absolute Rate &
Currency FundUCITS III Q1 2011 Cash plus 6% net of fees
RWC Macro Fund Non-UCITS January 2011 A return of 10-15% per annum
Firm AUM $3695.5m
Source for all data is RWC Partners Ltd.
Data reflects 26 November 2010 numbers.
23
24
RWC Partners – AUM breakdown
Breakdown by Product Type
Source for all data is RWC Partners Ltd.
Data reflects end of October 2010 numbers (please note these are approximations).
Breakdown of Client Type
Non UCITS Funds13%
UCITS III Sicav44%
Segregated Accounts43%
Multi-Manager21%
Hedge Fund Advisory4%
Sub-Advised40%
HNW Individuals1%
Private Bank / Private Client Manager
19%
Pension Funds / Institutions / Insurance
10%
Platform4%
Proprietary / Corporate0.5%
Family Of f ice0.5%
Client Type - end August 2010
25
RWC Partners – AUM breakdown
Source for all data is RWC Partners Ltd.
Data reflects end of October 2010 numbers (please note these are approximations).
AUM by Team AUM by Asset Class
Long only Equities, 41%
Long only Fixed Income, 27%
Absolute Return, 32%
UK Equity10%
European Equity6%
US Equity21%
Equity Income & Value34%
Convertible Bonds39%
ARC2%
Global Growth Equity1%
26
This document contains information relating to RWC Partners Limited and RWC Asset Management LLP (collectively, “RWC Partners”), each of which is authorised and regulated in the United Kingdom by
the Financial Services Authority (“FSA”), and services provided by them and may also contain information relating to certain products managed or advised by RWC Partners (“RWC Funds”).
RWC Partners may act as investment manager or adviser, or otherwise provide services, to more than one product pursuing a similar investment strategy or focus to the product detailed in this document.
RWC Partners seeks to minimise any conflicts of interest, and endeavours to act at all times in accordance with its legal and regulatory obligations as well as its own policies and codes of conduct.
The services provided by RWC Partners are available only for and this document is directed only at, persons that qualify as Professional Clients or Eligible Counterparties under rules of the FSA. It is not
intended for distribution to and should not be relied on by any person who would qualify as a Retail Client.
In addition, although certain sub-funds of RWC Funds SICAV are recognised schemes for the purposes of Section 264 of the Financial Services and Markets Act 2000 of the United Kingdom (“FSMA”), all
other RWC Funds are unregulated collective investment schemes for the purposes the FSMA, the promotion of which either in or from the United Kingdom is restricted by law. Accordingly, this document is
issued and approved by RWC Partners Limited for communication by RWC Partners only to, and is directed only at, persons reasonably believed by it to be of a kind to whom it may communicate financial
promotions relating to unregulated collective investment schemes by virtue of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as
amended (the “Order”), or the Conduct of Business Rules of the FSA. Suchpartnerships, unincorporated associations, trusts, etc. falling within Article 22 of the Order. Any unregulated collective investment
schemes described herein are available only to such persons, and persons of any other description may not rely on the information in this document.
Where this document is received outside the United Kingdom, it is the responsibility of every person reading this document to satisfy himself as to the full observance of the laws of any relevant country,
including obtaining any government or other consent which may be required or observing any other formality which needs to be observed in that country. Nothing in this document constitutes an offer or
solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Interests in RWC Funds are available only in
jurisdictions where their promotion and sale are permitted.
No person receiving this document may further distribute it, or copies of it, to any other person or publish any of its contents, in whole or in part, for any purpose.
This document is provided for informational purposes only. The information contained in it is subject to updating, completion, modification and amendment. RWC Partners does not accept any liability
(whether direct or indirect) arising from the reliance on or other use of the information contained in it. The information set out in this document is to the reasonable belief of RWC Partners, reliable and
accurate at the date hereof, but is subject to change without notice. In producing this document, RWC Partners may have relied on information obtained from third parties and no representation or guarantee
is made hereby with respect to the accuracy or completeness of such information. Performance figures and data analysis within this document are shown and calculated net of fees and expenses and
represent the reinvestment of dividends and income. Market index information shown within this document is included to show relative market performance for the periods indicated and not as standards of
comparison. Such broadly based indices are unmanaged and differ in numerous respects from the portfolio composition of RWC Funds.
This document does not constitute offer or solicitation to anyone in any jurisdiction of or to acquire interests in any RWC Fund. Investment in any RWC Fund should be considered high risk. Past performance
is not a reliable indicator of future results and may not be repeated. The value of investments in RWC Funds and the income from them may fall as well as rise and may be subject to sudden and substantial
falls. Changes in rates of exchange may cause the value of such investments to fluctuate. An investor may not be able to get back the amount invested and the loss on realisation may be very high and could
result in a substantial or complete loss of the investment. In addition, an investor who realises their investment in RWC Funds after a short period may not realise the amount originally invested as a result of
charges made on the issue and/or redemption of such investment. The value of such interests for the purposes of purchases may differ from their value for the purpose of redemptions. No representations or
warranties of any kind are intended or should be inferred with respect to the economic return from, or the tax consequences persons include: (i) persons outside the United Kingdom; (ii) persons having
professional experience of participating in unregulated collective investment schemes; and (iii) high net worth bodies corporate, of, an investment in RWC Funds. Current tax levels and reliefs may change.
Depending on individual circumstances, this may affect investment returns. There is no guarantee that the securities referred to in this document will be held by RWC Funds in the future. Nothing in this
document constitutes advice on the merits of buying or selling a particular investment. This document does not constitute investment, legal or tax advice.
This document expresses no views as to the suitability or appropriateness of the RWC Funds or any other investments described herein to the individual circumstances of any recipient. Potential investors in
the RWC Funds should refer to the latest relevant Full Prospectus, Simplified Prospectus and latest Annual and Interim Reports for more information.
A United Kingdom investor may not have the right (otherwise provided under the FSA Handbook of Rules and Guidance) to cancel any agreement constituted by acceptance by or on behalf of an RWC Fund
of an application for interests in an RWC Fund. In addition, most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in an RWC Fund. Shareholders in
an RWC Fund will not receive compensation under the Financial Services Compensation Scheme in the United Kingdom in the event that the fund is unable or likely to be unable to satisfy claims against it.
This document is issued by RWC Partners Limited, a company registered in England and Wales (No. 03517613) with its registered address at 60 Petty France, London SW1H 9EU.