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CONSISTENT CONSERVATIVE CONTRARIAN PSG T anzanite PSG T anzanite Foreign Equity Portfolio.

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Presentation on theme: "CONSISTENT CONSERVATIVE CONTRARIAN PSG T anzanite PSG T anzanite Foreign Equity Portfolio."— Presentation transcript:

1 CONSISTENT CONSERVATIVE CONTRARIAN PSG T anzanite PSG T anzanite Foreign Equity Portfolio

2 PSG T anzanite CONSISTENT CONSERVATIVE CONTRARIAN 2 PSG Tanzanite Foreign Equity Portfolio This product is for investors who do not wish to make their foreign investments via unit trusts or hedge funds, but rather invest directly in shares Portfolios are managed on a discretionary basis by the clients financial adviser. Advisers work closely with PSG Tanzanite in making portfolio allocations. PSG Online and ADM facilitate trading and administration Investors receive portfolio statements on a monthly basis We only allocate capital to those investments which offer true value and a rare combination of highly commendable attributes

3 PSG T anzanite CONSISTENT CONSERVATIVE CONTRARIAN 3 Stock selection is performed by the PSG Tanzanite Team JAN MOUTON B.Acc (Stellenbosch) Cum Laude Hons B.Acc (Stellenbosch) CA(SA) with articles at PricewaterhouseCoopers M.Phil Finance (Cambridge) PAUL BOSMAN B.Comm Institutional Investments (Stellenbosch) Hons B.Comm Financial Risk Management (Stellenbosch) CFA HENNO VERMAAK B.Comm Actuarial Science (Stellenbosch) Hons B.Comm Actuarial Science (Stellenbosch) Fellow of the Faculty of Actuaries (Edinburgh) CFA (Level 2)

4 PSG T anzanite CONSISTENT CONSERVATIVE CONTRARIAN 4 Investment Philosophy OUR FOCUS WHEN CREATING AN OFFSHORE PORTFOLIO Investing in exceptional companies when their price is low relative to their fundamental value Remaining invested for as long as the undervaluation persists KEY CHARACTERISTICS OF THE EXCEPTIONAL COMPANIES WE HAVE SELECTED Managed by individuals with proven track records Some form of sustainable competitive advantage Clear and understandable business model Positive free cash flow, preferably distributed to shareholders in the form of dividends Honest and transparent financial reporting

5 PSG T anzanite CONSISTENT CONSERVATIVE CONTRARIAN 5 An example of a company which possesses all the rare attributes we seek in an investment

6 PSG T anzanite CONSISTENT CONSERVATIVE CONTRARIAN 6 The business has grown through a combination of organic and acquisitive growth. Organic growth is the major contributor to growth at present. Positive Free Cash Flow and Dividends UTC has paid cash dividends on its common stock for 72 consecutive years dating back to 1936. It generates significant free cash flow. Honest and Transparent Financial Reporting PWC audits the financial statements and the annual report is very well documented. United Technologies Corp Current Current share price47.63 Debt as a percentage of equity41.3% Current Assets to Current Liabilities1.21 : 1 Market CapitalisationUSD 45.9 B Industry: Aerospace & Defence Currency: USD Exchange & Code: NYSE – UTX Introduction UTC is a global provider of high technology products and services to the building systems and aerospace industries. Its operations are classified into six principal segments: Otis, Carrier, UTC Fire & Security (collectively the commercial business) while Pratt & Whitney, Hamilton Sundstrand and Sikorsky are the aerospace businesses. Track Record Over the decade to 2007, its total return has outperformed the S&P 500 by a factor of 5 and was the best performing stock in the Dow Jones Index. Sustainable Competitive Advantage UTC operates in a number of sustainable industries. The demand for elevators, air-conditioning, fire & safety systems and air transport is set to grow steadily as emerging economies expand. The UTC companies are global leaders in each of its fields of operation. Aftermarket parts and services accounts to 40% of all revenue and this adds an annuity element to the business. Clear and Understandable Business Model UTC manufactures and installs its products globally and offers after sales parts and maintenance. The business is generally easy to understand – even if the technology is state of the art. Conclusion UTC is a member of both the Dow Jones Industrial and the S&P 500 indices. It is a globally diversified conglomerate, not overly exposed to any one geographical region or single industry. It is presently trading a very attractive levels and offers strong growth potential for the future. Current3y ave PE Ratio10.017.3 Dividend Yield2.7%1.6% Price to Book2.13.4 Price to Tangible NAVN/A Source: Yahoo! Finance Revenue Split ISIN: US9130171096 Rating: BUY Date first included: 10 October 2008

7 PSG T anzanite CONSISTENT CONSERVATIVE CONTRARIAN 7 Applicable Fees ANNUAL FEE (EXCL VAT) PSG Tanzanite research fee0.50% Adviser fee0.75% PSG Online swop capacity fee (not applicable if client uses own foreign allowance) 0.50% Mike Smith Tel: 021 799 8000 Cell: 082 600 5743 Email: mikes@psgis.co.za mikes@psgis.co.za Contact details

8 PSG T anzanite CONSISTENT CONSERVATIVE CONTRARIAN 8 Disclaimer PSG Tanzanite (Pty) Ltd (PSGT) is an approved juristic representative of Authorised Financial Service Provider, licence no. 29524. Any research content included in this report represents the independent research view of the research analyst. Research recipients are advised that PSGT and its affiliates may own or have an interest in researched securities from time to time as a function of their market making and/or portfolio construction activities. PSGT is unaware of any conflict or bias, material or otherwise, between itself and the researched securities at the time of publication of the research report. It is published in good faith with no representation or warranty, expressed or implied by us or any person as to its accuracy or completeness and it should not be relied on as such. PSGT shall have no liability for any loss or damage arising out of the use or reliance on the information provided including without limitation, any loss or profit or any other damage, direct or consequential. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. The report is provided by PSGT solely for the recipients information, and all rights in and to the report including copyright and other intellectual property rights are proprietary to PSGT. Consequently, the information contained in this report must not be reproduced, copied or redistributed in whole or in part. Offshore investment has complex tax implications for investors. PSGT does not give tax advice and recommends that investors contact their tax advisors for a full understanding of the tax implications. Images are courtesy of the Tanzanite Foundation.


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