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Northern Ireland Central Investment Fund for Charities Mike Connor June Jessop 27 February 2013.

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Presentation on theme: "Northern Ireland Central Investment Fund for Charities Mike Connor June Jessop 27 February 2013."— Presentation transcript:

1 Northern Ireland Central Investment Fund for Charities Mike Connor June Jessop 27 February 2013

2 2 Newton at a glance All other figures Newton as at 31 December 2012 Investment management is our only business £49.6bn Distinctive: Global thematic investment approach Access: Institutional level process Transparent: Clear and simple charging Flexible: Bespoke service aiming to deliver a positive experience to clients Distinctive: Global thematic investment approach Access: Institutional level process Transparent: Clear and simple charging Flexible: Bespoke service aiming to deliver a positive experience to clients

3 3 Idea generation Themes efficiently focus our research Themes are our interpretation of key forces that drive change Themes provide a stimulus for debate at the widest level Themes continually evolve prompting a stream of new ideas Themes are as much about identifying opportunities as managing risks

4 4 NICIF Investment objectives and benchmark Investment Objective The primary objective is to achieve an annual income return of 20% more than the benchmark yield and thereafter long term capital growth in real terms Investment Restrictions No tobacco Benchmark FTSE Govt All-Stocks (£) 25% % FTSE All-Share (£)50% % FTSE W World ex UK (£)20% % Cash 5% % Income To achieve an annual income return of 20% more than the benchmark yield Risk Profile Medium

5 5 NICIF Investment guidelines and portfolio structure Portfolio Value£27,880,560 Estimated Yield 3.8% Source: Newton, as at 31 January 2013

6 6 Source: Newton & Datastream Long term performance * 30 September 2004 Value as at 31 January 2013 (£) NICIF27,880,560 Estimated Income (%) (%) Annualised since inception* (%) Performance Benchmark FTSE All Share Index FTSE 350 High Yield Index FT World Index (ex UK) (£) FTA Government All Stocks Index

7 7 The impact of inflation Source: Newton

8 8 Where is the income? Interest rates likely to remain low No capital growth and low yield (by historic standards) Potential for capital and income growth Source: Bloomberg, 22 February 2013

9 9 Dividends provide consistency World equity returns (inflation adjusted), split between income and capital Source: Newton, Global Financial Data as at 30 June 2012 Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock and currency movements. When you sell your investment you may get back less than you originally invested

10 10 High yielding stocks are becoming more globally diversified Geographical split of the number of FTSE World index stocks yielding greater than 3% Current yields are not indicative of future yields Source: FACTSET, Datastream, January

11 11 Identify long term trends Demand from ageing populations Source: US government data, 2011

12 12 Diabetes – an escalating problem Source: Sanofi (1)G Danaei, Lancet 2011 (2)Adelphi Disease Specific Program (DSP) III and VII (sample of over 10,000 diabetic patient records) (3)Sanofi’s estimates based on multiple sources (4)The Global Use of Medicines: Outlook through 2015, IMS Institute for Healthcare Informatics, May 2011 Adults with diabetes worldwide (1)350m % patients not achieving glycemic control target values in the US and EU (2) >50% Patients remaining undiagnosed in BRIC countries (3)~ 2/3 Expected compound annual growth rate of global diabetes market between 2011 and 2015 (4) 4-7% Expected size of global diabetes market in 2015 (4)$43-48bn

13 13 Using technology in medicine Source: Sanofi

14 14 Sanofi share price Source: Bloomberg

15 15 Sanofi dividend history Net dividend (in euros) Source: Sanofi

16 16 Example of Fund holdings - pharmaceuticals AstraZeneca5.8% GlaxoSmithKline5.2% Johnson & Johnson3.2% Novartis3.6% Roche3.3% Sanofi3.6% Source: Newton, January 2013

17 17 Daily brands Source: Unilever

18 18 (Daily?!) Treats Source : Unilever

19 19 Unilever share price Source: Bloomberg

20 20 Unilever dividend history Source: Unilever Dividend has grown by 8% p.a., on average, since 1979

21 21 Important information Past performance is not a guide to future returns. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested. The value of overseas securities will be influenced by fluctuations in exchange rates. If part of the portfolio is invested in sub-investment grade bonds, which typically have a low credit rating and carry a high degree of default risk, then please be aware that this can affect the capital value of your investment. If the portfolio has exposure to hedge funds, gold, private equity and property via publicly quoted transferable securities, then there are additional risks associated with these sectors. The information contained within this document should not be construed as a recommendation to buy or sell a security. It should not be assumed that a security has been - or will be - profitable. There is no assurance that a security will remain in the portfolio. The opinions expressed in this presentation are those of Newton Investment Management and should not be construed as investment advice. In addition the information contained in this presentation should not be construed as a recommendation to buy or sell a security. Registered office: as above. Both firms are authorised and regulated by the FSA, are members of the IMA and are Bank of New York Mellon Companies SM Also at Newton Edinburgh Capital House 2 Festival Square Edinburgh EH3 9SU Newton Leeds 1 Whitehall Riverside Leeds West Yorkshire LS1 4BN Newton Investment Management Limited BNY Mellon Centre 160 Queen Victoria Street London EC4V 4LA Tel: Registered in England No BNY Mellon Fund Managers Limited BNY Mellon Centre 160 Queen Victoria Street London EC4V 4LA Tel: Registered in England No


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