1. Investment Seminar 17th May 2018

2. Housekeeping No emergencies planned for this evening! Tonight’s agenda
Sentinel Portfolio and Investment Committee update
Investing for growth – Artemis Investment Management LLP
Sir Christopher Meyer
Questions

3. Portfolio Update Volatility returns Triggers The Sentinel Portfolios
Time in the market not timing the market
Risk, reward…how we use it
Investment Committee update

4. The Fear Index

5. Why the fear?
Good news / bad news !

6. Portfolio returns – Nov 17

7. Portfolio Update – 1 Year

8. Portfolio Update – 2 Year

9. Time not timing £10,000 invested in the S&P500 since 1/1/97
Today’s value £43,933 (7.7% annual return)
Miss the best 10 days £21,925 (4% annual return)
Miss the best 60 days £3,050 (-5.7% annual return)

10. Risk & Reward A measure we use to test returns against risk
This ensures clients’ achieve the best return for the risk they are happy with
Standard Deviation from the mean against returns…..
Sounds complex but is very simple!

11. Risk & Reward – 2 Year

12. Risk & Reward - Response
Review blends
Review manager returns
Managers on review
Manager change

13. Risk & Reward – 1 Year

14. Investment Committee Managers under review Mandate changes
Likely outcome

16. Sentinel Growth Portfolio Investing for growth
Simon Edelsten Artemis Investment Management LLP
For investors in the Sentinel Growth Portfolio

17. Sentinel Growth: What we are looking for …
What we aim to achieve:
Keep up in bull markets
Build in capital protection ahead of bear markets
Persistent returns + low volatility = growth in real wealth
The portfolio:
Focus on growth gives the fund a thematic style
Typically high quality equity holdings
Additional diversified fixed income for managing risk and efficient portfolio management
Diversified by stock, theme, sector and region
Unconstrained, but macro aware. Very different from any index

18. Meeting our clients’ objectives – generating healthy real returns
Outperformance in rising markets: 53%†
Outperformance in falling markets: 74%†
6 months %
1 year %
3 years %
Since Artemis appt. % p.a.
Since Artemis appt.* %
5 years %
Since inception % p.a.
Artemis Global Select Fund (Fund Price)*
2.6
6.0
36.5 -
74.9
12.4
MSCI AC World Index*
0.2
2.4
33.8
12.5
58.7
68.1
11.1
Global Select quartile ranking* 1  -
Managing lower risk portfolio
Standard deviation 8.95
Tracking error 2.96
Index standard deviation 10.03
Active share 89.8%
Portfolio beta 0.85
Downside capture since inception 85.0%
Source: Artemis as at 31 March *Source: Lipper Limited as at 31 March 2018, Artemis Global Select I Acc, Inception Date 16 June †Source: Artemis as at 31 March 2018, defined as the number of months outperforming the index/number of positive market returns and the number of months outperforming the index/number of negative market returns.

19. Why long term investors own equities
Stocks have consistently earned more than bonds over the long term
Investors can seek inventive companies whose internal returns are well ahead of what one can personally achieve and enjoy the compounding of those returns
Volatility – the price paid for accessing these returns – can be mitigated by giving up some of the upside to spend on capital protection
Protecting capital in a bear market leaves you with plenty of exposure for the next bull market
Annual global rates of return ( , %)
Chart source: The Economist, 6 January 2018.

20. Investing in predictable growth
Ageing
Automation
CAGR of 65-79yr olds between
Singapore
6.6%
China
5.5%
Mexico
4.8%
Thailand
4.5%
Brazil
4.3%
India
4.2% US
3.8%
South Korea
3.4%
France
2.6% UK
1.2%
Italy
0.6%
Japan
Wages and operating costs adjusted for price and perf ($/hr)
2015 10 20 30 40
2018
Electric welder avg. wage/hour
2020
2025
2030
Robot welder cost/hour
Tourism
Growth in international tourist arrivals (m)
CAGR = 4.1%
Source: left: UN population data; top right: BBG perspectives 2015; bottom right: UNWTO Tourism Highlights, 2017 Edition.

21. Current investment themes
Stock examples
Automation
14.7% assets
1y +2.5%
Online Services
8.2% assets
1y +3.0%
Emerging Market Consumer
13.9% assets
1Y +1.4%
Tourism
13.6% assets
Stock examples
Retiree Spending Power
6.8% assets
1Y -0.2%
Healthcare Costs
13.6% assets
1Y +0.7%
Scientific Equipment
9.2% assets
1Y +1.5%
High Quality Assets
1Y -1.3%
Source: Artemis as at 31 March 2018.
Image source: brandsoftheworld.com

22. Investment process Think like a businessman Secular growth
Stock selection
Valuation
Portfolio balance
Portfolio
Focus on growth opportunities
Industry roadmaps
Proven business models
ValueModel
Equity diversification & Fixed income component
Real return mentality
Longer term thinking
Focused research
Disciplined process
Conviction and diversification
Industry risk
Stock risk
Portfolio risk

23. Important notice Sentinel Growth Fund
For Professional Investors and their advisers only.
Issued by Artemis Investment Management LLP which is authorised and regulated in the United Kingdom by the Financial Conduct Authority ( 25 The North Colonnade, Canary Wharf, London, E14 5HS.
This document is intended solely for professional investors and their advisers and should not be passed, either in whole or in part, to retail investors who would be unable to place any reliance on the information provided.
Third parties (including FTSE and Morningstar) whose data may be included in this document do not accept any liability for errors or omissions. For information, visit artemisfunds.com/third-party-data.
This document is issued for information purposes only and is not to be construed as an advertisement or a public offering of any investment. Nothing in this document constitutes investment, legal, tax or other advice. Any research or analysis contained in this document has been procured by Artemis for its own use and may be acted on in that connection. You must ensure you understand the risks associated with any investment you consider.
Past performance is no guarantee of future returns. The value of investments may fall as well as rise and is not guaranteed.

25. Sir Christopher Meyer

26. Questions

27. Have a safe journey home