Download AMG Substanzwerte Schweiz (AMG Value Stocks

AMG Substanzwerte Schweiz
(AMG Value Stocks Switzerland)
Report as of April 30, 2017
Review April
Key Figures
According to the Purchasing Managers’ Indices, the world economy is on
track. In France, the political course has once again been set right. With a
slightly flatter interest rate curve and little change in interest expectations,
the conditions for a further rise of the stock market barometers remain
good. Although few companies actually reported profit figures as most restricted themselves to turnover and order book numbers, the first quarter
results are generally good. It may be tempting to extrapolate the turnover
and order book figures and translate them into profit postings, but we believe that caution should prevail in this matter. On the one hand, the first
quarter 2017 had 2 to 3 more working days than the past year – which can
result in up to 3% additional turnover. On the other hand, the substantial
rise in a number of raw material prices has had a positive impact on turnover but not necessarily on margins. Other factors such as wages and
capital charges have risen and are also affecting margins. At present, investors consider rising turnover and order book figures as recommendations to buy and are disregarding the rest. The half-year figures will show
whether our assessment of the situation is correct. The strategy of the fund
has not changed. We are maintaining our portfolio and our hedging strategy.
Roche’s Q1 figures are entirely convincing and the 4% increase in sales to
CHF 12.9bn indicates that the company is on a good track. While pharmaceutical turnover went up 3%, the significantly smaller ‘Diagnostics’ segment expanded by 6%. On top of this, Roche has confirmed its 2017 targets. At 16x, the 2017 P/E does not fully reflect the company’s performance
and financial power (annual free cash flow of CHF 10bn). The dividend
translates into a current return of 3.2%. This figure is likely to rise consistently over the coming years. Despite the difficult year the grain segment
experienced in 2016, the Groupe Minoteries delivered a satisfactory result.
The company’s revenues declined by 1.4% to CHF 146.2mn. In contrast,
gross profit grew by more than 1% to CHF 46mn. The company is in control
of its costs. Although income from asset disposals did not materialise, EBIT
rose from CHF 6.4mn to CHF 7.2mn. The 2017 P/E is at 13.5x and the equity’s net book value at CHF 275 per share (P/B of 1.3x). The figures reported by Villars are as expected. Within the next 5 years, once all of the
properties have been constructed, renovated and rented out, their balance
sheet value should rise significantly – which makes this share very attractive. The Jungfraubahnen have suffered a further decline in ski sport activities in the new year. In contrast, the Jungfraujoch’s visitor numbers up to
mid-April were not only 25.9% higher than in the previous year but also
substantially higher than the 2015 record. The share is currently trading at a
2017 P/E of 15x, a P/B of 1.1x and a dividend yield of 2%. The Bossard
Group got off to a great start in 2017. Significant growth at Tesla resulted in
a 16.1% increase in turnover to CHF 197.9mn. Organic growth would have
been as high as 10.3%. As anticipated, the MCH Group presented excellent financial statements. Turnover went up 5.1% to CHF 440mn in 2016, a
year which had a favourable exhibition cycle. The company’s earnings
amounted to CHF 32.4mn, the reported equity capital comes to CHF 73 per
share. Looking into 2017, due to the exhibition cycle, the year will certainly
be a weaker. The 2017 P/E (cycle low) is approx. 16x and the P/B stands at
0.95x.
Net Asset Value:
Number of Shares Issued:
Total Net Asset Value:
Facts
Domicile of Fund:
Fund Management Company:
Custodian Bank:
Investment Manager:
Switzerland
LB(Swiss) Investment AG, Zürich
Bank J. Safra Sarasin Ltd., Basel
AMG Fondsverwaltung AG, Zug
Roger Fischer, Patrick Hofer
15.11.2004
Launch Date:
ISIN, Swiss Sec. No:
Distributions:
Subscription / Redemption:
Performance Fee:
High Water Mark plus Hurdle:
Management Fee:
TER (Total Expense Ratio) as of 31.12.2016:
Distributions
21.03.2007
26.03.2008
22.03.2010
15.03.2011
20.03.2012
12.03.2013
13.03.2014
18.03.2015
21.03.2016
24.03.2017
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
CHF 7.00
CHF 8.40
CHF 170.00
CHF 30.00
CHF 9.00
CHF 30.00
CHF 4.00
CHF 5.00
Dividend CHF
6.00
CH0019597530, 1959753
Dividend & Capital Gain distributing
Daily / no fees
8% over 2% Hurdle, with High Water Mark
CHF 1'966.08
1.00%
1.21% (without Performance Fee)
Capital Gain CHF 163.00
Capital Gain CHF 170.00
Capital Gain CHF 30.00
Capital Gain CHF 30.00
Capital Gain CHF 18.00
Capital Gain CHF 51.00
Capital Gain CHF 195.00
Capital Gain CHF 200.00
Capital Gain CHF 90.00
CHF 2'090.56
283'992
CHF 593.7 mn
Performance - since inception 15.11.2004 (Distributions included)
since
1 Mt
3 Mt
12 Mt 3 Years* 5 Years* inception*
1.5%
6.4%
17.5%
12.8% 15.4%
12.9%
Fund
*p.a.
2017
9.0%
Fund
2016
8.7%
2015
14.4%
2014
18.6%
2013
26.4%
since
inception
353.5%
AMG Substanzwerte Schweiz indexed
Yearly Performance (Right Scale)
350
75%
300
250
200
60%
26.4%
34.9%
19.8%
26.8%
15.3%
12.4%
150
6.0%
45%
30%
18.6%
14.4%
9.0% 15%
8.7%
100
0%
5.7%
-4.9%
50
0
2004
-15%
-21.1%
2006
2008
-30%
2010
2012
2014
2016
Please find the detailed performance overview under www.amg.ch
Risk Ratios (rolling over the last 3 Years)
Volatility (p.a.):
Sharpe Ratio (-0.06% Risk Free Rate):
Beta (vs. SPI Small & Mid Cap TR Index):
Breakdown by Sectors
Industry
Real Estate
Utilities
Health Care
Financials
Media
Service Industries
Others
Cash
19.7%
3.6%
8.6%
43.1%
9.6%
2.6%
12.3%
-7.9%
8.4%
Exposure
Long Position:
Hedge Position:
Net Position:
Absolut Position:
Cash:
7.12%
1.89
0.33
110.2%
18.6%
91.6%
128.8%
8.4%
Largest Positions
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Cosmo Pharma N
Vaudoise Assurance N
Actelion N
Messe Schweiz N
IVF Hartmann N
Swatch I
Galenica N
BKW N
bfw Liegenschaften N
Lifewatch N
Cham Paper N
Roche GS
ALSO N
Vetropack I
Holdigaz N
Disclaimer: While AMG Fondsverwaltung AG has made every effort to ensure that the information on this document is correct at the time of publication, AMG can make no representation or warranty
(including
liability
third
parties)
either
expressly
or by implication
as to the
accuracy, Sorgfalt
reliability
or completeness
the
said
future
performance
of an investment
cannot
be deduced
Rechtlicher Hinweis:
Die to
AMG
Analysen
und Anlagen
AG wendet
bei der Zusammenstellung
dieser Informationen
die grösstmögliche
an. Dennoch
besteht weder explizitof
noch
implizit
eininformation.
Anspruch oder eineThe
Garantie
bezüglich
Genauigkeit, Vollständigkeit
oder Richtigkeit. Die
AMG übernimmt
keinerlei from
previous market value, i.e. the value of an investment may fall as well as rise. Performance was calculated without commissions and fees for subscription or redemption. The portfolio management refrains
from comparing with any benchmark.
AMG Fondsverwaltung AG • www.amg.ch • +41 41 726 71 71