Jonathan Davie Chairman - Hansa Investment Company Limited
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Jonathan Davie Chairman May 2021
William Salomon Director May 2021
Hansa Investment Company Limited
Investment in Ocean Wilsons Holdings & Wilson Sons
Corporate Structure Net Asset Value of Ocean Wilsons Holdings
Hansa Investment
Company Limited 100% Total OWHL look-through NAV as at 31st March 2021 -
£457.9m
26.45% of Fund and Direct
OWHL is Equity Holdings
held by Managed by
£232.8m, £225.1m,
HICL Hansa Capital Partners LLP 50.8% 49.2%
Ocean Wilsons
57.77% of
Holdings Limited Wilson Sons
is owned by
100% OWHL
HICL owns 26.45% of OWHL, which represents an NAV of £121.1m
Ocean Wilsons OWIL - Published NAV as at 31/12/20 (£m)
(Investments) Limited Wilson Sons 57.77% holding in Wilson Sons - Market Value as at 31/03/21 (£m)
Unlisted subsidiary holding a portfolio of
investments.
Advised by Hansa Capital Partners LLP
3
Brazilian Real vs US Dollar Significant devaluation of Brazilian currency against USD in both Nominal and Real terms USD/BRL Historical Exchange Rate Source: Bloomberg (27-Apr-21) May 2021
Brazilian Real vs US Dollar Significant devaluation of Brazilian currency against USD in both Nominal and Real terms May 2021
WSL Share Price WSL share price, in USD terms, is at a low WSL Historical Share Price in BRL vs USD Source: Bloomberg (27-Apr-21) May 2021
Hansa Investment Company Limited Port development at Salvador Well-equipped infrastructure with an 800-metre principal quay, allowing the simultaneous berthing of two super-post-Panamax ships. May 2021
Hansa Investment Company Limited Political & economic outlook for Brazil May 2021
Hansa Investment Company Limited
Exposure to Wilson Sons in terms of risk
Exposure to Wilson Sons
Value of HICL 26.45% holding in OWHL (£297.0m*) £78.5m
Less
26.45% of value of OWIL Investment Portfolio (£224.9m**) £59.5m
Equals
HICL’s indirect exposure to Wilson Sons £19.0m
*Market Cap as at 31st March 2021
**Latest published NAV 31st December 2020
9Alec Letchfield CIO, Hansa Capital Partners May 2021
Congress passes
Hansa Investment Company Limited $900bn covid-19
relief legislation
Rising covid-19 cases
in Europe amid slow
Events timeline vaccination rates
FDA authorises
their first covid-
19 vaccine FDA authorises
Vaccinations their third covid-19
Joe Biden secures surpass 10m first vaccine, with J&J
victory in the US doses in the US
1600 Markets expecting moderate election
growth, with some US-China
trade war fears
Global deaths
S&P500 closes to from covid-19
1500 record high edge towards 1m
China GDP grows
3.2% in Q2, beating
expectations
Pfizer-BioNTech US treasury
1400 vaccine becomes yield rises
Governments across first authorised for sharply
the world implement use in the UK
MSCI ACWI, GBP
lockdowns
China announces Biden comes into Covid-19
1300 Fed to provide up strong Q3 growth Pfizer and power with new vaccinations
Cases and deaths to $2tn in loans figures BioNTech release public policies in the US
outside China promising
European countries begin surpasses
accelerate, DMs vaccine trial data
to relax lockdown orders 100m
start selling off
and open their borders
1200 Strong Q3 growth
figures from the
Stay-at-home orders US and Europe
Largest single partially lifted in
week decline several US States
since GFC
1100
Trump signs $2tn
economic stimulus bill
1000 Fed announce new measure to support economy
Jan 2020 Mar 2020 May 2020 Jul 2020 Sep 2020 Nov 2020 Jan 2021 Mar 2021
2Hansa Investment Company Limited
Market Performance Chart (£)
3Hansa Investment Company Limited
NAV, Share Price and KPI Performance
15 months to
Financial Year 3 years to end 10 years to end
end March
2020/21 March 2021 (p.a.) March 2021 (p.a.)
2021
NAV Performance TR 34.8% 8.9% 5.8% 4.7%
NAV Performance ex. OWHL TR 33.7% 14.7% 8.8% 6.3%
Ordinary Share TR 54.2% 7.7% 1.8% 2.0%
‘A’ Ordinary Share TR 49.3% 7.5% 2.4% 2.2%
FTSE All-Stocks Gilts TR (5.5%) 0.4% 2.5% 4.8%
UK CPI* 0.5% 0.6% 1.3% 1.7%
MSCI All Country World Index NR GBP 38.9 16.8% 12.7% 10.8%
FTSE All Share TR GBP 26.7% (5.1%) 3.2% 6.0%
Bloomberg Barclays Global Treasury TR (Unhedged) 2.1% 3.5% 1.9% 1.6%
* UK CPI Figure for 31st March 2021 not yet released, figures shown are as at 28th February 2021
150%
15 YEAR TOTAL RETURN
140%
130%
120%
110%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
NAV Cum Income TR Ord Share TR A Ord Share TR
Source: Hansa Investment Company Limited internal, unaudited data: Bloomberg, FTSE
4Hansa Investment Company Limited
Gross time-weighted performance of the different silos 1 year to 31st March 2021
65.0% 63.6%
60.0%
55.0%
50.0% 48.8%
45.0% 41.9%
38.7% 38.9%
40.0% 37.1% 36.2%
35.0%
30.0%
26.7%
25.0%
20.0%
15.0%
10.0% 8.6%
5.0% 2.1%
0.5%
0.0%
-5.0% -1.8%
Core Regional Thematic Core & Global EquitiesOcean Wilsons Diversifying Cash/FX Total Portfolio MSCI ACWI Barclays FTSE All Share UK CPI
Funds Thematic Holdings Ltd Assets Exposure (GBP) Global TR
Combined Treasury TR
(Unhedged)
UK CPI Figure for 31st March 2021 not yet released, figures shown are as at 28th February 2021
5Hansa Investment Company Limited
Gross time-weighted performance of the different silos 01 Jan 2020 – 31 Mar 2021
50.0% 48.8%
40.0%
30.0%
23.3%
20.0% 18.0%
16.8%
13.9%
10.6%
10.0%
4.7%
3.5%
0.6%
0.0%
-3.5%
-5.1%
-10.0% -7.1%
Core Regional Thematic Core & Global Equities Ocean Wilsons Diversifying Cash/FX Total Portfolio MSCI ACWI Barclays Global FTSE All Share UK CPI
Funds Thematic Holdings Ltd Assets Exposure (GBP) Treasury TR TR
Combined (Unhedged)
UK CPI Figure for 31st March 2021 not yet released, figures shown are as at 28th February 2021
6Hansa Investment Company Limited
Gross time-weighted performance of the different silos three years to 31st March 2021
95.0% 90.4%
85.0%
75.0%
65.0%
55.0%
47.5%
45.0% 42.9%
39.5% 39.5%
35.0%
27.5%
25.0% 23.0%
15.0%
9.9%
5.8%
3.9%
5.0%
-5.0% -1.2%
-7.1%
-15.0%
Core Regional Thematic Core & Global Ocean Diversifying Cash/FX Total Portfolio MSCI ACWI Barclays FTSE All Share UK CPI
Funds Thematic Equities Wilsons Assets Exposure (GBP) Global TR
Combined Holdings Ltd Treasury TR
(Unhedged)
UK CPI Figure for 31st March 2021 not yet released, figures shown are as at 28th February 2021
7£20,000,000
£40,000,000
£60,000,000
£80,000,000
£-
£100,000,000
£120,000,000
Ocean Wilsons Holdings 22,863,108
OW
Vulcan Value Equity 6,412,804
Findlay Park American 5,640,995
Select Equity Offshore 5,465,298
Pershing Square 3,748,679
SISF Asian Total Return 3,721,237
Prince Street Inst 3,210,112
BlackRock Strat Hedge 2,685,035
Indus Japan JPY Unhedged 2,472,550
Adelphi Eur Select Equity 2,380,953
NTAsian Discovery 1,211,081
Core Regional Funds
BlackRock Frontiers 1,191,940
Goodhart: Hanjo 903,176
Egerton Long - Short 706,094
Vanguard Dev Eur ex UK 628,265
iShares MSCI EM 27,553
GAM Star Tech 11,392,379
Impax Envnmnt Mkts 1,821,466
BB Biotech 1,353,568
RA Capital Healthcare 791,733
Thematic
Worldwide Healthcare 517,436
SPDR MSCI World Fins 26,621
Nexon 1,772,796
Iridium 1,770,242
Hansa Investment Company Limited
Samsung 1,765,507
Interactive Brokers 1,622,376
Exor 1,606,566
Orion Engineered Carbons 1,600,923
Tripadvisor 1,352,766
Alphabet 1,171,783
Grupo Catalana 910,848
Subsea 7 741,406
Dollar General 635,361
Berkshire Hathaway 402,703
Global Equities
C&C 359,493
CK Hutchison 341,979
Marel 317,228
Contribution of underlying holdings for 1 year to 31st March 2021
Arch Capital Group 271,262
CVS Health 256,041
Hilton Food 83,826
CTT 24,121
Coats Group 59,670
ViaSat 66,496
Global Event Partners Ltd 2,696,424
Hudson Bay 877,174
Apollo Total Return Fund 292,475
Keynes Systematic 230,946
CZ Abs Alpha UCITS 170,719
MKP Opp Offshore 131,581
BioPharma Credit PLC 88,944
Diversifying
Selwood AM 45,545
GAM Core Macro 36,969
Schroder GAIA BlueTrend 26,270
Vanguard US Treasury 138,869
PE
DV4 Ltd 1,220,506
Holdings sold during period 24,241
Cash/FX 190,739
8
Total 99,124,316£10,000,000
£20,000,000
£30,000,000
£40,000,000
£50,000,000
£60,000,000
£-
Pershing Square 3,857,637
Findlay Park American 3,294,129
BlackRock Strat Hedge 3,252,620
Select Equity Offshore 2,664,247
SISF Asian Total Return 2,568,812
Vulcan Value Equity 2,511,800
Prince Street Inst 2,197,673
Indus Japan JPY Unhedged 910,848
Adelphi Eur Select Equity 837,355
NTAsian Discovery 414,621
Core Regional Funds
Egerton Long - Short 353,867
Vanguard Dev Eur ex UK 288,168
iShares MSCI EM 27,553
BlackRock Frontiers 42,994
Goodhart: Hanjo 621,456
GAM Star Tech 10,383,817
Impax Envnmnt Mkts 1,038,640
BB Biotech 969,663
RA Capital Healthcare 791,733
Thematic
Worldwide Healthcare 370,510
SPDR MSCI World Fins 96,246
Nexon 2,103,481
Iridium 1,786,699
Interactive Brokers 1,550,466
Samsung 1,476,944
Hansa Investment Company Limited
Alphabet 938,912
Grupo Catalana 910,848
Tripadvisor 750,886
Dollar General 731,042
Marel 317,228
Arch Capital Group 271,262
Exor 264,976
Orion Engineered Carbons 169,270
Global Equities
Hilton Food 41,826
CTT 24,121
Coats Group 59,670
Contribution of underlying holdings 01 Jan 2020 – 31 Mar 2021
ViaSat 66,496
Berkshire Hathaway 165,650
CVS Health 225,717
Subsea 7 376,160
CK Hutchison 588,353
C&C 1,391,688
Global Event Partners Ltd 1,668,208
Hudson Bay 980,249
MKP Opp Offshore 142,705
Keynes Systematic 116,266
Schroder GAIA BlueTrend 109,701
Apollo Total Return Fund 93,200
Vanguard US Treasury 80,478
Diversifying
CZ Abs Alpha UCITS 65,169
BioPharma Credit PLC 31,208
GAM Core Macro 3,630
Selwood AM 170,025
Ocean Wilsons Holdings 7,065,756
OWPE
DV4 Ltd 1,284,921
Holdings sold during period 4,825,606
Cash/FX 327,607
9
Total 34,811,517Hansa Investment Company Limited
Market outlook……a liquidity driven cycle
Growth rate of US GDP from trough of each recession
S&P 500 mapped against Fed balance sheet expansion
The current cycle has been more Liquidity however has been
muted versus past cycles abundant and driven up asset prices
dramatically
12Hansa Investment Company Limited
Market outlook……fiscal policy joining the party
Huge fiscal stimulus packages, Combined fiscal and monetary policy
especially in the US have led to a massive easing in
financial conditions
13Hansa Investment Company Limited
Market outlook……as a result growth and inflation expectations have picked up
sharply?
Consensus forecast for 2021 US GDP vs date of forecast US 5, 10 year inflation breakeven rates
Economic growth forecasts have ….as have inflation expectations
risen sharply
14Hansa Investment Company Limited
Market outlook……positioning/market
Forward US earnings yields vs real bond yields
In addition to stronger economies Vaccination programmes vary region
TINA remains in play by region but some countries such as
the US are making excellent progress
15Hansa Investment Company Limited
Current Positioning (as at 31st March 2021)
20% 19.8%
18%
16%
14%
12.0%
12% 10.9% 10.5%
10%
8% 6.8% 6.5%
6% 5.2% 5.4%
4.4% 4.2%
4% 3.0% 2.6% 2.5% 2.2%
2% 0.9% 1.3%
0.8% 0.4% 0.7%
0%
16IMPORTANT NOTICE This presentation pack is issued by Hansa Investment Company Limited. Hansa Investment Company Limited is not authorised or regulated by the Financial Conduct Authority, or by the Bermuda Monetary Authority as an authorised fund under the Investment Funds Act 2006 of Bermuda. The Directors of Hansa Investment Company Limited and the staff of its investment manager, Hansa Capital Partners LLP, may hold positions in the securities mentioned in this presentation or may buy, sell or offer to make a purchase or sale of such securities from time to time. The information in this presentation pack is indicative only and is not an offer of or invitation to engage in any investment activity. It does not and is not intended to constitute any form of financial promotion within the meaning of the Financial Services and Markets Act 2000. This presentation pack is not a prospectus, and does not constitute or form part of any offer or invitation to buy, underwrite or solicit any offer to purchase securities, nor shall it or any part of it form the basis of or be relied upon in connection with any contract therefor. This presentation pack has been solely supplied for your information and you may not reproduce it, distribute it to another person or publish it, in any case in whole and in part, for any purpose. The information contained in this pack is selective, is for background purposes only and is subject to amendment. Past performance is not necessarily a guide to future performance. The price of shares and income generated may fall as well as rise. An investor may not get back the amount invested. Any person considering investment opportunities is encouraged to seek the advice of an appropriate authorised independent financial advisor, their own independent legal and taxation advice, together with any other advice that they may consider necessary in order to consider the benefits and risks attached to an investment opportunity.
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