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New Court Fund USD Rothschild & Co WM SICAV SIF Quarterly Report | Issue 25 | January 2021
Cover: Our office at New Court. This is not a promotion or solicitation of the Rothschild & Co WM SICAV
The site has been home to the SIF – New Court Fund USD, which is not usually available to execution
business in London since 1809. only or advisory clients. When certain criteria are met discretionary
portfolios may hold the Fund, but only at Rothschild & Co’s discretion.
© Philippe Ruault/OMA 2012.
Values: All data as at 31st December 2020 (except inflation which is
Rothschild & Co until 30 th November 2020 as December 2020 data figures are not
Wealth Management yet available). Sources of charts and tables: Rothschild & Co and
New Court Bloomberg, unless otherwise stated. Past performance is not indicative
St. Swithin’s Lane of future performance and investments and the income from them can
London EC4N 8AL fall as well as rise. Fund performance is shown in US dollars, after all
+44 20 7280 5000 fees, in total return, combining income and capital growth. Returns may
rothschildandco.com increase or decrease as a result of currency fluctuations.
© 2021 Rothschild & Co Please ensure you read the Important Information section at the end
Wealth Management of this document.Fund manager’s review
The ongoing coronavirus pandemic and ensuing lockdowns posed a challenge as
winter approached, but positive vaccine news boosted investor confidence about
the global economic recovery during the fourth quarter.
Performance contributions Portfolio activity
The portfolio returned +10.9% in the fourth We added two new positions to the portfolio
quarter and has now returned +239.6% (after during the quarter: Eurofins and Constellation
fees) since inception (vs. +141.7% for US Software. Eurofins is a laboratory testing
inflation +3% since inception on 31st December business focused primarily on human health
2002.* This equates to an annualised return of and wellbeing which operates in three main
+7.0% compared to +5.0% for inflation +3%.** segments: pharmaceuticals, food and
environment. Testing is vital for ensuring product
The portfolio enjoyed gains across most
quality, and Eurofins offers a trusted and highly
positions in the fourth quarter, as equity markets
reputable service across a global laboratory
were buoyed by COVID-19 vaccine news in
network. As a major provider of COVID-19
November and many indices concluded the
testing, Eurofins has been one of the few
year at record highs. Ryanair (+44.6%) was the
beneficiaries of the pandemic. However, positive
standout performer in the portfolio, as vaccine
vaccine news in November led to volatility in
developments led to renewed hope of increased
the share price. We added the position to the
travel during 2021. Despite reporting a -62%
portfolio at an attractive valuation.
year-on-year decline in passengers over the
quarter, the company is likely to emerge as one Constellation Software is a holding company
of the strongest players in the industry as it that acquires, manages and builds software
uses the crisis as an opportunity to realise its businesses. These software businesses typically
plans for major capacity expansion and enact operate in specific niches and industries, and
multi-year cost savings. Quite remarkably in a demonstrate high-recurring revenues, low
year marked by a global pandemic, which has customer churn and strong pricing power. The
particularly affected Ryanair’s core western company has been extremely acquisitive –
European markets, the share price was up buying in excess of 500 companies over the last
+12.5% for the year. 25 years. In our view, Constellation has strong
competitive advantages in acquiring businesses
Following a difficult first half of 2020, we saw
in the vertical market software (VMS) space,
rebounds across the portfolio, even in our more
driven by its scale, its reputation for integrity
economically sensitive holdings, with strong
and long-term ownership, and its ability to
gains from Lloyds (+38.3%), recently added
optimise the companies it acquires. Despite
Booking (+30.2%), and indirectly via our third-
being a hive of acquisition activity, we believe
party funds. The Lansdowne Developed Markets
that the growth runway is still vast with tens of
and Phoenix funds both reported strong gains
* The inception date of the thousands of potential targets in both North
Fund which implements this (+36.3% and +37.1% respectively), driven by
strategy was 8 th October 2014. America and Europe.
Performance for periods prior to rebounds in airlines, banks and a number of
inception date is the Rothschild
& Co Wealth Management other typically cyclical names in their underlying These new investments were partially funded
UK Ltd Balanced composite,
adjusted to reflect the Fund’s
portfolios. We repurchased Lansdowne amidst by reducing several return asset positions
1% management charge and the market downturn in the first quarter, and the following a period of strong performance,
fund operational costs.
fund is up +32.8% since re-entry. namely Deere and Ryanair in November, and
** Annualised figures are
calculated on a compound basis Admiral, Berkshire Hathaway, Linde and the
Given the strong equity market performance,
to best represent the results of Bares US Equity fund in December.
staying continuously invested the main detractors over the period were
from inception of the strategy.
unsurprisingly among the diversifiers, namely During the quarter we sold and subsequently
Data sources: Rothschild & Co
and Bloomberg Okura (-3.4%) and Artemis Volatility (-3.8%), which added to our positions in the put warrants. We sold
Holdings are subject to change gave back some of the strong gains they enjoyed two of our holdings in October, as market volatility
without notice. This document earlier in the year. Our only return asset detractor led to two of our Euro Stoxx 50 put warrants
does not constitute a personal
recommendation or an offer over the period was S&P Global (-8.7%), which moving ‘in-the-money’ and we chose to monetise
or invitation to buy or sell
securities or any other banking remains firmly positive for the year (+20.9%). with relatively little time left until expiry. In
or investment product. Past
performance is not indicative December, we bought a new 12-month put warrant
of future performance and on the S&P 500 to provide some further protection
investments and the income
from them can fall as well as rise. in the event of a market setback in 2021.
New Court Fund USD | January 2021 | Page 3Fund performance
Since inception, the Fund has outperformed inflation +3%. As at 31st December 2020,
the net asset value per share was $14.60. The Fund size was $426.5 million.
Performance since inception (%)*
Net
250
200
150
100
50
0
-50
2004 2006 2008 2010 2012 2014 2016 2018 2020
New Court Fund USD US Inflation (CPI) +3%
Performance comparison – over time (%)
Since
Q4 2020 2020 2019 2018 2017 2016 inception*
New Court Fund USD 10.9 15.3 18.4 -5.8 11.9 0.4 239.6
US inflation +3% 1.0 3.9 5.3 4.9 5.1 5.1 141.7
US inflation 0.2 0.9 2.3 1.9 2.1 2.1 43.5
Global equities 12.8 14.2 26.2 -7.7 19.8 9.0 362.8
(in local currencies)
Global equities 14.7 16.3 26.6 -9.4 24.0 7.9 385.5
(in USD)
US government bonds -0.8 8.0 6.9 0.9 2.3 1.0 97.1
USD cashFund holdings The Fund combines return and diversifying assets which are invested across global markets. The return assets are held to generate capital growth over the long term; the diversifying assets are held to protect capital and investment performance, particularly during difficult markets. Return assets (70.1%) Diversifying assets (29.9%) Equities – Companies 24.3% Equities – Companies 22.2% Alternative strategies 5.5% Admiral 2.9% American Express 3.8% Abbey Capital 1.9% Ashtead 2.8% Comcast 3.0% Artemis Volatility 0.7% Booking 1.2% Deere 3.5% CFM Trends 2.9% Cable One 2.2% Linde 3.0% Charter Communications 1.9% Mastercard 2.7% Portfolio protection 1.7% Constellation Software 1.1% Moody's 3.3% Okura 1.6% Eurofins 1.0% S&P Global 3.0% Euro Stoxx 50 2600
Fund allocations
The Fund is invested across global regions, asset classes and currencies. The fund
manager follows a diversified investment approach and aims to preserve and grow
the real value of the Fund over the longer term.
Fund holdings by asset class Fund holdings by currency
0.4% 0.3%
5.5% 1.7% 7.3% 0.1%
0.7%
5.2%
19.4%
70.1%
3.2%
86.0%
Equities Fixed income US dollar Swiss franc
Cash and Alternative strategies Pound sterling Yen
cash equivalents Portfolio protection Euro Nordic
Asian + EM
Percentages may not sum to 100% due to rounding. The above currency exposure is net of foreign exchange hedges. For the purposes of more
accurately managing currency risk, where appropriate, we reflect the currency exposure of certain funds based on the underlying securities held
within the fund, rather than the denomination of the fund.
Page 6 | New Court Fund USD | January 2021Supporting information
Rothschild & Co WM SICAV SIF – New Court Fund USD
Type of fund A sub-fund of a Luxembourg Société d’Investissement à Capital Variable (“SICAV”).
Objective The objective of the Fund is to preserve and grow the real value of the Fund over the
long term through a diversified investment approach. The Fund may utilise a wide
range of asset classes in order to achieve its objective. These may include equities,
cash deposits, bonds, warrants, money market instruments, derivatives and forward
transactions, funds (regulated and unregulated), exposure to currencies, commodities
and property.
Launch date 8th October 2014.
Share class Income and accumulation. Base currency is US dollar.
Estimated synthetic OCF* 1.40%. This includes the manager’s fee (1.00%), other expenses (0.11%) and expenses
on underlying fund investments (0.29%).
Transaction costs** 0.10%
Pricing aluation day for subscriptions: each business day
V
Valuation day for redemptions: weekly (Thursday)
Settlement period: T+3
Comparators S CPI + 3%. MSCI All Country World in dollars. Bloomberg Barclays US Treasury Total
U
Return Index. Barclays Benchmark Overnight USD Cash Index.
* The Ongoing Charges Figure (OCF) as calculated in May 2020. The OCF is the ratio of the Fund’s total disclosable costs (excluding overdraft
interest) to the average net assets of the Fund. It is intended to provide a reliable figure that gives the most accurate measure of what it costs to
invest in the Fund and is calculated based on the last period’s figures. The Synthetic OCF includes the fees of the underlying fund investments
weighted on the basis of their investment proportion in the Fund. From time to time management fees may differ. This will be disclosed and
explained to you in good time before you invest.
** The transaction costs show the most recent transaction figures available.
New Court Fund USD | January 2021 | Page 7Notes
At Rothschild & Co Wealth Management we offer an objective long-term
perspective on investing, structuring and safeguarding assets, to preserve
and grow our clients’ wealth.
We provide a comprehensive range of services to some of the world’s
wealthiest and most successful families, entrepreneurs, foundations
and charities.
In an environment where short-term thinking often dominates, our long-
term perspective sets us apart. We believe preservation first is the right
approach to managing wealth.
Important information
Rothschild & Co Wealth Management UK Limited offers This document is distributed in the UK by Rothschild & Co Wealth
discretionary portfolio management services to its prospective Management UK Limited. Law or other regulation may restrict the
clients and clients. We may, at our discretion, sometimes deliver distribution of this document in certain jurisdictions. Accordingly,
our balanced portfolio for clients using a fund vehicle where it recipients of this document should inform themselves about and
matches your requirements. We do not solicit potential investors observe all applicable legal and regulatory requirements. For the
with materials for funds: you should only read this document avoidance of doubt, neither this document nor any copy thereof
having already been provided with materials for our standalone may be sent to or taken into the United States or distributed in
discretionary investment management services. This document the United States or to a US person. References in this document
does not constitute promotion or solicitation of the Rothschild to Rothschild & Co are to any of the various companies in the
& Co WM SICAV SIF – New Court Fund USD which is not usually Rothschild & Co Continuation Holdings AG Group operating/
available for purchase on an execution only or advisory basis. trading under the name “Rothschild & Co” and not necessarily
to any specific Rothschild & Co company. None of the Rothschild
This document is strictly confidential and produced by Rothschild
& Co companies outside the UK are authorised under the UK
& Co for information purposes only and for the sole use of the
Financial Services and Markets Act 2000 and accordingly, in
recipient. Save as specifically agreed in writing by Rothschild &
the event that services are provided by any of these companies,
Co, this document must not be copied, reproduced, distributed
the protections provided by the UK regulatory system for retail
or passed, in whole or part, to any other person. This document
customers will not apply, nor will compensation be available
does not constitute a personal recommendation or an offer
under the UK Financial Services Compensation Scheme. If you
or invitation to buy or sell securities or any other banking or
have any questions on this document, your portfolio or any
investment product. Nothing in this document constitutes legal,
elements of our services, please contact your client adviser.
accounting or tax advice.
The Rothschild & Co Group includes the following businesses
The value of investments, and the income from them, can go
(amongst others): Rothschild & Co Wealth Management UK
down as well as up, and you may not recover the amount of your
Limited. Registered in England No 4416252. Registered office:
original investment. Past performance should not be taken as
New Court, St Swithin’s Lane, London, EC4N 8AL. Authorised
a guide to future performance. Investing for return involves the
and regulated by the Financial Conduct Authority. Rothschild
acceptance of risk: performance aspirations are not and cannot
& Co Bank International Limited (No 1088). Registered office:
be guaranteed. Should you change your outlook concerning your
St Julian’s Court, St Julian’s Avenue, St Peter Port, Guernsey,
investment objectives and/or your risk and return tolerance(s),
GY1 3BP. Licensed and regulated by the Guernsey Financial
please contact your client adviser. Where an investment involves
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exposure to a foreign currency, changes in rates of exchange may
Investment Services. Rothschild & Co Bank AG. Registered office:
cause the value of the investment, and the income from it, to go
Zollikerstrasse 181, 8034 Zurich, Switzerland. Authorised and
up or down. Income may be produced at the expense of capital
regulated by Eidgenössischen Finanzmarktaufsicht FINMA.
returns. Portfolio returns will be considered on a “total return”
basis meaning returns are derived from both capital appreciation Investment returns and the principal value of an investment
or depreciation as reflected in the prices of your portfolio’s will fluctuate and may be volatile. An investment in the Fund
investments and from income received from them by way of involves significant risks, including the risk of loss of capital.
dividends and coupons. Holdings in example or real discretionary The Rothschild & Co WM SICAV SIF – New Court Fund USD
portfolios shown herein are detailed for illustrative purposes is suitable only for sophisticated investors and requires the
only and are subject to change without notice. As with the rest of financial ability and willingness to accept the risks inherent in
this document, they must not be considered as a solicitation or an investment in the Rothschild & Co WM SICAV SIF – New Court
recommendation for separate investment. Fund USD. No assurance can be given that the Rothschild & Co
WM SICAV SIF – New Court Fund USD’s investment objectives
Neither MSCI nor any other party involved in or related to
will be achieved. Account valuations of individual investors may
compiling, computing or creating the MSCI data makes any
vary and such historical returns may not reflect the performance
express or implied warranties or representations with respect
of any one investor.
to such data (or the results to be obtained by the use thereof),
and all such parties hereby expressly disclaim all warranties of There can be no assurance that an investment will achieve
originality, accuracy, completeness, merchantability or fitness for returns at levels comparable to the returns reflected herein. An
a particular purpose with respect to any of such data. Without investors’ return may be different than that of the Rothschild
limiting any of the foregoing, in no event shall MSCI, any of its & Co WM SICAV SIF – New Court Fund USD because of, among
affiliates or any third party involved in or related to compiling, other things, differences in the amount of capital at risk,
computing or creating the data have any liability for any direct, diversification, risk tolerance and portfolio turnover.
indirect, special, punitive, consequential or any other damages
No independent party has audited the performance results shown
(including lost profits) even if notified of the possibility of such
herein, nor has any independent party undertaken to confirm that
damages. No further distribution or dissemination of the MSCI
such results reflect the trading method under the assumptions or
data is permitted without MSCI’s express written consent.
conditions of Rothschild & Co’s investment process.
Although the information and data herein are obtained from
The indices referenced herein are well-known market indices
sources believed to be reliable, no representation or warranty,
which are included merely to show the general trend in the
expressed or implied, is or will be made and, save in the case
markets for the periods indicated and are not intended to imply
of fraud, no responsibility or liability is or will be accepted by
that the pro-forma returns were comparable to the indices either
Rothschild & Co as to or in relation to the fairness, accuracy
in composition or element of risk or that the Rothschild & Co
or completeness of this document or the information forming
WM SICAV SIF – New Court Fund USD’s portfolio is benchmarked
the basis of this document or for any reliance placed on
to the indices. The indices are unmanaged, may or may not
this document by any person whatsoever. In particular, no
be investable, have no expenses and reflect reinvestment
representation or warranty is given as to the achievement or
of dividends and distributions. Index data is provided for
reasonableness of any future projections, targets, estimates or
comparative purposes only. A variety of factors may cause an
forecasts contained in this document. Furthermore, all opinions
index to be an inaccurate benchmark for a particular fund and the
and data used in this document are subject to change without
index does not necessarily reflect the actual investment strategy
prior notice.
of the Rothschild & Co WM SICAV SIF – New Court Fund USD.
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