animaprima fund highpotentialeurope__citywirealtucits201211

Anima

How to benefit from the European Equities Comeback

2012

For professional investors only

1

Anima – Key facts

Leading Italian asset management firm Over 35 bln Eur of Assets under Management* Largest independent manager, 3rd mutual fund manager by AuM

including captive players Operations in Italy (ANIMA Sgr), Ireland (ANIMA Asset

Management), Luxemburg (ANIMA Man Co) 215 employees

Unique distribution network Long-term partnerships with Banca Monte dei Paschi di Siena and

Banca Popolare di Milano (shareholders of AM Holding – ANIMA’s parent holding company)

150+ distribution agreements with banks and financial advisors networks

Breakdown by Tipe of client

Breakdown by asset class


2

ANIMA – Group structure

38,1% 2,2%23,4%36,3%

Managementand other shareholders

Asset Management Holding

(Ireland) (Luxemburg)

Strategic guidelines Shareholders relations Group finance Internal, legal and corporate audit

Business plan implementation Business Management


3

ANIMA - Investment Division

Investments Division(44)

Equities (12) Bonds (12) Mandates (10) Multimanager (10)


Distinctive investment and product engineering capabilities Over 50 investment/product development professionals In-house structuring team for formula funds

4

ANIMA’s investment philosophy


NO buy and hold

NO style bias

NO buy-side analysts

What we do not What we do

Dynamic portfolio management

Tactical approach

NO illiquid bets

Portfolio managers = Analysts

Liquidity is a must

Our beliefs

Short-term market cycles

Clear accountability determines success

Debt > Equity

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60

80

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120

140

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180

gen‐02 gen‐04 gen‐06 gen‐08 gen‐10 gen‐12

Prima Geo EuropaBenchmark

Track record in European Equities – Ten years of over-performance

NOTE: Performance of Prima Geo Europa gross of fees and taxes at 19/11/12; composite benchmark that accounts for changes in porfolio management: 31/12/01-24/11/02 (10% BofA Merrill Lynch Euro Currency 3-Month LIBID Average Coupon in EUR - Gross Total Return, 90% MSCI Europe in EUR - Price Index); 25/11/02-31/12/05 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross Total Return, 90% MSCI Europe in EUR -Price Index); 01/01/06-27/12/07 (10% BofA Merrill Lynch Euro Treasury Bill in EUR - Gross Total Return , 90% MSCI Europe in EUR - Net Total Return); dal 28/12/07 (10% BofA Merrill Lynch Euro Treasury Bill in EUR -Gross Total Return , 90% MSCI Europe in EUR - Net Total Return)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-0,75% 3,68% 1,10% 2,47% 4,18% 3,96% 3,18% 9,94% 3,00% 2,33% - ALPHA

-0,19 1,31 0,69 1,44 1,56 1,58 0,60 3,14 1,18 0,73 - IR

- - - 497% 374% 358% 442% 310% 287% 461% - Turnover

+ 4373 bp

Ten years of out-performingthe markets…

…as expressedby consistentAlpha and IR

European Equity return vs market (GEO Europa gross return)


6

ANIMA - European Equity investment team


Lars SchickentanzCIO, mutual funds

Note: Citywire ratings as of June 2012Source: ANIMA, Citywire

201220102005200019951990

Experience Experience w/ ANIMA

Manuela Novati

Luigi Dompè

Samuele Chiodetto

Andrea Ferrari

Mathias Domini

Andrea Bianco

Lucio Vignati

Over 100 yearsof cumulative

investment management experience

7How to benefit from the European Equities Comeback

Market Outlook for 2013: positive on equity


Tactical

Macro

Why we are positive on Equity?

Investor positioning remain cautious, since 2008 Bond funds have seen $1trn inflow, while equity haveexperienced about $500bn outflow

Equity allocation are low (average recommended allocation in US is currently 42% vs an average overlast 10 years of 63%)

Central Banks balance sheets keep expanding (M1 growing 7% faster than nominal GDP) Search for yield will keep drive multiple expansion (corporate Debt yields making new lows)

Global Macro condition remain a positive despite low growth environment Low Inflation, accommodative monetary policy and gradually improving growth prospects reflect “early

cycle conditions Developed economies are not into year 4 of such conditions and given the extent of the output gap, and

monetary policymakers stated objective of maintaining policy support this backdrop is likely to persistthrough 2013

Macro surprise continue to rise, Em potential growth to surprise as China cycle bottom

Valuation still lead to upside despite the recent multiple expansionEquities remain cheap against the bond

Risk premiums remain elevated at 7.7% on consensus number versusa more warranted ERP ( Based on the output gap, ISM and creditspreads) of 5.5%,

Cyclical adjusted P/E remains close to its 20 year low (investorsadaptation to a low growth, low discount rate cycle is only juststarting

Valuation


Big Investors are still missing in the Equities Markets

Source: Bloomberg, Thomson Reuters, EPFR


Liquidity condition will remains supportive

BBB Yield (since 2007)

Source: Bloomberg

2years German Yield (since 2010)

11

Half of the stocks in the Europe Stoxx 600 have a yield above credit

Stocks attractive vs corporate debt and ERP still high

The equity risk premium – even adjusted for a decline in margins – is currently a very high 7.7% on IBES consensus numbers. Putting in our more pessimistic earnings numbers, the ERP is still 6.2% The warranted ERP (based on the output gap, ISM and credit spreads) is 5.1%



Global Financial Conditions

MSCI World vs GLOBAL MACRO SURPRISE


CHINA – Cyclical trough around year end

CHINA MANUFACTURING PMI NEW ORDERS MINUS INVENTORIES CHINA Industrial Production YoY

Source: Bloomberg

14

From Policy to Growth

Investors will continue to be sensitive to political and policy implementation risks in Q4…

Euro crisis resolution: Spain’s request for EFSF aid, Greece’s future in EMU , progress towardsa banking union, ECB policy

US credit rating and risks of recession due to “fiscal cliff”

China: Political transition in November and scope for monetary and fiscal easing

…but the focus will increasingly switch from policy to growth towards year-end

Subdued and below-trend global growth for 2013 is now a consensus view…

…triggering a “hunt for growth” as investors begin to look into 2013 and beyond

China could be a key source of cyclical upside surprise

Chinese growth disappointed in 2012: weak global demand, delay in policy easing due topolitical transition

EM potential growth: China cycle bottoming around the end of the year

Eurozone to experience positive (albeit temporary) confidence shock: as euro convertibilityrisk falls further in Q4

ECB: credible support mechanism now introduced for peripheral countries

However, Eurozone growth will be capped by fiscal restraint (eg. France and Spain)

US: Beyond the cyclical improvement, the fiscal cliff is a major downside risk

QE3 helps markets but marginal effect on the real economy

Political polarization could lead to a much bigger negative confidence shock than what iscurrently expected

Global Growth stabilises in 2012 Q4 with modest cyclical improvement in 2013 H1;

Look for positive growth surprises in Eurozone and China around year-end;

US Fiscal cliff remains key risk to global growth despite FED QE efforts;



Why European Equities?


Europe has outperformed the US over recent months, as European policymakers finally appear to havedesigned a suitable ‘safety net’.

We see this performance trend continuing through 2013 as political momentum in Europe and a significantshift in the ECB's approach signaled via the OMT announcement. have now effectively reduced the major risks that kept global investors out of Europe.

After adjusting for composition differences, the European and US equity markets are similarly valued on 2012 earnings.

But a major cyclical recovery in earnings awaits in parts of the European equity market, particularlyfinancials, while it is difficult to argue that the US earnings cycle is not far more mature.

Europe is the cheapest way to play the upside in the global equity markets

Why European Equities ?

17

OMT impact on impaired peripheral markets

• Strong impact of non-conventionalmeasures on impaired markets

– OMT implicitly increases ESMfirepower, triggering further publicdebt mutualisation

– Pari-passu ECB status

• Part of a sequence: credit easing is thenext step

– Strong positive tonality hints thatmore is to come

• Warning: this is not yet the fullmutualisation

– No direct control on the long-end ofthe yield curve

– Strict conditionality increasing debt-deflationary pressure

European Financial Condition (since 2010)


Source: Bloomberg

18

Europe Vs US

0.15

0.17

0.19

0.21

0.23

0.25

0.27

0.29

0.31

0.33

0.35

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Stox x Euro 600 relativ e to S&P 500 ($)

Source: Bank of America Merrill Lynch European Investment Strategy

0.7

0.8

0.9

1.0

1.1

1.2

1.3

88 90 92 94 96 98 00 02 04 06 08 10 12

Europe relativ e to the US - 12m Fw d PE

+1SD

-1SD

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ent

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ith

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Stoxx Euro 600 vs S&P ($) MSCI Europe vs. US – 12m Fwd PE

0.5

0.6

0.7

0.8

0.9

1

1.1

1.2

75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11

Europe relativ e to the US - Price to book

MSCI Europe vs. US – Price to book

0.5

0.7

0.9

1.1

1.3

1.5

1.7

80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

Europe relativ e to the US - Schiller PE

MSCI Europe vs. US – Schiller PE


19

Valuation views from Global investors: Europe Vs US

-60

-40

-20

0

20

40

60

80

01 02 03 04 05 06 07 08 09 10 11 12

US Europe

Global Fund Managers: Views on valuations

Overvalued

Undervalued

Source: Bank of America Merrill Lynch European Investment Strategy

-60

-40

-20

0

20

40

60

Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12

US EZ

Global Fund Manager Survey shows investors positioning for Eurozone equities have increased in recent months



How straight European Equityrecovery will be ?

21

Europe will probably rally in waves from the bottom…

Source: Datastream



…but there’s always bull market if you pick it right!

-50%

-30%

-10%

10%

30%

50%

70%

90%

110%

130%

150%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Top sector performance minus Bottom sector…Market perf

Source: Bank of America Merrill Lynch

Year Top sector nameTop sector perfBottom sectorname

Bottom sectorperf

Top sector performance minus Bottom

sector performance

Market perf

1989 Utilities 39% Basic Mats 17% 23% 25%

1990 Health Care -6% Basic Mats -25% 19% -18%

1991 Health Care 60% Technology 3% 56% 12%

1992 Consumer Svs 8% Oil & Gas -4% 13% 2%

1993 Telecom 49% Consumer Gds 22% 27% 36%

1994 Basic Mats 3% Financials -17% 20% -9%

1995 Health Care 50% Telecom -1% 50% 13%

1996 Telecom 34% Financials 15% 20% 21%

1997 Financials 62% Basic Mats 11% 51% 38%

1998 Telecom 63% Oil & Gas -7% 70% 18%

1999 Technology 135% Utilities -5% 140% 36%

2000 Health Care 24% Telecom -37% 61% -5%

2001 Oil & Gas -3% Technology -43% 40% -17%

2002 Consumer Gds -17% Technology -57% 39% -32%

2003 Technology 34% Oil & Gas 1% 33% 14%

2004 Utilities 25% Technology -2% 27% 10%

2005 Basic Mats 40% Telecom -2% 42% 23%

2006 Utilities 36% Health Care 3% 33% 18%

2007 Basic Mats 27% Financials -15% 42% 0%

2008 Health Care -18% Financials -60% 42% -46%

2009 Basic Mats 71% Utilities 1% 70% 28%

2010 Consumer Gds 26% Utilities -9% 35% 9%

2011 Health Care 12% Financials -26% 38% -11%

2012 Financials 21% Telecom -7% 28% 12%


Anima Star High Potential EuropeDiscretionary Long Short European Equities Fund

24

ANIMA STAR High Potential Europe

Fund objective: Long term capital growth investing in european equities regardless of marketconditions, with the target of achieving positive returns at substantially lower risk

Investment Approach: discretionary european long short equities portfolio built along 3 mainperformance engines:

1.high conviction bets2.dynamic hedging book3.Pair trades

Equity nex exposure range: -10 / +70%

Volatility Target: 6%


25

ANIMA STAR High Potential Europe – Investment Team

Lars SchickentanzHead of investments, mutual funds, Head of the European Equity deskANIMA STAR HIGH POTENTIAL EUROPE lead portfolio manager

Career highlights: 20 years of industry experience, started his career in Germany as an Assistant Portfolio Manager. He then covered the same role in Prime Investment Management; in 1993 he became Lead European Portfolio Manager at Caboto Gestione, joined MPAM sgr (now merged in ANIMA Sgr) in 1998. Degree in Economics from Friedrich Alexander Erlangen Nünberg University)

Lucio VignatiSenior Equity Trader, European Equity deskANIMA STAR HIGH POTENTIAL EUROPE co-responsible portfolio manager

Career highlights: 15 years of industry experience, member of the buy side hedge funds desks at Pioneer Alternative and Newmann Ragazzi, sell side desks as Director European equity sales trader for 9 years at Lehman Brothers and Jp Morgan

Mathias DominiAssistant Portfolio Manager, European Equity deskANIMA STAR HIGH POTENTIAL EUROPE co-responsible portfolio manager

Career highlights: started his career in 2009 at Deutsche Bank AG as Assistant to the Head of Italian Equity Research for the Telecommunication segment, joined PRIMA sgr (now merged in ANIMA Sgr) in 2010. MS Degree in Finance from Bocconi University in Milan.


26

ANIMA STAR High Potential Europe – Investment approach

Corebook

Dynamichedging

Pair trades

Result of top down approach Identification of an investment theme or style

(e.g. emerging market consumption) or stock specific catalysts (e.g. reporting season, company events like restructuring, M&A potential)

Typically, maximum of ~50 positions

Hedging purposes according to macro view Portfolio hedging through index derivatives Shorting of high conviction ideas to reduce

market exposure

Long/short equity trades basically beta neutral

Alpha generation strategy de-correlated to the market trend

Strict Stop loss to each positions when build up

Liquidity bias: positions must be sold in 1 day

What is a theme / catalyst?

Structural growing theme (e.g. Emerging markets consumptions)

Short to mid term catalysts (e.g. Implications for European nuclear plants after Fukushima)

Other themes: sectorial, intra-sectorial, geographical (e.g. spread within European countries growing rate), external shock (UE sovereign crisis), megatrend, macro…


27

ANIMA STAR High Potential Europe - Risk management process

Intra day

Monitoring by the Head of investments and the Fund Managers (regulatory, prospectus and internal limits)

Ex-ante monitoring Ex-post monitoring Review

Monthly

The Risk Management Committee examines the evidence of tests and analysis carried by the Risk Management with regards to:

– Risk / return– Investment

strategy– Operational limits

The Board of Directors reviews the overall strategy and portfolio results

Daily

Monitoring of the regulatory / prospectus limits by the Back-Office

Monitoring of the internal limits by the Risk Management unit

Frequency

Description


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‐10%

0%

10%

20%

30%

40%

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60%

80

85

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95

100

105

110

115

120

Jan‐10 Apr‐10 Jul‐10 Oct‐10 Jan‐11 Apr‐11 Jul‐11 Oct‐11 Jan‐12 Apr‐12 Jul‐12 Oct‐12

ANIMA STAR High Potential Europe – Exposure and performance Since Inception


Note: Performance as of 16.11.12, net of fees – Data on daily basis – Source: ANIMA Sgr

Greece

Double dip fears

Fukushima

Greek referendum

Spain

Equity Net exposure MSCI Europe High Potential – Cl. I

Double dip, Italy, US debt ceiling

OMT

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‐10%

0%

10%

20%

30%

40%

50%

60%

80

85

90

95

100

105

110

115

120

Dec‐11 Jan‐12 Feb‐12 Mar‐12 Apr‐12 May‐12 Jun‐12 Jul‐12 Aug‐12 Sep‐12 Oct‐12



Equity Net exposure MSCI Europe High Potential – Cl. I

Spain

ECB LTRO IIEUGroup

ECB OMT

ANIMA STAR High Potential Europe – Exposure and performance YTD

30

ANIMA STAR High Potential Europe – Performance Since Inception

VolatilityPerformance

Since inception +12,2% 6.4%

2010 6.0%+10.2%

2011 6.9%-1.4%

6 moths 3.83%

3 months 0.83%

1 month -1.55%


High Potential Europe – Class I14/1/2010 = 100

90

95

100

105

110

115

120


31

Operational details

Italian UCITS

Fund Name: PRIMA Strategia Europa Alto Potenziale

ISIN classe Y: IT0004302029

Benchmark: no benchmark

Management fee class Y: 0,60%

Portfolio Manager: Lars Schickentanz

Inception Date: 31/12/2006

AUM: 223ml €

Irish UCITS

Fund Name: PRIMA Star High Potential Europe

ISIN classe I: IE0032464921

Benchmark: no benchmark

Management fee class I: 0,60%

Portfolio Manager: Lars Schickentanz

Inception Date: 14/01/2010

AUM: 163 ml €


32

Contacts

Davide GattiDirector, Sales [email protected]+39 02 80638 318

Alessio CoppolaSales Division, Relationship Manager Fund users [email protected]+39 02 80638 267


This document is solely addressed to professional operators. It contains confidential and/or privileged information and it is intendedfor internal use. It cannot be disclosed to third parties and/or distributed to the public. This is an informative report and its content is not intended and cannot be used as advertising for the placement of any fund managed by ANIMA Sgr. The Company assumes the hereby given information as accurate and reliable, but it does not guarantee its precision and it shaIl not therefore be liable for its use by the addressees.

animaprima fund highpotentialeurope__citywirealtucits201211

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