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Fiducian Technology FundFiducian India Fund

Presented by

Indy Singh

Executive Chairman, Fiducian Group

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The Fiducian Technology Fund

A great opportunity to own companies, which if they deliver on their promise could forever change the way we live and bring substantial gains to investors. Be part of it now or forever hold your peace…..

Fund exposure 30% Biotech and 70 % Other-Tech

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Technology is the competitive advantage of the West- Investing in a pure technology play is investing in the future

The future will largely be dictated by “BRAIN”

• Bio Technology

• Robotics

• Artificial Intelligence

• Nanotechnology

Biotech Team: Boston and London

Other Global Tech Team: Boston, Singapore, Tokyo

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The tech sector is consistently bringing in big volumes of cash

Source: Wellington Management

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Strong earnings growth is keeping the PE ratio low- Tech is not expensive today

Source: Wellington Management

Tech Wreck

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Bio-Technology Opportunities

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Three New Treatment Modalities

Coming decade should witness a host of wonderful new drugs and novel treatment modalities based on Gene Manipulation

• Gene Therapy: Delivers genetic instructions to patients cells to reverse harmful effects of a defective gene and produce more of the missing factor. Limited ability E.g. Haemophilia, lack of blood clotting. Eyes, blood, liver.

• Gene Editing using CRISPR system: Less disruptive that Gene Therapy and corrects or replaces an inborn genetic error by replacing or deactivating a harmful gene causing the disease. In its infancy, but rapid advancement expected

• Cell Therapy: Healthy body cells are re-engineered by changing their genetic code and turning them to cancer fighting machines i.e. Immuno-oncology. Approved by FDA in 2017. Market upwards of US$ 60 billion

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Biotech innovations coming thick and fast- the FDA has streamlined the approvals process

Source: Wellington Management

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Small – Mid Cap Stock Holdings for Future Growth

Next-Gen Cancer

Blueprint – developing targeted small molecule therapeutics for the treatment of specific genetic cancers

Seattle Genetics – developing treatments for cancer to precise anatomical locations

Rare diseases/Gene therapy

Bluebird Bio – focused on gene therapy for Sickle Cell Disease (production of abnormal hemoglobin) and cancer of the blood

Ultragenyx – focused on bringing novel products for treatment of rare and ultra-rare diseases e.g. respiratory and heart failure

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Fiducian Biotech Portfolio Construction Philosophy

• Technology assessment is a key to successful biotech investing and is the area for greatest potential differentiation

• Early entry into smaller companies at clinical trial stage with a compelling business model: just one successful drug can create a very large company

• Do not chase. If a good one gets away, let it go.

Biopharma Company Market Cap % of portfolio % of NASDAQ

Biotech Index

Large cap > US$10billion 26 44

Mid cap US$ 5 to 10billion 13 18

Small Cap US$ 1 to 5billion 39 20

< US$ 1billion 17 7

Medical Technology 1 9

Healthcare Services 0 2

Cash 4 0No. Of Stocks 57 220

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Global Technology Opportunities

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Technology Evolves 24/7. It waits for no one

The photo is a hard disk drive with 5 MB of storage in 1956

It would take 3200 of these units to equal the capacity of a little 16-Gig stick plugged into the side of a PC

Evolution of the telephone 150 years

First Flight 1903……. ……Man on the Moon 1969…….Next Mars

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Robotics - Flextronics Inc.

Flextronics Inc. – Real-time supply chain insight and logistics services to Medical, Automotive, and Industrial companies

Laser cutting technology leading to 50% decline in waste materials during production process

Robotics use will adversely impact current production in low cost countries

Medical, Industrial, Space, Military and Home Use

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Companies rise and fall

Big shifts in Fintech market cap and profit pool

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Long term computer growth sectors for Fiducian

We believe tech investments should focus on long-tailed secular growth areas such as:

Artificial intelligence Internet of Things

Machine learning Mobile wallets

Block chain The cloud

Focus on pure technology plays where >80% of revenue

is driven by Fintech

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Game Changer Stock Holdings

5G connectivity

China Tower – real estate tower operator in China

• China will likely lead the world in 5G trials and rollout since the Huawei ban

• China Tower differs from every tower operator in the world. It can use state owned infrastructure

(utility poles, street furniture, etc.) and private buildings.

Marvell Technology

• Marvell is one of the most levered plays to 5G network

• There will be 4x the amount of semiconductor content in 5G base stations vs 4G – Marvell has

contracts to supply to Samsung, Nokia and Ericsson

Renewable Energy

First Solar – manufactures photovoltaic CdTe solar power systems (cost on par with traditional

energy sources but higher efficiency)

• Solar is 1% of energy generation today, but forecast to be over 25-30% in 15 years

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Game Changer Stock Holdings

Fintech

Global Payments – provider of payment technology and software solutions

• Roughly US$17 trillion in payments worldwide still use cash and checks, but digital transactions are now growing five times faster than other methods.

Guidewire Infrastructure – provides software products for property and casualty insurers worldwide.

• Most technology used by an insurance company is 1980’s developed and needs to be replaced with predictive analytics and CRM.

Nexon – Korean company benefitting from the shift of gaming from PC to mobile

Cloud Computing

• Workday – enterprise cloud applications, for finance and human resources

.

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Fiducian Global Technology Opportunities Portfolio Structure

MSCI AC World Custom

Technology

Size Portfolio Benchmark

Over USD 50 bil (%) 42 72

USD 20 – 50 bil (%) 18 16

USD 10 – 20 bil (%) 20 7

USD 2 – 10 bil (%) 17 5

Under USD 2 bil (%) 3 0

Projected EPS growth (5-yr, %) 17 14.4

Number of stocks held 57 304

% in non-US domiciled – total (%) 17 25.5

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Fiducian Technology Fund Performance The smart money has found it already

Target eps growth 13% to 15% pa

2020

An Active Multi Manager Fund to Capture the entire breadth of the Indian Stock Market

117 securities

Fiducian India Fund

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• Compound annual return of 17% over the 5 years to end-April 2019

• The market can be volatile

• the market rose 41% in 2014, fuelled by Modi’s election (BJP Party)

• the market rose only 1% in 2015 and 2% in 2016

• the market then rose 28% in 2018

• the market fell 11% in 2018

• the market rose 4% over the 4 months to end-April 2019 (with much volatility in between)

• Our fund out-performed the index by 3% per annum over the 5 years to end-April 2019

• Our fund lagged the index over the 1 year period to end-April 2019

• this recent under-performance has been due to under-performance by the small and mid-cap sectors

• these sectors are expected to revive in the near future, particularly with Modi back in power

Fiducian India Fund

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Multi Manager Multi Style % Weight

State Bank of India Large-Cap 17

Sundaram Mid & Small-Cap 42

HDFC Large & Mid-Cap 18

Tata Large, Mid & Small-cap 22

• Only blended fund available with broad exposure to mid-caps and small-caps as well as large caps

Fiducian India Fund

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Why India?

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India is already the world’s 5th largest economy

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India’s population is young, educated and urbanising

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The Indian stock market is well diversified

5,000 companies listed on the BSE

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• India adds c10 million to the work force each year and

• Contributes c18% to 19% of the global working age population

• Making India world's biggest supplier of work force by 2030

Source: UN Data, Jefferies

India to have world’s largest workforce by 2030

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• World’s largest democracy with high proportion of English speakers

• Favourable demographics: young, growing middle-class consumers

• Sustainable high GDP-growth economy growing by over 7% pa. Government

aware of importance of fiscal management

• Potentially the 4th largest GDP nation by 2025 and 3rd by 2030

• Resilient to global economic shocks: largely domestic-consumption driven

• Huge infrastructure spend adds to economic growth: US$ 1.7 trillion in projects,

plus US$ 1.5 trillion for roads to villages

• Compelling corporate earnings growth prospects

• Showcasing technological capability – Moon Lander

India facts

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Fiducian India Fund Performance

Target eps growth 10% to 14% pa

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MSCI Earnings Growth Rate Forecast

4%2%

14%

24%

8%

-5%

33%

8%

3% 3% 2%1%

18%

0%

10% 11%10%

6%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

India Australia World USA Europe Japan

MSCI Earnings Growth Rate

2018A 2019E 2020E Source: Yardeni Research, Inc.

When Global Earnings Growth is likely to be in low single digits over

the next year or so, the Fiducian Technology and India Funds can

support and generate long-term wealth for your clients.

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Fiducian Growth Fund

Ausbil

L1 Capital

Pendal (BT)

Fidelity

Solaris

Bennelong

Blackrock

Franklin

Wellington Global Research

Wellington TechnologyWellington Biotechnology

Vanguard Emerging Markets

SSgA Global Index Plus

SBISundaram

HDFCTata

iShares

Phoenix

Principal

iShares Australian Bonds

Perpetual Australian Bonds

iShares Inflation Bonds

iShares Global BondsANZ CMS

Blackrock Cash

Australian Shares

Global Shares

Property Securities

Bonds

Cash

25 Fund Manager Portfolios – Manage the Manager System

Fiducian Growth Fund Performance

6mth 1yr 2yr 3yr 4yr 5yr 6yr 7yr 8yr 9yr 10yr

Return 15.7% 7.5% 10.3% 10.6% 9.2% 10.0% 10.8% 12.1% 10.0% 9.9% 10.1%

Rank 4/195 66/193 3/178 1/173 1/168 1/167 1/165 1/161 3/151 3/135 3/130

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Disclaimer

Information in this document and given in the presentation is of a general nature.It is not intended to be, nor does it, constitute financial, legal or tax advice. The information is given in good faith and, although care has been exercised in compiling it, Fiducian Group Limited and the other members of the Fiducian Group (Fiducian) neither represent nor warrant that the information is free of errors, omissions or inaccuracies.

Fiducian takes no responsibility for losses suffered by a person relying on the information except for statutory liability that cannot be excluded.

Do not rely on this information without first seeking professional advice based on your own personal circumstances, objectives, financial situation or needs.

The information was prepared on 1 August 2019.