Cumberland Place sustainable long term returns 24 th November 2015 - PowerPoint PPT Presentation

Unicorn Investment Approach Investing in the Best of British Companies ethos – traditional values - investing to produce Cumberland Place sustainable long term returns 24 th November 2015 investment style – consistent application of clearly defined investment criteria stock selection – systematic process to identify ‘best’ companies analysis – investment ideas researched in-house valuation – experience backed by detailed financial analysis 4

Unicorn Asset Management Independently owned and managed company established in 2000 Fundamental stock picker Renowned UK mid and small cap companies, AIM & fledgling markets specialist Experienced, committed, and well-resourced investment team with >100 years combined experience Assets under management c. £950m* Managers invest in their own funds Aims to generate consistent long term outperformance - be “the best” rather than “the biggest” Source: Unicorn Asset Management 30 October 2015 2

Investment Philosophy Alpha Generation Alpha Generation Alpha Generation Alpha Generation Disciplined End Market Competitive Smaller Investment Identification Advantage Company Criteria Advantage Companies exposed We prefer companies We only invest in We prefer smaller to growing end with a competitive profitable companies companies for their markets advantage inherent flexibility Companies must be dividend paying or UK smaller Strong niche market Important to have a clear path to companies attract operators or “best of understand why a doing so less broker coverage breed” companies in competitive established markets advantage exists We believe the This creates highest quality inefficiencies and Our sell discipline is We identify companies should be investment usually driven by a competitive able to both fund opportunities change in the end advantage: growth and pay market intellectual property, All research dividends scale, infrastructure, conducted in-house knowledge of market 3

Current Market Valuations EPS Forecast Forecast Growth PE 2015 PE 2016 2016 FTSE 100 * 15.9 15.1 5.6% FTSE 250 * 17.4 16.1 8.6% FTSE Small Cap * 14.4 13.3 8.7% Excluding Oil & Gas, Mining Source: * Peel Hunt UK Market Valuations 26 October 2015; Excluding loss makers **Unicorn Asset Management, weighted average figures 19 November 2015 4

Unicorn Investment Approach Investing in the Best of British Companies ethos – traditional values - investing to produce UK Smaller Companies Fund sustainable long term returns investment style – consistent application of clearly defined investment criteria stock selection – systematic process to identify ‘best’ companies analysis – investment ideas researched in-house valuation – experience backed by detailed financial analysis 4

UK Smaller Companies Fund Genuine Smaller Companies Fund  No stocks outside of remit with no attempt to benchmark  Weighted Average market cap £255m* Underlying Investments*  Flexible and nimble FTSE MID 250, 6.1% All Companies Profitable at Point of FTSE Small Cap, 57.8% Investment  FTSE Fledgling, 4.8% High conviction portfolio of 30 to 50 stocks Full, 10.0%  Well diversified by sector AIM, 19.2% Strong Thematic Plays Cash, 2.1%  UK consumer  US recovery and growth Strong Performance  Top quartile over 3 & 5 years *Source: Unicorn Asset Management, 30 October 2015. Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the full amount of their original investment. 6

Preferred Sectors/Themes 2015 Broad themes, multi-year time horizon, keeping it fluid: Thematic UK economic recovery focusing on true small companies US GDP growth; US construction & manufacturing recovery Secular tech growth Dividend strength and quality General Selective participation in IPO market Speciality/niche businesses Active in secondary fundraisings Investee companies M&A activity 7

Consumer spending driving UK growth UK consumer spending growth hit Weekly earnings growth versus CPI five-year high in Q2 3.5 6.0 3.0 5.0 Rising employment, low inflation and Weekly earnings growth % 2.5 4.0 wage growth all contributing to the 2.0 3.0 UK CPI rise in consumer spending 1.5 2.0 1.0 1.0 Strong house prices boosting 0.5 0.0 confidence and encouraging falls in 0.0 -1.0 the savings ratio Forecasts envisage further near-term Regular weekly earnings YoY % growth UK CPI falls in savings ratio *Source: Bloomberg 8

Stable and strengthening US economy Construction put in place for the 12 U.S. construction put in place months to the end of August up 14% 1.300 20 Construction put in place ($' trns) 15 YoY to c. $1.1 trillion 1.200 10 1.100 % change YoY 5 Highest construction output for seven 1.000 0 years 0.900 -5 0.800 -10 Strongest YoY growth since March 06 0.700 -15 0.600 -20 Robust growth in residential and non- residential construction Construction put in place ($' trns) % change YoY *Source: US Census Bureau data, seasonally adjusted figures 9

Somero  Manufactures laser-guided machinery used in horizontal concrete placement  Advances the productivity, concrete flatness and efficiency of the jobsite  Addresses c. 99% of the global market  Exposed to US and international construction  US exposure at 60% with construction Market Cap £80m recovery apparent Sector Industrial Engineering  Fleet in service average age approaching replacement age Index AIM All Share Source: Unicorn Asset Management, 30 October 2015 10

Trifast  Global manufacturer and distributor of industrial fastenings  Margin enhancement from acquisitions  Supply chain consolidation beneficiary  Consumer discretionary exposure  Self-help measures improving margins  Increased demand from the automotive, Market Cap £132m domestic appliances etc. Sector Industrial Engineering Index FTSE Small Cap Source: Unicorn Asset Management, 30 October 2015 11

Acal  Specialist electronics group supplying niche electronics  Serves 25,000 industrial manufacturers  80% of products are customer- specific and technologically complex  Key markets in UK, Germany, France and Nordics. Market Cap £159m  40% of revenues from design and manufacturing Sector Support Services  Targeted acquisitions – i.e Foss Fibre Index FTSE Small Cap Optic Systems Source: Unicorn Asset Management, 30 October 2015 12

Avon Rubber  Global market leader in respiratory protection systems for military, security and emergency services  World-leading dairy business, manufacturing liners and tubing for dairy industry  Dairy business gaining market share  Exposure to growing dairy business in BRIC economies Market Cap £354m  Good order book visibility in defence Sector Aerospace & Defense market Index FTSE Small Cap  Geopolitical concerns for CBRN defence Source: Unicorn Asset Management, 30 October 2015 13

Clipper Logistics Group  Leading provider of value-added logistics and e-fulfilment solutions  Well positioned to benefit from evolving “ omni- retail” market  Blue-chip client list and strong new business pipeline  Beneficiary of strong UK consumer driving online sales and “click & collect” Market Cap £272m services  Sector Industrial Transportation Strong financial track record and robust balance sheet Index Full Source: Unicorn Asset Management, 30 October 2015 14

Regulatory Notice This document is an advertisement and not a prospectus. It has been issued by Unicorn Asset Management Limited and constitutes a financial promotion under Section 21 of the Financial Services and Markets Act 2000. This document should not be regarded as constituting advice in respect of legal, taxation, investment or any other matters. Prospective investors are advised to consult their bank manager, stockbroker, solicitor, accountant or independent financial adviser before considering any investment. Past performance is not a guide to future performance. The value of investments & the income from them may go down as well as up & investors may not get back the full amount of their original investment. Investing in smaller companies, including AIM companies & unlisted companies, can carry greater risks than those usually associated with larger capitalised companies. Any decision to invest in the Unicorn OEICs or the Unicorn AIM VCT Plc. should be made solely by reference to the information, terms and conditions contained in the relevant prospectus and application form. Unicorn Asset Management Limited provides no guarantees, representations or warranties regarding the accuracy of this information. This information should not be construed as an invitation, offer or recommendation to buy or sell investments, shares or securities or to form the basis of a contract to be relied on in any way. If you are interested in any of these funds you should contact your usual financial adviser before making any investment decision. Preacher’s Issued by Unicorn Asset Management Limited, First Floor Office, Court, The Charterhouse, Charterhouse Square, London EC1M 6AU. Authorised & Regulated by the Financial Conduct Authority. 15

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