Harnessing Asia’s long term structural growth CC Asia

1

CC Asia Absolute Return Fund Harnessing Asia’s long term structural growth

Angus Coupland, CIO-Asia

6th May 2021

2

CCAM – Who We Are

• CCAM an award winning Asian investment management firm

• Founded by experienced Asian fund managers in 2005

• Over 100 years local experience in the region

• Managing $3.8bn* on behalf of Pension Funds, Family Offices and other institutions

• Wholly owned by partners, employees and directors

• Strong alignment between CCAM and clients

• Institutional operational and risk infrastructure

• Offices in London and Singapore

*Source: CCAM, AUM figures as at 31st March 2021

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Japan Asia ex Japan India

Jonathan

Dobson

CIO - Japan

Richard

Aston

Angus

Coupland

CIO - Asia

Rory

Dickson*

Andrew

DraycottAbhinav

Mehra*

CC Japan Alpha

Quality Growth

SMID Cap Bias

CC Japan

Income & Growth

Total Return

Dividend Focus

CC Asia Alpha

Quality Growth

Leaders

CC Asian Evolution

Consumer Growth

Focus

CC Indian Subcontinent

Domestic Growth Focus

Megumi Takayama

Investment Team and Capabilities

*Coupland Cardiff Management (Singapore) Pte Ltd

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• Fund launched in April 2007, PM start date 29th January 2016

• A concentrated, high conviction, Asia Pacific ex Japan portfolio

• Bottom-up stock selection and benchmark agnostic

• Consisting of predominantly large cap, sector leaders with a bias towards quality growth

• Focus on sustainable barriers to entry which generate earnings visibility and steady cash flow generation

• Performance (Cumulative, USD B):

• 1 year: 56.72%, 3 year: 40.19%, 5 year: 99.10% Since inception: 131.37%*

*All performance details shown are net NAV to NAV percentage returns with gross income re-invested. You should remember that past performance is not a guide to the future. The

price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. Investments denominated in foreign currencies

expose investors to the risk of loss from currency movements as well as movements in the value, price or income derived from the investments themselves; and some of the

investments referred to herein or underlying investments undertaken by issuers may be derivatives and may involve different and more complex risks as compared to listed or other

securities. All figures quoted are in USD. Source: CCAM, Bloomberg. Independent returns are calculated daily by Northern Trust International Fund Administration Services (Ireland)

Limited post 1.12.2009 and The Bank of New York Mellon Corp & Northern Trust International Fund Administration Services (Ireland) Limited pre 1.12.2009.

All figures shown as at 30th April 2021.

CC Asia Alpha Fund

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• Companies with high return on assets significantly outperform through business cycles in Asia

• Real barriers to entry are required to sustain high return on assets

• Structural growth enhances return on assets and drives superior investment performance

• Market dominance and execution track record increase earnings visibility

Barriers to Entry Lead to Sustainable Returns and Structural Growth

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• Health and Wellbeing - Consumers are expressing an increased interest in health and wellbeing, while

governments are ramping up the quality of healthcare coverage. Barriers to entry: regulation, R&D

• Travel & Leisure - Millennials are increasingly mobile with a desire to travel. Barriers to entry: irreplaceable,

monopoly assets such as airports

• Wealth Protection and Credit Products - Unlike their parents, millennials are rapidly demanding innovative access

to credit. Barriers to entry: regulatory, licensing

• Green Infrastructure - Social impacts of industry, policy and consumption are creating growth in high-tech

industries. Barriers to entry: technology, patents, partnerships

• Technology & Ecommerce - Offers value, choice and convenience to everyone with a smart phone, opening up a

world of opportunity that simply hasn’t existed until now. Barriers to entry: superior technology, market dominance

• Consumer Premiumisation - Consumption is upgraded as incomes rise and tastes mature. Barriers to entry:

dominant brand, regulation

Investment Themes – Investing for the long term

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Portfolio Themes – High quality structural growth

Media Nusantara

Godrej Properties

CSL

Square Pharmaceuticals

Health and Happiness

Travel & Leisure

Wealth Protection & Credit Products

AIA Group

China Merchants Bank

Ping An Insurance Group

HDFC Bank

ICICI Lombard General Insurance

Kotak Mahindra Bank

World Leading Technology & Ecommerce

TSMC

Samsung Electronics

Tencent

Alibaba

JD.com

Tencent Music Entertainment

Dada Nexus

Green Infrastructure

Nickel Mines

Alpha HPA

Sungrow Power Supply

Consumer Premiumisation

Saigon Beer

United Breweries

MakeMyTrip

Other opportunities

Health & Wellbeing

Source: CCAM as at 31 March 2021

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Sector Leaders Compound Returns Over Time11,0

79

12,3

01

13,0

54

15,7

07

17,0

52

18,6

16

20,4

44 2

5,4

89

29,4

29

32,6

11

33,3

28

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

NE

T E

AR

NE

D P

RE

MIU

M(U

SD

, M

ILL

ION

S)

AIA

1.8

5

1.7

5

1.8

9 2.3

6 2.9

3 3.5

3.4

2 3.8

9

4.9

2

6.9

1

8.5

1

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

EP

S

CSL

8.5

5

11.1

2

14.3

9

18.1

5

21.7

9

25.1

2

29.5

8 35.3

8 41.2

5 49.4

4 57.6

2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1

EP

S

HDFC BANK

0.8

7

1.0

5

1.4

4

1.6

5

2.2

7

2.9

7 4.1

1

6.3

2

7.0

4 8.4

2

12.4

9

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

EP

S

TENCENT

Sources: Bloomberg

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• Saigon Brewing Company (SABECO) is Vietnam’s leading

brewery with 43% market share*

• Erstwhile SOE acquired by Thai Bev in Aug 2018

• “Transformation Team”: Professional management from

ThaiBev, previously from Heineken-owned Asia Pacific

Breweries, takes over former SOE

• Valuations are extremely attractive:

SABECO REVENUE GROWTH

Market Cap

(USD, Billions) 2021 PE 2022 PE

Budweiser APAC 41.8 42.1 35.6

China Resources 26.9 51.3 39.0

Tsingtao Brewery 15.9 39.6 33.7

Heineken Malaysia 1.9 29.4 24.7

Carlsberg Malaysia 1.7 27.8 23.6

Multi Bintang 1.3 17.8 14.7

Average 34.7 28.5

SABECO 4.7 20.1 17.7

0

10

20

30

40

50

Sabeco2018

Sabeco2019

Sabeco2020

HeinekenMalaysia

(5 year avg2016-20)

San Miguel(4 year avg2017-20)

Multi Bintang(5 year avg2016-20)

% M

AR

GIN

SABECO MARGIN POTENTIAL

SABECO - Beer as margin expansion

Sources: CCAM Estimates; Bloomberg

*Source Statista November 2019

0

5000

10000

15000

20000

25000

30000

35000

40000

2014 2015 2016 2017 2018 2019 2020 2021E

SA

LE

S (

VN

D,

Billio

ns)

10

7,3

86

9,0

99

9,9

79

11,5

32

14,3

19

14,3

85

13,7

05

14,1

11

16,3

55

18,3

54

19,9

07

21,1

11

2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

R&

D (

US

D)

SAMSUNG - R&D

2,0

41

1,6

60

3,1

48

3,8

45

3,0

43

2,7

60

2,9

95

5,9

92

6,4

19

3,1

39

3,8

27

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

EP

S

SAMSUNG - EPS

• Samsung Electronics does not produce steadily

growing earnings figures

• However, continual reinvestment has forced many

competitors to fold

• Market rewards technology leadership regardless of

earnings stability

Samsung Electronics – Building barriers through R&D leadership

Source: Bloomberg as at April 2021

SAMSUNG SHARE PRICE

2009 TO DATE

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• Nickel Mines is a metals processing company in

partnership with Tsingshan Group

• Steady ramping up of capacity to address surging

demand results in excellent cashflows regardless of

nickel price volatility

Nickel Mines – “ Please mine more nickel” Elon Musk, August 2020

COST ADVANTAGES FOR NICKEL MINES’3

OPERATION

NICKEL DEMAND BY BATTERY APPLICATION

BASED ON EXPECTED PRODUCT SALES

2020-2040 (T, NI)1

NAMEPLATE CAPACITY SET TO DOUBLE FROM 20222

Sources: 1.Roskill 2020. 2 & 3. Nickel Mines 2021.

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Sources of Alpha and Risk

• Alpha generation - Portfolio returns are focused on:

• earnings growth

• positive earnings revisions

• and not reliant on earnings multiple expansion

• Risk factors - Key risks to the investment theses for portfolio holdings include:

• disruption through irrational competition or disruptive technology

• adverse earnings revisions or external influences on cashflow generation

• Valuation - Discounted cashflow metrics are primarily used and underlying inputs are stressed to afford a

margin of safety

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• A concentrated, high conviction, Asia Pacific ex Japan portfolio

• Bottom-up stock selection, benchmark agnostic and high active share

• Predominantly large cap with a bias towards quality growth

• Sector leaders in areas of structural growth with high barriers to entry.

• Proven track record of alpha generation

CC Asia Alpha Fund - Summary

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Cumulative performance 1 mth 3mth 1 yr 3 yrs Inception

USD B

ISIN IE00B1GCTH624.18 1.45 56.72 40.19 131.37

Benchmark M1PFJ 3.39 1.52 48.22 33.29 88.78

Relative perf +0.79 -0.07 +8.50 +6.90 +42.59

All performance details shown are net NAV to NAV percentage returns with gross income re-invested. You should remember that past performance is not a guide to the future. The price of

investments and the income from them may fall as well as rise and investors may not get back the full amount invested. Investments denominated in foreign currencies expose investors to

the risk of loss from currency movements as well as movements in the value, price or income derived from the investments themselves; and some of the investments referred to herein or

underlying investments undertaken by issuers may be derivatives and may involve different and more complex risks as compared to listed or other securities. All figures quoted are in

USD.

The benchmark performance is that of the MSCI ac Pacific ex Japan index in US$ (MXPFJ for the period to 31.08.2013, M2PFJ for the period from 01.09.2013 to 09.10.2013 and M1PFJ

from 10.10.2013). NB Month end returns for March 2018, April & May 2007 & August 2015 were calculated by CCAM. US$ B class and Benchmark performance since 27.06.2007, the

inception date for US$ B class.

Source: CCAM, Bloomberg. Independent returns are calculated daily by Northern Trust International Fund Administration Services (Ireland) Limited post 1.12.2009 and The Bank of New

York Mellon Corp & Northern Trust International Fund Administration Services (Ireland) Limited pre 1.12.2009.

All figures shown as at 30th April 2021.

Discrete Annual Performance full calendar

years

2020 2019 2018 2017 2016

USD B

ISIN IE00B1GCTH6230.85 29.02 -21.62 43.57 0.80

Benchmark M1PFJ 23.19 20.13 -14.44 37.10 7.47

Relative perf +7.66 +8.89 -7.18 +6.47 -6.67

Performance (USD B Share Class)

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Appendix

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Identify sustainability of

cashflow, barriers to entry and

management strategy

Determine management

execution capability

Highest conviction = strong

earnings growth with

sustainable high RoA

1200 + Listed Companies

Eliminate ‘pretenders’Objectives

Low RoA, variable cashflow,

heavily indebted companies

Lack of sustainable

competitive advantage

Poor corporate governance

or shareholder awareness

Low earnings visibility,

unproved business models.

25-35 Positions

StockSelection

Management Meetings

Qualitative Analysis

Quantitative Screening

Investment Process

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Note 1: Referenced as Undiscovered GEMS and Special Situations in Prospectus

Stock Selection Methodology

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Portfolio positioning – High conviction & index agnostic

HoldingFund

%

TSMC 6.6

Samsung Electronics 6.5

AIA Group 5.3

China Merchants Bank 5.1

Nickel Mines 4.8

Tencent Holdings 4.7

Saigon Beer 4.5

Ping An Insurance Group 4.4

DDH1 4.2

Alibaba 3.6

Total 49.7

Total Number of Holdings 29

Top 10 Holdings

SectorFund

%

Financials 24.9

Consumer, non-cyclical 21.9

Communications 16.8

Basic Materials 11.0

Industrial 9.0

Technology 6.6

Consumer, cyclical 5.8

Energy 4.2

Diversified 0.0

Cash & other 0.0

Total 100.2

Sector Positioning

CountryFund

%

Hong Kong & China 37.3

India 19.5

Australia 18.8

Taiwan 6.6

South Korea 6.5

Vietnam 4.5

Indonesia 3.6

Bangladesh 3.4

Singapore 0.0

Cash & Other 0.0

Total 100.2

Country Positioning

Source: CCAM, all data as at 31 March 2021

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Angus Coupland, CIO – Asia

2005 – Date Coupland Cardiff Asset Management LLP

1999 – 2005 JF Asset Management Ltd, Hong Kong

1997 – 1999 JF Asset Management Ltd, Sydney

Bachelor of Economics degree attained at the University of Sydney

Rory Dickson, Investment Adviser

2010 – Date Coupland Cardiff Management (Singapore) Pte Limited

2005 – 2010 Arisaig Partners (Asia), Singapore

1997 – 2005 Asia Capital Management Ltd, Hong Kong

1996 Macquarie Bank, Sydney

1992 – 1995 Arthur Andersen, Scotland

Member of Institute of Chartered Accountants of Scotland

Bachelor of Commerce honours degree attained at the University of Edinburgh

Andy Draycott, Portfolio Manager/Analyst


2006 – 2008 Macquarie Securities, HK

2004 – 2006 Merrill Lynch, HK

2001 – 2004 TT Management, UK

BA Hons Politics attained at Exeter University

Abhinav Mehra, Investment Adviser/Analyst

2016 – Date Coupland Cardiff Management (Singapore) Pte Limited

2015 – 2016 DSP Merrill Lynch, India

2011 – 2015 Motilal Oswal Securities, India

MBA (Finance) NMIMS University, Mumbai

B Tech (Electronics & Telecommunication) MPSTME, NMIMS University, Mumbai

Jonathan Dobson, CIO – Japan


1994 – 2006 JF Investment Management (Tokyo and London)

1992 – 1994 JF Securities (Tokyo)

1990 – 1992 CSFB

MA French & Italian degree attained at the University of Oxford

Richard Aston, Portfolio Manager


2000 – 2011 JP Morgan (Tokyo and London)

1992 – 2000 Axa Investment Management

1986 – 1992 GEC

MA Engineering degree attained at the University of Cambridge

Megumi Takayama, Analyst – Japan


2017 – 2018 The Norinchukin Bank ( London)

2015 – 2016 Nomura International Plc (London)

2011 – 2014 SMBC Nikko Capital Markets (London)

MA Japanese studies degree attained at SOAS, the University of London

MPhil European studies degree attained at the University of Cambridge

BA Economics degree attained at the Nihon University

Richard Cardiff, Chief Executive Officer


1995 – 2005 Fleming/JF Asset Management, JPMorgan AM UK Ltd

1991 – 1995 GT Management Ltd

1986 – 1990 Hill Samuel Private Client Management Ltd

1984 – 1986 Tagg Financial Management Plc

Deborah Boyce, Chief Operating Officer


2000 – 2003 Lehman Brothers Inc.

1991 – 2000 Morgan Stanley Int Ltd, London, Hong Kong & New York

1990 – 1991 Coopers & Lybrand.

B.Sc. Management Science degree attained at the University of Loughborough

Tanya Farrell, General Counsel & Chief Compliance Officer


2013-2014 Marathon Asset Management LLP

1999 -2012 Sloane Robinson LLP

1993-1999 Financial Services Compensation Scheme.

1989-1993 Hesketh Henry Solicitors and Barristers

BCom (Accounting)/LLB attained at University of Auckland

Admitted as a solicitor: England and Wales (1996) and New Zealand (1990)

Fellow of the Chartered Institute for Securities and Investment

Fellow of the Institute of Chartered Secretaries and Administrators

Team Biographies

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Contact Details

Coupland Cardiff Asset Management LLP

31-32 St.James’s Street

London SW1A 1HD

Richard Cardiff

Email: [email protected]

Office: +44 207 321 3489

James Cameron


Office: +44 207 321 3483

Alvin Lizarondo


Office: +44 7425 610 256

mailto:[email protected]



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DisclaimerThis document does not purport to provide investment advice and should not be relied on for the purposes of any investment decision. It is not an offer to sell or the solicitation of an offer to purchase shares in CC Asia Alpha Fund (a sub-fund

of Coupland Cardiff Funds plc, an open-ended investment company with variable capital incorporated in Ireland and authorised by the Central Bank of Ireland as a UCITS pursuant to the UCITS Regulations). Any such offer or solicitation can

only be made by means of the formal subscription documentation and the related Prospectus dated 12th May 2020 (and Addendum dated 9th March 2021) together with the CC Asia Alpha Fund Supplement dated 12th May 2020 (together the

Prospectus) and only in those jurisdictions where it is permitted by law.

Coupland Cardiff Asset Management LLP (CCAM) as investment manager, has discretion in managing the investments of the CC Asian Alpha Fund (the “Fund”) and selects equities through research using fundamental, bottom-up stock

selection techniques. The Fund is actively managed, which means that CCAM has discretion over the composition of the Fund’s portfolio, subject to the Fund’s stated investment objective and policy. Accordingly, although the performance fee

of the Class A, Class B, Class C and Class I shares is calculated in reference to the Benchmark (as defined in the Prospectus), CCAM will select the Fund’s investments based entirely on its stock selection techniques, irrespective of whether

such stocks are components of the Benchmark.

In particular this document is not intended for distribution in the United States or for the account of U.S. persons (as defined in Regulation S under the United States Securities Act of 1933, as amended (the Securities Act)) except to persons

who are "accredited investors" (as defined in Rule 501(a) under the Securities Act). Coupland Cardiff Asset Management LLP (CCAM) is not registered with the United States Securities and Exchange Commission as an investment

adviser. CC Asia Alpha Fund will not be registered under the Securities Act or the securities laws of any of the states of the United States and shares may not be offered, sold or delivered directly or indirectly into the United States, or to or for

the account or benefit of any US person, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of such securities laws. The shares will be subject to restrictions on transferability and resale. CC

Asia Alpha Fund will not be registered under the United States Investment Company Act of 1940. An investment in CC Asia Alpha Fund is speculative and is not suitable for all investors. It is intended for investors who are willing to bear the

risks of the investment which are described in the Prospectus. PROSPECTIVE INVESTORS SHOULD REVIEW THE PROSPECTUS, INCLUDING THE RISK FACTORS THEREIN, BEFORE MAKING A DECISION TO INVEST.

The representative in Switzerland is 1741 Fund Solutions Ltd, Burggraben 16, CH-9000 St. Gallen. The Swiss Paying Agent in Switzerland is Tellco Ltd, Bahnhofstrasse 4, CH-6430 Schwyz. The prospectus, the articles of association, the Key

Investor Information Documents, as well as the annual and semi-annual reports may be obtained free of charge from the representative. In respect of the units distributed in and from Switzerland, the place of performance and jurisdiction is the

registered office of the representative.

This document and its contents are confidential and must not be copied or otherwise circulated to any other person. Investments referred to herein may not be quoted on an exchange and even if so quoted may carry the risk of not being readily

realisable by way of sale, exchange or other method of disposal. Certain assumptions may have been made in the calculations and analysis in this document which have resulted in returns detailed herein. No representation is made that

returns detailed herein will be achieved in the future. Some of the investments referred to herein or underlying investments undertaken by issuers may be derivatives and may involve different and more complex risks as compared to listed or

other securities.

This document is based upon information which Coupland Cardiff Asset Management LLP considers reliable, but no representation is made that it is accurate or complete and nor should it be relied upon as such. Past performance is no

guarantee of future performance. All information and research material provided herein is subject to change and this document does not purport to provide a complete description of the funds, securities or other investments or markets referred

to or the performance thereof. All expressions of opinion are subject to change without notice and do not constitute advice and should not be relied upon.

Copies of the Prospectus and the latest annual report and any subsequent half-yearly report of the Company in English, may be obtained free of charge from Administrator, Northern Trust International Fund Administration Services (Ireland)

Limited, George's Court, 54 – 62 Townsend Street, Dublin 2 or the Investment Manager, Coupland Cardiff Asset Management LLP, 31-32 St James's Street, London SW1A 1HD. Tel : 0207 321 3470.

This document is issued for the purposes of section 21 of the Financial Services and Markets Act 2000 by Coupland Cardiff Asset Management. LLP, 31-32 St. James’s Street, London SW1A 1HD, who are authorised and regulated by the

Financial Conduct Authority.