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NAV total return of 36% in 9M21

HgCapital Trust 13 December 2021 Update
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HgCapital Trust

NAV total return of 36% in 9M21

Investment trusts
Private equity funds

13 December 2021

Price

419p

Market cap

£1,892m

NAV

£1,848m

NAV*

414.8p

Premium to NAV

1.0%

*As at 30 September 2021.

Yield

1.2%

Ordinary shares in issue

451.7m

Code/ISIN

HGT/GB00BJ0LT190

Primary exchange

LSE

AIC sector

Private Equity

52-week high/low

425.5p

298.0p

414.8p

299.5p

10.7%

£303m

*As at 30 September 2021. **Liquid resources at 10 December 2021.

Fund objective

HgCapital Trust’s investment objective is to achieve long-term capital appreciation by indirectly investing in unquoted companies. It does this through its investments in fund partnerships, mostly in the UK and Europe.

Bull points

Focus on resilient software and services companies.

Solid top- and bottom-line performance of portfolio companies.

Experienced investment team with a strong long-term track record.

Bear points

High valuations in the software and services sector.

Ample dry powder in the market translating into strong competition for quality assets.

A potential increase in SME defaults may reduce net client additions across HGT’s portfolio.

Analysts

Milosz Papst

+44 (0)20 3681 2519

Richard Williamson

+44 (0)20 3077 5700

HgCapital Trust is a research client of Edison Investment Research Limited

HgCapital Trust (HGT) delivered a strong NAV total return of c 36% in the first nine months of 2021, including c 12% in Q321, driven primarily by double-digit earnings growth across the portfolio (LTM EBITDA for top 20 holdings up 29% yoy). Its transaction activity remains high, with the volume of completed and announced investments and realisations at £378m and £204m, respectively in 2021 so far (vs £403m and £364m in the record-high 2020). HGT’s coverage ratio was a healthy c 85% at 10 December 2021 and its liquidity position has been supported with tap equity issues (c £126m in 2021 to 10 December) and a £200m credit facility, £45m of which was undrawn as at 15 November 2021.

Robust investment and realisations activity in 2021 to date

Source: HgCapital Trust, Edison Investment Research. Note: *Last column with transactions and realisations announced to 13 December 2021 and liquid resources as % of NAV as at 10 December 2021.

Why invest in HgCapital Trust now?

HGT’s portfolio companies continue to benefit from the ongoing digitalisation of the economy, accelerated recently by the pandemic. HGT’s transaction activity has been high in 2021 to date and Hg (HGT’s manager) expects further investment and liquidity events over the next 12 months. While valuations in the tech sector remain demanding, we believe that top sponsors such as Hg may still benefit from their strong financial positions, extensive deal origination networks, in-house value creation teams and the ability to pursue a ‘buy-and-build’ strategy.

The analyst’s view

The listed software and services sector has remained supportive for HGT’s portfolio. That said, HGT’s NAV total return (TR) in 2021 to end-September was largely driven by earnings growth across portfolio companies and the company continues to report healthy uplifts on exits to end-2020 carrying values (c 47% on average in 2021 so far vs c 50% in FY20), suggesting a relatively conservative portfolio valuation policy. We believe that its focus on resilient sectors and strong NAV TR over the short, medium and long term to end-September compared to its peers has been reflected in its shares trading in line with NAV (vs a c 20% average discount for PE peers although in line with HGT’s historical trading).

Earnings of portfolio holdings drive NAV TR in 9M21

HGT’s net asset value (NAV) TR was c 36% over the nine months to end-September 2021 (9M21), which is ahead of the c 14% rise of the FTSE All-Share Index and the 21% y-o-y increase of the listed private equity index LPX Europe NAV (rebased to sterling) over the same period. It included a strong NAV TR of 11.6% in Q321, driven primarily by double-digit earnings growth across portfolio companies (Exhibit 1). HGT’s top 20 investments (representing c 81% of HGT’s portfolio value, excluding one investment valued on a basis other than earnings) delivered last 12 months (LTM) EBITDA growth of 29% y-o-y at end-September 2021 (versus 27% at end-June 2021) and LTM sales growth of 25% y-o-y (20%), according to the manager. The average LTM EV/EBITDA for the top 20 investments increased to 26.3x at end-September 2021 (with a debt to EBITDA ratio of 6.5x) from 25.0x at end-June 2021 and 22.1x at end-2020, contributing to its 9M21 NAV TR, although to a lesser extent.

Exhibit 1: Changes in HGT’s portfolio valuation in H121 and Q321

Source: HgCapital Trust. Note: Net acquisitions is difference between acquisitions and disposals at last carrying value.

HGT’s longer-term NAV TR, which is the best indication of private equity (PE) fund performance, has been visibly above the FTSE All-Share and LPX Europe NAV Index, with the three-year NAV TR at c 29% pa (vs c 3% for FTSE All-Share and 12% for LPX Europe Listed Private Equity Index) and the five-year NAV TR to end-September 2021 at c 24% pa (c 6% and c 16%, respectively). The company also posted a materially higher NAV TR to end-September 2021 over one, three, five and 10 years compared to its peer group average (Exhibit 2). Our group includes direct private equity investors (Apax Global Alpha, NB Private Equity, Princess Private Equity, Altamir and Oakley Capital Investments) and fund of funds (HarbourVest Global Private Equity, Pantheon International, ICG Enterprise Trust, Standard Life Private Equity and BMO Private Equity). While we included Apax Global Alpha, we note that in addition to private equity, it had a relatively high exposure to private debt investments (c 24% of its portfolio at end-September 2021) which have a lower expected return than private equity investments.

Exhibit 2: HGT’s performance to 30 September 2021

Price, NAV and index total return performance, five years rebased

Price, NAV and index total return performance (%)

Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.

Exhibit 3: Selected peer group at 10 December 2021*

% unless stated

Market cap £m

NAV TR
1 year

NAV TR
3 year

NAV TR
5 year

NAV TR
10 year

Ongoing
charge

Perf.
fee

Discount
(cum-fair)

Net
gearing

Dividend
yield

HgCapital Trust

1,892.4

40.4

113.0

193.0

369.4

1.6

Yes

1.0

100

1.2

HarbourVest Global Priv Equity

2,188.2

53.7

91.0

147.3

297.3

1.3

Yes

(15.2)

100

0.0

Pantheon International

1,808.5

31.7

54.5

101.1

242.5

1.2

Yes

(15.0)

100

0.0

Apax Global Alpha

1,114.8

37.6

76.0

96.0

N/A

1.5

Yes

(12.4)

100

5.0

ICG Enterprise Trust

871.5

37.5

57.2

111.3

213.3

1.5

Yes

(16.5)

100

2.0

NB Private Equity Partners

846.9

60.6

72.5

121.8

335.4

2.2

Yes

(18.5)

108

2.9

Standard Life Private Equity

827.1

28.5

61.8

125.9

203.4

1.1

No

(11.9)

100

2.5

Princess Private Equity

825.8

19.6

50.4

93.1

193.1

1.8

Yes

(11.1)

100

4.5

Altamir

743.3

18.5

75.9

104.0

267.4

3.2

No

(28.5)

100

4.6

Oakley Capital Investments

667.1

25.6

77.0

117.4

159.7

2.5

Yes

(16.1)

100

1.2

BMO Private Equity Trust

359.0

57.1

79.0

119.3

247.0

1.3

Yes

(12.1)

112

3.6

Simple average (excl. HG Capital)

782.0

30.6

67.5

112.4

231.8

2.1

N/A

(17.2)

102

3.1

HGT rank in peer group

2

3

1

1

1

5

N/A

1

2

8

Source: Morningstar, Edison Investment Research. Note: TR = total return. Net gearing is total assets less cash and equivalents as a percentage of net assets (100 = ungeared). *12-month performance based on end-September 2021 or earlier latest available ex-par NAV: HGT, HarbourVest Global Private Equity, Pantheon International, Apax Global Alpha, NB Private Equity Partners, Standard Life Private Equity, Princess Private Equity, Altamir, BMO Private Equity Trust – end-September 2021; ICG Enterprise Trust – end-July 2021; Oakley Capital Investments – end-June 2021.

HGT is currently trading broadly in line with its NAV, which is consistent with its historical trading (the average discount to NAV was c 2% over a period of three years to 10 December 2021). This compares with its peers’ double-digit discounts to NAV, which are more common levels for listed PE investment companies. We believe the fact that HGT is trading close to NAV has been linked to its focus on the resilient software and services sector coupled with its strong track record. In the past, HGT’s stock has only occasionally moved into double-digit discount territory, which has usually coincided with major UK stock market corrections, including the March 2020 market crash triggered by the COVID-19 pandemic, following which, however, the discount to NAV closed relatively quickly.

Exhibit 4: Share price discount to NAV over five years (%)

Source: Refinitiv, Edison Investment Research

Another year of robust transaction activity

HGT completed investments with a total volume of c £277m in 9M21 (or c 21% of the opening NAV) versus £403m in the record-high 2020 (c 39% of the opening NAV), including c £223m deployed in new companies and c £52 in existing portfolio holdings. Post end-Q321, the company announced investments with a total volume of c £119m, which we present in Exhibit 5 along with its major investments completed in Q321 (c £112m in total).

Exhibit 5: HGT’s investments in Q321 and post quarter end

Completion of transaction

Company

Investment type

Amount invested on behalf of HGT**
(£m)

Business profile

Q321

insightsoftware

New

54.6 (7.1)

Global provider of enterprise software solutions for the ‘office of the CFO’

Q321

Managed Markets Insight & Technology

New

18.5

Provider of a platform, insights and consulting services to move therapies from pipeline to patients

Q321

Riskalyze

New

15.9 (6.8)

Risk-centric wealth management platform serving financial advisors, enterprises and asset managers

Q321

Sovos

Follow-on

10.4

Global provider of tax compliance software solutions

Q321

Litera

Follow-on

5.0

Provider of innovative technology solutions to legal organisations

Q321

Visma

Follow-on

4.6

Provider of business-critical software to private and public companies in Europe

Q321

Gossler, Gobert & Wolters Gruppe

Follow-on

2.0

Property & casualty focused insurance broker principally serving SMEs in the DACH region

N/A*

HHAeXchange

New

24.0

Software-as-a-service platform that improves patient outcomes, drives operational efficiency and increases compliance across the homecare ecosystem

N/A*

Serrala

New

24.0

Global financial automation and B2B payments software company

N/A*

Litera

Follow-on

28.0

Provider of innovative technology solutions to legal organisations

N/A*

BrightPay/Relate Software

Follow-on

6.6

Software company serving payroll and accounting bureaus and SMEs across the Republic of Ireland and the United Kingdom

N/A*

Revalize

New

18.7

Provider of sector-specific revenue operations software for manufacturers, their distributors and their specifiers

N/A*

Pirum Systems

New

9.4

Provider of post-trade automation and collateral management technology for the global securities finance industry

N/A*

Fonds Finanz

New

8.0

Tech-enabled financial intermediary pool in the German insurance sector

Source: HgCapital Trust. Note: *Transactions signed and in closing. **Amount of co-investment (included in the total amount invested) in brackets.

Realisations reached a solid c £169m in 9M21 (or c 13% of the opening NAV), compared with the record-high £364m in 2020 (c 35%). This included c £87m in Q321 alone, most notably from the full exits from Allocate (£50.5m) and Achilles (£24m) as well as the partial exit from Evaluate (£11.5m). These transactions generated strong uplifts to end-December 2020 valuations of 48%, 33% and 94%, respectively. Post period end, HGT announced a £35m realisation from BrightPay at a 77% uplift to its end-December 2020 valuation. The average uplift on the major realisations in 2021 to date was a very healthy 47% (Exhibit 6), broadly in line with the 50% in FY20 and ahead of the still robust 27% over the past 10 years based on 56 realisations, according to the manager. HGT achieved a robust 2.9x multiple of cost and 34% gross internal rate of return on the realisations in 2021 ytd.

We note that HGT’s investment and realisation volume in 2021 so far include two transactions that should be considered partial roll-overs: a c £21m exit from TeamSystem (by Hg Genesis 6 Fund) and a c £35m exit from BrightPay (by Transition Capital), coupled with a c £14m re-investment in the former (through Hg Genesis 8 Fund) and a c £7m re-investment in the latter (through Hg Mercury 3 Fund).

Exhibit 6: Uplifts to book value on major exits in 2021 so far

Source: HgCapital. Note: Uplifts from 2021 deals are versus book value at end-2020.

The manager expects further investment and liquidity events over the next 12 months. In a typical 12-month period, it makes between eight and 16 new platform investments and seeks to deliver a similar number of liquidity events each year, including sales or partial sales of portfolio companies and refinancings (HGT has completed or announced 22 investments and nine realisations in 2021 to date). Hg will maintain its cautious and selective approach and focus on capitalising on situations where it has a specific angle and many years of knowledge of the business and its end-market, as well as strong relationships with founders and management teams. Bolt-ons and strategic M&A within the portfolio remain a key focus.

Strong liquidity position assisted by tap equity issues

HGT’s coverage ratio (calculated as the sum of liquid resources and undrawn bank facility divided by unfunded commitments) was a healthy c 85% on 10 December 2021, compared to 60% at end-FY20 and c 55% on average between FY16 and FY20. Outstanding commitments stood at £410m and are likely to be invested over the next four to five years. In 2021, HGT committed to invest c US$125m in junior debt financings across Hg portfolio companies over the next three years. The manager highlights that these investments have an attractive risk and return profile and are an effective means to manage liquidity on HGT’s balance sheet. Liquid resources (adjusted for all announced transactions and equity raised via tap issuance) stood at £303m as at 10 December 2021 and c £45m of its £200m revolving credit facility remained undrawn upon the release of the Q321 report on 15 November 2021. HGT’s liquidity position has been additionally supported with tap equity issues, which totalled c £100m in 9M21 (vs £25m in total in 2020) and c £26m between end-September 2021 and 13 December 2021, according to our calculations. We note that a new block listing facility of c 21m shares (vs c 446m shares outstanding on 15 November 2021) was admitted to trading on 16 November 2021, which the manager plans to use to satisfy investor demand that cannot otherwise be met from the secondary market.

Exhibit 7: HGT’s historical coverage ratio

Source: HgCapital Trust, Edison Investment Research. Note: The last column shows outstanding commitments, and liquid resources on 10 December 2021 (including all transactions announced to this date, and equity raised via tap issuance) and undrawn credit facility amount upon the release of its Q321 report on 15 November 2021.

General disclaimer and copyright

This report has been commissioned by HgCapital Trust and prepared and issued by Edison, in consideration of a fee payable by HgCapital Trust. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by HgCapital Trust and prepared and issued by Edison, in consideration of a fee payable by HgCapital Trust. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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