Rigorous, long-term approach to stock-picking

Jupiter UK Growth Investment Trust 14 May 2018 Review
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Jupiter UK Growth Investment Trust

Rigorous, long-term approach to stock-picking

Investment trusts

14 May 2018

Price

339.0p

Market cap

£65.9m

AUM

£84.4m

NAV*

341.0p

Discount to NAV

0.6%

NAV**

348.3p

Discount to NAV

2.7%

*Excluding income. **Including income. As at 11 May 2018.

Yield

2.1%

Ordinary shares in issue

19.4m

Code

JUKG

Primary exchange

LSE

AIC sector

UK All Companies

Benchmark

FTSE All-Share

Share price/discount performance

Three-year performance vs index

52-week high/low

342.5p

299.0p

352.0p

305.5p

**Including income.

Gearing

Gross*

12.5%

Net*

12.0%

*As at 30 April 2018.

Analysts

Helena Coles

+44 (0)20 3077 5700

Mel Jenner

+44 (0)20 3077 5720

Jupiter UK Growth Investment Trust is a research client of Edison Investment Research Limited

Jupiter UK Growth Investment Trust (JUKG) aims to generate long-term capital growth, primarily through investing in UK-listed equities. With few investment constraints, the manager, Steve Davies focuses on fundamental stock selection to build a concentrated portfolio of around 35 investments. Active engagement with companies’ chairmen and non-executive directors is a key part of the investment process, and contributes significantly towards the manager’s level of conviction. Davies believes stock-market drivers are changing as several big investment themes come to an end. He expects stock-picking to come back into focus and JUKG should be well-placed in this environment. On 30 November, the rollover of Jupiter Dividend & Growth Trust (JDG) into JUKG resulted in an increase in assets of £24.6m and the issue of 7.8m new shares.

12 months ending

JUKG*
share price (%)

JUKG*
NAV (%)

Blended benchmark^ (%)

FTSE All-Share (%)

FTSE All-World (%)

30/04/14

19.0

9.8

9.6

10.5

6.8

30/04/15

10.5

10.6

10.4

7.5

18.0

30/04/16

(3.9)

(5.9)

(3.4)

(5.7)

0.5

30/04/17

14.4

17.2

20.1

20.1

31.0

30/04/18

(4.6)

(1.7)

8.2

8.2

7.5

Source: Thomson Datastream, Jupiter UK Growth Trust. Note: All % on a total return basis in GBP. *JUKG track record is for Jupiter Primadona Growth (JPG)/Jupiter Global Trust until 18 April 2016. ^Blended benchmark is 75% FTSE All-Share and 25% FTSE World ex-UK until 17 April 2016, and FTSE All-Share thereafter.

Investment strategy: Bottom-up, active engagement

The manager’s investment approach is rigorous, involving detailed fundamental analysis of financial statements, as well as spending time with companies’ management teams and engaging with their board members. A relatively concentrated portfolio of c 35 stocks allows this labour-intensive approach. A new analyst, James Moir, dedicated to the UK growth strategy, adds significant research capacity for JUKG.

Market outlook: Opportunities for contrarians

UK equities have performed strongly since the beginning of 2016 before peaking in January 2018. However, compared with global equities, the UK performance has lagged meaningfully, while a recent Bank of America Merrill Lynch (BAML) Global Fund Manager Survey shows allocations to UK equities are at a post-global financial crisis low. Following a modest retreat in UK indices, and strong earnings momentum, company valuations are looking less stretched compared with a few months ago. This environment could present interesting opportunities for contrarian, long-term investors.

Valuation: Nil-discount policy

JUKG consistently trades close to its NAV; at 11 May its discount to cum-income NAV was 2.7%. It is one of just two trusts in its sector to follow a nil-discount policy, introduced in 2014. The dividend yield of 2.0% is average among peers.

Exhibit 1: Trust at a glance

Investment objective and fund background

Recent developments

Jupiter UK Growth Investment Trust aims to achieve capital appreciation by holding predominantly listed investments. It invests in a concentrated portfolio made up of the manager’s best ideas from any sector, with typically a bias towards FTSE 100 stocks. The trust was known as Jupiter Global Trust from November 2015 until April 2016 and was previously Jupiter Primadona Growth Trust. It adopted its new name, fund manager, investment strategy and FTSE All-Share benchmark on 18 April 2016.

29 March 2018: Interim report for six months ending 31 December 2017. NAV TR-0.7% versus benchmark FTSE All-Share index TR +7.2%.

30 November 2017: Announcement that JUKG will acquire £24.6m of assets from Jupiter Dividend and Growth Trust, and issue 7.8m new shares in consideration.

20 September 2017: Annual report for 12 months ending 30 June 2017. NAV TR +26.7% versus benchmark FTSE All-Share index TR +18.1%.

Forthcoming

Capital structure

Fund details

AGM

November 2018

Ongoing charges

1.26%

Group

Jupiter Unit Trust Managers

Annual results

September 2018

Net gearing

12.0%

Manager

Steve Davies

Year end

30 June

Annual mgmt fee

0.5% (see page 7)

Address

The Zig Zag Building, 70 Victoria St, London SW1E 6SQ

Dividend paid

Annually

Performance fee

Yes (see page 7)

Launch date

June 1972 (April 2016 for new strategy

Trust life

Indefinite

Phone

+44 (0) 20 3817 1000

Continuation vote

No

Loan facilities

£17m with Scotiabank

Website

www.jupiteram.com/JUKG

Dividend policy and history (financial years)

Share buyback policy and history (financial years)

Dividends, historically paid quarterly, have moved to a single annual dividend from FY17. Only three dividends were paid in 2014 owing to a change in dividend policy that year.

The board aims to maintain the share price close to NAV through the use of share buybacks and allotments. Allotments in 2018 include 7.8m new shares issued from the rollover of JDG into JUKG.

Shareholder base (as at 11 May 2018)

Portfolio exposure by geography, adjusted for net gearing (as at 30 April 2018)

Top 10 holdings (as at 30 April 2018)

Portfolio weight %

Company

Sector

30 April 2018

30 April 2017*

Legal & General

Financials

7.5

6.1

Lloyds Banking Group

Financials

7.4

7.1

Sirius Minerals

Basic materials

7.2

5.1

Barclays

Financials

6.5

6.6

International Consolidated Airlines

Consumer services

4.6

4.2

Taylor Wimpey

Consumer goods

4.6

4.5

Dixons Carphone

Consumer services

4.3

5.8

Experian

Industrials

4.2

3.6

Melrose Industries

Industrials

4.2

N/A

Talktalk Telecom

Telecommunications

4.1

3.7

Top 10 holdings

54.6

51.4

Source: JUKG, Edison Investment Research, Bloomberg, Morningstar. Note: *N/A where not in end-April 2017 top 10.

Market outlook: Low consensus expectations

Equity markets globally performed strongly since the beginning of 2016, and peaked in January 2018. As shown in Exhibit 2, although UK equities also appreciated meaningfully during this period, the FTSE All-Share index significantly lagged the FTSE World ex-UK index. A slight pullback in UK equities, combined with positive earnings momentum has helped moderate valuations. The UK index’s PE multiples are around 12% above its 10-year average, but on a price-to-book measure, valuations are only 85% of the 10-year average. Meanwhile, returns on equity have improved materially to 132% of the 10-year average, having become very depressed during the global financial crisis.

The significant divergence in performance between global and UK equities is reflected in very low asset allocations to UK equities. According to the proprietary BAML Global Fund Manager Survey (which surveys active investment managers globally), allocations to UK equities fell sharply following the announcement of the EU referendum and have continued to fall, currently at a post-global financial crisis low. This suggests global fund managers have very limited expectations for Brexit outcomes and the UK domestic economy. Such an environment could present interesting opportunities for investors with a contrarian, long-term approach.

Exhibit 2: Market performance and valuation

UK and rest of the world equity markets over 10 years (in GBP)

Valuation metrics of Datastream UK index

 

Last

High

Low

10-year
average

Last as % of
average

P/E 12 months forward (x)

13.8

15.7

7.4

12.2

112

Price to book (x)

1.4

2.5

1.2

1.7

85

Dividend yield (%)

3.7

6.6

2.7

3.5

104

Return on equity (%)

13.0

18.2

2.5

9.9

132

Source: Thomson Datastream, Edison Investment Research. Note: Index valuations at 7 May 2018.

Fund profile: Concentrated, high conviction

JUKG was launched in 1972 as the Jupiter Primadona Growth Trust (JPG) and was renamed the Jupiter Growth Trust in November 2015. In April 2016, the trust’s mandate changed from a UK and global growth to a UK growth strategy, and the trust was renamed to Jupiter UK Growth Investment Trust, and Steve Davies was appointed its new manager. JUKG largely mirrors the strategy of the £1.4bn Jupiter UK Growth Unit Trust, which has been managed by Davies since 2015 (he was deputy manager between 2009 and 2015).

The trust’s objective is to generate capital growth, primarily from investing in UK-listed equities. Its approach is bottom-up, seeking to build a concentrated portfolio of around 35 high-conviction stocks. There are relatively few investment constraints and the portfolio can diverge significantly from the FTSE All-Share index benchmark. In December 2017, James Moir joined as an analyst dedicated to the UK growth strategy. Moir brings considerable equities analysis experience and knowledge of the financials sector, having previously worked at UK Financial Investments, helping to oversee the UK government's holdings in Royal Bank of Scotland, Lloyds and UK Asset Resolution.

The fund manager: Steve Davies

The manager’s view: Environment is well-suited to JUKG

Davies believes the stock-market environment is changing. Over the past few years, UK equity performance has been driven by several big macroeconomic and political themes. Interest rates and stock market volatility (as measured by the US VIX index), have been unprecedentedly low for an extended period, and have started to rise. A weak sterling has been a benefit to large-cap multinationals and a reversal could present headwinds; and the manager expects China’s growth to slow, removing some of the upward pressures on commodity prices. This environment is “less forgiving” for UK equities, while politics may continue to be erratic. However, this is an environment well-suited to stock-picking, which is the essence of Davies’ investment approach.

As well as rigorous bottom-up analysis with a long-term view, active engagement with companies’ boards is also important. In addition to meeting the senior management teams of companies, Davies undertakes a continuous programme of engagement with chairmen and other board members to enhance his understanding of a company as well as add value through constructive two-way conversations. Davies cites GKN as an example of successful engagement helping an improved investment outcome. JUKG has held GKN for almost a decade, but more recently, its performance had been disappointing. Since early 2017, Davies has engaged with board members and the chairman, sharing his views on a number of issues including weak areas of management and a need to radically improve the group structure to drive profitability and cash flow. The manager believed the GKN stock price materially undervalued the company. A continued dialogue with the chairman, allowed for a better-informed view of the firm, supporting the decision to retain the GKN position despite a profit warning, and a difficult transition to a new CEO. This conviction has been rewarded as the takeover proposal by Melrose represents a significant uplift in GKN’s valuation.

Davies believes his approach to management engagement differentiates JUKG from many funds, and notes many chairmen have commented that it is rare to meet a fund manager, rather than a corporate governance specialist. The manager undertakes the engagements himself and addresses issues relevant for each particular company, aiming to meet the chairmen of all portfolio companies at least once a year, as well as other board members. This approach is a core part of the investment process and is possible because of the relatively small number of holdings on the portfolio, most of which are located in the UK.

Asset allocation

Investment process: Fundamental, defined criteria

The investment objective of the fund is to generate long-term capital growth. There are few constraints on sector, size and geography, allowing the manager to focus on a stock’s individual merit. An analyst by background, Davies undertakes detailed fundamental analysis of companies, and has a long investment horizon.

The manager looks for two broad categories of investments, recovery and growth (currently around 46% and 53% of the portfolio, respectively). Recovery stocks are those that have been ‘written-off’ or deemed ‘uninvestible’ by the market, but have catalysts (such as new management or industry restructuring) that could trigger a rerating. These companies typically trade at very attractive valuations, on P/E ratios below 10x (or below book value for banks) and free cash flow yields above 10%, with substantial upside potential. Growth stocks are companies that can deliver consistently strong growth over the medium term. Their earnings prospects are predictable, not speculative, and the companies are cash-generative, typically with free cash flow yields above 5%. The manager currently identifies five investment themes, which are reflected in the portfolio: UK domestics; financials; brands, leisure and travel; the connected world; and tomorrow’s world. The first two categories are relatively out-of-favour sectors, reflecting the manager’s contrarian bias. Tomorrow’s world is effectively ‘patient capital’. Fibre-optic network provider, City Fibre is one of these companies, held for nearly three years. It has recently agreed a takeover bid at a 93% premium to the pre-bid price.

Current portfolio positioning

As JUKG’s investment mandate is relatively unconstrained, seeking a concentrated number of high-conviction stocks, the portfolio typically diverges considerably from the index. As shown in Exhibit 3, the largest sector exposures in JUKG are to consumer services (39.0%) and financials (31.9%). Consumer services encompasses a broad range of companies, with the largest positions being British Airways owner, International Consolidated Airlines; Dixons Carphone; and Thomas Cook. The manager believes the squeeze on UK real wages over the past several years is coming to an end, which will support domestic consumption. However, he does not favour consumer goods, where multinationals and food manufacturers feature prominently. Davies regards these as bond proxies that have also benefited from a weak sterling, and could be adversely affected by rising interest rates.

UK banks are ‘self-help’ stories, as multi-year restructuring efforts start to bear fruit, while the worst of the pain from rising capital requirements and settlement for misconduct has passed. Lloyds is the largest bank stock in the portfolio (7.4%, Exhibit 1). It has returned to profit and a recent announcement of an increased dividend and share buyback suggests management’s confidence in its prospects. Barclays is also a top 10 holding and the manager believes its target for double-digit returns on tangible equity is achievable (and US tax changes are helpful). At which point, the stock could rerate meaningfully to trade at a premium to book value. Cyclically, financials are also natural beneficiaries of rising interest rates, which help improve net interest margins and boost profitability.

Exhibit 3: Portfolio sector exposure vs benchmark (% unless stated)

Portfolio end-April 2018

Portfolio end-
April 2017

Change (pp)

Index weight

Active weight
vs index (pp)

Trust weight/
index weight (x)

Consumer services

39.0

40.1

(1.1)

11.5

27.5

3.4

Financials

31.9

30.4

1.5

26.8

5.1

1.2

Industrials

13.4

8.6

4.8

11.0

2.4

1.2

Telecommunications

8.5

7.8

0.7

3.4

5.2

2.5

Basic materials

7.2

5.1

2.1

7.6

(0.4)

0.9

Consumer goods

6.4

8.1

(1.7)

13.9

(7.5)

0.5

Healthcare

3.5

1.8

1.7

8.6

(5.1)

0.4

Technology

2.7

4.3

(1.6)

0.9

1.8

2.9

Others, cash & gearing

(12.5)

(6.4)

(6.1)

16.4

(28.9)

(0.8)

100.0

100.0

100.0

Source: Jupiter UK Growth Investment Trust, FTSE Russell, Edison Investment Research

Although JUKG primarily invests in UK equities, it is permitted to own up to 10% in overseas equities. Following the purchases of three new positions, the international component of the portfolio was 9.7% as at end-March 2018. US-listed Yum China owns and operates KFC and Pizza Hut restaurants in China, and is a play on rising consumer spending and volume growth. The company currently has around 8,000 restaurants and plans to double this number by rolling out 500–600 additional outlets pa. The business is highly cash-generative and generates a free cash flow yield above 5%. Italy-listed Ferrari is also a volume growth story, targeting a doubling of profits by 2022 and a significantly improved cash flow. It currently sells around 8,000 cars pa, but has the capacity to produce 14–15,000, and its strong brand is well-placed to benefit from a growing number of high net worth individuals globally. Ferrari plans to broaden the range of its models; for example, introducing a four-seater, which could potentially appeal to the Chinese market where buyers of luxury cars prefer to be driven and sit in the back. The manager’s extensive research into Ferrari brought F1 (Formula 1) on to its radar screen. He views F1 as a highly profitable, yet poorly managed sport and, through the knowledge and insight gained from owning Manchester United, sees huge opportunities under new management (Liberty Media) to leverage off sponsorship and social media.

JUKG has not held oil & gas nor utility stocks for some time, as the portfolio consists of a concentrated number of stocks in which the manager has high conviction. The manager has been a longstanding bear on the price of oil, based on structural supply-side disruption as shale production rises, and weak discipline within OPEC to adhere to agreed quotas. A rapid adoption of electric cars and change in consumer habits to own fewer cars could also present demand-side disruption.

Performance: Shorter periods more relevant

As the current JUKG mandate was adopted in April 2016, the most useful performance periods to consider are one, three and six months, and one year. The trust’s total return NAV has lagged the benchmark over one year. Over the shorter periods of one, three and six months, performance has broadly mirrored its benchmark.

Exhibit 4: Investment trust performance to 30 April 2018

Price, NAV and benchmark total return performance, one-year rebased

Price, NAV and benchmark total return performance (%)

Source: Thomson Datastream, Edison Investment Research. Note: Three, five and 10-year performance figures annualised. Blended benchmark is 75% FTSE All-Share and 25% FTSE World ex-UK until 17 April 2016 and FTSE All-Share thereafter. SI = since JUKG strategy inception, 18 April 2016.

Exhibit 5: Share price and NAV total return performance, relative to indices (%)

 

One month

Three months

Six months

One year

Three years

Five years

Price relative to FTSE All-Share

(2.9)

(2.0)

(4.4)

(11.8)

(14.4)

(5.2)

NAV relative to FTSE All-Share

0.1

1.3

(0.8)

(9.1)

(11.6)

(9.5)

Source: Thomson Datastream, Edison Investment Research. Note: Data to end-April 2018. Geometric calculation.

Exhibit 6: NAV total return performance relative to benchmark over three years

Source: Thomson Datastream, Edison Investment Research

Discount: Nil-discount policy

The board introduced a nil-discount policy in February 2014, and as shown in Exhibit 7, this has been effective at maintaining the share price close to the trust’s cum-income NAV. The company aims to control the supply and demand for shares through new share issuance and share repurchases (subject to annual shareholder approval). During the first six months of FY18, 0.8m shares were repurchased at a cost of £2.7m.

Exhibit 7: Share price premium/discount to NAV (including income) over three years (%)

Source: Thomson Datastream, Edison Investment Research

Capital structure and fees

JUKG is a conventional investment trust with one class of share in issue. The reconstruction of Jupiter Dividend & Growth Trust on 30 November 2017 permitted its shareholders to roll over into JUKG, resulting in the issue of 7.8m new shares at 315p per share, increasing assets by £24.6m. There are currently 19.5m shares in issue.

The management fee consists of a base fee and a performance fee. The annual base fee is 0.50% of net assets up to £150m, reducing to 0.45% between £150m to £250m of net assets, and 0.40% above £250m. A performance fee is subject to a 2% hurdle over the FTSE All-Share index total return, above which JUKG is entitled to 15% of the outperformance, with a high watermark of the NAV at the end of the prior year. The combined total fee is capped at 2% of year-end adjusted net assets. As at end-December 2017, the ongoing charges ratio (excluding finance costs) was 1.26%. The trust has as £17m loan facility with Scotia Bank, which was fully drawn down as at end-April 2018 and net gearing was 12.0%.

Dividend policy and record

In April 2016, the board changed the dividend policy from paying quarterly dividends to one annual payment. The FY17 dividend of 7.0p per share maintained the aggregrate level of dividends paid in FY16 and represents a yield of 2.0%.

Peer group comparison

Exhibit 8 shows the 16 members of the AIC UK All Companies sector, with the addition of Jupiter UK Growth unit trust as a comparator. As the current JUKG mandate came into place in April 2016, the most relevant NAV total return performance period is one year, where it ranks 10th. It is one of the smallest trusts by market capitalisation, which contributes towards a relatively high ongoing charge compared with the group. As one of just two trusts in this sector that operates a zero-discount policy, JUKG has one of narrowest discounts to ex-par NAV among peers, while its dividend yield is around average.

Exhibit 8: AIC UK All Companies investment trusts as at 11 May 2018

% unless stated

Market cap/

fund size £m

NAV TR
1 year

NAV TR
3 year

NAV TR
5 year

NAV TR
10 year

Discount (ex-par)

Ongoing charge

Perf. fee

Net gearing

Dividend yield (%)

Jupiter UK IT

65.9

3.0

10.9

29.8

87.8

(0.4)

1.2

No

112

2.0

Jupiter UK Growth UT

1,287.5

2.9

3.1

39.8

94.9

N/A

1.8

No

N/A

1.1

Artemis Alpha Trust

138.1

12.9

26.9

29.7

77.3

(15.7)

0.9

No

106

1.3

Aurora

103.1

8.5

24.4

35.6

23.8

1.1

0.5

Yes

100

1.3

Crystal Amber

213.4

2.7

65.3

97.9

(8.5)

2.0

Yes

100

2.3

Damille Investments II

5.6

(20.2)

(14.6)

(13.0)

(46.5)

2.4

Yes

100

0.0

Fidelity Special Values

715.4

11.4

37.8

85.7

184.0

(1.3)

1.1

No

107

1.7

Henderson Opportunities

83.8

11.6

24.6

82.3

152.8

(16.7)

0.9

Yes

114

1.9

Invesco Perp Select UK Equity

67.4

2.8

24.3

70.0

184.7

(2.8)

1.0

Yes

117

3.5

JPMorgan Mid Cap

301.8

13.8

40.8

106.7

175.1

(2.9)

0.9

No

105

1.8

Keystone

242.3

2.7

12.6

46.2

140.7

(12.0)

0.6

Yes

111

3.1

Manchester & London

113.8

27.4

78.2

57.6

77.8

(5.0)

1.0

No

100

0.7

Mercantile

1,779.6

12.7

38.2

82.3

186.3

(10.9)

0.5

No

103

2.4

Sanditon Investment Trust

43.1

(3.6)

(3.4)

(10.5)

1.2

Yes

100

1.0

Schroder UK Growth

297.3

7.9

22.0

36.8

90.9

(5.0)

0.6

No

102

3.0

Schroder UK Mid Cap

204.4

9.8

31.1

73.2

212.2

(12.8)

0.9

No

102

2.3

Woodford Patient Capital Trust

621.9

(15.7)

(16.6)

(9.2)

0.2

Yes

118

0.0

Sector weighted average (ITs)

7.5

29.3

75.2

163.8

(8.1)

0.7

106

2.2

JUKG rank in sector

14

10

13

12

9

2

4

4

7

Source: Morningstar, Edison Investment Research. Note: *Performance to 10 May 2018. TR=total return. Net gearing is total assets less cash and equivalents as a percentage of net assets.

The board

Following the appointment of Keith Bray as a director of JUKG on 28 March 2018, the board has five independent non-executive directors. Bray was a former director of Jupiter Dividend and Growth Investment Trust. Chairman Tom Bartlam was appointed in July 2013 and assumed his current role in November of that year. The other board members and their years of appointment are Lorna Tilbian (2001), Jonathan Davis (2011) and Graham Fuller (2013).

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United Kingdom

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10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

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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

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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Edison has a restrictive policy relating to personal dealing. 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. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. 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. 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 (ie 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. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

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

295 Madison Avenue, 18th Floor

10017, New York

US

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

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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