Baring Asset Management A unique investment perspective

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1 Baring Asset Management A unique investment perspective

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3 Delivering excellence Baring Asset Management is one of only a handful of asset managers that has truly global reach. We operate from 10 countries with professionals from 30 different nations, and bring global perspective, experience and expertise to meet our clients investment management needs. 1

4 we focus our global perspective, experience and expertise with the aim of successfully meeting our clients investment management needs At Baring Asset Management, our sole focus is fulfilling our clients objectives by providing top-quality investment products and superior service delivered by dedicated teams of experienced and talented professionals. Baring Asset Management is a global investment management firm with offices, clients and business lines spanning the world s major markets. We provide asset management services in developed and emerging equity and bond markets on behalf of institutional, retail and private clients worldwide. Our long and distinguished heritage dates back to the 18th century. Throughout our history, we have successfully developed a wide range of innovative solutions to meet our clients unique needs. We continue to leverage our experience and expertise to reach the following goals: Create investment management products that deliver superior, repeatable, risk-adjusted returns Offer client service that exceeds expectations Build long-term partnerships that enable us to provide the most appropriate investment solutions for our clients At Baring Asset Management, we focus our global perspective, experience and expertise with the aim of successfully meeting our clients investment management needs. We look forward to doing so for you. 2

5 Leveraging superior insight Since the foundation of Barings in 1762, the common thread linking our past to our present has been our ability to help clients benefit from changes in the markets. This tradition continues today as we invest client assets across global markets using the proprietary insights generated by a team of around 100 investment professionals. A three-dimensional perspective Today s complex world is no longer merely stratified by geography. By combining top-down and bottom-up insights that cut across location, sector and asset classes, Baring Asset Management offers a unique world-view into today s economies and markets. We combine this informed perspective with local knowledge and presence to deliver solutions that are customised to each client s needs regardless of location. 3

6 A track record of innovation Since the beginning of Barings, our goal has been to help clients benefit from changes in the markets through innovation. We continue that tradition by developing new ways to help our clients maximise potential return while managing risk. Today, Baring Asset Management operates as a subsidiary of MassMutual, a leading diversified financial services organisation. For more than two hundred years, Barings has played an integral role in many historic events around the world, helping to finance the global expansion of trade in the 18th and 19th centuries and bankrolling the industrial and economic expansion of many countries around the world. Francis Baring ( ) Beginnings of the American Revolution begins Coal gas first used Atlantic steamship London Stock Exchange for lighting service begins Louisiana Territory by John Senex 1762 Baring Brothers is founded in England. In just over 50 years, the house s influence had grown such that in 1818 the Duc de Richelieu described Barings as one of Europe s six great powers. 1800s Barings provides international travellers with letters of credit, enabling them to draw funds from the firm s network of correspondent banks. These letters of credit were the forerunners of today s travellers cheques Barings finances the Louisiana Purchase, doubling the size of the continental United States. To this day, the Louisiana Purchase remains the largest real estate transaction in history. Chicago Railway Terminal 4

7 Stock ticker invented Telephone invented by Tokyo Stock Exchange World Wide Web first by Edward Calahan Alexander Graham Bell starts calculating a stock available as a public price average service on the Internet Late 1800s Barings finances the growth of many of the world s earliest railways and, in doing so, invests in the emerging economies of the US, Canada, Russia and Latin America. Early 1900s Barings focuses on innovation in industrial finance and plays a leading role in the expansion of the London underground system Barings creates one of the first dedicated investment departments. Several decades later, we were one of the early investors in Asia and one of the first international managers in North America. In the 1960s, the firm played a significant role in the creation of the Euro dollar market. 2000s Barings tradition of innovation continues with the launch of a single strategy China long/short equity hedge fund and the first long/short mutual fund in the UK. Baring International Investment Management Limited was established in Hong Kong in

8 Offering broader choices Our unique perspective allows us to identify changes to market conditions early, wherever they occur, and develop a full range of products and investment solutions that are in direct response to client needs. A needs-based approach Within each broad category, we recognise that every client has different issues to address. These are reflected by each client s unique performance objectives, guidelines and risk tolerances. Our goal is to gain an in-depth understanding of your objectives and risk tolerances and to partner with you to ensure that our products and services meet those objectives. 6

9 A broad array of solutions Our products are grouped into four broad categories, each of which derive returns from a varying combination of asset/country allocation and sector/security selection to fit a broad range of risk/return profiles. Enhanced index: A combination of active and passive management which aims to capture the principal source of international equity returns without the stock-specific risk associated with fully active funds Multi-asset: We utilise the full range of asset classes with the aim of delivering client-directed absolute or relative return targets Alternative investments: Fund-of-fund and single hedge fund strategies take our best investment ideas and shape them with our asset allocation and risk control expertise Long-only: Our extensive range of long-only equity, fixed and balanced products cover single countries or sectors, as well as broader multi-asset portfolios 7

10 Applying greater resources Our clients are direct beneficiaries of our depth of experience, global perspective and ability to access all sources of alpha. Our integrated structure allows us to make the most of our resources by applying them in the right place at the right time. Baring Asset Management is distinguished from other managers by a unique combination of features that, individually and collectively, provide distinct advantages to our clients. Breadth of experience: Our long tenure of investing means that we have experienced most market conditions before and can apply that knowledge to everything we do An overarching investment philosophy: We have a single investment philosophy that permeates every portfolio: to identify and exploit unrecognised growth opportunities Access to all sources of alpha: Our investment professionals combine top-down with bottom-up, and quantitative with qualitative analysis, to enable us to capture opportunities from every angle Size: We have the critical mass to attract and retain the best talent, manage operations efficiently and to exploit inefficiencies quickly and easily Innovation: From the financing of the Louisiana Purchase in 1804 to the launch of the first long/short mutual fund in the UK in 2004, we have over 200 years of experience helping clients profit from change 8

11 Integrating exceptional talent With a fully integrated research team and investment professionals that are encouraged to contribute ideas and challenge others, clients get the best thinking from across the group, regardless of mandate. A flow of ideas Our research structure is flat, not in silos, ensuring full communication among all of our professionals around the globe. Teams are composed of analysts who cover global sectors, mature and emerging markets, as well as credit markets. As a result, investment ideas move freely from one region to the next, across sectors and asset classes. A culture of partnership We have built a collegiate environment where idea generation, entrepreneurship and ownership are highly valued and rewarded. The foundation of this culture is a compensation plan that ties our senior professionals compensation to the success of the firm. The results: professionals who are highly motivated to generate successful results for their clients. Bespoke private client portfolio management When it comes to our private client team, we offer a high level of individual service. A specialist portfolio manager, supported by a team, is appointed to look after the investments of each client and gets to understand his or her objectives in depth. We avoid grouping our clients into types. Instead, our portfolio managers establish a professional, direct relationship. As a result, when our private clients call, they speak to their portfolio manager, the one person who knows their investments better than they do. 9

12 Discovering opportunities At Baring Asset Management, we focus on finding opportunities that others miss. Our product offerings follow three main investment approaches. A top-down investment approach For enhanced index, multi-asset and fixed income, our emphasis is top-down. We perform proprietary research to analyse the economic and market environment. Using a scoring methodology, we then seek mispricing opportunities at the asset class, country and sector level and leverage our top ideas to construct portfolios. For fixed income, we believe that an in-depth understanding of consensus drivers helps reveal outperformance potential. Possible performance scenarios are identified and portfolios are constructed which should perform well under a range of market conditions. we focus on finding opportunities that others miss 10

13 Seeking positive earnings surprises For our actively managed equity funds, and for our range of single strategy hedge funds, we seek companies whose growth prospects are not reflected in their prices. Our investment managers implement stock, sector and country selection decisions with the highest risk/return potential. This strongly emphasises stock selection skills, drawing on our analysts proprietary research. We follow a Growth at a Reasonable Price (GARP) investment philosophy, focusing on those markets, sectors and stocks with the greatest potential for earnings growth. Growth and value disciplines are combined to help avoid the volatility that can occur in a single-style strategy, and obtain better riskadjusted returns over time. Structured solutions to meet investors needs For a growing number of clients, an approach incorporating the GARP philosophy with sophisticated financial instruments to manage market risk can offer desirable risk/return characteristics. These solutions are designed to generate positive absolute returns under a variety of market conditions, with relatively low correlations to the market. Offerings include Portable Alpha and Targeted Return products and hedge funds. 11

14 Baring Asset Management A rich history, experience across market conditions, global perspective and a focus on developing solutions that meet our clients needs. The results speak for themselves over 200 years of successfully managing our clients assets and delivering superior client service. Baring Asset Management Limited 155 Bishopsgate London EC2M 3XY Telephone +44 (0) Authorised and regulated by the Financial Services Authority. This document is available in large print and Braille. Please contact [email protected] or telephone +44 (0) London Boston Frankfurt Guernsey Hong Kong Paris San Francisco Seoul Taipei Tokyo Toronto This document is issued in the local or regional jurisdictions by the appropriate Baring Asset Management company. M0609/40C/GATE 12

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