For US clients A specialist investment manager for US clients Sarasin Asset Management Ltd. July 2015
Why invest with Sarasin Asset Management? True client commitment and expertise for 03 US residents and US expats US efficient portfolios: investing in individual 04 global stocks and bonds with US 1099 tax reporting Professionally-managed bespoke portfolios 06 one size does not fit all A distinct global thematic investment style 07 strong long-term performance Clear accountability with an investment 09 director and team for each portfolio Full transparency of investment strategy, 10 valuations and fees 02 A specialist investment manager for US clients Sarasin Asset Management Ltd.
True client commitment and expertise for US residents and US expats We are one of the very few London based firms able to look after both US residents and US expats wherever they reside As the regulatory and compliance burden on financial firms and US clients increases, most notably following the introduction of the Foreign Account Tax Compliance Act (FATCA), the importance of finding an investment manager with US client expertise grows too. Investors with a US reporting requirement need an experienced manager with US registration and extensive knowledge of US rules and requirements. Sarasin Asset Management Ltd (SAM) is a specialist investment firm dedicated to managing the international investment requirements of US clients wherever they reside. SAM is registered as an investment advisor with the SEC in the US and regulated by the Financial Conduct Authority (FCA) in the UK. We are one of the very few firms able to look after both US residents and US expats from London. We are a wholly owned subsidiary of Sarasin & Partners LLP, a London-based investment firm known for its long-term global thematic approach to investing. Investing for specific income needs is also an area of particular expertise as is socially responsible investing. We manage portfolios for families, trusts, corporations and charities all with US connections and place a strong emphasis on delivering the highest levels of client service, reporting and confidentiality. About Sarasin Asset Management (SAM) SAM is a wholly owned subsidiary of Sarasin & Partners and is dedicated to US clients Registered with the US Securities and Exchange Commission (SEC) as an investment advisor since June 2003 SAM draws from the broader resources of the Sarasin & Partners Group which includes 219 staff and 83 investment professionals in London (as at 30.06.15) The Sarasin & Partners group is responsible for the management of over $21 billion worldwide (as at 30.06.15) A specialist investment manager for US clients Sarasin Asset Management Ltd. 03
US efficient portfolios: investing in individual global stocks and bonds with US 1099 tax reporting A client s personal circumstances and investment requirements form the critical foundation of any portfolio. Many clients are subject to US tax rules as well as the rules of another jurisdiction, and the interaction needs careful consideration (e.g. a US client resident in the UK). We will work with a client s tax and legal advisors, drawing from our US expertise and the resources of our broader investment team to construct and manage a suitable bespoke portfolio that is as efficient as possible for each client. We pay particular attention to tax efficiency and the regulatory constraints and complications which can dissuade US taxpayers from holding certain investments (e.g. Passive Foreign Investment Companies or PFICs) Our preference is to invest in individual global stocks and bonds. This direct approach provides greater flexibility when multiple jurisdictions are involved, plus enhanced transparency and tax efficiency in relation to timing US capital gains and the ability to avoid PFICs When taking on new portfolios, we are happy to review a client s existing investments with their tax advisor to ensure they are transferred to us as tax-efficiently as possible. US calendar year (1099) tax reporting requirements are met through a choice of custodians. We will work with a client s tax and legal advisors, drawing from our US expertise and the resources of our broader investment team to construct and manage a suitable bespoke portfolio that is as efficient as possible for each client The diversified stock holdings in every portfolio are taken from our core global thematic buy list and are reviewed regularly to ensure they are appropriate for US clients Where appropriate, we invest in US-listed Exchange Traded Funds and/or US domiciled mutual funds in order to gain exposure to specialist equity, fixed income and alternatives For clients who meet certain requirements, we are able to deliver our thematic investment strategy through specialist in-house funds. For these select funds (which are PFIC qualifying electing funds) we employ a US accountant to provide specialist annual US tax reports 04 A specialist investment manager for US clients Sarasin Asset Management Ltd.
The diversified stock holdings in every portfolio are taken from our core global thematic buy list and are reviewed regularly to ensure they are appropriate for US clients
Professionally-managed bespoke portfolios one size does not fit all Our main long-term aim is to preserve and enhance the real value of a client s capital, after accounting for inflation 2. Our main long-term aim is to preserve and enhance the real value of a client s capital, after accounting for inflation. This focus on the long term is at the centre of our investment philosophy. Understanding a client s attitude to risk is also vital when agreeing the most appropriate strategic or neutral asset allocation (mix of investments) for a portfolio. 3. We actively manage each portfolio s asset allocation in a range around the agreed neutral position holding more of the assets we expect to perform well in the current market environment. This flexibility allows us to take advantage of opportunities and to protect the portfolio at any given time. Sarasin & Partners investment policy committee is responsible for guiding this dynamic approach to asset allocation. Our firm belief is that one size does not fit all. Drawing upon over 35 years of combined experience assisting US clients, the SAM team constructs portfolios which are tailored to the individual needs of each client: 1. Initially, we complete a full review of a client s circumstances to establish their investment requirements and the most suitable reference currency (e.g. USD, GBP, EUR, CHF) for their portfolio. To ensure we build the most efficient portfolio as possible, we work closely with tax and other advisors so that we have a complete understanding of the client s requirements. 4. The SAM investment team has the expertise and systems in place to not only construct a bespoke US efficient portfolio but also to accommodate many specialist investment requirements. This may include investing for a specific annual income, meeting socially responsible investment requirements or obtaining a certain geographic exposure (such as a global ex-us portfolio), for example. 06 A specialist investment manager for US clients Sarasin Asset Management Ltd.
A distinct global thematic investment style strong long term performance Rather than looking at specific regions, sectors or markets, we make investments based on a number of global opportunities and corporate themes At the heart of every successful fund management firm is a robust investment approach. Our renowned global thematic stock selection process investing in companies which we believe will benefit from the changes shaping the world over the long term has provided the platform for a strong and consistent performance record over many years. Rather than looking at specific regions, sectors or markets, we make investments based on a number of global opportunities and corporate themes. Every company we invest in will demonstrate a high exposure to global opportunity sets and to one or more corporate themes, complemented by an attractive long-term valuation. These are the stocks which we expect to deliver strong performance for our clients over a multi-year time horizon. Global opportunities inexorable long-term global trends which we expect to drive corporate revenues over time. Examples include: Crowded Planet Inexorable growth in population and consumption Smarter Planet Increasing productivity and technological solutions Shifting Planet The consequences of ageing people and infrastructure Corporate themes corporate characteristics which we believe will allow a company to convert revenue drivers into strong market performance. Examples include: Franchise Power Leading incumbents with pricing power Disruption and Innovation Developing new and superior products, processes or business models Corporate Restructuring Creating value through credible plans for restructuring Security of Supply Controlling a strategic asset, resource or access to market Strong get Stronger Demonstrating advantages of superior scale and lower costs A specialist investment manager for US clients Sarasin Asset Management Ltd. 07
Clear accountability with an investment director and team for each portfolio We are happy to meet wherever is most convenient our team makes regular trips to the US, for instance, and our clients are very welcome to visit our offices overlooking St. Paul s Cathedral in London Each client portfolio is managed by a team of three. This consists of a senior investment director, investment manager and an administrator who have the responsibility for the day to day management and administration of the portfolio. They will also monitor performance, conduct regular review meetings and ensure that the client s ongoing investment needs and objectives are met. Clients have full access to their dedicated investment team at all times. Ideally, we like to meet all clients face to face at least once a year. We are happy to meet wherever is most convenient our team makes regular trips to the US, for instance, and our clients are very welcome to visit our offices overlooking St. Paul s Cathedral in London. Of course, we are always available by telephone, e-mail and online as well. We also run an extensive range of investment seminars and events to keep clients updated on our investment strategy and to give them the opportunity of meeting the broader investment team. Topical issues are also covered within our quarterly client publication, the SAM House Report, which is tailored specifically for our US clients. A specialist investment manager for US clients Sarasin Asset Management Ltd. 09
Full transparency of investment strategy, valuations and fees We look after many international families and groups and so we can aggregate assets and fees based on a combined group as appropriate Our high standard of reporting marks us out from our peers we are frequently recognized as providing exceptional quality and clarity in this vital discipline: Customized portfolio valuations these regular reports give clients an accurate overview of their investments by asset class, currency, region and theme, right down to individual stocks Tax-year specific valuations we can also prepare annual valuations to cover a client s relevant tax year, which include a summary of the transactions made during the period and any dividends and interest received Dual reporting additional reports are available for clients who have dual tax reporting requirements (such as UK tax reports) US 1099 tax year end reports these are produced by the client s chosen custodian. Secure Online Access Clients can view their portfolios 24 hours a day, seven days a week through our online service. Portfolio information is updated daily, including a full valuation as well as details of underlying investments, capital and income movements and transactions. Access is also provided to the investment team s most recent views and insights. Investment Management Fees Investment management fees start at 1% and tier lower depending on the size and complexity of the portfolio. We look after many international families and groups and so we can aggregate assets and fees based on a combined group as appropriate. In order to provide full transparency, fees are carefully detailed in each valuation. Any holdings in Sarasin funds are not subject to our portfolio management fee as each fund has its own internal management fee arrangements. 10 A specialist investment manager for US clients Sarasin Asset Management Ltd.
Find out more If you would like more information on how our expertise can help US connected clients or to arrange a meeting, please contact us directly. John Soler T: +44 (0)20 7038 7168 E: john.soler@sarasin.co.uk Nick Wood T: +44 (0)20 7038 7086 E: nick.wood@sarasin.co.uk Sophie Jewson T: +44 (0)20 7038 7289 E: sophie.jewson@sarasin.co.uk Sarasin Asset Management Juxon House 100 St. Paul s Churchyard London EC4M 8BU T: +44 (0)20 7038 7000 F: +44 (0)20 7038 6850 www.sarasinassetmanagement.com Important Information If you are a private investor, you should not act or rely on this document but should contact your professional advisor. In particular, the information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the USA to or for the benefit of US persons. Access to this information by US residents is for informational purposes only. US persons are U.S. taxpayers, nationals, citizens or persons resident in the USA or partnerships or corporations organized under the laws of the USA or any state, territory or possession thereof. This document has been prepared by Sarasin & Partners LLP ( S&P ), a limited liability partnership registered in England and Wales with registered number OC329859, authorised and regulated by the UK Financial Conduct Authority and approved by Sarasin Asset Management Limited ( SAM ), a limited liability company registered in England and Wales with company registration number 01497670, which is authorised and regulated by the UK Financial Conduct Authority and registered as an investment adviser with the US Securities and Exchange Commission under the Advisers Act. In rendering investment advisory services, SAM may use the resources of its affiliate, S&P, a non-u.s. registered advisory affiliate. S&P is a London-based specialist investment manager. Local management owns 46% of the economic interest of the Partnership, with the remainder being owned by Bank J. Safra Sarasin. SAM has entered into a Memorandum of Understanding ( MOU ) with S&P to provide advisory resources to clients of SAM. To the extent that S&P provides advisory services in relation to any U.S. clients of SAM pursuant to the MOU, S&P will be subject to the supervision of SAM. S&P and any of its respective employees who provide services to clients of SAM are considered under the MOU to be associated persons as defined in the Investment Advisers Act of 1940. S&P manages mutual funds in which SAM may invest its clients assets as appropriate. SAM s investment process is largely based on S&P s investment process. Members of SAM s investment committee are represented on S&P s investment committee and private client investment committee. This document has been prepared solely for information purposes and is not a solicitation, or an offer to buy or sell any security. US Persons are able to invest in Sarasin funds if they hold qualified investor status and enter into a fully discretionary investment management agreement with SAM. The information on which the document is based has been obtained from sources that we believe to be reliable, and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to their accuracy. All expressions of opinion are subject to change without notice. Please note that the prices of shares and the income from them can fall as well as rise and you may not get back the amount originally invested. This can be as a result of market movements and also of variations in the exchange rates between currencies. Past performance is not a guide to future returns and may not be repeated. For your protection, telephone calls may be recorded. SAM and/or any other member of Bank J. Safra Sarasin Ltd. accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this document or any part of its contents. The use of this document should not be regarded as a substitute for the exercise by the recipient of his or her own judgment. SAM and/or any person connected to it may act upon or make use of the material referred to herein and/or any of the information upon which it is based, prior to publication of this document. Form ADV 2, a disclosure document which contains further information about SAM is available on request and is publicly available from the SEC website. 2015 Sarasin Asset Management Limited all rights reserved. This document can only be distributed or reproduced with permission from Sarasin Asset Management Limited. For further information, please contact: marketing@sarasin.co.uk A specialist investment manager for US clients Sarasin Asset Management Ltd. 11
Sarasin Asset Management Juxon House 100 St. Paul s Churchyard London EC4M 8BU T: +44 (0)20 7038 7000 F: +44 (0)20 7038 6850 www.sarasinassetmanagement.com