Odyssean Investment Trust PLC
Q2 2022 Update
Important Information
- The information contained in this presentation is for the use of Professional and Institutional Investors only.
- Past performance is not a reliable indicator of future performance and Investors may not get back the value of their original investment
- The value of Odyssean Investment Trust PLC ("OIT") and the income derived from it may go down as well as up and is not guaranteed
- Investment in OIT may not be appropriate for investors who plan to withdraw their money within 5 years
- OIT's portfolio is focused towards small and mid-sized companies; these may involve a higher degree of risk than larger sized companies. OIT does not attempt to match the composition of any index
- The Prospectus and the Key Information Document, available at www.oitplc.com, provide more information about the risk profile of Odyssean Investment Trust PLC
- We draw readers' attention to the Disclaimers at the end of the presentation
Executive Summary - Q2 2022
NAV decline c.4.5% over the period during a further challenging time for markets
- NAV per share fell 4.5%1,2 in the period. NSCI +AIM ex IC index ("Comparator") fell 12.3% 2,3
- NAV per share growth in the trailing twelve months of 1.4%. Net cash balance averaged 6%. Comparator Index fell 19.0% over the same period
- Portfolio:
- Positive impact from bid talks at Euromoney and strong performance from Curtis Banks, following board change
- Negative impacts from industrial names falling with wider sell-off, and despite robust trading
- Two new investments made in the quarter. Active pipeline of further new investments. We are capital constrained
- Net cash ended the period at 4.4%, slightly lower than typical range. Net cash position and portfolio turnover in Q3 likely to be determined by the outcome of Euromoney bid talks
- We continue to review the portfolio against the risk of inflation and rising interest rates, supply chain disruption and recession risk. Our central thesis is that consumers will bear the brunt of a recession, similar to the 1990s and early 2000s. Sentiment towards equities, especially UK equities, is extremely poor. NSCI & AIM ex resources and financials NTM p/e of <12x on PEG of <1x
- OIT's shares ended the period trading at c.1.6% premium to NAV per share of 156.54p1,2
- c.4.4m OIT shares issued in the quarter. NAV at period end £157m. Blocklisting remains in situ
As at 30th June 2022. Performance measured from COB 1st May 2018 Source: 1 Odyssean Capital 2 Link Asset Services 3Bloomberg. NTM - Next 12 months. PEG - (p/e ratio)/earnings growth. The NSCI + AIM ex Investment Company index is only used for the purposes of calculating performance fees. OIT does not attempt to match the composition of this index. The investment strategy is unconstrained and
not benchmarked against any particular index. Past performance is no guarantee of future performance and the value of investments can go up and down3
Performance update
NAV down c.4.5% in Q2 compared with a double digit fall in the market
Performance | % | ||||||||
Inception | Since | Annualised | |||||||
Q2-22 | YTD-22 | LTM | CY21 | CY20 | CY19 | since | |||
to Dec-18 | inception | ||||||||
inception | |||||||||
NAV Total Return Per Share1 | |||||||||
-4.5% | -4.1% | +1.4% | +25.0% | +13.1% | +22.0% | -3.7% | +59.2% | +11.8% | |
Share price return3 | -4.2% | -4.2% | +2.6% | +28.7% | +14.2% | +17.7% | -4.0% | +59.0% | +11.8% |
NSCI + AIM ex IC Total Return3 | -12.3% | -21.4% | -19.0% | +20.0% | +4.9% | +22.2% | -15.0% | +3.0% | +0.7% |
Average cash balance2 | 2% | 4% | 6% | 8% | 9% | 17% | 65% | 19% | 19% |
Rebased NAV per share and share price
vs comparator index1
160
140
120
100
80
60
May-18 | Aug-18 | Nov-18 | Feb-19May-19Aug-19 | Nov-19 | Feb-20May-20Aug-20 | Nov-20 | Feb-21 | May-21Aug-21Nov-21 | Feb-22 | May-22 | ||
OIT NAV | NSCI&AIM | OIT Share Price | ||||||||||
60%
50%
40%
30%
20%
10%
0%
-10%
NAV per share performance vs comparator index¹
May-18 | Aug-18 | Nov-18 | Feb-19 | May-19 | Aug-19 | Nov-19 | Feb-20 | May-20 | Aug-20 | Nov-20 | Feb-21 | May-21 | Aug-21 | Nov-21 | Feb-22 | May-22 |
As at 30th June 2022. Performance measured from COB 1/5/18, share performance since inception assumes IPO price of 100p. Source: 1Link Asset Services, Bloomberg, Odyssean Capital; Numis | |
Smaller Companies plus AIM ex Investment Companies Total Return Index. Rebased to start NAV 2 Link Asset Services, Odyssean Capital 3 Bloomberg. YTD - Year to Date; LTM = Last 12 months. | |
Past performance is no guarantee of future performance and the value of investments can go up and down. The NSCI + AIM ex Investment Company index is only used for the purposes of calculating | 4 |
performance fees. OIT does not attempt to match the composition of this index. The investment strategy is unconstrained and not benchmarked against any particular index. | |
Our investment strategy has delivered strong long term returns
Attractive absolute and relative performance, without any gearing
Strategy NAV per share performance since inception1,2
30 June 2009 - 30 June 2022
900 | CAGR | CAGR | |||||||||||||||||||||||||||||||||||||||||||||
Over 13.0 years | Whilst invested | ||||||||||||||||||||||||||||||||||||||||||||||
800 | 17.0% | 18.9% | |||||||||||||||||||||||||||||||||||||||||||||
700 | Strategy | ||||||||||||||||||||||||||||||||||||||||||||||
600 | out of | ||||||||||||||||||||||||||||||||||||||||||||||
market | |||||||||||||||||||||||||||||||||||||||||||||||
500 | |||||||||||||||||||||||||||||||||||||||||||||||
400 | 8.4% | 9.3% | |||||||||||||||||||||||||||||||||||||||||||||
300 | |||||||||||||||||||||||||||||||||||||||||||||||
7.3% | 8.1% | ||||||||||||||||||||||||||||||||||||||||||||||
200 | |||||||||||||||||||||||||||||||||||||||||||||||
100 | |||||||||||||||||||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||||||
Strategy | Comparator (NSCI+AIM ex IC TR) | Numis All Share (inc. ICs) TR | |||||||||||||||||||||||||||||||||||||||||||||
- Despite periods of short term volatility, over the long term, under our management this investment strategy has delivered returns well ahead of both the absolute return ambition and also the comparator index3
- Differentiated approach is distinct from "pure" Growth or Value
- Returns generated with net cash and no gearing. Net cash typically high single digit as % portfolio
Notes: OIT performance measured from COB 1/5/18 when OIT launched, OIT share performance since inception assumes IPO price of 100p. Comparator is Numis Smaller Companies plus AIM ex Investment Companies Total Return Index. This index is used as a Comparator not a benchmark, and it is shown for comparison purposes only 1 Shows NAV Total Return per share post all fees. Rebased to start NAV. 2 As at COB 30th June 2022 3Stuart Widdowson was lead manager of Strategic Equity Capital plc "SEC" from 1st July 2009 until 6th February 2017. Performance up to 6th February 2017 is from SEC. Source: Link Asset Services, Bloomberg, Odyssean Capital;
Past performance is no guarantee of future performance and the value of investments can go up and down. | 5 |
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Odyssean Investment Trust plc published this content on 08 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 July 2022 11:03:07 UTC.