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SWIFTSURETECHNOLOGYFUNDAGlobalTechnologyLong/ShortEquityStrategy

December2017

1ForeStreet|London|EC2Y9DT+44(0)2038658209

SWIFTSURETECHNOLOGYFUND

SwiftsurePartnersLimitedisanAppointedRepresentativeofThornbridgeInvestmentManagementLLPwhichisauthorisedandregulatedbytheFinancialConductAuthority 2

Shouldn’tthetrendsthataffecttheworldchangeyourinvestments?


SwiftsurePartnersLimitedisanAppointedRepresentativeofThornbridgeInvestmentManagementLLPwhichisauthorisedandregulatedbytheFinancialConductAuthority 3

y

• ThematicapproachtoinvestinginTMTandindustrialtechnologystocks

• Establishedcompanies(mid-capbias)listedondevelopedmarkets

• Fundamentalstockselection

• Long-short(neutraltolong-bias)

• UCITS(onPictet’s Protea Fundplatform)- DailyliquiditywithGBPandUSDshareclasses

• Ongoingchargeof~1.22%,witha15%performancefee

• EarlyBirddiscount:~0.92%ongoingchargeand12%performancefee

LaunchedAugust2017

GlobalTechnologyEquitiesFund

SwiftsurePartnersLimitedisanAppointedRepresentativeofThornbridgeInvestmentManagementLLPwhichisauthorisedandregulatedbytheFinancialConductAuthority


InvestmentProcess

4

StockSelection

MappingtheSupplyChain

ThemeSelection

Mapouttheimpactedvaluechains• Eachthemehasauniverseof50to100stocks

Fundamentalanalysistoselectstocks• 25yearsexperiencepickingtechnologystocks• Previouscareersinoperatingandadvisingtechnologycompanies

Identifysecularglobaltechnologytrends• Currentthemes:1)WorkplaceAutomation,2)DataScience,3)Future

Transport,4)HumanMachineInteraction,5)SecurityTechnology



Whatwedo

Whatwedon’tdo:

• Speculateonfuturetechnologytrends

• Speculateonhighrisk,emergingtechnology

• Chasemomentumstocks

• Investinunlistedcompaniesorilliquidmicrocaps

• Tracktheindexormirrorcompetition

5

Whatwedo:

• Identifycurrentseculargrowthtrends

• Targetestablishedtechnologycompanies

• Combineindustryandfundmanagementexperience

• Digdeepintovaluechains

• Getoutthereandmeetcompanies



Portfoliostructure

6

Limits%

Normal%

Gross Exposure 200 75-150

Net exposure +0/+100 +0/+60

Maximum individual size Long10%Short5%*

Long2-6%Short1-3%

Long Short

Number of Positions 25-35 10-20

Typical Holding Period 9-36 months 3-12 months

*upto10%forETFs



TheBackgroundoftheInvestmentTeam

7

“TheDevilisinthedetails,butsoissalvation.”– HymanG.Rickover,fatheroftheUSnuclearnavy

Unique combinationofsectorexperienceand

expertise

Engineeringeducated

Fundamentalstockpickers

Prior careersintechnology

industry



• CIMInvestmentManagement,thematiclong/shortstrategy,from2006to2016

• USNavy,fastattacknuclearsubmarineofficer,SSN761(USSSpringfield)

• Asyst Technologies,headedmanufacturingforsemiconductorroboticscompany

• Industrialsandtechfocusedinvestmentbanking-RobertsonStephens,DeutscheBank

• Consultancytoindustrial/technologycompaniesatBain&Co

• HarvardBusinessSchool,MBAwithDistinction

• MasterdegreeequivalentinNuclearEngineering

• BScinManufacturingEngineering,BostonUniversity

• CIMInvestmentManagement,withafocusontechnologyequities

• RABCapitalPlcfocusingontechandengineeringequities

• PAREquityLLP,aVCfund:activism,newdealsandportfoliomanagement

• RBSGroup,Procurement/supplychain

• MEnginMechanicalEngineering,UniversityofBristol

• MScinEconomics,FinanceandManagement,UniversityofBristol

InvestmentTeam

8

DanielNye,CFAPortfolioManager14yearsinportfoliomanagement

DuncanStewart,CFAAssociatePM9yearsinportfoliomanagement



Continuousprocessofseekingoutnewthemes• Sectormedia/thirdpartyresearch• Industryconferences• Companymeetings

Isthetrendsustainable,secular,withquantifiablegrowth?• Consultationofrelevantindustrycontacts• Proprietaryandsellsideresearch• Analysisofindustrydynamics

Isthereanopportunitytomakemoney?• Broadlyidentifyinvestibleuniverse• Reviewsectorvaluations

Stage1

Stage2

Stage3

InvestmentProcess:1.ThemeSelection

9

Focusouranalyticaleffortsandexposethefundtotechnologytrendsthatwillprevailthroughthecycle

• Portfolioof5themes

• Eachthemeistypicallyheldfor3years



InvestmentProcess:2.MapValueChain

10

• Industryexperts

• Marketresearch

• Brokerresearch

• 50to100stocksgloballypertheme

InitialMapping

Screen

DefinedInvestmentUniverse

LONGS• MarketCap:>$500m• Developedmarkets• Growthtailwind

SHORTS• Marketcap:>$1000m• Developedmarkets• Disruptiveheadwind

• Conferences

• Companymeetings

• Mediaand3rd partyresearch



InvestmentProcess:3.StockSelection

11

1.ComparableAnalysis

• Valuationversuspeers• EV/EBITDA,EV/S,P/E,PE/G

2.SustainabilityofReturns

• Defensibilityoftechnology• Competitiveposition

3.BalanceSheet

• Trajectoryofcreditquality• Balancesheetstrength

7.ContinuousReview

• Evolutionordriftofthesis• Targetpriceadjustment• Sharepriceaction• Businessexecution• Relativevaluation

4.Accounting

• Evidenceofcreativeaccounting?• GAAPtonon-GAAPadjustments• Qualityofcashflows

5.Management

• Onsite/offsitemeetings• Trackrecordofnavigatingcycles• Deliveryversusguidance• Ownership,alignment,insiderselling/buying

6.InvestmentThesis

• Establishtargetprice• Historicalmultiples

Investment

Notspeculation



Universe

12

Americas EMEA Asia

423

43

3894

167

NumberofCompanies

1,838companieswithatotalmarketcapitalisationofover$42trillion

765

131 42

31

58

136

NumberofCompanies 398

322

33

96

67155

NumberofCompanies 673

$1,781

$882

$705

$163

$686

TotalMarketCapitalisationBillionsof$US

$574$513

$376

$356$736


$6,081

$3,943

$303$1,020

$6,300




Theme Thesis Beneficiaries

Data Science • Cisco:“GlobalIPtraffictoincreaseat24%/pa”

• Smartphone andM2Mtrafficgrowingat49%

BI anddataminingsoftware,comms,hardwaresystems

Security Technology • Mountingthreatsfromnationstatesandfundamentalism

• Cybersecurityspendhasincreased35xsince’04

• Expectedtogrow12-15%/paovernext5years1

Firewalls,compliances/w,detections/w,cloudappsecurity,monitoring,outsourcedIT,borderscreening

Workplace Automation • Deloitte:“25-31%ofbusinessservicejobsatrisk”

• McKinsey:“45%ofactivitiescanbeautomated”

• InternationalFederationofRobotics(IFR):“globalrobotunitsalestogrowat12%pa

Enterprise optimisations/w,serviceexchanges,Co-Bots,analog sensors

FutureTransport • Newsensors/processors allowforvehicleautomation

• McKinsey:“50%ofcarstobehighlyautonomousand15%fullyautonomous by2023”

Semiconductor processors, sensors,applicationsoftware,precisionmachinecomponents,wirelessconnectivity(5G)

Human Machine

Interaction(HMI)

• Expandingtoolkitforhowusersinterfaceoffersnewmeansofcommunication,disruptingindustryanddrivinggrowth.

• Cleargrowthinvoice,vision,sensors,anddigitalengagement.

Consumerelectronics,componentsuppliers,digitalagencies,newmedia,AR/VR

CurrentThemes MajorSecularMacroTechnologyThemes

13

Source:1 SANSInstitute



CurrentPositioning:December12th

14

Top10LongPositionsRapid7OrdShs 6.3% SecurityTechnologyQualysOrdShs 5.1% SecurityTechnologyScout24NOrdShs 5.0% HMIHortonworksOrdShs 4.8% DataScienceTomTomOrdShs 4.6% FutureTransportMINDBODYOrdShsClassA 3.8% HMIRenesasElectronicsOrdShs 2.9% FutureTransportTeradyneOrdShs 2.8% WorkplaceAutomationGKNOrdShs 2.5% FutureTransportFinisarOrdShs 2.4% DataScience

Top10ShortPositionsPurplebricksGroupOrdShs 1.9% HMIOmnicomGroupOrdShs 1.8% HMIBcaMarketplaceOrdShs 1.8% FutureTransportNewYorkTimesOrdShsClassA 1.3% HMIOracleOrdShs 1.2% DataScienceBoohoo.ComOrdShs 1.1% HMISmithsGroupOrdShs 1.1% SecurityTechnologyHenryScheinOrdShs 0.8% HMIAutoDeskOrdShs 0.8% WorkplaceAutomationCognexOrdShs 0.8% WorkplaceAutomation



52% 48%

0%

NorthAmerica

Europe

Asia

15%

13%

72%

0%

>$20bn

$13bn-$20bn

$1bn-$13bn

<$1bn

CurrentPositioning:October5th

15

Longbook

Shortbook

51%

9%

14%

18%

8%

HMI

DataScience

WorkplaceAutomation

FutureTransport

SecurityTechnology

27%

22%

7%

20%

24%

Themes 0% 8%

77%

15% MarketCap

64% 27…

9%

Geography



Example:DataScience

16

Quantifiableevidenceofasustainabletrend• “IPTrafficisexpectedtogrowat27%/paforthenext5years,”Cisco

• “Everytwodayswecreateasmuchinformationaswedidfromthedawnofcivilizationupuntil2003,”EricSchmidt,Google

• “Storeddatatorise44foldbetween2009and2020,”Microsoft

• “Internetconnecteddevicestogrowfrom500millionin2007to50billionby2020,”Cisco

Mapoutthecompaniesthatareimpactedordisrupted

PositivelyImpacted

• BusinessIntelligenceapplications

• Cloud/distributedStorage

• Comm equipmentandcomponents

Disrupted

• Telcos andCDN

• Legacydatabasecompanies

• Subscalesemiconductorcompanies

Stockselectionexamples

Long

• Hortonworks

Short

• Lumentum

StockSelection

MappingtheSupplyChain

ThemeSelection



RiskControls

17

Individualpositions– Wehaveaninternalpolicyofreducinglossmakingpositions,withthefollowingguidance:

• 10%dropinpriceduringthemonth: Addtofocuslist

• 15%dropinpriceduringthemonth: Reducepositionsizeby50%

• 20%dropinpriceduringthemonth: Exitposition

Portfoliolevelriskcontrol:

• VaR (onemonth,99%confidence)>20%: Reductioninnetpositioning

Fundisalsosubjecttoformalrestrictionsonindividualpositionsizes,butourinternalpoliciesfollowtighterlimits,forwhichweprovidethefollowingguidance:

• Maximumindividualpositionsizeonthelongbook: 7%ofNAV• Maximumindividualpositionsizeontheshortbook: 4%ofNAV

THEABOVEISGUIDANCEONLY



FundTerms

18

ManagementFee 1%

PerformanceFee 15%on performanceover1monthLIBOR (withequalisationandhighwatermark)

Liquidity Daily

Structure LuxembourgSICAV

Legal Luxc/oPictet – Allen& Overy,andUK– Rooney|Nimmo

Auditors DeloitteLuxembourg

Administrator Pictet Luxembourg

PrimeBroker Morgan Stanley

Depositoryandcustodian Pictet Luxembourg

Allinannualadministrationcost Approximately22basispoints(at $30million);costincludesadministrator/depository/custodian,funddirectors,annualaudit,legalcosts



DisclaimerThis presentation may not be reproduced (in whole or in part), transmitted, modified or used for any public or commercial purpose without the prior written permission of Swiftsure Partners Ltd.

This presentation does not constitute and none of its contents should be construed as an offer or a recommendation to subscribe for, purchase or sell any interest in the Fund, nor as an offer or an invitation,inducement, recommendation or a solicitation of an offer, to subscribe for, purchase or sell, any security held by the Fund.

The opinions expressed in this presentation do not take into account any individual’s circumstances, objectives, or needs and each individual must make his or her own independent decisions regarding any investmentin the Fund. Before entering into any transaction, each individual is urged to consider the suitability of the transaction to his or her particular circumstances and to review independently, with professional advisors asnecessary, the specific risks involved, in particular the financial, regulatory, and tax aspects.

The information, opinions and analysis contained herein represent own assessments of information believed to be reliable and available to them as at the date that this report was prepared but no liability is acceptedfor the use of, nor may any reliance be placed on, any information, opinions or analysis contained in this presentation in making any investment decision. Any decision to invest in the Fund should be made on the basisof the information contained in the Private Placement Memorandum and Share Subscription Agreement and not on the information contained in this presentation.

There can be no certainty that the objectives of the investments or structures which are described herein will be achieved. The impact of charges, which may have a greater proportionate effect on returns ifinvestments are sold in the shorter term, are contained in Insight Growth Fund Placement Memorandum (to become Swiftsure Growth Fund Placement Memorandum). The value of an investment and the income fromit can go down as well as up, it may be affected by exchange rate variations, and you may not get back the amount invested. Quoted yields are not guaranteed, and past performance is no guarantee of current or futurereturns.

There can be no assurance that any securities or other financial instruments discussed herein are currently or will remain in the fund’s portfolio. The investments discussed in this presentation do not represent theentire portfolio and, accordingly, the examples are not intended to indicate the overall portfolio performance that may be expected to be achieved. The information presented should not be considered arecommendation to purchase or sell any particular security or other financial instrument. It should not be assumed that any of the investments discussed herein have been or will be profitable, or thatrecommendations made in the future will be profitable or will equal the performance of those discussed herein. Past results are not necessarily indicative of future results.

This presentation is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it directed to any person or entity to whom it would beunlawful to direct such a document.

Nothing in this disclaimer excludes any obligation we have to you under applicable law.

19

The contents of this document are communicated by, and the property of, Swiftsure Partners Limited. Swiftsure Partners Limited is an appointed representative of Thornbridge Investment Management LLP which isauthorised and regulated by the Financial Conduct Authority (“FCA”).

The information and opinions contained in this document are subject to updating and verification and may be subject to amendment. No representation, warranty, or undertaking, express or limited, is given as to theaccuracy or completeness of the information or opinions contained in this document by Swiftsure Partners Limited or its directors. No liability is accepted by such persons for the accuracy or completeness of anyinformation or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained in this document.

The information contained in this document is strictly confidential.

The value of investments and any income generated may go down as well as up and is not guaranteed. Past performance is not necessarily a guide to future performance.

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