Year End Investor Letter – Sep 2016

This letter is not part of the fund prospectus or offering documentation of VT Holland Advisors Equity Fund. Opinions expressed below are only those of the manager and shared for the interest of readers only. Qualitative terms like ‘great’ and ‘compounding’ are used only to explain the managers investing approach. Readers are instructed to look at the full disclaimers and fund prospectus.

Download PDF

Year End Investor Letter – September 2016

 

Dear Investors and Friends,

Net Asset Value: £125.65

During the year to September 2016 the Fund’s NAV has risen by 4.4% to £125.65. This figure is after the deduction of the Fund’s modest day to day expenses. Also, no management fee has been charged as the Fund is below its high watermark.

The Economic + Investing Backdrop

It is interesting to watch economic theories evolve over time and the advocates of each approach gradually change their view. Normally interest rates rise and an economy slows, then rates fall and it recovers. The exact drivers of its slowdown and then reacceleration often not identifiable as the inflection point happens too fast – not this cycle it seems. Five or so years ago we were told emphatically by many right of centre, financially well informed politicians that we had to ‘live within our means’ and ‘move toward a more balanced budget’, cutting expenditure was our ‘only option’. In a surprisingly short period of time this mantra has been seemingly forgotten. In the current US election race the debt burden hardly gets a mention and the only policy both candidates seemingly agree on is the need for more fiscal stimulus likely by way of infrastructure spending. The UK political consensus has quickly moved in this direction also, as it seems have central banks: Mark Carney recently observing that low interest rates suggest a ‘fiscal spending plan is justifiable’. Many monetarists it seems are now Keynesian believers also.

Whilst on the one hand this gives investors a clear sign of what direction economic policies are now moving in, it should also serve to illustrate how little those we listen to for leadership really know about the economic outlook. Is this policy on the hoof 101: i.e. ‘X’ did not work, so let’s try ‘Y’? Whilst we can see reasons to worry at a global level if such a spending policy fails to stimulate growth we are not inclined to the global long term Armageddon view some articulate. Indeed maybe a fiscal boost, which would consume a lot more labour and materials, than a QE one is exactly what economies need for a little stronger growth and a little higher inflation. Such a fiscal plan will importantly also keep animal spirits alive in markets and economies.

Productivity

Economic productivity measured in output per head is often seen as the nirvana that all economists and finance ministers are searching for. Its current low growth rate in the US(less than 1% pa vs the 2-3% growth rate of the 1990/2000s) is something that concerns and confounds many an economist. It is also the main factor explaining current lower GDP growth rates. But we find ourselves wondering if the focus on this measure misses a wider point. This being that whist output per head might not be as high as desired, the cost of living for many vs. importantly the standard of living this cost achieves is today falling in many areas. Thus society and economies are developing(and becoming more efficient) but just doing so in a different way than in the past and in ways economists find this hard to model. A 2% wage rise in 2016 is of course worth less than a 4% one in say 2005? But parts of the modern cost of living are falling faster driven currently by deflation in commodities/oil but also in a lasting way via technological change. Eg better time usage (iPhone) or lower transport costs (Uber) or cheaper entertainment (Spotify/WhatsApp)?

All these services put more power in consumers’ hands for often less money, but little of it feeds into national statistics. These just capture that less DVD’s are sold, or lower Taxi company taxes are paid. The money consumers are saving is measured as a worrying economic line item (deflation) not a positive one. We make the above observation just to show that for all of the economic uncertainty that many commentators love to highlight there is much progress in non economic items and improved quality in many people lives, even if economists find it hard to measure.

Markets

Many an investment bear believes that the rise in markets of the last 5+ years has been in some way false, with higher market levels only a result (direct or indirect) of money printing. We can see this point of view, but do not see market prices as in any way false or manipulated. All that has really occurred is a repricing of all related assets to today’s record low global risk free rate (Global Long Bonds – which are now either a bubble or at best return free risk). Corporate bonds, Property and Equities have all performed royally as a result with the best gains handed out to those seen to be the lowest risk (prime property, investment grade bonds and top quality companies). As we observed in the spring those investors wanting cheap absolute starting prices for a companies shares, rather than paying up for quality, have found life a little harder (our hand is raised).

We recently came across a chart that we thought put this ‘re-rating of quality equites’ theme into perspective. It is the PE rating attached to the shares of WD40 over the last 30 years.

 Source: Capital IQ

WD40 is an interesting example for a variety of reasons not least it sells one product worldwide and has done so for decades. It is also well run with modest annual top line growth, but good Return on Equity. Of note however its expected growth rates in earnings are no greater than those achieved in the past 20 years. The re-pricing of its shares therefore is arguably merely the function of predictable growth being harder to find. We looked closely at WD40 about 4 years ago as a possible investment (PE was then c.18x) and found many of the traits we like. We did not buy the shares however. Why? Because we assessed them as fairly priced. During the 4 years since the group earnings per share have risen a healthy 50%. It shares however are up 140%. What we thought as prudence 4 years ago looks like folly today. As we observed in our research note of the summer (What would Billy Beane (or Ranieri) do?), franchise companies have in recent years received a once in a lifetime re-rating as the market rewarded their quality and resilience.

As interest rates and global growth have stayed low this is arguably a logical sequence of events. However this is not a trick that can be repeated in these same companies again. History shows however that it is possible to be reversed.

We have we been doing (Right and Wrong)

Against a backdrop of quality franchises’ being almost constantly re-rated it has been disappointing not to have participated in this process more fully, particularly when we think we understand franchise analysis better than many. It has not been our analysis of such companies that has held us back but our reluctance to pay up as painfully illustrated in the WD40 example above.

We also made some genuine mistakes in the first few years of running the Fund in trying to buy a few deep value ideas. We felt that the risk was compensated by the returns offered, but in a few cases we were wrong. In other cases the jury is still out. An interesting example of this is a share we still own today: General Motors. The full thesis for why we own the shares we will not go into here, only to say that we believe, due to the restructuring it went through in 2009 that GM is a far better business today than in its past. We think it will make higher margins for longer than many believe. As a result we have owned the shares for c.3 years. When we bought the shares they were $31 and trading on a PE of around 8x earnings. Since then profits have risen faster than the market has expected, but pretty much in line with our and the company management projections. The share price today…? It is $31. How is this possible? Because today it trades on 5x current earnings as Mr Market seemingly believes the peak in its profits are likely now even nearer and/or Telsa will soon have revolutionised the car market resulting in lower profits for the incumbent operators. These cyclical and structural threats we believe overstated, but as the saying goes; ‘you have to remain solvent longer than the market can remain irrational’. Consider that in the last 4 years GM profits are up 80%, but its shares are unchanged. The contrast with WD40 with earnings up c.50% and its shares up almost three times as much is clear. (NB We have received an annual dividend income of c.4% from our GM shareholding).

New Opportunities

Over the last 6-9 months a number of individual company wobbles or market events, like Brexit, have again presented some really interesting franchise opportunities. This has resulted in us buying into a number of companies that we know well/have researched for a long while but up until now not found the share prices to offer compelling value. The result is that we have built positions in companies such as JD Wetherspoon, Ryanair, Sports Direct and Next. All we think have either good or very good franchise characteristics, but importantly offer us compelling value at the entry price. Mostly the reason we are being offered these bargains is because something is going wrong and thus Mr Market is worried. In each case we believe the extent of such worries are more than priced in to the shares. All four companies also have single trait in common; they are run by a determined and experienced manager who owns a significant stake in the business and has extensive experience of running these cherished operations.

We suspect it will not be lost on readers that all of these are UK companies. Likely many of you will have also noticed that Sterling has been extremely weak of late. We have been using that weakness to sell a few US Dollar holdings, to buy what we think are now undervalued UK franchises at compelling starting multiples and at a 30y low in the Sterling/Dollar exchange rate. As an aside we see Sterling’s currently depressed level as offering very good value. The resilience of the UK economy has surprised all this summer and we agree with the consensus view that that future open trade between the EU and UK is in all parties’ best interests. Thus the recent drop in Sterling reflects the entrenched positions that each side must present before negotiations can maybe start in earnest. We also observe that there has never been a better point in history to have a currency crisis.

Many global economies have worked hard in recent years to depress their exchange rate to steal a little global growth for themselves – The UK then achieves this by accident. The price we pay for this accident? Sky-rocketing UK Government borrowing costs; 10y money costs have risen 35% in the last 6 weeks as the UK credibility has fallen. It now stands at a whopping 1.1%! We repeat; there has never been a better time to have a currency crisis.

US Financials – Blind spot or becoming sweet spot?

We have believed for some time that the only sector that looked notably undervalued in the US stock market was the US financials; particularly the largest banks deemed ultra-safe by regulators, but assessed as un-investable by many an investment manager. The difficulty of competing with JP Morgan in just a single line of business, let alone across its whole scale of operations and fortress balance sheet is daunting and likely impossible. As such surely such a business has a sizable moat, but its share price suggests otherwise trading at c.10-11x earnings (post a 20% run up!) vs. a market PE nearer 20x.

This difference is justified by many due to how hard it is for banks to make money in a low interest rate environment. However despite this significant headwind the best US banks are still making acceptable (10-15%) ROE’s achieved by constant product repricing and efficiency drives, whilst building the capital regulators desire. In short, the world’s best banking franchises are being run very efficiently at what may well be the trough of the interest rate cycle. As such the operational gearing into any recovery could be very significant. Equally regulators are running out of reasons for them to hold onto further capital, thus greater percentages are now being paid out to income starved investors.

As a result, we have chosen not to give up on our US bank holdings in favour of the WD40s of the world at high starting multiples. However a few new opportunities such as those thrown up by Brexit have seen us trim some of our banking positions. Investors should also remember that the banking sector is one of very few that would perform well were there to be any sign of interest rate rises. The exact same signal could see falls in the value of bonds and possibly the values of assets priced closely off of them.

Portfolio Weights

As a result of the changes noted above today the funds percentage of assets invested in US Dollars are falling (now 53%) and the amount invested in banks is 24%. Additionally the percentage of assets invested in what we would classify as having ‘great business economics’ is 71%, 24% we would be classify more as Special Situations and 5% in cash.

Our job remains to find value where other investors overlook it. In a number of cases this comes from taking a contrarian view (we own 2 stocks in Greece and 5 banks after all!). But our preferred route is to find what we think are well run companies with good economic models, run by excellent and aligned owner managers and buying into them for interesting(even compelling) starting prices. You should expect us to be adding to these types of positions. We very much like the quality of the companies that we own today and the prices at which they trade. The c.22 companies that we own are on an aggregate PE close to half that of wider markets. As such, whilst markets have performed well in recent years our portfolio is not ‘the market’

 

With kind regards,

Andrew Hollingworth, Fund Manager

Friday 21st October 2016

Farnam Street Capital Top Holdings
%
WWE 9%
General Motors 7%
JP Morgan 7%
Biglari holdings 7%
Goldman Sachs 6%
Exor 6%
Sports Direct 6%
Ryan Air 5%
Other Holdings 42%
Cash 5%
Total 100%

This document does not constitute an offer or solicitation to buy or sell any security, fund or other financial instrument in any jurisdiction. It is the responsibility of any person reading this document to observe all applicable laws and regulations in the jurisdiction in which they reside. Any prospective investors in the Funds discussed in the document should refer to the relevant Prospectus, or Private Placing Memorandum, for full information and if in any doubt consult a suitably qualified Financial Adviser.

Readers of this document who are not investors in the above fund should regard this document as for their interest only. It is not an inducement to invest in this or any other investment fund.

The information in this letter is for information purposes only. It represents the opinion of the author and it is not audited.

Related Posts

Holland_logo_RGB Agree

Welcome to Holland Advisors

By continuing to use this website you:
Terms and Conditions
Disclaimer
Privacy Notice

Agreement

Please confirm the following


Please confirm that you have read and understood the following terms of use of this website

THIS PORTION OF THE WEBSITE IS ONLY MADE AVAILABLE TO NON-US INVESTORS AND PROFESSIONAL CLIENTS OR ELIGIBLE COUNTERPARTIES.

The content of this website has been prepared by Holland Advisors (London) Ltd on the basis of information and sources believed to be reliable.

Under no circumstances should any part of this website be construed as an offering or solicitation of an offer for any investment in the products on this site Holland Advisors (London) Limited is authorised and regulated by the Financial Conduct Authority (FRN 538932).

1. Not for U.S. Persons
The provision of the information in this web site does not constitute an offer of securities to any person in the United States or to any U.S. Person as such term is defined under the Securities Act of 1933, as amended. The information contained in this site about Holland Advisors (London) Ltd is not directed to any person in the United States. Funds referred to herein are neither registered under the Securities Act 1933 of the USA, nor are they registered under the Investment Company Act of 1940. Consequently, they cannot be offered for sale or be sold in the USA, its territories, possessions or protectorates under its jurisdiction, nor to nationals, citizens or residents in any of those areas.

No investments or services mentioned on this website are directed at US Persons who are not Eligible Counterparties as defined by the UK Financial Conduct Authority (FCA) Handbook or Qualified Purchasers as defined under the Investment Company Act of 1940. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such distribution or offer is not authorised.

2. Terms and Conditions of Use

IMPORTANT LEGAL NOTICE

THE FOLLOWING TERMS AND CONDITIONS OF USE (“TERMS OF USE”) APPLY TO YOUR ACCESS TO AND USE OF THE HOLLAND ADVISORS (LONDON) LTD WEBSITE (THE “WEBSITE”). EACH TIME YOU ACCESS OR USE THIS WEBSITE, YOU AGREE TO COMPLY WITH, AND BE BOUND BY, THE TERMS OF USE AND ACKNOWLEDGE THAT WE MAY RELY UPON YOUR AGREEMENT. PLEASE READ THE FOLLOWING TERMS OF USE CAREFULLY AND IF YOU DO NOT ACCEPT ANY TERMS OR CONDITIONS, PLEASE DO NOT ACCESS OR USE THIS WEBSITE.

3. Information on the Website
Except where stated otherwise, the information, content and services on this Website (the “Information”) are provided by Holland Advisors (London) Ltd (referred to as “we” and “us”) as at the date indicated on the relevant material.

The Information is provided for personal use and information purposes only. The Information does not take account of the investment objectives, financial situation and particular needs of any particular person and is not general advice to any class of persons. Therefore, you should not rely on the Information and should obtain relevant and specific professional advice in making any investment decision.

Furthermore, nothing on this Website constitutes or should be construed to constitute
(i) an offer, advice, invitation or solicitation from us or our affiliates to buy or sell any investments or securities, futures, options or other financial instruments;
(ii) an invitation or inducement to engage in investment activity or a financial promotion of any kind; or
(iii) investment advice or recommendation.

4. Stock exchange prices and exchange rates
The prices/values shown on this Website in relation to different underlying securities are based on the prices notified to Holland Advisors (London) Ltd as the last sale price of the relevant securities on the stock exchange on which they are traded as at the time and date shown. Those figures may vary throughout the course of, and between, stock exchange trading days, market trading times and business days in general. Holland Advisors (London) Ltd has not verified the figures with the relevant stock exchange and you should verify the accuracy of those figures separately before relying on them.

5. Permitted users of the Website
The laws and regulations of the country from which you access this Website may include restrictions on the distribution of the Information. This Website is not directed at or intended for distribution to or use by any person or entity in any jurisdiction where (by reason of that jurisdiction’s applicable securities laws, person’s nationality, residence or otherwise) such distribution, publication, availability or use of this Website or any part of its contents would be contrary to applicable law or regulation or would subject Holland Advisors (London) Ltd to any registration or licensing requirement within such jurisdiction. If you are such a person or entity, you are not authorised to enter the Website. It is your responsibility to ensure that your use of this Website complies with any restrictions or any applicable local laws regarding use of the Information on this Website. Persons or entities in respect of whom such restrictions apply must not access the relevant pages on this Website.

The Information displayed on this Website contains material that may be interpreted by the relevant authorities in the country where you are viewing this Website as a financial promotion or an offer to purchase securities. Accordingly, if you reside in any such country or fall within the scope of any law that seeks to regulate financial promotions in the country of your residence or in the country in which you are viewing this Website, please cease accessing or using this Website immediately.

If you are uncertain about your position under the laws of the country in which you are viewing this Website, then you should seek clarification by obtaining legal advice from a lawyer practicing in the country of your residence or in the country in which you are viewing this Website before accessing this Website.

You may not use any part of the material or Information on this Website to establish, maintain or provide or assist in establishing, maintaining or providing a stock market for trading in securities.

6. Investment Performance and Accuracy of Information
The Site contains material about the past performance of our Funds. The value of an investment in a Fund may go up as well down so that an investor’s investment in a Fund, when redeemed, may be more or less than the original investment amount. By its nature, investment in a Fund managed by Holland Advisors (London) Ltd is only suitable for sophisticated investors who do not require immediate liquidity for their investment, for whom an investment in a Fund does not constitute a complete investment programme and who fully understand and are willing to assume the high risk involved in the investment programme of a Fund. THE PAST PERFORMANCE OF ANY INVESTMENT, INVESTMENT STRATEGY OR INVESTMENT STYLE IS NOT INDICATIVE OF FUTURE PERFORMANCE.

Whilst the information contained on the Website has been given in good faith and every effort has been made to ensure its accuracy, the Information may not be complete or accurate for your purposes. This Website and the Information is provided on an “as is” basis and Holland Advisors (London) Ltd may not, and has no obligation to, update the Information or correct any inaccuracy which subsequently becomes apparent. The Information and/or opinions and estimates comprised in the Information may be changed or withdrawn without notice and may become outdated. You, therefore, should verify any information or other material obtained from this Website before you use it.

HOLLAND ADVISORS (LONDON) LTD, ITS DIRECTORS OR OFFICERS DISCLAIM ALL REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING BY WAY OF EXAMPLE BUT NOT LIMITATION AS TO RELIABILITY, COMPLETENESS, FITNESS FOR PURPOSE OR ACCURACY OF THE INFORMATION ON THIS WEBSITE OR ON ANY THIRD PARTY WEBSITE LINKED TO THIS WEBSITE.

IN ADDITION, WE DO NOT REPRESENT OR WARRANT THAT THIS WEBSITE OR THE SERVERS THAT MAKE THE WEBSITE AVAILABLE WILL BE UNINTERRUPTED, ERROR FREE, OR FREE FROM INFECTION, VIRUSES, WORMS OR ANY OTHER HARMFUL CODE WHICH MAY HAVE CONTAMINATING OR DESTRUCTIVE PROPERTIES. YOU ARE FULLY RESPONSIBLE FOR ENSURING PROTECTIVE STEPS TO BE TAKEN SUCH AS VIRUS CHECKING.

The Information is assembled from material prepared by Holland Advisors (London Ltd) or its agents but may not include Information made known to Holland Advisors (London) Ltd officers (or agents) subsequent to the date of publication of the Information indicated on the Website. If you use the Information, you do so at your own risk. Please recognise that the previous performance of securities or other instruments does not guarantee or predict future performance.

7. Exclusion of liability

TO THE FULLEST EXTENT PERMITTED BY LAW, HOLLAND ADVISORS (LONDON) LTD ACCEPT NO LIABILITY TO YOU OR ANY THIRD PARTY FOR ANY LOSSES OR DAMAGES, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT DAMAGES, CONSEQUENTIAL OR SPECIAL DAMAGES, LOSS OF USE, DATA OR PROFITS, COSTS OR EXPENSES INCURRED OR SUFFERED BY YOU OR THIRD PARTY, WHETHER IN CONTRACT OR DUE TO NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION WITH THE ACCESS TO, USE OF, RELIANCE ON, OR PERFORMANCE OF THIS WEBSITE OR ANY INFORMATION CONTAINED ON THIS WEBSITE, WHETHER DUE TO INACCURACY, ERROR, OMISSION OR ANY OTHER CAUSE AND WHETHER ON THE PART OF US, OUR SERVANTS, AGENTS OR ANY OTHER PERSON.

NOTHING IN THE TERMS OF USE EXCLUDES, RESTRICTS OR MODIFIES ANY CONDITION, WARRANTY OR LIABILITY WHICH MAY AT ANY TIME BE IMPLIED BY STATUTE OR ANY OTHER APPLICABLE LAW WHERE TO DO SO IS ILLEGAL OR WOULD RENDER ANY PROVISION OF AN AGREEMENT VOID.

8. Third Party Websites
We may provide, on our Website, links to websites operated by third parties as a convenience to you. If you use these other sites, you will leave this Website. If you decide to visit any linked site, you do so at your own risk and it is your responsibility to take all protective measures to guard against viruses or other destructive elements.

Holland Advisors (London) Ltd makes no representations, warranties or guarantees of any kind about any of the content of any other website which you may access by hypertext link through this Website. When you access any other website by means of a link from this Website, you should understand that your access to that other website is independent of Holland Advisors (London) Ltd and Holland Advisors (London) Ltd has no control over the content of the website, nor does Holland Advisors (London) Ltd in any way endorse or approve the content of that website. In no event will Holland Advisors (London) Ltd in any way be liable to you or any other person(s) or organisation(s) for loss or damage (whether direct, indirect, consequential, special or other) for any use of any site linked to it by means of hypertext or otherwise.

9. Indemnity
You agree to indemnify Holland Advisors (London) Ltd and its officers from and against any claim brought by third parties against Holland Advisors (London) Ltd and its officers as a consequence of your breach of the Terms of Use. Furthermore, if your use of this Website results in the need for servicing, repair or correction of equipment, software or data, you assume all costs thereof.

10. Intellectual Property Rights and Licence
The copyright, trade mark or any other intellectual property rights in the Website and the Information are owned by or licensed to Holland Advisors (London) Ltd. You may download or print out a hard copy of individual pages and/or sections of this Website provided you do not remove any copyright or other proprietary notices. Any downloading or other copying from this Website will not transfer title to any software or material to you. You may not reproduce (in whole or in part), transmit (by electronic means or otherwise), modify, link to or use for any public or commercial purpose this Website without the prior written permission of Holland Advisors (London) Ltd. Any rights not expressly granted in the Terms of Use are reserved.

11. Operation of the Website
You should be aware that the internet, being an open network, is not secure. If you choose to send any electronic communications by means of this Website, you do so at your own risk. Holland Advisors (London) Ltd cannot guarantee that such communications will not be intercepted or changed or that they will reach the intended recipient safely.

12. Privacy
Any personal data relating to you will be collected, used and recorded by us in accordance with current data protection legislation, the Terms of Use and our Privacy Policy. You must read our Privacy Policy as it forms part of the Terms of Use.

13. Governing law
The Terms of Use are governed by the laws of England and Wales and the courts of England and Wales will have exclusive jurisdiction over any disputes arising under them.

14. Waiver
If you breach the Terms of Use and we take no action, we will still be entitled to use our rights and remedies in any other situation where you breach the Terms of Use.

15. Our details
This website is owned and operated by Holland Advisors London Ltd. You can contact us at: Holland Advisors London Ltd, The Granary, 1 Waverley Lane, Farnham, Surrey, GU9 8BB.

Updated and effective as of  31st March 2021

Disclaimer

Please read the following conditions of use of this website.
This website is directed at high net worth experienced investors and institutional investors who understand the risks involved with the investments being promoted and it should not be relied upon by retail clients (as defined by Financial Conduct Authority).

The information on this website is issued by Holland Advisors (London) Limited (hereafter referred to as “Holland Advisors”), a limited liability company (7431314) incorporated in England and Wales, which is authorised and regulated by the Financial Conduct Authority (FRN: 538932).

This website is for information purposes only and does not constitute an offer or solicitation to buy or sell securities, funds or any other financial instrument. The information is directed inside the United Kingdom and is not directed at any persons in jurisdictions where it would be against local law or regulation.  In particular, information on this site is not directed at any person, partnership or corporation being resident in the United States of America. Holland Advisors disclaims all responsibility if you access or download any information in breach of any law or regulation of the country in which you reside.

Information on this site
The information provided does not constitute advice. Holland Advisors believes that the sources of the information in this website are reliable. However it cannot and does not guarantee, either expressly or implicitly, and accepts no liability for, the accuracy, validity, timeliness or completeness of any information or data (whether prepared by it or by any third party) for any particular purpose or use or that the information or data will be free from error. Holland Advisors does not undertake any responsibility for any reliance which is placed by any person on any statements or opinions which are expressed herein. Neither Holland Advisors nor any of its directors, officers or employees will be liable or have any responsibility of any kind for any loss or damage that any person may incur resulting from the use of this information. This does not exclude or restrict any duty of liability that Holland Advisors has to its customers under the regulatory system in the United Kingdom. All Information may be changed or amended without prior notice although Holland Advisors does not undertake to update this site regularly.

Marketing Communications
Documents on this site do not constitute investment research as they have not been prepared in accordance with UK legal requirements designed to promote the independence of investment research. Therefore, even if they contain research recommendations they should be treated as marketing communications and as such will be fair, clear and not misleading in line with Financial Conduct Authority rules. These communications are not personal recommendations to you and any opinions cited are subject to change without notice. Holland Advisors takes all reasonable care to ensure that the information on this site is accurate and complete; however no warranty, representation, or undertaking is given that it is free from inaccuracies or omissions. Documents on this site are based on, and contain, current public information, data, opinions, estimates and projections obtained from sources we believe to be reliable. Past performance is not necessarily a guide to future performance. The content of these documents may have been disclosed to the issuer(s) prior to dissemination in order to verify their factual accuracy.

Investments in general involve some degree of risk, therefore Prospective Investors should be aware that the value of any investment may rise and fall and you may get back less than you invested. Value and income may be adversely affected by exchange rates, interest rates and other factors. The investments discussed on this website may not be eligible for sale in some states or countries and may not be suitable for all investors. If you are unsure about the suitability of an investment given your financial objectives, resources and risk appetite, please contact your financial advisor before taking any further action.

Holland Advisors and/or its officers, directors and employees may have or take positions in securities, funds or derivatives mentioned on this site (or in any related investment) and may from time to time dispose of any such securities (or instrument). Holland Advisors manages these potential conflicts of interest internally via its compliance procedures.

Fund Information
Parts of this site may refer to Funds managed or advised by Holland Advisors. These are not solicitations to invest and any potential investors should refer to the “Our Funds” section of the website in order to learn more about these Funds and find out how and where to obtain the relevant full legal documentation.

Linked Websites
This site may be linked to third party websites or contain information provided by third parties. Holland Advisors does not make any representation as to the accuracy or completeness of such websites or information, has not and will not review or update such websites or information, and cautions browsers that any use made of such websites or information is at their own risk. Holland Advisors does not accept any liability arising out of the information contained on any linked website or Information provided by a third party and the use of such sites and information is at your own risk. This does not exclude or restrict any duty or liability that Holland Advisors has to its customers under the regulatory system in the United Kingdom.

Indemnity
You agree to indemnify and defend Holland Advisors, its affiliates and licensors, and the officers, directors, employees, and agents of Holland Advisors and its affiliates and licensors, from and against any and all claims, liabilities, damages, losses, or expenses, including legal fees and costs, arising out of or in any way connected with your access to or use of this website and the Information.

Use of Cookies
If you agree to these terms and conditions a “cookie” might be placed on your computer. A cookie is a packet of information that does not identify individual users of a website, but allows the collection of website activity (such as the number of users who visit our website, the date and time of visits, the number of pages viewed, navigation patterns, what country and what systems users have used to access the site). We can use this information for statistical purposes, which allows us to analyse and improve our website. The cookie will expire automatically after 6 months or you can manually remove cookies in your browser settings.

Copyright, Trademarks and Other Rights
Copyright, trademarks, database rights, patents and all similar rights in this site and the information contained in it are owned by Holland Advisors or relevant third party providers. You may use the Information and reproduce it in hard copy for your personal reference only. The information contained herein and any supplemental documentation provided is confidential and should not be copied, reproduced or redistributed without the prior consent of Holland Advisors.

Governing Law
You agree that your use of this site and any dispute arising from this use is subject to English law and you submit to the jurisdiction of the Courts of England & Wales.

Privacy Notice

This is the privacy notice of Holland Advisors London Ltd our company number is 07431314. Our registered office is at 7 York Road, Woking, Surrey, GU22 7XH.

 

Introduction

This notice describes how we collect, store, transfer and use personal data. It tells you about your privacy rights and how the law protects you.

In the context of the law and this notice, ‘personal data’ is information that clearly identifies you as an individual or which could be used to identify you if combined with other information. Acting in any way on personal data is referred to as ‘processing’.

This notice applies to personal data collected through our website www.hollandadvisors.co.uk.

Except as set out below, we do not share, or sell, or disclose to a third party, any information collected through our website.

 

Data Protection Officer

We have appointed a data protection officer (‘DPO’) who is responsible for ensuring that our privacy policy is followed. If you have any questions about how we process your personal data, including any requests to exercise your legal rights, please contact our DPO, Claire Brunt at  claire@hollandadvisors.co.uk.

 

Personal data we process

1. How we obtain personal data

The information we process about you includes information:

  • you have directly provided to us
  • that we gather from third party databases and service providers
  • as a result of monitoring how you use our website or our services

2. Types of personal data we collect directly

When you use our website, you may provide personal data by submission of data by our Sign Up or Contact Us forms. This can be categorised into the following groups:

  • personal identifiers, such as your first and last names
  • contact information, such as your email address and your telephone number for communication
  • records of communication between us including messages sent through our website, email messages and telephone conversations
  • marketing preferences that tell us what types of marketing you would like to receive

3. Types of personal data we collect from your use of our services

By using our website and our services, we process:

  • technical information about the hardware and the software you use to access our website and use our services, including your Internet Protocol (IP) address, your browser type and version and your device’s operating system
  • usage information, including the frequency you use our services, the pages of our website that you visit, whether you receive messages from us and whether you reply to those messages
  • your preferences to receive marketing from us; how you wish to communicate with us; and responses and actions in relation to your use of our services.

4. Our use of aggregated information

We may aggregate anonymous information such as statistical or demographic data for any purpose. Anonymous information is that which does not identify you as an individual. Aggregated information may be derived from your personal data but is not considered as such in law because it does not reveal your identity.

For example, we may aggregate usage information to assess whether a feature of our website is useful.

However, if we combine or connect aggregated information with your personal data so that it can identify you in any way, we treat the combined information as personal data, and it will be used in accordance with this privacy notice.

5. The bases on which we process information about you

The law requires us to determine under which of six defined bases we process different categories of your personal data, and to notify you of the basis for each category.

If a basis on which we process your personal data is no longer relevant then we shall immediately stop processing your data.

If the basis changes then if required by law we shall notify you of the change and of any new basis under which we have determined that we can continue to process your information.

6. Information we process with your consent

Through certain actions when there is no contractual relationship between us, such as when you browse our website or ask us to provide you more information about our business, you provide your consent to us to process information that may be personal data.

Wherever possible, we aim to obtain your explicit consent to process this information, for example, we ask you to agree to our use of non-essential cookies when you access our website.

We continue to process your information on this basis until you withdraw your consent or it can be reasonably assumed that your consent no longer exists.

You may withdraw your consent at any time by instructing us  claire@hollandadvisors.co.uk.

7. Information we process for the purposes of legitimate interests

We may process information on the basis there is a legitimate interest, either to you or to us, of doing so.

Where we process your information on this basis, we do after having given careful consideration to:

  • whether the same objective could be achieved through other means
  • whether processing (or not processing) might cause you harm
  • whether you would expect us to process your data, and whether you would, in the round, consider it reasonable to do so

For example, we may process your data on this basis for the purposes of:

  • improving our services
  • record-keeping for the proper and necessary administration of our business
  • responding to unsolicited communication from you to which we believe you would expect a response
  • preventing fraudulent use of our services
  • exercising our legal rights, including to detect and prevent fraud and to protect our intellectual property
  • insuring against or obtaining professional advice that is required to manage business risk
  • protecting your interests where we believe we have a duty to do so

 

How and when we process your personal data

8. Your personal data is not shared

We do not share or disclose to a third party, any information collected through our website.

 

Use of information we collect through automated systems

9. Cookies

Cookies are small text files that are placed on your computer’s hard drive by your web browser when you visit a website that uses them. They allow information gathered on one web page to be stored until it is needed for use at a later date.

They are commonly used to provide you with a personalised experience while you browse a website, for example, allowing your preferences to be remembered.

They can also provide core functionality such as security, network management, and accessibility; record how you interact with the website so that the owner can understand how to improve the experience of other visitors.

Some cookies may last for a defined period of time, such as one visit (known as a session), one day or until you close your browser. Others last indefinitely until you delete them.

Your web browser should allow you to delete any cookie you choose. It should also allow you to prevent or limit their use. Your web browser may support a plug-in or add-on that helps you manage which cookies you wish to allow to operate.

The law requires you to give explicit consent for use of any cookies that are not strictly necessary for the operation of a website.

10. Personal identifiers from your browsing activity

Requests by your web browser to our servers for web pages and other content on our website are recorded.

We record information such as your geographical location, your Internet service provider and your IP address. We also record information about the software you are using to browse our website, such as the type of computer or device and the screen resolution.

We use this information in aggregate to assess the popularity of the webpages on our website and how we perform in providing content to you.

 

Other matters

11. Your rights

The law requires us to tell you about your rights and our obligations to you in regard to the processing and control of your personal data.

We do this now, by requesting that you read the information provided at  http://www.knowyourprivacyrights.org

12. Communicating with us

When you contact us, whether by telephone, through our website or by email, we collect the data you have given to us in order to reply with the information you need.

We record your request and our reply in order to increase the efficiency of our business. We may keep personally identifiable information associated with your message, such as your name and email address so as to be able to track our communications with you to provide a high quality service.

13. Complaining

If you are not happy with our privacy policy, or if you have any complaint, then you should tell us.

When we receive a complaint, we record the information you have given to us on the basis of consent. We use that information to resolve your complaint.

14. Retention period

Except as otherwise mentioned in this privacy notice, we keep your personal data only for as long as required by us to provide you with the services you have requested.

15. Compliance with the law

Our privacy policy complies with the law in the United Kingdom, specifically with the Data Protection Act 2018 (the ‘Act’) accordingly incorporating the EU General Data Protection Regulation (‘GDPR’) and the Privacy and Electronic Communications Regulations (‘PECR’).

16. Review of this privacy policy

We shall update this privacy notice from time to time as necessary.