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Nov 2019: Jardine Strategic – Are you a value investor really?

November 16, 2019

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Jardine Strategic – Are you a value investor? Really?

Nov 2019 ($32)

 

What if we could offer you a share which trades at 0.56x the NAV, and that NAV grows and the NAV was also super prudently priced – a double discount as it were. Would that interest you?

  • Regular readers will know of our longstanding work on investment holding company Exor which has aged well. Today we present another family-run investment holding company which has much similarity to Exor. It looks to us to offer significant value, just as Exor did in 2013 and 2015, for those prepared to do the work.
  • Now, whilst we like the Margin of Safety such shares can offer vs. their Sum of Parts, we also realise the folly of expecting longstanding discounts to NAV to suddenly disappear just because you own the shares! So, what we seek in investment holding company ideas is for them to ideally have a combination of businesses that are high-quality growing compounders and then also a low price vs. a prudent valuation (in Exor’s case in 2015, this was the case with Fiat, Ferrari, CNH et al).
  • The business we highlight today is Jardine Strategic. A longstanding investment holding company under the tutelage of the Keswick family for five generations.
  • Caveat out of the way first: this is an esoteric company and stock. It is a British company incorporated in Bermuda, listed in Singapore but headquartered in Hong Kong. This messiness precludes the stock’s inclusion in many MSCI indices. It also has an opaque corporate structure with cross ownership in its sister company Jardine Matheson which means that its effective share count is actually half the headline figure. Getting this latter point right is key to understanding the value on offer.
  • That out of the way, this is above-all a very prudently run conglomerate with minimal debt (at all levels) and – importantly – a portfolio of rare assets and businesses which are publicly listed. Whilst the parent sits at an attractive discount to an easy to calculate Sum of Parts (NAV), we think several of these individual holdings are in turn very prudently valued versus their asset backing and earnings power also.
  • Simplistically, purchasers of Jardine Strategic shares today get exposure to Hong Kong super prime real estate (valued at 0.33x tangible book), an exceptional south-east Asian food retailer (whose returns are reminiscent of Tesco in its heyday), Mandarin Oriental (also at c.0.3x it Property value) and finally a top-notch Indonesian industrials business (valued at c.12x PE). But you have upside of c.63% to get to these valuations!
  • We confess that (newly promoted to Chairman) Ben Keswick, is to us, something of an unknown quantity compared to say John Elkann. Ben Keswick has maintained a far lower profile than the aforementioned Elkann (who himself is hardly a headline grabber), and this limits our ability to assess his future stewardship of the assets to the same degree. That said, the combination of the value on offer and a strong historical financial track record offsets this risk to a considerable degree.
How far will you go for value?

With a largely ‘developed markets’ list of clients there is a chance that few of our readers will spend sufficient time on an idea such as this. Indeed for us, as an exercise in Equity Research return on capital (i.e. time) this will not be our most profitable idea. That said, we feel it is still a large part of our role to get our clients to look in different places in the search for value and superior longer term returns, particularly when so many predictable companies are priced for perfection these days.

In fact, this is the second time we have completed this exercise, having looked closely at the Jardine conglomerate and its large discount in 2015, but we never published our work. The discount duly narrowed and the shares rose from $27 to c.$44. Weaker Asian markets and protests in Hong Kong have brought the shares down once again. This time to record high discount. We suspect that readers of this piece will either be very interested or not at all. We thus explain our thesis by way of a number of charts and models we have built to better understand the underlying companies. The crucial ones are our, and Jardine’s own, illustration of the Sum of Parts work laid out in Figures 3 and 4. These show our calculation of the company’s intrinsic value and that calculated by the company. However, before looking at these investors must accept that there is complexity in the holding structure of the parent companies, i.e., Jardine Matheson and Strategic. This leads to two important outcomes. Firstly, that the number of shares in issue for Jardine Strategic must be altered to reflect this cross holding. The second being that there are two possible ways to calculate value as a result.

Fig.1 Jardine Group structure

Keswick Jardine Family Matheson Public Jardine Strategic Jardine Pacific Dairy Farm Jardine Motors 75% Jardine Cycle and Carriage Hong Kong Land ASTRA esol$ Mandarin Oriental  Source: Holland Advisors

Fig.2 The company helpfully clarifies the ‘correct’ share count to use!

The weighted average number of shares is arrived at as follows: Weighted average number of shares in issue Companys share of shares held by Jardine Matheson Weighted average number of shares for earnings per share calculation Ordinary shares in millions 2018 1,108 (537) 571 2017 1,108 (527) 581  Source: Jardine Strategic 2018 Annual Report

Sum of Parts – as Mr Market sees it

Sometimes value can be hidden in plain sight. Indeed, Exor has laid out its Sum of Parts or NAV for all investors to see for many years; Fig.3 below shows that Jardine do exactly the same. Whether we choose to take any notice however is up to us. Seemingly few in Asia do, for this is seen as a sleepy conglomerate that pays few dividends, is neither an exciting investment as nothing ever changes, nor is presumed to have a foreseeable catalyst to release any of the value it demonstrates. Just to be upfront, we agree with each of these points but we also think that sometimes when the value on offer is egregious enough, catalysts are not needed, especially if the underlying entity is growing and well managed.

Below is the Jardine look through NAV per share that it discloses to investors every 6 months. Importantly all the figures in this table below are taken from the quoted share prices of each of the respective companies i.e. all Jardine are doing is showing a portfolio of shares that they own significant stakes in and what the total adds up to. We as investors are then able to look at this vs. the market price of Jardine shares, $32 at last trade.

Clearly market prices change and our valuation work shown on page 4 lays out this valuation in a little more detail. It also updates Jardine’s value for current prices. The outcome is a figure lower than the end June NAV of $61. Using two different approaches, due to the holding company structure, we end up with a range of $51-$53. Hopefully readers will note this is still some way higher than $32. However, this is still only part of the story.

Double discounts make things a little more interesting

What is not visible in these calculations is the value we think is also on offer in the underling companies themselves. This is where a far greater amount of work is required but also where we think the real edge lies that investors can have in these shares. Some of these insights are intangible and some more obvious. We tackle them in no particular order

Fig.3 Jardine Sum of Parts

15. Market Value Basis Net Assets Jardine Matheson Hongkong Land Dairy Farm Mandarin Oriental Jardine Cycle & Carriage Other holdings Jardine Strategic Corporate Net asset value per share At 30th June 2019 us$m 7,635 7,577 7,505 1,759 7,934 578 32,988 1.492 34,480 61.10 At 31st December 2018 us$m 10,948 7,413 9,499 2,012 7,671 38,029 734 38 763 68.46  Source: Jardine Strategic (June 2019 Interims)

Fig.4 Holland Advisors Jardine Strategic valuation

Source: Holland Advisors
Double discounts continued

We will start this section by observing that the upside to the current SOTP using the current quoted price we have shown on the previous page is 63%, i.e. that would be the return to shareholders owning a stock today at $32 that tomorrow changed hands for $51. The following sub-company observations we will add to this to give context to this discount.

We will start with Hong Kong Land

The chart below shows the tangible book value per share for Hong Kong Land. Overlaid on top is the Price/Tangible book. It can be seen that while the company has once traded at its book value, mostly it has traded at a discount. However, today’s discount is extremely high particularly when we look at the assets owned and the leverage (or lack of it).

Hong Kong Land assets are high quality commercial, residential and retail assets in super prime Hong Kong locations. Indeed, it is said that c.75% of all prime Hong Kong real estate is held either by Li Ka-shing or Hong Kong Land Company Ltd. Those looking at the companies accounts in more detail will also find the following:

  1. That the assets are valued using discount rates of between 3-4.5%
  2. That despite being a prime location property company the company is net cash!
  3. That these assets have been owned almost forever

Fig.5: Hong Kong Land

 Source: Bloomberg

Accepting our own limitations as property valuers and Hong Kong political experts were we to assume that Hong Kong Land is worth only 0.5x TNAV per share, this would add $7bn to its valuation and $3.5bn to the Jardine pro-rata stake in it.*

(*NB: We will say straight-up that find ourselves uncomfortable in this company as we just cannot believe that the price vs value we are seeing is correct. If you know something we do not please feel free to get in touch and put us straight!)

Mandarin Oriental

Whilst representing only 5% of the Jardine Sum of Parts it is an interesting company when you have a look at its accounts. Whilst Mr Market values it at a function of its earnings power (16x EV/EBITDA), not an unreasonable approach, there are other possible avenues of value that should be considered. In a global sector that has seen many companies move from an asset heavy to asset light, Mandarin Oriental (MO) is a stand out. As we write, its market cap is $2bn. However, as the freehold property owner of 16 of its 32 hotels, it has an adjusted NAV of $5.8bn. The debt burden it carries against this massive asset backing?…$284m!

Were we to value this company at say 60% of its revalued property NAV that would add $1.5bn to its market cap and a pro-rata $1.2bn to Jardine’s 78% stake in it.

Dairy Farm and Jardine Cycle

Combined, these two companies represent 45% of the Jardine valuation we have shown earlier in Fig.4. In truth, what we should really be looking at is Dairy Farm and Astra as Astra makes up the vast majority of Jardine Cycle’s valuation (a quick look at Fig.1 might be in order here to remind you of the ownership maze!). Yet again, both of these companies are separately listed and thus their quoted valuations are used in the Sum of Parts. What is interesting to us is what we have learnt from looking at them using the lens of our ‘Franchise’ approach. Our summary models for each companies’ financial history is shown in the Appendix of this report. We know our comments on each will be superficial in comparison to detailed local analysts, however we think our approach shows:

  • Both companies have had excellent past financial economics (see Appendix for summary financials) making impressive returns on capital and successfully reinvesting those returns for future organic growth.
  • Dairy Farm (a c.28% ROE retailer with limited debt) has historically been valued at what we would consider a higher price, but we think that was partly a function of its impressive growth and the fact this its cash generative model resulted in good dividends. Todays its PE at 18x is much lower than it’s past, but still does not necessarily suggest an egregious mispricing to us. We note its 4% dividend yield due to a cash generative business model, which likely supports its valuation.
  • Astra is also interesting – again due to the strong return on capital it has made over long periods, but also the good nominal growth it has achieved (9% revenue cagr growth for 10+years). Indeed, when looking at Jardine in 2015 we noticed the strength of the Astra business at that time. Astra today, post a recent share piece fall, trades on PE of 12x earnings. Whilst we can see that this valuation is in some way reflective of its exposure to heavy industry machinery, we think it likely undervalues its market position in motorcycles and the overall strength in the compounding ability of the business.
  • In short, we are prepared to label both of these business as solid compounders and think it likely were capital being reinvested in them it would grow at rate of between 5-10% over most investment timeframes. This conclusion is neither precise nor perhaps that insightful in and of itself. However, when assessing Jardine as a parent we feel we need to be approximately right vs. exactly wrong. We also need to know what type of assets we are investing in.
Keswick’s – aligned owner managers?

In this piece we have not written at all about the owner managers we are investing alongside – normally a vital piece of the jigsaw for us. We could spend a great deal of time extracting facts from Wikipedia or other sources on the long history of this family but we feel that adds little.

Our research into them has led to both examples of astute counter cyclical purchases made by the company such as buying the stake in Astra during the depth of the Asian crisis in 1998. Equally it has also thrown up the odd example of poorer capital allocation in much earlier decades. Few of these examples are recent enough we feel to be useful and finding interviews that provide any management insight is very hard indeed. We do however know that members of the Keswick family move around in head positions at the different subsidiary companies. As such their long-term compounding record reflects well on the ability of the family to instigate organic growth from re-investment at least as a backward-looking measure. Additionally, we also note the recent sale of the Jardine Lloyd Thompson and the occasional Mandarin Oriental hotel freehold that is put up for sale.

In comparison to Exor we know very little about this family and their abilities or ambitions yet. We can perhaps conclude at this stage is that:

  1. They have very very long time scales,
  2. They tend to be buy and hold businesspeople
  3. They have an abject dislike of leverage.

As a combination those traits are good starting points. Importantly we have not found evidence of any abuse of minority investors, which we think is an important checklist item in such opportunities. We would love to know more and spend time with Ben Keswick in particular.

Ben Keswick has been a driving force behind the operational success ofthe Group since 2012 and the Board believes that it is important to its continued success that he remains in this role. The Board considers that there is a clear division of responsibilities at board level to ensure an appropriate balance of power and authority.

Machine generated alternative text: Sir Henry Keswick stepped down as Chairman oFthe Company on 31st December 2018 and was appointed Chairman Emeritus from that date He was succeeded as Chairman by Ben Keswick, who retains his position as Managing Director Source: Jardine Strategic Annual Report

Why?

Whilst working on this idea a recurring thought came to us. Why does this opportunity exist? We have decided that it is in part a function of the complexity of the organisation and that this does not sit well with Asian investors who are more interested in faster growth stories. Additionally, we feel this company is not covered well by analysts (only two cover it) and dismissed by many with any under valuation seemingly always being elusive.

We would also make one further point which follows on from our strategy piece we published in the summer (Mr Market’s broken machine). This company is likely a mainstay investment of the Asian/global value brigade, not least due to the points we mention above, but also due to its large size. We also know that value investors worldwide are having funds taken away from them for re-investment in “strategies that work” – as investors and consultants see it. As such they have to sell something… Who is the marginally buyer of these sold shares? Frankly, we cannot find one. Therein lies the opportunity Mr Market presents us with today.

Conclusion and likely upside

In two out of the four assets Jardine owns we feel today’s market prices underestimate their intrinsic value by enough of a margin for us to think that adjusting them somewhat makes sense even when trying to take a prudent approach. As a result, combining our thoughts on Hong Kong Land and Mandarin Oriental would add $4.7bn to our best guess prudent NAV of the Jardine group. Perhaps more importantly all four companies we have looked at control either rare assets, brands or have market power/evidence of great compounded returns. As we have said at the outset of this piece this is a critical point when looking at the possibility of buying a position in an undervalued conglomerate. Is the entity both prudently valued and likely to compound at a good rate? Post our work we can answer ‘yes’ to both.

Adding our adjustments to the value of stakes in Mandarin Oriental and Hong Kong Land Limited to the Sum of Parts given in Fig.4 suggests a more representative, but still prudent, value per share for Jardine Strategic of $60 ($4.7bn uplift on c.$30bn NAV) vs. the previous range of $51-$53. Verses a share price today of $32 that suggests an upside of 87% just to get to fair value for the assets today. As for how such value is realised, or indeed how long it will take, we do not know, but in world of rare assets changing hands at even rarefied prices and where there is leverage aplenty, we find solace in such Margins of Safety. Maybe the right price for all this complexity and lack of control is a 25% discount to an adjusted NAV. That would be as good an investor target price as any other. It would still imply 49% upside.

Buy Jardine Strategic

Andrew Hollingworth & Mark Power

The Directors and employees of Holland Advisors may have a beneficial interest in some of the companies mentioned in this report via holdings in a fund that they also act as advisors to.

Appendix

ASTRA FINANCIALS

PROFITS Sales adj EBIT adj EBIT margin EBITA EBITDA Effective P&L Tax Rate Net Income [Cash from opsl-Capex Share in issue EPS ASSETS Total Fixed Assets Working Capital Net Tangible Assets Taxed RoNTA Asset Tums Total Assets Shareholder Equity Pension Liability Cash ROE LIABILITIES Net Debt Net Debt/EBIT 10 year cagr *DIV/O! 10 year cagr 10 year cagr FY08 0 26% 40,480 0.00 FY08 0 43% 4.7x 0.0 FY08 #DIV/O! FY09 13% 24% 40,480 0.00 FY09 32% 2.4x 962,000.0 16% FY09 1.0x FYIO 11% 19% (884,000) 40,480 0.00 FYIO 26% 2.4x -2% FYIO 1.7x FYII 11% 40,484 0.00 FYII 24% 2.3x 6% FYII 1.8x FY12 11% 40,484 0.00 FY12 47,200,000 20% 1.9x 2% FY12 2.3x FY13 19% 40,484 0.00 FY13 16% 1.9x FY13 2.5x FY14 40,484 0.00 FY14 49, 776,000 17% 1.9x 7% FY14 2.4x FY15 9% 20% 40,484 0.00 FY15 47,596,000 1.8x 17% FY15 2.5x FY16 40,484 0.00 FY16 1.8x FY16 2.3x FYI 7 21% 40,484 0.00 FYI 7 47,269,000 16% 1.9x 12% FYI 7 2.1x FY18 11% 22% 40,484 0.00 FY18 1.8x 11% FY18 2.2x

DAIRY FARM FINANCIALS

PROFITS Sales adj EBIT adj EBIT margin EBITA EBITDA Effective P&L Tax Rate Net Income Cash Earnings = [Cash from ops]-Capex Share in issue EPS ASSETS Total Fixed Assets Working Capital Net Tangible Assets Taxed RoNTA Asset Tums Total Assets Shareholder Equity Pension Liability Cash ROE LIABILITIES Net Debt Net Debt/EBIT 10 year cagr *DIV/O! 10 year cagr 8% 10 year cagr FY08 6,733 0 374 506 333 308 1,348 0.00 FY08 637 0 637 48% 10.6x 2,507 334 27.0 FY08 25 #DIV/O! FY09 7,029 428 6% 427 567 17% 364 219 1,349 0.00 FY09 733 (756) (23) 115% -305.6x 2,806 528 31.1 FY09 (34) -.1x FYIO 7,971 469 6% 475 637 17% 411 1,351 0.00 FYIO 921 (893) 28 17167% 288.8x 3,258 734 33.9 74% FYIO (223) -.5x FYII 9,134 534 6% 541 716 17% 484 517 1,352 0.00 FYII 896 (973) (77) -1807% -118.2x 3,539 930 36.1 62% FYII (466) FY12 9,801 483 486 669 16% 447 408 1,353 0.00 FY12 1,070 (534) 536 179% 18.3x 3,851 1,239 40.2 FY12 (521) -1.1x FY13 10,357 527 559 745 17% 501 387 1,353 0.00 FY13 1,082 (368) 714 14.5x 3,964 1,377 24.0 30% FY13 (638) -1.2x FY14 11,008 528 542 735 16% 509 379 1,353 0.37 FY14 1,219 (494) 725 15.2x 4,316 1,523 37.7 26% FY14 (475) FY15 11,137 440 4% 443 642 17% 424 438 1,352 0.32 FY15 1,141 (530) 611 18.2x 4,821 1,455 71.4 29% FY15 482 1.1x FY16 11,201 468 4% 475 671 469 330 1,353 0.34 FY16 1,100 (426) 673 63% 16.6x 5,129 1,579 52.4 22% FY16 641 1.4x FYI 7 11,289 376 3% 386 585 19% 402 453 1,353 0.30 FYI 7 1,184 (465) 719 15.7x 5,467 1,756 34.2 27% FYI 7 602 1.6x FY18 11,749 413 4% 100 305 92 421 1,353 0.31 FY18 848 (495) 353 8% 33.3x 5,390 1,491 47.6 26% FY18 744 1.8x

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This document does not consist of investment research as it has not been prepared in accordance with UK legal requirements designed to promote the independence of investment research. Therefore even if it contains a research recommendation it should be treated as a marketing communication and as such will be fair, clear and not misleading in line with Financial Conduct Authority rules. Holland Advisors is authorised and regulated by the Financial Conduct Authority. This presentation is intended for institutional investors and high net worth experienced investors who understand the risks involved with the investment being promoted within this document. This communication should not be distributed to anyone other than the intended recipients and should not be relied upon by retail clients (as defined by Financial Conduct Authority). This communication is being supplied to you solely for your information and may not be reproduced, re-distributed or passed to any other person or published in whole or in part for any purpose. This communication is provided for information purposes only and should not be regarded as an offer or solicitation to buy or sell any security or other financial instrument. Any opinions cited in this communication are subject to change without notice. This communication is not a personal recommendation to you. Holland Advisors takes all reasonable care to ensure that the information is accurate and complete; however no warranty, representation, or undertaking is given that it is free from inaccuracies or omissions. This communication is based on and contains 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 this communication may have been disclosed to the issuer(s) prior to dissemination in order to verify its 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 investment discussed in this communication 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 this investment given your financial objectives, resources and risk appetite, please contact your financial advisor before taking any further action. This document is for informational purposes only and should not be regarded as an offer or solicitation to buy the securities or other instruments mentioned in it. Holland Advisors and/or its officers, directors and employees may have or take positions in securities or derivatives mentioned in this document (or in any related investment) and may from time to time dispose of any such securities (or instrument). Holland Advisors manage conflicts of interest in regard to this communication internally via their compliance procedures.

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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 2024
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 The Halt, Smugglers Way, The Sands, Farnham, Surrey, GU10 1NB.
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.

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