Transcript SANTA FÉ AQUARIUS – MULTI MARKET MULTI-STRATEGY (LONG TERM INVESTMENT FUND) SF Aquarius FIM LP Management “Focus on Sustainability – Combining fixed income.

SANTA FÉ AQUARIUS – MULTI MARKET MULTI-STRATEGY (LONG TERM
INVESTMENT FUND)
SF Aquarius FIM LP Management
“Focus on Sustainability – Combining fixed income with
directional trading and arbitrages in equities”
August 2010
Disclaimer
Fund distributed by BNY Mellon Serviços Financeiros DTVM S/A. The investment in the fund is not covered by either
the administrator or by the investment manager. The fund does not have any insurance policy to cover losses and is
not guaranteed by the Fundo Garantidor de Crédito - FGC. Past performance is no guarantee of future results.
Potential investors should read carefully the fund´s offering documents before any investment decision is made. This
fund invests in derivative instruments as part of its investment policy. Investment in this fund can involve significant
risks and investors could lose all or a substantial portion of his/her investment. If the losses exceed the net asset
value of the fund, the Brazilian regulation states that investors may be asked to cover the excess losses.
The material contained herein is for informational purposes only and should not be considered as offer to sell, or the
solicitation of any offer, to buy or sell any securities or any other financial instruments. SANTA FÉ Porfólios does not
offer any shares of funds or any other security.
SF Aquarius FIM LP
Goal:
Obtain returns greater than CDI (Brazilian Interbank Rate) through a diversified portfolio
of strategies, using the diversity of financial instruments, seeking an appropriate balance
between risk and return.
Target Group:
Ordinary investors seeking higher, above average returns than those generally obtained
in the financial market, with a higher, above average volatility than that of the fixed
income assets available in the market.
Methodology:
Act on the following markets: stocks, commodities, financials and their derivatives in
Brazil and abroad, including purchasing, sale, covering, hedging, spreads and arbitrage,
following capital allocation methodologies with rigorous risk control.
Expected Result:
Yields above mid and long term fixed income securities rates with low volatility.
History
1981
2002
Founded in 1981, as an
investment
consulting
company,
SANTA
FÉ
started
its
activities
managing resources from
its partners and a group of
customers
that
was
following
its
founder,
Fernando
Cardoso
Luis
Bueno.
During its 30 years of
management, SANTA FÉ
kept a familiar structure,
gathering its tradition and
experience with a unique
and personal service to its
customers.
Santa Fé is an independent
asset
management
company that operates in
the Stock Market since
then.
2007
January: Santa Fé
launches the fund Aquarius
FIM LP.
Since 2006, the team
decided to reduce it´s
volatility by 2% to 3% and
be more conservative.
Until that, our fund
achieved great
performance above our
bechmark(CDI).
2008
During last year, Santa Fé
became signatory to PRI –
Principles for Responsible
Investment. These principles
are a series of voluntary
practices adopted by a group of
institutional investors and asset
managers comitted to
integrating environmental,
social and corporate policy.
Santa Fé also participates in
CDP - Carbon Disclosure
Project. Its mission is to
facilitate a dialog between
investors and companies,
backed by high quality
information in search of
rational answers to global
climate change
Beside that, Santa Fé is hardily
engaged with many social
projects like:
• Lar da Benção Divina
• Smiles for books
January: Nearly US$ 82
million of AUM. Of this,
55% comes from foreign
investors, 30% from
individual porfolios and
15% from our Fund –
Aquarius FIM LP.
July: The Investment
Committee started a new
strategy to reach
institucional clients, like
national and international
family offices and assets
allocators.
September: Santa Fé
develops the Agribusiness
Department
December: Forecasts
opening Off Shore Fund.
Santa Fé has always made decisions in light of its regard for the human being; valuing interpersonal
relations, social responsibility and respect for the environment. The company helps manage the Lar da
Benção Divina, an institution set up 50 years ago. Today it is a day-care center, accredited by the Municipal
Government of São Paulo, catering to 200 children.
History
2009
Our goal is always reach the best performance. For that, SF Aquarius FIM is prepared to face any scenario
Accumulated Performance Between - January 2008 until August 2010
Annual Return - 2008 / 2009 / 2010
200%
Crisis Scenario
Prosperity Scenario
40,0%
35,5%
Stock Market falls more
Stock Market rises more than 80%
30,0%
30,98%
than
SF
and SF Aquarius has a turnover
more
up 40% on the Fixed Income
40%
Aquarius
20,0%
150%
and
rises
Securities
than 13%.
10,0%
jul/10
mai/10
mar/10
jan/10
nov/09
set/09
jul/09
mai/09
mar/09
jan/09
nov/08
set/08
jul/08
mai/08
-20,0%
mar/08
-10,0%
jan/08
0,0%
3,13%
5,70%
100%
-30,0%
50%
-40,0%
-50,0%
0%
Aquarius
CDI
Ibovespa
2008
Fixed Income Securities (CDI)
2009
2010
Santa Fé Aquarius FIM
SANTA FÉ has always made decisions in line with its regard for the human being, valuing interpersonal relations, social
responsibility and respect for the environment. Four pillars supports the firm´s commitment to clients:
PERFORMANCE
Seeking top gains with
low risks
SOLIDITY
Solid custody, auditing
and controllership
partners
SERVICE
Correct valuation of
people and
interpersonal relations
SUSTAINABILITY
Working for a better
world
SF Aquarius FIM LP
Our Differential :
 We offer full customer service, personal and exclusive;
 Fully independent firm. Our commitment is with the investor; eliminating conflicts
of interest and ensuring that decisions should be taken exclusively to obtain the best
result for the investor;
 30 years of Tradition with a familiar structure since the company´s launch;
 Strong Risk Control;
 Social Responsible Investment.
Social Commitment
 Lar da Benção Divína: Is an institution set up 50 years ago. Today it is a day-care center, accredited by
the Municipal Government of São Paulo, attended by 200 children. SANTA FÉ participates directly in the
administration and also acts as fundraiser, having obtained support from large local and international companies .
 Smiles for Books: SANTA FÉ is also helping provide children access to education, through partnership
with local rural communities creating educational opportunities, establishing educational infrastructure and
libraries.
About SF Aquarius FIM LP
Management Company: Santa Fé Portfolios Ltda
Manager: Paulo Battistella Bueno
Administration: BNY Mellon Serviços Fin DTVM S/A
Custody and Settlement : Bradesco S/A
Auditor: KPMG
ANBID Classification: Multi-Market with Equities
without Leverage
Minimum Initial Investment: R$ 1.000,00 (One
thousand)
Maximum Initial Investment: None, once the
maximum percentage of FUND shares that can be
held by a single share holder, i.e. fifty percent (50%),
is complied with.
Minimum Handling: R$ 500,00 (Five hundred)
Minimum amount in subsequent purchases /
sales: R$ 500.00
Minimum outstanding balance: R$ 500,00
Grace period: N/A
Date of Conversion of Quota : Same day of the
request rescue (Time limit until 14h ) for value under
or equal to R$ 1.000.000 (One Million). And for value
above in the 3th business day.
Date of payment of rescue: First business
day following the date of conversion of
quotas for value under or equal to R$
1.000.000 (One million). And for value above
in the 4th business day.
ADM rate: 2% per year.
Rate Performance : 20% above CDI
(Brazilian Interbank Rate)
IOF: Free for applications with more than 30
days
Taxation: Long Term
Tax fees by a securities portfolio with an
average tenor above 365 days:
22,5% until 180 days
20% between 181 and 360 days
17,5% between 361 and 720 days
15% above 720 days
Partners Manager
Fernando Cardoso Luis Bueno - Partner and Head of Complaince Area
Fernando Bueno is the founding partner of Santa Fe, acting in the capital markets for 35 years. Coordinated the deployment of
the markets for Gold and Futures in Brazil, being a pionerer on using Technical Analysis of the markets in portfolio managing. In
the period from 1971 to 1981 he was managing partner in Bueno, Vieira, Pereira Lopes & Associates CVC SA, an institution of
recognized market leadership, Member of the Board of BOVESPA - BOVESPA (1974-1976.; Founder and vice chairman of the
National System of Compensation Business with the Commodities Term SA (1977-1981). Fernando has a Bachelor of Law from
the University of Sao Paulo, and also studied Financial Administration at Stanford University - CA - USA
Paulo Battistella Bueno – Partner Manager of the Fund SF Aquarius LP FIM
Paulo Bueno has been a partner at Santa Fe since 1989 and the manager of the Santa Fe Fund Aquarius. He is also the director
responsible for the management of portfolios for domestic and foreign investors, specialist in risk control and one of the first to
use Technical Analysis of the markets in portfolio management. Participated in the Annual Telerate Technical Analysis
Conference in New Orleans (LA), Los Angeles (CA) and Washington (DC) in U.S. Paulo has a Bachelor of Law from the
University of Sao Paulo (USP).
Sergio Bueno Battistella - Partner and Head of Agribusiness Area
Sergio Bueno has been a partner at Santa Fe since 1987 and has extensive experience in national and international financial
markets, having worked in the management of Investment Clubs, Investment Funds and Portfolios at Santa Fe for more than 15
years. He is a specialist in developing hedge and risk control strategies for portfolio management. Currently he is dedicated
to the structuring of new products related to agribusiness. Sergio has a Bachelors in Business Administration by the FGV –
Fundação Getúlio Vargas (1990).
Sergio Luiz Gilani - Manager of the Fund SF Aquarius LP FIM
Sergio Gilani has been a consultant and manager of portfolios in Santa Fe since 1983. He has worked in Crefisul Investment
Bank S/A as an assistant controller and in the BOVESPA (BOVESPA) as an auditor of brokerage companies. Participated at
Telerate Technical Analysis Annual Conference in New Orleans (LA) and also participated on the International Stock Market New York and Chicago (USA) Seminars in 1986. Sergio has a Bachelors in Business Administration, from the Paes de Barros
University and had a specialization in finance at the School of Administration Getúlio Vargas (FGV-SP).
Investment Policy
Goal: We believe the best way to achieve consistency in investments
is through a disciplined asset selection process.
 Scenarios : Investment Committee;
 Research: External Analysts;
 Consensus: Construction of Portfolio
 Implementation: Portfolio Manager;
 Risk Control: V@R, Stress Testing, Trailing Stops
 Control Allocation: Portfolio proposed x Risk Implemented
 Monitoring of performance: Indexes are used to measure the volatility, the rate of
return and Sharpe Generalized.
Investment Process
Investment Committee Structure
 Broad evaluation of both the internal and the external political and economical scenario.
 Market evaluation (Stock Market, FX, Interest Rates, Securities, Foreign Debt).
 Macro trades are defined for each market.
 The Committee defines an allocation of market risk (ex.: 50% of the risk will be allocated to interest rate,
25% on Stock market, 25% in FX).
 Following this risk allocation, managers structure the positions in accordance to each investment policy
 Amongst our strategies, managers use technical analysis (Graphics) and Market Timing;
 The Investment Committee determines the stress scenarios used to calculate the portfolio´s risk.
Administration, NAV Calculation and Accounting
 The BNY Mellon Serviços Financeiros DTVM is responsible for the SF Aquarius FIM LP
Compliance
 Risk Control is also implemented by BNY Mellon Serviços Financeiros DTVM S.A, as well as a
strong internal control developed by our management team. (V@r and Stress Testing)
 The Investment Committee analyzes all open trades on a weekly basis, which enables the
decision-making as to whether maintain, increase or decrease the portfolio’s positions.
Management Guidelines:
I.
Opportunity
II.
Insurance
III.
Risk Control
IV.
Low Volatility
V.
Sustainability
I. Opportunity :

Equities and Options

Market Timing

Agility
II. Insurance:

The directional trades have always some kind of insurance (hedge) to:
 Avoid losses in case of maximum stress
 Serve as “balance” to reduce volatility

Our confidence in the market defines the intensity and the form of the
insurance
III. Risk Control:

Our risk limit is 2 x CDI (Brazilian Interbank Rate) per month; what means that in the
worst scenario, the fund could have negative returns of 1 CDI. However, since 2003,
we had no negative months and in 2006 we implemented a strong risk control
mechanisms.

We control the positions individually

10% STRESS TEST limit
IV. Low Volatility:

Goals

Annualized volatility around 5%

Performance around 140% of the CDI (Brazilian Interbank Rate)
Our insurance strategies protect against major losses and also reduce our volatility that is
around 5% per year.
V. Sustainability:
A global trend over the past few years points to investors seeking out socially
responsible and sustainable companies, in the belief that, in the long run, these
companies will be more apt to face up to economic, social and environmental
threats. Such actions are known as “socially responsible investing” (“SRI”); our
management practices at SF Aquarius reflect this profile; for this reason, the fund
invests, preferentially, in companies included in the ISE – Corporate Sustainability
Index, implemented by BOVESPA. The index is composed of a select group of
companies, highly committed in terms of sustainability and social responsibility.
Consideration is given in the decision-making process to the answers provided by
companies to the annual questionnaire formulated by the CDP – Carbon Disclosure
Project concerning the emission of gases contributing to the greenhouse effect, and
strategies concerning climate change management.
21/8/2009
28/8/2009
4/9/2009
11/9/2009
18/9/2009
25/9/2009
2/10/2009
9/10/2009
16/10/2009
23/10/2009
30/10/2009
6/11/2009
13/11/2009
20/11/2009
27/11/2009
4/12/2009
11/12/2009
18/12/2009
25/12/2009
1/1/2010
8/1/2010
15/1/2010
22/1/2010
29/1/2010
5/2/2010
12/2/2010
19/2/2010
26/2/2010
5/3/2010
12/3/2010
19/3/2010
26/3/2010
2/4/2010
9/4/2010
16/4/2010
23/4/2010
30/4/2010
7/5/2010
14/5/2010
21/5/2010
28/5/2010
4/6/2010
11/6/2010
18/6/2010
25/6/2010
2/7/2010
9/7/2010
16/7/2010
23/7/2010
30/7/2010
6/8/2010
13/8/2010
20/8/2010
Performance - In local currency R$
10,0%
Rentabilidade - Aquarius x CDI
252 Períodos
7,5%
5,0%
2,5%
0,0%
-2,5%
Aquarius
CDI
Aquarius
CDI
21/8/2009
28/8/2009
4/9/2009
11/9/2009
18/9/2009
25/9/2009
2/10/2009
9/10/2009
16/10/2009
23/10/2009
30/10/2009
6/11/2009
13/11/2009
20/11/2009
27/11/2009
4/12/2009
11/12/2009
18/12/2009
25/12/2009
1/1/2010
8/1/2010
15/1/2010
22/1/2010
29/1/2010
5/2/2010
12/2/2010
19/2/2010
26/2/2010
5/3/2010
12/3/2010
19/3/2010
26/3/2010
2/4/2010
9/4/2010
16/4/2010
23/4/2010
30/4/2010
7/5/2010
14/5/2010
21/5/2010
28/5/2010
4/6/2010
11/6/2010
18/6/2010
25/6/2010
2/7/2010
9/7/2010
16/7/2010
23/7/2010
30/7/2010
6/8/2010
13/8/2010
20/8/2010
Volatility
7,2%
Volatilidade Anualizada - 252 Períodos
6,4%
5,6%
4,8%
4,0%
3,2%
2,4%
1,6%
0,8%
0,0%
Aquarius
21/8/2009
28/8/2009
4/9/2009
11/9/2009
18/9/2009
25/9/2009
2/10/2009
9/10/2009
16/10/2009
23/10/2009
30/10/2009
6/11/2009
13/11/2009
20/11/2009
27/11/2009
4/12/2009
11/12/2009
18/12/2009
25/12/2009
1/1/2010
8/1/2010
15/1/2010
22/1/2010
29/1/2010
5/2/2010
12/2/2010
19/2/2010
26/2/2010
5/3/2010
12/3/2010
19/3/2010
26/3/2010
2/4/2010
9/4/2010
16/4/2010
23/4/2010
30/4/2010
7/5/2010
14/5/2010
21/5/2010
28/5/2010
4/6/2010
11/6/2010
18/6/2010
25/6/2010
2/7/2010
9/7/2010
16/7/2010
23/7/2010
30/7/2010
6/8/2010
13/8/2010
20/8/2010
Sharpe Index
2,3
Índice de SHARPE Generalizado - 252 Períodos
1,8
1,3
0,8
0,3
-0,2
-0,7
-1,2
Aquarius
AWARD of The Best Funds by Exame Guide Magazine

Who did the survey: Exame Guide from Abril Publishing Company

Where: The entire brazilian territory

When: From July 2007 to July 2008

Goal: To identify funds that have the best relation between risk and
return and also look at the risk that the investor had to take - the risk is
calculated by the oscillation of the daily quota of funds.

5 Star Award: Represents the funds that are among the best 10% in
that Goal

Santa Fe was in 5th place among the best multimarket funds without
leverage, which received 5 stars in 2008 by Exame magazine Guide
Ranking Guia Exame – ago/2008
Asset Under Management
Santa Fé Portfolios Ltda
Assets Under Management:
Funds: US$ 22,11 million (U$/R$1.80)
Individual portfolios: US$ 124.87 million
Foreign Investors: US$ 68,64 million
CEO – Fernando Luis Cardoso Bueno – [email protected]
Fund Manager - Paulo Battistella Bueno – [email protected]
Av. Engenheiro Luis Carlos Berrini, 1297 2º andar - Brooklin
04571-010 ۰ São Paulo ۰ SP ۰ Brasil
TEL: 55 11 5508-8020 ۰ FAX 55 11 5505-3130
[email protected]
www.santafe.com.br
Administrador / Distribuidor
BNY Mellon Serviços Financeiros DTVM S/A (CNPJ: 02.201.501/0001-61)
Av. Presidente Wilson, 231, 11º andar, Rio de Janeiro, RJ, CEP 20030-905
Telefone: (21) 3974-4600 – Fax: (21) 3974-4501
www.bnymellon.com.br/sf
Principles for Responsible Investment & Carbon Disclosure
Project
PRI (Principles for Responsible Investment) - In March 2008, Santa Fé Portfolios
became a signatory to PRI, an initiative by the UN General Secretariat and
implemented by the United Nations Environment Programme Finance Initiative (UNEP
FI) and to the UN Global Compact. These principles are a series of voluntary practices
adopted by a group of institutional investors and asset managers committed to
integrating environmental, social and corporate policy making with processes of
investment
assessment
and
decision-making.
CDP (Carbon Disclosure Project) - SANTA FÉ became a signatory to CDP, whose
mission is to facilitate a dialog between investors and companies, backed by high
quality information in search of rational answers to global climate change.
CDP offers the investment community information concerning greenhouse relevant gas
emissions and administrative climate-change strategies. Through its data bank, this
information is available for comparative analysis, adding value to investors and to a
wide range of interested parties.
Meaningful Performance
X,xx%
0,00%
We believe that performance is more than just a number, we believe in meaningful performance.
We believe it is possible to obtain good performance, aligning investors to society’s
goals, contributing to the community development and helping to protect the
environment.