UK Equity market valuations compared with Default Quest® Valuation
As at 8th February 2022
Important Information
Past performance is not a reliable indicator of future performance
Investors may not get back the value of their original investment
The value of the Investment Company and the income derived from it may go down as well as up and is not guaranteed
Investing in small and mid-sized companies may involve a higher degree of risk than investing in larger sized companies
The Prospectus and the Key Information Document, available at www.oitplc.com, provide more information about the risk profile of the Investment Company
We draw Readers' attention to the Disclaimers at the end of the presentation
What is Quest®?
Highly revered cashflow-based valuation tool, used as part of our process
Equities Cash Flow Specialists
26 year history (Quest® launched in 1996 by Terry Smith at Collins Stewart)
15 person Fintech business acquired by Canaccord Genuity in 2011
Combines conventional and proprietary Quest® metrics
Analysis on 17,500+ global stocks in 47 countries
Research support tool for over global 150+ Investment Institutions
Idea Generation and Idea Validation
Web-basedresearch - www.canaccordquest.com
Strong track record of helping investors enhance Alpha Generation and Capital Preservation
Source: Canaccord Quest®
3
UK Equities appear attractive globally
US Equities' premium to Quest® default value has increased progressive since 2012
80%
60%
40%
20%
0%
-20%
Number of companies1
Aggregate Market Value (Discount)/Premium to Default Quest® fair value
70%
41%
29%
27%
26%
13%
17%
8%
5%
-8%
World
USA
Europe ex UK
AsiaPac inc Jap
UK
Today
Average 2002-21
17,021
3,416
2,446
8,393
1,126
Market cap total
$101trn
$48trn
$12trn
$30trn
$4trn
World equities are trading at a material premium to Quest® default value, largely driven by the USA
USA equities premium to Default Quest® fair value peaked at >100% during 2020/21
UK equities trade at a absolute discount to fair value and with a wide spread long term average valuations
Source: Canaccord Quest® as at 8th February 2022. Odyssean Capital. 1 Only includes UK quoted companies where there is at least one broker forecast. Mid values are implied. Past performance is no guarantee of future performance
and the value of investments can go up and down.
4
Within UK Equities, UK Small Companies appear most mispriced
Data implies only Mid cap equities are trading at a premium to Quest® fair value
Aggregate Market Value (Discount)/Premium to Default Quest® fair value
40%
37%
30%
21%
25%
20%
10%
5%
5%
1%
0%
-10%
-8%
-13%
-20%
UK Large
UK Mid 1
UK Small and Mid
UK Small
Today
Average 2002-2021
Market cap range
>£3.6bn
£750m - £3.6bn
Up to £3.6bn
Up to £750m
Number of
357
171
668
497
companies1
Market cap total
£2,520bn
£321bn
£390bn
£69bn
OIT Focus
OIT's investment focus appears to be on the most undervalued section of UK equities
Source: Canaccord Quest® as at 7th February 2022. Odyssean Capital. 1 Only includes UK quoted companies where there is at least one broker forecast. Mid values are implied. Past performance is no guarantee of future performance
and the value of investments can go up and down.
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Disclaimer
Odyssean Investment Trust plc published this content on 09 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2022 09:28:00 UTC.
Odyssean Investment Trust PLC is a United Kingdom-based closed-ended investment company. The Company's investment objective is to achieve attractive total returns per share principally through capital growth over a long-term period. It primarily invests in smaller company equities quoted on markets operated by the London Stock Exchange, where the portfolio manager believes the securities are trading below intrinsic value and where this value can be increased through strategic, operational, management and/or financial initiatives. Where the Company owns an influencing stake, it will engage with other stakeholders to help improve value. The Company may, at times, invest in securities quoted on other recognized exchanges and/or unquoted securities. The Company may hold cash in the portfolio from time to time to maintain investment flexibility. There is no limit on the amount of cash which may be held by the Company from time to time. Its investment manager is Odyssean Capital LLP.