Luiz Felipe Pinheiro de Andrade, Unibanco Asset Management, Sao Paulo
Managing Director - Born in 1963, Mr. Andrade graduated in Mechanical Engineering and Business Administration. He also holds a Master’s degree in Industrial Engineering from Pontifícia Universidade Católica in Rio de Janeiro and a Ph.D. in Finance from the University of Colorado. Prior to joining UAM in 1997, he worked at Ceras Johnson and Booz Allen Hamilton. Mr. Andrade was also an Industrial Engineering Department professor at PUC-RJ, as well as the Finance Department professor at FGV, where he taught Financial Economics and Corporate Finance as part of the Master and Doctorate programs. Mr. Andrade is a member of Revista Brasileira de Finanças’ Editorial Council.
As a center of Unibanco’s strategy, is the mission to introduce opportunities of partnership between us and Foreign Investors or Advisors interested in investing in Brazil through long-term relationships, based on our expertise and “local-flavor” in Brazil and on the presence of Foreign Investors in their local markets; covering all potential Investors and Distribution Channels. After 50 very successful years managing investments in Brazil, we are here to make businesses. Unibanco Group Overview Unibanco is the 3rd largest privately-owned bank (controlled by the Moreira Salles Group) in Brazil and the 5th in Latin America with more than 80 years of history and activity in the market. The Bank operates under a Universal Banking model being present in every segment of the financial markets, offering a broad and complete range of products and services to a customer base of around 20 million retail, private, corporate and institutional clients. On top of its thousands of branches, ISBs and ATMs in Brazil, Unibanco has offices and branches in Luxembourg, Cayman and Assunción and Brokerages in São Paulo, New York and Luxembroug. As of December 2005, Unibanco’s Market-Cap reached US$17.5 billion, with Total Assets of US$43.5 billion and a Credit Portfolio of US$18.9 billion. The Bank’s Net Worth totaled US$4.4 billion with a Net Profit in 2005 of US$872 million. Unibanco’s ratings in Foreign Currency were Moody’s: B2 / NP; Standard & Poor’s: BB- / B and Fitch Ratings: B / BB-. Unibanco is listed both at the NYSE and the Bovespa. For more detailed and updated information, please visit our Investor Relations website: http://www.ri.unibanco.com.br/ing/hom/index.asp Unibanco Asset Management Overview Unibanco has decades of tradition in Asset Management in Brazil. In fact, in 2007 we will celebrate the 50th anniversary of the first Equity Mutual Fund in the Brazilian market. Unibanco manages individual portfolios for Private and Institutional clients since 1974 and 1979 respectively. In 1995, Unibanco Asset Management (UAM) was founded as the First Brazilian financial institution specialized only in Asset Management. Unibanco Asset Management highlights: • Assets under Management of approximately US$20 billion in September 2006. • Complete range of products with proven records in all business segments, asset classes and investment strategies. • 100% Controlled by Unibanco, UAM has been annually reaffirmed with the highest rating for asset management practices (AMP-1) in the scale of Standard & Poor’s since 2001. attesting financial Unibanco Asset Management - AV. das Nações Unidas, 12.901 - 23º andar - São Paulo - 04578-000 - Brazil Telephone: +55 11 2124-5503.
Unifund Brazilian Managers
November, 2006
Mulheres do Morro, c. 1954 óleo sobre tela 162 x 114 cm Emiliano Di Cavalcanti Acervo Instituto Moreira Salles
Unibanco Fund of Funds
• One of the largest fund of funds manager in Brazil
More than USD 2 billions under management Pioneer independent structure focused on fund of funds management Complete product offering targeted to different client profiles
- Retail, Private, Institutional, Corporate, Family Offices - Fund of funds manager for Citibank Private Bank Brazil
• Strict and on-going due diligence process
Allocation limits defined by an Investment Committee comprised of Senior Executives Proprietary systems
- Data base with personal track record of portfolio managers - Quantitative analysis
• Capacity and access to the highest quality and reputable managers
Exploit long term and close relationships Invested in more than 150 funds from 48 managers Monitoring 100% of the industry Also has a unique fund of funds that invests only in new managers
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Manager Selection - Due Diligence
Structure
•Institutional background
Risk / Compliance
•Discipline •Chinese Wall •Risk modeling •Primary managers’ autonomy •Conflict of interests checking
•Organizational structure •Team expertise •Crew management and retention •Fiduciary risk
Investment Process
•Committees •Credit Policy •Research & security selection process •Leverage •Management tools
Operational
•Structure / Contingency •Processes •Internal control •Management reports •Third-party relationships
Products
•Products offering •A dherence to the investment policy •Performance consistency •Liability control
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Portfolio Construction
Strategy Allocation
Effective diversification seeking more style and strategy variety than number of funds • Portfolio allocation in Macro, Relative Value and Long & Short strategies • Complementary and low correlated strategies, covering major Brazilian markets
On-going Analysis
• Monitoring of the underlying managers on a weekly basis Managers’ allocations through their portfolio disclosure and conference calls Strategy evaluation and adherence to stated goals Understanding of the portfolio’s risks • Rankings e Ratings – Proprietary Methodology Identify the best funds of the market: manager evaluation, consistency, performance and measurement of the risks • Portfolio optimization based in historical performance and target return • Quantitative indices analysis. Back tests
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The Unifund Brazilian Managers
Performance, Terms and Conditions
Historical Performance
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Unifund Brazilian Managers
Monthly Returns (net of fees)
Fund January February March April May June July August September October November December Year 3,98% 0,90% -0,10% 1,52% -2,31% 1,92% 0,88% 2,11% 0,47% 1,77% 11,58% 2006 Benchmark 0,38% 0,34% 0,39% 0,37% 0,45% 0,39% 0,48% 0,48% 0,44% 0,47% 4,29% Fund 0,93% 0,21% -0,71% -0,06% 3,26% -0,09% 1,43% 0,38% 5,41% 2005 Benchmark 0,28% 0,25% 0,26% 0,33% 0,29% 0,32% 0,34% 0,36% 2,44%
1,15 1,10 1,05 1,00 0,95
Libor 6 Months
Jul-05
Jan-06
Mar-06
May-06
May-05
Dec-05
Jun-05
Sep-05
Jun-06
Jul-06
Sep-06
Apr-05
Aug-05
Apr-06
Aug-06
Nov-05
Feb-06
Statistics
Highest Monthly Return: Lowest Monthly Return: Accumulated Return (12m): Accumulated Return (since inception): Compound Annualized Return: Annual. Std.Dev. (last 12m): Annual. Std.Dev. (ytd): Annual. Std.Dev. (since inception): 3,98% -2,31% Correlation vs Benchmark: 13,60% 17,62% 11,56% Maximum Drawdown: 5,20% 5,67% 5,02% Date Max DD: Months Down: Months Recover: Negative Months: -2,31% mai-06 1 2 27,78% Correlation vs MSCI World: Correlation vs LB Global Agg: 0,06 0,63 0,00 Sharpe (12m): 1,74
Oct-05
Oct-06
Terms and Conditions
M inimum I nitial I nves tment: M inimum A dditional I nves tment: U p-front Fee: M anagement Fee: P erformanc e Fee: Subs c riptions : Redemptions : A uditors : I nc eption date: U S$ 5 0 ,0 0 0 U S$ 1 0 ,0 0 0 up to 5 % 0 .8 % 1 0 % above L ibor 6 M +5 % M onthly, 7 b.d. prior notic e Q uarterly, 4 5 days prior P ric eWaterhous eC oopers M ay/2 0 0 6
Bloomberg Ticker:
UNBRMA N KY
Since Inception versus Libor 6 months. As of estimated Oct/2006
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Contact Information
Luiz Felipe P. de Andrade – Managing Director of Unibanco Asset Management Aline Leite San Lee Sun – Head of Unibanco Fund of Funds E-mail: fof@uam.com.br Phone: +55 11 2124-5551
Past performance should not be seen as an indication of future performance. This material does not constitute a confirmation of terms nor an offer, recommendation or solicitation to buy or sell and it is proved for informational purposes only. Sales of shares are made on the basis of the offering circular only and are not offered in any jurisdiction in which such offer is not authorized. Investment in the Fund may not be suitable for all investors and prospective investors should consult their professional advisers as to suitability, legal, tax and economic consequences of an investment in the Fund.
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