PRISM CHARTBOOK GBP, USD & EUR

Transcription

1 PRISM CHARTBOOK GBP, USD & EUR February 2019 Platform Investment Treasury

2 Contents Strategy Overview 3 Master Investment Strategy 4 Investment Commentary 5 Horizon 1 6 Horizon 1+ 7 Horizon 2 8 Horizon 2+ 9 Horizon 3 10 Horizon Horizon 4 12 Horizon 5 13 Horizon 6 14 Horizon 8 15 Horizon Enhanced Growth 17

3 Master Investment Strategy December 2018 Strategy Overview The Master Investment Strategy pursues a strategy of maximum diversification, investing across a wide range of asset classes including equities, bonds, property and alternatives, in order to maximise returns per unit of risk. It is not necessary for the strategy to target aggressive returns, but to achieve an optimal balance between risk and return. The underlying assets of the Master Investment Strategy are carefully selected to create a highly diversified portfolio largely consisting of individual securities, although investment trusts, exchange traded funds, actively managed funds and other investments may also be used. Master strategy allocations Equity Bonds High Yield Property Commodity Alternative Cash PRISM Strategy Overview PRISM offers a full spectrum of defined risk-return profiles, with performance driven from a single optimal investment strategy. This Master Investment Strategy is a highly diversified investment portfolio that aims to optimise returns per unit of risk. Each PRISM profile has a defined mean return and a defined volatility which, together with the performance of the Master Investment Strategy, are used to calculate returns in each period. These defined risk-return profiles are published in advance, providing investors and their advisors clarity as to the expected performance characteristics of their investment. Some profiles enjoy an element of capital protection over their stated investment time horizon, giving greater peace of mind to investors with less risk appetite.

4 Master Investment Strategy Expected Mean Return: 7.1 Expected Volatility: 7.0 Investment Time Horizon: 5 years Returns 3 months 2.2% - 6 months -2.4% - 1 year 1.1% 7.3% - Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 3 years 23.9% 6.3% 5 years 24.9% 6.7% 10 years 112.7% 7. Annualised 7.8% 7.1% MIS H1 H1+ H2 H2+ H3 H3+ H4 H5 H6 H8 H10 Enh Returns Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 MIS H1 H1+ H2 H2+ H3 H3+ H4 H5 H6 H8 H10 Enh Expected Mean Return: 7.85% Expected Volatility: 7.0 Investment Time Horizon: 5 years 3 months 3.3% - 6 months year 0.8% 7.3% 3 years 25.7% 6.3% 5 years 26.2% 6.7% 10 years 112.6% 7. Annualised 7.8% 7.4% Expected Mean Return: 6.2 Expected Volatility: 7.0 Investment Time Horizon: 5 years Returns 3 months 2.5% - 6 months -2.6% - 1 year 0.4% 8.1% - Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 3 years 20.8% 6.6% 5 years 20.3% 6.9% 10 years 102.8% 7.1% Annualised 7.3% 7.4% MIS H1 H1+ H2 H2+ H3 H3+ H4 H5 H6 H8 H10 Enh 4

5 Investment Commentary The strategy had a strong month contributing to a year to date performance of 4.76%. Equities provided almost all of the gains in February with little contribution from other asset classes. Increasing optimism surrounding US-China trade talks and further dovish comments from Federal Reserve Chair Jerome Powell saw global equities making further progress during the month, albeit at a steadier pace than January. Reports of Chinese stimulus measures lifted sentiment further. The strategy had a strong month contributing to a year to date performance of 4.76% The Q4 earnings in the US were solid with earnings-per-share growth of approximately 13%. The probability of another US government shutdown waned with news that President Trump was closer to a border spending deal. As a result, US equities were our strongest performing assets and contributed a third of the overall performance in February. UK equities performed well, also contributing a third, but performance was held back by a strengthening pound as Brexit negotiations progressed and the possibility of an extension to Article 50 was considered by parliament. With the sharp rebound in equity markets, we have been gently de-risking the strategy from a more bullish position by topping up our bond exposure. There have been some signs of weakening momentum in the global economy with Germany narrowly avoiding a technical recession, having recorded no growth in Q4. Gold and silver prices retreated in February after a strong couple of months and we have used the opportunity to increase our allocation and further protect the strategy. 5

6 Horizon 1 Strategy 15% H1 Defined Mean Return: 1. Defined Volatility: 0. Over Full Time Horizon: 5% 3 months 0.3% - 6 months 0.2% - 1 year 0.8% 0.5% 3 years 3.8% 0.4% 5 years 5.4% 0.5% 10 years 13.1% 0.5% Annualised 1.2% 0.5% 15% H1 Defined Mean Return: 2. Defined Volatility: 0. Over Full Time Horizon: 5% 3 months 0.7% - 6 months 0.8% - 1 year 1.8% 0.5% 3 years 5.7% 0.4% 5 years % 10 years 13.9% 0.5% Annualised 1.3% 0.7% 15% H1 Defined Mean Return: 0.3 Defined Volatility: 0. Over Full Time Horizon: 99% 5% 3 months 0.2% - 6 months -0.2% - 1 year -0.1% 0.6% 3 years 0.9% 0.5% 5 years 0.8% 0.5% 10 years 5.8% 0.5% Annualised 0.6% 0.5% 6

7 Horizon 1+ Strategy 2 15% 7 4 H1+ Defined Mean Return: 2.0 Defined Volatility: 1.2 Over Full Time Horizon: 1 5% -5% 3 months 0.6% - 6 months year % 3 years 6.1% 1. 5 years 8.1% years 20.9% 1. Annualised 1.9% % 7 4 H1+ Defined Mean Return: 2.9 Defined Volatility: 1.2 Over Full Time Horizon: 1 5% -5% 3 months months 0.7% - 1 year 2.3% 1.3% 3 years 8.7% 1. 5 years 10.1% 1.1% 10 years 23.2% 1.1% Annualised 2.1% 1.2% 2 15% 7 4 H1+ Defined Mean Return: 1.0 Defined Volatility: 1.2 Over Full Time Horizon: 98% 1 5% -5% 3 months 0.4% - 6 months -0.4% - 1 year 0.1% 1.4% 3 years 3.1% 1. 5 years 3.1% 1.1% 10 years 13.2% 1.1% Annualised 1.2% 1.1% 7

8 Horizon 2 Strategy H2 Defined Mean Return: 3.0 Defined Volatility: 2.2 Over Full Time Horizon: 99% 3 months 0.9% - 6 months -0.4% - 1 year 1.2% 2.2% 3 years 9.2% 1.9% 5 years 11.3% 1.9% 10 years 33.1% 2. Annualised 2.9% 1.9% H2 Defined Mean Return: 3. Defined Volatility: 2.2 Over Full Time Horizon: 99% months 1.4% - 6 months 0.4% - 1 year 1.6% 2.3% 3 years 10.9% 1.9% 5 years 12.4% years 35.1% 2.1% Annualised 3.1% 2.2% H2 Defined Mean Return: 2.0 Defined Volatility: 2.2 Over Full Time Horizon: 97% months 0.8% - 6 months -0.7% - 1 year 0.3% 2.5% 3 years 6.2% 2. 5 years 6.5% years 25.5% 2. Annualised 2.3% 2.1% 8

9 Horizon 2+ Strategy H2+ Defined Mean Return: 4.0 Defined Volatility: 3.4 Over Full Time Horizon: 97% 3 months 1.2% - 6 months -0.9% - 1 year 1.2% 3.5% 3 years 12.4% 2.9% 5 years 14.2% years 48.6% 3.1% Annualised % H2+ Defined Mean Return: 4.8 Defined Volatility: 3.4 Over Full Time Horizon: 97% months 1.8% - 6 months 0.1% - 1 year 1.5% 3.5% 3 years 14.5% 2.9% 5 years % 10 years 51.1% 3.2% Annualised 4.2% 3.4% H2+ Defined Mean Return: 3.0 Defined Volatility: 3.4 Over Full Time Horizon: months 1.3% - 6 months -1.2% - 1 year 0.3% 3.9% 3 years 9.4% 3. 5 years 9.6% 3.1% 10 years 39.8% 3.1% Annualised 3.4% 3.2% 9

10 Horizon 3 Strategy 9 65% 7 4 H3 Defined Mean Return: 5.0 Defined Volatility: 4.6 Over Full Time Horizon: 4 15% -1 3 months 1.6% - 6 months -1.4% - 1 year 1.2% 4.8% 3 years 15.7% 4. 5 years 16.8% 4.2% 10 years 63.6% 4.3% Annualised % 9 65% 7 4 H3 Defined Mean Return: 5.8 Defined Volatility: 4.6 Over Full Time Horizon: 4 15% -1 3 months 2.3% - 6 months -0.3% - 1 year 1.3% 4.8% 3 years years 19.4% 4.2% 10 years 68.4% 4.3% Annualised 5.3% 4.5% 9 65% 7 4 H3 Defined Mean Return: 4.1 Defined Volatility: 4.6 Over Full Time Horizon: 93% 4 15% -1 3 months 1.7% - 6 months -1.6% - 1 year 0.4% 5.3% 3 years 13.1% 4.2% 5 years % 10 years 57.6% 4.4% Annualised 4.7% 4.5% 10

11 Horizon 3+ Strategy 7 4 H3+ Defined Mean Return: 6.0 Defined Volatility: months 1.9% - 6 months -2.1% - 1 year 0.9% 6.3% 3 years % 5 years 19.1% 5.5% 10 years 79.6% 5.6% Annualised % 7 4 H3+ Defined Mean Return: 6.8 Defined Volatility: months 2.8% - 6 months -0.8% - 1 year 0.9% 6.3% 3 years 21.7% 5.2% 5 years 22.7% 5.5% 10 years 88.9% 5.6% Annualised 6.6% 5.9% 7 4 H3+ Defined Mean Return: 5. Defined Volatility: months 2.2% - 6 months -2.2% - 1 year 0.4% 6.9% 3 years 16.9% 5.5% 5 years 16.4% 5.6% 10 years 77.2% 5.7% Annualised 5.9% 5.9% 11

12 Horizon 4 Strategy H4 Defined Mean Return: 7.0 Defined Volatility: 7. 3 months 2.2% - 6 months -2.7% - 1 year 0.8% 7.6% 3 years 22.4% 6.4% 5 years 21.2% 6.8% 10 years 96.9% 7. Annualised H4 Defined Mean Return: 7. Defined Volatility: months 3.3% - 6 months -1.2% - 1 year 0.6% 7.6% 3 years 25.3% 6.3% 5 years 25.8% 6.6% 10 years 108.7% 6.8% Annualised 7.6% 7.1% 7 4 H4 Defined Mean Return: 6. Defined Volatility: months 2.6% - 6 months -2.7% - 1 year 0.3% 8.4% 3 years 20.5% 6.7% 5 years % 10 years 98.1% 7.1% Annualised 7.1% 7.4% 12

13 Horizon 5 Strategy H5 Defined Mean Return: 8.0 Defined Volatility: 8. 3 months 2.5% - 6 months -3.5% - 1 year 0.5% 9.1% 3 years 25.7% 7.7% 5 years % 10 years 114.9% 8.4% Annualised 7.9% 8.4% 7 4 H5 Defined Mean Return: 8. Defined Volatility: months 3.8% - 6 months -1.8% - 1 year 0.1% 9.2% 3 years % 5 years 28.6% years 132.1% 8.2% Annualised 8.8% 8.6% 7 4 H5 Defined Mean Return: 7. Defined Volatility: months months -3.5% - 1 year % 3 years 23.9% 8.1% 5 years 21.2% 8.3% 10 years 119.5% 8.5% Annualised 8.2% 8.9% 13

14 Horizon 6 Strategy H6 Defined Mean Return: 9.0 Defined Volatility: months 2.9% - 6 months -4.3% - 1 year 0.1% 10.7% 3 years % 5 years 24.5% 9.6% 10 years 133.9% 9.9% Annualised 8.9% 9.9% 7 4 H6 Defined Mean Return: 9.6 Defined Volatility: months 4.3% - 6 months -2.4% - 1 year -0.6% 10.7% 3 years 32.5% 9. 5 years 30.9% 9.4% 10 years 156.1% 9.6% Annualised 9.9% 10.1% 7 4 H6 Defined Mean Return: 8. Defined Volatility: months 3.5% - 6 months -4.2% - 1 year -0.3% 11.8% 3 years 27.3% 9.5% 5 years 23.2% 9.8% 10 years 142.6% 10. Annualised 9.3% 10.4% 14

15 Horizon 8 Strategy 7 4 H8 Defined Mean Return: 10.0 Defined Volatility: months 3.2% - 6 months -5.3% - 1 year -0.5% 12.5% 3 years 32.4% 10.7% 5 years % 10 years 153.5% 11.7% Annualised 9.7% 11.7% H8 Defined Mean Return: 10. Defined Volatility: months 4.8% - 6 months -3.3% - 1 year -1.6% 12.5% 3 years 36.2% 10.5% 5 years 32.9% years 183.3% 11.3%Annualised % H8 Defined Mean Return: 9. Defined Volatility: months 3.9% - 6 months -5.2% - 1 year -0.9% 13.9% 3 years 30.6% years 24.6% 11.4% 10 years 166.3% 11.6% Annualised 10.3% 12.1% 15

16 Horizon 10 Strategy H10 Defined Mean Return: 12.0 Defined Volatility: months 3.8% - 6 months -7.8% - 1 year -2.1% 16.7% 3 years 38.1% 13.9% 5 years 25.6% 14.6% 10 years 193.3% 15. Annualised 11.4% H10 Defined Mean Return: 12.4 Defined Volatility: months 5.9% - 6 months -5.2% - 1 year -3.8% 16.7% 3 years 43.4% years 34.5% 14.6% 10 years 241.1% 15.1% Annualised 13.1% 15.8% H10 Defined Mean Return: 11. Defined Volatility: months months -7.4% - 1 year -2.3% 18.5% 3 years 37.7% 14.6% 5 years years 219.7% 15.2% Annualised 12.3% 15.8% 16

17 Enhanced Growth Strategies Enh Defined Mean Return: 14.0 Defined Volatility: months 4.4% - 6 months -10.3% - 1 year -3.9% 20.8% 3 years 44.1% 17.4% 5 years 24.4% 18.2% 10 years 234.1% 18.8% Annualised 12.8% 18.8% Enh Defined Mean Return: 14.3 Defined Volatility: months 7.1% - 6 months -7.2% - 1 year -6.2% 20.9% 3 years 49.4% 17.5% 5 years 33.1% 18.3% 10 years 289.3% 18.8% Annualised 14.6% 19.7% Enh Defined Mean Return: 13. Defined Volatility: months 5.9% - 6 months -9.8% - 1 year % 3 years % 5 years 26.6% 18.7% 10 years 268.1% 19. Annualised 13.9% 19.8% 17

18 Isle of Man Head Office Capital International Group Capital House Circular Road Douglas Isle of Man IM1 1AG +44 (0) South Africa Office Capital International SA Great Westerford 240 Main Road Rondebosch 7700 South Africa +27 (0)

19 Platform Investment Treasury This document has been prepared for information purposes only and does not constitute an offer or an invitation, by or on behalf of any company within the Capital International Group of companies or any associated company, to buy or sell any security. Nor does it form a constituent part of any contract that may be entered into between us. Opinions constitute our judgement as of this date and are subject to change. The information contained herein is believed to be correct, but its accuracy cannot be guaranteed. Any reference to past performance is not necessarily a guide to the future. The price of a security may go down as well as up and its value may be adversely affected by currency fluctuations. The company, its clients and officers may have a position in, or engage in transactions in any of the securities mentioned. PRISM GBP, USD and EUR Strategies were launched in June 2014, April 2018 and September 2018 respectively. Historical performance is calculated by reference to the actual investment performance of Fusion Alpha modelled into the PRISM product structure. PRISM reserves the right to levy a performance fee on the Master Investment Strategy on performance in excess of the defined return profiles. Full details of PRISM are contained in the PRISM Brochure, Terms of Business and associated literature which is available upon request. Regulated activities are carried out on behalf of Capital International Group by its licensed member companies. Capital International Limited, Capital Treasury Services Limited and Capital Financial Markets Limited are all licensed by the Isle of Man Financial Services Authority. Capital International Limited is a member of the London Stock Exchange. Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG. CILSA Investments (PTY) Ltd (FSP No ) and CILSA Solutions (PTY) Ltd (FSP No. 6650), t/a Capital International SA are licenced by the Financial Sector Conduct Authority in South Africa as Financial Service Providers. Registered Address: Office NG101A, Great Westerford, 240 Main Road, Rondebosch 7700, South Africa. All subsidiary companies across both jurisdictions are represented under the Capital International Group brand.

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