Tavistock Investments Plc Group INTEGRITY VIGILANCE

Transcription

1 GLOBAL SERVICE

2 Tavistock Investments Plc Group INTEGRITY VIGILANCE

3 GLOBAL SERVICE CONTENTS: SAFE HANDS 1 TAVISTOCK WEALTH, REVOLUTIONARY THINKING & OUR VISION 2 GLOBAL SERVICE, GLOBAL PORTFOLIOS & LONG-TERM VOLATILITY TARGET RANGE 3 PORTFOLIO CONSTRUCTION, QUANTITATIVE ANALYSIS & BACKWARD INDUCTION 4 GLOBAL PORTFOLIO 3 5 GLOBAL PORTFOLIO 4 7 GLOBAL PORTFOLIO 5 9 GLOBAL PORTFOLIO 6 11 GLOBAL PORTFOLIO 7 13 GLOBAL PORTFOLIO 8 15 Tavistock Investments Plc Group INTEGRITY VIGILANCE

4 CHRISTOPHER PEEL - CIO 30+ YEARS IN MARKETS. OUT vs MARKET AND PEER GROUP. EX CITIBANK AND SALOMON BROTHERS PETER HORBYE - MD BRIAN RAVEN - CEO 20+ YEARS FOUNDING AND LEADING 3 PUBLIC COMPANIES IN CLIENT MANAGEMENT, FRAUD PREVENTION & FINANCIAL SERVICES 35+ YEARS MANAGING CLIENTS. INTERNATIONAL FINANCING MARKETS EXPERT. EX LEHMAN BROTHERS AND HERITAGE CAP.

5 TAVISTOCK WEALTH Tavistock Wealth manages over $1 billion of assets. We aim to provide private clients with access to institutional quality portfolio management at a retail price. Tavistock Wealth is a subsidiary of Tavistock Investments Plc, the UK wide financial services group. Currently, Tavistock has over 200 financial advisers helping 50,000+ private clients look after more than $4 billion of investments. REVOLUTIONARY THINKING We believe an actively managed, globally allocated, multi-asset portfolio, comprised of low-cost ETFs with diversified holdings in equity, bond, commodity and property markets is statistically more likely to outperform a traditional active manager. OUR VISION Diversification within and between asset classes has always been important in spreading risk evenly across multi-asset portfolios. Investment portfolios have tended to be overweight in equities and bonds of an investor s country of domicile, for mainly historical reasons. However, the exponential growth in the ETF market and the relative ease of access to investment markets around the world enable this outdated approach to be replaced. Investor country agnostic global portfolios can lead to higher returns with lower risk, which is clearly a more desirable outcome.

6 GLOBAL SERVICE The GLOBAL Service is designed to cater for the varying risk appetites of international investors. The fund management industry has experienced significant change in the last quarter of a century. Product innovation has enabled investors to benefit from wider exposure to global financial markets with far greater efficiency and at a lower cost. Index-tracking investments such as ETFs have grown increasingly important and form the building blocks for the portfolios managed within the GLOBAL Service. GLOBAL PORTFOLIOS The GLOBAL Portfolios are amongst the most diversified multi-asset portfolios in the world. Each has been constructed with advanced, quantitative, fund management techniques. Exposure is spread across equity and debt securities of thousands of companies internationally. Multiple layers of diversification within and between asset classes are key to the portfolio construction process and are designed to mitigate risk. Each regional asset class is optimised separately into a sub-portfolio, and then aggregated into a multi-asset portfolio that targets a level of volatility consistent with the investment objectives of each GLOBAL Portfolio. Approximately 85% of the holdings within each portfolio are hedged back to the investing currency, be that the pound sterling, the euro or the US dollar. LONG-TERM VOLATILITY TARGET RANGE 15% 12% 9% 6% 3% 0% GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL Portfolio 3 Portfolio 4 Portfolio 5 Portfolio 6 Portfolio 7 Portfolio 8

7 PORTFOLIO CONSTRUCTION Each GLOBAL Portfolio is constructed using Tavistock s Backward Induction optimisation process at a regional asset class, asset class and portfolio level. On average, twenty-two separate optimisations are required to finalise each portfolio of holdings. The process encompasses both historical and five-year rolling forecast data for asset class returns, correlation and volatility. QUANTITATIVE ANALYSIS The end portfolio is a blend of the analyses run over the backward and forward-looking time frames. The same set of portfolio constraints and investment guidelines are also given to the quantitative analysis team at ishares (BlackRock) and they separately run a multi-step optimisation utilising their proprietary risk system, known as Aladdin. This vital element of our investment process independently validates the work done internally and helps distil any further improvement. The GLOBAL Portfolio investment team manages risk using IT systems such as Thomson Reuters Eikon, Lipper for Investment Management, Datastream and AlternativeSoft. The portfolios are actively managed, monitored daily and typically rebalanced on a quarterly basis. BACKWARD INDUCTION Equity World US UK Europe Final Portfolio 1. Optimisation on a regional basis within an asset class. 2. Optimisation on an asset class basis. 3. Optimisation of final portfolio targeting a level of risk. Commodity Japan Property EM Equity Bond World EM Debt

8 INVESTMENT OBJECTIVE The investment objective of GLOBAL Portfolio 3 is to deliver long-term capital growth by investing in a range of global financial markets. The portfolio is typically comprised of lower and medium risk investments such as cash, bonds and property, as well as higher risk investments such as equities and commodities. ASSET ALLOCATION Cash 2.00% Government Bonds 27.50% Corporate Bonds 29.00% Inflation-Linked Bonds 4.00% Emerging Market Bonds 18.00% Developed Market Equities 12.00% RISK PROFILE Emerging Market Equities 1.50% GLOBAL Portfolio 3 is defensive and targets a risk profile of 3 on a scale from 1-10, which can be characterised as low end of cautious to moderate risk. The Portfolio targets annualised, long-term volatility in the range of 3.1% to 4.5%. Commodity Equities 3.00% Property Equities 3.00% BENCHMARK The market composite benchmark (GBP, EUR and USD hedged) is the Bloomberg Barclays Global Aggregate Bond Index (70%) and the MSCI World Equity Index (30%). Benchmark performance is evaluated over a rolling twelve-month investment period. REGION ALLOCATION North America 52.00% United Kingdom 11.00% Europe ex UK 15.00% Asia ex Japan 6.00% Japan 3.50% Rest of World 12.50% - KEY RATIOS GLOBAL 3 KEY RATIOS GBP EUR* USD* Annualised Return (%) 6.10% 5.34% 6.40% Annualised Volatility (%) 4.90% 4.91% 4.90% Max Drawdown (%) -5.39% -5.71% -5.34% Sharpe Ratio Sortino Ratio The EUR and USD share class returns are pro forma prior to their respective launch dates on 4th September 2017 and 27th July The returns have been calculated by hedging the GBP returns to EUR and USD. Time period: 1st October 2014 to 30th September 2017.

9 GLOBAL 3 GLOBAL 3 GBP 2.39% 2.57% 18.87% GLOBAL 3 EUR 1.70% 1.72% 16.37% GLOBAL 3 USD 2.96% 3.18% 19.84% Time Period: 1st October 2014 to 30th September 2017.

10 INVESTMENT OBJECTIVE The investment objective of GLOBAL Portfolio 4 is to deliver long-term capital growth by investing in a range of global financial markets. The portfolio is typically comprised of lower and medium risk investments such as cash, bonds and property, as well as higher risk investments such as equities and commodities. ASSET ALLOCATION Cash 2.00% Government Bonds 20.50% Corporate Bonds 29.50% Inflation-Linked Bonds 4.50% Emerging Market Bonds 18.00% Developed Market Equities 16.00% RISK PROFILE Emerging Market Equities 2.00% GLOBAL Portfolio 4 is conservative and targets a risk profile of 4 on a scale from 1-10, which can be characterised as cautious to moderate risk. The Portfolio targets annualised, long-term volatility in the range of 4.6% to 6.0%. Commodity Equities 3.50% Property Equities 4.00% REGION ALLOCATION North America BENCHMARK The market composite benchmark (GBP, EUR and USD hedged) is the Bloomberg Barclays Global Aggregate Bond Index (60%) and the MSCI World Equity Index (40%). Benchmark performance is evaluated over a rolling twelve-month investment period % United Kingdom 11.50% Europe ex UK 15.50% Asia ex Japan 6.50% Japan 3.50% Rest of World 13.00% - KEY RATIOS GLOBAL 4 KEY RATIOS GBP EUR* USD* Annualised Return (%) 6.96% 6.20% 7.27% Annualised Volatility (%) 5.38% 5.39% 5.38% Max Drawdown (%) -5.84% -6.13% -5.77% Sharpe Ratio Sortino Ratio The EUR and USD share class returns are pro forma prior to their respective launch dates on 4th September 2017 and 27th July The returns have been calculated by hedging the GBP returns to EUR and USD. Time period: 1st October 2014 to 30th September 2017.

11 GLOBAL 4 GLOBAL 4 GBP 2.91% 3.25% 21.67% GLOBAL 4 EUR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2.22% 2.40% 19.18% GLOBAL 4 USD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3.48% 3.86% 22.72% Time Period: 1st October 2014 to 30th September 2017.

12 INVESTMENT OBJECTIVE The investment objective of GLOBAL Portfolio 5 is to deliver long-term capital growth by investing in a range of global financial markets. The portfolio is typically comprised of lower and medium risk investments such as cash, bonds and property, as well as higher risk investments such as equities and commodities. RISK PROFILE GLOBAL Portfolio 5 is balanced and targets a risk profile of 5 on a scale from 1-10, which can be characterised as low end of moderate risk. The Portfolio targets annualised, long-term volatility in the range of 6.1% to 7.5%. BENCHMARK The market composite benchmark (GBP, EUR and USD hedged) is the Bloomberg Barclays Global Aggregate Bond Index (50%) and the MSCI World Equity Index (50%). Benchmark performance is evaluated over a rolling twelve-month investment period. ASSET ALLOCATION Cash 2.00% Government Bonds 13.00% Corporate Bonds 27.50% Inflation-Linked Bonds 3.50% Emerging Market Bonds 16.00% Developed Market Equities 25.50% Emerging Market Equities 3.50% Commodity Equities 4.00% Property Equities 5.00% REGION ALLOCATION North America 48.50% United Kingdom 11.50% Europe ex UK 16.50% Asia ex Japan 7.00% Japan 4.00% Rest of World 12.50% - KEY RATIOS GLOBAL 5 KEY RATIOS GBP EUR* USD* Annualised Return (%) 7.74% 6.97% 8.05% Annualised Volatility (%) 6.08% 6.09% 6.07% Max Drawdown (%) -7.04% -7.25% -7.01% Sharpe Ratio Sortino Ratio The EUR and USD share class returns are pro forma prior to their respective launch dates on 4th September 2017 and 27th July The returns have been calculated by hedging the GBP returns to EUR and USD. Time period: 1st October 2014 to 30th September 2017.

13 GLOBAL 5 GLOBAL 5 GBP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3.73% 4.39% 24.27% GLOBAL 5 EUR 3.05% 3.54% 21.71% GLOBAL 5 USD 4.31% 5.00% 25.32% Time Period: 1st October 2014 to 30th September 2017.

14 INVESTMENT OBJECTIVE The investment objective of GLOBAL Portfolio 6 is to deliver long-term capital growth by investing in a range of global financial markets. The portfolio is typically comprised of higher risk investments such as equities and commodities but will also contain lower and medium risk investments such as cash, bonds and property. RISK PROFILE GLOBAL Portfolio 6 is progressive and targets a risk profile of 6 on a scale from 1-10, which can be characterised as moderate risk. The Portfolio targets annualised, long-term volatility in the range of 7.6% to 9.0%. BENCHMARK The market composite benchmark (GBP, EUR and USD hedged) is the Bloomberg Barclays Global Aggregate Bond Index (40%) and the MSCI World Equity Index (60%). Benchmark performance is evaluated over a rolling twelve-month investment period. ASSET ALLOCATION Cash 2.00% Government Bonds 7.50% Corporate Bonds 22.50% Inflation-Linked Bonds 2.00% Emerging Market Bonds 12.00% Developed Market Equities 36.50% Emerging Market Equities 5.00% Commodity Equities 5.50% Property Equities 7.00% REGION ALLOCATION North America 48.00% United Kingdom 12.00% Europe ex UK 16.50% Asia ex Japan 7.00% Japan 5.00% Rest of World 11.50% - KEY RATIOS GLOBAL 6 KEY RATIOS GBP EUR* USD* Annualised Return (%) 8.14% 7.36% 8.43% Annualised Volatility (%) 6.35% 6.36% 6.34% Max Drawdown (%) -7.68% -7.89% -7.65% Sharpe Ratio Sortino Ratio The EUR and USD share class returns are pro forma prior to their respective launch dates on 4th September 2017 and 27th July The returns have been calculated by hedging the GBP returns to EUR and USD. Time period: 1st October 2014 to 30th September 2017.

15 GLOBAL 6 GLOBAL 6 GBP 4.76% 6.17% 25.62% GLOBAL 6 EUR 4.06% 5.30% 23.00% GLOBAL 6 USD 5.33% 6.78% 26.63% Time Period: 1st October 2014 to 30th September 2017.

16 INVESTMENT OBJECTIVE The investment objective of GLOBAL Portfolio 7 is to deliver long-term capital growth by investing in a range of global financial markets. The portfolio is typically comprised of higher risk investments such as equities and commodities but will also contain lower and medium risk investments such as cash, bonds and property. ASSET ALLOCATION Cash 2.00% Government Bonds 6.00% Corporate Bonds 12.50% Inflation-Linked Bonds 0.50% Emerging Market Bonds 6.50% 49.00% Developed Market Equities RISK PROFILE GLOBAL Portfolio 7 is moderately adventurous and targets a risk profile of 7 on a scale from 1-10, which can be characterised as low end of moderate to adventurous risk. The Portfolio targets annualised, long-term volatility in the range of 9.1% to 10.5%. BENCHMARK The market composite benchmark (GBP, EUR and USD hedged) is the Bloomberg Barclays Global Aggregate Bond Index (30%) and the MSCI World Equity Index (70%). Benchmark performance is evaluated over a rolling twelve-month investment period. Emerging Market Equities 6.00% Commodity Equities 8.00% Property Equities 9.50% REGION ALLOCATION North America 49.50% United Kingdom 12.00% Europe ex UK 15.50% Asia ex Japan 7.00% Japan 7.50% Rest of World 8.50% - KEY RATIOS GLOBAL 7 KEY RATIOS GBP EUR* USD* Annualised Return (%) 8.35% 7.58% 8.65% Annualised Volatility (%) 6.70% 6.70% 6.69% Max Drawdown (%) -8.25% -8.46% -8.21% Sharpe Ratio Sortino Ratio The EUR and USD share class returns are pro forma prior to their respective launch dates on 4th September 2017 and 27th July The returns have been calculated by hedging the GBP returns to EUR and USD. Time period: 1st October 2014 to 30th September 2017.

17 GLOBAL 7 GLOBAL 7 GBP 5.80% 7.93% 26.37% GLOBAL 7 EUR 5.14% 7.07% 23.76% GLOBAL 7 USD 6.38% 8.55% 27.38% Time Period: 1st October 2014 to 30th September 2017.

18 INVESTMENT OBJECTIVE The investment objective of GLOBAL Portfolio 8 is to deliver long-term capital growth by investing in a range of global financial markets. The portfolio is typically comprised of higher risk investments such as equities and commodities but will also contain medium risk investments such as bonds and property. ASSET ALLOCATION Cash 2.00% Government Bonds 5.50% Corporate Bonds 7.50% Inflation-Linked Bonds 0.50% Emerging Market Bonds 4.00% Developed Market Equities 54.50% RISK PROFILE Emerging Market Equities 6.50% GLOBAL Portfolio 8 is adventurous and targets a risk profile of 8 on a scale from 1-10, which can be characterised as moderate to adventurous risk. The Portfolio targets annualised, long-term volatility in the range of 10.6% to 12.0%. Commodity Equities 9.00% Property Equities 10.50% BENCHMARK The market composite benchmark (GBP, EUR and USD hedged) is the Bloomberg Barclays Global Aggregate Bond Index (20%) and the MSCI World Equity Index (80%). Benchmark performance is evaluated over a rolling twelve-month investment period. REGION ALLOCATION North America 50.00% United Kingdom 12.00% Europe ex UK 15.50% Asia ex Japan 6.50% Japan 8.50% Rest of World 7.50% - KEY RATIOS GLOBAL 8 KEY RATIOS GBP EUR* USD* Annualised Return (%) 8.89% 8.12% 9.20% Annualised Volatility (%) 7.22% 7.22% 7.21% Max Drawdown (%) -8.91% -9.11% -8.87% Sharpe Ratio Sortino Ratio The EUR and USD share class returns are pro forma prior to their respective launch dates on 4th September 2017 and 27th July The returns have been calculated by hedging the GBP returns to EUR and USD. Time period: 1st October 2014 to 30th September 2017.

19 GLOBAL 8 GLOBAL 8 GBP 6.45% 8.99% 28.21% GLOBAL 8 EUR 5.78% 8.12% 25.56% GLOBAL 8 USD 7.05% 9.62% 29.25% Time Period: 1st October 2014 to 30th September 2017.

20 Tavistock Investments Plc Group INTEGRITY VIGILANCE For more information about Tavistock Wealth (Global) Limited or our investments products please write to the address below or us at Tavistock Wealth (Global) Limited Suite 9885, 26 Upper Pembroke Street, Dublin 2, D02 X361 Ireland Telephone : Tavistock Wealth (Global) Limited is a wholly owned subsidiary of Tavistock Investments Plc and is an affiliate of Tavistock Wealth Limited. Tavistock Wealth Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom with Firm Reference Number THIS DOCUMENT IS ISSUED BY TAVISTOCK WEALTH LIMITED AND IS FOR USE BY PROFESSIONAL INTERMEDIARIES ONLY. IT SHOULD NOT BE RELIED ON BY A RETAIL CLIENT. This document does not constitute an offer to subscribe or invest in the GLOBAL Portfolios. Tavistock Wealth Limited does not provide investment advice. This document may not be reproduced, disclosed or distributed without the prior written permission of Tavistock Wealth Limited. The GLOBAL Portfolio returns are quoted gross of any applicable DFM fees and the inception date is 1st October 2014 unless otherwise stated. Source of data: Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated. Date of data: 30th September 2017 unless otherwise stated. The value of investments held in the GLOBAL Portfolios may fall as well as rise. Past performance should not be seen as an indication of future performance.