Rolling 12-Month Review. September Page 01

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1 Rolling 12-Month Review September 2018 Page 01

2 CONTENTS MANAGER OVERVIEW 1 PROFILE 3 - ASSET & GEOGRAPHICAL ALLOCATION 2 PROFILE 3 - PERFORMANCE ATTRIBUTION 3 PROFILE 4 - ASSET & GEOGRAPHICAL ALLOCATION 4 PROFILE 4 - PERFORMANCE ATTRIBUTION 5 PROFILE 5 - ASSET & GEOGRAPHICAL ALLOCATION 6 PROFILE 5 - PERFORMANCE ATTRIBUTION 7 PROFILE 6 - ASSET & GEOGRAPHICAL ALLOCATION 8 PROFILE 6 - PERFORMANCE ATTRIBUTION 9 PROFILE 7 - ASSET & GEOGRAPHICAL ALLOCATION 10 PROFILE 7 - PERFORMANCE ATTRIBUTION 11 PROFILE 8 - ASSET & GEOGRAPHICAL ALLOCATION 12 PROFILE 8 - PERFORMANCE ATTRIBUTION 13 PROFILE Income - ASSET & GEOGRAPHICAL ALLOCATION 14 PROFILE Income - PERFORMANCE ATTRIBUTION 15 PROFILE Low Plus Income - ASSET & GEOGRAPHICAL ALLOCATION 16 PROFILE Low Plus Income - PERFORMANCE ATTRIBUTION 17

3 MANAGER OVERVIEW The PROFILES performed well over the past 12-months, during what has proven to be a challenging time for interest rate sensitive markets. In fixed income, our yield curve flattening strategy and high yield debt overweight contributed positively to performance. Whilst emerging markets (EM) initially performed well, the correction that began in January 2018 has left the asset class in negative territory, detracting from performance. During the period, we reduced exposure to EM and increased our allocation to short-dated fixed and floating rate bonds, which offer attractive yields and an improved risk return profile. In the equity space, we reduced exposure to the UK and EM and increased the allocation to US, which outperformed on a regional basis. Within the US, our preference for US small cap stocks performed particularly well. We also rotated our core exposure from traditional market cap weighted indices towards smart beta trading strategies such as Multifactor and Minimum Volatility. This trade worked well across all regions, except in the US due to the rally in the FAANG stocks (Facebook, Apple, Amazon, Netflix and Google). In the alternative space, property equities delivered positive returns whilst our commodity exposure was flat. In late May, we switched into a broader basket of physical commodities via a swap-based ETF, adding a further layer of diversification. Finally, our currency overlay strategy continues to protect the portfolios from excess levels of volatility. Sterling has been trading erratically and will likely continue to do so until further progress is made on the Brexit negotiations. Below we include our monthly Sterling chart, showing the month end GBP/USD rate of 1.30, which is below the 1, 5, 10 and 20-year averages. The chart also highlight s Sterling s purchasing power parity (PPP) as well as Capital Economics forecast for a return to 1.45 by the end of Sterling Undervalued v US Dollar 2.0 GBP/USD Capital Economics 2019 GBP/USD Forecast GBP/USD Historic Averages GBP/USD Purchasing Power Parity Average Sterling PPP Average 20-Year: Year: Year: Year: Actual Data: 09/09/1988 to 28/09/18. Forecast Data: 28/09/18 to 31/12/ Source: Thomson Reuters Datastream / Tavistock Wealth / Capital Economics / OECD Page 1

4 PROFILE 3 ASSET ALLOCATION CHANGES (OVER 12 MONTHS): 35.00% % % % Inflation- Linked Sep % 28.00% 9.00% 3.50% 28.50% 3.00% 1 Oct % 29.50% 4.00% 17.50% % 3.00% 3.00% Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % 16.50% 13.00% 2.50% 4.50% 5.50% Oct % % 6.00% 3.50% 1 Page 2

5 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 1.50% 0.50% -0.50% -1.50% - Inflation-Linked Total -1.50% -0.56% -0.04% -0.11% 1.54% -0.05% -0.06% -0.05% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 0.40% 0.20% -0.20% -0.40% -0.60% -0.80% -1.20% Total -0.98% -0.07% -0.02% 0.01% 0.24% -0.01% Page 3

6 PROFILE 4 ASSET ALLOCATION CHANGES (OVER 12 MONTHS): % % % % Inflation- Linked Sep % 24.50% 8.00% 3.00% 36.50% 3.00% 3.50% 1 Oct % 4.50% 18.00% 16.00% 3.50% 4.00% Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % 13.50% 14.00% 3.00% 5.50% 5.50% Oct % 15.50% 6.50% 3.50% 13.00% Page 4

7 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 2.50% 1.50% 0.50% -0.50% -1.50% Inflation-Linked Total -0.98% -0.32% -0.05% -0.68% 2.18% -0.07% -0.10% -0.03% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 0.40% 0.30% 0.20% 0.10% -0.10% -0.20% -0.30% -0.40% Total 0.22% -0.06% -0.07% -0.12% 0.31% -0.33% Page 5

8 PROFILE 5 ASSET ALLOCATION CHANGES (OVER 12 MONTHS): 45.00% % % % % Inflation- Linked Sep % 23.00% 6.50% 3.00% 42.50% 1.50% 3.50% 4.00% 9.00% Oct % 28.00% 3.50% 16.00% 25.50% 3.50% 4.00% 4.50% Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % 12.50% 14.00% 3.50% 5.50% 5.50% Oct % 11.50% 16.50% 7.00% 4.00% 12.50% Page 6

9 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 3.00% 2.50% 1.50% 0.50% -0.50% Inflation-Linked Total -0.46% -0.06% -0.06% -0.72% 2.69% -0.04% -0.10% -0.02% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 1.50% 0.50% -0.50% Total 1.63% -0.01% -0.17% -0.14% 0.31% -0.39% Page 7

10 PROFILE 6 ASSET ALLOCATION CHANGES (OVER 12 MONTHS): Inflation- Linked Sep % 18.00% 4.00% 2.50% 52.50% 1.50% 4.00% 4.50% 8.50% Oct % 23.00% % 5.00% 5.50% 6.50% Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % % 3.50% 6.00% 5.50% Oct % % 7.00% 5.50% 1 Page 8

11 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 4.00% 3.50% 3.00% 2.50% 1.50% 0.50% -0.50% Inflation-Linked Total -0.15% 0.03% -0.02% -0.65% 3.53% -0.03% -0.13% 0.02% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 3.50% 3.00% 2.50% 1.50% 0.50% -0.50% Total 2.94% -0.03% -0.24% -0.06% 0.33% -0.34% Page 9

12 PROFILE 7 ASSET ALLOCATION CHANGES (OVER 12 MONTHS): Inflation- Linked Sep % 11.50% 3.00% 1.50% 62.50% 1.50% 5.00% 4.50% 7.50% Oct % 12.50% 0.50% 6.50% 49.50% 6.00% 8.00% 9.00% Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % 13.50% 3.50% 7.50% 4.00% Oct % % 6.50% 7.50% 8.50% Page 10

13 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 6.00% 5.00% 4.00% 3.00% Inflation-Linked Total -0.10% 0.03% -0.37% 4.85% 0.01% -0.18% 0.02% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 5.00% 4.00% 3.00% Total 4.30% -0.04% -0.25% 0.02% 0.40% -0.17% Page 11

14 PROFILE 8 ASSET ALLOCATION CHANGES (OVER 12 MONTHS): Inflation- Linked Sep % % 6.00% 4.00% 6.00% Oct % 7.50% 0.50% 4.00% 55.00% 6.50% 9.00% 1 Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % 10.50% 13.00% 3.00% 8.50% 3.50% Oct % % 6.50% 8.50% 7.00% Page 12

15 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 7.00% 6.00% 5.00% 4.00% 3.00% Inflation-Linked Total -0.07% -0.01% -0.24% 5.71% 0.02% -0.24% 0.03% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 6.00% 5.00% 4.00% 3.00% Total 4.91% -0.04% -0.15% 0.09% 0.50% -0.11% Page 13

16 INCOME ASSET ALLOCATION CHANGES (OVER 12 MONTHS): % % % % % Inflation- Linked Sep % 29.00% 4.50% 45.00% 3.50% 7.50% 1 Oct % 17.00% 26.00% 5.00% 4.50% Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % 14.50% 18.00% 7.50% 1.50% 1 Oct % % 7.50% 15.00% Page 14

17 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 1.50% 0.50% -0.50% Inflation-Linked Total 0.20% -0.85% 1.30% -0.14% 0.01% 0.01% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 1.50% 0.50% -0.50% Total 1.63% -0.17% -0.37% -0.16% 0.02% -0.42% Page 15

18 LOW PLUS INCOME ASSET ALLOCATION CHANGES (OVER 12 MONTHS): 45.00% % % % % Inflation- Linked Sep % % 4.50% 37.50% 3.00% 6.00% 1 Oct % % 17.50% 18.50% 3.50% 0.50% 3.50% Cash GEOGRAPHICAL ALLOCATION CHANGES (OVER 12 MONTHS): Sep % 17.00% 16.00% 5.50% 9.00% Oct % 11.50% 17.00% 7.00% 1.50% 14.00% Page 16

19 12-MONTH PERFORMANCE ATTRIBUTION (BY ASSET CLASS): 1.50% 0.50% -0.50% Inflation-Linked Total -0.86% -0.24% 0.01% -0.28% 0.98% -0.12% 0.02% 0.01% 12-MONTH PERFORMANCE ATTRIBUTION (BY GEOGRAPHY): 0.10% 0.05% -0.05% -0.10% -0.15% -0.20% -0.25% -0.30% Total 0.06% -0.20% -0.27% -0.03% 0.05% -0.09% Page 17

20 DISCLAIMER The value of investments may fall as well as rise. Past performance should not be seen as an indication of future performance. Tavistock Wealth Limited is authorised and regulated by the Financial Conduct Authority. Tavistock Wealth Limited is a wholly owned subsidiary of Tavistock Investments Plc. THIS DOCUMENT IS ISSUED BY TAVISTOCK WEALTH LIMITED AND IS FOR USE BY FINANCIAL ADVISERS ONLY. IT SHOULD NOT BE RELIED UPON BY A RETAIL CLIENT. This document does not constitute an offer to subscribe or invest in the Tavistock PROFILES nor buy or sell shares in the ACUMEN Portfolios. The ACUMEN Portfolios are sub-funds of the ACUMEN OEIC. The Prospectus is the only authorised document for offering shares in the ACUMEN Portfolios and investors are required to read the Key Investor Information Document (KIID) before investing. Documentation is available free of charge at or by calling 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. ishares and BlackRock are registered trademarks of BlackRock, Inc. and its affiliates ( BlackRock ) and are used under license. Further, BlackRock, Inc. and its affiliates including, but not limited to, BlackRock Investment Management (UK) Limited, are not affiliated with Tavistock Wealth Limited and its affiliates. Accordingly, BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by Tavistock Wealth Limited or any of its affiliates. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service offered by Tavistock Wealth Limited or any of its affiliates. The value of investments may fall as well as rise. Past performance should not be seen as an indication of future performance. The Tavistock PROFILES are a white-labelled offering based on the DFM Portfolio Management Service provided by PB Financial Planning. PB Financial Planning is a trading style of Tavistock Private Client Limited, which is authorised and regulated by the Financial Conduct Authority. The PROFILE returns are quoted net of fees and the inception date of the PB Financial Planning DFM Portfolio Management Service is 18/02/08. All Tavistock PROFILE performance data up until 31/12/16 has been provided by PB Financial Planning. As of 01/01/17, all Tavistock PROFILES invest in a blend of the ACUMEN Portfolio range. All performance data thereafter is provided by Tavistock Wealth Limited. Source of data: PB Financial Planning, Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated. The performance numbers stated may differ from our monthly factsheets and any such variance will be a result of rounding differences. The past performance stated may differ depending on the platform being used. Date range: 01/10/17-30/09/18. Date of data: 30/09/18 unless otherwise stated. FINALIST BEST INVESTMENT FUND GROUP Page 18 Tavistock Wealth Limited, Unit 1, Bracknell Beeches, Bracknell, Berkshire, RG12 7BW +44 (0)