CM17984 UK. Classification: only to be shown if not public. Connections matter. For professional investors only. Paul Niven.

Transcription

1 CM17984 UK Connections matter For professional investors only Paul Niven BMO Multi-Asset

2 Investment risks The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. Changes in interest rates can affect the value of fixed interest holdings and may adversely affect the value of your investment. 2

3 Democratising savings 3

4 Connecting with clients Requirement Issue Approach Outcome Delivery of investment objectives Diversify performance drivers Consistency Maximise likelihood of delivery Actively manage exposure Value Increasingly cost conscious Value for money solutions 4

5 Delivering outcomes Index rebased to Balanced Fund Jan-08 Jan-10 Jan-12 Jan-14 Jan-16 Jan-18 BMO Asset Allocation Fund Benchmark Index rebased to Return Targeted Fund May-12 May-13 May-14 May-15 May-16 May-17 May-18 Fund GBP 1 Month Cash + 4% Annualised 1 yr 2 yr 3 yrs 4 yrs 5 yrs 10 yrs Return 5.7% 9.1% 4.9% 6.9% 8.0% 6.5% Benchmark 2.2% 7.0% 2.2% 4.2% 4.9% 4.6% Annualised 1 yr 2 yr 3 yrs 4 yrs 5 yrs Since 31/5/12 Return 2.0% 3.6% 3.7% 3.8% 4.3% 4.3% Volatility 3.2% 2.7% 3.6% 4.0% 3.8% 4.0% Past performance should not be seen as an indication of future performance. The performance figures are shown gross of fees. The effect of fees or costs will be to lower the figures shown. Source: BMO Global Asset Management, Bloomberg as at Performance has been shown gross of investment management fees and net of all costs in GBP terms. The cash reference rate is 1-month GBP LIBOR. We have shown performance since we made enhancements to the investment process at the end of May YTD = Year-to-Date; RPI = Retail Price Index. 5

6 Delivering consistency World s oldest investment trust A dividend paid every year since annual consecutive rises 11 managers in 150 years, three since 1969 Investing in equities since 1925 and private markets since 1942 Over 100,000 investors, 90%+ retail holders 3.9bn market cap, total assets 4.2bn Consistent top quartile shareholder returns YTD, 1yr, 3yr, 5yr Past performance should not be seen as an indication of future performance. Source: F&C Management Limited, Datastream, Morningstar, Association of Investment Companies (AIC) as at Morningstar. All Rights Reserved. Benchmark: FTSE All World Total Return Index. Peer Group: Association of Investment Companies Global. Net of fees. NAV = Net Asset Value; YTD = Year-to-Date. 6

7 Delivering value for money A market leading range of funds building on our proven institutional capabilities in multi-asset investing Outcome driven 3 risk targeted funds CPI + return expectations Active Strategic asset allocation Tactical asset allocation Stock selection Diversified globally across equities and fixed income Capped OCF 0.29% CPI = Consumer Price Index More for less active benefits at a passive price point 7

8 Connecting return drivers Traditional Alternatives Exposure Equity Fixed Income Assets Strategies Equity Multi-Strategy Diversified Alternatives Solutions Balanced Multi-Asset Outcomes Return Risk Benchmark Plus Income Low Correlation Source: BMO Global Asset Management. For illustrative purposes only. 8

9 Managing competing objectives Simulated benchmark performance Risk of risks of bootstrapped benchmark returns % Absolute Return Index % Top quartile Mean Bottom quartile 5 % Return Attractive returns over the cycle Risk budget Balanced spread of risk Volatility Reduced risk 9% 8% 7% 6% 5% 4% 3% 2% 1% 5th Percentile Upper Quartile Mean Lower Quartile 95th Percentile 5.35% 5.04% 4.81% 4.59% 4.30% % Months Based on 1,000 simulations of 221 random monthly returns. This information is simulated past performance and it is not a reliable indicator of future performance. The results are calculated by applying an investment strategy or methodology to existing historical market data, on prior time periods. Simulated performance results do not reflect actual trading and have inherent limitations. Source: BMO Global Asset Management as at For illustrative purposes only. 9

10 Global connections Providing solutions since 21 average years experience bn + Assets Under Management London 7 professionals Chicago 7 professionals Toronto 10 professionals BMO Global Asset Management Equity 66.8 billion Fixed income 67.7 billion Alternatives & FX 6.8 billion Source: BMO Global Asset Management as at FX = Foreign Exchange 10

11 Managing research 11

12 A robust and active approach Equity/ Fixed Income/ Alternative Strategies Third party products SAA Strategic Asset Allocation Medium-term positioning RM Risk Management SS Security Selection Select from strategies TAA Tactical Asset Allocation Final portfolio Portfolio construction Client Outcome Source: BMO Global Asset Management. For illustrative purposes only. 12

13 Enhancing value at each level Index rebased to Industry benchmark BMO Strategic BMO Strategic + SS BMO Strategic + SS + TAA This data refers to simulated or hypothetical performance and it is not a reliable indicator of future performance. Simulated or hypothetical performance results do not reflect actual trading and have certain inherent limitations. Source: BMO Global Asset Management as at

14 Conclusion Outcome Consistency Value Proven capabilities of delivering client outcomes across a range of multi asset fund types Active asset allocation, research capabilities and a robust investment framework ensures consistency Using full BMO capabilities whilst ensuring costs are minimised to maximise value to investors 14

15 Disclaimer Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any products that may be mentioned.

16 Contact us BMO Global Asset Management (EMEA) Head Office Exchange House Primrose Street London EC2A 2NY Tel: +44 (0) BMO Global Asset Management Edinburgh 6th Floor, Quartermile4, 7a Nightingale Way, Edinburgh EH3 9EG Tel: +46 (0) Calls may be recorded bmogam.com Extensive worldwide investment capabilities Total focus on clients Comprehensive range of products and solutions Defined expertise including a suite of specialist investment boutiques 2018 BMO Global Asset Management. All rights reserved. BMO Global Asset Management is a trading name of F&C Management Limited, which is authorised and regulated by the Financial Conduct Authority.