Capital International Group FUSION MANAGED PORTFOLIO SERVICE

Transcription

1 Capital International Group FUSION MANAGED PORTFOLIO SERVICE

2 Our Vision The Capital International Group exists to improve lifestyles through increased prosperity Our Values We seek to achieve this through the enduring values of innovation, integrity and excellence Capital International Managed Portfolio Service is an offshore discretionary investment management service

3 Introducing For smaller portfolios, or where clients prefer greater diversification, the managed portfolio service invests in a range of collective investment schemes, managed on a discretionary basis. is an ideal service for financial planners seeking to recommend their clients a good value, independent, discretionary manager, with a proven performance track record and an easy to understand investment strategy. Within the managed portfolio service there is a choice of three different risk-profiled investment strategies in three different currencies (GBP, USD and EUR). All three strategies target absolute returns through broad asset class diversification, with access to an unlimited range of assets, markets and specialist sectors within collective investment schemes. The strategies employ a highly active investment management approach which allows significant refinements to the target asset allocation to be made. This allows the investment management team to respond to the investment climate, reducing risk during periods of turbulence and increasing it during periods of growth. The Managed Portfolio Service is an offshore discretionary investment management service designed to deliver: Exceptional performance Absolute return targets Strict risk controls A highly personalised service s key benefits are: A proven investment track record with a stable investment management team, all of whom are directly accessible if required Full investment reporting sent quarterly with valuations available online 24 hours a day Face to face meetings and direct access to the discretionary management team Low entry level to a personalised discretionary investment management service of only 75,000 No initial charges and a competitive annual investment management charge is available for direct investment, or via offshore bonds or via pension and QROPS wrappers. Innovation Integrity Excellence

4 Capital International targets absolute returns through broad asset class diversification via collective investments

5 In more detail Seeking Absolute Returns Above all seeks to achieve absolute returns and the management of absolute portfolio risk. Relative performance comparisons are of little importance to us and indeed, we believe often lead to irrational decision making. If we do not believe an investment can achieve a respectable return over a one year time horizon, we simply will not own it. Target Returns (Net) Volatility Ranges Income Alpha Plus 6%-8% 7%-9% 9%-11% 5%-8% 7%-11% 9%-13% Broad Asset Class Diversification invests in a broad range of asset classes, introducing a large number of independent sources of return and risk. Portfolio theory and statistical analysis demonstrate that this approach can deliver performance with significantly reduced volatility, when compared to a traditional balanced investment approach. Dynamically Managed uses a highly flexible approach to asset allocation, designed to exploit macro trends by significantly tilting the exposure of a portfolio to each asset class, region, sector or theme throughout the investment cycle to maximise potential returns and protect from market volatility. Discretionary Service is a full discretionary portfolio management service, providing investors with their own bespoke portfolio and a highly personalised service. is available as three distinct strategies, to meet your specific needs; Income, Alpha and Plus. Portfolios are also denominated in the three major currencies; Sterling, US Dollars and Euros. s investment objective is to achieve absolute returns within defined risk parameters and investment horizons. Innovation Integrity Excellence

6 Investment Objectives Investment Approach In pursuit of absolute returns invests in a broad range of asset classes designed to maximise its ability to deliver returns, whilst minimising the associated risk. The strategies are constructed around a managed portfolio of collective investment vehicles, delivering a unique combination of diversification, flexibility and efficiency. Each strategy delivers a highly diversified investment exposure and is designed as a complete investment solution and core strategy. Currency Options The strategies are available in three currencies: Sterling, US Dollars and Euros. The illustrated target returns are for Sterling and US$ base strategies. Income Income is a more cautious strategy designed specifically for clients who require regular distributions, offering: Fixed Interest 40% Equity 25% Minimum Investment offers investors their own bespoke portfolio and is available for portfolios with a minimum initial size of 75,000, $150,000 or 150,000. Cash 2% Alternative Strategies 33% Strategy Switching Investors may elect to switch between strategies at any time without penalty. The Income strategy focuses on more reliable asset classes in order to achieve its risk level and return targets. Investment exposure is dominated by lower risk asset classes such as fixed interest, arbitrage strategies and commercial property, although the strategy includes some exposure to equities and other higher risk investments. Income targets a strategic currency exposure of 89% in the base currency, and employs a 30% swing factor to maximise the returns of the strategy. Income has a one to two year investment horizon and as a result focuses on reliable asset classes whilst accepting lower returns. Capital International

7 Alpha Alpha is our flagship strategy. It is designed to deliver the optimal balance between return and risk, offering: Plus Plus is a more aggressive strategy, targeting higher returns, but with a higher level of risk. The strategy offers: Fixed Interest 28% Equity 45% Fixed Interest 10% Equity 65% Cash 2% Alternative Strategies 33% Alpha is designed for investors who are prepared to accept a moderate level of risk to achieve higher potential returns. The strategy balances a strategic exposure to equities and other higher risk investments, with a spread of lower risk investment asset classes. Alpha targets a strategic currency exposure of 80% in the portfolio base currency, to minimise foreign exchange volatility. The Alpha portfolio is actively managed and employs a 30% swing factor around its strategic exposure targets. Alpha has a one to three year investment horizon, allowing greater freedom and potential to achieve higher returns. Cash 2% Alternative Strategies 23% Plus is for investors who are prepared to accept a higher level of risk in pursuit of higher returns. The strategy has significant exposure to equities and other higher risk investments, but retains some exposure to lower risk assets to improve diversification and control volatility. Plus targets a strategic currency exposure of 71% in the base currency, and utilises a wider swing factor of 50%, giving greater flexibility to deliver returns. Plus has a one to five year investment horizon enabling the strategy to accept greater short term risk to enhance returns. Innovation Integrity Excellence

8 Asset Allocations Tactical Allocations is a dynamic strategy and while the allocations detailed highlight the long-term strategic targets, day-to-day tactical allocations may vary significantly from these levels in accordance with the Swing Factor employed. Efficient Strategic Allocations The strategies have been engineered through the process of efficient portfolio optimisation to achieve their respective target returns, for the lowest possible risk. The efficient strategic allocations are detail below: Income Alpha Plus Fixed Interest 40.0% 28.0% 10.0% Investment Grade 35.0% 23.0% 5.0% High Yield 5.0% 5.0% 5.0% Equity* 25.0% 45.0% 65.0% United Kingdom 14.0% 25.0% 36.0% North America 5.0% 9.0% 13.0% Europe 2.5% 4.5% 6.5% Swing Factors Swing factors enable to respond meaningfully to the economic climate, reducing risk during periods of turbulence and weakness and increasing it during periods of growth. Japan 1.5% 3.0% 4.25% Pacific Basin 1.25% 2.25% 3.25% Emerging Markets 0.75% 1.25% 2.0% Alternatives 33.0% 25.0% 23.0% 0% Arbitrage Hedge 8.0% 5.0% 5.0% -30% Plus 30% Market Hedge 5.0% 5.0% 8.0% -50% Alpha 50% Property 15.0% 10.0% 5.0% Income Specialist 5.0% 5.0% 5.0% Cash 2.0% 2.0% 2.0% 100% 100% 100% Income and Alpha utilise a swing factor of 30% either side of the strategic allocations, while Plus has a higher swing factor of 50%. * The equity regional breakdown is illustrated for sterling based portfolios reflecting a bias toward UK equities. US Dollar and Euro based portfolios reflect similar biases to US and European equities respectively. Capital International

9 strategies have been engineered through the process of efficient portfolio optimisation Innovation Integrity Excellence

10 Client Services Your Financial Adviser should be your principal point of contact should you wish to discuss any aspect of your portfolio. We work closely with Intermediaries to ensure they are kept fully informed of strategy, performance and portfolios. Portfolio Manager Although we encourage investors to contact their Financial Advisors, every account has a dedicated portfolio manager, and clients may contact their portfolio manager at any time, either by telephone, , fax or in person, during normal working hours. Redemption Structure s recommended initial investment term is a minimum of five years. An early redemption charge may be applicable on redemptions in excess of the annual withdrawal allowance, dependent on the length of time the portfolio has been held. The maximum redemption charge is 3.5% of the total contributions, which diminishes quarterly at a rate of 0.6% per annum. Reporting clients have secure access to their account via our website which is updated daily. In addition, clients receive contract notes on all transactions and the following quarterly reporting: Valuations & Statements Performance Reporting Detailed Portfolio Review Market Review & Outlook Further Information Further information regarding the Managed Portfolio Service can be found within our Terms of Business and other supporting literature. If you wish to discuss any aspect of the Managed Portfolio Service please do not hesitate to contact us: Telephone +44 (0) Facsimile: +44 (0) info@capital-iom.com Management Charges uses a transparent charging structure designed to minimise costs, but without compromising quality or service. The total annual charge is 1.6% of the portfolio value, deducted quarterly in arrears. VAT is currently applicable on a quarter of the total annual charge and is charged at the prevailing rate, if applicable. There are no setup charges or initial fees. Account Opening To open an account please complete the account opening form and send it, together with the appropriate Client Due Diligence information to: Capital International Limited Capital House Circular Road Douglas Isle of Man IM1 1AG Capital International

11 Isle of Man Head Office Capital International Group Capital House Circular Road Douglas Isle of Man IM1 1AG T : +44 (0) F: +44 (0) E: info@capital-iom.com South Africa Office Capital International SA Office NG101A Great Westerford 240 Main Road Rondebosch 7700 South Africa T : +27 (0) E: info@capital-sa.com The regulated activities are carried out on behalf of the Capital International Group by its licensed member company Capital International Limited is 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 CIG - Brochure - V

12 Capital International Group in