Cautious Portfolio Report November 2018

Transcription

1 Cautious Portfolio Report November 2018

2 Important Information The model portfolio represents the range of funds that together we consider best suited to your attitude toward investment risk. The service we provide is an advisory service which means that we will revert to you for your explicit agreement before we make any changes to the composition of your portfolio. This means of course that at any given time, your actual portfolio of funds may diverge to a greater or lesser degree from the model until such time as your portfolio is reviewed and rebalanced in line with the Client Services Agreement you have agreed to.

3 Portfolio Cautious Market Perspective As a result we feel that October s sell-off was a short-term turn in momentum, we do not see it having been driven by a change in fundamentals. October turned out to be quite a month for global equity markets, which posted their worst month for six years. Fears over quicker than anticipated US interest rate hikes and slower global growth spooked investors who have already been contending with trade wars, Brexit uncertainty and the Italian government s budget row with the EU. The Fed has been telegraphing its interest rate intentions to markets for some time. Bond markets have been trying to price this information in, with some success, but it seems that equity investors have only just woken up to the news and October s panic selling ensued. Fortunately, some stability looks to be returning to the markets but volatility will remain. With the exception of the Italian government s budget announcement, none of the concerns that spooked the markets are new. As a result we feel that October s sell-off was a short-term turn in momentum, we do not see it having been driven by a change in fundamentals. Consequently, equities remain our favoured asset class over the medium to long-term. Diversification is key though and our top-down view remains focused on the belief that there is long-term value to be had in equities, corporate bonds and commercial property versus both government bonds and cash. 3

4 Description, Aims, Objectives The portfolio includes a combination of assets that provides exposure to UK and global fixed interest securities, commercial property, targeted absolute return funds, and UK and global equities. The objective is long term capital appreciation, achieved by using well researched and established investment principles. The portfolio is ideally suited to investors who are able to accept some short term volatility in order to achieve potentially higher returns than cash deposits and inflation over the medium to long term. The portfolio typically has an FE Risk Score in the range of 30 to 40, meaning that, over the medium to long term, it is unlikely to reflect more than 40% of the volatility of the FTSE 100 Index. Portfolio Key Facts Ongoing Charge Figure (OCF): 0.66% p.a. Benchmark: CDV B Portfolio Target Availablility: Individual Savings Account, General or Collective Investment Account, Personal Pension, SIPP (Self- Invested Personal Pension) and Investment Bond (both Onshore and Offshore) FE Risk Score: 39 (44) The OCF shown above does not include any fee that your adviser may charge and is the total of known recurring charges levied within the funds. For the purposes of comparison, it represents the known recurring annual charges (excluding transactional charges and platform costs) at the date of production of this factsheet, and therefore the actual cost will depend on the platform selected, the level of adviser fee charged and the stated transaction charges at a given point in time. Further details are available on request. Key Investor Information Documents and individual fund fact sheets for the underlying funds are available on request. 4

5 Portfolio Cautious Performance, Composition, Risk Holdings Cumulative Performance Versus Benchmark (%) Global Equity 7% Fundsmith Equity UK Equity 14% HSBC FTSE All Share Lindsell Train UK Equity Unicorn UK Income US Equity 6% Vanguard US Equity Index European Equity 7% Vanguard FTSE Developed Europe ex UK Equity Index Asia Pacific Equities 4% GLG Partners Japan Core Alpha Stewart Investors Asia Pacific Leaders Global Emerging Market 2% Equity Fidelity Emerging Markets Months Cautious Portfolio 0.69% -3.26% -1.32% -0.32% 15.31% Target Portfolio 0.81% -3.71% -2.22% -1.15% 15.37% UK Retail Price (C) % 1.57% 3.20% 9.48% Halifax Liquid Gold (D) 0.01% 0.03% 0.05% 0.10% 0.25% Performance To: 12/11/2018 Source: Financial Express Portfolio & Target Versus Inflation Since Launch Property 10% Legal & General UK Property Feeder Cash, Fixed Interest & Absolute Return 45% Artemis Strategic Bond Church House Tenax Absolute Return Fidelity Strategic Bond Invesco Global Targeted Returns Jupiter Strategic Bond Newton BNY Mellon Global Dynamic Bond Merian Global Equity Absolute Return Past performance is not a guide to future performance. The value of investments and any income from them will fall as well as rise; you may get back less than the amount invested. 5

6 Performance, Composition, Risk Asset Allocation Top Ten Holdings Company Holding HM Treasury United Kingdom 1.59% DMO 1.75% GILT 22/07/19 GBP 0.01 Unilever 0.76% Diageo 0.73% United States of America 0.64% Relx Nv 0.60% Regional Allocation HM Treasury United Kingdom 0.58% DMO 0.75% GILT 22/07/23 BGP (WI) Hargreaves Lansdown Plc 0.58% London Stock Exchange Group 0.52% United States of Amer Treas Bills 3% BDS 15/02/47 USD 100 Australian Govt Loans (Cmnwlth of) 3.25% LN STK 21/06/39 AUD % 0.46% Sector Allocation 6

7 Portfolio Cautious Additional Information Financial Express FE Risk Scores provide a single, easy to understand measurement of the relative risk of individual investments or portfolios. In the UK, FE Risk Scores define risk as a measure of volatility relative to the FTSE 100 index, which has a risk rating of 100. Instruments more volatile than the FTSE 100 have a score above 100 and vice versa, giving a reliable indication of relative risk. FE Crown Fund Ratings are quantitative ratings ranging from one to five designed to help investors identify funds which have displayed superior performance in terms of stock picking, consistency and risk control. The top 10% of scores in each grouping - five FE Crowns The next 15% - four FE Crowns The next 25% - three FE Crowns The next 25% - two FE Crowns The bottom 25% - one FE Crown Important information All data is correct at 12/11/2018. Past performance is not a guide to future performance. The value of investments and any income from them will fall as well as rise; you may get back less than the amount invested. Higher volatility investments are subject to sudden and large falls in value and could result in a loss equal to the sum invested. Certain investments are not readily realisable and investors may experience difficulty in realising the investment or in obtaining reliable information on the value or associated risks. Changes in rates of exchange may have an adverse effect on the value or price of, or income generated by, investments denominated in currencies other than Sterling. Portfolio returns do not show the impact of professional fees which will be shown separately within your Key Investor Information Documents. This document has been prepared and published by Chase de Vere Independent Financial Advisers Limited (CDV) (FCA number ) who are authorised and regulated by the Financial Conduct Authority. The information and opinions contained herein are based upon sources believed by CDV to be reliable, but which may not have been independently verified and no guarantees, representations or warranties are made as to its accuracy, completeness or suitability for any purpose. Any opinion or estimate expressed in this publication is CDV s current opinion as of the date of this publication and is subject to change without notice. Any references to the impact of taxation are made in the context of current legislation and may not be valid should levels and/or bases of taxation change. Some fund managers may levy an additional fee which can vary on a regular basis and therefore cannot be determined in advance. As such, these fees will not be included within the assumed charges or on any illustrations you receive. Portfolio Target comprises the weighted sector average appropriate to the relevant underlying portfolio. 7