FF Fidelity Patrimoine

Transcription

1 FF Fidelity Patrimoine September 2014 Vienna, Austria For Investment Professionals Only David Ganozzi Fund Manager Fidelity Worldwide Investment

2 1 Fidelity Solutions 2 Solution Design 3 Tactical Asset Allocation 4 Strategy Selection 5 Positioning & Performance 2

3 Fidelity Solutions Fidelity Solutions 26 Investment Professionals Over 300 combined years experience 36.8bn in AUM globally Experts in: Solutions Design FIL s investment businesses and CIO responsibilities Dominic Rossi Equity Investment Fixed Income Investment Andrew D. Wells Fidelity Solutions Real Estate Investment Tactical Asset Allocation Strategy Selection Risk Management Provider of both investment products and services 100% 80% 60% 40% 20% Fidelity Solutions Assets Multi Asset, 47% Equity Multi Manager, 53% Institutional, 48% Retail, 52% ROW, 12% Japan, 19% Asia ex Japan, 21% Europe (inc UK) and others, 47% 0% Source: Fidelity Worldwide Investment, 31 August Assets and resources are of Fidelity Worldwide Investment, unless otherwise stated. 3

4 Fidelity Solutions Global team Andrew D. Wells Global CIO of Fixed Income, Fidelity Solutions and Real Estate James Bateman Head of Portfolio Management Martin Smith Head of Investment Operations Portfolio Management Tactical Asset Allocation Equity Research FI & Alternatives Research Solutions Design Product Management Operations Solutions Implementation Ayesha Akbar Portfolio Manager Trevor Greetham Portfolio Manager and Asset Allocation Director Nick Peters Portfolio Manager and Team Leader Eugene Philalithis Portfolio Manager and Team Leader Joo Hee Lee Portfolio Manager and Team Leader Katie Roberts Head of Product Management Brian Mitchell Investment Operations Manager Shillan Leach Head of Solutions Implementation Pek Ng Portfolio Manager Anna Stupnytska Economist Riccardo Muscio Research Analyst George Efstathopoulos Assistant Portfolio Manager Matt McDonnell Quant Analyst Rebecca Donaldson Investment Director Simon Maggs Quantitative Analyst Aaron Monk Senior Solutions Implementation Analyst Rita Grewal Portfolio Manager Kevin O Nolan Assistant Portfolio Manager Eileen Rowsome Research Analyst Michael Costa Research Analyst Hiroki Hashimoto Research Associate Christian Goldsmith Investment Director Alex Allsop Senior Data Analyst Peter Holland Senior Solutions Implementation Analyst David Ganozzi Portfolio Manager Charlotte Harington Asset Allocation Analyst Tadashi Shirai Research Analyst Becky Qin Research Analyst Charles-Henri Kerkhove Product Specialist Eishwar Sharma Risk Analyst Richard Bannister Solutions Implementation Analyst Keiko Mitsuda Portfolio Manager Alice Logue Research Associate Cataldo Azzariti Research Associate James Pearson Product Specialist Rory Bourne Data Analyst Sonal Patel Solutions Implementation Analyst Ian Samson Research Associate Tigran Manukyan Research Associate Leslie Kiddoo Investment Writer Helen Sargison Project Manager Fadia Ramjaun Solutions Implementation Analyst Lucy Wallcraft Product Associate TBA Risk Analyst Gemma Roberts Third Party Implementation Analyst KEY: Operating Committee France based India based Hong Kong based London based Singapore based Tokyo based Leone Kleyn Business Analyst Mamata Singh Senior Product Specialist Shilpi Kansal Product Specialist Christophe Fassi Senior Portfolio Services Analyst Source: Fidelity Worldwide Investment, September

5 Fidelity Solutions Three areas of investment expertise Solutions Design: Delivering client outcomes Solutions Design Which asset classes? What is my benchmark? How should my portfolio change through time? Tactical Asset Allocation: Taking advantage of shorter term opportunities Investment Solution What s happening in the economy? Which asset classes now? Which region? Tactical Asset Allocation Strategy Selection Strategy Selection: Selecting the best talent from within and outside of Fidelity Which instruments give me the best exposure? Which fund managers should I own? How should I tilt between styles? 5

6 1 Fidelity Solutions 2 Solution Design 3 Tactical Asset Allocation 4 Strategy Selection 5 Positioning & Performance 6

7 Applying Our Strategic Skills Designing the Optimal Static Solution Expected performance Pure equity exposure Simulations based on efficiency frontier Client objectives Strategic allocation Pure commodity exposure Pure fixed income exposure Pure property exposure Pure cash exposure Client constraints Expected risk Source: Fidelity Worldwide Investment. This represents the opinion of the Fidelity Solutions. For illustrative purposes only. 7

8 FF Fidelity Patrimoine Strategic Asset Allocation Optimised SAA Allocation (%) Strategic allocation FF - Patrimoine Commodities 10 Equities 30 Fixed Income 50 50% Europe 50% World ex Europe 100% Euro Fixed Income Cash 10 Source: Fidelity Worldwide Investment. 8

9 1 Fidelity Solutions 2 Solution Design 3 Tactical Asset Allocation 4 Strategy Selection 5 Positioning & Performance 9

10 Tactical Asset Allocation Asset class rotation and the economic cycle Disinflationary phases Inflationary phases Inflation Bonds Equities Commodities Cash Rate hikes GDP growth Rate cuts Reflation Recovery Overheat Stagflation Disciplined framework for tactical asset allocation across the economic cycle Portfolio managers adapt the AAG values to the specifics of their own portfolios Asset classes behave differently in inflationary, disinflationary and economic expansion phases Flexible allocation critical for managing risk, protecting capital and enhancing returns Source: Fidelity Worldwide Investment. For illustrative purposes only. 10

11 FF Fidelity Patrimoine: TAA in practice Potential for sharp reduction in risk exposure Allocation (%) Strategic allocation TAA leeway Commodities Equities Fixed Income Cash Source: Fidelity Worldwide Investment. 11

12 FF Fidelity Patrimoine: TAA in Practice Flexibility to adapt to volatile markets Equities Commodities Maximum «growth assets» weight Maximum equity weight - 20,8% in risk assets 54% 33,2% Source: Fidelity Worldwide Investment, 31 August «Growth assets» : Equities and Commodities. 12

13 1 Fidelity Solutions 2 Solution Design 3 Tactical Asset Allocation 4 Strategy Selection 5 Positioning & Performance 13

14 Investment universe Key overview Strategy selection Quantitative screening Risk management Quantitative analysis Qualitative analysis Manager recommendation Portfolio construction Model portfolios Equity Manager blending Model portfolio Buy list Client portfolio Implementation Client portfolio Sell discipline Model portfolios Fixed Income Risk management Strategy selection Portfolio construction Implementation Source: Fidelity Worldwide Investment. For illustrative purposes only. 14

15 In Detail: Strategy Selection Analyst manager recommendations Analysts make manager recommendations Discussion by group of peers and senior and experienced investment professionals Analysts own their decisions not a committee Consistent approach for third party and internal managers Source: Fidelity Worldwide Investment. For illustrative purposes only. Detailed investment thesis and audit trail 15

16 In Detail: Risk Management and Oversight Formal oversight Portfolio Manager Daily monitoring Quarterly Fund Review meetings Historical review of portfolio composition and performance IROC (Investment & Risk Oversight Committee) Monthly review Independent formal review of portfolio risk metrics Portfolio CIO / Head of Portfolio Management Regular monitoring Quarterly Fund Review Chairs meeting which reviews portfolio construction, performance attribution and risk Investment Compliance Daily monitoring Portfolio guidelines and constraints Compliance risks Multiple layers of internal and independent oversight Source: Fidelity Worldwide Investment. For illustrative purposes only. 16

17 1 Fidelity Solutions 2 Solution Design 3 Tactical Asset Allocation 4 Strategy Selection 5 Positioning & Performance 17

18 FF Fidelity Patrimoine: Current positioning As at 31 August 2014 Asset class allocation Equity allocation Fixed Income allocation = = = + ++ Equities US Euro Investment Grade Commodities Europe Asia ex Japan Euro High Yield Fixed Income Japan Euro Short Term Cash Emerging Markets Emerging Debt EQUITIES: Overweight position maintained FIXED INCOME: Stay neutral COMMODITIES: Neutral allocation. Source: Fidelity Worldwide Investment, 31 August

19 FF Fidelity Patrimoine: Current positioning As at 31 August 2014 (%) Strategic asset allocation Tactical allocation margins as at 31 August 2014 Commodities Equities Fixed Income Cash Source: Fidelity Worldwide Investment, 31 August

20 FF Fidelity Patrimoine: Current positioning As at 31August 2014 (%) SAA TAA leeway as at Commodities Equities Fixed Income Cash Geographical breakdown of the equity component (as %) as at Europe 16.5 United States 14.5 Emerging markets 3.0 Japan 3.0 Asia ex-japan 1.1 Source: Fidelity Worldwide Investment, 31 August

21 FF Fidelity Patrimoine: Current positioning As at 31August 2014 (%) SAA TAA leeway as at Commodities Equities Fixed Income Fixed Income breakdown (as %) as at Euro Investment Grade 38.8 Euro High Yield 7.6 Money Market 3.4 Cash Source: Fidelity Worldwide Investment, 31 August

22 FF Fidelity Patrimoine: Performance As at 31August 2014, % in EUR A-EUR 2014YTD * 1 year 3 years Volatility 3 years Fidelity Patrimoine Category Target volatility: 6 Source: Fidelity Worldwide Investment and Morningstar. Net performances on a NAV to NAV basis, in EUR, as at 31 August * As at the change of the fund's name at 01 April Category: Morningstar GIF EUR Moderate Allocation. Benchmark index: 50% BofA ML Euro Large Cap / 15% MSCI Europe / 15% MSCI World ex Europe / 10% DJ UBS Commodity Index / 10% Euro 1w Libid. 22

23 Conclusion Global business with 35.1bn in Assets Under Management Experienced investment professionals with a strong long-term track record Experts in Solution Design, Tactical Asset Allocation, Manager Selection and Risk Management Transparent investment process easy to understand, analyze and assess Transparent and frequent communication Robust operating and trading platform A dedicated portfolio manager based in Paris Backed by the in-depth resources from the different franchises of Fidelity Worldwide Investment Source: Fidelity Worldwide Investment, 31 August

24 Appendix

25 FF Fidelity Patrimoine Fund description Fund name: Structure: Investment description: Comparative Index: Fund Manager: Fidelity Funds Fidelity Patrimoine SICAV Conservative approach aimed at providing moderate long-term capital growth. Invests in a range of global assets providing exposure to company shares, bonds, commodities and cash with a European bias. Fund uses the optimal combination of Fidelity s in-house managers with implementation of tactical asset allocation 10% EUR 1W LIBID, 50% BofA ML Euro Large Cap, 15% MSCI Europe, 15% MSCI World ex Europe, 10% DJ UBS Commodity Index David Ganozzi Launch date: December 1997, fund re-engineered in March 2011 AuM: 143 million ( ) Base currency: Registered for sale: EUR Austria, Finland, France, Germany, Guernsey, Iceland, Ireland, Italy, Jersey, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, United Kingdom Source: Fidelity Worldwide Investment, 30 June

26 David Ganozzi Portfolio Manager Responsibilities Portfolio Manager 2000 present Previous Experience Head of Strategy, Crédit Agricole Asset Management Equity Strategist, Sell Side, BNP Equities Fixed Income Strategist, Sell Side, CDC Marchés Economist, Société Générale David Ganozzi Based in: Paris Investment experience since: 1993 Education Ecole Nationale de la Statistique et de l Administration Economique (ENSAE) Source: Fidelity Worldwide Investment, September

27 Disclaimer.This information is for Investment Professionals only and should not be relied upon by private investors. It must not be reproduced or circulated without prior permission. Research professionals include both analysts and associates. Assets and resources as at 31/03/2014 are those of FIL Limited. Data is unaudited. Fidelity/Fidelity Worldwide Investment means FIL Limited and its subsidiary companies. Unless otherwise stated, all views are those of Fidelity. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited. Fidelity Funds is an open-ended investment company established in Luxembourg with different classes of shares. Reference to FF before a fund name refers to Fidelity Funds. Fidelity only offers information on products and services and does not provide investment advice based on an individual's circumstances. The value of investments can go down as well as up and investors may not get back the amount invested. For funds that invest in overseas markets, changes in currency exchange rates may affect the value of an investment. Foreign exchange transactions may be effected on an arm's length basis by or through Fidelity companies from which a benefit may be derived by such companies. Past performance is not a reliable indicator of future results. This document may not be reproduced or circulated without prior permission. No statements or representations made in this document are legally binding on Fidelity or the recipient. Data Source 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The value of bonds is influenced by movements in interest rates and bond yields. If interest rates and so bond yields rise, bond prices tend to fall, and vice versa. The price of bonds with a longer lifetime until maturity is generally more sensitive to interest rate movements than those with a shorter lifetime to maturity. The risk of default is based on the issuer's ability to make interest payments and to repay the loan at maturity. Default risk may therefore vary between different government issuers as well as between different corporate issuers. We recommend that you obtain detailed information before taking any investment decision. Investments should be made on the basis of the current prospectus and Key Investor Information Document (KIID), which is available along with the current annual and semi-annual reports free of charge from our distributors, from our European Service Centre in Luxembourg; Germany: Investments should be made on the basis of the current prospectus and/or the Key Investor Information Document (KIID), which is available along with the current annual and semi-annual reports free of charge from FIL Investment Services GmbH, Postfach , Frankfurt/Main or Issued by FIL Investment Services GmbH. Austria: Investments should be made on the basis of the current prospectus and/or the Key Investor Information Document (KIID), which is available along with the current annual and semi-annual reports free of charge from FIL Investment Services GmbH, Kastanienhöhe 1, D Kronberg im Taunus, Germany; as well as with the Austrian paying agent UniCredit Bank Austria AG, Vordere Zollamtstrasse 13, A-1030 Wien, FIL (Luxembourg) S.A. Zweigniederlassung Wien, Mariahilfer Strasse 36, 1070 Wien or Issued by FIL (Luxembourg) S.A. Malta: Growth Investments Limited is licensed by the MFSA. Fidelity Funds are promoted in Malta by Growth Investments Ltd. in terms of the EU UCITS Directive and Legal Notices 207 and 309 of The Funds are regulated in Luxembourg by the Commission de Surveillance du Secteur Financier. Switzerland: Our legal representative in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich. Our paying agent for Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich. Italy: Please contact your financial advisor or the local branch of your bank in Italy. 27

28 Disclaimer This information is for Investment Professionals only and should not be relied upon by private investors. It must not be reproduced or circulated without prior permission. Spain: For the purposes of distribution in Spain, Fidelity Funds is registered with the CNMV Register of Foreign Collective Investment Schemes under registration number 124, where complete information is available from Fidelity Funds authorised distributors. The purchase of or subscription for shares in Fidelity Funds shall be made on the basis of the Key Investor Information Document (KIID) that investors shall receive in advance. The Key Investor Information Document (KIID) is available free of charge and for inspection at the offices of locally authorised distributors as well as at the CNMV. Portugal: In Portugal, Fidelity Funds are registered with the CMVM and the legal documents can be obtained from locally authorised distributors. Nordic region: Please contact your financial advisor or the local branch of your bank in Nordic countries. The Netherlands: In the Netherlands, documents are available from FIL (Luxembourg) S.A., Netherlands Branch (registered with the AFM), World Trade Centre, Tower H, 6th Floor, Zuidplein 52, 1077 XV Amsterdam (tel ). Fidelity Funds is authorised to offer participation rights in the Netherlands pursuant to article 2:66 (3) in conjunction with article 2:71 and 2:72 Financial Supervision Act. Belgium: We recommend that you obtain detailed information before taking any investment decision. Investments should be made on the basis of the current prospectus/key Investor Information Document (KIID), which is available along with the current annual and semi-annual reports free of charge from our European Service Centre in Luxembourg, and from CACEIS Belgium S.A., the financial service provider in Belgium which head office is based avenue du Port 86C, b320, 1000 Bruxelles.Issued by FIL Investments International (FCA registered number ) a firm authorised and regulated by the Financial Conduct Authority. FIL Investments International is a member of the Fidelity Worldwide Investment group of companies and is registered in England and Wales under the company number The registered office of the company is Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ, United Kingdom. Fidelity Worldwide Investment s VAT identification number is ISG