Intelligent Portfolio (IQ ~ Asset Allocation) Fund presentation

Transcription

1 Intelligent Portfolio (IQ ~ Asset Allocation) Fund presentation DECEMBER 2010

2 Intelligent Portfolio (IQ ~ Asset Allocation) What is this Fund? Why should you invest in Intelligent Portfolio (IQ ~ Asset Allocation)? Source: Castlestone Management 2

3 What is the Intelligent Portfolio (IQ ~ Asset Allocation)? Fund Objective The investment objective is to provide a real return with a focus on capital preservation and cumulative returns. Fund Strategy Intelligent Portfolio (IQ ~ Asset Allocation) can invest across holdings in equities, fixed income, commodities, alternative assets, property, currencies and cash directly or indirectly via underlying funds. Fund overview Multi-asset class Actively managed, to limit downside risk Targeted return of $USD cash +5% over 36 months Flexibility for efficient asset allocation Management fee 0.50%, with no performance fee and an administration fee of % on the intermediary entry and intermediary exit classes Leveraged and unleveraged share classes available Source: Castlestone Management. 3

4 Historical monthly performance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year % -3.80% 6.04% -1.29% % -6.98% -3.10% -5.66% 3.80% 4.08% % % -0.93% 1.21% 1.89% 2.11% -0.39% -0.53% 2.04% -2.30% 1.11% 2.13% 2.55% 5.19% % -7.47% -1.87% 0.21% -9.81% Source: Castlestone Management. The data denotes performance of Intelligent Portfolio (IQ ~ Asset Allocation) Fund share class C net of management fees, performance fees and expenses since September 1, Note: Past performance cannot be relied on as a guide to future performance. 4

5 Intelligent Portfolio (IQ ~ Asset Allocation) Asset classes Portfolio Minimum Guidelines Maximum Operational Guidelines Alternative Asset Strategies* 0% 100% 20-50% Equities 0% 100% 20-80% Fixed Income 0% 100% 0-30% Money Markets 0% 100% 0-30% Property 0% 100% 10-25% Source: Castlestone Management. *Comprises of commodities and alternative assets 5

6 Returns Across Strategies Vary Significantly Rank * 1 Commodities % Real Estate % Commodities % Fixed Income +8.85% Real Estate % Fixed Income +3.75% 2 Real Estate % Equities % Equities +5.49% Cash +1.37% Equities % Alternative Assets -1.25% 3 Equities +4.91% Alternative Assets +9.25% Cash +4.44% Alternative Assets % Alternative Assets % Cash +0.06% 4 Fixed Income +3.60% Cash +4.83% Alternative Assets +4.24% Equities % Commodities % Equities -6.65% 5 Cash +3.19% Fixed Income +0.88% Fixed Income +3.93% Commodities % Fixed Income +0.86% Commodities % 6 Alternative Assets +2.72% Commodities % Real Estate -7.69% Real Estate % Cash +0.15% Real Estate -6.93% Source: Bloomberg & Castlestone Management. *2010 Year to date is up to and including June Cash: 3-Month T-Bill. Bonds: ML Global Government Bond Index. Hedge Funds: HFRX Global Hedge Fund Index. Equities: S&P 500. Commodities: S&P GSCI. Real Estate: MSCI World Real Estate. Note: Past performance cannot be relied on as a guide to future performance 6

7 Annualised returns and standard deviation September 2008 October % Annualised Returns Standard Deviation 15% 10% 5% 0% -10% -20% -30% Intelligent Portfolio (IQ ~ Asset Allocation) Porcupine Global Macro Plus S&P 500 GSCI Source: Bloomberg & Castlestone Management. The data denotes performance of Intelligent Portfolio (IQ ~ Asset Allocation) Fund share class C net of management fees, performance fees and expenses since September 1, The data denotes the actual performance of the Porcupine Global Macro Plus institutional share class C net of management and performance fees from August 31, Note: Past performance cannot be relied on as a guide to future performance. 7

8 Cumulative Return Cumulative returns September 2008 October % 10% 0% -10% -20% -30% -40% -50% -60% Intelligent Portfolio (IQ ~ Asset Allocation) Porcupine Global Macro Plus S&P 500 GSCI Source: Bloomberg & Castlestone Management. The data denotes performance of Intelligent Portfolio (IQ ~ Asset Allocation) Fund share class C net of management fees, performance fees and expenses since September 1, The data denotes the actual performance of the Porcupine Global Macro Plus institutional share class C net of management and performance fees from August 31, Note: Past performance cannot be relied on as a guide to future performance. 8

9 Investment process Fundamental Research Idea Generation Optimal Weightings Risk Management Control Asset flows Market anomalies Instrument Weighting (VaR / stress testing) Portfolio Construction Scenario analysis / correlation risk Economic data / global macro analysis Sector analysis Economic trends Correlation risk (Short & long term) Execution Geopolitical issues & political bias Short-term Price influences Setting price target Setting stop-limits Continuous active management Catalyst for change in prices / instruments Current price versus fundamentals Price target / stop-limits / stress testing Quantitative analysis Change in themes (time frame) Monitor daily VaR Source: Castlestone Management. 9

10 Performance and risk statistics September 2008 October 2010 Intelligent Portfolio (IQ ~ Asset Allocation) Cumulative returns % Annualised returns % Monthly average returns -1.21% % of positive monthly returns 42.31% Standard deviation 14.18% Sharpe ratio Sortino ratio Source: Castlestone Management. The data denotes performance of Intelligent Portfolio (IQ ~ Asset Allocation) Fund share class C net of management fees, performance fees and expenses since September 1, Note: Past performance cannot be relied on as a guide to future performance. 10

11 Investment team Angus Murray Portfolio Manager, Porcupine Angus is the Managing Principal and founder of Castlestone Management and the Portfolio Manager of Porcupine Global Macro Plus. Angus previously held the position as President of Macquarie Bank (USA) Inc. in New York and was Co- Head of the International Equity Department of NatWest Markets USA. He holds a Bachelor of Financial Economics from the University of London, England. Claudio Oliveira Head of Trading Claudio joined Castlestone Management in April 2007 to provide fundamental research and trading execution. Prior to joining Castlestone Management, Claudio worked for Deutsche Bank in New York for four years as an analyst within the credit risk department. Claudio has a BA in Economics with a minor in Mathematics from Rutgers University. Brad Yim Portfolio Manager, Asset Allocation & Currencies Bradley joined Castlestone Management from AQR Capital Management in New York where he held a position as an associate portfolio manager with the global macro group. Prior to AQR he was a vice president / research analyst at Bank of America Asset Management in their alternative investments group. Bradley earned his MBA from the Wharton School of Business, a masters in Logistics from MIT and a BSc in Systems Engineering from the University of Virginia. Arrash Zafari Portfolio Manager, Equities Arrash joined Castlestone Management as a Portfolio Manager, Equities in May Arrash was previously with Millennium Capital Partners (London) where he held the position of Analyst. Prior to this, Arrash worked for Orbis Funds (London) for four years where he gained considerable experience across numerous sectors as a generalist. Arrash holds an Honors Masters degree in International Relations from the University of St Andrews, UK. Connor Noonan Commodities Analyst Matt Bauman Trader Robert Hunt Investment Manager Connor joined Castlestone Management, as Commodities Analyst. Prior to joining the company, Connor was the Head of Soft Commodity trading at Infinium Capital Management in Chicago and has held various trading positions with Tibra Trading and OSTC, both in London. Connor holds a BSc in Business Administration with a Minor in Political Science from the University of Kansas. Matt joined Castlestone Management from Deutsche Bank in New York where he worked in the Equity Client Services Group for global trading. Matt has obtained a BSc; Double Major in Finance and Real Estate from Florida State University. Robert is an Investment Manager for Castlestone Management Inc. in the British Virgin Islands. He provides analysis and research based support to the Investment Committee whilst being responsible for trading of certain funds. He is involved in the due diligence of potential new investments and in the creation, strategy and development of new funds. Robert joined Castlestone Management in 2005 after receiving a Bachelor of Financial Services with Honors from Bournemouth University, England. Source: Castlestone Management. 11

12 Supported by leading services providers Circle Investment Support Services B.V. Administrator Deloitte Accountants B.V. Auditor Maples and Calder Legal advisors Source: Castlestone Management. 12

13 Important information This document is intended for and directed at investment professionals and is not intended for retail customer use. This document is not offering to sell any product. Any transaction requires our subsequent formal agreement which will be subject to internal approvals and binding transaction documents. Castlestone Management ( We ) will not be liable for any use you make of any information in this document. We are not your advisor or fiduciary. We are not recommending or making any representations as to suitability of any product or the tax, legal or accounting treatment of any product. We are not responsible for information stated to be obtained or derived from third party sources. All opinions are given as of the date hereof and are subject to change. We are not obliged to inform you of any such changes. Any simulated performance data and/or past performance data contained herein is not a reliable indicator of future performance. Income from investments may fluctuate and investors may not recoup the amount originally invested. Any forward-looking statements concerning the financial condition, results of operations and businesses of Castlestone Management expressed or implied, are based on management's current expectations and assumptions, which may change without notice, and are no guarantee of future results, performance or events This document is confidential. No part of it may be reproduced, distributed or transmitted without Castlestone Management s written permission. Neither this document nor any copy of it may be distributed, directly or indirectly, in the United States of America or its territories or possessions (the United States or to any US Person as defined in Regulation S under the United States Securities Act of 1933 (as amended). Any failure to comply with these restrictions may constitute a violation of United States securities law. This is not exhaustive; other regional-specific wording may apply. If in doubt, please consult with Castlestone Management s Legal and Compliance department. Castlestone Management Limited is authorized and regulated by the Financial Services Authority in the UK. Castlestone Management Limited is authorized by the Financial Services Board in South Africa. Castlestone Management Inc. is regulated by the British Virgin Islands Financial Services Commission. This fund is not available for distribution in Singapore. December