MULTI-ASSET ACTIVE PORTFOLIO RANGE (APR)

Transcription

1 MULTI-ASSET ACTIVE PORTFOLIO RANGE (APR) Portfolio Fact Sheets for February 2018 Risk Controlled Investment Management

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3 % Multi-Asset Total Return Range Key Features and Benefits February 2018 Overview Marketstar offers a range of nine risk-progressive model portfolios to suit the needs of most investors from the more cautious to the more adventurous. The model portfolios are actively managed by our investment team to remain within defined risk parameters at all times. The portfolios are available through providers in key products including General Investment Accounts, ISAs, SIPPs, SSASs, Personal Pensions, Onshore and Offshore Investment Bonds. Portfolios are managed to risk categories defined by Defaqto - your financial adviser will help you choose the portfolio which is right for you. Our model portfolios have been running successfully since 2008 with a growing reputation in the market for consistent performance. Range of Portfolios Total Return Portfolios Defaqto Defaqto Risk Rating Risk Descriptor Positive Return Portfolio Defaqto 2 Very Cautious Defensive Growth Portfolio Defaqto 3 Cautious Conservative Growth Portfolio Defaqto 4 Cautious Balanced Conservative Income Portfolio Defaqto 4 Cautious Balanced Diversified Growth Portfolio Defaqto 5 Balanced Diversified Income Portfolio Defaqto 5 Balanced Dynamic Growth Portfolio Defaqto 6 Balanced Growth Dynamic Income Portfolio Defaqto 6 Balanced Growth Speculative Growth Portfolio Defaqto 7 Growth How are our portfolios constructed? Our investment team constructs multi-asset portfolios using a robust, proprietary five-layer research framework. This incorporates quantitative and qualitative relative valuation, macroeconomic, political and technical analysis, before moving to asset selection. Here, the team look mainly to pick funds run by some of the most innovative fund managers across the world. They ensure investment in a broad spread of asset classes to limit risk through diversity. Details of the major asset classes, investment sectors, geographical spread and top holdings can be found on each portfolio factsheet. How are we different? Downside Risk Focus: our first priority is to significantly grow our clients capital over time, within the parameters of their chosen risk rating. Whilst risk must be taken to produce investment returns, a focus on limiting capital losses during periods of turbulence is equally important, and is a significant factor in our portfolio construction framework. Our outperformance over peers in periods of falling markets is a testament to this. Risk Management: we keep numerous asset classes and securities under review, allocating to and selecting those which we believe are likely to perform well in the medium term. Our rigorous investment process produces well diversified investment portfolios that sit within clearly defined risk parameters, leading to consistent risk adjusted returns for our clients. Differentiated Holdings: we endeavour to position our portfolios in a manner we believe will allow them to best meet their risk and return benchmarks over time. To achieve this, our investment team have the freedom to express their market views in potentially smaller, lesser-known or under-owned investment vehicles, but which they feel offer greater return potential than the market perceives. Meaningful benchmarks: to link our portfolios performance to a relevant and understandable benchmark, we use the Consumer Price Index measure of inflation. Whilst we monitor our performance closely against our peers, we have found that inflation-linked benchmarks are intuitively understood by our clients. Key Features & Benefits Consistent performance Focus on downside risk Rigorous investment process Differentiated holdings Defined risk parameters Meaningful benchmarks Attractive pricing ISA & SIPP compliant Widely available Structure - Segregated Portfolios Portfolio Charges AMC incl. VAT 0.48% OCF of underlying funds % Total above % AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 What is Volatility? Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time, and can be used to gauge the risk of an investment. Asset class and security diversification is essential to reduce overall portfolio volatility and therefore risk. Where can I get further information? For further information, please ask your financial adviser for more details or get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

4 Multi-Asset Total Return Range Key Features and Benefits February 2018 Availability of Portfolios Independent Platforms Fund Supermarkets Life & Pension Offices Ascentric Cofunds Aviva Marketstar (Pershing) Old Mutual Wealth Standard Life Novia James Hay Nucleus Aegon Transact Zurich Key Performance Data Total Return Portfolios Risk Rating Benchmark Benchmark Annualised Return* Portfolio Annualised Return* Maximum Drawdown Since Launch Annualised Volatility Since Launch Positive Return DF 2 CPI 1.63% 2.01% -1.33% 1.09% Defensive Growth DF 3 CPI + 1% 3.24% 4.15% -6.01% 3.30% Conservative Growth DF 4 CPI + 2% 4.26% 5.98% -7.80% 4.81% Conservative Income DF 4 CPI + 2% 4.26% 5.69% -8.57% 4.94% Diversified Growth DF 5 CPI + 3% 5.28% 7.66% -8.69% 6.59% Diversified Income DF 5 CPI + 3% 5.28% 7.21% -9.48% 6.38% Dynamic Growth DF 6 CPI + 4% 6.30% 9.91% -9.53% 8.20% Dynamic Income DF 6 CPI + 4% Speculative Growth DF 7 CPI + 5% 7.33% 9.97% % 9.94% Cost of Ownership MSCI World Index %** 12.46%** *From relevant launch dates of respective portfolios. **MSCI data from 7 th October Keeping costs under control contributes greatly to overall performance, and we constantly strive to minimise underlying holdings costs. That being said, cost rarely equates to value, and to this end our investment team selects what they believe will be the vehicles providing excellent risk adjusted outperformance over the medium to long-term. Ollie Stone Portfolio Manager Typical Annual Portfolio Cost Annual Management Charge* 0.48% Underlying fund costs - Fund AMC - Fund costs - OCF of underlying funds 0.67% 0.11% 0.78% Total above 1.26% * includes VAT where applicable Important Notices & Risk Warning This Marketstar Model Portfolio Key Features & Benefits factsheet is for illustrative purposes only. Investments linked to the model portfolios may not exactly replicate the model portfolios described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is for private circulation and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate as a result of currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No

5 Positive Return Portfolio Defaqto 2 February 2018 Overview The Marketstar Positive Return Portfolio invests in a range of diversified and primarily alternative investment strategies which seek to deliver low volatility in all market conditions. The strategic and tactical asset allocation delivers top down risk control whilst quantitative and qualitative screening facilitates deployment of client money into underlying investment instruments that will deliver the attributes required to meet the performance objectives of the portfolio. Investment Objective The Positive Return Portfolio aims to maintain wealth by delivering returns at least in line with inflation over every rolling 5-year period while a very cautious approach maintains risk to capital at levels similar to cash-based deposits and at a fraction of global stock markets and commodities. The portfolio is managed to remain within Defaqto risk rating 2 (very low risk) at all times. For a full explanation of the DF risk rating system please consult your financial adviser. Net Performance Data Name 3m 6m 1 year 3 years 5 years Positive Return Portfolio DF % 0.11% 0.88% 2.59% 9.91% Inflation CPI Index* 0.67% 1.65% 3.45% 5.64% 8.03% * Contains public sector information licensed under the Open Government Licence v2.0. All performance figures shown on this factsheet are net of underlying fund charges (including fund performance fees where applicable) and net of Marketstar investment management fees. Net Performance* * Portfolio launched in September 2012 data only given from launch date Positive Return Portfolio Structure Segregated Portfolio Launched 1 Sept 2012 Target Return CPI No. of Holdings 16 Equity Min/Max 0% NISA-compliant Yes Recommended investment period 3-5 years + Estimated Yield 0.68% Portfolio Charges AMC incl. VAT 0.24% OCF of underlying funds 0.69% Total above 1.23% AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 Performance Year Annual Return *Annual Volatility 2012** 0.71% 2.78% % 6.56% % 2.94% % 3.47% % 1.54% % 0.66% % 0.40% * Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time and can be used to gauge the risk of an investment. **Performance is from portfolio launch on 1 st Sept 2012 Platform Availability - Ascentric - James Hay - Marketstar - Novia - Aegon Where can I get further information? - Nucleus - Std. Life - Transact - Zurich For further information, please get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

6 Positive Return Portfolio Defaqto 2 February 2018 Asset Allocation Regional Allocation 8% 3% Alternative Strategies - Lower Risk 11% 25% UK 23% Fixed Income - Global Bonds 16% 66% Cash Multi Asset - Flexible Investment 48% North America Europe Market Commentary Global economic data coming out of the US, Europe and UK continued to remain robust through January, with rising government bond yields globally being symptomatic of this state of affairs; reflecting strong global economic growth and the prospect of tightening monetary policy. Equities rose in spectacular fashion for the first half of the month, registering new all-time price highs and in doing so becoming one of the most technically overbought markets in the last 120 years. These gains were pared through to the end of the month as fear increased around the chances for upside inflation and wage growth data surprises, and the secondary impact on interest rates and bond yields, particularly in the US. Cross-asset volatility finally began to rise at the end of the month moving into February, bringing with it the potential upset the goldilocks trading environment seen for much of the last 18 months and a well-timed reminder to remain vigilant. Top 10 Holdings Vanguard Gbl ST Bond Index 12% Cash 8% Old Mutual GEAR* 6% Jupiter Absolute Return 6% Insight Absolute Insight* 6% Aberdeen Target Return Bond 6% LM Wstn Asset Macro Ops. Bd. 6% Kames Absolute Return Bond 6% CH Tenax Abs. Return Strategies 6% Premier Defensive Growth 6% All above 68% * Performance fees apply Oliver Stone Portfolio Manager Important Notices & Risk Warnings This Marketstar Positive Return Portfolio factsheet is for illustrative purposes only. Investments linked to this model portfolio may not exactly replicate the model portfolio described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate as a result of currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No

7 Defensive Growth Portfolio Defaqto 3 February 2018 Overview The Marketstar Defensive Growth Portfolio invests in multiple diversified asset classes and takes a multi-strategy approach investing in active and passive investment instruments. The portfolio is weighted very much towards lower risk assets, but with some equity exposure aimed at enhancing returns over the long term. The strategic and tactical asset allocation delivers top down risk control whilst quantitative and qualitative screening facilitates deployment of client money into underlying investment instruments that will deliver the attributes required to meet the performance objectives of the portfolio. Investment Objective The Defensive Growth Portfolio aims to grow wealth by delivering returns in excess of inflation over every rolling 5-year period while a balanced approach maintains risk to capital at levels significantly lower than that of global stock markets and commodities. The portfolio is managed to remain within Defaqto risk rating 3 (low risk) at all times. For a full explanation of the DF risk rating system please consult your financial adviser. Net Performance Data Name 3m 6m 1 year 3 years 5 years Defensive Growth Portfolio DF % 1.13% 3.82% 7.87% 18.12% Benchmark CPI Index + 1% 0.84% 2.07% 4.40% 8.75% 13.45% Inflation CPI Index* 0.67% 1.65% 3.45% 5.64% 8.03% * Contains public sector information licensed under the Open Government Licence v2.0. All performance figures shown on this factsheet are net of underlying fund charges (including fund performance fees where applicable) and net of Marketstar investment management fees. Net Performance Defensive Growth Portfolio Structure Segregated Portfolio Launched 7 Oct 2008 Target Return CPI + 1% No. of Holdings 24 Equity Min/Max 0-40% NISA-compliant Yes Recommended investment period 5 years + Estimated Yield 0.64% Portfolio Charges AMC incl. VAT 0.48% OCF of underlying funds 0.71% Total above 1.19% AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 Performance Year Annual Return *Annual Volatility 2008** 0.81% 3.09% % 4.23% % 3.34% % 5.10% % 1.41% % 4.46% % 1.37% % 2.50% % 2.92% % 2.42% % 1.62% * Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time, and can be used to gauge the risk of an investment. **2008 performance is from portfolio launch in October 2008 Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

8 Defensive Growth Portfolio Defaqto 3 February 2018 Asset Allocation Regional Allocation 6% 4% 3% 10% 7% 9% 8% 6% 47% Alternative Strategies - Higher Risk Alternative Strategies - Lower Risk Equity - UK Cash Equity - European Commodities Fixed Income - UK Corporate Bonds Fixed Income - Global Bonds Equity - North American 16% 12% 47% 25% UK North America Europe Market Commentary Global economic data coming out of the US, Europe and UK continued to remain robust through January, with rising government bond yields globally being symptomatic of this state of affairs; reflecting strong global economic growth and the prospect of tightening monetary policy. Equities rose in spectacular fashion for the first half of the month, registering new all-time price highs and in doing so becoming one of the most technically overbought markets in the last 120 years. These gains were pared through to the end of the month as fear increased around the chances for upside inflation and wage growth data surprises, and the secondary impact on interest rates and bond yields, particularly in the US. Cross-asset volatility finally began to rise at the end of the month moving into February, bringing with it the potential upset the goldilocks trading environment seen for much of the last 18 months and a well-timed reminder to remain vigilant. Top 10 Holdings Cash 10% Vanguard Global ST Bond Index 7% S&W Short Dated Corporate Bond 6% Insight Absolute Insight* 5% Kames Absolute Return Bond 5% CH Tenax Abs. Return Strategies 5% Premier Defensive Growth 5% Old Mutual GEAR* 5% Jupiter Absolute Return 5% Kames UK Equity Absolute Return 5% All above 58% * Performance fees apply Oliver Stone Portfolio Manager Important Notices & Risk Warnings This Marketstar Defensive Growth Portfolio factsheet is for illustrative purposes only. Investments linked to this model portfolio may not exactly replicate the model portfolio described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate as a result of currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No

9 Conservative Growth Portfolio Defaqto 4 February 2018 Overview The Marketstar Conservative Growth Portfolio invests in multiple diversified asset classes and takes a multi-strategy approach investing in active and passive investment instruments. The portfolio is generally weighted more towards lower risk assets, but with the ability to hold equities aimed at enhancing returns over the long term. The strategic and tactical asset allocation delivers top down risk control whilst quantitative and qualitative screening facilitates deployment of client money into underlying investment instruments that will deliver the attributes required to meet the performance objectives of the portfolio. Investment Objective The Conservative Growth Portfolio aims to grow wealth by delivering returns in excess of inflation over every rolling 5-year period while a relatively cautious approach maintains risk to capital at levels much lower than that of global stock markets and commodities. The portfolio is managed to remain within Defaqto risk rating 4 (lowest medium risk) at all times. For a full explanation of the DF risk rating system please consult your financial adviser. Net Performance Data Name 3m 6m 1 year 3 years 5 years Conservative Growth Portfolio DF % 2.09% 5.57% 11.96% 29.18% Benchmark CPI Index + 2% 1.02% 2.50% 5.35% 11.92% 19.08% Inflation CPI Index* 0.67% 1.65% 3.45% 5.64% 8.03% * Contains public sector information licensed under the Open Government Licence v2.0. All performance figures shown on this factsheet are net of underlying fund charges (including fund performance fees where applicable) and net of Marketstar investment management fees. Net Performance Conservative Growth Portfolio Structure Segregated Portfolio Launched 7 Oct 2008 Target Return CPI + 2% No. of Holdings 24 Equity Min/Max 0-60% NISA-compliant Yes Recommended investment period 5 years + Estimated Yield 0.85% Portfolio Charges AMC incl. VAT 0.48% OCF of underlying funds 0.84% Total above 1.32% AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 Performance Year Annual Return *Annual Volatility 2008** -2.78% 6.73% % 7.57% % 4.91% % 6.86% % 1.99% % 5.52% % 1.98% % 3.51% % 3.63% % 3.12% % 2.55% * Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time, and can be used to gauge the risk of an investment. **2008 performance is from portfolio launch in October 2008 Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

10 Conservative Growth Portfolio Defaqto 4 February 2018 Asset Allocation Regional Allocation 9% 5% 5% 5% Alternative Strategies - Higher Risk Alternative Strategies - Lower Risk Equity - UK 5% Cash Equity - European 13% Equity - North American 41% Fixed Income - UK Corporate Bonds Commodities 6% Fixed Income - Global Bonds 3% 8% 20% 13% 5% 21% UK Europe North America 41% International Market Commentary Global economic data coming out of the US, Europe and UK continued to remain robust through January, with rising government bond yields globally being symptomatic of this state of affairs; reflecting strong global economic growth and the prospect of tightening monetary policy. Equities rose in spectacular fashion for the first half of the month, registering new all-time price highs and in doing so becoming one of the most technically overbought markets in the last 120 years. These gains were pared through to the end of the month as fear increased around the chances for upside inflation and wage growth data surprises, and the secondary impact on interest rates and bond yields, particularly in the US. Cross-asset volatility finally began to rise at the end of the month moving into February, bringing with it the potential upset the goldilocks trading environment seen for much of the last 18 months and a well-timed reminder to remain vigilant. Oliver Stone Portfolio Manager Top 10 Holdings Natixis LS US Equity Leaders 7% JPM US Equity Income 6% Kames Absolute Return Bond 5% Old Mutual GEAR* 5% Jupiter Absolute Return 5% Aberdeen Target Return Bond 5% LM Wstn. Ast. Macro Ops. 5% CH Tenax Abs. Return Strategies 5% Premier Defensive Growth 5% Vanguard Global ST Bond Index 5% All above 53% * Performance fees apply Important Notices & Risk Warnings This Marketstar Conservative Growth Portfolio factsheet is for illustrative purposes only. Investments linked to this model portfolio may not exactly replicate the model portfolio described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate as a result of currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No

11 Conservative Income Portfolio Defaqto 4 February 2018 Overview The Marketstar Conservative Income Portfolio invests in multiple diversified asset classes and takes a multi-strategy approach investing in active and passive investment instruments. The portfolio is generally weighted more towards lower risk and income generating assets with some exposure to equities. The strategic and tactical asset allocation delivers top down risk control whilst quantitative and qualitative screening facilitates deployment of client money into underlying investment instruments that will deliver the attributes required to meet the performance objectives of the portfolio. Investment Objective The Conservative Income Portfolio aims to deliver a reasonable income relative to cash together with capital growth over the longer term and total returns in excess of inflation over every rolling 5 year period while a relatively cautious approach maintains risk to capital at levels much lower than that of global stock markets and commodities. The portfolio is managed to remain within Defaqto risk rating 4 (lowest medium risk) at all times. For a full explanation of the DF risk rating system please consult your financial adviser. Net Performance Data Name 3m 6m 1 year 3 years 5 years Conservative Income Portfolio DF % 1.85% 5.14% 12.04% 29.56% Benchmark CPI Index + 2% 1.02% 2.50% 5.35% 11.92% 19.08% Inflation CPI Index* 0.67% 1.65% 3.45% 5.64% 8.03% * Contains public sector information licensed under the Open Government Licence v2.0. All performance figures shown on this factsheet are net of underlying fund charges (including fund performance fees where applicable) and net of Marketstar investment management fees. Net Performance Conservative Income Portfolio Structure Segregated Portfolio Launched 14 Oct 2008 Target Return CPI + 2% No. of Holdings 21 Equity Min/Max 0-60% NISA-compliant Yes Recommended investment period 5 years + Estimated Yield 2.59% Portfolio Charges AMC incl. VAT 0.48% OCF of underlying funds 0.82% Total above 1.30% AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 Performance Year Annual Return *Annual Volatility 2008** 1.99% 6.61% % 8.38% % 4.33% % 6.98% % 1.76% % 5.52% % 1.93% % 3.47% % 3.61% % 3.21% % 2.45% * Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time, and can be used to gauge the risk of an investment. **2008 performance is from portfolio launch in October 2008 Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

12 Conservative Income Portfolio Defaqto 4 February 2018 Asset Allocation Regional Allocation 9% 6% 7% Alternative Strategies - Higher Risk Alternative Strategies - Lower Risk Equity - UK 23% Equity - Global 22% Equity - European Fixed Income - UK Corporate Bonds Commodities 5% 8% Fixed Income - Global Bonds Equity - North American 7% 6% 7% 21% 13% 13% UK Europe North America 36% International 17% Market Commentary Global economic data coming out of the US, Europe and UK continued to remain robust through January, with rising government bond yields globally being symptomatic of this state of affairs; reflecting strong global economic growth and the prospect of tightening monetary policy. Equities rose in spectacular fashion for the first half of the month, registering new all-time price highs and in doing so becoming one of the most technically overbought markets in the last 120 years. These gains were pared through to the end of the month as fear increased around the chances for upside inflation and wage growth data surprises, and the secondary impact on interest rates and bond yields, particularly in the US. Cross-asset volatility finally began to rise at the end of the month moving into February, bringing with it the potential upset the goldilocks trading environment seen for much of the last 18 months and a well-timed reminder to remain vigilant. Oliver Stone Portfolio Manager Top 10 Holdings Aviva Multi Strategy Target Income 8% Muzinich Global Tactical Credit 8% LM Brandywine Gbl. Inc. Optimiser 8% Jupiter Strategic Bond 8% Architas Diversified Real Assets 7% S&W Short Dated Corporate Bond 7% Artemis Global Income 7% JPM US Equity Income 6% Vanguard Global ST Bond Index 6% Old Mutual Gold & Silver 5% All above 70% * Performance fees apply Important Notices & Risk Warnings This Marketstar Conservative Income Portfolio factsheet is for illustrative purposes only. Investments linked to this model portfolio may not exactly replicate the model portfolio described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate as a result of currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No

13 Diversified Growth Portfolio Defaqto 5 February 2018 Overview The Marketstar Diversified Growth Portfolio invests in multiple diversified asset classes and takes a multi-strategy approach investing in active and passive investment instruments. The portfolio is generally weighted equally between lower risk and higher risk assets, but managers have the ability to go overweight or underweight equities and commodities to control risk and deliver the desired returns. The strategic and tactical asset allocation delivers top down risk control whilst quantitative and qualitative screening facilitates deployment of client money into underlying investment instruments that will deliver the attributes required to meet the performance objectives of the portfolio. Investment Objective The Diversified Growth Portfolio aims to grow wealth by delivering returns well in excess of inflation over every rolling 5 year period while a relatively balanced approach maintains risk to capital at levels considerably lower than that of global stock markets and commodities. The portfolio is managed to remain within Defaqto risk rating 5 (medium risk) at all times. For a full explanation of the DF risk rating system please consult your financial adviser. Net Performance Data Name 3m 6m 1 year 3 years 5 years Diversified Growth Portfolio DF % 2.81% 7.56% 15.10% 35.09% Benchmark CPI Index + 3% 1.19% 2.92% 6.31% 15.15% 24.93% Inflation CPI Index* 0.67% 1.65% 3.45% 5.64% 8.03% * Contains public sector information licensed under the Open Government Licence v2.0. All performance figures shown on this factsheet are net of underlying fund charges (including fund performance fees where applicable) and net of Marketstar investment management fees. Net Performance Diversified Growth Portfolio Structure Segregated Portfolio Launched 7 Oct 2008 Target Return CPI + 3% No. of Holdings 25 Equity Min/Max 10-80% NISA-compliant Yes Recommended investment period 5 years + Estimated Yield 0.92% Portfolio Charges AMC incl. VAT 0.48% OCF of underlying funds 0.90% Total above 1.38% AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 Performance Year Annual Return *Annual Volatility 2008** -2.05% 16.38% % 10.90% % 6.59% % 7.26% % 2.78% % 6.56% % 2.94% % 3.47% % 4.67% % 4.00% % 3.25% * Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time, and can be used to gauge the risk of an investment. **2008 performance is from portfolio launch in October 2008 Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

14 Diversified Growth Portfolio Defaqto 5 February 2018 Asset Allocation Regional Allocation 15% 4% 6% 9% 10% 2% 10% 11% 33% Alternative Strategies - Higher Risk Alternative Strategies - Lower Risk Equity - UK Cash Equity - European Equity - Asia Pacific Equity - North American Commodities 20% 16% 4% 3% 3% 21% 33% UK Europe North America Japan Asia Pacific International Market Commentary Global economic data coming out of the US, Europe and UK continued to remain robust through January, with rising government bond yields globally being symptomatic of this state of affairs; reflecting strong global economic growth and the prospect of tightening monetary policy. Equities rose in spectacular fashion for the first half of the month, registering new all-time price highs and in doing so becoming one of the most technically overbought markets in the last 120 years. These gains were pared through to the end of the month as fear increased around the chances for upside inflation and wage growth data surprises, and the secondary impact on interest rates and bond yields, particularly in the US. Cross-asset volatility finally began to rise at the end of the month moving into February, bringing with it the potential upset the goldilocks trading environment seen for much of the last 18 months and a well-timed reminder to remain vigilant. Top 10 Holdings Natixis LS US Equity Leaders 8% JPM US Equity Income 7% Old Mutual Gold & Silver 5% Jupiter European 5% Schroder European Alpha Income 5% Old Mutual GEAR 4% Jupiter Absolute Return 4% Polar Capital UK Absolute Equity* 4% Insight Absolute Insight 4% LM Wstn. Ast. Macro Ops. Bond 4% All above 50% * Performance fees apply Oliver Stone Portfolio Manager Important Notices & Risk Warnings This Marketstar Diversified Growth Portfolio factsheet is for illustrative purposes only. Investments linked to this model portfolio may not exactly replicate the model portfolio described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate due to currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No

15 Diversified Income Portfolio Defaqto 5 February 2018 Overview The Marketstar Diversified Income Portfolio invests in multiple diversified asset classes and takes a multi-strategy approach investing in active and passive investment instruments. The portfolio is generally weighted equally between lower and higher risk assets and income generating instruments with a healthy exposure to equities. The strategic and tactical asset allocation delivers top down risk control whilst quantitative and qualitative screening facilitates deployment of client money into underlying investment instruments that will deliver the attributes required to meet the performance objectives of the portfolio. Investment Objective The Diversified Income Portfolio aims to deliver a reasonable income relative to cash together with capital growth over the longer term and total returns in excess of inflation over every rolling 5-year period while a relatively balanced approach maintains risk to capital at levels considerably lower than that of global stock markets and commodities. The portfolio is managed to remain within Defaqto risk rating 5 (medium risk) at all times. For a full explanation of the DF risk rating system please consult your financial adviser. Net Performance Data Name 3m 6m 1 year 3 years 5 years Diversified Income Portfolio DF % 2.42% 6.85% 15.02% 35.60% Benchmark CPI Index + 3% 1.19% 2.92% 6.31% 15.15% 24.93% Inflation CPI Index* 0.67% 1.65% 3.45% 5.64% 8.03% * Contains public sector information licensed under the Open Government Licence v2.0. All performance figures shown on this factsheet are net of underlying fund charges (including fund performance fees where applicable) and net of Marketstar investment management fees. Net Performance Diversified Income Portfolio Structure Segregated Portfolio Launched 14 Oct 2008 Target Return CPI + 3% No. of Holdings 20 Equity Min/Max 10-80% NISA-compliant Yes Recommended investment 5 years + period Estimated Yield 2.60% Portfolio Charges AMC incl. VAT 0.48% OCF of underlying funds 0.88% Total above 1.36% AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 Performance Year Annual Return *Annual Volatility 2008** 0.60% 9.57% % 10.69% % 6.70% % 8.67% % 2.81% % 6.58% % 2.80% % 4.91% % 4.66% % 4.05% % 3.22% * Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time, and can be used to gauge the risk of an investment. **2008 performance is from portfolio launch in October 2008 Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

16 Diversified Income Portfolio Defaqto 5 February 2018 Asset Allocation Regional Allocation 9% 11% 14% 6% 7% 8% 10% 5% 10% 20% Alternative Strategies - Higher Risk Alternative Strategies - Lower Risk Equity - UK Fixed Income - UK Corporate Bonds Equity - European Equity - Global Equity - North American Commodities Fixed Income - Global Bonds 19% 19% 11% 14% 37% UK Europe North America International Market Commentary Global economic data coming out of the US, Europe and UK continued to remain robust through January, with rising government bond yields globally being symptomatic of this state of affairs; reflecting strong global economic growth and the prospect of tightening monetary policy. Equities rose in spectacular fashion for the first half of the month, registering new all-time price highs and in doing so becoming one of the most technically overbought markets in the last 120 years. These gains were pared through to the end of the month as fear increased around the chances for upside inflation and wage growth data surprises, and the secondary impact on interest rates and bond yields, particularly in the US. Cross-asset volatility finally began to rise at the end of the month moving into February, bringing with it the potential upset the goldilocks trading environment seen for much of the last 18 months and a well-timed reminder to remain vigilant. Top 10 Holdings Artemis Global Income 8% JPM US Equity Income 7% Architas Diversified Real Assets 7% Muzinich Global Tactical Credit 7% LM Brandywine Gbl. Inc. Optimiser 7% Jupiter Strategic Bond 7% Aviva Multi Strategy Target Income 6% Old Mutual Gold & Silver 6% S&W Short Dated Corporate Bond 5% Schroder European Alpha Income 5% All above 65% * Performance fees apply Oliver Stone Portfolio Manager Important Notices & Risk Warnings This Marketstar Diversified Income Portfolio factsheet is for illustrative purposes only. Investments linked to this model portfolio may not exactly replicate the model portfolio described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate as a result of currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No

17 Dynamic Growth Portfolio Defaqto 6 February 2018 Overview The Marketstar Dynamic Growth Portfolio invests in multiple diversified asset classes and takes a multi-strategy approach investing in active and passive investment instruments. The portfolio is generally weighted more towards higher risk assets, but managers have the ability to move significantly underweight equities and commodities to control risk and deliver the desired returns. The strategic and tactical asset allocation delivers top down risk control whilst quantitative and qualitative screening facilitates deployment of client money into underlying investment instruments that will deliver the attributes required to meet the performance objectives of the portfolio. Investment Objective The Dynamic Growth Portfolio aims to grow wealth by delivering returns considerably in excess of inflation over every rolling 5 year period whilst maintaining risk to capital at levels significantly lower than that of global stock markets and commodities. The portfolio is managed to remain within Defaqto risk rating 6 (medium high risk) at all times. For a full explanation of the DF risk rating system please consult your financial adviser. Net Performance Data Name 3m 6m 1 year 3 years 5 years Dynamic Growth Portfolio DF % 3.96% 9.74% 20.94% 42.46% Inflation CPI Index + 4% 1.36% 3.34% 7.25% 18.43% 31.00% Inflation CPI Index* 0.67% 1.65% 3.45% 5.64% 8.03% * Contains public sector information licensed under the Open Government Licence v2.0. All performance figures shown on this factsheet are net of underlying fund charges (including fund performance fees where applicable) and net of Marketstar investment management fees. Net Performance Dynamic Growth Portfolio Structure Segregated Portfolio Launched 7 Oct 2008 Target Return CPI + 4% No. of Holdings 26 Equity Min/Max % NISA-compliant Yes Recommended investment period 5 years + Estimated Yield 0.89% Portfolio Charges AMC incl. VAT 0.48% OCF of underlying funds 0.94% Total above 1.42% AMC includes VAT where applicable Minimum Investment Initial 1,000 Additional 500 Performance Year Annual Return *Annual Volatility 2008** -1.19% 16.03% % 12.01% % 8.99% % 9.67% % 6.01% % 8.24% % 3.91% % 6.21% % 5.88% % 4.92% % 3.90% * Volatility is a statistical measure of the deviance of an investment s price from its average over a period of time, and can be used to gauge the risk of an investment. **2008 performance is from portfolio launch in October 2008 Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) or by on mps@marketstar.co.uk

18 Dynamic Growth Portfolio Defaqto 6 February 2018 Asset Allocation 4% 6% Alternative Strategies - Higher Risk 13% Alternative Strategies - Lower Risk 7% Equity - UK 20% 22% Cash Equity - European Equity - Asia Pacific Equity - North American Commodities 5% Equity - Japanese 9% 12% 2% Regional Allocation 5% 4% 16% UK 22% Europe North America 33% Japan 20% Pacific Basin Market Commentary Top 10 Holdings Global economic data coming out of the US, Europe and UK continued to remain robust through January, with rising government bond yields globally being symptomatic of this state of affairs; reflecting strong global economic growth and the prospect of tightening monetary policy. Equities rose in spectacular fashion for the first half of the month, registering new all-time price highs and in doing so becoming one of the most technically overbought markets in the last 120 years. These gains were pared through to the end of the month as fear increased around the chances for upside inflation and wage growth data surprises, and the secondary impact on interest rates and bond yields, particularly in the US. Cross-asset volatility finally began to rise at the end of the month moving into February, bringing with it the potential upset the goldilocks trading environment seen for much of the last 18 months and a well-timed reminder to remain vigilant. Natixis LS US Equity Leaders 10% JPM US Equity Income 10% Old Mutual Gold & Silver 6% Jupiter European 6% Schroder European Alpha Income 6% Polar Capital UK Absolute Equity* 5% Argonaut Absolute Return* 4% Neptune Japan Opportunities 4% Liontrust GF Eurpn. Strategic Eq.* 4% Stewart Investors Asia Pacific Ldrs. 3% All above 58% * Performance fees apply Oliver Stone Portfolio Manager Important Notices & Risk Warnings This Marketstar Dynamic Growth Portfolio factsheet is for illustrative purposes only. Investments linked to this model portfolio may not exactly replicate the model portfolio described due to the difference in timing of initial investment or rebalancing differences resulting from minimum transaction size limits or fund availability on the platform or provider. Please note that platform and financial advice fees are not included. Nothing in this document should be deemed to constitute the provision of financial, investment or other profession advice in any way. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The information in this document was prepared on 31 st January 2018 and is believed to be correct but cannot be guaranteed. The value of investments and the income from them can go down as well as up and investors may not recover the amount of their original investment. The sterling value of overseas investments, and the income from them, will fluctuate as a result of currency movements. Past performance is not a guide to future performance. Marketstar does not offer tax advice; the tax treatment of investments depends on each investor s individual circumstances and is subject to changes in tax legislation. Marketstar is a trading name of Fairstone Private Wealth Ltd which is authorised and regulated by the Financial Conduct Authority under FRN Head Office: 1 The Bulrushes, Boldon Business Park, Tyne & Wear. NE35 9PF. Registered in England and Wales No