FWD - 06 (Direct) Research and Analysis

Transcription

1 FWD - 06 (Direct) Research and Analysis 22-Nov-2017 Summary Asset Allocation The funds used in the Fusion Wealth risk rated portfolios are screened by Fusion, Rayner Spencer Mills and Financial Express. Each portfolio's objective is to blend the complimentary skills of some the world's best managers to deliver the greatest return for the investor within a certain volatility band. Fusion uses real time data from Financial Express to constantly measure risk and return characteristics and will rebalance the portfolios between two and four times a year under a discretionary mandate. Fusion may also carry out ad hoc reviews due to an unexpected event such as a fund manager leaving or consistent under performance. Currently, Thesis Asset Management manage the UK portion of the portfolio using a selection of FTSE 350 stocks. Risk Range Information On a scale of 1-10, with 1 being low risk and 10 being high risk, the DFM would anticipate the collection of holdings within the portfolio to expose an investor to a level of risk in the range of 5-7. This portfolio is reviewed in real time by Creative Technologies and it currently has a risk score of Research Partner (6.04 as at 22-Nov-2017) Fusion Wealth powers bespoke wealth management and technology solutions for discretionary fund managers, national financial advisers and networks. Fusion Wealth draws on some 20 years of UK market experience and in 2011 partnered with SEI as the custodian of client assets. The sheer volume of global asset classes and instruments at their disposal means that clients and their wealth managers can choose to run a much wider universe and employ the use of innovative and risk weighted portfolios which map to the clients own investment goals and tolerance for downside risk. This approach allows the freedom to deliver institutional grade investment solutions that would not normally be possible through a standard retail wrap or investment platform. Date of Inception 08-Jan-2016 Est. 3 Yr. Annualised Volatility 9.02% Sector Average Volatility 9.13% Current Yield 2.45% Estimated Annual Expenses (OCF) 0.56% Performance 1 Month (October 17) 2.61% 3 Months 2.65% 6 Months 5.50% 1 Year 12.25% 3 Years N/A 5 Years N/A Since Inception 23.88% Annualised Since Inception 12.39% Q Update (01-Oct-2017) Following a quarterly review of the expected returns and volatility for each asset class, there have been no asset allocations changes this quarter. With respect to the UK equity exposure delivered by thethesis UK Equity Model, more information on any Page 1 of 5

2 changes applicable are available direct from Thesis. The Stewart Investors Asia Pacific Leaders fund is being removed and replaced by the First State Asia Focus fund. Whilst the Stewart Investors fund has strong defensive qualities the First State fund has an equally strict discipline of capital preservation and sustainability but with a broader mind set. The fund is run by Martin Lau, a manager with significant respect in Asian markets. Current Composition Identifier Instrument Weight None Currency 2.00% BMG5361W1047 Lancashire Holdings Ltd 0.84% GB Ashtead Group PLC 0.84% GB BHP Billiton PLC 0.84% GB Bellway PLC 0.84% GB Diageo PLC 0.84% GB Hill & Smith Holdings PLC 0.84% GB Legal & General Group PLC 1.12% GB Morgan Advanced Materials PLC 0.84% GB Baillie Gifford Overseas Growth Funds ICVC - European Fund 3.00% GB Prudential PLC 0.84% GB Lloyds Banking Group PLC 1.12% GB Smith & Nephew PLC 0.84% GB GlaxoSmithKline PLC 0.84% GB Victrex PLC 0.84% GB AstraZeneca PLC 0.84% GB Carnival PLC 0.84% GB ITV PLC 0.84% GB00B01FLG62 G4S PLC 0.84% GB00B02L3W35 Berkeley Group Holdings PLC 0.84% GB00B09LSH68 Inmarsat PLC 1.12% GB00B0N8QD54 Britvic PLC 0.84% GB00B0WMWD03 QinetiQ Group PLC 0.84% GB00B1CRLC47 Mondi PLC 0.84% GB00B1H05718 M&G Optimal Income Fund 3.00% GB00B1JQDM80 Marston's PLC 0.84% GB00B1WY2338 Smiths Group PLC 0.84% GB00B1YX4S73 JPMorgan Fund ICVC - Emerging Markets Fund 5.00% GB00B1ZBKY84 Moneysupermarket.com Group PLC 0.84% GB00B4T6SD53 Jupiter Strategic Bond 6.00% GB00B5BJ7M17 Schroder Asian Income Fund 3.00% GB00B5VRV677 MI TwentyFour Investment Funds - Dynamic Bond Fund 6.00% GB00B5ZN1N88 Segro PLC 0.84% GB00B6Y7NF43 Fidelity Investment Funds - Asia Fund 3.00% GB00B7LDLV43 Schroder US Mid Cap Fund 4.00% GB00B9SMK778 Fidelity Institutional Funds ICVC - Emerging Markets Fund 6.00% GB00BD8YWM01 Micro Focus INTL Ord GBP % GB00BJ04F760 Invesco Perpetual Corporate Bond Fund 3.00% GB00BMMV5105 Artemis US Select Fund 5.00% GB00BMP3SC51 M&G Investment Funds 7 - Global Floating Rate High Yield Fund 4.00% GB00BTLX1Q39 Aberdeen UK Property Feeder Unit Trust 5.00% GB00BVYVFW23 Auto Trader Group PLC 0.84% GB00BWNGXJ86 First State Asia Focus Fund 5.00% GB00BYZWX769 Croda International PLC 0.84% IE00B1RR8406 Smurfit Kappa Group PLC 0.84% IE00B50MZ948 Vanguard Investment Series PLC - Japan Stock Index Fund 6.00% IE00B993PD05 J O Hambro Capital Management Umbrella Fund PLC - Continental European Fund 3.00% Page 2 of 5

3 IM00B7S9G985 Playtech Plc 0.84% KYG7091M1096 Phoenix Group Holdings 1.12% Page 3 of 5

4 Performance Since Launch Page 4 of 5

5 Glossary and Methodology Asset Allocation Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame. Portfolio Performance Performance figures are collected on a daily basis from Financial Express and added to the portfolio at the end of the month. The figures include gross return with net income reinvested. The performance does not include any rebates which would increase return or trading fees or adviser fees which could decrease return. Research Partner A research partner is an investment manager or due diligence firm your adviser may approach in order to leverage external experience in order to construct a model portfolio or maintain a universe of screened instruments. This means that your adviser is able to use the Intellectual Property of other professionals in order to diversify risk and reduce the costs through volume and operational efficiency. OCF OCF (Ongoing Charge Figure) is a measure of the total costs associated with managing and operating an investment portfolio. These costs consist primarily of management fees and additional expenses of the underlying funds. The total cost of the portfolio represents a weighted average of its constituents, which represents the OCF. The size of the OCF is important to investors, as the costs come out of the portfolio fund, affecting investors' returns. Volatility The measure of volatility used in this report is simply the variation of the average annualised return. It does not necessarily represent how much a portfolio can rise or fall but presents one of the best measures for portfolio risk. As an example, a portfolio with a volatility of 10% and average return of 5% could mean that annualised returns could fluctuate between +15% per annum and -5% per annum over a three year period. You should be aware that the risk level of your chosen portfolio is intended only as a guide and that actual risk may vary and may from time to time move outside of the stated risk boundaries. Yield In the context of this report the term yield describes the percentage that returns to the portfolio holder. It does not include the price variations which can be defined as a capital return. Yields are normally subject to tax when added to income and the increase in price may be subject to capital gains tax Roles and Responsibilities Fusion Wealth provides model portfolios and does not assess individual client objectives or circumstances, nor is Fusion Wealth responsible for advising clients in terms of suitability or capacity for loss, which remains the duty of your appointed financial adviser. The level of yield actually achieved by your chosen portfolio will be dependent on the tax treatment of the product you have invested in and on your personal tax circumstances. It is the responsibility of your appointed adviser to assess the suitability of the portfolio and to ensure that appropriate measures are taken to manage your personal tax circumstances. This document does not constitute an offer or invitation to any person, nor should its content be interpreted as investment or tax advice for which you should consult your financial adviser and/or accountant. Past performance is not a guide to future performance. The value of investments can fall and you may get back less than you invested. This information is for illustrative purposes only and is not intended as investment advice. The information contained in this documentation has been taken from sources including research partners, SEI Investments and Financial Express and no warranty can be given as to its accuracy and completeness. No liability is accepted for any errors or omissions or for any action taken on the basis of this information. This document is issued by Fusion Wealth Ltd which is authorised and regulated by the Financial Conduct Authority ( Fusion Wealth's registered office is Sussex House, North Street, Horsham, West Sussex RH12 1RQ. Company Number Page 5 of 5