Investing within Asset Allocation Frames to enhance portfolios on a longer view

Transcription

1 DuraWealth Investing within Asset Allocation Frames to enhance portfolios on a longer view October 2017

2 Positioning of DuraWealth Innovations drive future returns Growing digitization & innovation transform our society and impacts most businesses and investments Industrial Revolution 4.0 Source (WEF, McKinsey, PwC) Investors search for yield to shift away from low-return investments DuraWealth, a licensed asset management company with Swiss roots, uses science to classify listed companies that benefits the most from this societal transformation and manages the linked global equity products with proven superior returns since 2013 provides investment products to enhance risk-return features of global portfolios DuraWealth For qualified investors only 2 of 10

3 Investing in Vision: Why, What, How Why Urbanization 1. Society is transforming Roadmap: Societal developments & drivers Rising congestion & pressure on infrastructures Vision Demography Growing population: 7.3 bn today to 8.5 bn in 2030 Society Ageing Life style Ageing population Changing living & working & mobility patterns Security & Health Increased concerns for health, safety and security. Resources Scarcity 1.3 bn people without electricity, 0.8 bn people undernourished What 2. Areas within the 4 th industrial revolution that give solutions to transforming life styles & society Time Capital deployment in listed global equities with impact products aligned with the UN SDG* in sectors with market-beating return prospects How 3. DW systematic methods: DW Global Disruptive Innovation Index DWNI Index MSCI World AC MSCI & Nasdaq Comp. Total return % 63. Sharpe ratio Ann. Return 19.6% 9.9% 12.3% Ann. Risk 12.0% 10.9% 11.3% Note: since 07/2013, daily, * MSCI AC & Nasdaq Comp. 70/30 DW Tracker: ISIN CH Source: HBR, PwC, UN, industry data, FIS, DuraWealth DuraWealth For qualified investors only 3 of 10

4 How to invest in Vision DuraWealth equity index solutions Why Key Drivers: Meeting Future Needs Growing population & demand for better life: 1.2 bn more people in 2030, ineffective drugs Resource imbalance: 1.3 bn people without electricity, 0.8 bn people undernourished Smart cities & technologies: Smart materials, buildings, grids, clean tech, big data, IoT, AI DW Systematic Screening of transformative products in related sectors to build enhanced investment portfolios Life science Targeted drug delivery Materials with smart functionalities Tools for automation, smart engineering IT & smart devices, connected world Environment & smart cities & clean tech What How Actively managed DW Global Disruptive Innovation Index DW Global Disruptive Innovation Tracker Certificate Source: UN, OECD, McKinsey, DuraWealth DuraWealth For qualified investors only 4 of 10

5 Asset Allocation within Core-Satellite Frame In Core Portfolio: 80-90% of assets are allocated into standard products with lower fees to get the market exposure to the main asset classes In Satellite Portfolio: 10-20% of assets are allocated into enhanced products to improve riskreturn metrics, aligned with SDG i.e. the UN Sustainable Development Goals Life science Climate Change Volatility Disruptive Technologies Regional & Sector Views Environment Equities Fixed Income Real Estates Money Market Currency Overlays Commodities Core Strategic AA 80-90% Private Equities Industry 4.0 Rising Interest Rates Resource Efficiency Longer View Investing 10-20% Source: KPMG, EY, McKinsey, UN SDG, DuraWealth DuraWealth For qualified investors only 5 of 10

6 01/ / / / / / / / / / / / / / / /2017 Gains in Balanced Portfolios: + 0.8% extra yield p.a. [CHF] Balanced Portfolio CHF Balanced Portfolio CHF with DWNI allocation 40% Cash SBI Index Global Equities Cash SBI Index With DWNI allocation in balanced portfolios Global Equities DWNI Index +0.8% extra yield p.a. with almost no extra risk Extra yield: +9.0% since 01/2010 Balanced Portfolio % Extra ann. Return: +0.8% Extra ann. Sharpe ratio: +12% 5.1% 4.9% 5.9% 5.1% Balanced Portfolio with DWNI allocation Extra yield: + 9.0% [CHF] 14% 12% 10% 8% 6% 4% 2% 0% Balanced Portfolio Balanced Portfolio with DWNI allocation - -2% Ann. Return (Rp) Ann. Risk (Rp) Sharpe ratio Total Return Acronym: DWNI Index = DW Global Disruptive Innovation Index Portfolio Source: S&P, FIS (as of ), DuraWealth Balanced Portfolio Balanced Portfolio with DWNI allocation Excess return [right s.] DuraWealth For qualified investors only 6 of 10

7 01/ / / / / / / / / / / / / / / /2017 Gains in Balanced Portfolios: + 0.9% extra yield p.a. [USD] Balanced Portfolio Balanced Portfolio with DWNI allocation 40% Cash Global Bonds Global Equities Cash Global Bonds With DWNI allocation in balanced portfolios Global Equities DWNI Index +0.9% extra yield p.a. with almost no extra risk Extra yield: +9.7% since 01/2010 Balanced Portfolio 0.61 Extra ann. Return: +0.9% Extra ann. Sharpe ratio: +20% 38.2% 5.0% 6.6% 5.9% 6.8% Balanced Portfolio with DWNI allocation % Extra yield: + 9.7% [USD] 14% 12% 10% 8% 6% 4% 2% 0% Balanced Portfolio Balanced Portfolio with DWNI allocation - -2% Ann. Return (Rp) Ann. Risk (Rp) Sharpe ratio Total Return Acronym: DWNI Index = DW Global Disruptive Innovation Index Portfolio Source: S&P, FIS (as of ), DuraWealth Balanced Portfolio Balanced Portfolio with DWNI allocation Excess return [right s.] DuraWealth For qualified investors only 7 of 10

8 01/ / / / / / / / / / / / / / / /2017 Gains in Pension Portfolios: + 0. extra yield p.a. [CHF] Pension & Balanced Portfolio CHF 10% Pension & Balanced Portfolio CHF with 3% DWNI allocation 10% 3% 1 3% 3% 40% 1 3% 3% 40% 24% Cash Global Equities Hedge Funds Private Equity SBI Index Commodities Real Estate 21% Cash Global Equities Hedge Funds Private Equity SBI Index Commodities Real Estate DWNI Index With 3% DWNI allocation in pension portfolios +0. extra yield p.a. with almost no extra risk Extra yield: +5.4% since 01/2010 Pension & Balanced Portfolio CHF 0.89 Extra ann. Return: +0. Extra ann. Sharpe ratio: +8% 43.8% Pension & Balanced Portfolio with 3% DWNI allocations Extra yield: + 5.4% [CHF] 10% 8% 6% 4% 1 2% 5.2% 5.8% 5.7% 5.9% 0% Pension Portfolio Pension Portfolio with 3% DWNI allocation - -2% Ann. Return (Rp) Ann. Risk (Rp) Sharpe ratio Total Return Acronym: DWNI Index = DW Global Disruptive Innovation Index Portfolio Source: S&P, FIS (as of ), DuraWealth Pension Portfolio Pension Portfolio with 3% DWNI allocation Excess return [right s.] DuraWealth For qualified investors only 8 of 10

9 Incorporation data DuraWealth Ltd. is an asset management company in Schaan (FL), supervised by the FMA Main office: Fanalwegle 1, FL-9494 Schaan; For more information contact: Website: DISCLAIMER This document was produced by DuraWealth and is dedicated for informational purposes only. It is dedicated for internal use only of the receiver and shall not be partly or fully copied, reproduced or distributed externally conform to Swiss, Liechtenstein and any applicable foreign law. The information in this document is based on sources considered to be reliable, but its accuracy and completeness is not guaranteed. The information is subject to change at any time and without obligation to notify the investors. Unless otherwise indicated, some figures are unaudited. Any action derived from this information is always at the investors own risk. This document is not an official confirmation of terms. Past performance is no indication of future performance, and some performance data do not take account of the commissions and costs incurred on the issue and redemption of shares or fund units. The information does not release the recipient from making his / her own assessment. In particular, the recipient is advised to assess the information, with the assistance of an advisor if necessary, with regard to its compatibility with his/her own circumstances in view of any legal, regulatory, tax and other implications. This document is expressly not intended for persons who, due to their nationality / place of residence or their investor s profile, are not permitted to access to such information under Swiss, Liechtenstein and any applicable foreign law.

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