About Us. 14 January 2013

Transcription

1 About Us 14 January 2013 Fiducia Wealth Management Limited. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, CO7 6AD. Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Services Authority. FSA No

2 CONTENTS About Fiducia Financial Planning Our Investment Committee Client Risk Profiling Investment Process Report Process Investment Performance Summary

3 ABOUT FIDUCIA Roots began 25 years ago, Fiducia from 2005 Independence Fee-based from 2005 Investment portfolio track record over 8 years No conflicts of interest, as no in-house funds Award-winning Financial Planning and Investment Management

4 ABOUT FIDUCIA Professional Experience (client facing staff) Nov 2012 Jack Rawcliffe Dean Aitchinson Angelique DeCrem Gordon Kearney Sarah Travers Simon Bonnett Richard Pake Michael Hughes John Millican Years of relevant experience

5 FINANCIAL PLANNING Definition: Comprehensive, holistic financial planning service Establishes a long term strategy Creates the best opportunity to achieve your short and long term financial goals within your time horizons It is a cyclical process to be regularly reviewed Independent: consider a broader range of products (retail investment products); provide unbiased and unrestricted advice based on a comprehensive and fair analysis of the relevant market

6 FINANCIAL PLANNING: SIX STEPS Define the Relationship Regular annual monitoring of the strategy Understand goals, objectives, timescale, risk Implement the strategy Client Analyse client data Strategy Report

7 FINANCIAL PLANNING: CLIENT PARTNERSHIP Wealth Manager Tax Adviser Solicitor Business Coach Client Accountant Property Consultant

8 FINANCIAL PLANNING

9 OUR INVESTMENT COMMITTEE Gordon Kearney, BA, IMC, Director Dean Aitchison, BSc, IMC, Investment Manager Jack Rawcliffe, BA, IMC, Investment Analyst Michael Hughes, CBE, Consultant John Millican, Managing Director Andrew Ayers, CertPfs, IMC, Ajax Capital Management

10 MICHAEL HUGHES CBE, BA (ECON), MSC (ECON), FCSI, ASIP, FRSA Michael is our Economic adviser and a Consultant to our Investment Team bringing the benefit of his outstanding investment experience spanning more than 30 years. Michael was Chief Investment Officer and a Director of Barings Asset Management from 1998 until December Prior to that Michael was a Managing Director of Barclays Capital, Chairman of Barclays Capital Pension Fund and Executive Director of BZW Gilts Ltd. Michael has been a Council Member of the University of Essex from 1997 to 2006 and is a contributor to numerous newspapers, TV and radio programmes. He is also an investment consultant to Charities, Pension Funds and Trusts.

11 THE FIDUCIA CLIENT & INVESTMENT PROCESS Annual Review Client Meeting & Risk Profiling Investment Report & Proposals Strategic View Formulation 6 Month Review Annual Review Optimisation & Modelling Modelling Asset Allocation Report Implementation Monthly Investment Meetings Investment Report & Proposals Research & Securities Selection Research & Securities Selection

12 CLIENT RISK PROFILING Risk tolerance questionnaire Accurately assesses the degree of risk, with which each client is comfortable with. Final scores lie within one of five risk profiles. Portfolios Scores < Preferred Portfolio Cautious Prudent Balanced Growth Adventurous Return Expectations* 1-1.5x BD's 1.5-2x BD's 1.5-2x BD's 2-2.5x BD's At least 3 x BD's Sensitivity to Volatility Any fall 10% fall 20% fall 20% fall 33% fall * BD = Bank deposits

13 INVESTMENT PORTFOLIOS 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Allocation to Assets Cautious Prudent Balanced Growth Adventurous Other Overseas Equity UK Equity Absolute Return Fixed Interest Property Cash Allocation as at Oct 2012

14 INVESTMENT PROCESS We have created our investment process by integrating the most comprehensive, powerful and sophisticated systems and software, including: Financial Express Wrap Platforms independent electronic platforms which host our client accounts The leading rating agencies, such as Citywire, OBSR and S&P

15 INVESTMENT PROCESS Drivers of strategic asset allocation Asset Class Mean Reversion Impact of Chindia Productivity Trends Climate Change Demographic Trends Strategic Asset Allocation Capital Flows/ Globalisation Interest Rates Inflation Growth Inflation Trade Off

16 PORTFOLIO CONSTRUCTION Top Down Asset Allocation Strategic Allocation Strategic Allocation (medium to long term views) The overall asset allocation position based on forecasts from leading investment consultants. Controls total portfolio risk and where this risk is taken. Tactical Allocation (short to medium term Tactical Allocation views) Adjustments made to above PORTFOLIO Fund Selection Bottom Up allocation given the current market environment and evaluation of risks worth taking now. Fund Selection Decision of which specific funds should go into the portfolio. Client Requirements At any stage client preferences can be included to form a bespoke portfolio.

17 ASSET ALLOCATION DISCIPLINE All asset classes have set risk controlled weightings appropriate for each portfolio. Allocations are based on information obtained from: In house indicators and analysis. Leading sources of independent research including reports, presentations and meetings. Economic analysis and views provided by Michael Hughes. Asset allocation reviewed monthly by our Investment committee and changes made if necessary.

18 ASSET ALLOCATION Economic Data/ Forecasts & Politics Market Valuations Liquidity & Technical Analysis - GDP Growth - Inflation - Interest rates - Demographics - Productivity - Earnings Growth - Dividends - Ratios - Money Supply - Cash Flows - Charts - Momentum Client Allocation Preferences Strategic Allocation Optimisation Tactical Allocation Risk Profile Portfolio

19 FUND SELECTION Fund Universe (Over 5,500 funds) Data covering all UK registered Funds provided by Financial Express. Segmented into 30+ sectors. Top 30 performing funds are selected for further analysis. Fund Analysis (30 funds per sector) Variety of Risk Metrics analysed over different time periods. Citywire and other Ratings considered. Consultant/Manager Meetings. Funds scored and ranked. Portfolios (Avg. 3 funds ps) Appropriate sectors chosen and highest ranked funds selected.

20 EXAMPLE OF QUANTATIVE RESEARCH FOR A PARTICULAR SECTOR Here the leading funds within the UK Equity Income sector are compared. Investment growth over a number of periods are considered along with the funds standard deviation and yield.

21 EXAMPLE OF THE LEVEL OF RESEARCH AND MONITORING UNDERTAKEN ON A DAILY BASIS This is one of the research screens that the investment team use on a daily basis to monitor the portfolios and their underlying holdings.

22 CONSTANT REGIONAL MONITORING

23 CONSTANT SECTOR MONITORING Sophisticated in-house developed spreadsheets allow the investment team to monitor asset classes and geographical sectors to highlight sources of positive and negative returns.

24 CONSTANT FUND/ASSET CLASS MONITORING

25 REPORT FORMULATION AND IMPLEMENTATION An appropriate portfolio is identified based on the client s risk profile Relevant performance charts and analysis are compiled and included Total charges are calculated and identified Positions are not taken on client s behalf until we have secured their authority

26 SIX MONTH REVIEW Investment portfolios are automatically reviewed Tests are conducted to determine if the portfolios need to be rebalanced to keep within the original Asset Allocation Funds are screened to assess if gains or losses are within our pre-determined tolerance levels Valuation and Performance Pack sent to our client

27 ANNUAL REVIEW Face to face meeting Financial Strategy reviewed, personal changes noted Written report and review with observations and recommendations; discuss the conclusions and agree on any changes Comprehensive review of the investment portfolio Performance analysed in absolute and relative terms Rebalanced to reflect current market views based on appropriate risk profile Individual fund switches recommended as appropriate

28 SUMMARY A structured and disciplined financial planning and investment management process Use of the most comprehensive and sophisticated systems and software All charges are transparent and competitive Impressive performance with long track record National award winning Financial Planning and Investment Management

29 ADDITIONAL INFORMATION Source: Financial Express. Performance shown is Total Return (GBP) with income re-invested net of tax, net of annual charges and excluding initial charges. The impact of any initial charge can be material on the performance of the investments. Past performance is no guarantee of future returns, the value of the portfolios and income from them is not guaranteed and may fall as well as rise and investors may not get back the amount invested. The price of shares and units and the income therefrom can fluctuate and may be affected by exchange rate variations. The performance of the Fiducia Portfolios illustrated is based on current and back tested historical holdings. The holdings in the Fiducia portfolios will change from time to time and any changes may not be made immediately to clients portfolios. Due to the inconsistent nature of total switching costs, these are excluded from portfolio performance. In the unlikely event that historic prices cannot be obtained for closed funds the relevant IMA sector benchmark will be used as a proxy. Performance is based on holding the underlying investments direct with each investment company. Investments will, however, be held via a wrap Platform. The wrap platform negotiate discounts with each investment company but charge an annual fee for their service. Depending on the size of discounts negotiated and total amounts invested the actual performance of clients portfolios may therefore differ from that shown. While all reasonable efforts have been made to ensure that data is accurate and up to date, no representations or warranties are given as to the reliability, accuracy or completeness of data. Fiducia Wealth Management are authorised and regulated by the Financial Services Authority. Registered number