KB Elite Multi Asset Balanced Fund. Quarterly update, Q1 2014

Transcription

1 KB Elite Multi Asset Balanced Fund Quarterly update, Q1 2014

2 Key events in Q January China releases economic data for 2013 showing slowest rate of growth since 1999 Russia hosts 2014 Winter Olympics in Sochi February President Putin orders Russian troops into Crimea Facebook announces purchase of instant messaging platform, WhatsApp, for $19 billion March Russia annexes Crimea US and Europe announce sanctions against Russia 2

3 Key asset allocation changes in Q January Reduced fund s Hedge Funds exposure; increased equities and fixed income allocations March Reduced fund s Asia Pacific ex Japan equity exposure; increased USD cash Asset Group Dec-13 Mar-14 Change Cash & FX Fixed Income Hedge Funds Real Estate Commodities Total Source: Kleinwort Benson 3

4 Asset allocation Asset class mix as at 31-Mar-2014 Fixed Income 23.8% Real Estate 7.3% Hedge Funds 0.2% Commodities 0.0% Cash & FX 6.7% 62.1% Asset Weight (%) Cash GBP Cash 0.8 USD Cash 5.9 EUR Cash 0.0 UK 36.3 US 9.4 Europe Ex UK 6.4 Japan 3.1 Asia Pacific Ex Japan 0.0 Emerging Markets 6.5 Private Equity 0.4 Fixed Income GBP Government Bonds (Conventional) 5.1 GBP Government Bonds (Index-Linked) 4.9 USD Government Bonds (Conventional) 0.0 GBP Corporate Bonds 7.4 US High Yield Bonds 2.0 Emerging Markets Bonds 4.5 Alternatives Hedge Funds 0.2 Real Estate 7.3 Commodities 0.0 Gold 0.0 Source: Kleinwort Benson 4

5 Currency exposure and top holdings Currency exposure as at 31-Mar-2014 Top 10 Holdings Weight (%) Asia Pacific ex Japan 0.0% Japanese Yen 3.1% Emerging Markets & Commodity 11.0% VANGUARD UK EQUITY FUND 17.1 ISHARES S&P ISHARES FTSE HSBC FTSE 100 ETF 6.8 ISHARES MSCI EUROPE EX.UK 6.4 US Dollar 17.5% UK Sterling 62.1% HENDERSON PROPERTY INC 5.9 USD Cash 5.9 Euro 6.4% ISHARES FTSE UK GILT ALL STOCK 5.0 ISHARES MSCI EMERGING MKTS 4.3 ISHARES BC GBP IND-LNK GILTS 3.9 Source: Kleinwort Benson 5

6 Performance and contribution in Q Cumulative Performance KB Elite Multi Asset Balanced Fund Morningstar GBP Moderate Allocation Category ( Peer Group ) 1 Month 3 Months YTD 1 Year 3 Year 5 Year Source: Kleinwort Benson; Bloomberg 1. KB Elite Multi Asset Balanced fund launched 3-Aug Asset Risk Consultants Private Client Indices 3. March and quarterly performance is indicative Since Launch 1-0.5% -0.0% -0.0% -0.2% 4.7% 49.3% 46.9% -0.2% 0.8% 0.8% 3.8% 16.2% 57.8% 51.5% UK CPI 0.6% 0.3% 0.3% 1.8% 8.1% 16.2% 27.4% ARC Sterling Balanced Asset -0.6% 0.7% 0.7% 3.2% 14.6% 47.1% 52.7% PCI 2,3 Equity markets contributed -57 bps to fund s performance in Q1 Japanese equities lagged those in Europe ex UK and the US Bonds Falling yields resulted in a +20 bps contribution to fund performance from UK government bonds and +18bps contribution from GBP Investment Grade corporate bonds Real estate Real estate added +23 bps to the fund with strong performance in UK commercial property KB Elite Multi Asset Balanced Q Benchmark Index Performance (%) Q Performance Contribution (bps) Cash & FRNs NA -2 Currency Futures NA 1 UK US Europe ex UK Japan Asia Pacific ex Japan Emerging Global Private Equity GBP Gov Bonds conventional GBP Gov Bonds - index-linked USD Gov Bonds conventional EUR Gov Bonds conventional GBP Corporate Bonds USD Corporate Bonds EUR Corporate Bonds US High Yield Bonds Emerging Markets Bonds Commodities Gold Real Estate Hedge Funds Total -4 6

7 Source: Kleinwort Benson; Morningstar; data from Aug-2005 to Mar-2014 Long-term performance and risk Performance since inception 1 (%) KB Elite Multi Asset Balanced Fund Morningstar GBP Moderate Allocation Category ("Peer Group") UK CPI KB Elite Multi Asset Balanced Fund 2 Morningstar GBP Moderate Allocation "Peer Group" 3 4 UK CPI Performance since launch Performance (since launch, annualised) Volatility (since launch, annualised) N/A Return/Risk (since launch) N/A Maximum drawdown N/A Volatility as % of equity volatility N/A Monthly Hit Rate (%) N/A Aug-05 Aug-07 Aug-09 Aug-11 Aug KB Elite Multi Asset Balanced fund launched 3-Aug Performance is net of costs and fees 3. Performance relates to the A share class as this fund has a long term performance record. Customers of Financial Advisers are invested in the B share class which pays trail commission. 4. MSCI AC World Net TR (GBP) KB Elite Multi Asset Balanced Fund has produced performance in-line with its peers since launch. The fund has delivered a positive real return. The fund has produced lower returns than equities but has done so with lower volatility and drawdown. The performance data for KB Elite Multi Asset Balanced Fund is net of fees whereas data for equities is gross and does not reflect implementation costs to an investor. 7

8 Fund information Investment objective To achieve long term equity returns with a moderate level of risk through a well diversified portfolio across asset classes. The fund seeks to achieve its objective by investing directly in a range of equities, bonds, money market instruments, derivative instruments, forward transactions, collective investment schemes and other instruments as the Investment Manager may consider appropriate. Fund facts Benchmark: Domicile: Administrator: Custodian: Auditors: Structure: Morningstar GBP Moderate Allocation Category ( Peer Group ) Guernsey Kleinwort Benson (Channel Islands) Fund Services Limited BNP Paribas Trust Company (Guernsey) Limited Deloitte LLP Guernsey Class B Collective Investment Scheme Structured as a Private Cell Company Share Classes Sedol Last Price A GBP Income Reporting Shares B0FPSD A GBP Reinvest Reporting Shares B0FQ2M B GBP Income Reporting Shares B0FQ3N B GBP Accumulating Non-Reporting Shares B84RG C GBP Income Reporting Shares B3TXYQ A EUR Accumulating Reporting Shares B8JYT B EUR Accumulating Non-Reporting Shares B8NY2P A USD Accumulating Reporting Shares B7T4FM A USD Accumulating Non-Reporting Shares B89HR B USD Accumulating Non-Reporting Shares B8N7H C USD Accumulating Non-Reporting Shares B8N3CB Dealing: Weekly Yield: Nil Fund size: GBP 116.8m Fees Share class Annual Management Charge B 1.50% Source: Kleinwort Benson, data as at 31-Mar Performance net of fees, total return, A share class in GBP 8

9 General risk information The information in this publication is provided for information purposes only and does not take into account the investment objective, the financial situation or the individual needs of any particular person. It is not an offer to buy or sell any particular security or investment. This publication does not constitute advice. All potential investors should seek and obtain advice specific to their circumstances from a qualified financial adviser before making investment decisions. The value of investments, and the income from them, may fall as well as rise and the investor may not get back the amount initially invested. Past performance does not guarantee future performance. Fluctuations in exchange rates may cause the value of investments denominated in currencies other than sterling to fall or rise. The effects of charges and an investor s personal tax circumstances may reduce any returns. Tax treatment depends on an investor s individual circumstances and may be subject to change. Regulatory information This publication is not available for general distribution in, from or into the United Kingdom because this fund is an unregulated Collective Investment Scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act This publication is intended for distribution only to clients of Kleinwort Benson Bank Limited with existing holdings in the KB Elite Multi Asset Balanced Fund. It must not be distributed to or relied on by any other person. This publication is not intended for distribution into the USA or any other jurisdiction in which its distribution would be against a relevant law or regulation. This publication is a financial promotion. It has been approved and issued in the United Kingdom by Kleinwort Benson Bank Limited. Kleinwort Benson is the brand name of Kleinwort Benson Bank Limited. Kleinwort Benson is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, reference number and is a member of the London Stock Exchange. Kleinwort Benson is a company incorporated in England and Wales with company number