GLOBAL MULTI-ASSET GROWTH & INCOME PORTFOLIOS (GIP) Portfolio Fact Sheets for Quarter 1-2018 Risk Controlled Investment Management
Key Features and Benefits Quarter 1-2018 Overview Marketstar offers a range of four risk-rated global multi-asset portfolios to suit the needs of high net worth investors from the more cautious to the more adventurous. The portfolio manager ensures the portfolios remain within these risk boundaries at all times. The portfolios are available on our in-house wealth platform in a variety of tax wrappers including General Investment Accounts, NISAs, SIPPs, SSASs, Personal Pensions, Onshore and Offshore Investment Bonds. All portfolios are managed to risk categories defined by Defaqto - your financial adviser will help you choose the portfolio which is right for you. Our Growth & Income range was launched on 1 st January 2017. Range of Portfolios Portfolio name Risk Rating Defaqto Risk Description Growth & Income Defaqto 4 Defaqto 4 Cautious Balanced Growth & Income Defaqto 5 Defaqto 5 Balanced Growth & Income Defaqto 6 Defaqto 6 Balanced Growth Growth & Income Defaqto 7 Defaqto 7 Growth What are the Growth & Income Portfolios? The Growth & Income portfolios are risk rated global multi asset portfolios providing institutional standard investment management directly to Fairstone clients. They provide a long-term home for clients savings by investing in a diversified range of high quality global assets. How are we different? Benefits of bespoke portfolios but at a lower capital threshold: We use a range of investment instruments including direct equities, ETFs, Investment Trusts as well as open ended funds to enhance diversification and maximise returns. Exclusive to Fairstone clients: Ensures that the portfolios are managed on a genuinely long-term basis to meet the specific needs of our clients, not the lowest common denominator of the mass market. Actively managed: as the portfolios are managed on a real-time basis we are nimble enough to adapt to any changes in the market environment. There is no need to rebalance portfolios on an arbitrary basis, we focus on ensuring clients are always invested in the most appropriate assets. Clear investment process: By focusing on the key elements of return clients can appreciate how their returns are being generated, ensuring they are well informed in all market environments. Meaningful benchmarks: we use benchmarks related to inflation the Consumer Price Index (CPI) - because we aim to at least grow the purchasing power of clients savings over the long term. Key Features & Benefits Focus on maximising returns Unique approach to portfolio construction and asset selection Broader diversification than traditional DFM solutions Materially lower cost than HNW DFM solutions Complete operational support for transfers Structure Segregated Portfolios Ongoing Portfolio Charges AMC incl. VAT 0.75% Typical OCF of underlying funds 0.32% Typical Transaction fees 0.05% Total above 1.12% AMC includes VAT. Additional platform charges may apply see your financial adviser for more details Minimum Investment Initial 150,000 Additional 50,000 What is Risk-Adjusted Performance? Performance measured by the investment return of a portfolio relative to the risk taken to achieve that return. For example, if two managers achieve the same return over the same period but one does so with lower volatility (risk) then that manager has delivered better risk-adjusted performance. Where can I get further information? For further information, please ask your financial adviser for more details or call our Client Support Team on 020 7665 8560 or send an email to mps@marketstar.co.uk
Key Features and Benefits Quarter 1-2018 Availability of Portfolios Fairstone Wealth Platform Transact Key Portfolio Data Growth & Income Portfolios (GIP) Risk Rating Benchmark Return per annum* Max. Expected Drawdown in a Crisis Expected Average Annual Volatility Growth & Income Defaqto 4 Defaqto 4 CPI + 2% <15% 7% Growth & Income Defaqto 5 Defaqto 5 CPI + 3% < 20% 8% Growth & Income Defaqto 6 Defaqto 6 CPI + 4% <27% 10% Growth & Income Defaqto 7 Defaqto 7 CPI + 5% <35% 12% MSCI World Index (MSCI WI) - - 50% - 60% 15% Consumer Price Index (CPI) - - - 1.2% * Contains public sector information licensed under the Open Government Licence v2.0. Cost of ownership Keeping costs under control can contribute greatly to overall performance. The portfolio manager maintains a core holding of UK & US equities which have no ongoing charges to minimise portfolio holding costs; tracker funds and ETFs are used for the same reason. The result is that total portfolio holding costs (including annual management charges) do not exceed 1.17% at this time. Please note this cost excludes ongoing platform and financial advice fees. Initial charges and switching fees Like most portfolios constructed for HNW clients, this range contains a proportion of direct equities up to 40% by value. Together with investment trusts and ETFs, these exchange-traded instruments incur initial transaction fees upon purchase, including Government stamp duty amounting to between 0.22% - 0.25% of the initial capital. Please consult your financial adviser for more detail on these initial charges. Alex Odd Important Notices & Risk Warnings This Marketstar Growth & Income Portfolio Key Features & Benefits 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 professional 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 30 th September 2017 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 457558. Address: 25 Copthall Avenue, London, EC2R 7BP. Registered in England and Wales No. 5869447.
Growth & Income Portfolio Defaqto 4 Quarter 1-2018 Overview The Growth & Income Portfolio Defaqto 4 is a diversified multi asset portfolio, investing in a broad range of direct equities, ETFs, investment trusts and open-ended funds. By blending our direct investment capabilities and asset allocation skills we look to optimise returns within a predetermined risk management range. Investment Objective The Growth & Income Portfolio Defaqto 4 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 4 (Cautious Balanced) at all times. For a full explanation of the Defaqto risk rating system please consult your financial adviser. Asset Allocation Growth & Income Defaqto 4 Structure Segregated Portfolio Launched 1 Jan 2017 Target Return CPI + 2% No. of Holdings 43 Equity Min/Max 0-60% NISA-compliant Yes Recommended investment period 5 years + Estimated Yield 2.78% Portfolio Charges Annual Ongoing Fees: AMC incl. VAT 0.75% Portfolio costs 0.38% Transaction fees 0.05% Total above 1.17% Initial charge * 564 * based on 250,000 investment on Fairstone Wealth platform (incl. Stamp Duty Land Tax (SDLT) & all transaction fees) based on 20% portfolio turnover p.a. Minimum Investment Sector weights relative to benchmark Initial 150,000 Additional 50,000 Availability - Fairstone Wealth Platform - Transact - Alex Odd Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) 1278 773 552 or by email on mps@marketstar.co.uk
Growth & Income Portfolio Defaqto 4 Quarter 1-2018 Top 15 Holdings Breakdown by Instrument Holding Type Weight Cash Cash 10% Vanguard UK Inv. Grade Bonds Tracker 9% Jupiter Strategic Bond OEIC 5% Artemis Strategic Bond OEIC 5% Sequoia Economic Infrastructure Inv. Trust 4% GCP Inv. Trust 4% M&G Global Macro Bond OEIC 4% HICL Inv. Trust 4% International Public Partnerships Inv. Trust 4% Blackrock N. American Equity Tracker 4% Vanguard US Equity Tracker 4% Artemis Strategic Assets OEIC 3% ishares DJIA UCITS ETF ETF 3% Tritax REIT REIT 2% Hansteen REIT 2% All above All 67% Market Commentary Capital markets have seen a reasonable start to the year as investor confidence in a coordinated upturn in global growth has gained credence. From here there are three key elements to consider. Firstly, as interest rates rise will bond yields also increase, reflecting a more inflationary environment, or will the yield curve flatten further suggesting the current cycle is coming to an end. If bond yields do rise, perhaps ending the generational bond bull market, it is important to equity markets that growth remains higher otherwise valuations will become threatened. This year will see the tapering of central banks long-standing QE policies. The run-rate of capital being pumped into markets will fall from the current annualised level of $2tr to zero. We have little true understanding of the impact of QE as it is difficult to separate causation, correlation & coincidence. Perhaps the counter factual, in Quantitative Tightening, will give us a better idea. Finally, there is the US Dollar. The weakness last year undoubtedly supported emerging market growth and commodity prices. If the Dollar was to be stronger this year, on the back of continued US growth and sustained interest rate rises, this may act as a headwind to global growth. We enter 2018 with low volatility and an almost unprecedented period without a meaningful pullback in markets. History would suggest that this will be resolved at some point. The key will be establishing if that is a healthy correction or something more serious. Alex Odd Important Notices & Risk Warnings This Marketstar Growth & Income Portfolio Defaqto 4 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 professional 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 December 2017 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 457558. 25 Copthall Avenue, London, EC2V 7BP. Registered in England & Wales No.586944
Growth & Income Portfolio Defaqto 5 Quarter 1-2018 Overview The Growth & Income Portfolio Defaqto 5 is a diversified multi asset portfolio, investing in a broad range of direct equities, ETFs, investment trusts and open ended funds. By blending our direct investment capabilities and asset allocation skills we look to optimise returns within a predetermined risk management range. Investment Objective The Growth & Income Portfolio Defaqto 5 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 (Balanced) at all times. For a full explanation of the Defaqto risk rating system please consult your financial adviser. Asset Allocation Growth & Income Defaqto 5 Structure Segregated Portfolio Launched 1 Jan 2017 Target Return CPI + 3% No. of Holdings 46 Equity Min/Max 10-80% NISA-compliant Yes Recommended investment period 5 years + Estimated Yield 2.55% Portfolio Charges Annual Ongoing Fees: AMC incl. VAT 0.75% Portfolio costs 0.35% Transaction fees 0.04% Total above 1.14% Initial charge * 520 * based on 250,000 investment on Fairstone Wealth platform (incl. Stamp Duty Land Tax (SDLT) & all transaction fees) based on 20% portfolio turnover p.a. Sector weights relative to benchmark Minimum Investment Initial 150,000 Additional 50,000 Availability - Fairstone Wealth Platform - Transact - Alex Odd Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) 1278 773 552 or by email on mps@marketstar.co.uk
Growth & Income Portfolio Defaqto 5 Quarter 1-2018 Top 15 Holdings Breakdown by Instrument Holding Type Weight Cash Cash 10% Vanguard UK Inv. Grade Bonds Tracker 7% ishares DJIA UCITS ETF ETF 6% Jupiter Strategic Bond OEIC 5% Blackrock N. American Equity Tracker 5% Vanguard US Equity Tracker 5% HICL Inv. Trust 4% International Public Partnerships Inv. Trust 4% Sequoia Economic Infrastructure Inv. Trust 3% GCP Inv. Trust 3% M&G Global Macro Bond OEIC 3% Artemis Strategic Bond OEIC 3% Tritax REIT REIT 2% Hansteen REIT 2% ETFS Gold Bullion Sec. ETF 2% All above All 64% Market Commentary Capital markets have seen a reasonable start to the year as investor confidence in a coordinated upturn in global growth has gained credence. From here there are three key elements to consider. Firstly, as interest rates rise will bond yields also increase, reflecting a more inflationary environment, or will the yield curve flatten further suggesting the current cycle is coming to an end. If bond yields do rise, perhaps ending the generational bond bull market, it is important to equity markets that growth remains higher otherwise valuations will become threatened. This year will see the tapering of central banks long-standing QE policies. The run-rate of capital being pumped into markets will fall from the current annualised level of $2tr to zero. We have little true understanding of the impact of QE as it is difficult to separate causation, correlation & coincidence. Perhaps the counter factual, in Quantitative Tightening, will give us a better idea. Finally, there is the US Dollar. The weakness last year undoubtedly supported emerging market growth and commodity prices. If the Dollar was to be stronger this year, on the back of continued US growth and sustained interest rate rises, this may act as a headwind to global growth. We enter 2018 with low volatility and an almost unprecedented period without a meaningful pullback in markets. History would suggest that this will be resolved at some point. The key will be establishing if that is a healthy correction or something more serious. Alex Odd Important Notices & Risk Warnings This Marketstar Growth & Income Portfolio Defaqto 5 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 professional 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 December 2017 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 457558. 25 Copthall Avenue, London, EC2R 7BP. Registered in England & Wales No.586944
Growth & Income Portfolio Defaqto 6 Quarter 1-2018 Overview The Growth & Income Portfolio Defaqto 6 is a diversified multi asset portfolio, investing in a broad range of direct equities, ETFs, investment trusts and open ended funds. By blending our direct investment capabilities and asset allocation skills we look to optimise returns within a predetermined risk management range. Investment Objective The Growth & Income Portfolio Defaqto 6 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 6 (Balanced Growth) at all times. For a full explanation of the Defaqto risk rating system please consult your financial adviser. Asset Allocation Growth & Income Defaqto 6 Structure Segregated Portfolio Launched 1 Jan 2017 Target Return CPI + 4% No. of Holdings 52 Equity Min/Max 25-100% NISA-compliant Yes Recommended investment period 7 years + Estimated Yield 2.45% Portfolio Charges Annual Ongoing Fees: AMC incl. VAT 0.75% Portfolio costs 0.28% Transaction fees 0.05% Total above 1.08% Initial charge * 580 * based on 250,000 investment on Fairstone Wealth platform (incl. Stamp Duty Land Tax (SDLT) & all transaction fees) based on 20% portfolio turnover p.a. Sector weights relative to benchmark Minimum Investment Initial 150,000 Additional 50,000 Availability - Fairstone Wealth Platform - Transact - Alex Odd Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) 1278 773 552 or by email on mps@marketstar.co.uk
Growth & Income Portfolio Defaqto 6 Quarter 1-2018 Top 15 Holdings Breakdown by Instrument Holding Type Weight Cash Cash 10% ishares DJIA UCITS ETF ETF 8% Vanguard UK Inv. Grade Bonds Tracker 5% Blackrock N. American Equity Tracker 5% Vanguard US Equity Tracker 5% HICL Inv. Trust 4% International Public Partnerships Inv. Trust 4% Crux Euro SP Sits OEIC 3% Vanguard FTSE Devd. Europe ex UK Tracker 3% Jupiter Strategic Bond OEIC 2% GCP Inv. Trust 2% Tritax REIT REIT 2% Hansteen REIT 2% British Land REIT 2% Land Secs REIT 2% All above All 59% Market Commentary Capital markets have seen a reasonable start to the year as investor confidence in a coordinated upturn in global growth has gained credence. From here there are three key elements to consider. Firstly, as interest rates rise will bond yields also increase, reflecting a more inflationary environment, or will the yield curve flatten further suggesting the current cycle is coming to an end. If bond yields do rise, perhaps ending the generational bond bull market, it is important to equity markets that growth remains higher otherwise valuations will become threatened. This year will see the tapering of central banks long-standing QE policies. The run-rate of capital being pumped into markets will fall from the current annualised level of $2tr to zero. We have little true understanding of the impact of QE as it is difficult to separate causation, correlation & coincidence. Perhaps the counter factual, in Quantitative Tightening, will give us a better idea. Finally, there is the US Dollar. The weakness last year undoubtedly supported emerging market growth and commodity prices. If the Dollar was to be stronger this year, on the back of continued US growth and sustained interest rate rises, this may act as a headwind to global growth. We enter 2018 with low volatility and an almost unprecedented period without a meaningful pullback in markets. History would suggest that this will be resolved at some point. The key will be establishing if that is a healthy correction or something more serious. Alex Odd Important Notices & Risk Warnings This Marketstar Growth & Income Portfolio Defaqto 6 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 professional 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 December 2017 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 457558. 25 Copthall Avenue, London, EC2R 7BP. Registered in England & Wales No.586944
Growth & Income Portfolio Defaqto 7 Quarter 1-2018 Overview The Growth & Income Portfolio Defaqto 7 is a diversified multi asset portfolio, investing in a broad range of direct equities, ETFs, investment trusts and open-ended funds. By blending our direct investment capabilities and asset allocation skills we look to optimise returns within a predetermined risk management range. Investment Objective The Growth & Income Portfolio Defaqto 7 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 7 (Growth) at all times. For a full explanation of the Defaqto risk rating system please consult your financial adviser. Asset Allocation Growth & Income Defaqto 7 Structure Segregated Portfolio Launched 1 Jan 2017 Target Return CPI + 5% No. of Holdings 49 Equity Min/Max 40-100% NISA-compliant Yes Recommended investment period 10 years + Estimated Yield 2.27% Portfolio Charges Annual Ongoing Fees: AMC incl. VAT 0.75% Portfolio costs 0.29% Transaction fees 0.04% Total above 1.09% Initial charge * 516 * based on 250,000 investment on Fairstone Wealth platform (incl. Stamp Duty Land Tax (SDLT) & all transaction fees) based on 20% portfolio turnover p.a. Sector weights relative to benchmark Minimum Investment Initial 150,000 Additional 50,000 Availability - Fairstone Wealth Platform - Transact - Alex Odd Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) 1278 773 552 or by email on mps@marketstar.co.uk
Growth & Income Portfolio Defaqto 7 Quarter 1-2018 Top 15 Holdings Breakdown by Instrument Holding Type Weight Cash Cash 10% ishares DJIA UCITS ETF ETF 8% Blackrock N. American Equity Tracker 7% Vanguard US Equity Tracker 7% HICL Inv. Trust 4% International Public Partnerships Inv. Trust 4% Crux Euro SP Sits OEIC 4% Vanguard FTSE Devd. Europe ex UK Tracker 4% Vanguard UK Inv. Grade Bonds Tracker 3% Jupiter Strategic Bond OEIC 2% ETFS Gold Bullion Sec. ETF 2% ETFS Physical Silver ETF 2% Artemis Strategic Assets OEIC 2% Neptune Japan Opportunities OEIC 2% Stewart Inv. Asia Pacific Leaders OEIC 2% All above All 63% Market Commentary Capital markets have seen a reasonable start to the year as investor confidence in a coordinated upturn in global growth has gained credence. From here there are three key elements to consider. Firstly, as interest rates rise will bond yields also increase, reflecting a more inflationary environment, or will the yield curve flatten further suggesting the current cycle is coming to an end. If bond yields do rise, perhaps ending the generational bond bull market, it is important to equity markets that growth remains higher otherwise valuations will become threatened. This year will see the tapering of central banks long-standing QE policies. The run-rate of capital being pumped into markets will fall from the current annualised level of $2tr to zero. We have little true understanding of the impact of QE as it is difficult to separate causation, correlation & coincidence. Perhaps the counter factual, in Quantitative Tightening, will give us a better idea. Finally, there is the US Dollar. The weakness last year undoubtedly supported emerging market growth and commodity prices. If the Dollar was to be stronger this year, on the back of continued US growth and sustained interest rate rises, this may act as a headwind to global growth. We enter 2018 with low volatility and an almost unprecedented period without a meaningful pullback in markets. History would suggest that this will be resolved at some point. The key will be establishing if that is a healthy correction or something more serious. Alex Odd Important Notices & Risk Warnings This Marketstar Growth & Income Portfolio Defaqto 7 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 professional 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 December 2017 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 457558. 25 Copthall Avenue, London, EC2R 7BP. Registered in England & Wales No.586944
Growth & Income Portfolio Defaqto 8 Quarter 1-2018 Overview The Growth & Income Portfolio Defaqto 8 is a diversified multi asset portfolio, investing in a broad range of direct equities, ETFs, investment trusts and open-ended funds. By blending our direct investment capabilities and asset allocation skills we look to optimise returns within a predetermined risk management range. Investment Objective The Growth & Income Portfolio Defaqto 8 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 8 (Adventurous) at all times. For a full explanation of the Defaqto risk rating system please consult your financial adviser. Asset Allocation 7% 5% 3%4% Cash UK Corp. Bds. 17% 12% Infrastructure UK Equity US Equity 12% Devd. Pac. Eq.(ex-J) 10% 30% Em. Mkts Eq. Global Equity Others Sector weights relative to benchmark Emerging Markets Japan Global Equity Devd. Pac.(ex-Jap.) Eq. US Equity Europe (ex-uk) Eq. UK Equity Infrastructure Global Property Commodities Absolute Return Glob. Fixed Inc. UK Corp. Bds. Cash -18% -15% -5% -3% -3% 1% 1% 3% 5% 4% 5% 7% 6% 12% -20% -15% -10% -5% 0% 5% 10% 15% Growth & Income Defaqto 8 Structure Segregated Portfolio Launched 1 Nov 2017 Target Return CPI + 5% No. of Holdings 42 Equity Min/Max 40-100% NISA-compliant Yes Recommended investment period 10 years + Estimated Yield 1.43% Portfolio Charges Annual Ongoing Fees: AMC incl. VAT 0.75% Portfolio costs 0.30% Transaction fees 0.04% Total above 1.09% Initial transaction fees * 459 * based on 250,000 investment on Fairstone Wealth platform (incl. Stamp Duty Land Tax (SDLT) & all transaction fees) based on 20% portfolio turnover p.a. Minimum Investment Initial 150,000 Additional 50,000 Availability - Fairstone Wealth Platform - Transact - Alex Odd Where can I get further information? For further information, please get in touch with our Client Support Team on +44 (0) 1278 773 552 or by email on mps@marketstar.co.uk
Growth & Income Portfolio Defaqto 8 Quarter 1-2018 Top 15 Holdings Breakdown by Instrument Holding Type Weight ishares DJIA UCITS ETF ETF 8% Scottish Mortgage Inv. Trust 6% Cash Cash 5% Crux Euro Special Situations OEIC 4% JPM US Equity Income Fund OEIC 4% Legg Mason Small Cap Value OEIC 4% Neptune Japan Opportunities OEIC 4% Stewart Inv. Asia Pacific Leaders OEIC 4% JPM GEM Income Trust Inv. Trust 4% Genesis Emerging Markets Inv. Trust 4% Somerset Emerging. Mkt. Div. Growth OEIC 4% Jupiter Strategic Bond OEIC 3% ETFS Gold Bullion Securities ETF 3% ETFS Physical Silver ETF 3% Vanguard FTSE Devd. Europe ex UK. Tracker 3% All above All 63% 9% 20% 14% 5% 18% 34% Cash OEIC Inv. Trust ETF Tracker Direct Equity Market Commentary Capital markets have seen a reasonable start to the year as investor confidence in a coordinated upturn in global growth has gained credence. From here there are three key elements to consider. Firstly, as interest rates rise will bond yields also increase, reflecting a more inflationary environment, or will the yield curve flatten further suggesting the current cycle is coming to an end. If bond yields do rise, perhaps ending the generational bond bull market, it is important to equity markets that growth remains higher otherwise valuations will become threatened. This year will see the tapering of central banks long-standing QE policies. The run-rate of capital being pumped into markets will fall from the current annualised level of $2tr to zero. We have little true understanding of the impact of QE as it is difficult to separate causation, correlation & coincidence. Perhaps the counter factual, in Quantitative Tightening, will give us a better idea. Finally, there is the US Dollar. The weakness last year undoubtedly supported emerging market growth and commodity prices. If the Dollar was to be stronger this year, on the back of continued US growth and sustained interest rate rises, this may act as a headwind to global growth. We enter 2018 with low volatility and an almost unprecedented period without a meaningful pullback in markets. History would suggest that this will be resolved at some point. The key will be establishing if that is a healthy correction or something more serious. Alex Odd Important Notices & Risk Warnings This Marketstar Growth & Income Portfolio Defaqto 8 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 professional 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 December 2017 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 457558. 25 Copthall Avenue, London, EC2R 7BP. Registered in England & Wales No.586944