Short report For the period ended 30 June 2015

Transcription

1 Short report For the period ended 30 June 2015

2 Short reports Architas MM Strategic Bond Fund For the period ended 30 June 2015 Investment objective The Fund aims to provide a return on your investment. Investment policy The Fund pursues its aim mainly by investing in other funds (underlying funds). Underlying funds are selected principally on the basis of our assessment of their consistency of investment returns, the risks related to the investment strategy, the strength of the investment process and the stability of the fund s management team. The underlying funds may invest mainly in tradable debt (bonds) denominated in pounds sterling or in other currencies where the risk of changes in the currency concerned against pounds sterling is removed by entering into financial transactions (FX hedging). The Fund may also invest directly in shares, debt instruments which can easily be converted into cash (money market instruments), freely transferable rights to buy other investments at a future date (warrants), financial contracts that derive their values from those of other investment instruments or indices (derivatives) and deposits. However, investment in derivatives is limited to situations where they are required to reduce risk or costs in line with the risk profile of the Fund. The Fund may use investment techniques including borrowing cash and making investments intended to offset potential losses that may be incurred by other investments (hedging). Ex-dividend 31 Dec Distribution date 31 Jan Risk and reward profile Lower risk Potentially lower reward Higher risk Potentially higher reward Your investment in the Fund is not guaranteed. The Fund is invested in financial assets and instruments and uses financial techniques that are subject to levels of variation, that may result in gains or losses. Funds of category 3 have shown in the past a low to medium volatility. The volatility describes how much the value of the fund went up and down in the past. The shares of a fund of category 3 might be subject to low to medium price fluctuations based on the historical volatility observed. More information in relation to risks in general may be found in the Risk Factors section of the prospectus and the current Key Investor Information Document (KIID). Important event during the period There were no significant events during the period ended 30 June Report and accounts The purpose of sending this Short Report for the Fund is to present you with a summary of how the Fund has performed during the accounting period in accordance with the Financial Conduct Authority s Collective Investment Scheme Sourcebook (COLL) rules. Copies of the latest annual or interim reports for Architas Multi-Manager Investments ICVC II, which includes this Fund, are available free of charge on request to our customer services team who can be contacted on Other information The Fund is a sub-fund of Architas Multi-Manager Investments ICVC II which is an open ended investment company authorised by the Financial Conduct Authority, and is a UCITS scheme. Performance In the period ended 30 June 2015, the Architas MM Strategic Bond Fund fell 0.60% and ranked in the third quartile of its peer group, the IA* Sterling Strategic Bond sector average. (Source: Morningstar Direct, July 2015.) * The Investment Management Association (IMA) merged with the Investment Affairs Division of the Association of British Insurers to create The Investment Association effective 5 January This risk indicator is based on historical data and may not be a reliable indication of the future risk profile of the Fund. The lowest category does not mean risk free. The risk and reward category may shift over time and is not guaranteed.

3 Short reports Market review Volatility has been a central theme in 2015 and by the end of the half year news stories from the beginning of the year still dominated. By the end of the second quarter Greece had still not restructured its debt, the US Federal Reserve was still hinting at raising interest rates, China s Shanghai Composite Index volatility continued and currency markets were acting as the ultimate pressure release valve for quantitative easing. With few exceptions bonds sold off over the period with most indices ending the half year in negative territory (rebased in sterling). This reflected inflationary fears, as we saw better economic data in Europe, a stronger oil price and continued growth in the US economy which brought forward expectations of a US interest rate rise this year. Fund review Most constructive to returns over the year were the CVC Credit Partners Euro Opportunities Fund which returned 5.0%; the JP Morgan Senior Secured Loan Fund at 4.4% and the Fair Oaks Income Fund which rose 5.9% over the period. Also our holdings in the IA Strategic Bond sector were beneficial over the period with both the funds we hold in that sector ranking in the top 25%: the PFS Twentyfour Dynamic Bond Fund provided a return of 4.0% over the period; and the Royal London Sterling Extra Yield Bond Fund returned 2.8%. Less constructive were our holdings in the IA Global Bonds sector; the BlackRock Government Bond Tracker Fund weighed on performance with a loss of 5.1% and the BlackRock Overseas Corporate Bond Tracker Fund which dropped 3.9%;both of these funds were hampered by their sensitivity to interest rates; these bonds tend to have a longer maturity. Discrete annual performance % (0.60) Dec 14 to 30 Jun Jun 14 to 30 Jun Jun 13 to 30 Jun 14 Architas MM Strategic Bond Fund 3.62 IA Sterling Strategic Bond sector average Jun 12 to 30 Jun Jun 11 to 30 Jun Jun 10 to 30 Jun 11 Source: Morningstar, mid to mid, net revenue reinvested. Please note that past performance is not a guide to future performance. The net value of investments may go down as well as up, and you may receive less back that you invested. The above graph shows performance for the R accumulation (net) share class. Performance figures for the other share classes are available by contacting Architas. In January, we initiated a position in the Kames Absolute Return Bond Fund and the BlackRock Index Linked Gilt Tracker Fund. In March we bought the Royal London Sterling Extra Yield Bond Fund. The final investment decision in the portfolio came in June we sold the Carador Income Fund. Net asset value record* Share class Net asset value 30/06/2015 Net asset value 31/12/2014 A accumulation (gross) A accumulation (net) A income (gross) A income (net) R accumulation (net) * Valued at bid market value.

4 Short reports Top ten holdings As at 30 Jun 2015 As at 31 Dec 2014 AXA Global High Income Fund 10.31% AXA Global Strategic Bonds 14.41% BlackRock Corporate Bond Tracker Fund 9.92% AXA Global High Income Fund 10.32% AXA World Funds Global Strategic Bonds 8.24% BlackRock Corporate Bond Tracker Fund 9.03% PFS TwentyFour Dynamic Bond Fund 7.31% PFS TwentyFour Dynamic Bond Fund 6.83% TwentyFour Income Fund 6.27% NB Global Floating Rate Income Fund 6.35% NB Global Floating Rate Income Fund 5.91% TwentyFour Income Fund 6.05% Vanguard U.K. Short-Term Investment Grade Bond Index Fund 5.18% BlackRock Overseas Government Bond Tracker Fund 5.50% AXA Sterling Corporate Bond Fund 5.14% Vanguard U.K. Short-Term Investment Grade Bond Index Fund 5.41% BlackRock UK Gilts All Stocks Tracker Fund 4.84% AXA Sterling Corporate Bond Fund 5.04% PIMCO Capital Securities Fund 4.62% BlackRock UK Gilts All Stocks Tracker Fund 4.67% Portfolio breakdown* As at 30 Jun 2015 l International fixed interest 54.11% l UK fixed interest 45.89% As at 31 Dec 2014 l International fixed interest 62.28% l UK fixed interest 37.72% * Re-classification to conform with the 2015 presentation of asset allocation.

5 Short reports Ongoing charges figure(s) Share class Administrative expenses Underlying fund expenses[a] Total OCF 30/06/2015 A accumulation (gross) 0.72% 0.23% 0.95% A accumulation (net) 0.72% 0.23% 0.95% A income (gross) 0.72% 0.23% 0.95% A income (net) 0.72% 0.23% 0.95% R accumulation (net) 1.42% 0.23% 1.65% Share class Administrative expenses Underlying fund expenses[a] Total OCF 31/12/2014 A accumulation (gross) 0.72% 0.17% 0.89% A accumulation (net) 0.72% 0.17% 0.89% A income (gross) 0.72% 0.17% 0.89% A income (net) 0.72% 0.17% 0.89% R accumulation (net) 1.42% 0.17% 1.59% [a] Underlying fund expenses are in relation to your fund holding investments in other collective investment schemes but excludes holdings in investment trusts. Performance record A accumulation (gross)[a] A accumulation (net)[a] Calendar year 2010 N/A N/A N/A N/A N/A N/A 2011 N/A N/A N/A N/A N/A N/A [c] [d] [d] [d] [d] A income (gross)[a] A income (net)[a] Calendar year 2010 N/A N/A N/A N/A N/A N/A 2011 N/A N/A N/A N/A N/A N/A [c] [d] [d] [d] [d] Calendar year R accumulation (net) [c] [d] [d] [a] From 23 October 2012 (date of launch). [b] Highest and lowest share prices are at mid-market values. [c] Up to 31 January 2015 (the final distribution pay date). [d] To 30 June 2015.

6 Home I About Architas I Fund facts I Information centre I Contact us Best Multi Manager Provider Our approach Architas is a multi-manager investment house offering a diverse range of funds enabling you to access some of the world s best fund managers through a single investment. We aim to make investing simple so that we can try to help you meet your investment objectives, whether that is investing to generate an income, preserving your wealth or aiming to grow your investment. Search... Past performance is not a guide to future performance Privacy I Terms of use I Investment glossary I Stewardship code policy I Order execution policy I Pillar 3 disclosure I Cookie policy I Accessibility Architas Multi Manager Limited Copyright 2013 Architas Multi Manager Limited Why multi-manager investing? Fund factsheets and prices Key investor information documents Quicklinks For a quicklink select a page from the list below Select a page... Contact us Please contact customer services for all enquires: Call * *Monday to Friday 9.00am 5.30pm. As part of our commitment to quality service and security, telephone calls may be recorded. Calls are free from landlines and mobiles within the UK. You can write to us at: Architas Multi-Manager Limited PO Box Chelmsford CM99 2XU Fax: For a written valuation, general enquiries, dealing or notifying us if your customer circumstances change. If you would like to access more information about Architas, our Funds or to give feedback, you can do so via our website. To the left is a QR code* which you can scan on your smart-phone or tablet and it will take you directly to the website. Alternatively, please visit: Authorised corporate director Architas Multi-Manager Limited 5 Old Broad Street London EC2N 1AD United Kingdom Authorised and regulated by the Financial Conduct Authority. Member of the Investment Association. Depositary State Street Trustees Limited 20 Churchill Place Canary Wharf London E14 5HJ Authorised and regulated by the Financial Conduct Authority. Member of the Depository and Trustee Association. Independent auditors Ernst and Young 10 George Street Edinburgh EH2 2DZ *To use a QR code, you will need to download a QR code reader app, a variety of which are available free from your device s app store. Investing made simple 1: Open the QR code app on your camera phone or tablet and line up the screen with the QR codes overleaf. 2: Wait for the app to scan and take a picture. 3: You will be taken directly to our website.

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8 AXA is a worldwide leader in financial protection and wealth management. In the UK, one of the AXA companies is Architas Multi-Manager Limited, an investment company that provides access to other investment managers services through a range of multi-manager solutions, including regulated collective investment schemes. Architas Multi-Manager Limited is a company limited by shares and authorised and regulated by the Financial Conduct Authority. It is registered in England: No Registered Office: 5 Old Broad Street, London, EC2N 1AD.