Wise Designated Investment Portfolios on Pershing, Cofunds & Skandia

Transcription

1 Wise Designated Investment Portfolios on Pershing, Cofunds & Skandia January 2013 KEY BENEFITS OF THE WISE DESIGNATED INVESTMENT PORTFOLIOS Wise Investment offers a range of investment portfolios which enables the management of holdings in ISAs and other investment wrappers more actively. Furthermore, where new monies are not available for ISAs, an option to switch investment funds to ISAs is offered. Funds will only be selected if they are available on the Pershing, Cofunds and Skandia fund platforms. Active reviewing is important because, amongst other things, fund managers move, styles change and periods of strong relative performance can lead to over valuation. Four distinct portfolio options are currently available which will be monitored and reviewed on a quarterly basis at the end of December, March, June and September, with switching taking place within the next ten working days. There is a charge of 0.75% (plus VAT) for this service (to cover the review and switching of funds). Any trail commission or additional fees we receive is rebated (typically 0.5% p.a). Particular attention will be paid to changes in management and style. Additionally the overall market will be reviewed to identify other sectors that may offer greater potential returns as a result of changes which have happened in the previous quarter. The portfolios will comprise of seven funds with those in which we have the largest conviction making up 20% each and the others 10%. The smaller holdings may include funds where we have reduced our conviction due to a period of strong relative performance and funds where we have initiated a holding due to improving fundamentals. THE BENEFITS Consolidation The opportunity to have all your ISA and other fund investments looked after within a single account. Funds which you may not have arranged through Wise Investment may also be included. Flexibility Easier monitoring and analysis of your investments and implementation of any necessary changes speedily and efficiently. Choice A wide choice of funds in which to invest, including key funds from most of the UK's leading fund management groups, Wise Investment Funds and the Wise Designated Pension Portfolios and the Wise Designated Investment Portfolios. Convenience All your investments are included in a single valuation statement. Furthermore, valuations for your entire fund portfolio may be produced at any time. Control A diversified portfolio matching your attitude to investment risk and objectives for growth and/or income. Tax Planning Switch from direct investments to ISAs quickly and cost-effectively. Added Value The monitoring and switching on a quarterly basis of portfolios with pre-determined objectives such as growth, growing income or higher income. OUR AUTHORITY AND EXPERIENCE David Stephenson will carry out this activity for which Wise Investment has additional regulatory permissions. These include managing investments, dealing in investments as agents and arranging deals in investments. David Stephenson is a successful investment fund manager in his own right, holding the Advanced Financial Planning Certificate, the Investment Management Certificate and the Certificate in Discretionary Investment Management. Our portfolios were launched on the 10th July The average portfolio has out-performed its benchmark (an industry sector measure) by 1.66% per annum over the last 5 years. DATA All data and fund information in this document are taken from Financial Express Analytics, as at 9 th January 2013

2 ADVENTUROUS PORTFOLIO - Higher Risk The purpose of this portfolio is to produce a high capital growth through a diversified portfolio of investment funds. It will contain funds managed in different styles and regions but will aim to maximise the return for a UK investor. The portfolio is suitable for an investor who already has a diversified portfolio and wishes to expose a small portion to high risk investments which also have the greatest potential for capital appreciation. These investments can be expected to fluctuate widely in value and can at times produce large falls in value. Portfolio benchmark: IMA Global Aberdeen Emerging Markets 20 Jupiter International Financials 20 Threadneedle European Smaller Co 20 AXA Framlington Global Technology 10 AXA Framlington Health 10 Neptune Japan Opportunities 10 Neptune Russia & Greater Russia 10 Aberdeen Emerging Markets Managed by Global Emerging Markets Team IMA Sector - Global Emerging Markets. Morning star/osbr Rating Gold The fund aims to provide long term capital growth from direct or indirect investment in emerging stock markets worldwide or companies with significant activity in emerging markets. Jupiter International Financials Managed by Robert Mumby and Guy de Blonay since November 2011 IMA Sector Specialist. The fund aims to achieve long term capital growth through investment in equities and equity related securities of financial sector companies on an international basis, but with the power to invest in other asset types when the manager considers it appropriate for market conditions. Threadneedle European Smaller Companies - Managed by Martin Heslop since January 2013 IMA Sector European Smaller Companies. The fund invests at least two-thirds of its assets in shares of smaller companies in Continental Europe or companies that have significant operations there. As it invests in smaller companies, the fund will mainly choose shares from companies that are smaller in size than the top 225 companies in the FTSE World Europe (ex UK) Index. AXA Framlington Global Technology - Managed by Jeremy Gleeson since July 2007 IMA Sector Technology & Telecommunications. The aim of the fund is to achieve long term growth by investing in companies engaged in research, design and development of technologies in all sectors including information technology, the internet and in companies manufacturing and distribution products and / or services resulting from such research, design and development AXA Framlington Health - Managed by Gemma Game since March 2011 IMA Sector - Specialist. The objective of the fund is to achieve capital growth through investment in healthcare and medical services and product companies worldwide. Investment will be in producers of pharmaceuticals, biotechnology firms, medical device and instrument manufacturers, distributors of healthcare products, care providers and managers, and other healthcare services companies. Neptune Japan Opportunities Managed by Chris Taylor since May 2005 IMA Sector Japan. The investment objective is to generate consistent capital growth by investing predominantly in a concentrated portfolio of Japanese securities with a view to attracting top quartile performance within the appropriate peer group. Neptune Russia and Greater Russia - Managed by Robin Geffen since December 2004 IMA Sector Specialist. Morningstar/OSBR Rating Bronze The objective of the fund is to generate capital growth from investment predominantly in Russia and Greater Russian securities or securities issued by companies transacting a significant proportion of their business in Russia and Greater Russia.

3 GROWTH PORTFOLIO - Medium Risk The purpose of this portfolio is to produce capital growth through a diversified portfolio of investment funds. It will contain funds managed in different styles and regions but will aim to maximise the return for a UK investor. The portfolio is suitable for an investor who is prepared to accept fluctuations in value in exchange for increased growth prospects in the medium to longer term. Portfolio benchmark: the average of IMA Global and IMA UK All Companies BlackRock European Dynamic 20 Cazenove UK Opportunities 20 First State Global Emerging Market Leaders 20 Aberdeen World Equity 10 AXA Framlington UK Select Opportunities 10 Liontrust Special Situations 10 Schroder Asian Alpha Plus 10 BlackRock European Dynamic - Managed by Alister Hibbert since March 2008 IMA Sector Europe Excluding UK. Morningstar/OSBR Rating Silver The aim of the fund is to achieve long term capital growth by investing in companies incorporated in Europe excluding the UK. The manger will invest in either growth or value opportunities depending on the market situation. Cazenove UK Opportunities Managed by Julie Dean since December 2002 IMA Sector UK All Companies. Morningstar/OSBR Rating Bronze The objective of the fund is to achieve an income return together with long term capital growth, by investing in any economic sector of the UK Market. First State Global Emerging Market Leaders Managed by Jonathan Asante since March 2007 and Glen Finegan IMA Sector Global Emerging Markets. Morningstar/OSBR Rating Gold The fund aims to achieve long term capital growth by investing world-wide in large and mid capitalisation equities in emerging economies, including those of companies listed on developed market exchanges whose activities predominately take place in emerging market countries. The fund tends to invest defensively in quality businesses and as a result holds up well during general market set backs. Aberdeen World Equity Managed by the Aberdeen Global Equities Team since September 1983 IMA Sector Global. Morningstar/OSBR Rating Silver This fund aims to provide long term total returns from an internationally diversified portfolio of equities. AXA Framlington UK Select Opportunities- Managed by Nigel Thomas since September 2002 IMA Sector UK All Companies. Morningstar/OSBR Rating Gold The fund invests to achieve capital growth by investing in companies primarily of UK origin where the manager believes above average returns can be realised. Liontrust Special Situations managed by Anthony Cross and Julian Fosh since November 2005 IMA Sector UK All Companies. Morningstar/OSBR Rating Bronze The investment objective of the fund is for capital growth in excess of the FTSE All-Share Index over rolling three year periods. The fund invests in a portfolio of UK companies from throughout the UK stock market. Schroder Asian Alpha Plus Managed by by Matthew Dobbs since November 2007 IMA Sector Asia Pacific (excluding Japan). Morningstar/OSBR Rating Silver The investment objective of the fund is to maximise capital growth through investment in securities with an emphasis in companies in the Asia (ex Japan) region. Fixed interest securities and real estate investment trusts (REITs) may be included in the portfolio. Investments will be primarily indirectly held transferable securities. The fund may also invest in collective investment schemes, cash, deposits, derivatives, warrant and money market investments. GROWTH & INCOME PORTFOLIO - Medium Risk

4 The purpose of this portfolio is to produce capital and income coupled to a rising capital value over the medium to longer term. The priority will be to avoid major capital losses and this will be achieved by investing in a diversified portfolio. The fund is likely to be mainly invested in income generating equity funds but will also use fixed interest and property funds as appropriate. Portfolio benchmark: IMA UK Equity Income Index M&G Global Dividend 20 Newton Global Higher Income 20 Threadneedle UK Equity Income 20 Artemis Income 10 Cazenove UK Equity Income 10 Standard Life European Equity Income 10 Newton Asian Income 10 Estimated Portfolio Yield 4.29% M&G Global Dividend - Managed by Stuart Rhodes since 18 July 2008 IMA Sector Global. Morningstar/OSBR Rating Silver. The objective is to achieve a dividend yield above the market average by investing mainly in a range of global equities. The fund aims to increase distributions over the long term whilst also maximising total return (the combination of income and growth of capital). Yield 3.29%. Dividends payable in April, July, October and January. Newton Global Higher Income - Managed by James Harries since November 2005 and Nick Clas since August 2012 IMA Sector Global Equity Income. Morningstar/OSBR Rating Silver. To achieve increasing annual distributions, together with long term capital growth from investing predominantly in Global Securities. The Sub-fund may also invest in collective investment schemes. Yield 4.22%. Dividends payable in April, July, October and January. Threadneedle UK Equity Income - Managed by Leigh Harrison since February 2006, and Richard Colwell since September 2010 IMA Sector UK Equity Income. Morningstar/OSBR Rating Silver. The aim of the fund is to achieve an above average rate of income combined with sound prospects for capital growth by investing primarily in UK equities although it may invest in other securities. Yield 4.40%. Dividends payable in March, June, September and December. Artemis Income Managed by Adrian Frost since January 2002 and Adrian Gosden since October 2003 IMA Sector Equity Income. Morningstar/OSBR Rating Gold. The objective of this fund is to achieve a rising income combined with capital growth from a portfolio of primarily UK equities. The fund is actively managed and can use convertibles and fixed interest securities if the manager sees fit. Yield 4.30%. Dividends payable May and November. Cazenove UK Equity Income Managed by Matthew Hudson IMA Sector UK Equity Income. Crown Rating 5. The aim of the fund is to achieve a high level of income together with long term capital growth by investing predominantly in UK equities. Yield 3.90%. Dividends payable July and January. Standard Life Investment European Equity Income managed by Will James since April 2009 IMA Sector Europe (excluding UK). Morningstar/OSBR Rating Bronze The fund aims to provide income and some capital growth over the longer term by investing predominantly in the shares of companies listed on European stock markets, excluding the UK. The fund typically holds a concentrated portfolio of stocks and may also hold a proportion in bonds to supplement the income of the fund. The fund is actively managed. Yield 4.69%. Dividends payable Feb, May, August and November. Newton Asian Income - Managed by Jason Pidcock since November 2005 & Caroline Keen since July 2011 IMA Sector Asia Pacific excluding Japan. Moringstar/OSBR Rating Silver. The objective is to achieve income, together with long term capital growth predominantly from investments in securities in the Asia Pacific ex Japan (including Australia and New Zealand) region. Yield 4.66%. Dividends payable April, July, October and January. Please note that dividend payments from the funds are made at the end of the month in which they fall due and are usually paid to clients on Pershing, Skandia and Cofunds the following month.

5 HIGHER INCOME PORTFOLIO - Cautious Risk The purpose of this Portfolio is to achieve a higher income than could be achieved by investing in a high yielding equity portfolio, along with some capital growth over the long term. The portfolio will invest in a diverse range of funds investing in different asset classes to reduce risk. Whilst income and capital preservation are important, the underlying value of the portfolio will fluctuate. This fund is suitable for clients looking to achieve a higher level of income. Income can be re-invested. Portfolio benchmark: the average of IMA Mixed Investment 0-35% Shares Fidelity Enhanced Income 20 Invesco Perpetual Monthly Income Plus 20 Threadneedle Monthly Extra Income 20 Artemis High Income 10 Jupiter Strategic Bond 10 M&G Optimal Income 10 Templeton Global Total Return Bond 10 Estimated Portfolio Yield 4.86% Fidelity Enhanced Income managed by David Jehan and Michael Clark since February 2009 IMA Sector -UK Equity Income. The fund s investment objective is to achieve income with potential for some capital growth from a Portfolio made up mainly of the securities of UK Companies. Derivatives and forward transactions may be used for investment purposes and this may include using derivatives instruments to generate additional income, for example, by the writing of call options. The fund may also invest in other transferable securities, units in collective investments schemes, money market instruments, cash and deposits. Yield 7.34 %. Dividends payable March, June, September and December. Invesco Perpetual Monthly Income Plus - Managed by Paul Read, Paul Causer since February 1999 and Neil Woodford since June 2006 IMA Sector Sterling Strategic Bond. Morningstar/OSBR Rating Gold. The aim of the fund is to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and government bonds, together with UK equities. Yield 6.25%. Dividends payable monthly. Threadneedle Monthly Extra Income managed by Alasdair Ross since April 2009 and Richard Colwell since January 2010 IMA Sector UK Equity & Bond Income. The aim of the fund is to achieve a high level of income with prospects of capital growth. The fund will invest in Sterling denominated fixed interest securities and UK equities. Yield 3.90%. Dividends payable monthly. Artemis High Income Managed by Adrian Frost since September 2002 and Adrian Gosden IMA Sector Strategic Bond. Morningstar/OSBR Rating Silver. The objective of the fund is to achieve a higher than average initial yield, combined with the prospect of rising income and some capital growth over the long-term. The emphasis of the fund will be investment in UK fixed-interest investments and preference shares, however, the manager has the flexibility to invest in all economic sectors worldwide and in equities. Yield 6.00%. Dividends payable February, May, August, November. Jupiter Strategic Bond Managed by Ariel Bezalel since June 2008 IMA Sector - Sterling Strategic Bond. The fund aims to achieve a high income with the prospect of capital growth, by seeking out the best opportunities within the fixed interest universe globally. The fund invests in higher yielding assets including high yield bonds, investment grade bonds, government bonds, preference shares, convertible bonds and other bonds. The manager will only enter into derivative transactions for the purpose of efficient management of the portfolio and not for investment. Yield 5.40% Dividends payable February, May, August, November. M&G Optimal Income - Managed by Richard Woolnough since December 2006 IMA Sector Sterling Strategic Bond. Morningstar/OSBR Rating Silver The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. Yield 2.91%. Dividends payable April & October. Templeton Global Total Return Bond Managed by John Beck and Michael Hasenstab since June IMA Sector Global Bond. Crown Rating 5. The fund's investment objective is to achieve long-term returns from a combination of income, capital growth and currency gains. Yield 4.59%. Dividends payable March, June, September and December.

6 Please note that dividend payments from the funds are made at the end of the month in which they fall due and are usually paid to clients on Pershing, Skandia and Cofunds the following month. ADVENTUROUS and GROWTH PORTFOLIO Medium to Higher Risk The purpose of this portfolio is to produce capital growth through a diversified portfolio of investment funds. It will contain funds managed in different styles and regions but will aim to maximise the return for a UK investor. The portfolio is suitable for an investor who is prepared to accept fluctuations in value in exchange for increased growth prospects in the medium to longer term. The portfolio is a 50/50 mix of the Adventurous and Growth Portfolios as detailed above. Portfolio benchmarks: the average of IMA Global and IMA UK All Companies. GROWTH and GROWTH & INCOME PORTFOLIO Medium Risk The purpose of this portfolio is to produce capital growth through a diversified portfolio of investment funds. The priority will be to avoid major capital losses using a strategy of investing in a diversified portfolio. It will contain funds managed in different styles and regions but will aim to maximise the return for a UK investor. Half of the fund is likely to be mainly invested in income generating equity funds but will also use fixed interest and property funds as appropriate. The portfolio is suitable for an investor who is prepared to accept fluctuations in value in exchange for increased growth prospects in the medium to longer term. The portfolio is a 50/50 mix of the Growth and Growth & Income Portfolios as detailed above. Income cannot be taken from this portfolio and must be re-invested back into the holding. Portfolio benchmarks: the average of IMA Global & IMA UK Equity Income GROWTH & INCOME and HIGHER INCOME PORTFOLIO Cautious to Medium Risk The purpose of this portfolio is to produce a mixture of capital and income and a higher income than could be achieved by investing in a high yielding equity portfolio, along with some capital growth over the long term. The priority will be to avoid major capital losses and this will be achieved by investing in a diversified portfolio. The portfolio will invest in a diverse range of funds investing in different asset classes to reduce risk. Half of the fund is likely to be mainly invested in income generating equity funds but will also use fixed interest and property funds as appropriate. Whilst income and capital preservation are important, the underlying value of the portfolio will fluctuate. This fund is suitable for clients looking to achieve a medium to higher level of income. The portfolio is a 50/50 mix of the Growth & Income and Higher Income Portfolios as detailed above. Income can be re-invested. Portfolio benchmark: the average of IMA and IMA UK Equity Income Charges Wise Investments will make an annual charge of 0.75% (plus VAT) per annum for this portfolio service. We will offset against this any trail commission or additional fees we receive from fund managers (typically 0.5% p.a). The charge will be taken by deduction of units. RISK Classification - The seven funds held within the Designated Portfolios may individually have a higher or lower risk classification than the portfolio itself. However, the average fund risk will fall within that of the portfolio. Diversification - The range of funds within the portfolios diversifies risk. Property funds* - Property assets may be difficult to buy or sell. This could result in a delay in switching assets out of a fund invested in property. If this is the case we will try to implement a switch as soon as possible. Volatility* - The value of investments is not guaranteed. Values may go down as well as up and income may fluctuate and you may not get back your original investment. Past performance is no guarantee for the future. * Full details are shown in the Platform Key Features and Fund Key Features which are available on request. SELECTION OF PORTFOLIO Selection will be subject to the investor s aims and attitude to investment risk. OVERVIEW Fund Platforms Several Fund Platforms exist and we have selected Pershing, Cofunds and Skandia for the reasons shown below. Furthermore they offer access to our own TB Wise Funds.

7 Cofunds Key facts at a glance Established in 2001 UK's largest independent investment platform Specialises in servicing the adviser market Impartial - does not offer advice or own funds Access to over 1,800 funds from more than 90 fund managers UK Platform Awards 2012 Best Institutional Platform Shares Award 2012 Best Fund Supermarket Goodacre Systems in the City Awards 2012 Best Custody System Aberdeen UK Platform Awards 2011 Best Institutional Platform Moneyfacts Investment Life & Pensions / Best Online Service Award 2011 Moneyfacts Investment Life & Pensions / Best Platform Award bn assets under administration (as at 3/12/2012) Shareholders: Legal & General 25%, International Financial Data Services 24%, Threadneedle 20%, Newhouse Capital Partners 18%, Jupiter 10%, Prudential 3% Skandia Key facts at a glance Skandia is a subsidiary of the Old Mutual Group, one of the world s leading financial services companies. Old Mutual has been established over 160 years in both South Africa and Sweden, is listed on the London Stock Exchange and is one of the largest 100 companies with funds under management of billion (as at 30/9/2012) The Skandia Investment Solutions investment platform provides access to more than 1100 funds through 90 leading fund managers. Skandia Investment Solutions is the brand name of a new investment platform that combines the strength, innovation and award winning service standards of two of the UK s Market leading investment providers; Selestia and Skandia MultiFUNDS. Awarded Financial Adviser-Investments and Pensions Award November Stars Awarded Investment Adviser Awards Best Platform Technical Support September 2012 Winner Awarded Aberdeen Platform Awards Best Fund Platform September Winner Awarded Company of the Year by FTAdviser.com online service awards June 2012 Winner Awarded Life and Pensions Provider2 by FTAdviser.com online service awards June Winner Awarded Best WRAP or Platform by Money Marketing Financial Services Awards March Winner Awarded Professional Adviser Award Best Wrap / Platform - February 2012 Winner Awarded Best Outsourced Investment Solution for Advisers February Winner Figures correct as at 8 th January Pershing Key facts at a glance Established in 1939 as a provider of outsourced financial services and established a London office in 1987 A subsidiary of Bank of New York Mellon Access to whole of market Pershing has over 37 billion in assets (as at 30/06/2012) The Bank of New York Mellon has $27.9 trillion in assets BNY Mellon is a leading asset management and securities services company A pioneer and industry leader in providing collateral solutions for dealers and investors around the globe