LIBero BaLanced Fund. January Will Buckhurst

Transcription

1 LIBero BaLanced Fund January 2014 Will Buckhurst

2 LIBERO BALANCED FUND designed to offer Quilter cheviot s core investment strategy via one pooled investment fund. Your fund manager will make day-to-day investment decisions on your behalf, so as to be able to act quickly to take advantage of investment opportunities. An actively managed multi-asset fund giving you exposure to global equities, bonds and alternative investments. A progressive dividend yield of around 2%. No capital gains tax payable on trades carried out within the fund. You will benefit from regular contact with your fund manager who will keep you up to date with your investment as well as being available to answer questions as they arise. Investors should remember that the value of investments, and the income from them, can go down as well as up. You may not recover what you invest. 2

3 INVESTMENT STRATEGY IndIcatIVe PortFoLIo BreakdoWn FIXed Interest soverign debt Investment Grade corporate Bonds equities active management Global companies sector/theme diversification alternative InVestMents Infrastructure Hedge Funds Investment objectives capital appreciation and income smooth volatility of returns over the economic cycle risk medium tolerance to risk equity exposure range 50-75% Investment style global multi-asset mid and large cap bias Investment process top down approach bottom up approach driven by quants, fundamental research and stock selection cash LIQuIdIty In all asset classes 3

4 OUR INVESTMENT PROCESS Our forward looking investment process allows us to keep ahead of today s constantly changing markets and is flexible enough to incorporate each client s investment restrictions. The diagram below provides an overview of our investment process. FUND INFORMATION / MEETINGS INVESTMENT MANAGERS BALANCED INVESTMENT OBJECTIVES ASSET ALLOCATION MACRO ECONOMIC DATA/ RESEARCH CIO / STRATEGIST STRATEGIC TACTICAL SECURITY SELECTION LIBERO FUND MANAGEMENT TEAM LIBERO BALANCED FUND ( ACTIVELY MANAGED HOLDINGS) FIXED INTEREST EQUITIES ALTERNATIVES FUNDS SECURITY RESEARCH RESEARCH ANALYSTS ONGOING REVIEW RISK CONTROL 4

5 LIBERO BALANCED FUND as at 31 December 2013 top 10 HoLdInGs % By asset allocation Polar capital north american Fund 5.08 JPMorgan american Investment trust 4.58 Findlay Park american Fund 3.95 Henderson european special situations 3.42 tsy 1.25% 2017 Index Linked Gilt % 7.06% 5.39% 2.32% 2.83% 2.98% 14.12% Lo Funds -sands us Growth 3.26 royal dutch shell Plc - B % 45.28% Blackrock european dynamic d 2.38 aptus Global Financials c 2.36 Vodafone Group Plc 2.31 total top Fixed interest United Kingdom North America Europe (ex UK) Japan Asia Pacific (ex Japan) Emerging markets Alternative markets Cash Source: Quilter Cheviot as at 31 December

6 LIBERO BALANCED FUND PERFORMANCE since launch to 31 December 2013 Cumulative performance (%) to 31 December m 6m 1Y 2Y Since Launch** Libero Balanced Fund A Accumulation Quartile Ranking*** Discrete year performance (%) to 31 December ** 2009 Libero Balanced Fund A Accumulation ** Since launch 31st March 2011 following an initial offer period. Source: Financial Express 31/12/2013 *** Sector is IMA Mixed Investment 40-85% shares Past performance is not a guide to future performance and future returns are not guaranteed. 6

7 LIBERO BALANCED FUND CURRENT PORTFOLIO FIXED INTEREST ASSET ALLOCATION UK EQUITIES (cont.) ASSET ALLOCATION EUROPE (EX UK) ASSET ALLOCATION UK Treasury Index-linked 1.25% % GlaxoSmithKline 2.26% Henderson European Special Situations Fund 3.47% UK Treasury Index-linked 1.875% % AstraZeneca 0.76% BlackRock European Dynamic Fund 2.37% Heinz 6.25% % Debenhams 0.33% 2CG European Capital Growth Fund 1.28% CG Return Fund 2.35% Marks & Spencer 0.29% TOTAL EUROPE (EX UK) 7.12% Ferox Salar Convertible Bond Fund 1.86% Informa 0.47% Starwood European Real Estate Finance 2.46% WPP 1.03% TOTAL FIXED INTEREST 14.02% Greene King 0.62% JAPAN ASSET ALLOCATION Ladbrokes 0.36% Neptune Japan Fund 1.17% UK EQUITIES ASSET ALLOCATION Intercontinental Hotels 0.52% GLG Japan Core Alpha Fund 1.86% Royal Dutch Shell 2.67% Compass Group 0.56% TOTAL JAPAN 3.04% Tullow Oil 0.41% BT Group 0.56% BP 2.21% Vodafone 2.31% BG Group 1.30% National Grid 0.98% ASIA PACIFIC (EX JAPAN) ASSET ALLOCATION Petrofac 0.48% Pennon Group 0.53% Schroders Asia Pacific Trust 1.75% Kentz Corporation 0.40% Aptus Global Financials Fund 2.33% First State Asia Pacific Leaders Fund 1.58% Alent 0.40% Polar Capital Global Financials Trust 0.97% TOTAL ASIA PACIFIC (EX JAPAN) 3.33% BHP Billiton 1.76% Polar Capital Global Financials Trust Sub Shares 0.03% Rio Tinto 1.44% Standard Chartered 0.80% Rolls Royce 0.63% HSBC 2.05% EMERGING MARKETS ASSET ALLOCATION Rolls Royce C shares 0.00% Resolution 0.48% Genesis Emerging Markets Trust 0.56% Smith (DS) 0.52% Legal & General 0.85% Aberdeen Emerging Markets Fund 1.91% Halma 0.45% Prudential 0.73% TOTAL EMERGING MARKETS 2.47% Melrose 1.00% Segro 0.50% Weir Group 0.50% British Land 0.82% Aggreko 0.77% Investec 0.46% ALTERNATIVE INVESTMENTS ASSET ALLOCATION Wolseley 0.73% Close Brothers 0.50% BH Global 0.83% GKN 0.58% Aberforth Smaller Companies Trust 0.69% Acquila Capital Risk Parity 7 Fund 0.75% Diageo 0.96% Threadneedle UK Mid 250 Fund 1.19% Man AHL Diversity Fund 0.80% SABMiller 0.79% TOTAL UK EQUITIES 45.52% GAM Star Global Rates Fund 0.96% Unilever 0.50% 3i Infrastructure 1.21% AB Foods 0.45% TOTAL ALTERNATIVE INVESTMENTS 4.54% Reckitt Benckiser 0.37% NORTH AMERICA ASSET ALLOCATION Persimmon 0.34% Axa Framlington American Growth Fund 4.26% British American Tobacco 0.72% Polar Capital North American Fund 3.84% CASH 3.24% Smith & Nephew 0.45% Findlay Park American Fund 4.05% Abcam 0.32% JP Morgan American Investment Trust 4.57% Genus 0.36% TOTAL NORTH AMERICA 16.72% TOTAL 100% Source: Quilter Cheviot as at 5 October

8 LIBERO BALANCED FUND KEY FUND POINTS LAUNCH DATE 31 March 2011 FUND SIZE 19,339,369 BENCHMARK FT APCIMS Balanced SEDOLS Retail (Acc/Inc) B5MF096 / B5TK447 Clean (Acc/Inc) B4S5LT0 / B4PR843 ANNUAL FEE 1.5% (Retail) OCF 2.03% (Retail) 1.0% (Clean) 1.53% (Clean) No performance fees INITIAL FEE 5.00% (Retail) 0.00% (Clean) the Libero funds are available on a number of third party platforms, including ascentric, cofunds, novia, aviva, Platform one, nucleus, standard Life, seven IM, aegon. 8

9 GENERIC FETAURES OF THE LIBERO PORTOFOLIO FUND OEIC OEIC UCITSlll Fund Structure ISA SIPP and SSAS eligible Minimum Investment Levels - Lump Sum Investment 1,000 - Monthly Savings 100 per month - ISA Lump Sum 1,000 Accumulation and Income Units available No CGT paid within the Fund, liability for CGT only on disposal Investment in the Fund should be regarded as long-term (three to five years) Daily pricing (12pm) Monthly Factsheets and Quarterly updates from the manager 9

10 APPENDICES 10

11 YOUR INVESTMENT TEAM claudia QuIroZ Investment director t: e: Claudia joined Quilter Cheviot from Henderson Global Investors in She is the Lead Fund Manager of the Quilter Cheviot Climate Assets Fund, winner of the Best New Entrant at the Climate Change Awards 2010 and the Best Performing Fund at Barchester Green s Ethical Investment Awards Claudia has over 13 years experience in Sustainable & Responsible Investing and 5 years experience in engineering. She graduated with a degree in Chemical Engineering in Argentina, and holds an MBA from Cass Business School in London. Claudia sits on the Quilter Cheviot International Investment Committee. WILLIaM BuckHurst Investment director t: e: william.buckhurst@quiltercheviot.com William joined the company in 2006, having previously worked at UBS Wealth Management and Laing & Cruickshank. He manages discretionary portfolios for private clients, trusts, and charities, and is the co-manager of the Libero Balanced Fund and the Climate Assets Fund. He also has responsibility for investment fund research at Quilter Cheviot. He is a member of the Chartered Institute for Securities & Investment and a graduate of Newcastle University. camilla carson Investment Manager t: e: camilla.carson@quiltercheviot.com Camilla joined Quilter Cheviot s investment team in She holds an honours degree in politics from the University of Liverpool and is a qualified member of the Chartered Securities Institute. Camilla manages portfolios for private clients, trusts and charities and assists in the management of the Quilter Cheviot Climate Assets Fund and the Libero Balanced Fund. Camilla is also a member of Quilter Cheviot Alternative Investment Committee. In 2011 Camilla was named as one of CityWealth Magazine s Top Emerging Wealth Managers. She jointly established Quilter Cheviot s Gen Y Association in 2008 and is committed to a number of charitable projects. nichola Bate team assistant t: e: nichola.bate@quiltercheviot.com Nichola has a diploma in business administration and secretarial science from Medicine Hat College, Alberta. Prior to Quilter Cheviot Nichola was the personal assistant to the Bishop of Derby a role she has also held in at military brigade headquarters, for exhibition organisers and at a primary school. She is heavily involved with a number of military charities in conjunction with her family s affiliation with the Royal Hospital Chelsea. Nichola enjoys walking her miniature schnauzer, Jambo, and in any spare time enjoys sewing replica 18th and 19th century samplers. 11

12 QUILTER CHEVIOT INVESTMENT MANAGEMENT IndePendentLy owned Part-owned by and managed by directors and staff experience Investment team of 160 average experience is 19 years InVestMent PerForMance arc top quartile over 5 years track record since 1995 ONE OF THE UK'S LARGEST INDEPENDENTLY OWNED INvESTMENT MANAGERS WITH 14.3bn AUM Investment Team includes: William Buckhurst claudia Quiroz alan McIntosh david Miller ned naylor-leyland 12

13 PERFORMANCE We subscribe to the performance monitoring service provided by Asset Risk Consultants (ARC), an independent investment consultancy firm who deliver impartial performance comparators for the financial services industry. The full list of 50 investment and asset management firms submitting client performance data to ARC s Private Client Indexes (PCI) is shown later in this presentation on the slide called ARC Contributing Fund Managers. ARC works for a global client base and has proven expertise in assessing and monitoring investment structures and performance across the full range of traditional and non-traditional asset classes. They combine the application of proprietary analytical techniques with established performance metrics, delivered through the appropriate mix of software and consulting. From July 2013, Quilter Cheviot has a single Investment Process under the auspices of Duncan Gwyther, Chief Investment Officer and Alan McIntosh, Chief Investment Strategist. Quilter joined ARC in January 2013; under the ARC PCI rules, ARC does not publish data output for firms with less than 12 months of data submission. Cheviot joined ARC in 2007 and therefore, the following data represents the Cheviot client and model portfolio data submissions. ARC will publish combined data for Quilter Cheviot from July

14 WHAT WE DO assets under Management in excess of 15.2 billion as at January 2014 Focus on working with private clients and their advisers Personalised service to provide strong performance across all investment strategies MuLtI-asset InVestMent dfm (discretionary Fund Management) Libero Balanced Fund We manage discretionary portfolios typically in excess of 250,000. smaller portfolios in excess of 1,000 may be invested in the Libero Balanced Fund We do not employ relationship managers. clients and their advisers talk to the people who manage the portfolios We offer a simple and transparent charging structure with no performance fees 14

15 AWARDS DFM (BESPOKE) DFM (MANAGED PORTFOLIO) DFM (BESPOKE) DFM (MPS) DFM (BESPOKE) DFM (MPS) Past performance is not a guide to future performance and future returns are not guaranteed. 15

16 GKN MANUFACTURER OF PARTS FOR THE AUTOMOTIVE AND AEROSPACE INDUSTRIES BusIness Market Cap 6.0b Global engineering group in the automotive, aerospace and Land systems market Global leader in cvj s (constant velocity joints) where it has a c.44% global market share a leader in drive line technology, torque management and powder metal components Share Price 342p P/E ratio 13.5x Dividend Yield 2.2% InVestMent case Gkn is continuing to successfully grow its business through the dual aspect of automotive and aerospace the acquisition of Volvo aerospace was strategically positive and at a good price Valuation and yield are attractive 30/09/ /09/2013 Data from FE 2013 References to specific securities are not recommendations to buy or sell those securities. 16

17 FEROX SALAR FUND CONVERTIBLE BOND EXPERTISE BusIness Ferox was founded over ten years ago by a team of investment specialists from JP Morgan the principals of the firm have well over 100 years of convertible bond experience between them they are supported by a team of credit and technical analysts organised to cover the global convertible bond market Fund Size $725m Share Price No. of Positions 153 Dividend Yield 1.4% 30/09/ /09/2013 Data from FE 2013 InVestMent case convertible bond issuance by companies has been strong this year reduced duration risk Income with equity market exposure 30/09/ /09/2013 Data from FE 2013 References to specific securities are not recommendations to buy or sell those securities. 17

18 DS SMITH PLC FOOD PACKAGING BusIness Global packaging provider to the food and industrial markets key relationships with leading supermarkets to recycle wastepaper from moving products at the back of the store Market Cap 2.4b Share Price 2.9 P/E ratio 11.2x Dividend Yield 2.9% InVestMent case reducing exposure to volatile paper production by focusing on packaging materials acquisition of packaging division of sweden s sca increased exposure to europe and other global markets self-help mode underpinned by merger synergies and cost saving set to benefit from the increasing need to recycle paper and offer high performance solutions to the packaging industry strong cash flow generation supports decent dividend yield Source: Datastream References to specific securities are not recommendations to buy or sell those securities. 18

19 DISCLAIMER The value of investments and the income from them can go down as well as up. You may not recover what you invest. There are risks involved with this type of investment. Please refer to the Prospectus, Key Investor Information and Supplementary Information documents for further details, available free of charge from the Authorised Corporate Director ( ACD ) WAY Fund Managers Limited, Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB. This document is for general information purposes only and does not take into account the specific investment objectives, financial situation or individual requirements of any particular person. It is not a personal recommendation and it should not be regarded as a solicitation or an offer to buy or sell any securities or instruments mentioned in it. Quilter Cheviot recommends that potential investors independently evaluate investments, and encourages investors to seek the advice of a financial advisor. Unless otherwise stated, all statistics have been supplied by Quilter Cheviot. Libero Balanced is a sub-fund of the Libero Portfolio Fund which is an open ended investment company authorised and regulated by the Financial Conduct Authority. Whilst we believe the facts to be correct, we cannot assume liability for any errors or omissions. Quilter Cheviot Limited is registered in England with number , registered office at St Helen s, 1 Undershaft, London EC3A 8BB. Quilter Cheviot Limited is a member of the London Stock Exchange and authorised and regulated by the UK Financial Conduct Authority. January

20 CONTACT US QuILter cheviot one kingsway London Wc2B 6an contact William Buckhurst t: +44 (0) e: other QuILter cheviot offices: Belfast t: +44 (0) Birmingham t: +44 (0) Bristol t: +44 (0) dublin t: edinburgh t: +44 (0) Glasgow t: +44 (0) Jersey t: +44 (0) Leicester t: +44 (0) Liverpool t: +44 (0) Manchester t: +44 (0) north Wales t: +44 (0) salisbury t: +44 (0) Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest. This document is not intended to constitute financial advice; if you are in any doubt as to its contents you should seek independent financial advice. Quilter Cheviot Limited is registered in England with number , registered office at One Kingsway, London WC2B 6AN. Quilter Cheviot is a member of the London Stock Exchange and authorised and regulated by the UK Financial Conduct Authority. quiltercheviot.com