Managers annual short report for the year: 16 September 2013 to 15 September Ignis Managed Portfolio Fund

Transcription

1 Managers annual short report for the year: 16 September 2013 to 15 September 2014 Ignis Managed Portfolio Fund

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3 Introduction to your short report Dear Investor, Welcome to your short report for the 12 months to 15 September As you will be aware, we send you a managers report every six months relating to the Fund you are invested in. The Long Report & Accounts are still available should you wish, and can be obtained by contacting Investor Support on Yours faithfully David Cameron Head of Investor Services & Provider Oversight 1

4 Ignis Managed Portfolio Fund Investment objective To maximise long term capital growth opportunities by investing in other collective investment schemes in any economic sector in any geographic area through investments as permitted from time to time for a non-ucits retail scheme but mainly those funds managed by Ignis Fund Managers Limited. Investment policy Active investment management will be employed to take advantage of changing worldwide economic conditions. In order to maximise returns hedging and borrowing powers will also be utilised as appropriate. Risk profile The Ignis Managed Portfolio Fund is suitable for investors who are interested in obtaining exposure to equity markets through a diversified fund. The investor must have experience with volatile products and be able to accept temporary losses. These Funds are suitable for investors who can afford to set aside the invested capital for at least 5 years. In a widely diversified investor s portfolio, these Funds are suitable as an investment intermixture. 2

5 Fund facts Launch date 1 March 1991 Fund size as at 15 September m Initial charge 5.25% Annual management charge Class A 1.5% Income Accumulation Historic yields* Class A Class A 0.20% 0.20% Sector Mixed Investment 40-85% Shares XD date 16 March & 16 September Distribution payment dates 15 May & 15 November Class A Income Accumulation Ongoing Charges Figure as at 15 September % 1.65% The Ongoing Charges Figure (OCF) shows the operating expenses, annualised, of each unit class as a percentage of average net assets of that class for the preceding 12 months. If you require any further information, please contact Investor Support on *Yield as at 15/09/14. Yields are historic based on the preceding 12 months distributions as a percentage of the mid market unit price, as at the date shown. Yields will vary, do not include any preliminary charges, and investors may be subject to tax on distributions. Risk and reward profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The highlighted area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk The Fund is ranked at 5 because funds of this type have experienced medium to high rises and falls in value in the past. The above figure applies to the following unit classes: Class A Income Class A Accumulation For more information on the Risk and Reward profiles of our funds, please refer to the most up to date relevant Fund and Unit Class Key Investor Information Documents (KIIDs). These are available online at 3

6 Summary of Fund performance Unit price Year to 31 December Income units Lowest redemption price (pence per unit) Income units Highest issue price (pence per unit) Accumulation units Lowest redemption price (pence per unit) Accumulation units Highest issue price (pence per unit) Jan to 15 Sep Distribution record Year to 31 December Income units Net distribution pence per unit (paid during the period) Accumulation units Net distribution pence per unit (paid during the period) Jan to 15 Sep Past performance is not a guide to future performance. The value of units can fall as well as rise and is not guaranteed. You might not get back the full amount invested. 4

7 Summary of distribution A final distribution of pence per unit will be paid to income unitholders and pence per unit credited to accumulation unitholders on 15 November Net asset value Net Asset Value as at 15 September 2014 Net Asset Value as at 15 September 2013 Net Asset Value % change Class A Income 92.70p per unit 87.64p per unit 5.77% Class A Accumulation p per unit p per unit 5.96% Note: Figures are calculated internally for accounting purposes (assets are valued at bid at 12pm based on holdings at close the same day). Past performance record Sep % growth Sep % growth Sep % growth Sep % growth Sep % growth Ignis Managed Portfolio Fund Sector average Source: Lipper, bid to bid, net income reinvested to 15 September for each year. Past performance is not a guide to future performance. The value of units can fall as well as rise and is not guaranteed. You might not get back the full amount invested. Sectoral spread of investments as at 15 September 2014 Sector % Global fixed interest 20.7 Money Markets 17.5 UK equities 15.2 US equities 14.7 European equities 12.4 UK fixed interest 6.3 Global equities 6.0 Far East equites 5.9 Others 0.7 Cash 0.6 Sectoral spread of investments as at 15 September 2013 Sector % UK equities 24.4 Global fixed interest 20.8 US equities 12.4 European equities 11.1 UK fixed interest 9.3 Money Markets 8.6 Far East equities 6.4 Global equities 5.4 Others 0.8 Cash 0.8 Source: Internal 5

8 Top ten holdings Holding % of Fund value as at 15 Sep 2014 Holding % of Fund value as at 15 Sep 2013 Sterling Liquidity Fund 17.5 Absolute Return Government Bond Fund 12.4 American Growth Fund 14.7 American Growth Fund 12.4 Balanced Growth Fund 12.5 Balanced Growth Fund 11.6 Absolute Return Government Bond Fund 10.5 Corporate Bond Fund 9.3 Absolute Return Credit Fund 10.1 Sterling Liquidity Fund 8.6 European Growth Fund 6.8 Absolute Return Credit Fund 8.4 Corporate Bond Fund 6.3 Pacific Growth Fund 6.4 Global Growth Fund 6.0 European Growth Fund 6.2 European Smaller Companies Fund 5.6 Global Growth Fund 5.4 Pacific Growth Fund 5.3 UK Focus Fund 5.3 6

9 Fund manager s comment The review period was, once again, dominated by the words and actions of central banks on both sides of the Atlantic. After surprising the market in September 2013 by deciding to delay its so-called tapering process, the Federal Reserve (the Fed) began to reduce the scope of its stimulus programme in December, earlier than the revised expectations of most participants, creating market volatility. The fear of less money entering the global economy had more of a negative impact on emerging markets, which started to struggle into the year-end and unsettled investors at the end of January. Despite those concerns, though, the market rally resumed as investors grew confident that global central banks would remain supportive. Meanwhile, continued improvement in the US and UK economies supported equity prices as the delicate balance between growth and monetary stimulus was maintained. At odds with those two regions, Europe s continued sluggish recovery pushed the European Central Bank to introduce further supportive measures in the spring and again at the end of the review period. This helped fuel investors risk appetites and prices rose, in some cases to record highs. A rise in global tensions (chiefly in Ukraine, Gaza and Iraq) did little to dent investor confidence, although it created increased market volatility. The Fund underperformed its sector average over the period. Fund selection was the main driver of performance, as we took only a few small asset allocation positions during the year in review. While the first half of the year saw good performance driven in part by our small companies funds (Ignis European Smaller Companies and Ignis Smaller Companies), those suffered later in the year relative to the wider market as the outperformance of small companies came to a halt. Other notable performers included the Ignis Corporate Bond Fund and the Ignis Pacific Growth Fund, both outperforming their benchmarks over the period, while the Ignis Balanced Growth Fund and Ignis American Growth Fund struggled to keep up with theirs. In terms of Fund changes, we made a new allocation to the Ignis China Fund in October, financed by a slight reduction in the Ignis Pacific Growth Fund. This gives us some direct exposure to the Chinese domestic story and allows us to control our allocation to the country. Also, both the Ignis UK Focus and Ignis UK Enhanced Income Funds closed in April, leading us to replace that lost exposure with alternative products whose value is based on the FTSE 100 index. Finally, we should note that, following the acquisition of Ignis Asset Management by Standard Life Investments, the management of the underlying Ignis equity funds was transferred to Standard Life Investments on 26 August. In terms of asset allocation, we reduced our equity exposure at the end of February to a slight underweight after the good start of the year, and increased our bond allocation. After a positive performance, we took profits on this trade in May and reverted back to a neutral positioning. Over the period under review, it has certainly proved difficult to generate positive returns. We expect this situation to persist over the foreseeable future. However, if history is any guide, those periods of extreme price movements tend to end abruptly. At the very least, prices will go through further changes before becoming more settled again. The timing of those changes is hard to predict and, as such, we feel that we should persist with our broadly neutral asset allocation. Over the review period, the Ignis Managed Portfolio Fund returned 5.9% compared to a return of 6.7% by its sector average. (Source: Lipper, bid to bid, net income reinvested for 12 months to 15/09/14). 7

10 Availability of long report & accounts If you wish to receive a copy of the annual and half yearly Long Report & Accounts for the Ignis Managed Portfolio Fund then please contact Investor Support on They are free of charge. Other information The information in this report is designed to enable unitholders to make an informed judgement on the activities of the Fund during the period it covers and the results of those activities at the end of the period. For more information about the activities and performance of the Fund during this period and previous periods, please contact Investor Support on Ignis Asset Management is the trading name for companies in the Ignis Asset Management Limited group of companies which includes the unit trust manager Ignis Fund Managers Limited and the investment manager Ignis Investment Services Limited. The Ignis Asset Management Limited group of companies is part of The Standard Life Investments group. Please note on 1 July 2014 global investment manager Standard Life Investments (Holdings) Limited successfully completed the acquisition of Ignis Asset Management from Phoenix Group Holdings. Unit prices and yields appear daily on the Ignis website and the Investment Management Association website Money Laundering If you have not already provided us with the required documentation to prove your identity we may have to freeze or terminate your account, and will not be able to accept any further subscriptions. There may also be a delay when repurchasing your investment. Please note that we will have previously contacted you by post if we do not have all the required documentation on file for your account. Manager Ignis Fund Managers Limited (IFM) 50 Bothwell Street, Glasgow G2 6HR Tel: Registered in Scotland No. SC85610 Member of the Investment Management Association Authorised and regulated by the Financial Conduct Authority. Directors *Appointed with effect 1 July 2014 N K Skeoch* Executive Chairman of IFM and Chief Executive of the Standard Life Investments group; J Aird* Managing Director of IFM; C Clark* Director of IFM and Director of the Standard Life Investments group s Global Client Group; C Fellingham Chief Investment Officer of IFM; R Paris* Director of IFM and Chief Investment Officer of the Standard Life Investments group; C Walklin* Director of IFM and Chief Operating Officer & Finance Director of the Standard Life Investments group. Resigned with effect 1 July 2014 C Samuel C Chene C Bannister J McConville D Watts E Stobart Resigned with effect 30 September 2014 G Hotson Investment Adviser Ignis Investment Services Limited 50 Bothwell Street, Glasgow G2 6HR Registered in Scotland No. SC Authorised and regulated by the Financial Conduct Authority. Trustee Citibank International Plc Registered office: Citigroup Centre Canada Square, Canary Wharf London E14 5LB Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Independent auditors to the Fund PricewaterhouseCoopers LLP 141 Bothwell Street, Glasgow G2 7EQ Registrar and Correspondence address Ignis Fund Managers Limited PO Box 9028 Chelmsford CM99 2WH Authorised Status This Fund is an Authorised Unit Trust scheme under Section 243 of the Financial Services and Markets Act 2000 and is categorised under the Collective Investment Schemes Sourcebook as a UCITS retail fund. 8

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12 Investor Support Call: Telephone calls may be monitored and/or recorded for the purposes of security, internal training, accurate account operation, internal customer monitoring and to improve the quality of service. Please note the Key Investor Information Document (KIID), the Supplementary Information Document (SID) and the Full Prospectus are available free of charge. For a copy, phone Investor Support on Ignis Investment Services Limited does not accept liability for any claims or losses of any nature arising directly or indirectly from use of the data or material in this report. The information supplied is not intended to constitute investment, tax, legal or other advice. Ignis Asset Management is the trading name of the Ignis Asset Management Limited group of companies which includes Ignis Asset Management Limited, *Ignis Investment Services Limited and *Ignis Fund Managers Limited. Issued by Ignis Investment Services Limited. Registered in Scotland No. SC Registered Office: 50 Bothwell Street, Glasgow G2 6HR. *Authorised and regulated by the Financial Conduct Authority. Ignis Asset Management Limited and its subsidiaries are part of the Standard Life Investments group (Standard Life Investments (Holdings) Limited and its subsidiaries). B