Who s Better: Red or Blue?

Transcription

1 Performance Considerations For Wealth Advisers Who s Better: Red or Blue? Stephen McMahon Director Research Jersey February 2014

2 Agenda Recap of Peer Group Performance Recap of Investment Styles Analysing Performance: Red vs Blue Explore Implications for: Suitability Performance Analysis Expectations 2

3 The world is full of choice... 3 ARC collates information and works with all investment managers ARC does not operate a preferred manager list

4 Peer Group Performance Performance to 30 September 2013 ARC Private Client Indices ( PCI ) are available at no cost from 4

5 Style Assessment RED United BLUE City 5

6 Percentage Growth Red vs Blue United vs City Cumulative Performance / / / / Years to 12/ /2013 United City LIBID GBP 1 Month 6

7 Percentage Growth United vs Benchmark & Peer Group Cumulative Performance Cumulative Performance / / / / Years to 12/ / / / / / Years to 12/ /2013 United FTSE APCIMS SM Balanced TR United PCI Steady Growth GBP Year 3 Years 5 Years United United Bench

8 Percentage Growth City vs Benchmark & Peer Group Cumulative Performance Cumulative Performance / / / / Years to 12/ / / / / / Years to 12/ /2013 City Benchmark City PCI Balanced Asset GBP Year 3 Years 5 Years City City Bench

9 Red vs Blue The Numbers United - Quartile Performance For The 36 Months Ended Q Q Q Q Q Q nd 1 st 1 st 4 th 4 th The ARC Portfolio Peer Group Rating is based on the performance of the portfolio versus the peer group over a three year rolling period. The graphic shows which quartile the portfolio was placed in for the last six quarter ends versus the ARC GBP Steady Growth PCI universe of discretionary investment managers. City - Quartile Performance For The 36 Months Ended Q Q Q Q Q Q nd 2 nd 3 rd 3 rd 3 rd 3 rd 1 st The ARC Portfolio Peer Group Rating is based on the performance of the portfolio versus the peer group over a three year rolling period. The graphic shows which quartile the portfolio was placed in for the last six quarter ends versus the ARC GBP Balanced Asset PCI universe of discretionary investment managers. 9

10 Future Expectations Past performance should not be seen as a guide to future performance History never repeats, but it rhymes Mark Twain We know: PCI Manager performance over 10 years (negative and positive periods) Manager Style Due diligence documents what, if anything, has changed Asset class expectations Risk profile probably has a larger impact on portfolio performance than manager skill 10

11 Translating Information into Knowledge Tel: +44 (0) Tel: +44 (0) Asset Risk Consultants Limited (Company no: 30293) is licensed by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended ("the POI Law"). Asset Risk Consultants (Jersey) Limited (Company no: ) is regulated by the Jersey Financial Services Commission. 11

12 APPENDICES 12

13 Quilter Cheviot PCI Results 13

14 Quilter Cheviot PCI Results 14

15 Quilter Cheviot PCI Results 15

16 Quilter Cheviot PCI Results 16

17 Quilter Cheviot PCI Results Quilter Cheviot Sterling Balanced Asset PCI 17

18 Quilter Cheviot PCI Results Quilter Cheviot Sterling Balanced Asset PCI 18

19 Disclaimer This presentation was produced by Asset Risk Consultants ( ARC ). This presentation is for the use of intended recipients and may not be reproduced (in whole or in part) or delivered or transmitted to any other person without the prior written consent of ARC. This presentation is neither an offer nor a solicitation to buy or sell any investment referred to in this document. By accepting this document you agree to be bound by the foregoing limitations. Any advice or recommendation rendered by us to you or the results of any researches carried out on your behalf is provided solely for the purpose of this engagement and for your benefit. ARC does not accept any liability whatsoever for any direct or consequential loss arising from any use of material contained in this presentation. All estimates and opinions included in this presentation constitute our judgements as of the date of this presentation. The views expressed in conjunction with this presentation are those of the contributor at the time of the presentation. Past performance should not be seen as an indication of future performance. The value of investments and the income derived from them can go down as well as up and an investor may not get back the amount invested and may be affected by fluctuations in markets and exchange rates. The price history utilised in the analysis was supplied by Lipper, a Thomson Reuters Company and other data sources. All reasonable precautions have been taken to ensure the accuracy of the information provided but no assurances or warranties are given. Asset Risk Consultants Limited (Company no: 30293) is licensed by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended ("the POI Law"). Asset Risk Consultants (Jersey) Limited (Company no: ) is regulated by the Jersey Financial Services Commission. Copyright Asset Risk Consultants