Short report For the period ended 31 Dec 2015

Transcription

1 Short report For the period ended 31 Dec 2015

2 Short reports Architas Diversified Global Income Fund For the period ended 31 Dec 2015 Investment objective The aim of the Fund is to provide you with an income, together with capital growth, over the medium to long term. Investment policy The Fund will seek to achieve its aim mainly by buying units or shares in other funds ( underlying funds ) including funds which are traded on stock exchanges (investment trusts and exchange traded funds). Underlying funds are selected principally on the basis of our assessment of the consistency of their income and overall returns, the risks related to their investment strategies, the strength of their investment processes and the stability of their portfolio management teams. The underlying funds may invest in a range of financial instruments including shares, tradable debt (bonds) issued by companies, governments and other institutions, some of which can easily be converted into cash (money market instruments), freely transferrable 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), or in alternative asset classes, such as infrastructure. While the Fund will mostly invest in other funds, when there are specific benefits in doing so, it may also invest directly in the financial instruments mentioned above. Investment in derivatives may be used to reduce risk or costs in the Fund, or to generate additional income or capital in line with the risk profile of the Fund. Ex-dividend 31 Dec, 31 Mar, 30 Jun, 30 Sep Distribution date 28/29 Feb, 31 May, 31 Aug, 30 Nov Risk and reward profile Lower risk Potentially lower reward Higher risk Potentially higher reward The risk and reward category may shift over time and is not guaranteed. 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 4 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 4 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 events during the period There were no significant events during the period ended 31 December Report and accounts The purpose of sending this Short Report for the sub-fund is to present you with a summary of how the sub-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 Global Solutions ICVC, which includes this sub-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 Global Solutions ICVC which is an open ended investment company authorised by the Financial Conduct Authority, and is a NURS (Non-UCITS Retail Scheme). Performance In the period ended 31 December 2015, the Architas Diversified Global Income Fund dropped 2.37%. (Source: Morningstar Direct, January 2016.) 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.

3 Short reports Market review Income assets had mixed returns over the period with Property and Equity Income delivering positive performances in general. However, many fixed income assets struggled to return a positive performance. Government bonds, corporate bonds and high yield bonds had low to negative returns as these markets made little headway over the period. The start of the period provided positive returns in general but after a few months market volatility spiked as markets worried about Greece s unstructured debt and the possibility and the global ramifications of Greece exiting the European Union. In addition China s stock market began to sell off and the sharp movements in currency markets continued. Negative news spilled into the third quarter and equity markets suffered one of their worst quarterly performances; investors moved into high quality government corporate bonds for security during the market turmoil. In the fourth quarter market sentiment improved and stock markets in developed countries rebounded strongly, and even the struggling Asian and emerging markets made positive returns. Discrete annual performance* % (2.37) Fund review US high yield bonds had a very difficult period as there is so much exposure to energy market which has been suffering due to the falling oil prices as such performance with the AXA WF US High Yield Bonds Fund dropping 7.9% and the Vanguard UK Long Duration Gilt Index Fund which dropped 0.4%. Over the same period the BlackRock Global Enhanced Equity Yield Fund weighed also weighed on returns. Most constructive to returns since inception were holdings in MedicX which rose 15.3%; this fund provides returns from investments in healthcare infrastructure which builds primary healthcare properties leased to Doctors and the NHS. The GCP Infrastructure Investment Fund also performed well over the period rising 8.0% and sit in the Unclassified sector of the IA. We made a number of adjustments to the portfolio over the period. In May we initiated a position in the Vanguard Global Bond Index (sterling currency hedged) Fund to diversify the fund s bond exposure. In August we sold Assura Group PLC to take profits on property healthcare investment after a strong run. In November added two funds to manage the funds exposure to currencies adding the BlackRock Continental (euro currency hedge) Fund and purchased the Neuberger Berman Emerging Market Debt Hard (sterling hedged) Fund. Finally in December we sold out of BlackRock Continental European Fund Mar 15 to 31 Dec 15 Architas Diversified Global Income Fund 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 A accumulation (net) share class. Performance figures for the other share classes are available by contacting Architas. * Fund launched on 3 March Net asset value record* Share class Net asset value (pence per share) 31/12/2015 Net asset value (pence per share) 31/12/2014 A accumulation (net)^ N/A A income (net)^ N/A * Valued at bid market value. ^ Share class launched 3 March 2015.

4 Short reports Top ten holdings As at 31 Dec 2015 BlackRock Global Enhanced Equity Yield Fund 14.24% Schroder Global Dividend Maximizer 9.50% BlackRock Continental European Income Fund 9.44% Royal London Sterling Extra Yield Bond Fund 9.42% AXA US High Yield Bonds Fund 8.95% Vanguard UK Investment Grade Bond Index Fund 7.09% Neuberger Berman Emerging Market Debt Hard Currency Fund 6.75% Fidelity Enhanced Income Fund 5.24% Vanguard Global Bond Index Fund 4.69% International Public Partnerships 3.17% Portfolio breakdown As at 31 Dec 2015 l Global equities 24.68% l High yield bonds 19.09% l Alternatives 12.95% l Europe excluding UK equities 9.81% l Global emerging debt 8.46% l Global bonds 7.38% l UK corporate bonds 7.37% l UK equities 5.45% l UK gilts 2.43% l Property 2.38%

5 Short reports Ongoing charges figure(s) Share class Administrative expenses Underlying fund expenses[a] Architas contribution[b] Total OCF 31/12/2015 A accumulation (net)[c] 1.75% 0.52% (0.87)% 1.40% A income (net)[c] 1.89% 0.52% (1.01)% 1.40% [a] Underlying Fund Expenses are in relation to your fund holding investments in other collective investment schemes but excludes holdings in investment trusts. [b] Architas currently subsidises the expenses of this fund on a discretionary basis. Architas targets an ongoing charge of 1.40% for the A share classes. This may or may not require Architas to pay a subsidy to the fund. Architas can stop paying these subsidies at any time and the investors in these share classes will be informed prior to this happening. [c] Share class launched 3 March Performance record A accumulation (net)[a] A income (net)[a] Calendar year Net revenue (pence per share) Highest share price (pence)[b] Lowest share price (pence)[b] Net revenue (pence per share) Highest share price (pence)[b] Lowest share price (pence)[b] 2011 N/A N/A N/A N/A N/A N/A 2012 N/A N/A N/A N/A N/A N/A 2013 N/A N/A N/A N/A N/A N/A 2014 N/A N/A N/A N/A N/A N/A [c] N/A N/A N/A N/A [a] From 3 March 2015 (date of launch). [b] Highest and lowest share prices are at mid-market values. [c] Up to 29 February 2016 (the final distribution pay date).

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.