London & Capital Managed & Income Portfolios November 2015
Who we are About the Group A leading firm of investment advisers and asset managers, with an international client base, the Company provides private individuals, family offices, institutional investors, intermediaries and charities from across the globe with expert advice on offshore and onshore investment strategies. Operating with a boutique culture, London & Capital places a strong emphasis on capital preservation and the delivery of a tailored client service. Areas of Expertise US Family Office Private Investment Office Institutional International Wealth and Immigration Adviser Solutions UK Wealth Asia Real Estate Our recent awards Pau Morilla-Giner, listed in the Financial News Top 40 Under 40 Award 1
2 International client base
Areas of Expertise Adviser Solutions Institutional Professionals Private Investment Office International Wealth & Immigration US Family Office Captives UK Wealth Property Charities 3
Platforms available Aegon Ascentric Zurich Aviva True Potential Fusion Transact Novia Standard Life Praemium Nucleus 4
Strategic Asset Allocation - 2015 The London & Capital Managed Portfolios are 7 risk-graded portfolios that are designed to meet a wide range of clients risk appetites. Each portfolio is carefully constructed to spread risk by investing in various asset classes including equities, bonds, commodities, absolute return funds, property and cash. DT 3 DT 4 DT 4 DT 5 DT 6 DT 7 DT 8 5 DT = Distribution Technology Risk Rating
Tactical Allocations Version 21 5% 27% 5% 5% 5% 33.5% 44% 50% 28% 59% 9% 48% 13.5% 37.5% 13.5% 14.5% 2.5% 17.5% 5% 5% 5% 10% 7.5% 60.5% 67.5% 5% 82.5% 12.5% 14.5% 5% 2.5% 6
London & Capital 7 Risk Graded Portfolios Delivered Returns - 2014 MP4 MP5 MP6 MP7 MP8 MP9 MP10 Expected Return 5.50% 6.00% 6.50% 7.00% 8.00% 10.00% 11.00% Expected volatility 6.00% 7.00% 8.00% 10.00% 13.00% 16.00% 19.00% Min Expected Return* -0.50% -1.00% -1.50% -3.00% -5.00% -6.00% -8.00% Max Expected Return* 11.50% 13.00% 14.50% 17.00% 21.00% 26.00% 30.00% 35% 30% 25% Min Expected Return* Expected Return Max Expected Return* Actual return 20% 15% 10% 5% 3.8% 5.5% 6.0% 6.5% 7.0% 5.2% 6.0% 4.7% 7.2% 8.0% 7.9% 10.0% 9.5% 11.0% 0% -5% -10% 4 5 6 7 8 9 10 *2/3 years assuming a normal distribution. 7
Example of Average Tactical Asset Allocation Cash Property Misc Hedge Funds Commodities Equities Bonds % 100 90 80 AUG 2008 Northern Rock reports losses of 585m for 1 st 6 mths of 2008 OCT 2008 Mervyn King hints at fresh wave of interest rate cuts 70 60 MAY 2009 50 40 30 20 JULY 2008 Oil reaches a high of above $145/barrel SEPT 2008 Lehman files for bankruptcy Merrill taken over by BOA MARCH 2009 UK - BOE announces 75bn QE plan US - Fed announces $1tn QE plan 10 0 Source: London & Capital. Cash levels shown are reduced by the implied option and futures market exposures. Average tactical decisions represent short-term asset allocation decisions made by London & Capital are based on London & Capital s model portfolio of an allocation to 1/3 Global Conservative Fund, 1/3 Global Balanced Fund and 1/3 Global Growth Fund 8
Back tested data during the Financial Crisis Based on back testing of funds held within Managed Portfolio 5 as at the 1st January 2010 (i.e. No fund switches considered) A Managed Portfolio 5 assuming asset allocation changes following London & Capital s macro view. Instigating changes in July 08 and March 09 in line with changes adopted across London & Capital s other portfolios B Managed Portfolio 5 holdings ignoring London & Capital s tactical approach C A passive investment approach (MSCI THE WORLD INDEX GTR) 9
Asset Allocation changes over time Version 21 The charts below represent the tactical allocation changes of the Managed Portfolios away from their strategic long term weighting. Since inception in January 2010, these changes have been implemented either to protect the Portfolio by moving temporarily into cash, or investing back into the market to gain on the upside. Equities Bonds Commodities Absolute Return Funds Cash & Cash Funds Property Managed Portfolio 4 100% 80% 60% 40% 20% 0% Managed Portfolio 5 100% 80% 60% 40% 20% 0% Managed Portfolio 6 100% 80% 60% 40% 20% 0% Managed Portfolio 7 100% 80% 60% 40% 20% 0% 10
Asset Allocation changes over time Version 21 Managed Portfolio 8 108% 96% 84% 72% 60% 48% 36% 24% 12% 0% Managed Portfolio 9 100% 80% 60% 40% 20% 0% Managed Portfolio 10 100% 80% 60% 40% 20% 0% 11
Managed Portfolios Performance November 2015 PORTFOLIO 3 MTHS 6 MTHS 12 MTHS 3 YRS YTD SINCE INCEPTION VOLATILITY SHARPE RATIO % +VE MTHS % -VE MTHS 4 1.40-1.98 0.97 9.79 1.39 24.72 3.98 0.78 63.38 36.62 5 1.87-1.91 1.52 13.03 1.89 29.58 5.09 0.74 61.97 38.03 6 2.48-1.97 2.47 15.64 2.97 32.27 5.97 0.69 61.97 38.03 7 2.92-1.83 3.08 19.53 3.56 36.16 6.82 0.68 63.38 36.62 8 3.49-1.73 4.15 24.73 4.66 41.05 7.44 0.71 63.38 36.62 9 3.62-1.99 4.39 27.49 4.99 43.48 8.01 0.70 63.38 36.62 10 4.26-2.10 5.19 31.45 5.83 47.89 8.66 0.71 63.38 36.62 INDEX 3 MTHS 6 MTHS 12 MTHS 3 YRS YTD SINCE INCEPTION VOLATILITY SHARPE RATIO % +VE MTHS % -VE MTHS FTSE100 2.50-7.29-1.88 20.71 0.40 45.40 12.54 0.47 56.34 43.66 MSCI All World 5.21-3.95 1.32 38.69 3.04 65.59 11.66 0.71 63.38 36.62 Japan 3.85-3.93 12.01 49.91 13.25 53.40 12.72 0.54 63.38 36.62 Emerging Markets 1.92-16.37-13.74-7.28-9.82 2.08 15.52-0.02 59.15 40.85 UK Gilts 0-5Yrs 0.53 0.71 1.44 3.47 1.11 13.31 1.32 1.11 57.75 42.25 UK Gilts 10-15Yrs 1.43 1.63 3.88 10.15 1.95 53.95 12.96 0.53 53.52 46.48 Commodities -8.98-18.40-25.38-39.38-19.44-37.18 12.96-0.63 67.61 32.39 Hedge Funds 0.68-3.27 0.72 11.46 1.21 10.39 7.36 0.14 64.79 35.21 Cash 0.15 0.29 0.57 1.63 0.52 4.06 0.05 0.00 46.48 53.52 12 Source: Financial Express. Since Inception figures are from 1st Jan 2010. Indices are expressed in total returns and in Sterling terms.. Portfolio annualised standard deviation of monthly returns since inception
Income Portfolios Performance November 2015 PORTFOLIO 3 MTHS 6 MTHS 12 MTHS 3 YRS YTD SINCE INCEPTION VOLATILITY SHARPE RATIO % +ve MONTHS % -ve MONTHS Cautious Income* 1.00-1.51 2.01 10.33 2.24 19.88 4.03 1.03 71.74 28.26 Income 1.88-1.69 2.52 12.74 2.84 23.28 5.27 0.77 62.96 37.04 Higher Income 3.30-1.92 3.32 16.65 3.77 25.94 7.21 0.63 64.81 35.19 INDEX 3 MTHS 6 MTHS 12 MTHS 3 YRS YTD SINCE INCEPTION VOLATILITY SHARPE RATIO* % +VE MTHS % -VE MTHS FTSE100 2.50-7.29-1.88 20.71 0.40 25.20 11.89 0.44 59.26 40.74 MSCI World 5.21-3.95 1.32 38.69 3.04 40.63 10.98 0.78 64.81 35.19 Japan 3.85-3.93 12.01 49.91 13.25 44.18 12.18 0.76 62.96 37.04 Emerging Markets 1.92-16.37-13.74-7.28-9.82-14.70 15.29-0.32 59.26 40.74 UK Gilts 0-5Yrs 0.53 0.71 1.44 3.47 1.11 8.10 1.27 1.01 61.11 38.89 UK Gilts 10-15Yrs 1.43 1.63 3.88 10.15 1.95 36.01 7.48 1.01 51.85 48.15 Commodities -8.98-18.40-25.38-39.38-19.44-46.66 11.87-1.34 62.96 37.04 Cash 0.15 0.29 0.57 1.63 0.52 3.02 0.06 0.00 64.81 35.19 Source: Financial express. Portfolio annualised standard deviation of monthly returns since inception. Since Inception figures are from 31st May 2011. Indices are expressed in total returns and in Sterling terms. *Inception for the Cautious Portfolio was 1 Feb 2012. 13
Current Yields on UK Income Portfolios Contributions to Yield FUND SEDOL ISIN BLOOMBERG TICKER Weight Weight (Cautious (Income Income) Portfolio) Weight (Higher Income) Current Yield Cautious Income Income Portfolio Higher Income NEWTON GLOBAL HIGHER I-I-W-A B8BQG48 GB00B8BQG486 NWGHIWA 0.0% 5.7% 15.5% 3.7% 0.00% 0.21% 0.57% FIDELITY-ENHANCED INCOME-WIN B87HPZ9 GB00B87HPZ94 FIENIWI 5.3% 10.4% 15.4% 6.3% 0.33% 0.65% 0.96% THREADNEEDLE UK EQ INC-RZI B8169Q1 GB00B8169Q14 THUIZNI 5.3% 7.9% 11.3% 4.2% 0.23% 0.33% 0.48% JUPITER INCOME-II B6QR255 GB00B6QR2553 JUPINII 5.1% 7.6% 14.0% 3.7% 0.19% 0.28% 0.52% KAMES HIGH YIELD BOND-B-INC B1N9DY5 GB00B1N9DY51 AEGHYBI 6.6% 9.3% 12.8% 4.7% 0.31% 0.44% 0.60% THREADNEEDLE HI YLD BD-ZNI B7SGDT8 GB00B7SGDT88 THHYZNI 7.0% 11.8% 15.5% 4.7% 0.33% 0.56% 0.73% ROYAL LONDON CORP BOND-M INC B6XZQT4 GB00B6XZQT43 RLCOBMI 12.6% 9.3% 3.1% 3.7% 0.46% 0.34% 0.11% LEGAL & GENERAL-DYN BND-I IN B1TWMY1 GB00B1TWMY10 LGDNBII 13.5% 8.6% 0.0% 4.2% 0.57% 0.36% 0.00% SCHRODER STRATEGIC CREDIT-LI B11DP09 GB00B11DP098 CZSTBII 14.7% 9.7% 5.7% 4.1% 0.60% 0.40% 0.23% ARTEMIS HIGH INCOME-I INC B2PLJN7 GB00B2PLJN71 PEMHIII 13.8% 8.8% 0.0% 3.4% 0.47% 0.30% 0.00% HENDERSON PREF & BOND-I-INC 0765172 GB0007651721 HENPBII 14.2% 9.0% 4.9% 3.4% 0.48% 0.31% 0.17% UK Cash Indices LIBOR Total Return UKC0TR03 Index 1.9% 1.9% 1.8% 0.0% 0.00% 0.00% 0.00% Weighted Yield 3.96% 4.18% 4.38% Source: London & Capital, Bloomberg. For professional advisers use only. Current Yields are a snap shot as at as at 03/12/15 14
Portfolio Charges Version 21 The fund charges shown below are ordinarily reflective of the fund charges across most Wrap/Platforms and can be used as a guide only. The actual underlying fund charges can be accessed from each Wrap/Platforms system when undertaking illustrations or placing business. The underlying fund charges are calculated in accordance with the relative weighting of each fund within each portfolio. Managed Portfolios Indicative Fund Charge L&C Charge (%) excl. VAT Wrap Charge (%) (Circa.) Adviser Fee Total* Model Portfolio 4.21 0.70 0.25 Model Portfolio 5.21 0.71 0.25 Model Portfolio 6.21 0.74 0.25 Model Portfolio 7.21 0.75 0.25 Model Portfolio 8.21 0.74 0.25 Model Portfolio 9.21 0.79 0.25 Model Portfolio 10.21 0.75 0.25 Income Portfolios Indicative Fund Charge L&C Charge (%) excl. VAT Wrap Charge (%) (Circa.) Adviser Fee Total Cautious Portfolio v4 0.68 0.25 Income Portfolio v4 0.73 0.25 Higher Income Portfolio v4 0.80 0.25 Source: London & Capital. All charges stated above are subject to change. *Excluding adviser charge. 15
London & Capital Managed Portfolio Fund Selection Version 21 Asset Class Fund Name 4 5 6 7 8 9 10 Global Eq - - - - - - - Newton Global Higher Income W Fund Acc 8.0 10.0 10.0 10.0 10.0 10.0 10.0 UK Eq Royal London UK All Share Tracker Fund Acc 7.0 7.0 7.0 7.0 7.0 4.0 5.0 Threadneedle UK Equity Income Z Class Acc 3.5 5.0 6.5 7.0 8.0 6.0 6.0 Rathbone Income I Fund Acc 3.5 4.5 7.0 7.5 8.0 8.0 8.0 Old Mutual UK Smaller Companies Fund R Acc - - - - 2.5 5.0 6.0 US Eq Vanguard US Equity Index Fund Acc - - - - 4.0 4.5 10.0 Eur Eq JPM US Equity Income C Fund Acc (NOT HEDGED) 5.0 7.0 9.0 10.0 10.0 10.0 10.0 JPM Europe Dynamic (ex UK) Hedged C Fund Acc - - 2.5 4.0 5.5 6.0 8.0 Japanese Eq Schroder Tokyo Hedged Z Fund Acc - - 2.0 2.0 2.5 3.0 4.0 AsiaxJ/EM Eq First State Asia Pacific Leaders B Fund Acc - - - 2.5 3.0 6.0 8.0 EM Eq Somerset Emerging Dividend Growth Fund Acc - - - - - 5.0 7.5 Property - - L&G UK Property Feeder I Acc - - - 2.5 2.5 5.0 5.0 Abs Ret Aberdeen Absolute Return Bond Fund D Acc - - - - - - - Kames UK Equity Absolute Return B Fund Acc 6.5 6.0 6.0 5.0 4.5 2.5 2.5 EM Debt HY Debt Global Agg B Cash Standard Life Inv Global Absolute Return Strategies Platform 1 Acc 2.5 7.5 7.5 9.5 10.0 10.0 5.0 Aberdeen Emerging Markets Bond I Fund Acc - - 2.5 2.5 2.5 3.0 - Kames High Yield Bond B Acc 6.0 6.0 5.0 5.0 5.0 4.5 - JPM Global High Yield Bond Fund C Net Acc 4.0 4.0 2.5 - - - - Artemis High Income Fund Class I Inc 7.5 5.5 4.0 - - - Legal & General Dynamic Bond I Trust Acc - - - - - - - Henderson Preference & Bond I Fund Acc 7.5 5.0 5.0 5.0 2.5 - - Fidelity Strategic Corp Bond Fund 7.5 7.5 4.5 3.5 - - - Jupiter Strategic Bond Fund 7.0 5.0 3.0 3.5 - - - GLG Strategic Bond 5.0 3.5 3.0 3.5 2.5 2.5 - Newton Global Dynamic Bond Fund Institutional W Net Acc 7.0 5.0 3.0 - - - - M&G Optimal Income Fund I Acc GBP 7.5 6.5 5.0 5.0 5.0 - - M&G Short Dated Corporate Bond I GBP - - - - - - - 5.0 5.0 5.0 5.0 5.0 5.0 5.0 16
Reasons to Invest COST: 25bps +VAT (most compelling in the market) MINIMUM INVESTMENT: 1,000 accessible for ALL clients DE-RISK: Ability to move temporarily 100% into cash in volatile markets* SERVICE: Local Financial Advisers support, regular investment communication, clearly defined results DISCRETIONARY No writing to clients for consent to switch MONITORING: Managed daily with full team of Portfolio Managers and Specialist Research Analysts CONTROL: Client details NOT shared with London & Capital, you retain client control FLEXIBILITY: If we fail to deliver on what is agreed at the outset, we make it easy for you to move DFM provider at no cost GROWTH: Seven risk-graded Portfolios to suit all risk appetites INCOME: Three Income Portfolios giving choice to the investor *not available via Skandia Platform 17
Adviser Solutions contact details Carole Hunter, Business Development Manager The North Mob +44(0) 7946 440 492 carole.hunter@londonandcapital.com Claire Wardman, Sales Support The North +44 (0)11 3261 0506 claire.wardman@londonandcapital.com Richard Leigh, Managing Director richard.leigh@londonandcapital.com Emilia Gosling, Personal Assistant +44(0) 20 7396 3200 emilia.gosling@londonandcapital.com Sally Heavens, Sales Support South West +44(0)1793 703 768 sally.heavens@londonandcapital.com Esther Kendall, Marketing Manager +44(0)20 7396 3288 esther.kendall@londonandcapital.com Sean Boyle, Senior Sales Support South East +44 (0)20 7396 3356 sean.boyle@londonandcapital.com Jackson Franks, Sales Support South East +44(0) 20 7396 3209 Jackson.franks@londonandcapital.com 18
Disclaimer Source: London & Capital unless otherwise stated. Issued by London and Capital Asset Management (LCAM - 143286), 7 Triton Square, Regent s Place, London, NW1 3HG which is authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade Canary Wharf London E14 5HS. The data and information is provided for information and discussion purposes only. The document is not an invitation or solicitation to subscribe to any investment. Past performance should not be seen as an indication of future performance, the value of and income from investments can go down as well as up and an investor may not get back the amount originally invested. The performance shown represents performance of the London & Capital Managed Portfolios that are periodically restructured and rebalanced based on the impact of economic and market factors that influence London & Capital Asset Management s decision-making on asset allocation. The Managed Portfolios are applied to client accounts by the platform provider but it may take some time for the client accounts to mirror the model portfolios. It is for this reason that client accounts may not have achieved exactly the same returns as the Managed Portfolios. The performance of the Managed Portfolios is based on estimated performance of the investments included in the portfolios. The Managed Portfolios returns are net of AMC and DFM fees but do not take into account the platform provider s charges or London & Capital s charges. The information contained in the presentation does not apply to clients who are invested via Skandia. 19
Thank you