THE TRUSTEE MANAGED PORTFOLIO INDICES (TMPI) 31 March 16 - Global - US Dollar PERFORMANCE REPORT
Trustee Managed Portfolio Indices (TMPI) March 16 US Dollar Report Introduction The Trustee Managed Portfolio Indices (TMPI) shows the performance of a peer group of investment portfolios that are managed on a discretionary basis on behalf of persons acting in a fiduciary capacity. The service has been designed to promote transparency of investment performance to enable STEP Members and other Private Client Practitioners to have a common parlance with the investment management industry, which will help to ensure that suitable investment strategies are selected and that performance can be judged objectively. The standard deviation statistics show an annualised measure calculated using three years of quarterly data periods. Where red numbers are shown they are an estimate for the period. Twelve Month Performance Analysis 4.00 2.00 0.00-2.00-4.00-6.00-8.00 -.00-12.00 Cash Benchmark Equity Benchmark Q1-16 - 3 Year Rolling Last Quarter Return Year to Date Return 15 Return 14 Return 3 Year Return Annualised Return Maximum Drawdown Standard Deviation 0.62 0.62-1.64-0.16 1.01 0.34-5.17 3.57-0.26-0.26-0.67 1. 7.63 2.48-7. 6.38-0.94-0.94-1.83 1.77 9.39 3.04 -.35 8.63 About the Trustee Managed Portfolio Indices The Trustee Managed Portfolio Indices (TMPI) are calculated through composite live portfolios, within defined strategic risk categories. Number of TMPI Managers 11 12 TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 2
Trustee Managed Portfolio Indices (TMPI) March 16 US Dollar Report Sixty Month Performance.00 Cash Benchmark.00.00 Equity Benchmark.00 0.00 -.00 Discrete Quarterly Returns Discrete Quarterly Returns Discrete Quarterly Returns Q1 Q2 Q3 Q4 Total 16 0.6 0.6 15 1.2-0.8-3.1 1.0-1.6 14 0.3 0.6-0.5-0.5-0.2 13 1.9-1.7 1.9 2.0 4.2 12 3.7-0.9 1.9 0.5 5.3 Q1 Q2 Q3 Q4 Total 16-0.3-0.3 15 2.0-0.2-5.0 2.7-0.7 14 0.9 2.2-1.8 0.6 1.8 13 3.7-1.3 4.4 3.6.7 12 5.4-2.5 4.3 0.9 8.1 Q1 Q2 Q3 Q4 Total 16-0.9-0.9 15 1.5 0.4-6.9 3.6-1.8 14 0.6 3.5-2.7 0.5 1.8 13 4.8-1.5 6.9 4.9 15.9 12 8.9-3.6 5.9 1.7 12.9 TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 3
Trustee Managed Portfolio Indices (TMPI) March 16 US Dollar Report Annualised Performance vs. Annualised Volatility The chart plots the annualised performance (vertical axis) of the three TMPI and the Cash and Equity benchmarks over the last 36 months, versus the annualised volatility - or risk as measured by standard deviation (horizontal axis). 5.00 4. 4.00 3. 3.00 2. 2.00 1. 1.00 0. 2.00 4.00 6.00 8.00.00 12.00 14.00 Range of Annualised Returns <=-4-4 - -2-2 - 0 0-2 2-4 4-7 7-9 >9 Range of Annualised Returns 45 35 25 15 5 Cash Benchmark Equity Benchmark <=-4-4 - -2-2 - 0 0-2 2-4 4-7 7-9 >9 Maximum Drawdown - 36 Months Range of Annualised Returns 0.00-4.00-8.00 45 35 25 15 5 <=-4-4 - -2-2 - 0 0-2 2-4 4-7 7-9 >9 TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 4
Trustee Managed Portfolio Indices (TMPI) March 16 US Dollar Report Asset Allocation at 31 March 16 Asset Allocation History - 36 Months 26.77 3.64 5.72 12.52 51.36 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 12.01 4.78 6.92 27. 48.68 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 3.08 7.64 5.93 11.14 Allocations less than 2 are not labelled. 72.21 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Equity Cash Alternative Fixed Income Other TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 5
Trustee Managed Portfolio Indices (TMPI) March 16 US Dollar Report Currency Allocation at 31 March 16 Currency Allocation History - 36 Months 3.44 3.65 3.74 4. 2.18 88. 5.48 Mar 13 Mar 14 Mar 15 Mar 16 81.87 Mar 13 Mar 14 Mar 15 Mar 16 6.42 5.91 9.45 Allocations less than 2 are not labelled. 74.43 Mar 13 Mar 14 Mar 15 Mar 16 GBP USD EUR JPY HKD CHF SGD ZAR CAD AUD NZD SEK OTH DKK TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 6
Trustee Managed Portfolio Indices (TMPI) Investment Managers 1788 Capital G. d Esneval guillaume.desneval@1788capital.com ABN AMRO (Guernsey) Limited Stefano Finetti stefano.finetti@gg.abnamro.com Ashburton Investments Timothy Townsend Timothy.Townsend@ashburton.com Azure Wealth LLP Nima Sarikhani nima@azurewealth.com Barclays Wealth and Investment Management Toby Cross toby.cross@barclays.com Bentley Reid George Holmes george.holmes@bentleyreid.co.uk Brewin Dolphin (Channel Islands) Limited Mark Miles mark.miles@brewin.co.uk Brooks Macdonald Asset Management (Intl) Ltd Richard Hughes info-bmi@brooksmacdonald.com C. Hoare & Co Simon Barker Simon.Barker@hoaresbank.co.uk Canaccord Genuity Wealth Management Nigel Cuming nigel.cuming@canaccord.com Capital Generation Partners Charlotte Thorne charlotte.thorne@capgenpartners.com Cazenove Capital Management Euan Dangerfield euan.dangerfield@cazenovecapital.com Close Brothers Asset Management William Ladenburg william.ladenburg@closebrothers.com Coutts & Co. Matthew Spencer matthew.spencer@coutts.com Credit Suisse Peter Webber peter.webber@credit-suisse.com European Investment Management Ltd Nick Jackson nick.jackson@europeanwealth.com Fulcrum Asset Management Jeremy Bedford jeremy.bedford@fulcrumasset.com GAM London Limited Joe McLoughlin (GAM joe.mcloughlin@gam.com Heartwood Investment Management Hugh Tottenham hugh.tottenham@heartwoodgroup.co.uk HSBC Private Bank (C.I) Ltd Nathan Long nathan.long@hsbcpb.com Ingenious Asset Management Craig Wright craig.wright@tilney.co.uk IPS Capital Jonathan Blain jblain@ipscap.com James Hambro & Partners LLP Christopher Macklin cmacklin@jameshambro.com JM Finn Andrew Wimble andrew.wimble@jmfinn.com Kleinwort Benson Andrew Wheeler andrew.wheeler@kleinwortbenson.com MitonOptimal Portfolio Management (CI) Limited Greg Easton greg.e@mitonoptimal.com Nedbank Private Wealth Richie Griffiths richie.griffiths@nedbankprivatewealth.com Odey Wealth Management Sarah T-Kennedy s.thomson-kennedy@odeywealth.com Quartet Investment Managers Colin McInnes cgm@quartet-im.com Quilter Cheviot Duncan Gwyther duncan.gwyther@quiltercheviot.com Rathbone Investment Management Intl Jonathan Giles jonathan.giles@rathbones.com Ravenscroft Investment Management Mark Bousfield mbousfield@ravenscroft.gg RBC Wealth Management Edward Loader edward.loader@rbc.com Rothschild Wealth Management Nick Barran nick.barran@rothschild.com Seven Investment Management Michael Stimpson Michael.Stimpson@7im.co.uk Smith & Williamson Investment Management Nick Richards nick.richards@smith.williamson.co.uk Standard Chartered Bank, Jersey Philip Davidson Philip.Davidson@sc.com Standard Life Wealth - Target Return Jeremy Hippolite Jeremy_hippolite@standardlife.com UBS AG Michael Clarke michael.clarke@ubs.com Veritas Investment Management Caroline Mair cmair@veritasinvestment.co.uk Vestra Wealth LLP Tony Allan tony.allan@vestrawealth.com Waverton Stephen Browne sbrowne@waverton.co.uk TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 7
Glossary Low risk index: Index comprising all portfolios which are viewed to be risk averse, or short-term investors with a likely investment horizon of 3 years and less, exhibiting a standard deviation of <6 with a maximum drawdown of <. Medium risk index: Index comprising all portfolios which are likely to have an investment horizon of between 3 and years, exhibiting a standard deviation of 6- with a maximum drawdown <. High risk index: Index comprising all portfolios which are likely to have a longer term investment horizon i.e. over years, exhibiting a standard deviation of > with a potential maximum drawdown of >. Basis of performance: Performance of discretionary managed portfolios on a net basis i.e. after fees. Investment managers will have the discretion to choose the indices in which their portfolios are represented. They will be entered at the appropriate risk level according to their long term strategic expectations of the risk parameters of their portfolios, without regard to current tactical positioning. Discretionary management: An arrangement where the investment manager is given the authority to have full discretion to make the investment portfolio decisions. The parameters of the arrangement is outlined through agreeing and signing an "investment mandate". Investment mandate: The defined investment strategy i.e. the strategy agreed with the client, usually documented within an investment management agreement. Essentially this defines the strategy which the client has signed up to and to which the investment manager must adhere. Standard deviation: A measure of dispersion of returns. A higher number indicates that historic volatility has been greater hence likely to present an increased risk if suffering a loss. As an example, in ordinary market conditions equity markets will have a higher standard deviation than government bonds. Maximum Drawdown: The largest peak to trough decline suffered between quarterly periods, before recovery to the previous peak. This measure is calculated over a rolling 3 year period within the TMPI reports. Annualised Return: The percentage return of an investment or index shown as the equivalent consistent annual return. For the TMPI reports we also express the overall (3 year) return on an annualised basis to assist understanding and comparability. Strategic: Usually referred to in the context of the long term strategy or view in the investment management industry. For example the strategic asset allocation can be thought of as the neutral asset allocation defined by the investment mandate, with short term changes around this to reflect market views. Tactical: Following on from the above, this is usually referred to with regards to the shorter term positioning of a portfolio relative to near term market expectations i.e. tactical asset allocation. Benchmark: An index which can be used as a comparative measure with which to compare the results of a portfolio. Asset classes: A broad group of securities that exhibit similar characteristics and are subject to most of the same market forces. These are viewed as the building blocks of portfolio construction. Broad asset classes are cash, fixed income, equities and alternatives. There are many sub-asset categories within each class of asset. Asset allocation: This represents the overall positioning of the portfolio across the different asset classes. TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 8
Disclaimer 1. Purpose of the Report and Indices: The Indices and each Report generated for the Trustee Managed Portfolio Indices (the 'TMPI Series') are produced by Enhance MPI Limited ( the Company ) for the members of the Society for Trust and Estate Practitioners ( STEP ). Accordingly no responsibility or duty of care arising out of or in connection with the TMPI Series is owed by STEP and STEP shall not be liable whether in contract, tort, under statute or otherwise for any loss or damage through the use of or reliance on the TMPI Series. 2. The TMPI Series Company is produced and provided by the Company as a free member service intended for information purposes only regarding the past performance and risk characteristics of a portfolio or portfolios and it shall serve no other purpose. Accordingly, and without limitation, the TMPI Series is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. 3. The Company has expressed its own views and opinions in the TMPI Series and these may change. The TMPI Series is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Although every effort has been made by the Company to ensure that the information contained within the Report and on the TMPI Indices is accurate, due to the nature of investment markets it cannot be relied on to assess the 'future' performance of any portfolio or series of Portfolios or Investment House. 4. Information from third parties: In producing the TMPI Reports and Indices, the Company has used certain information which has been supplied to it by third parties. Although the statements of fact and data in each TMPI Report have been obtained from, and are based upon, sources which the Company believes to be reliable, the Company does not guarantee its accuracy. Any such information may be incomplete or condensed. 5. Data: A copy of the data on which each TMPI Report and the Indices are based is either appended to the Report or is available from the Company upon request. The Company shall retain ownership of its methodologies and calculative processes and shall make these available to its clients and third parties at its absolute discretion. 6. Opinions: All opinions included in ant TMPI Report or the Indices constitute the Company's judgement as of the date of each TMPI Report and are subject to change without notice. 7. Use of the Report: All warranties, representations and conditions other than those set out expressly in this or any other agreement between the Company relating to the TMPI Report or Reports or Indices, whether implied or expressed, statutory or otherwise are excluded to the fullest extent permitted by law is entirely at your own risk and neither the Company nor any person acting on its behalf or employees or agents, will be liable or have any responsibility of any kind whether in contract, tort, or otherwise for any loss or damage that you incur resulting from the act or omission of any party involved in making the TMPI Reports or Indices available to you, or from any other cause relating to your access to or use of the TMPI Reports, whether or not the circumstances giving rise to such a cause may have been within the control of the Company. 8. No responsibility can or is accepted for error of fact or opinion. Past Performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. 9. Nothing in these terms of use affects the liability of the Company or STEP for death or personal injury arising from their respective negligence, fraud or fraudulent misrepresentation or any other liability which cannot be excluded or limited under applicable law.. These terms of use shall be governed by and construed in acordance with English Law. TMPI - Global - USD - Q1 16 (ref: 04 May 16 03:25:43) 9