Fiducia Wealth Management Ltd

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The Fiducia Wealth Management Investments Process 2011.

If you have any queries or would like to know more about our services please contact gordon: gordon@fiduciawealth.co.uk or visit our website: www.fiduciawealth.co.uk

The information contained in this presentationr is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The information is based on our understanding of legislation, whether proposed or in force, at the time of writing. Levels, bases and reliefs from taxation may be subject to change.

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Fiducia Wealth Management Ltd

  1. 1. By Gordon Kearney
  2. 2. CONTENTS <ul><li>Our Investment Committee </li></ul><ul><li>Client Risk Profiling </li></ul><ul><li>Investment Process </li></ul><ul><li>Report Process </li></ul><ul><li>Investment Performance </li></ul><ul><li>Summary </li></ul>09/23/11
  3. 3. OUR INVESTMENT COMMITTEE <ul><li>Gordon Kearney BA, IMC, Director, Head of Investment </li></ul><ul><li>Dean Aitchison BSc, IMC, Investment Analyst </li></ul><ul><li>Jack Rawcliffe, BA, Assistant Investment Analyst </li></ul><ul><li>Michael Hughes, CBE, Consultant </li></ul><ul><li>John Millican, Managing Director </li></ul><ul><li>Sarah Travers LLB, Director </li></ul>09/23/11
  4. 4. <ul><li>We have created our investment process by integrating the most comprehensive, powerful and sophisticated systems and software, including: </li></ul><ul><li>Lipper Hindsight and Model Portfolio Manager </li></ul><ul><li>Wrap Platforms – independent electronic platforms which hosts our client accounts </li></ul><ul><li>The leading rating agencies, such as Citywire, OBSR and S&P. </li></ul>09/23/11
  5. 5. THE FIDUCIA CLIENT & INVESTMENT PROCESS
  6. 6. RISK TOLERANCE QUESTIONNAIRE <ul><li>Accurately assesses the degree of risk, with which each client is comfortable with. </li></ul><ul><li>Final scores lie within one of five risk profiles. </li></ul>* BD = Bank deposits 09/23/11 Portfolios Scores < 35 35 – 44 45 – 54 55 – 64 65+ Preferred Portfolio Cautious Prudent Balanced Growth Adventurous Return Expectations* 1-1.5x BD's 1.5-2x BD's 1.5-2x BD's 2-2.5x BD's At least 3 x BD's Sensitivity to Volatility Any fall 10% fall 20% fall 20% fall 33% fall
  7. 7. DRIVERS OF STRATEGIC ASSET ALLOCATION 09/23/11 Strategic Asset Allocation Asset Class Mean Reversion Climate Change Demographic Trends Capital Flows/ Globalisation Impact of Chindia Inflation Interest Rates Productivity Trends Growth Inflation Trade Off
  8. 8. PORTFOLIO CONSTRUCTION <ul><li>Strategic Allocation (medium to long term views) – The overall asset allocation position based on forecasts from leading investment consultants . Controls total portfolio risk and where this risk is taken. </li></ul><ul><li>Tactical Allocation (short to medium term views) – Adjustments made to above allocation given the current market environment and evaluation of risks worth taking now. </li></ul><ul><li>Fund Selection – Decision of which specific funds should go into the portfolio. </li></ul><ul><li>Client Requirements – At any stage client preferences can be included to form a bespoke portfolio. </li></ul>09/23/11 PORTFOLIO Bottom Up Fund Selection
  9. 9. ASSET ALLOCATION DISCIPLINE <ul><li>All asset classes have set risk controlled weightings appropriate for each portfolio. </li></ul><ul><li>Allocations are based on information obtained from: </li></ul><ul><li>In house indicators and analysis. </li></ul><ul><li>Leading sources of independent research including reports, presentations and meetings. </li></ul><ul><li>Economic analysis and views provided by Michael Hughes. </li></ul><ul><li>Asset allocation reviewed monthly by our Investment committee and changes made if necessary. </li></ul>09/23/11
  10. 10. ASSET ALLOCATION 09/23/11 Optimisation Client Allocation Preferences
  11. 11. FUND SELECTION 09/23/11
  12. 12. AN EXAMPLE OF QUANTATIVE RESEARCH FOR A PARTICULAR SECTOR Here the leading funds within the UK Equity Income sector are compared. Investment growth over a number of periods are considered along with the funds standard deviation and yield. 09/23/11
  13. 13. EXAMPLE OF THE LEVEL OF RESEARCH AND MONITORING UNDERTAKEN ON A DAILY BASIS This is one of the Lipper Hindsight screens that the investment team use on a daily basis to monitor the portfolios and their underlying holdings 09/23/11
  14. 14. CONSTANT REGIONAL MONITORING 09/23/11
  15. 15. CONSTANT SECTOR MONITORING Sophisticated in-house developed spreadsheets allow the investment team to monitor asset classes and geographical sectors to highlight sources of positive and negative returns 09/23/11
  16. 16. CONSTANT FUND/ASSET CLASS MONITORING 09/23/11
  17. 17. REPORT FORMULATION AND IMPLEMENTATION <ul><li>An appropriate portfolio is identified based on the client’s risk profile </li></ul><ul><li>Relevant performance charts and analysis are compiled and included </li></ul><ul><li>Total charges are calculated and identified. </li></ul><ul><li>Positions are not taken on client’s behalf until we have secured their authority </li></ul>09/23/11
  18. 18. SIX MONTH REVIEW <ul><li>Investment portfolios are automatically reviewed </li></ul><ul><li>Tests are conducted to determine if the portfolios need to be rebalanced to keep within the original Asset Allocation </li></ul><ul><li>Funds are screened to assess if gains or losses are within our pre-determined ‘tolerance’ levels </li></ul><ul><li>Valuation and Performance Graph sent to client. </li></ul>09/23/11
  19. 19. ANNUAL REVIEW <ul><li>A more comprehensive review of the portfolio </li></ul><ul><li>Performance analysed in absolute and relative terms </li></ul><ul><li>A written report and review is issued with observations and recommendations </li></ul><ul><li>A face to face meeting to discuss the conclusions and agree on any changes </li></ul><ul><li>Rebalanced to reflect current market views based on appropriate risk profile. </li></ul><ul><li>Individual fund switches recommended as appropriate </li></ul>09/23/11
  20. 20. SUMMARY <ul><li>A structured and disciplined investment process. </li></ul><ul><li>Use of the most comprehensive and sophisticated systems and software. </li></ul><ul><li>All charges are transparent and competitive. </li></ul><ul><li>Impressive performance track record. </li></ul>09/23/11
  21. 21. ADDITIONAL INFORMATION 09/23/11 Source: Lipper. Performance shown is Total Return (GBP) with income re-invested net of tax, net of annual charges and excluding initial charges. The impact of any initial charge can be material on the performance of the investments. Past performance is no guarantee of future returns, the value of the portfolios and income from them is not guaranteed and may fall as well as rise and investors may not get back the amount invested.   The price of shares and units and the income therefrom   can fluctuate and may be affected by exchange rate variations. The performance of the Fiducia Portfolios illustrated is based on current and back tested historical   holdings.   The holdings in the Fiducia portfolios will change from time to time and any changes may not be made immediately to clients ’ portfolios.   Due to the inconsistent nature of total switching costs, these are excluded from portfolio performance. In the unlikely event that historic prices cannot be obtained for closed funds the relevant IMA sector benchmark will be used as a proxy. Performance is based on holding the underlying investments direct with each investment company. Investments will, however, be held via a wrap Platform. The wrap platform negotiate discounts with each investment company but charge an annual fee for their service. Depending on the size of discounts negotiated and total amounts invested the actual performance of clients ’ portfolios may therefore differ from that shown. While all reasonable efforts have been made to ensure that data is accurate and up to date, no representations or warranties are given as to the reliability, accuracy or completeness of data.

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