Dfm citywire retreat sept 2013


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Dfm citywire retreat sept 2013

  1. 1. www.sandwdfm.com September 2013 Smith & Williamson The use of investment trusts and ETFs in a Model Portfolio Service David Amphlett-Lewis Mickey Morrissey Citywire New Model Adviser Retreat 12 – 13th September 2013
  2. 2. For professional adviser use only | www.sandwdfm.com 2 Contents • Introduction to Smith & Williamson • Why Smith & Williamson? • Funds Under Management • Investment Process • Investment Trust Sector • Investment Trusts vs Unit Trusts/OEICs • Performance & Awards • Contact us
  3. 3. For professional adviser use only | www.sandwdfm.com 3 • Smith & Williamson Group  Founded in 1881  An independently-owned professional and financial services group  Private company, c.70% of equity mainly held by Directors and staff  Employs over 1,450 staff in offices across the UK and Ireland Introduction to Smith & Williamson
  4. 4. For professional adviser use only | www.sandwdfm.com 4 *AUM as at 28.06.13 • Smith & Williamson Investment Management  Privately-owned Limited Liability Partnership with nearly £14 billion of assets under management*  Over 170 investment managers  Investment offices in London, Glasgow, Bristol, Birmingham, Dublin and Belfast  Dedicated to supporting Independent Financial Advisers  Model Portfolio Service Capability  Wide range of investment instruments including Investment Trusts and ETF’s  Strong Balance Sheet Why Smith & Williamson?
  5. 5. For professional adviser use only | www.sandwdfm.com 5 Funds under management and advice Total Funds Under Management by type (£m) % Charities 1,142.0 8.2 Corporates 1,231.9 8.9 Pension Funds 1,458.9 10.5 Retail** & Offshore Funds 1,338.9 9.7 Cash Management 115.0 0.8 Private Clients, Trusts & Other* 8,578.3 61.9 Total 13,865.0 100.0 * Other includes accounts or portfolios not split out in the categories in the above table, and allows for the overlap between private clients and pooled funds. ** FCA regulated/recognised. Please note there are both private client and institutional portfolios included in some of the categories in the above table. Source: Smith & Williamson Investment Management (unaudited) as at 28.06.13. Total Funds Under Management June 2013 Total 13,865.0 Charities Corporates Pension Funds Retail** & Offshore Funds Cash Management Private Clients Trusts & Other* 61.9% 0.8% 8.2% 8.9% 10.5% 9.7%
  6. 6. For professional adviser use only | www.sandwdfm.com 6 Research & investment process Strategic Distribution Technology Asset Allocation Risk Constraints Tactical Smith & Williamson Asset Allocation Committee Smith & Williamson Investment Research David Amphlett-Lewis Head of ETF Research Peter Lowe Head of Collectives Research James Burns Head of Investment Trust Research Nick Marshall EM & European Open-Ended Specialist Exchange Traded Products Open Ended Funds Closed Ended Funds Direct Fixed Income
  7. 7. For professional adviser use only | www.sandwdfm.com 7 • Assess a wide range of investment vehicles within each asset class • Includes closed-ended funds, open-ended funds, ETF’s and direct fixed interest securities • In-house sector specialists analyse sector performance and relative valuations, using quantitative research • Assess risks, opportunities and themes for the sector, and specific characteristics of individual investments such as price, value and style • Qualitative assessment involves meetings with company management (typically hold over 500 meetings with management every year) Investment selection
  8. 8. For professional adviser use only | www.sandwdfm.com 8 Product mix Source: Smith & Williamson Investment Management and StatPro as at 31.07.13 Closed Ended ETFS Open Ended Unit Trust Cash 0% 20% 40% 60% 80% 100% 3- Defensive 4 – Defensive Income 5 – Balanced Income 6 – Balanced Growth 7 – Growth 8 – Dynamic Growth
  9. 9. For professional adviser use only | www.sandwdfm.com 9 Investment Trust Sector Market Cap £94bn, Net Assets £103bn Universe by asset class (£m market cap) IPOs since 2009 (£m current market cap) Source: Numis Securities Investment Companies Research, Thomson Financial Datastream as at 03.09.13 41,470 11,912 6,410 5,781 8,683 10,917 4,948 4,372 Developed equity Asia/Emg Mkts Sector Specialist Infrastructure Property Private Equity Hedge Funds Debt 43,547 14,309 6,800 5,241 10,874 12,428 5,299 4,718
  10. 10. For professional adviser use only | www.sandwdfm.com 10 Attractive outperformance relative to open-ended funds Source: Smith & Williamson Investment Management and Canaccord Genuity 31st December 2012. Canaccord sources: Morningstar, IMA, Thompson Financial Reuters. Investment Trusts vs. OEIC/Unit Trusts – 10 year annualised outperformance to 31 December 2012 (%) Unweighted £ adjusted 0% 1% 2% 3% 4% 5% 6% 7% 8% Global Growth Global Growth & Income UK Growth & Income/UK Equity Income UK Growth/UK All Companies North Europe ex UK Global Emerging Asia Pacific ex Japan Japan America
  11. 11. For professional adviser use only | www.sandwdfm.com 11 Access to wide range of asset classes • Private Equity • Hedge • Property • Infrastructure • Aircraft Leasing • Litigation Finance • Reinsurance • Secured Loans • Distressed Debt • Real Estate Debt
  12. 12. For professional adviser use only | www.sandwdfm.com 12 How to access Neil Woodford Edinburgh IT v Invesco Perpetual Income Source: Bloomberg, as at 30 April 2013
  13. 13. For professional adviser use only | www.sandwdfm.com 13 How to access Hugh Young Aberdeen New Dawn v Aberdeen Asia Pacific Source: Bloomberg, as at 30 April 2013
  14. 14. For professional adviser use only | www.sandwdfm.com 14 • Investment trusts routinely trade at a discount or premium to underlying asset value • Opportunity to generate alpha by exploiting discount movements • Discount control mechanisms Discounts
  15. 15. For professional adviser use only | www.sandwdfm.com 15 Gearing Scottish Mortgage v MSCI World Source: Bloomberg, as at 30 April 2013
  16. 16. For professional adviser use only | www.sandwdfm.com 16 Performance & awards • Citywire Wealth Manager Awards 2012, 2011 & 2010: Winner of Best Large Firm • Portfolio Adviser Wealth Manager Awards 2013: Winner of Gold Award (Large) for Absolute Return Portfolio, Gold Award (Large) for Balanced Portfolio, Platinum Award (Large) for Balanced Portfolio and Gold Award (Large) for Aggressive Portfolio • Citywire Wealth Manager Awards 2012: Winner of Steady Growth Portfolio • Spear’s Wealth Management Awards 2012/13 – Winners Winner of Asset Management Firm of the Year for High Net Worths • Citywire Wealth Manager Awards 2011: Best Balanced portfolio and Best Aggressive portfolio • Investors Chronicle and FT Wealth Management Awards 2011: Winner of the Best Balanced Wealth Manager and shortlisted as Best Growth Wealth Manager and Best Cautious Wealth Manager. • PAM Awards 2011: Winner of Investment Performance – Absolute Returns Portfolios. • Spear’s Wealth Management Awards 2010 – Winners Winner of Asset Management Firm of the Year for Ultra-High Net Worths • STEP awards 2009/10 and 2010/11: Winner of Investment House of the Year
  17. 17. For professional adviser use only | www.sandwdfm.com 17 London investment team biographies David joined Smith & Williamson in 2010 as a Director from Deutsche Bank where he was an Investment Manager. David began his career with Societe Generale Investment Management in 1999 where he was involved with establishing a portfolio management service for individual and company pension schemes. A Member of the Chartered Institute for Securities & Investment, David is also a graduate of the Economics Department of Birmingham University. Direct line: 020 7131 4791 david.amphlett-lewis@smith.williamson.co.uk James joined Smith & Williamson in September 1999 and started working on the investment trust desk in January 2001. He is now head of the Multi-Manager desk, managing the Smith & Williamson MM Global Investment Fund and Smith & Williamson MM Cautious Growth Fund (both funds of investment trusts), and is co-manager of the Smith & Williamson MM Endurance Balanced Fund (a fund of open-ended funds). James sits on the Asset Allocation Policy Committee and also co- ordinates the investment trust recommended list for the Private Client department. James graduated from the University of St. Andrews in 1998 with an MA (Hons) and is a Chartered Member of the Chartered Institute of Securities & Investment. Direct line: 0207 131 4714 james.burns@smith.williamson.co.uk David Amphlett-Lewis - Partner James Burns - Partner Amanda Keyton – Assistant Relationship Manager Amanda assists the team in all client affairs. She has over 15 years experience in an administrative and front office support role, having started her career at Societe Generale. Amanda joined Smith and Williamson from Deutsche Bank and has worked with David since 1999. Direct line: 020 7131 4558 amanda.keyton@smith.williamson.co.uk
  18. 18. For professional adviser use only | www.sandwdfm.com 18 Sales & Sales support Mickey joined Smith & Williamson in December 2012 as Director - Head of UK IFA Sales. He is responsible for growing intermediated sales into the DFM, Guided Architecture and MultiManager business lines. Previously Mickey was Head of Distribution at Liontrust Asset Management for ten years and prior to that worked at Merrill Lynch Investment Managers for 12 years. Mickey was commissioned into the Irish Guards where he served for 12 years before joining the investment management industry in 1989. Mickey is a Fellow of the Chartered Institute for Securities & Investment. Direct line: 020 7131 4693 Mickey.morrissey@smith.williamson.co.uk Mickey Morrissey – Head of UK IFA Sales Julian joined Smith and Williamson Investment Management in November 2011 as Head of Broker Desk. He began his career in Financial Services in 1997 at Credit Lyonnais Rouse working in Commodity Derivatives before transferring to Laing and Cruickshank and managing Private Client portfolios. He has also worked at UBS Wealth Management before joining Close Asset Management in 2009 establishing their Discretionary Portfolio Management service for Independent Financial Advisers. Julian has a BA Honours degree in Politics and Social Psychology from Loughborough University and a Diploma in Management Studies from the University of Westminster. He is a Chartered Fellow of the Chartered Institute for Securities and Investment. Direct line: 020 7131 4628 Julian.polnik@smith.williamson.co.uk Julian Polnik - Head of Broker Desk For further information, please visit: www.sandwdfm.com Note: On 7 May 2013 Smith & Williamson Investment Management Limited became a Limited Liability Partnership (LLP). Former Directors of the limited company became Partners of the new LLP.
  19. 19. For professional adviser use only | www.sandwdfm.com 19 Important information Risk warnings • Investment does involve risk. The value of investments can go down as well as up. The investor may not receive back in total the original amount invested. • Past performance is not a guide to future performance. • Rates of tax are those prevailing at the time and are subject to change without notice. Clients should always seek appropriate tax advice from their financial adviser before committing funds for investment. • When investments are made in overseas securities, movements in exchange rates may have an effect on the value of that investment. The effect may be favourable or unfavourable. • Investing in alternative assets involves higher risks than traditional investments and may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain. • Investments in emerging markets may involve a higher element of risk due to political and economic instability and underdeveloped markets and systems. • Please note that bond funds may not behave like direct investments in the underlying bonds themselves. By investing in bond funds the certainty of a fixed income for a fixed period with a fixed return of capital are lost. • Shares in AIM companies are likely to be high risk and volatile. Their value, and the income arising from them, may go down as well as up, and there is the possibility that investors could lose their entire investment. Shares in an AIM company may be illiquid and it may be difficult or impossible to sell them. Investors should take independent investment and taxation advice regarding AIM investments and qualifying tax relief, which can be provided by Smith & Williamson. • In relation to any guided architecture investment options, Smith & Williamson Investment Management (SWIM) is unable to assess or provide advice on the suitability of any product or service for individual circumstances. No consideration has been given to the suitability of any investment or service for the particular needs of any recipient. SWIM will not be responsible to any other person for providing the protections afforded to retail investors or for advising on any investment as a result of using this service.
  20. 20. For professional adviser use only | www.sandwdfm.com 20 Disclaimer This document contains information believed to be reliable but no guarantee, warranty or representation, express or implied, is given as to their accuracy or completeness. This is neither an offer nor a solicitation to buy or sell any investment referred to in this document. Smith & Williamson Investment Management documents may contain future statements which are based on our current opinions, expectations and projections. Smith & Williamson Investment Management does not undertake any obligation to update or revise any future statements. Actual results could differ materially from those anticipated. Appropriate advice should be taken before entering into transactions. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. The officers, directors and employees of Smith & Williamson Investment Management, and affiliated companies and/or their officers, directors and employees may own or have positions in any investment mentioned herein or any investment related thereto and may trade in any such investment. Issued by Smith & Williamson Investment Management which is a trading name of NCL Investments Limited and Smith & Williamson Investment Management LLP. Authorised and regulated by the Financial Conduct Authority (LLP registration number is 580531). ARC Private Client Indices (“PCI”) are based on historical information and past performance is not indicative of future performance. PCI are computed using a complex calculation and the results are provided for information purposes only and are not necessarily an indicator of suitability for your specific investment or other requirements. ARC does not guarantee the performance of any investment or portfolio or the return of an investor’s capital or any specific rate of return. ARC accepts no liability for any investment decision made on the basis of the information contained in this report. You should always complete your own analysis and/or seek appropriate professional advice before entering into an agreement with any PCI Data Contributor. The content is the property of ARC or its licensors and is protected by copyright and other intellectual property laws. Use of the information herein is governed by strict Conditions of Use as detailed on www.assetrisk.com/pci Ref: 998/2013/db