The best of both worlds nma retreat sept 2013

466 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
466
On SlideShare
0
From Embeds
0
Number of Embeds
79
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The best of both worlds nma retreat sept 2013

  1. 1. This presentation is for adviser use only. It should not be distributed to or relied on by clients. The best of both worlds Mark Coles
  2. 2. Agenda The case for multi-asset investing Regulatory pressure Introduction to Architas Blending investment strategies Architas Multi-Asset Blended funds 2
  3. 3. Asset allocation is not simple No one single market consistently outperforms Past performance is not a guide to future performance. The value of an investment can fall as well as rise and is not guaranteed. 3
  4. 4. Diversification at work – Since 2000 Past performance is not a guide to future performance. The value of an investment can fall as well as rise and is not guaranteed. Source: Morningstar Direct, January 2013. % 40 60 80 100 120 140 160 180 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 FTSE 100 Price Return FTSE Total Return 50:50 Blended Cash (3 months LIBOR) 70:30 Blended Diversified portfolios returned 4.3% and 5.1% (annualised) over 13 years 50:50 Blended = 50% Barclays Global Aggregate, 50% MSCI World ; 70:30 Blended = 70% Barclays Global Aggregate, 30% MSCI World 2013 4
  5. 5. Diversification – Since 2008 Past performance is not a guide to future performance. The value of an investment can fall as well as rise and is not guaranteed. Source: Morningstar Direct, January 2013. 50:50 Blended = 50% Barclays Global Aggregate, 50% MSCI World ; 70:30 Blended = 70% Barclays Global Aggregate, 30% MSCI World % 50 70 90 110 130 150 170 2008 2009 2010 2011 2012 FTSE 100 Price Return FTSE Total Return 50:50 Blended Cash (3 months LIBOR) 70:30 Blended 2013 5
  6. 6. The rise of the multi-asset fund of funds Source: Chart Data - IMA September 2012, quote - IMA 5 November 2012 FCA • Centralised investment proposition • Replacement business • Assessing suitability Changing Landscape • IFA to financial planner • Views on outsourcing • Role of the asset manager • Implementation of platforms Funds of Funds continue to grow market share Richard Saunders, IMA Chief Executive, said: “Funds of funds continued to be popular with investors in the third quarter of 2012. While sales were lower than a year ago, in common with the wider industry, total funds recorded another new high relative to the industry as a whole. A similar picture emerged for tracker funds, which have been on an upward trend relative to the rest of the industry for the last couple of years. In contrast, ethical funds have now seen net outflows in three of the last four quarters.” 0.00 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 70,000.00 80,000.00 90,000.00 100,000.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Gross Sales £m Cumulative Gross Sales £m 6
  7. 7. What the FCA had to say? Centralised Investment Propositions Implementation • Must be appropriate for each individual client, not one size fits all. • Charges should be clearly disclosed. Assessing Suitability Risk profile four • Tools, where used, should be fit for purpose and any limitations recognised and mitigated. Source: 2012 Retail Risk Outlook; Finalised Guidance: Assessing suitability Client segmentation Marketing & design criteria Due diligence and selection Review the market 7
  8. 8. Who is Architas? • Established in 2008 • £12.1bn AUM and advice* • 60 employees • Head office – London • Member of the AXA group Five Star Award, Investment Provider & Packager *As at 31st March 2013 • Areas of expertise − Fund management: funds of funds − Advisory services: selection and recommendation of third party funds − Investment talent and focused specialists across active, passive, blended management styles offering risk profiled, income and specialist funds − Robust investment process, in-depth research on funds and asset managers While we strive to achieve further accolades, there is no guarantee to win similar awards in the future 8
  9. 9. A compelling proposition Architas offer a range of investment solutions including a range of risk-profiled funds to suit the varying needs of today’s investor. The value of an investment can go down as well as up and is not guaranteed. Investors could get back less than they invest. *Risk profiles have been calculated on a subjective basis and may not be the same as other providers. It should therefore not be compared to the funds’ actual volatility rates, or to funds or models from other providers. 9
  10. 10.  Embrace the best of both styles  Seek most efficient alpha in Actives  Seek most efficient tracking in Passives  Blend proportionately to deliver scope for outperformance at attractive price  Manage as a portfolio of assets  Rebalanced within risk tolerances Blending The case for multi-asset blending 10
  11. 11. Multi-Asset Blended funds - philosophy to methodology Seek most efficient alpha in Actives • Maximise alpha at a reasonable price − Alpha available in every asset class − Stock selection − Style, size, sector or other bias − Diversification − Conviction Past performance is not a guide to future performance. The value of an investment can fall as well as rise and is not guaranteed. Blend proportionately to deliver scope for outperformance at attractive price Seek most efficient tracking in Passives • Passive exposures for cheap beta − Tactical beta − Target max 50% in passives − Typically 30-40% Blending 11
  12. 12. Volatility proof statement • eValue FE risk tolerances internal check on Architas portfolios • All funds are shown to rest within agreed volatility bands  Above passive risk level figure  Within 0.25% of passive risk level figure For illustrative purposes only. Using a sample set of data from 2012. 15 Year time horizon. Latest version of document available on request, from the Architas Broker Desk 020 7562 4900 or email Broker.Desk@architas-mm.com. The value of an investment and the income from it can fall as well as rise as a result of market and/or currency fluctuations. 12
  13. 13. Performance Fund 3 Month 01/04/13- 30/06/13 1 Year 01/07/12- 30/06/13 3 Year 01/07/10- 30/06/13 5 Year 01/07/08- 30/06/13 Architas MAB Reserve -2.6 7.0 16.4 21.4 Architas MAB Moderate -2.1 10.7 23.3 23.8 Architas MAB Intermediate -1.7 14.1 27.6 20.9 Architas MAB Progressive -1.9 17.2 30.3 18.7 Architas MAB Growth -2.4 17.2 28.1 10.7 Past performance is not a guide to future performance. The value of an investment can fall as well as rise and is not guaranteed. Investors can get back less than they invested. For professional adviser use only. Source: Morningstar Direct, July 2013. Performance as at 30/06/2013. Total return figures are calculated on a single pricing basis. Performance figures are shown in sterling unless otherwise specified. The fund performance figures take into account the annual management charges but not the initial charges that would be payable, which will have the effect of reducing the past performance figures shown. The most up to date information can be obtained by calling the Architas Broker Desk on 020 7562 4900. 13 Cumulative % Fund 01/07/2012- 30/06/2013 01/07/2011- 30/06/2012 01/07/2010- 30/06/2011 01/07/2009- 30/06/2010 01/07/2008- 30/06/2009 Architas MAB Reserve 7.0 0.7 8.0 16.1 -10.2 Architas MAB Moderate 10.7 -0.3 11.7 17.9 -14.8 Architas MAB Intermediate 14.1 -2.7 14.9 19.0 20.4 Architas MAB Progressive 17.2 -5.0 17.0 19.1 -23.5 Architas MAB Growth 17.2 -7.9 18.6 18.2 -26.9 Discrete %
  14. 14. Architas fee structure Fees correct as at June 2013 14 Share class A net accumulation Clean share AMC (%) Clean share OCF (%) Multi-Asset ActiveFunds MA Active Reserve 0.60 1.32 MA Active Moderate Income 0.75 1.57 MA Active Intermediate Income 0.75 1.52 MA Active Progressive 0.75 1.74 MA Active Growth 0.75 1.89 MA Active Dynamic 0.75 1.90 Multi-Asset Blended Funds MA Blended Reserve 0.60 1.02 MA Blended Moderate 0.60 1.11 MA Blended Intermediate 0.60 1.18 MA Blended Progressive 0.60 1.23 MA Blended Growth 0.60 1.27 Multi-Asset PassiveFunds MA Passive Reserve 0.45 0.65 MA Passive Moderate 0.45 0. 65 MA Passive Intermediate 0.45 0. 65 MA Passive Progressive 0.45 0. 65 MA Passive Growth 0.45 0.65 MA Passive Dynamic 0.45 0.65
  15. 15. Architas investment team Sheldon MacDonald Senior Investment Manager Sector Specialisation Global Equities Stephanie Carbonneil Senior Investment Manager Sector Specialisation Fixed Income Daniel Capocci Senior Investment Manager Sector Specialisation Absolute Return Asia Ex-Japan Equity Anna O’Donoghue Head of Research Sector Specialisation US Equity Japanese Equity Quentin De Bottini Investment Analyst Sector Specialisation European Equity Fixed Income Solomon Nevins Investment Analyst Sector Specialisation UK Equity Property Specialist Equity Marcus Blyth Trainee Investment Analyst Jen Causton Investment Analyst Sector Specialisation Global Fixed Income Steve Allen Investment Manager Sector Specialisation Managed and Passive Nathan Sweeney Investment Manager Sector Specialisation UK Equity Fixed Income Zaid Alrifai Investment Analyst Sector Specialisation Emerging Market Equity Global Fixed Income Caspar Rock Chief Investment Officer Research A team diversified in background to encourage debate 15
  16. 16. Important information Issued by Architas Multi-Manager Limited, which is authorised and regulated by the Financial Conduct Authority. The value of investments and the income from them can fall as well as rise and is not guaranteed which means your clients could get back less than they invest. Past performance is not a guide to future performance. The value of investments can fall as well as rise purely on account of exchange rate fluctuations. The Funds are permitted to invest over 35% of their assets in securities issued by a single local, national or supranational government. The Funds can invest entirely in units of collective investment schemes. You can invest in the funds mentioned in this presentation through a number of financial products. They are intended to be medium (at least five years) to long terms (over 10 years) investments This document does not constitute an offer to sell or buy any share in the Fund. Information relating to investments is based on research and analysis undertaken or procured by Architas Multi-Manager Limited for its own purposes and may have been made available to other members of the AXA Group of Companies which, in turn, may have acted on it. Whilst every care is taken over these comments, no responsibility is accepted for errors and omissions that may be contained therein. It is therefore not to be taken as a recommendation to enter into any investment transactions. If you require further information on any of our funds the full prospectus is available on request. The key investor information document (KIID) replaced the simplified prospectus for all our funds 1 July 2012. The information in the prospectus, and KIID is produced by the authorised corporate director of the funds (Architas Multi-Manager Limited). It is designed to help investors understand the nature and the risks of the funds and to enable them to make an informed decision before investing. If you require further information on any of our funds, the Key Investor Information Document (KIID) and the prospectus are both available free of charge on request from Architas Multi-Manager Limited. You can view or download all our funds’ KIIDs via our website at www.architas-mm.com, in the Library section. Please note that you will need to select your country, client category and accept the terms of use the first time you visit the site. 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. 06458717. Registered Office: 5 Old Broad Street, London, EC2N 1AD. As part of our commitment to quality service and security, telephone calls may be recorded. For full details of our up-to-date performance figures, please visit www.architas- mm.com. You can also contact the Architas Broker Desk on 020 7562 4900 or email Broker.Desk@architas-mm.com. 16
  17. 17. This presentation is for adviser use only. It should not be distributed to or relied on by clients.

×