1. The Wire
ISSUE 2 – 9 DECEMBER 2010 THE WEEKLY INVESTMENT REVIEW
An Introduction to Evercore Pan-Asset Capital Management Limited
Evercore Pan-Asset offers specialist asset allocation advice and investment services across
an extensive range of global asset classes. Founded in 2007, their clients include pension
funds, charities, universities and family wealth. Evercore Pan-Asset is 50% owned and
backed by Evercore Inc. a New York Stock Exchange (NYSE) listed corporate advisory and
investment management firm.
The information contained in the document has been issued by Evercore Pan-Asset Capital
Management Limited. Performance information is intended as a guide for Professional
Advisers only.
Cutting Cost. Keeping it Simple.
At Evercore Pan-Asset they believe in keeping it simple by investing in Exchange Traded
Funds (ETFs) which usually offer the best value and most liquid way of investing in the
assets of your choice.
Client Services Evercore Pan-Asset Clients by Value
Market leaders in the analysis and use of index-tracking instruments such as ETFs ■ HNWI 11%
■ Trusts 2%
combined with dynamic asset allocation ensures that portfolios are always structured to suit ■ Pensions 39%
market conditions and match the risk profile of the underlying client. Evercore Pan-Asset ■ Charities 5%
■ Other 2%
offers bespoke services to wealthy individuals, Pension Funds, Family Offices, Charities and ■ Institutional 2%
University Colleges. ■ Family 10%
■ Models 20%
■ University
Colleges 5%
The Case for Index Tracking ■ OEICs 4%
An index is a method of measuring the overall performance of a market, whether it is an For illustrative purposes only
equity market, bond market, or any other type of asset market place. Much academic work
has been undertaken on the source of investment returns with the result that many people believe that the most important driver of returns
is the choice of asset, rather than the underlying investment opportunities within a particular asset class.
One approach to capture the return of an asset class is to invest in an index that represents that particular asset. For example, the equity
asset class has a number of well known indices that are used by many investors as benchmarks for the returns that are generated by that
particular asset. Amongst these indices the FTSE 100 and Dow Jones Industrial Average are two well known examples. On average,
investors will achieve performance in line with the index, less trading and other cost/fees. Successful index managers are those that track
the index very closely after costs. Typically an Index Tracking approach is a lower cost method of investing when compared to an active
manager approach. It is the focus on lowering the cost of investment that an Index Tracking approach is noted for.
% of Active Managers Who Underperform The Index
100
80
60
Evercore Pan Asset Features
3 Years
• Specialists in pensions, charitable
40
5 Years endowments and family wealth
10 Years • Strong credentials
20 • Independent
• Use of a wide range of funds to
0 implement investment policy
UK Equities US Equities Europe Japanese Asia Emerging £ Corporate £ Government
(ex-UK) Equities (ex-Japan) Market Bonds Bonds • Specialists in passive investment
Equities Equities Equities
• Custody with one of the world’s
Source: Money Management magazine tables of UK Registered Investment Fund Performance, whose own data source
is Morningstar. Data is to 31 December 2009. The past performance information shown is for illustrative purposes
largest custodian banks
only and should not be relied upon as an indication of future performance.

2. Research
This diagram highlights the extensive investment process Evercore Pan-Asset undertake when structuring funds.
CAERUS Wealth Portfolio Rules ETF Selection
Asset Allocation adherence (supplied by
Strong sponsor and custodian
Allium Capital) for each fund
Low tracking difference
Diversification of ETF providers
CAERUS WEALTH
Dynamically Rebalanced Low cost
Individual holdings maximum Portfolios
20% portfolio
Collateral arrangements
No complex ETFs (inverse/leveraged)
UK Reporting Status
Regular rebalancing ETF size
The CAERUS FUNDS Dynamically Rebalanced Passive (DRP) Funds
The CAERUS WEALTH Fund range offers two distinct approaches to investor eg Cautious. The Funds constantly monitor their assets in
investing tailored to meet different investor’s requirements. These relation to these models, and are regularly rebalanced to ensure
two approaches are active vs. passive investment management, that they remain consistent to these models over time.
Evercore Pan-Asset has been selected to manage the CAERUS
• Diversifying investment exposure – To further mitigate investment
WEALTH passive range of Funds.
risk the Funds adopt a multi asset investment approach. A large
• Risk Rated – designed to closely match the risk profiling body of academic research supports the case for diversifying
outcomes generated by the risk assessment tool that is used by investment exposure within a portfolio; this approach can lead to
the CAERUS WEALTH Group reduced investment risk within a portfolio over time.
• Simple Objectives – ensuring that each Fund remains within its • Focussing on costs – The final principal is the focus on underlying
relevant risk guidelines whilst looking to invest in a diversified investment costs. Rather than adopt an active investment
range of assets in as cost effective manner as possible. approach, the Funds seek their exposure through a range of
passive investment instruments, including Exchange Traded
• Key Investment Principles – CAERUS WEALTH believes that
Funds (ETFs) and Index Tracking Funds. There are many factors
successful investment results from a set of core principals. These
that drive investment returns, however, the only factor that
principals are:
investors can reliably predict that will impact on their total return
• controlling risk is the overall cost of investing.
• diversifying investment exposure
• focussing on costs “These key investment principals are the
• Controlling risk – Using robust analysis techniques based on reasons why CAERUS WEALTH Group has created
Modern Portfolio theory, each Fund follows a specific asset the CAERUS FUNDS DRP .”
allocation that is modelled to match the risk appetite of a specific Ronan Kearney
Contact us
For further information or if you have any questions about The Wire please contact me using the details below:
Ronan Kearney
ronan.kearney@caeruswealth.com
020 7822 8205
CAERUS WEALTH Group Ltd accepts no liability whatsoever for any consequent loss
of any kind arising from the use of this document or any part of its contents. The use
of this document should not be regarded as a substitute for the exercise by the Source: Evercore Pan-Asset Capital Management Limited,
recipient of his or her own judgment. December 2010
CAERUS WEALTH Group Ltd. Correct as at December 2010.