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Working in partnership with The PFS
Investment principles and risk –
“Building Successful Portfolios"
Autumn 2011
2
Agenda
The difficulties / making changes
What is the advisers role / limitations
New breed – Absolute Return Funds
Lots of choice – so where is your process
A process / solutions
Merlin Market view to conclude
Suitability
What are you selling?
Influence over the variables that you & your clients control
Maximise use of tax breaks etc
Knowledge of product suitability
Experience across a range of markets
Constantly evaluating clients’ financial goals
Time
4
“A goal without a plan is just a wish” Antoine de Saint-Exupery
Financial planning is distinct from investment management
Key considerations when investing clients’ money
Attitudes to risk
Asset allocation
Market volatility
Diversification
Funds’ style biases
Performance records
Regulatory issues
5
The suitability cycle
6
Demonstrate and
Document
2. Assess suitability – Investment
3. Review suitability – Client
4. Review suitability –Investment
1. Assess suitability – Client
FSA Paper – January 2011
Assessing suitability of Investments
“The high number of unsuitable investment selections we see in pension and investment markets is still a significant concern”
50%
Of files assessed by FSA during an 18 month period ending Sept 2010 were unsuitable on grounds of risk
Capacity for loss was not considered enough
77
8
Understanding ‘reverse percentages’
Concept:
The investment return required to recover from an investment loss increases exponentially with the scale of the loss.
Definitions:
rloss = the loss rate from a specified starting point
(this is a -ve percentage)
rrecov = the growth rate required to recover to a previous starting point
rrecov / rloss = the growth factor
This can be represented by the following equation:
rloss rrecov Growth factor
-5% 5.3% 1.05
-10% 11.1% 1.11
-15% 17.6% 1.18
-20% 25.0% 1.25
-25% 33.3% 1.33
-30% 42.9% 1.43
-35% 53.8% 1.54
-40% 66.7% 1.67
-45% 81.8% 1.82
-50% 100.0% 2.00
-55% 122.2% 2.22
-60% 150.0% 2.50
-65% 185.7% 2.86
-70% 233.3% 3.33
-75% 300.0% 4.00
-80% 400.0% 5.00
-85% 566.7% 6.67
-90% 900.0% 10.00
-95% 1900.0% 20.00
rrecov =1
(1+rloss)– 1
Downside risk
9
Source: FE.
10
Relying solely on volatility as a proxy for risk
Investment A
Month 1 2.0%
Month 2 4.0%
Month 3 9.2%
Volatility (SD) 3.8
Return 15.7%
Investment B
5.0%
5.0%
5.0%
0
15.7%
Investment C
-5.0%
-5.0%
-5.0%
0%
–14.3%
Source: This slide is for illustrative purposes only. The figures do not represent actual investments.
11
Ratios
Source: FE, bid to bid, net income reinvested , annualised from 31.10.08 to 31.10.11.
AA tools
It is not our area of expertise to comment on ATR tools but where they lead to prescribed investment decisions by risk we have a view
Whilst theoretical risk parameters are kept with a boxing method of risk by numbers, investors don't have full flexibility to adjust to markets and this can lead to selling an asset that is appreciating to buy one which is depreciating to keep within the risk box
Many new multi manager risk solutions are placed within the unclassified sector making relative comparisons on risk return to peers difficult
12
AA Tools
Stochastic modelling looks backwards and trys to project forwards – The world we live in now is not the same
MPT – Modern portfolio theory works on the academic belief that holding all the major assets all of the time you increase the risk / return of a portfolio – not so , a la property in recent times
Many asset allocation tools fail at fund levels by boxing active managers by tracking errors – the result you would ignore lots of talent for core monies like Neil Woodford of IP
Use a panel but, also use your discrection
13
1414
Source: IMF, MSCI, Goldman Sachs Global ECS Research estimates 08.09.10.
Assess suitability – Investment
Global Emerging Markets may represent 55% of Global market cap by 2030
IMA Report to April 2011 – Sectors (NET sales)
15
Source: IMA Report to April 2011
16
Issues for the IFA
17
Best vs. worst UK Unit Trust/OEIC in 2007
Source: Financial Express, bid to bid, net income reinvested in GBP 31.12.06 to 31.12.07.
18
Best vs. worst UK Unit Trust/OEIC in 2008
Source: Financial Express, bid to bid, net income reinvested in GBP 31.12.07 to 31.12.08.
19
Best vs. worst UK Unit Trust/OEIC in 2009
Source: Financial Express, bid to bid, net income reinvested in GBP 31.12.08 to 31.12.09.
Best vs. worst UK Unit Trust/OEIC in 2010
20
Source: Financial Express, bid to bid, net income reinvested in GBP 31.12.09 to 31.12.10.
Over the last year…
21
Source: Financial Express,, bid to bid, net income reinvested from 31.08.09 to 31.08.11.
1st Quartile
to
3rd Quartile or
4th Quartilemoved from
performance over the previous 12 months
Cost of missing best ten days
https://www.fidelity.co.in/market_volatility/timing.html
22
Source: Fidelity FundsNetwork. The chart shows how a notional Rs. One lakh investment would have been affected if the ten best days were missed, using daily returns of the BSE Sensex (source: Bloomberg) for the calculations fro m 31.07.01 to 31.07.11. Indices are not a representation of a financial product. The do not take account of costs or tax and do not reflect performance of any individual portfolio of stocks.Past performance is not an indicator of future performance.
23
Active vs. passive investing
Potential for out-performance
Can react to market conditions
Access to smaller companies
Active Passive
Higher charges
Can underperform the market
Lower charges
Less trading (often computer driven)
No potential for out-performance
Tracking error / rebalancing
Must stay fully invested
Only feasible for larger markets
24
FTSE 100 performance 2010: +12.7%
Best performers 2010
Source: FactSet, Bloomberg 31.12.09 to 31.12.10. Average weights are FTSE 100 average weights over 12 months to 31.12.10. on a buy and hold basis.
Average Weight % Total Return %
Fresnillo 0.16 +114.3
Burberry Group 0.25 +92.9
Petrofac 0.23 +68.1
Antofagasta 0.30 +65.3
Wolseley 0.31 +64.1
25
FTSE 100 performance 2010: +12.7%
Worst performers 2010
Avoiding one or two stocks would lead to outperformance …but index managers can’t avoid this risk
Average Weight % Total Return %
Resolution 0.10 -28.0
BP 6.53 -21.2
Capita Group 0.33 -5.2
HSBC Holdings 8.25 -5.0
Marks & Spencer Group 0.41 -4.0
Source: FactSet, Bloomberg 31.12.09 to 31.12.10. Average weights are FTSE 100 average weights over 12 months to 31.12.10. on a buy and hold basis.
26
Stockmarket performance
31.12.99 to 31.08.11
Source: Bloomberg as at 31.08.11. Figures based on GBP currency. *No dividends or coupons.
% Change % Total Return
FTSE 100 -22.16 +20.27
S&P 500 -17.63 +2.01
Nikkei 225 -37.15 -28.23
DAX +18.37 +18.37*
CAC 40 -22.18 +9.04
Discrete performance – Jupiter Merlin Income
27
Calendar year performance
Source: Financial Express, bid to bid, net income reinvested to 31.08.11.
YTD 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Jupiter Merlin Income Portfolio -2.8 12.5 17.4 -10.8 2.8 11.0 17.0 11.8 15.2 -5.2 -2.2 5.9
IMA Cautious Managed average -3.0 8.6 15.9 -15.8 1.4 7.0 12.6 9.4 14.4 -11.8 -4.9 1.1
Relative performance +0.2 +3.9 +1.5 +5.0 +1.4 +4.1 +4.5 +2.4 +0.8 +6.6 +2.6 +4.8
Quartile rank 2 1 2 2 2 1 1 1 2 1 2 1
28
Analyzing funds
Fund manager tenure
Risk vs. return (including discrete returns)
Maximum loss
ABI vs. IMA
Stock and sector over/underweight (just as important)
Number of holdings
Commonality / overlap on funds held
FundsLibrary
29
30
Hiding the truth?
Watch out for the . Who’s performance record is it really?
There are no hard and fast rules as fund managers move around and new funds are launched
*
Fund management is an art not a science; it is a peoples business
John Chatfield Roberts, Director, Jupiter
31
Brick in the snake – Discrete as well as cumulative
Jupiter European Fund performance over 5 years
Source: Financial Express, bid to bid, net income reinvested to 31.08.11.
-0.3
22.1 18.8 16.4
-4.0-5.8 -6.8
17.6
-0.2 -1.5
9.43.4 4.7
-5.2-3.4
-40
-30
-20
-10
0
10
2030
40
50
60
70
80
90
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
% G
row
th
Jupiter - European Inc TR in GB FTSE World Europe EX UK Index TR in GB
IMA Europe Excluding UK TR in GB Jupiter - European Inc TR in GB
32
Risk metrics
To be used in conjunction with performance analysis to determine the risk / reward trade of
Beta
Alpha
Standard deviation and tracking errors
Correlation
Maximum drawdown and many more, all can be found on websites provided or direct from your manager
33
Jupiter North American Income Fund – Risk & Return
Risk/return over 5 years
Source: Financial Express, bid to bid, net income reinvested 31.08.06 to 31.08.11.
-40
-30
-20
-10
0
10
20
30
40
50
60
15 16 17 18 19 20 21 22 23 24
% C
ha
ng
e
Annualised Volatility
S&P 500
34
Criteria for ratings – 1 of 2
Agency Description Criteria
Standard & Poor’s
Fund Management
Ratings
Takes into account investment process and managers’ consistency of
performance
Less than 20% of funds receive a
rating
Morningstar Overall Morningstar Ratings™ grades fund based on their risk-adjusted
returns within Morningstar Categories over separate performance
period depending on how long the fund has been running. The separate
periods are 36 months, 60 months and 120 months.
5 star: top 10%
4 star: next 22.5%
3 star: middle 35%
2 star: next 22.5%
1 star: bottom 10%
Forsyth-OBSR Examines fund’s investment style, process, performance and risk Funds must be ‘highly
commendable’ or better
35
Criteria for ratings – 2 of 2
Agency Description Criteria
Citywire Fund
Manager Ratings
Focusses on manager’s ability, regardless of fund managed, calculating
the level outperformance against the benchmark
‘Only a handful of managers
receive
a rating’
Lipper Leaders Funds that are awarded Lipper Leader status have excelled when
compared to similar funds. Lipper’s scoring system is built on three
years of historical performance and is based on two main elements:
‘preservation’, the ability of the fund to preserve capital, even during any
market downturn and ‘consistent return’, the ability of a fund to provide
consistently superior returns when compared to similar funds.
Both measures are scored on a 1
to 5 basis (with 1 being the
highest). Funds that score 1 for
either measure are awarded
‘Lipper Leader’ recognition.
Trustnet Alpha
Manager Ratings
The calculation is achieved by constructing an artificial portfolio, as if the
manager’s funds had been bought and sold during the period he/she
managed them. The weighting between funds is equal, but is halved if
the fund is co-managed and the manager is also a sole manager on
another fund. Any periods where there is no record of fund manager
performance, perhaps due to gardening leave, is treated as a flat
period.
The rating is based on three
components: Risk-adjusted alpha (with track
record length bias) Consistent outperformance of
a benchmark overall Out/underperformance
consistency in up and
down markets
36
ABI vs. IMA
Fund sits within IMA UK equity and bond sector
Fund invests 80% in UK equity, 20% UK fixed interest
Jupiter High Income Fund
37
ABI vs. IMA
For Life and Pensions money, use ABI classification
ABI do not have a UK equity and bond sector
Fund is therefore placed in most appropriate sector – UK equity is included in this case
Problems?
Jupiter High Income Fund
38
Specialism – is it your role to pick them?
Is it your job or that of a MultiManager?
If it’s the IFA, you must keep an eye on these funds more regularly
Possibly quarterly reviews, rather than annual
Monitor these funds with more detailed analysis
39
Specialist sector – Apples and Pears
Top 5 performing funds over 5 years
Source: Financial Express, bid to bid, net income reinvested to 31.08.11.
Fund %
Smith & Williamson - Global Gold & Resources 140.7
BlackRock - Gold & General 134.9
Investec - Global Gold 128.5
Franklin Templeton - Franklin India 116.3
Fidelity - Latin America 113.2
Gold and Mining Resources Fund
Gold and Mining Resources Fund
Gold and Mining Resources Fund
Indian Equities
Latin American Equities
40
Finding funds
How many funds should you look at?
How much time do ‘you’ have?
Consider your limits – holistic advice
BUT with over 2000 UK funds alone to choose from, you need filters and a system
41
Directory
www.barcap.com/egs Equity-Gilt Study
www.obsr.co.uk Ratings and fund information
www.ipdindex.co.uk Property
www.reita.org REITS information
www.trustnet.com Performance & multi-manager guide
www.citywire.co.uk Fund manager news, views, ratings
www.apcims.co.uk Asset allocation model
www.morningstar.co.uk Performance & risk data
www.fundslibrary.co.uk Factsheets & reports
www.jupiteronline.co.uk Jupiter fund information
The new breed – Absolute return investing
The differing funds on offer
So why now?
Just look at the last decade for investors
Two significant bear / negative returning markets for equities
Cash is not king, and other asset class volatility has increased
Index returns negative for equity investors
Correlation stronger between asset classes
43
10 years of returns
44
Source: Financial Express, bid to bid, net income reinvested to 31.08.11.
Absolute returns in mind
There has been a recent flurry of funds launched in the UK, so much so that a new IMA sector has been created
We endorse the usage of these funds but…
As part of an overall portfolio or complete solution?
But NB: They can and have lost money
They may find it difficult to fully participate in any rally
45
IMA definition
46
Absolute Return
Funds managed with the aim of delivering absolute (i.e. more than zero) returnsin any market conditions. Typically funds in this sector would normally expect to deliver absolute (more than zero) returns on a 12 months basis.
Absolute Return sector (incorporated April 2008)
47
IMA Absolute Return sector
Source: Financial Express..
Year Funds launched
1993 1
1997 1
1998 1
2003 1
2004 1
2005 4
2006 4
2007 5
2008 8
2009 21
2010 16
2011 6
Total 69
Offshore Recognised Absolute Return
Year Funds launched
1989 1
1996 1
1997 2
1998 1
1999 4
2000 2
2001 1
2003 2
2004 2
2005 6
2006 18
2007 11
2008 3
2009 10
2010 15
2011 5
Total 84
IMA Absolute Return sector members’ performance 2010
48
Source: Financial Express, bid to bid, net income reinvested 31.12.09 to 31.12.10.
IMA Absolute Return sector Offshore Recognised Absolute Return
Fund S&P OBSRFE
crowns
Newton Real Return AAA A 2
Stan Life Global Absolute Return Strategies
AA A 3
Insight Absolute Return AA A 3
BlackRock UK Absolute Alpha
AA A 1
Threadneedle Absolute Return Bond
A A 2
Funds rated by S&P, OBSR and Financial Express
49
IMA Absolute Return sector Offshore Recognised Absolute Return
Fund S&PFE
crowns
Insight Absolute UK Equity Market Neutral
AA 3
Nordea European Value AA 2
Polar Capital UK Absolute Return AA 1
BNY Mellon Evolution Global Alpha
A 1
Ennismore European Small Companies
A 3
GLG UK Select Equity A 1
Schroder Emerging Markets Debt Absolute Return
A 2
Source: Trustnet 31.08.11.
What are the opportunities?
Long term all weather opportunities for investment
Lower volatility, lower standard deviation
The greater potential for protection of capital
A multitude of different instruments and techniquesto maintain flexibility
50
Types of Absolute Return
51
Examples of funds and differences
Insight Market Neutral – Cash Plus Return
Standard Life GARS – Targeted return
Jupiter AR – Absolute Return
52
Failure of managed funds
53
Performance over ten years
Source: Financial Express, bid to bid, net income reinvested to 31.08.11.
The nascent sectors credentials
54
Performance since July 2005
Source: Financial Express, bid to bid, net income reinvested to 31.08.11.
Methods employed
Legislation helps
UCITS III and soon IV
Hedge fund techniques can be used in UK Funds under regulation
Thus the emergence of absolute return funds
56
57
UCITS new powers
Absolute Return funds have the ability to invest in a wider rangeof instruments to a much greater degree compared to traditional long only funds
Making use of greater degrees of cash weighting
Using derivatives not only to maximise returns but also to protect portfolios, as opposed to simply EPM used in traditional funds
Swaps, CFD’s, pair trades, index derivatives and much more can be used synthetically
UCITS III
Golden ticket?
You can trade on Comex – But there will be dealing costs, storage, insurance etc..
…So we trade on ETC’s market – Cost effective, but can you market time?
Gold acts as an inflation hedge, currency hedge and also acts as a flight to quality asset in recessionary times
US Dollar risk to consider & no yield, but only held as part of overall portfolio
58
UCITS III – Absolute Return (“sophisticated”) vs. Long Only (“non-sophisticated”) funds
Long only
Highly correlated to equity/fixed interest indices
Outperformance rather than absolute returns
Limited ability to protect the fund when market
is falling
Derivatives used for “efficient portfolio
management” purposes only
“Commitment” approach to risk management
Regulated by FSA
59
Long and (“synthetic”) short strategies – like
hedge funds
Low correlation to equity returns
Aim for positive returns in all market conditions
Can actively manage the fund’s market exposure
(long, short or neutral).
Derivatives for investment and hedging purposes
Value at Risk (VaR)
Regulated by FSA (unlike hedge funds)
Funds managed with the aim of delivering absolute (i.e. more than zero) returns in any market conditions. Typically, funds in this sector would normally expect to deliver absolute (more than zero) returns on a 12 month basis. IMA
Absolute return Long only
Evaluating – Absolute return funds
Investment philosophy and objectives
Resources
Investment process
Portfolio construction
Risk
60
Qualitative aspects Quantitative aspects
VaR, drawdown, volatility, alpha, correlation and many more
How to monitor
Corporate and individual / team experience
Managers ability
To what extent new powers will be used
Main asset play or multi asset
Risk monitoring and managements
Understanding and articulation of fees
USE WEBSITES OVERLEAF
(see appendices for performance fee method of our fund)
61
The Future
Investors have a choice of an potential all weather vehicle
Less correlation to market
Cash plus, Target & Absolute return strategies available, designed to return with less volatility
Not all are the same, not all will perform as 2009 proved
62
How will the performance fee work?
Fee is calculated and accrued daily in the price and is paid annually, from the fund, on 31 October each year (the last day of accounting year). However, this 15% performance fee will only be paid if the fund outperforms the Hurdle and High Water Mark
63
Performance Fee
64
Websites and surveys
www.fundslibrary.co.uk Fund comparison site
www.defaqto.co.uk Guide to sector
www.obsr.co.uk Research & ratings
www.investopedia.co.uk Glossary of terms
www.jupiteronline.co.uk Jupiter AR Fund
65
A possible process for picking funds?
Look at the majority of funds with a track record, 3 or 5 years+ on both an absolute and relative basis
Perform quantitative performance and risk analysis using a tool
Carry out qualitative research using tool, factsheets and independent reports
Find out how the fund is rated by the major agencies, if not check if there are still reasons to choose before filtering out
Make sure the fund adds to the portfolio’s diversity and does not concentrate in similar areas for correlation
Monitor your funds with pre-populated quant reports and regular reading / updates, maybe semi annual or more regularly
Assuming specific client requirements are considered, then
66
Caveats
Manger may have recently moved to the group/fund after strong performance elsewhere – Eg. Philip Ehrmann, Jupiter China
Manager may have run offshore/ hedge or institutional mandates and has a strong record to bring to the retail market – Eg. Philip Gibbs, Jupiter Absolute Return
Fund may be a new derivative of another successful fund / manager Eg. Ariel Bezalel, Co manager of Jupiter High Income and Manager of short term success with Strategic Bond
Fund may have new manager and become a recovery story Eg. Ben Whitmore, Jupiter UK Special Situations
Fund maybe a new concept with suitability for modern investing – AR fund as above
Making changes - To manage or not to manage?
Is the IFA an investment expert or financial planner?
It all takes a lot of time, resource, and this costs money
World is changing and fast so dynamic portfolios required
Too much choice, so how do you slim down but at the same time avoid missing new opportunities
CGT on switches outside of a wrapper
Paperwork and reporting
Reviews essential
67
68
Multi Management
Abdication or delegation?
69
Benefits of Multi Management
Expert analysis of markets and funds on a daily basis
Saving time so more can be spent on clients and their core needs
Diversification with access to more than just conventional onshore funds
Investment risk can be spread, as our funds hold an average of 12 underlying funds and that gives access to well over 1000 stocks
Consolidation of your core holdings, one portfolio, one report, one point of contact
To manage to not to manage?
Practical solutions for investors
Financial planning
Influence the variables that you control
Maximise use of tax breaks etc
Constantly evaluate your financial goals
Investing
Manage your expectations
Adopt a forward looking focus
Use flexible mandates
Embrace risk
Analyse performance over meaningful time periods
70
“A goal without a plan is just a wish” Antoine de Saint-Exupery
Minimum amount earned per hour of work
71
Source: Jupiter
PORTFOLIO SIZE
HOURLYRATE £25,000 £50,000 £75,000 £100,000 £125,000 £150,000 £200,000 £250,000
£25 5.00 10.00 15.00 20.00 25.00 30.00 40.00 50.00
TIME
£50 2.50 5.00 7.50 10.00 12.50 15.00 20.00 25.00
£75 1.67 3.33 5.00 6.67 8.33 10.00 13.33 16.67
£100 1.25 2.50 3.75 5.00 6.25 7.50 10.00 12.50
£125 1.00 2.00 3.00 4.00 5.00 6.00 8.00 10.00
£150 0.83 1.67 2.50 3.33 4.17 5.00 6.67 8.33
£175 0.71 1.43 2.14 2.86 3.57 4.29 5.71 7.14
£200 0.63 1.25 1.88 2.50 3.13 3.75 5.00 6.25
£225 0.56 1.11 1.67 2.22 2.78 3.33 4.44 5.56
£250 0.50 1.00 1.50 2.00 2.50 3.00 4.00 5.00
£125.00 £250.00 £375.00 £500.00 £625.00 £750.00 £1,000.00 £1,250.00
RENEWAL FEES
72
Reduce your workload
Merlin Market view
Jupiter Independent Funds team
74
Algy Smith-MaxwellDirector
John Chatfeild-RobertsDirector
Peter Lawery Director
2001 to Present – Jupiter Asset Management 1995 to 2001 – Lazard Asset Management 1989 to 1995 – Henderson Global Investors
2001 to Present – Jupiter Asset Management 1999 to 2001 – Lazard Asset Management 1995 to 1999 – Henderson Global Investors
2001 to Present – Jupiter Asset Management 1992 to 2001 – Lazard Asset Management
Merlin View
Cash – recent deployment of cash to buy defensive managers
Fixed Interest – Main strategy to buy Strategic Bond Managers
UK Equities – Defensive, experienced Income Managers
Global Equities – Like US Global winners, GEM Direct and indirect, u/w Europe
Others – No Property, hold Gold and energy funds
75
We always look at fundamentals, and for liquidity and long terms absolute returns!
76
Market thoughts
Working age population
898 961 1,034 1,1371,294
1,4691,684
1,9362,187
2,4192,671
2,9463,202
3,4203,591
3,7493,873 3,953 4,002 4,033 4,025
526 556 579 613 646 680 713 745 768 784 805 823 836 830 820 809 796 784 771 758 744
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1950 55 60 65 70 75 80 85 90 95 2000 05 10E 15E 20E 25E 30E 35E 40E 45E 50E
Emerging Developed
Source: UNPD, Morgan Stanley June 2009.
Global emerging markets – powerful demographics
Rapid growth of middle class will drive wealth creation, consumption and urbanisation
Decoupling; 10 years of proof?
77
-50
0
50
100
150
200
250
300
350
400
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
% Growth
Outperformance over ten years = 275%
Source: Financial Express, total return 31.08.01 to 31.08.11. *Source: Morgan Stanley 2012 growth estimate.
MSCI EM (Emerging Markets) 291.1%
S&P 500 Index 16.3%
Growth in emerging markets (6.1%) to outpace developed (1.5%)*
78
Our Market is global
70% + of FTSE 100 earnings are overseas
2 constituents of FTSE 100 are Kazakhstan copper miners
No link between GDP and FTSE growth as a result
Income managers with strong dividends offer Global opportunities with UK security
The new “normal”
79
Colgate: Developed world company – developing world growth
Iconic brand with leading 44% global market share
Highly profitable operating margins of 24%
Exposed to emerging world dynamics but with:
Economic & accounting transparency
Corporate governance
Subject to the rule of law
Source: Colgate, Jupiter
BRIC sales = 46% of total sales
Market share
Brazil 70%
Russia 35%
India 51%
China 32%
Making changes – to manage or not to manage?
Is the IFA an investment expert or financial planner?
It all takes a lot of time, resource, and this costs money
World is changing and fast so dynamic portfolios required
Too much choice, so how do you slim down but at the same time avoid missing new opportunities
CGT on switches outside of a wrapper
Paperwork and reporting
Reviews essential
80
Managers we hold - Include
Richard Woolnough, M&G, Ariel Bezalel, Jupiter – Strategic Bond Funds
Neil Woodford – IP Income, Tom Dobell – M&G Recovery
Angus Tulloch & Martin Lau –First State Asia Funds
James Findlay – Findlay Park US
Gold ETF / Energy Funds
We always look at fundamentals, and for liquidity and long terms absolute returns!
81
Final comments
Platforms and Pricing
www.theplatforum.co.uk
82
83
Disclosure
Jupiter Unit Trust Managers Limited (‘JUTM’) and Jupiter Asset Management Limited (‘JAM’) are both registered in England and Wales (nos. 2009040 and 2036243). The registered office of both is 1 Grosvenor Place, London SW1X 7JJ. JUTM and JAM are authorised and regulated by the Financial Services Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS.
This presentation is intended for investment professionals and not for the benefit of private investors. However any one attending the presentation or who has the opportunity to view the accompanying slides should bear in mind that the value of an investment in a unit trust and the income from it can go down as well as up. It may be affected by exchange rate variations and you may not get back the amount invested. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. Quoted yields are not guaranteed. Current tax levels and reliefs will depend on the nature of the holding and details are contained in the key features documents. Past performance should not be seen as a guide to future performance.
For your security we may record or randomly monitor all telephone calls. If you are unsure of the suitability of an investment please contact your financial advisor. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given.