IFSL Sinfonia OEIC Portfolios Performance to 28 … · A good month for Sinfonia Income & Growth following strong the rally in equities, UK Credit and Gilt markets. Notable change

INVESTMENT AREA: Multi-Asset Risk-Targeted

OEIC: Fund of Funds

IFSL Sinfonia OEIC Portfolios Performance to 28th February 2017

Investment Commentary

Market Overview A positive month for equity markets led to solid gains across the board as the economic environment remained buoyant and investors continued to track the decisions, comments and executive orders of President Trump. The president’s assurance that “phenomenal” announcements were coming soon gave new, equity-supporting life to the reflation themes and more calming tones with regards to China gave credence to the recent market rally with global implications. All this together boosted global equities to solid gains (+2.6% by the MSCI AC World in USD), led by emerging markets (+3.0% by the MSCI Emerging in USD). UK and US stock markets (+3.1% for FTSE100 & +3.7% for S&P500) fared better than their European (+2.8% for the Eurostoxx 50) and Japanese (+0.4% by the Nikkei 225) peers. In Europe performance was dragged down by the Banking sector, with Italy being undermined by non-performing loans & German banks posting a series of disappointing results, while in Japan investors are starting to be concerned over the sustainability of the rally given the Bank of Japan led program buying ETFs. In the United States, financial stocks rose on their good earnings and prospects for a loosening in financial regulation in the form of an amendment to the Dodd-Frank law passed in 2010 to reinforce the sector’s post-crisis stability, boosting financial stocks. Upwardly revised growth forecasts and another fall in the value of Sterling helped the FTSE100 to post good gains this month.

As expected, both the BoE and the FOMC’s first meetings of the year left rates (and in the case of the UK, asset purchases) unchanged in February, with the Fed Funds target rate holding steady at between 0.50% and 0.75%, the level it was raised to in December. There was nothing new in the comments, but Fed officials have shifted their tone to a more hawkish bias in recent weeks, The European Central Bank did not meet in February, so key rates remained unchanged and asset purchases continued at a pace of 80 billion euros each month. The ongoing equity rally in February, which carried the Dow Jones 30 far above the symbolic 20,000 mark, has occurred against a backdrop of solid macroeconomic indicators (particularly in the US) and rather good corporate results. However, these results have not led analysts to massively raise their earnings growth forecasts for 2017, and company managers remain cautious. In a context in which equities look increasingly overvalued, microeconomic factors alone no longer appear to justify the equity rally. Moreover, the many political uncertainties are still not properly priced in. The tense start to Donald Trump’s presidency and absence of clarity on flagship fiscal measures have failed to cool equity investors’ enthusiasm. Likewise, political developments of all types in Europe (Brexit fallout, negotiations between Greece and its creditors, coming elections in the Netherlands and France) have had repercussions on the government bonds markets but not yet on risky assets. Given that visibility on these factors is unlikely to improve, market movements could very well become more erratic as the various key dates approach.

Sinfonia Adventurous GrowthA positive month for the portfolio in February following strong the rally in equity markets. Notable change in the month was the closing of the bias towards US small caps over large caps. After the outperformance since the presidential election, small caps had become even more expensive relative to large caps. Even though earnings are improving for both, we think the price gains of small caps relative to large caps are not justified by the relative earnings momentum. With too much optimism priced into small caps, we decided to take profits on this position. The portfolio maintains an underweight in equity as we think a scenario of modest growth & improvements in company earnings remains discounted. We regard equities generally as slightly overvalued and markets are pricing in a positive strong growth, low inflation scenario which we see as less likely, hence the underweight.

Sinfonia Balanced ManagedA positive month for the Sinfonia Balanced Managed in February following strong the rally in equity and UK Credit markets over the period. Notable change in the month was the closing of the bias towards US small cap companies over large caps. After the outperformance since the presidential election, small caps had become even more expensive relative to large caps. Even though earnings are improving for both, we think the price gains of small relative to large caps are not justified by the relative earnings momentum. With too much optimism priced into small caps, we decided to take profits on this position. The portfolio maintains an underweight in equity as we think a scenario of modest growth & improvements in company earnings remains discounted. We regard equities generally as slightly and markets are pricing in a positive strong growth, low inflation scenario which we see as less likely, hence the underweight. Corporate bond spreads appear expensive, we continue to hold an underweight.

Sinfonia Income & GrowthA good month for Sinfonia Income & Growth following strong the rally in equities, UK Credit and Gilt markets. Notable change in the portfolio was the closing of the bias towards US smalls over large caps. After the outperformance seen since the presidential election, small caps had become even more expensive relative to large caps. Even though earnings are improving for both, the price gains of small relative to large caps are not justified by the relative earnings momentum. With too much optimism priced into small caps, we decided to take profits on this position. The portfolio maintains an underweight in equity as we think a scenario of modest growth & improvements in company earnings remains discounted. We regard equities generally as overvalued and markets are pricing in a positive strong growth, low inflation scenario which we see as less likely, hence the underweight. Corporate bond spreads appear expensive, so we continue to hold an underweight.

Sinfonia Cautious ManagedA good month for Sinfonia Cautious Managed following strong the rally in equities, UK Credit and Gilt markets. Notable change in the month was the closing of the bias towards US small over large caps. After the outperformance since the presidential election, small caps had become even more expensive relative to large caps. Even though earnings are improving for both, we think the price gains of small relative to large caps are not justified by the relative earnings momentum. With too much optimism priced into small caps, we decided to take profits on this position. The portfolio maintains an underweight in equity as we think a scenario of modest growth & improvements in company earnings remains discounted. We regard equities generally as overvalued and markets are pricing in a positive strong growth, low inflation scenario which we see as less likely, hence the underweight. Corporate bond spreads appear expensive, so we continue to hold an underweight. Duration in the portfolio was lowered at the end of the month following a fall in UK government bond yields. With an upward growth revision and inflationary pressures in the UK we reduced interest rate risk in the portfolio.

Sinfonia IncomeA positive month for Sinfonia Income despite the strong rally in equities we also saw positive UK Credit and Gilt returns over the period. Notable change in the month was the closing of the bias towards US small over large caps. After the outperformance since the presidential election, small caps had become even more expensive relative to large caps. Even though earnings are improving for small and large caps, we think the price gains of small caps relative to large caps are not justified by the relative earnings momentum. With too much optimism priced into small caps, we decided to take profits on this position. The portfolio maintains an underweight in equity as we think a scenario of modest growth & improvements in company earnings remains discounted. We regard equities generally as slightly overvalued and markets are pricing in a positive strong growth, low inflation scenario which we see as less like, hence the underweight is maintained. Corporate bond spreads appear expensive, leading us to continue to hold an underweight. Duration in the portfolio was lowered at the end of the month following the fall in UK government bond yields. With an upward growth revision and inflationary pressures in the UK reduced some of the interest rate risk in the portfolio.

Portfolio Updates

Fund Type Fund Value Currency Minimum investment Deal closing time Daily valuation point Launch date Unit Type Sponsor Investment Manager ACD Yield OCF (share class A) XD Date Payment date

Fund Facts


OEIC: Fund of Funds

IFSL Sinfonia Income Portfolio February 2017

Vanguard UK Government Bond 18.35%

BlackRock UK Credit Screened Fund 16.35%

Legal & General All Stocks Gilt Index Trust 12.01%

Parvest Bond World X Cap 9.02%

Amundi Funds - Bond Global Aggregate 7.94%

TOTAL 63.67%

Risk Warning – Past performance is not a guide to the future performance. Investments can go down as well as up and investors may not get back the amount originally invested. This can be as a result of market movements and exchange rates between currencies. The Fund may invest in fixed interest funds, which are subject to market and credit risk and will be impacted by interest rates. The Fund’s underlying investments may include emerging markets which may be less liquid and more volatile than more developed markets. Important Information – Copies of the Prospectus and Key Investor Information Documents are available from www.ifslfunds.com or can be requested as a paper copy by calling 0808 178 9322 or writing to IFSL Sinfonia, Marlborough House, 59 Chorley New Road, Bolton BL1 4QP.

^The performance shown is that of the A Acc share class

* 33% FTSE Actuaries UK Conventional Gilts All Stocks, 21% IBOXX GBP Corporate, 19% JPM GBI Global, 11% FTSE All Shares, 10% Cash Index LIBOR UK 3 months, 3% MSCI Daily net USA, 3% MSCI Daily Net TR Europe Ex UK

Source: BNPP IPPerformance from 16/06/2008 to 28/02/2017, Net of fees, expressed in GBP value

Performance ^ as at 28.02.17

IFSL Sinfonia Income Portfolio August 2016

UK Government Bonds 36.3%

Global Bonds 19.0%

UK Corporate Bonds 16.4%

UK Equities 10.2%

Money Market 6.9%

Absolute Return 3.9%

European Equities 2.3%

US Equities 2.0%

Cash 1.8%

Mixed Allocation 1.1%

Investment Objective

To provide regular income with some potential for capital growth over the long-term.

The investment objective will be achieved by investing in a diversified portfolio of equities, fixed interest securities, warrants and money market instruments primarily through investment in a portfolio of collective investment schemes. The Sub-Fund will typically be invested in a global portfolio of assets with a focus on UK assets.

This fund will be invested in a portfolio that is considered to be mainly low and medium risk investments over the long-term.

Fund of Funds £11.9mGBP £1000 lump sum, £25 per month 12.00 noon (UK) 12.00 noon (UK) 16 June 2008 Accumulation & Income Sinfonia Asset Management Ltd BNP Paribas Investment Partners UK Ltd Investment Fund Services Ltd 0.6% (last 12 months up to 28th February 2017)1.14% (includes AMC of 0.65%)1 Oct / 1 Jan / 1 Apr / 1 Jul 30 Nov / 28 Feb / 31 May / 31 Aug

0

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% Growth Performance Pack From 16/06/2008 to 28/02/2017

Key: IFSL Sinfonia Income Portfolio A Acc 51.62Risk Managed 3 Benchmark 66.57

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


Global Bonds 19.0%


UK Equities 10.2%

Money Market 6.9%



US Equities 2.0%

Cash 1.8%


Income Portfolio vs. Risk Managed 3 Benchmark*

Top 5 holdings Tactical Asset Allocation

IFSL Sinfonia Income Portfolio

YTD 31.12.16

TO 28.02.17

3 MTHSSINCE

LAUNCH

16.06.08

12 MTHS ROLLING 28.02.16

TO 28.02.17

Portfolio (%) 1.3 2.6 51.6 11.1

12 MTHS TO 31 DECEMBER (%)

2016 2015 2014 2013 2012

11.1 1.2 6.0 3.9 7.0


Fund Facts


OEIC: Fund of Funds

IFSL Sinfonia Cautious Managed Portfolio February 2017



JPMorgan Fund ICVC - UK Active Index Plus 12.26%

Legal & General UK Index Trust 10.31%

Vanguard FTSE Developed Europe ex UK UCITS ETF 6.44%

TOTAL 61.65%



* 23% FTSE All Shares, 21% IBOXX GBP Corporate, 18% FTSE Actuaries UK Conventional Gilts, 14% JPM GBI Global, 8% MSCI Daily TR Net USA, 8% MSCI Daily Net TR Europe Ex UK, 7% Cash Index LIBOR UK 3 months, 1% MSCI Daily TR Net Japan

Source: BNPP IP Performance from 16/06/2008 to 28/02/2017, Net of fees, expressed in GBP value


IFSL Sinfonia Cautious Managed Portfolio Aug 2016

UK Equities 22.6%

UK Government 21.2%


Global Bonds 14.1%


US Equities 6.5%

Money Market 4.8%



Cash 0.8%

Japan Equities 0.8%


To provide long-term returns, by a combination of both capital growth and income generation.


This fund will be invested in a portfolio that is considered mainly medium risk investments with the intention of generating long-term returns.

Fund of Funds £32.1m GBP £1000 lump sum, £25 per month 12.00 noon (UK) 12.00 noon (UK) 16 June 2008 Accumulation Sinfonia Asset Management Ltd BNP Paribas Investment Partners UK Ltd Investment Fund Services Ltd 0.4% (last 12 months up to 28th February 2017)1.01% (includes AMC of 0.65%)1 Apr / 1 Oct 30 Nov / 31 May

% Growth

Cautious Managed Portfolio vs. Risk Managed 4* Benchmark*Performance Pack From 16/06/2008 to 28/02/2017

0

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70

IFSL Sinfonia Cautious Managed Portfolio A Acc 66.32Risk Managed 4 Benchmark 78.39

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Key:

UK Equities 22.6%

UK Government 21.2%


Global Bonds 14.1%


US Equities 6.5%

Money Market 4.8%



Cash 0.8%

Japan Equities 0.8%


IFSL Sinfonia Cautious Managed Portfolio

YTD 31.12.16

TO 28.02.17

3 MTHSSINCE

LAUNCH

16.06.08


TO 28.02.17

Portfolio (%) 1.8 3.8 66.3 15.2


2016 2015 2014 2013 2012

13.5 1.2 5.2 10.1 9.7


Fund Facts


OEIC: Fund of Funds

IFSL Sinfonia Income & Growth Portfolio February 2017




BNP InstiCash Fund - GBP 7.40%


TOTAL 63.75%



*31% FTSE All Shares, 27% IBOXX GBP Corporate, 12% MSCI Daily TR Net USA, 9% MSCI Daily Net TR Europe Ex UK, 6% MSCI Daily TR Net EM 6%, 5% Cash Index LIBOR UK 3 Months, 5% JPM GBI Global, 5% FTSE Actuaries UK Conventional Gilts All Stocks

Source: BNPP IP

Performance from 16/06/2008 to 28/02/2017, Net of fees, expressed in GBP value

IFSL Sinfonia Income & Growth Portfolio August 2016

UK Equities 30.6%


US Equities 10.8%

Global Bonds 8.7%



Money Market 7.4%

Japan Equities 5.5%


Cash 0.9%


To provide income and capital growth for investors over the long-term.


This fund will be invested in a portfolio that is considered to be mainly medium and high risk investments with the intention of generating long term returns.

Fund of Funds £24.6m GBP £1000 lump sum, £25 per month 12.00 noon (UK) 12.00 noon (UK) 16 June 2008 Accumulation & Income Sinfonia Asset Management Ltd BNP Paribas Investment Partners UK Ltd Investment Fund Services Ltd 1.0% (last 12 months up to 28th February 2017)1.10% (includes AMC of 0.65%)1 Oct / 1 Apr 30 Nov / 31 May

Key: IFSL Sinfonia Income and Growth Portfolio A Acc 72.72Risk Managed 5 Benchmark 77.62


UK Equities 30.6%


US Equities 10.8%

Global Bonds 8.7%



Money Market 7.4%

Japan Equities 5.5%


Cash 0.9%


IFSL Sinfonia Income & Growth Portfolio

YTD 31.12.16

TO 28.02.17

3 MTHSSINCE

LAUNCH

16.06.08


TO 28.02.17

Portfolio (%) 2.3 5.1 72.7 18.6


2016 2015 2014 2013 2012

13.7 1.6 5.3 12.2 11.6

% Growth Performance Pack From 16/06/2008 to 28/02/2017

0

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20

-20

30

40

50

60

70

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Income & Growth Portfolio vs. Risk Managed 5*

September 2015IFSL Sinfonia Balanced Managed Portfolio August 2016

UK Equities 32.5% UK Corporate Bonds 17.5% US Equities 11.3% European Equities 8.5% Money Market 6.7% Japan Equities 5.7% Asian Equities ex Japan 5.0% Emerging Markets Equities 5.0% UK Government Bonds 4.2% Cash 1.4% Global Bonds 1.1% Mixed Allocation 1.0% Absolute Return 0.1%


Fund Facts


OEIC: Fund of Funds

IFSL Sinfonia Balanced Managed Portfolio February 2017

Top 5 holdings





Vanguard S&P 500 7.06%

TOTAL 64.25%



* 33% FTSE All Shares, 22% IBOXX GBP Corporate, 13% MSCI Daily TR Net USA, 9% MSCI Daily Net TR Europe Ex UK, 6% MSCI Daily Net Japan, 5% MSCI Daily TR Net EM, 5% MSCI Daily TR Net Pacific Ex Japan, 5% Cash Index LIBOR UK 3months, 1% JPM GBI Global, 1% FTSE Actuaries UK Conventional Gilts All Stocks

Source: BNPP IPPerformance from 16/06/2008 to 28/02/2017, Net of fees, expressed in GBP value


Tactical Asset Allocation

UK Equities 32.5% UK Corporate Bonds 17.5% US Equities 11.3% European Equities 8.5% Money Market 6.7% Japan Equities 5.7% Asian Equities ex Japan 5.0% Emerging Markets Equities 5.0% UK Government Bonds 4.2% Cash 1.4% Global Bonds 1.1% Mixed Allocation 1.0% Absolute Return 0.1%


To provide medium to long-term capital growth.

The Sub-Fund’s investment objective will be achieved by investing in a diversified portfolio of fixed interest securities and equities, as well as warrants, and money market instruments, primarily through investment in a portfolio of collective investment schemes. The Sub-Fund will typically be invested in a global portfolio of assets but may focus on UK and European assets.

This fund will be invested in a portfolio that is considered to be mainly medium to high risk investments over the long-term.


Balanced Managed Portfolio vs. Risk Managed 6*Performance Pack From 16/06/2008 to 28/02/2017

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70

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

IFSL Sinfonia Balanced Managed Portfolio

YTD 31.12.16

TO 28.02.17

3 MTHSSINCE

LAUNCH

16.06.08


TO 28.02.17

Portfolio (%) 2.8 5.8 70.3 21.7


2016 2015 2014 2013 2012

15.4 0.8 5.9 13.2 13.1

% Growth

Key: IFSL Sinfonia Balanced Managed Portfolio A Acc 70.32Risk Managed 6 Benchmark 73.72


Fund Facts


OEIC: Fund of Funds

IFSL Sinfonia Adventurous Growth Portfolio February 2017

JPMorgan fund ICVC - UK Active Index Plus 19.61%



Parvest Equity Pacific ex-Japan 6.48%


TOTAL 64.22%



* 10% MSCI Daily TR Net EM (NR) + 9% MSCI Daily TR Net Pacific Ex Japan (NR) + 11% MSCI Daily TR Net USA (NR) + 1% Cash Index LIBOR UK 3 Months (RI) + 8% MSCI Daily Net TR Europe Ex UK (NR) + 5% MSCI Daily TR Net Japan (NR) + 39% FTSE All Shares (NR) - (Calculated) + 17% IBOXX GBP Corporate (NR) -- (Calculated)

Source: BNPP IP Performance from 16/06/2008 to 28/02/2017, Net of fees, expressed in GBP value


IFSL Sinfonia Adventurous Growth Portfolio August 2016

UK Equities 38.8%


US Equities 9.9%

Emerging Markets Equities 9.9%

Asian Equities ex Japan 9.0%


Japan Equities 4.6%


Money Market 2.4%


Cash 1.0%


To provide long-term capital growth.

The Sub-Fund’s investment objective will be achieved by investing in a diversified portfolio of fixed interest securities and equities, as well as warrants, and money market instruments, through investment in a portfolio of collective investment schemes. The Sub-Fund will typically be invested in a global portfolio of assets but may also focus on UK assets.

This fund will be invested in a portfolio that is considered to be mainly medium to high risk investments over the long-term.


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% Growth

Adventurous Growth Portfolio vs. Risk Managed 7*Performance Pack From 16/06/2008 to 28/02/2017

Key: IFSL Sinfonia Adventurous Portfolio A Acc 71.42Risk Managed 7 Benchmark 70.92

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


UK Equities 38.8%


US Equities 9.9%

Emerging Markets Equities 9.9%

Asian Equities ex Japan 9.0%


Japan Equities 4.6%


Money Market 2.4%


Cash 1.0%

IFSL Sinfonia Adventurous Growth Portfolio

YTD 31.12.16

TO 28.02.17

3 MTHSSINCE

LAUNCH

16.06.08


TO 28.02.17

Portfolio (%) 3.7 6.8 71.4 25.1


2016 2015 2014 2013 2012

17.0 -0.4 5.1 15.4 13.2

BNP Paribas Investment Partners UK Ltd

The Multi-Asset Solutions, part of BNP Paribas Investment Partners manage the selected funds in the IFSL Sinfonia portfolios on a day-to-day basis, taking into account the prevailing market conditions and have an extremely robust and comprehensive process for selecting the funds in the portfolios giving investors in the IFSL Sinfonia OEIC access to specialist investment managers that may not be available to the retail investor.

Multi-Asset Solutions is the dedicated asset allocation capability within BNP Paribas Investment Partners, offering an extensive range of tailored multi-asset solutions for institutional and retail clients. The team has been in place since 2002 and has developed a strong expertise in both strategic and tactical asset allocation. The team comprises of 50 investment professionals located across Europe, the US and Asia and runs over £50bn of assets (31/12/2016).

Multi-Asset Solutions works with FundQuest, the fund selection specialist of BNP Paribas Investment Partners. FundQuest has a team of 28 professionals located in Paris, London and Singapore, proposing funds selection around the world and Model Portfolio activity.

As a totally independent and unbiased organisation Multi-Asset Solutions have access to the widest range of research and resources available enabling investments to be chosen that are appropriate to meet the objectives of the Portfolios.

Investment Management Team

IFSL Sinfonia OEIC Portfolios February 2017

The IFSL Sinfonia OEIC portfolios are available via a wide range of platforms and providers for ISAs, OEICs, SIPPs, pensions and onshore and offshore bonds.

For full details of where the funds are available please visit our website: www.sinfonia.com

The income generated for the IFSL Sinfonia Income Portfolio and IFSL Sinfonia Income & Growth Portfolios is based on natural income whereby distributions are generated by the underlying assets of the fund. This can include dividends from equities or interest from fixed interest holdings.

Quarterly or bi-annual income distributions can vary due to the synchronisation of the underlying fund distributions. E.g. if the underlying fund pays half year dividends on 31st March then that income will be paid in the following quarter’s distributions for the IFSL Portfolios.

Important Information

Past performance is not a guide to the future performance. Investments can go down as well as up and investors may not get back the amount originally invested. This can be as a result of market movements and exchange rates between currencies. The Fund may invest in fixed interest funds, which are subject to market and credit risk and will be impacted by interest rates. The Fund’s underlying investments may include emerging markets which may be less liquid and more volatile than more developed markets.

This document has been approved by BNP Paribas Investment Partners UK Ltd and Investment Fund Services Limited. Investment Fund Services Limited is authorised and regulated by the FCA.

BNP Paribas Investment Partners UK Ltd, the Investment Manager, is authorised and regulated by the Financial Conduct Authority.

Sinfonia Asset Management Ltd. is not authorised or regulated by the Financial Conduct Authority.

If you do not understand any part of this document or you require guidance please obtain independent advice. Any opinions or statements included in this document constitute the judgment of BNP Paribas Investment Partners at the time specified and may be subject to change without notice.

No representation or warranty, express or implied, is made to the accuracy or completeness of the information contained herein, and BNP Paribas Investment Partners UK Ltd accepts no liability for any loss arising, whether direct or indirect, caused by the use of any part of such information.

SINFONIA ASSET MANAGEMENT LTD., 5 LISTER HILL, HORSFORTH, LEEDS, WEST YORKSHIRE, LS18 5AZ. COMPANY NO: 06309491. REGISTERED IN ENGLAND AND WALES

Investment Opportunities

Providers and Platforms

Natural Income

OEIC

ISA TRANSFERS

PENSION

ISA

SIPP

BONDS

To contact SinfoniaFor more information visit our website at www.sinfonia.com

To invest in IFSL Sinfonia OEIC Portfolios please contact your financial adviser.

For adviser use onlyAdviser Service Line: 0808 178 9322

Leeds Head Office: 0113 239 0025

Email: [email protected]

Website: www.sinfonia.com

http://www.sinfonia.com

To contact SinfoniaFor more information visit our website at www.sinfonia.com

To invest in IFSL Sinfonia OEIC Portfolios please contact your financial adviser.

For adviser use onlyAdviser Service Line: 0808 178 9322

Leeds Head Office: 0113 239 0025

Email: [email protected]

Website: www.sinfonia.com