Mercer Jelf Managed Portfolio Service Risk Profile 6 FACTSHEET - April 2016

OBJECTIVE

To grow the capital value of the strategy as well as to generate some degree of income. MJMPS 6 is designed for an investor with a time horizon of more than five years, and a medium tolerance for risk, who can accept moderate variation or disruption to capital value or current income in order to achieve their longer-term objective. The strategy is a diversified portfolio comprised predominantly of funds investing in domestic and international equities, with some exposure to funds investing in fixed interest. There may also be exposure to funds investing in ‘alternatives’ such as commercial property and absolute return strategies.

MARKET COMMENTARY ASSET CLASS / GEOGRAPHICAL ALLOCATION The uncertainty over the outlook for The political distraction caused by the migration crisis hasn’t derailed eurozone global growth, which caused commodity As at 31 March 2016 price weakness and financial market economic activity with growth of 1.5% volatility early this year, has eased. The expected this year. Near zero inflation oil price has recovered from a low of $27 has meant the European Central Bank in January to $40, and along with it the continues with an aggressive monetary share prices of many resource companies policy including the almost unprecedented and equity markets in general. While move into negative interest rates which stabilisation is encouraging, unfortunately may yet prove a mistake - it hasn’t raised there are few signs yet of a inflation expectations, weakened the re-acceleration in activity leaving global currency or boosted growth as expected growth (GDP) estimates between 2-2.5%, and risks undermining the nascent commercial banking recovery. bordering on ‘recession’ by some Far East 2.3% Property 7.6% measures. While most of the data in recent months Japan 2.9% Fixed Interest 15.0% from China and other developing Emerging 3.3% 19.1% Equity markets ended the quarter roughly Hedge Funds 5.0% UK 32.9% where they began, with the US ahead economies has been relatively Cont'l 5.0% slightly while the UK, Europe and Japan disappointing there are glimmers of hope. Cash 6.8% were behind marginally. The top The jump in Chinese credit growth earlier this year, followed more recently by an performer over the three months was the PORTFOLIO HOLDINGS FTSE Emerging Market index with a gain improvement in the manufacturing and of over 8%. The UK 10-year gilt yield service business surveys, suggest a small upturn may be underway. We have also UK Equity: 32.9% ended the quarter at 1.4%, down from 2% Liontrust Macro Equity Income Fund at the start of the year and making bonds observed a small improvement in Korean exports - often a good proxy for global Investec UK Alpha the best performing asset class Majedie UK Equity year-to-date. trade - where the rate of decline has slowed beating expectations. At the CF Woodford Equity Income The advanced economies show signs of margin the probability of a cyclical upturn Vanguard FTSE UK All Share Index has increased. relative stability with GDP estimated to International Equity: 32.7% expand by 1.7% vs. 1.8% last year. Vanguard US Equity Index Recent US economic data has surprised The low inflation and zero/negative interest rate environment will keep bond Polar Capital North American on the upside helped by an unusually mild JPM Emerging Markets Income winter and strong consumer spending. US yields well below average. For companies JOHCM Continental European interest rate policy remains something of and equity investors the main challenge is First State Asia Pacific Leaders an uncertainty with markets discounting that slowing growth brought about by just two small rises this year which is a ongoing deleveraging results in lower BlackRock Continental European Income more optimistic outlook than the Federal sales and places greater emphasis on Schroder Tokyo Reserve’s forecast. cost cutting. Estimates for 2016 global JOHCM Japan corporate earnings growth have been Fixed Interest & Cash: 21.8% UK economic activity is also supported by reduced to 3%, with downgrades across L&G All Stocks Gilt Index a buoyant consumer and firm house most sectors. This leaves relatively high prices. Some of this is substantiated by equity valuations (P/E 16x) vulnerable to Cash (£) higher incomes and a strong jobs market earnings disappointments. Of course L&G All Stocks Index-Linked Gilt Index but credit growth is expanding rapidly some companies are still growing and Julius Baer Absolute Return Bond £-Hedged once again. CPI inflation is well below the many are producing attractive and PIMCO GIS Global Invt Grade Credit £-Hedged sustainable dividends, especially for UK Bank of ’s 2% target but recent Alternatives: 12.6% sterling depreciation means inflation will investors where the yield of 4% compares favourably with the global average of Aberdeen UK Property Feeder Unit Trust edge up to 1% later this year, although F&C Property Growth and Income interest rates are still not expected to rise 2.8%. Invesco Perpetual Global Targeted Returns until 2017. Newton Real Return Old Mutual Global Equity Abs Return MERCER JELF MANAGED PORTFOLIO SERVICE - Risk Profile 6 INCEPTION : 02 November 2009

PORTFOLIO PERFORMANCE (02 November 2009 to 31 March 2016) PORTFOLIO MANAGERS

80 Julian Menges

Chartered FCSI DipPFS

60 Julian joined Quilter Cheviot in 2010. He sits on the firm’s Asset Allocation, Investment Funds and 40 Fixed Interest Committees. Prior to joining Quilter Cheviot, Julian was Head of Portfolio Management at Heartwood Wealth 20 Management. He started his career in investment management in 1986 at Williams de Broe as a

% GROWTH sales trader in the bond market.

0 Benjamin Mountain

CFA -20 Benjamin is Co-Director of Investments for the Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Multi-Asset Team. Risk Profile 6 Cash Benjamin joined Quilter & Co in 1999 and is Source: Quilter Cheviot, Lipper. Model performance is shown in GBP, gross of management fees with all income responsible for the reinvested, actual returns may vary. Past performance is not a guarantee of future results. Investment Division’s Managed Portfolio Services and the Fund Research team. Benjamin is a member of Quilter Name 1 Year 3 Year 5 Year Since Inception Cheviot’s Investment Funds Committee and Alternatives Committee. He is a Chartered Risk Profile 6 -1.3% 16.1% 33.8% 61.8% Financial Analyst (CFA) Charterholder and a Member of the Chartered Institute for Securities & IA Mixed Investment 40-85% Shares TR -3.0% 13.8% 29.0% 53.0% Investment. Cash 0.6% 1.7% 3.3% 4.4%

Source: Quilter Cheviot, Lipper (31 March 2016) ANNUALISED VOLATILITY Upper Level Last 3 Years Since Launch Risk Profile 6 15.0% 7.1% 8.0% Mercer Jelf has appointed Quilter Cheviot as the discretionary investment Source: Quilter Cheviot, Lipper (31 March 2016) manager for the Mercer Jelf Managed KEY FACTS Portfolio Service.

Estimated Gross Yield 2.2%

IMPORTANT INFORMATION

Estimated data over a 12 month period provided by Quilter Cheviot, Lipper (31 March 2016). The level of yield actually achieved on your investment will be dependent on the tax treatment of the product you have invested in and your personal tax circumstances.

IA Sector returns are net of the underlying manager fund charges whilst benchmarks will not include any charges.

Volatility is a measure of the risk of price fluctuations of an investment, or a portfolio of investments. For reference, UK Government Bonds (an example of a lower risk asset) have a long term volatility of approximately 5–6% and UK Equities (an example of a higher risk asset) of 15% - using annualised 20 year data.

CONTACT DETAILS The value of investments and the income from them can go down as well as up. You may not recover what you invest. Jon Baker Quilter Cheviot Limited is registered in England with number 01923571, registered office at One Head of Marketing – Financial Services Kingsway, WC2B 6AN. Quilter Cheviot Limited is a member of the London Stock Exchange and Mercer Jelf Financial Planning authorised and regulated by the UK Financial Conduct Authority. This document is not a solicitation or Hillside Court an offer to buy or sell any security. The information on which the document is based is deemed to be Bowling Hill reliable, but we have not independently verified such information and we do not guarantee its accuracy Chipping Sodbury or completeness. Changes in exchange rates may have an adverse effect on the value, price or income Bristol BS37 6JX of foreign currency denominated securities. The securities and investment services discussed in this factsheet may not be suitable for all recipients. Quilter Cheviot Limited recommends that investors Tel: 01454 525007 independently evaluate particular investments and strategies, and encourages investors to seek the Email: [email protected] advice of Mercer Jelf Financial Planning. The appropriateness of a particular strategy will depend on an investor’s individual circumstances and objectives.