Managed Portfolio Service (MPS)
1st Quarter 2016
Maximum Growth
Objective Key Information
Maximum Growth is our highest risk asset model, and targets long-term capital Launch Date September 2014 growth. The model invests almost exclusively in equities, with a substantial Estimated Portfolio Yield* 1.65% weightings overseas, although limited, 1Yr Annual Volatility** 11.41% tactical positions in other asset classes are Annual Management Charge (AMC) 0.30% plus VAT permitted. Investors considering this asset On-going Charges Figure (OCF) 1.12% model should accept and expect a very high level of volatility.
Asset Allocation (as at 31 st March 2016) Performance %
Cumulative performance from inception to 31 st March
Equities 89% 115
Quality Bonds 0% 110 High Yield Bonds 0% 105 Property 0%
Hedge 3% 100 Commodities 0% 95 Cash GBP 7%
90 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16
Maximum Growth ARC Sterling Equity Risk PCI
Top Ten Holdings (as at 31 st March 2016) Discrete Performance % as at 31 st March 2016 2016 2015 2014 2013 2012 Fund % HSBC American Index 7 Maximum Growth 0.2 N/A N/A N/A N/A
JO Hambro CM UK Opportunities 7 ARC Equity Risk PCI -3.1 8.8 6.2 13.7 -0.7 Legg Mason US Smaller Companies 7
Liontrust Special Situations 7 Cumulative Performance % as at 31 st March 2016 3m 6m 1y 3y 5y Newton Global Higher Income 7
Old Mutual UK Select Smaller 7 Maximum Growth 1.2 8.4 0.2 N/A N/A Companies
ARC Equity Risk PCI -0.4 4.4 -3.1 12.0 26.4 Threadneedle UK Equity Income 7
Stewart Investors Asia Pacific 6 The value of investments, and the income derived from them, can go down as Leaders well as up and you can get back less than you originally invested. Past
performance is not a guide to future performance. This factsheet does not Fidelity Emerging Markets 5 constitute personal advice. If you are in doubt as to the suitability of an
investment please contact your adviser. Henderson European Focus 5
Managed Portfolio Service (MPS)
Market Commentary
The month saw a significant rebound in prices across risk assets, as investors shrugged off fears of a US recession. Dovish statements from the US Federal Reserve and further easing measures announced by the European Central Bank (ECB) also offered support to risk sentiment. In particular, commodities, emerging market equities and high yield corporate bonds enjoyed strong returns, whilst UK gilts were little changed.
In spite of solid employment reports and rising inflation data, the US Federal Reserve adopted a more cautious stance by lowering its projections for future interest-rate rises in response to global economic and financial uncertainty. As expected, the European Central Bank also delivered a further stimulus package designed to boost inflation and support the recovery. Measures proposed included a scheme to encourage direct bank lending as well as purchases of non-financial quality corporate bonds. However, whilst the scope of the proposals succeeded in surprising investors, the initial euphoria was nullified by the suggestion, from the European Central Bank president, that rates would not be cut further.
Elsewhere the latest releases of manufacturing activity from China pointed to modest signs of recovery in the sector. For some investors the data helped to ease concerns over the health of the Chinese economy and suggested that policy actions recently undertaken to counter slowing growth may have begun to take hold.
IMPORTANT INFORMATION The data contained in this factsheet is based on the model portfolio held directly with Tilney Investment Management via the Pershing platform. Where the model portfolio is being accessed via an external platform, the underlying funds held may differ due to fund and share class availability . *This figure is based on the yield distributed from each underlying fund held within the portfolio as at 31 st March 2016 over the previous 12 months and is weighted based on current asset allocation rather than the a actual yield produced by the portfolio. Therefore the actual yield produced may be lower or higher than the estimated yield figure quoted. Yield is gross of tax and charges. **This figure is based on the historic volatility of each underlying fund held within the portfolio as at 31 st March 2016 over the previous 12 months.
BENCHMARK INFORMATION Performance data is sourced from ARC and Tilney Bestinvest. Tilney Bestinvest performance is net of fees (0.36%) with income reinvested and based on the average return from the Managed Portfolio Service. For further information on ARC, their Private Client Indices and their methodology please visit www.assetrisk.com. The ARC Private Client Indices (PCI) provide a unique insight into the actual returns being generated by investment managers for their discretionary private client portfolios. They are based on real performance numbers provided by participating investment managers. There are no pre-set asset allocations, no asset class restrictions, no concentration limits, no index performances used. Only actual performance numbers are included in the composition of the indices. The indices provide an accurate reflection of the actual returns that a private client should expect for a given risk appetite. This approach leaves investment managers free to use any and all investment strategies, vehicles and structures in the pursuit of the maximum return per unit of realised volatility. Contributors to the ARC Sterling (GBP) indices include ABN AMRO Asset Management (Guernsey) Ltd, Ashburton (Jersey) Limited, Barclays Wealth Limited, Baring Asset Management (London), Bestinvest, Brooks Macdonald, Cazenove Capital Management Limited, Cheviot Asset Management, City Asset Management, Close Asset Management Ltd, Collins Stewart Wealth Management, Coutts & Co, Credit Suisse, Credit Suisse AG Zurich, Deutsche Bank International Limited, Ermitage Group, GAM, Heartwood Wealth Management, Ingenious Asset Management Limited, Investec Bank (Switzerland) AG, J O Hambro Investment Management, JP Morgan Private Bank, Jupiter Asset Management, Lloyds TSB Private Banking, London and Capital, Merrill Lynch, Mirabaud & Cie, Morgan Stanley Private Wealth Management, Newton Investment Management, PSigma Investment Management Limited, Rathbone Investment Management International, Rensburg Sheppards Investment Management, Rothschild Private Banking, Royal Bank of Canada (UK) Limited, Sarasin & Partners, Schroder & Co Limited, Seven Investment Management, SG Hambros Bank, Smith and Williamson, Standard Bank Jersey Limited, Standard Life Wealth, Stenham Advisors, Taylor Young Investment Management, Thurleigh Investment Managers, UBS AG Jersey Branch, Veritas Asset Management (UK) Limited, Vestra Wealth. Source Asset Rick Consultants (www.assetrisk.com)
Tilney Investment Management is authorised and regulated by the Financial Conduct Authority. Registered in England (No. 02010520). Registered office: 6 Chesterfield Gardens, Mayfair, W1J 5BQ.