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portfolio guide and research October 2012
ortfolios o us
ortfolios p o us
1
TARG
ETIN
G V
OLA
TILITY
Our OPUS Portfolios combine different asset classes, with the aim of maximising the expected returns for a given level of risk. This is achieved by adopting the principles of Modern Portfolio Theory. The theory states that the risk of a portfolio should be considered as a whole, rather than in terms of its individual assets. The values of the individual investments within the portfolio will fluctuate, but because they generally behave differently from each other, the peaks and troughs may cancel each other out. The asset allocation for each OPUS Portfolio is calculated using a complex mathematical formula known as Mean Variance Optimisation, an integral part of Modern Portfolio Theory. This process uses expected rates of return and implied volatility for each asset class to compile a portfolio. Towers Watson’s current long-term return and volatility assumptions relating to the different asset classes being used within our OPUS Portfolios are as follows: ASSET RETURN VOLATILITY
Cash 1.92% 1.34%
UK Fixed Interest 3.30% 7.02%
International Fixed Interest 2.79% 8.93%
Property 6.62% 10.16%
UK Equities 6.71% 20.65%
International Equities 7.70% 19.87%
EXPECTED RETURNS From these return assumptions, it is possible to calculate the implied volatility of each OPUS Portfolio to two standard deviations. This means that, based on Towers Watson’s current expected rates of long term returns and volatility assumptions, all returns are expected to be between these extremes in 95 years out of 100. This is often described as a 95% confidence level; however these figures should not be taken as a projection of the likely returns from OPUS Portfolios.
-31.33%-27.88%
-24.77%-21.62%
-18.53%-15.43%-12.45%
-9.44%-5.27%
-1.28%
46.67%42.96%
38.95%34.94%
30.91%26.85%
22.71%18.56%
6.72%12.73%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
1 2 3 4 5 6 7 8 9 10
Risk Score
Maximum expected annual LOSS Maximum expected annual GAIN
Figures are shown gross, i.e. before tax and charges. It is important that you check the ‘risk score’ of your current portfolio(s) and let us know if you are no longer comfortable with the expected returns of your portfolio(s), particularly the maximum expected loss.
2
TOW
ERS
WA
TSO
N R
EVIE
W –
Sep
tem
ber 2
012 As the objective of OPUS Portfolios is that the asset allocations aim to
achieve the highest expected return for each risk level, it is vital that the portfolios continue to remain in line with a changing market. Together with advice from Towers Watson, we review the OPUS Portfolio asset allocations on a quarterly basis, to ensure that they continue to meet the level of risk they are designed to achieve and that they reflect the current economic outlook. This quarter, Towers Watson has made changes to the economic assumptions, with the more significant changes applying to cash and fixed interest. Towers Watson’s comments regarding the major asset classes are as follows: INFLATION, INTEREST RATES AND FIXED INTEREST A general fall in bond yields has resulted in, as you would expect, a reduction in the expected return assumptions for both UK and International Fixed Interest. The changes in the Fixed Interest assumptions have seen a very small allocation to International Fixed Interest in certain ISA portfolios, something not seen for a number of years. International Fixed Interest’s volatility has decreased slightly whilst its return assumption has not fallen by as much as for UK Fixed Interest (which has also seen a slight increase in volatility). This means that although still unattractive in the wider scheme of things, the 10 year return volatility assumption for International Fixed Interest is slightly more attractive this quarter – particularly with its diversification benefit. Although the longer term return assumption for Cash has also fallen, the relative nature of these falls to other asset classes, plus revised annual cost assumptions, sees a slight increase in Cash, at the expense of Fixed Interest at the lower risk levels, this quarter. COMMERCIAL PROPERTY There have been no material changes or comments with regards to Commercial Property, although it is worth noting that Towers Watson continues to recommend a 15% ‘cap’ for property exposure given the relative illiquidity of the asset class.
EQUITIES Equity assumptions remain relatively unchanged as do the resulting asset allocations. RISK AND CORRELATION There have been no specific comments on risk and correlation this quarter. SUMMARY Given the above changes to economic assumptions, return assumptions and volatility, there have been a number of changes to asset allocations for the current quarter.
3
ASS
ET A
LLO
CA
TION
S –
Oct
ober
201
2
In light of Towers Watson’s quarterly review, the asset allocation models incorporated into our OPUS Portfolios will now be as follows: GROWTH PORTFOLIOS
INDIVIDUAL SAVINGS ACCOUNTS
Risk Score C
ash
/Mon
ey
Mar
ket
UK F
ixed
In
tere
st
Inte
rnat
iona
l Fi
xed
Inte
rest
Prop
erty
UK E
quiti
es
Inte
rnat
iona
l Eq
uitie
s
1 - - - - - - 2 - - - - - - 3 0% 68% 1% 15% 0% 16% 4 0% 53% 0% 15% 0% 32% 5 0% 40% 0% 15% 0% 45% 6 0% 31% 0% 15% 0% 54% 7 0% 20% 0% 15% 1% 64% 8 0% 9% 0% 15% 1% 75% 9 0% 0% 0% 15% 0% 85%
10 0% 0% 0% 3% 0% 97% NB. Portfolios at risk scores 1 and 2 are not available for ISA investments as this would suggest using a Cash ISA rather than a Stocks & Shares ISA.
PENSIONS
Risk Score C
ash
/Mon
ey
Mar
ket
UK F
ixed
In
tere
st
Inte
rnat
iona
l Fi
xed
Inte
rest
Prop
erty
UK E
quiti
es
Inte
rnat
iona
l Eq
uitie
s
1 73% 12% 0% 14% 0% 1% 2 47% 24% 0% 15% 0% 14% 3 24% 35% 0% 15% 0% 26% 4 8% 43% 0% 15% 0% 34% 5 0% 40% 0% 15% 0% 45% 6 0% 31% 0% 15% 0% 54% 7 0% 20% 0% 15% 1% 64% 8 0% 9% 0% 15% 1% 75% 9 0% 0% 0% 15% 0% 85%
10 0% 0% 0% 3% 0% 97%
COLLECTIVES
Risk Score C
ash
/Mon
ey
Mar
ket
UK F
ixed
In
tere
st
Inte
rnat
iona
l Fi
xed
Inte
rest
Prop
erty
UK E
quiti
es
Inte
rnat
iona
l Eq
uitie
s
1 76% 10% 0% 14% 0% 0% 2 53% 17% 0% 15% 0% 15% 3 33% 24% 0% 15% 1% 27% 4 20% 28% 0% 15% 2% 35% 5 7% 32% 0% 15% 2% 44% 6 0% 30% 0% 15% 3% 52% 7 0% 19% 0% 15% 4% 62% 8 0% 9% 0% 15% 5% 71% 9 0% 0% 0% 15% 0% 85%
10 0% 0% 0% 3% 0% 97%
4
ASS
ET A
LLO
CA
TION
S –
Oct
ober
201
2 INVESTMENT BONDS
Risk Score C
ash
/Mon
ey
Mar
ket
UK F
ixed
In
tere
st
Inte
rnat
iona
l Fi
xed
Inte
rest
Prop
erty
UK E
quiti
es
Inte
rnat
iona
l Eq
uitie
s
1 76% 10% 0% 14% 0% 0% 2 52% 18% 0% 15% 0% 15% 3 32% 24% 0% 15% 2% 27% 4 19% 29% 0% 15% 3% 34% 5 6% 34% 0% 15% 4% 41% 6 0% 29% 0% 15% 5% 51% 7 0% 18% 0% 15% 7% 60% 8 0% 8% 0% 15% 8% 69% 9 0% 0% 0% 15% 0% 85%
10 0% 0% 0% 3% 0% 97% The asset allocations differ slightly between each ‘tax wrapper’ due to the differences in taxation rates applicable to the various asset classes. The volatility targets for each risk level remain constant, between each tax wrapper, and therefore take account of the differences in taxation liabilities.
5
INCOME PORTFOLIOS
INDIVIDUAL SAVINGS ACCOUNTS – ESTIMATED YIELDS Risk Score As at 5th October 2012*
3 4.26% 4 4.27% 5 4.27% 6 4.28% 7 4.28%
NB. Again, there are no risk scores 1 and 2 for ISA investments as this would suggest using a Cash ISA rather than a Stocks & Shares ISA.
COLLECTIVES – ESTIMATED YIELDS Risk Score As at 5th October 2012*
1 1.24% 2 2.11% 3 3.64% 4 3.82% 5 3.90% 6 3.99% 7 4.08%
* Yields are estimated, net of tax for a basic rate tax-payer, and not guaranteed. We do not run income portfolios above risk score 7, as we feel the volatility would be too great for those clients seeking an immediate income.
ASS
ET A
LLO
CA
TION
S –
Oct
ober
201
2 INDIVIDUAL SAVINGS ACCOUNTS
Risk Score C
ash
/Mon
ey
Mar
ket
UK F
ixed
In
tere
st
Inte
rnat
iona
l Fi
xed
Inte
rest
Prop
erty
UK E
quiti
es
Inte
rnat
iona
l Eq
uitie
s
1 - - - - - - 2 - - - - - - 3 0% 71% 0% 15% 14% 0% 4 0% 55% 0% 15% 30% 0% 5 0% 43% 0% 15% 42% 0% 6 0% 33% 0% 15% 52% 0% 7 0% 23% 0% 15% 62% 0% 8 - - - - - - 9 - - - - - -
10 - - - - - -
COLLECTIVES
Risk Score C
ash
/Mon
ey
Mar
ket
UK F
ixed
In
tere
st
Inte
rnat
iona
l Fi
xed
Inte
rest
Prop
erty
UK E
quiti
es
Inte
rnat
iona
l Eq
uitie
s
1 73% 11% 0% 15% 1% 0% 2 49% 22% 0% 15% 14% 0% 3 0% 71% 0% 15% 14% 0% 4 0% 53% 2% 15% 30% 0% 5 0% 43% 0% 15% 42% 0% 6 0% 33% 0% 15% 52% 0% 7 0% 23% 0% 15% 62% 0% 8 - - - - - - 9 - - - - - -
10 - - - - - -
6
UK FIXED INTEREST (ALL PORTFOLIOS) The minutes from the Monetary Policy Committee meetings over the last quarter show unanimous voting with regard to interest rate policy with all nine members having voted for no change to bank base rate, i.e. maintaining base rate at 0.5%, in July, August and September. We also know that base rate was maintained at 0.5% during October’s meeting, although the minutes have not yet been published. As we reported last quarter, in July the Committee carried a vote to increase quantitative easing QE by a further £50billion, i.e. to a new total of £375billion, albeit we did not know the actual votes for and against. We now know that the Committee voted 7 to 2 in favour of this increase, with two members having voted to maintain the previous level of QE. In August and September, the Committee voted unanimously to maintain QE at the new level of £375billion and again there was no change during October’s meeting. We feel that the above indicates the continued likelihood that base rate will remain unchanged for considerably longer than many people expected, something we have been suggesting for some time. Taking the above into account, we are not proposing any changes to the current tactical asset allocation within the fixed interest sector, which will therefore remain as follows: Asset / Sector
Gilts 15%
Index Linked Gilts 7½%
Corporate Bonds 45%
Strategic Corporate Bonds 25%
High Yield Corporate Bonds 7½%
PROPERTY (ALL PORTFOLIOS) We continue to favour funds investing in ‘bricks and mortar’, i.e. physical property, over those funds which invest in the shares of property companies. These latter funds we consider to be specialist equity funds which do not, therefore, suit our diversification process. UK EQUITIES (GROWTH PORTFOLIOS) We are not proposing any changes to the current diversification across UK Equities, being approximately: Asset / Sector
UK All Companies 70%
UK Equity Income 20%
UK Smaller Companies 10%
INTERNATIONAL EQUITIES (GROWTH PORTFOLIOS) We are not proposing any changes to the asset allocations, within the International Equity sector, which remain, approximately, as follows: Asset / Sector Europe (excluding UK) 40%
North America 20%
Japan 10%
Far East (excluding Japan) 15%
Global Growth/Specialist 15%
TAC
TICA
L A
LLO
CA
TION
S –
Oct
ober
201
2
7
FUN
D RE
SEA
RCH
– O
ctob
er 2
012
Each quarter, we carry out a full review of the UK based fund universe, in order to ensure that the funds being utilised within our portfolios remain appropriate and warrant continued inclusion in our OPUS Portfolios. This quarter’s review covered 2,822 funds and we continue to include our analysis of all sectors and not just the sectors in which we currently recommend funds. This will enable you to review any other holdings you may have in order to see whether these pass our research criteria. Basically, if any fund you hold is not listed here, it does not currently pass our research criteria and you should contact us to discuss this. The funds which pass our research criteria, following this quarter’s research, for each asset class are as follows, with the funds in bold being the funds we currently recommend: CASH/MONEY MARKET
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
SHO
RT TE
RM
MO
NEY
MA
RKET
BlackRock Cash 5.55 Yes 0.14 No
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
SHO
RT TE
RM
MO
NEY
MA
RKET
Premier UK Money Market 3.75 Yes 1.07 No We are therefore continuing to recommend the BlackRock Cash and Premier UK Money Market funds which continue to meet our selection criteria. It should be noted that Citywire, OBSR and Standard & Poor’s do not provide ratings for this sector.
UK FIXED INTEREST
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
GIL
TS
Allianz Gilt Yield 4.65 Yes 0.57 Yes We continue to recommend the Allianz PIMCO Gilt Yield fund as it continues to meet our selection criteria, being one of very few Gilt funds with an independent rating.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Insight UK Index Linked Bond 4.05 Yes 0.63 No INDE
X-LIN
KED
GIL
TS
L&G All Stocks Index Linked Gilt Index 5.25 Yes -0.05 No
We continue to recommend the L&G All Stocks Index Linked Gilt Index fund for inclusion in our portfolios due to its combination of consistent relative performance and low charges.
8
FUN
D RE
SEA
RCH
– O
ctob
er 2
012 C
onsis
tenc
y Sc
ore
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
M&G Strategic Corporate Bond 4.30 Yes 1.62 Yes
M&G Corporate Bond 4.75 Yes 1.13 Yes
Invesco Perpetual Corporate Bond 4.90 Yes 0.28 Yes STER
LIN
G C
ORP
ORA
TE B
ON
DS
Fidelity MoneyBuilder Income 5.40 Yes 0.93 Yes The three funds recommended in this sector have specifically been chosen due to their different approach to investment and, as such, we would not expect them to perform in a similar manner. This quarter, Invesco Perpetual and Fidelity have very marginally failed individual aspects of our research criteria. However, when combined with the M&G fund, the combination of funds continues to offer what we feel is excellent potential within the sector.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
M&G Optimal Income 4.55 Yes 1.20 Yes
Fidelity Extra Income Distribution 4.90 Yes 0.42 Yes
Fidelity Strategic Bond 4.90 Yes 0.84 Yes
L&G Dynamic Bond 4.90 Yes 0.87 Yes STRA
TEG
IC C
ORP
ORA
TE B
ON
DS
Invesco Perpetual Monthly Income Plus 5.05 Yes 0.12 Yes
We continue to recommend the Invesco Perpetual Monthly Income Plus fund due to its slight exposure to UK equities.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
HIG
H YI
ELD
CO
RPO
RATE
BO
NDS
Kames High Yield Bond 4.40 Yes 0.60 Yes We continue to recommend the Kames High Yield Bond fund as it continues to meet our selection criteria. INTERNATIONAL FIXED INTEREST
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
GLO
BAL
BON
DS
Investec Emerging Markets Local Currency Debt 4.20 Yes 0.62 Yes
We have introduced the Investec fund for those portfolios which now have an allocation to International Fixed Interest. PROPERTY
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Ignis UK Property 5.10 Yes 0.28 No M&G Property Portfolio 6.10 Yes 0.04 No
PRO
PERT
Y
Threadneedle UK Property 6.50 Yes -0.63 No We continue to recommend the property funds of Threadneedle, Ignis and M&G for the geographical diversification they offer.
9
FUN
D RE
SEA
RCH
– O
ctob
er 2
012
UK EQUITIES
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Liontrust Special Situations 3.10 Yes 1.52 Yes
Franklin UK Mid Cap 3.65 Yes 1.23 Yes
F&C UK Mid Cap 3.90 Yes 0.84 Yes
Royal London UK Mid-Cap Growth 3.90 Yes 1.32 Yes
Cazenove UK Opportunities 4.00 Yes 1.57 Yes AXA Framlington UK Select Opportunities 4.10 Yes 1.39 Yes
BlackRock UK Special Situations 4.20 Yes 0.76 Yes
MFM Slater Growth 4.20 Yes 0.89 Yes
SVM UK Growth 4.45 Yes 0.76 Yes
Old Mutual UK Select Mid Cap 4.50 Yes 0.64 Yes
HSBC FTSE 250 Index Retail 4.60 Yes 0.40 Yes
Aviva UK Equity 4.70 Yes 0.84 Yes
Jupiter UK Special Situations 4.75 Yes 0.76 Yes
L&G UK Alpha 4.80 Yes 0.43 Yes
Standard Life UK Equity Unconstrained 4.80 Yes 0.48 Yes
JOHCM UK Opportunities 4.85 Yes 0.58 Yes
Royal London UK Opportunities 4.90 Yes 0.59 Yes
M&G Recovery 4.95 Yes 0.59 Yes
Investec UK Special Situations 5.05 Yes 0.68 Yes
UK A
LL C
OM
PAN
IES
Fidelity UK Select 5.10 Yes 0.41 Yes As the Schroder UK Alpha Plus fund has again failed our selection criteria, we have replaced it with the Cazenove UK Opportunities fund which we now recommend alongside the Liontrust Special Situations, Franklin UK Mid Cap and M&G Recovery funds.
As ever, this clearly illustrates the benefits of diversification between different funds within each sector.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
UK E
QUI
TY &
BO
ND
Ecclesiastical Higher Income 3.95 Yes 1.34 No We continue to recommend the Ecclesiastical Higher Income fund as it continues to meet our selection criteria.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Threadneedle UK Equity Income 4.35 Yes 0.95 Yes
JOHCM UK Equity Income 4.40 Yes 0.87 Yes
Royal London UK Equity Income 4.55 Yes 0.91 Yes
UK E
QUI
TY IN
CO
ME
Threadneedle UK Equity Alpha Income 4.60 Yes 0.48 Yes
As the Invesco Perpetual High Income and Neptune Income funds have again failed our selection criteria this quarter, we have replaced them with the JOHCM UK Equity Income and Royal London UK Equity Income funds which we now recommend alongside the Threadneedle UK Equity Income fund. Again, as ever, this illustrates the benefits of diversification within each sector.
10
FUN
D RE
SEA
RCH
– O
ctob
er 2
012 C
onsis
tenc
y Sc
ore
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Cazenove UK Smaller Co’s 4.20 Yes 0.76 Yes
Investec UK Smaller Co’s 4.30 Yes 1.33 Yes
Standard Life UK Smaller Co’s 4.30 Yes 0.64 Yes
Liontrust UK Smaller Co’s 4.55 Yes 0.53 Yes
UK S
MA
LLER
CO
MPA
NIE
S
Old Mutual UK Select Smaller Co’s 4.90 Yes 0.45 Yes We continue to recommend the Old Mutual UK Select Smaller Companies fund as it continues to meet our selection criteria. INTERNATIONAL EQUITIES
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
BlackRock Continental European 3.85 Yes 1.21 Yes
Threadneedle European Select 3.95 Yes 0.92 No
BlackRock European Dynamic 4.05 Yes 1.35 Yes
Schroder European 4.10 Yes 0.64 Yes
Jupiter European Income 4.40 Yes 1.05 Yes Jupiter European Special Situations 4.50 Yes 0.72 Yes
GLG Esprit Continental Europe 4.55 Yes 0.49 Yes
Schroder European Alpha Plus 4.70 Yes 0.65 Yes
Henderson European Growth 5.05 Yes 0.59 Yes
EURO
PE (E
XCLD
ING
UK)
Liontrust European Growth 5.20 Yes 0.42 Yes
We continue to recommend the Jupiter European Income, Threadneedle European Select and Henderson European Growth funds as they continue to meet our selection criteria.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
EURO
PE
(INC
LUDI
NG
UK)
There are no funds which pass our selection criteria this quarter.
We do not currently recommend any Europe (Including UK) funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
Threadneedle European Smaller Companies 4.45 Yes 0.91 No
EURO
PEA
N
SMA
LLER
CO
MPA
NIE
S
Baring Europe Select 4.85 Yes 0.88 Yes We continue to recommend the Threadneedle European Smaller Companies fund as it continues to meet our selection criteria.
11
FUN
D RE
SEA
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– O
ctob
er 2
012 C
onsis
tenc
y Sc
ore
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
AXA Framlington American 4.55 Yes 0.54 Yes
BlackRock CIF North American Equity Tracker 4.55 Yes 0.34 No
Baillie Gifford American 4.70 Yes 0.41 Yes
GAM North American 4.75 Yes 0.51 Yes
Schroder US Mid Cap 4.80 Yes 0.67 Yes
NO
RTH
AM
ERIC
A
Jupiter North American Income 5.00 Yes 0.61 Yes We continue to recommend the BlackRock CIF North American Equity Tracker fund as it continues to meet our selection criteria
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
NO
RTH
AM
ERIC
A
SMA
LLER
CO
MPA
NIE
S
There are no funds which pass our selection criteria this quarter.
We do not currently recommend any North American Smaller Companies funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
Schroder Tokyo 4.05 Yes 0.87 Yes
JAPA
N
Jupiter Japan Income 4.80 Yes 0.54 Yes
We continue to recommend the Schroder Tokyo fund as it continues to meet our selection criteria.
We do not currently recommend any Japan Smaller Companies funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
Newton Asian Income 3.80 Yes 1.16 Yes
Schroder Asian Income 4.05 Yes 0.96 Yes
First State Asia Pacific Sustainability 4.25 Yes 0.90 Yes
Aberdeen Asia Pacific 4.60 Yes 0.76 Yes
First State Asia Pacific 4.70 Yes 0.86 Yes ASI
A P
AC
IFIC
(EXC
LUDI
NG
JAPA
N)
First State Asia Pacific Leaders 4.90 Yes 0.80 Yes As the Fidelity South East Asia fund has ‘slipped’, quite dramatically, to fail our selection criteria, we have replaced it with the Newton Asian Income fund which we now recommend alongside the First State Asia Pacific Leaders fund. Again, this clearly illustrates the benefits of diversification between different funds, within a sector.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
JAPA
N
SM
ALL
ER C
OM
PAN
IES
There are no funds which pass our selection criteria this quarter.
12
FUN
D RE
SEA
RCH
– O
ctob
er 2
012 C
onsis
tenc
y Sc
ore
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
ASI
A P
AC
IFIC
(IN
CLU
DIN
G JA
PAN
) Aberdeen Asia Pacific & Japan 4.15 Yes 1.07 Yes
We do not currently recommend any Asia Pacific (Including Japan) funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
CHI
NA
First State Greater China Growth 4.25 Yes 1.05 Yes We do not currently recommend any China funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Aberdeen Emerging Markets 3.95 Yes 1.44 Yes
First State Global Emerging Markets 4.30 Yes 1.12 Yes
GLO
BAL
EMER
GIN
G M
ARK
ETS
First State Global Emerging Markets Leaders 4.45 Yes 1.03 Yes
We do not currently recommend any Global Emerging Markets funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Baillie Gifford International 4.55 Yes 0.50 Yes
Aberdeen World Equity 4.65 Yes 0.81 Yes
M&G Global Growth 4.65 Yes 0.48 Yes
M&G Global Basics 4.75 Yes 0.23 Yes
GLO
BAL
GRO
WTH
Invesco Perpetual Global Smaller Companies 4.90 Yes 0.63 Yes
We continue to recommend the Baillie Gifford International and M&G Global Basics funds as they continue to meet our selection criteria.
We do not currently recommend any Global Specialist funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
TEC
HNO
LOG
Y &
TELE
CO
MS
AXA Framlington Global Technology 5.00 Yes 0.28 Yes
We do not currently recommend any Technology & Telecoms funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
GLO
BAL
SPEC
IALI
ST
First State Indian Subcontinent 4.35 Yes 0.46 Yes
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MANAGED / MULTI-ASSET FUNDS We do not currently recommend any Managed / Multi-Asset funds.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rmat
ion
Ratio
Ind
epen
dent
Ra
tings
MIX
ED IN
VEST
MEN
T 0%
TO 3
5% IN
SHA
RES
There are no funds which pass our selection criteria this quarter.
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
Invesco Perpetual Distribution 3.90 Yes 0.68 Yes
Jupiter Merlin Income 4.40 Yes 1.16 Yes
Fidelity Multi Asset Strategic 4.80 Yes 0.83 Yes
Prudential Managed Defensive 4.80 Yes 0.63 Yes
MIX
ED IN
VEST
MEN
T 20
% TO
60%
IN S
HARE
S
Threadneedle Equity & Bond 4.85 Yes 0.63 Yes
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
AXA Framlington Managed Balanced 4.70 Yes 0.39 Yes M
IXED
INVE
STM
ENT
40%
TO 8
5% IN
SHA
RES
Newton Balanced 4.95 Yes 0.58 Yes
Con
siste
ncy
Scor
e
Fund
Man
ager
Te
nure
(3 y
rs +
)
Info
rma
tion
Ratio
Ind
epen
dent
Ra
tings
FLEX
IBLE
INVE
STM
ENT
Threadneedle Global Equity 4.75 Yes 0.42 Yes SUMMARY
Funds Researched 2,822
Funds Passing our Criteria 95
Funds Currently Recommended 32 Please note: further details of all funds currently being recommended can be found in the following section.
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D DE
TAIL
S –
Oct
ober
201
2 INDEPENDENT RATINGS CHARGES
FUND 1 CITYWIRE FE CROWN OBSR S&P CAPITAL
FE ALPHA MANAGER AMC 2 TER 3
BlackRock Cash 1 Crown 0.50% 0.58% Premier UK Money Market 2 Crowns 0.50% 0.62% Allianz Gilt Yield A 3 Crowns Bronze Yes 0.50% 0.53% Fidelity MoneyBuilder Income 3 Crowns Gold Yes 0.45% 0.65% Invesco Perpetual Corporate Bond 2 Crowns Gold Yes 0.75% 0.94% Invesco Perpetual Monthly Income Plus A 4 Crowns Gold Gold Yes 0.75% 0.94% Kames High Yield Bond 4 Crowns Silver 0.90% 0.96% L&G All Stocks Index Linked Gilt Index 3 Crowns 0.20% 0.23% M&G Strategic Corporate Bond 3 Crowns Silver Yes 0.75% 0.91% Investec Emerging Markets Local Currency Debt 3 Crowns Bronze Yes 1.00% 1.13% Ignis UK property 2 Crowns 1.00% 1.02% M&G Property Portfolio 3 Crowns 1.00% 1.16% Threadneedle UK Property 2 Crowns 1.00% 1.14% Cazenove UK Opportunities AAA 5 Crowns Bronze Yes 1.00% 1.04% Franklin UK Mid Cap A 4 Crowns Silver Yes 1.00% 1.08% JOHCM UK Equity Income A 4 Crowns Silver 0.75% 0.78% Liontrust Special Situations AAA 5 Crowns Bronze Yes 1.25% 1.42% M&G Recovery 2 Crowns Gold Platinum Yes 1.00% 1.15% Old Mutual UK Select Smaller Companies A 3 Crowns Gold Platinum Yes 1.25% 1.42% Henderson European Growth AA 5 Crowns Gold Yes 1.00% 1.26% Jupiter European Income AAA 5 Crowns Gold Platinum Yes 1.00% 1.29% Threadneedle European Select AAA 5 Crowns Yes 1.00% 1.18% Threadneedle European Smaller Companies AAA 4 Crowns Yes 1.00% 1.19% BlackRock CIF North American Equity Index 4 Crowns 0.20% 0.22% Newton Asian Income 5 Crowns Silver Gold 1.00% 1.16% First State Asia Pacific Leaders A 5 Crowns Gold Platinum Yes 1.00% 1.05% Schroder Tokyo AAA 5 Crowns Gold 1.00% 1.17% Baillie Gifford International 3 Crowns Bronze 1.00% 1.04% M&G Global Basics 3 Crowns Gold Platinum Yes 1.00% 1.17% NOTES 1. For fund objectives please see the latest Key Investor Information Documents (KIIDs). 2. AMC is the discounted annual management charge applicable to the fund and is calculated by deducting the usual ‘trail commission’ payable
to an IFA from the standard annual management charge. 3. TER is the total expense ratio of the fund, calculated as at 5th October 2012 with data provided by Financial Express, and includes the fund’s
annual management charge, administration, trustee and audit fees. Again, the usual ‘trail commission’ payable to an IFA has been deducted.
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INDEPENDENT RATINGS CHARGES
FUND 1 CITYWIRE FE CROWN OBSR S&P CAPITAL
FE ALPHA MANAGER AMC 2 TER 3
BlackRock Cash 1 Crown 0.50% 0.58% Premier UK Money Market 2 Crowns 0.50% 0.62% Allianz Gilt Yield A 3 Crowns Bronze Yes 0.50% 0.53% Fidelity MoneyBuilder Income 3 Crowns Gold Yes 0.45% 0.65% Invesco Perpetual Corporate Bond 2 Crowns Gold Yes 0.75% 0.94% Invesco Perpetual Monthly Income Plus A 4 Crowns Gold Gold Yes 0.75% 0.94% Kames High Yield Bond 4 Crowns Silver 0.90% 0.96% L&G All Stocks Index Linked Gilt Index 3 Crowns 0.20% 0.23% M&G Strategic Corporate Bond 3 Crowns Silver Yes 0.75% 0.91% Investec Emerging Markets Local Currency Debt 3 Crowns Bronze Yes 1.00% 1.13% Ignis UK property 2 Crowns 1.00% 1.02% M&G Property Portfolio 3 Crowns 1.00% 1.16% Threadneedle UK Property 2 Crowns 1.00% 1.14% Artemis Income 3 Crowns Gold Yes 1.00% 1.05% Ecclesiastical Higher Income 5 Crowns Yes 0.75% 0.83% JOHCM UK Equity Income A 4 Crowns Silver 0.75% 0.78% Royal London UK Equity Income AA 4 Crowns Bronze Platinum 0.75% 0.82% Threadneedle UK Equity Income A 4 Crowns Silver Gold Yes 1.00% 1.11% NOTES 1. For fund objectives please see the latest Key Investor Information Documents (KIIDs). 2. AMC is the discounted annual management charge applicable to the fund and is calculated by deducting the usual ‘trail commission’ payable
to an IFA from the standard annual management charge. 3. TER is the total expense ratio of the fund, calculated as at 10th October 2012 with data provided by Financial Express, and includes the fund’s
annual management charge, administration, trustee and audit fees. Again, the usual ‘trail commission’ payable to an IFA has been deducted.
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INDIVIDUAL SAVINGS ACCOUNTS – GROWTH PORTFOLIOS RISK SCORE 1 2 3 4 5 6 7 8 9 10 BlackRock Cash (Acc) Premier UK Money Market (Acc) Allianz Gilt Yield (Inc) 10.20% 7.95% 6.00% 4.65% 3.00% 1.35% Fidelity MoneyBuilder Income (Inc) 10.20% 7.95% 6.00% 4.65% 3.00% 1.35% Invesco Perpetual Corporate Bond (Acc) 10.20% 7.95% 6.00% 4.65% 3.00% 1.35% Invesco Perpetual Monthly Income Plus (Acc) 17.00% 13.25% 10.00% 7.75% 5.00% 2.25% Kames High Yield Bond A (Acc) 5.10% 3.98% 3.00% 2.31% 1.50% 0.68% L&G All Stocks Index Linked Gilt Index (Acc) 5.10% 3.98% 3.00% 2.33% 1.50% 0.68% M&G Strategic Corporate Bond (share class A) (Acc) 10.20% 7.96% 6.00% 4.66% 3.00% 1.36% Investec Emerging Market Local Currency Debt A (Acc) 1.00% Ignis UK Property (Acc) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% M&G Property Portfolio (share class A) (Inc) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% Threadneedle UK Property (Acc) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 0.60% Cazenove UK Opportunities B (Acc) 0.15% 0.15% Franklin UK Mid Cap (Inc) 0.15% 0.15% JOHCM UK Equity Income (Acc) 0.20% 0.20% Liontrust Special Situations R (Inc) 0.20% 0.20% M&G Recovery (share class X) (Acc) 0.20% 0.20% Old Mutual UK Select Smaller Co ICVC (Acc) 0.10% 0.08% Henderson European Growth (Acc) 1.75% 3.25% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% Jupiter European (Inc) 1.75% 3.25% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% Threadneedle European Select (Acc) 1.75% 3.25% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% Threadneedle European Smaller Companies (Acc) 1.75% 3.25% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% BlackRock CIF North American Equity Tracker D (Acc) 3.00% 6.00% 9.00% 11.00% 13.00% 15.00% 17.00% 19.00% First State Asia Pacific Leaders (Acc) 1.00% 2.50% 3.50% 4.00% 5.00% 5.50% 6.50% 7.50% Newton Asian Income (Inc) 1.00% 2.50% 3.50% 4.00% 5.00% 5.50% 6.50% 7.50% Schroder Tokyo A (Acc) 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 10.00% Baillie Gifford International (Acc) 0.80% 1.98% 2.80% 3.20% 4.00% 4.40% 5.20% 6.00% M&G Global Basics (share class X) (Acc) 1.20% 3.00% 4.20% 4.80% 6.00% 6.60% 7.80% 9.00% Portfolio Total Expense Ratio* 0.87% 0.90% 0.92% 0.94% 0.96% 0.99% 1.00% 0.99% * Excludes any initial, adviser and product charges.
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PENSIONS – GROWTH PORTFOLIOS RISK SCORE 1 2 3 4 5 6 7 8 9 10 BlackRock Cash (Acc) 36.50% 23.50% 12.00% 4.00% Premier UK Money Market (Acc) 36.50% 23.50% 12.00% 4.00% Allianz Gilt Yield (Inc) 1.80% 3.60% 5.25% 6.45% 6.00% 4.65% 3.00% 1.35% Fidelity MoneyBuilder Income (Inc) 1.80% 3.60% 5.25% 6.45% 6.00% 4.65% 3.00% 1.35% Invesco Perpetual Corporate Bond (Acc) 1.80% 3.60% 5.25% 6.45% 6.00% 4.65% 3.00% 1.35% Invesco Perpetual Monthly Income Plus (Acc) 3.00% 6.00% 8.75% 10.75% 10.00% 7.75% 5.00% 2.25% Kames High Yield Bond A (Acc) 0.90% 1.80% 2.63% 3.23% 3.00% 2.31% 1.50% 0.68% L&G All Stocks Index Linked Gilt Index (Acc) 0.90% 1.80% 2.63% 3.23% 3.00% 2.33% 1.50% 0.68% M&G Strategic Corporate Bond (share class A) (Acc) 1.80% 3.60% 5.26% 6.46% 6.00% 4.66% 3.00% 1.36% Investec Emerging Market Local Currency Debt A (Acc) Ignis UK Property (Acc) 5.60% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% M&G Property Portfolio (share class A) (Inc) 5.60% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% Threadneedle UK Property (Acc) 2.80% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 0.60% Cazenove UK Opportunities B (Acc) 0.15% 0.15% Franklin UK Mid Cap (Inc) 0.15% 0.15% JOHCM UK Equity Income (Acc) 0.20% 0.20% Liontrust Special Situations R (Inc) 0.20% 0.20% M&G Recovery (share class X) (Acc) 0.20% 0.20% Old Mutual UK Select Smaller Co ICVC (Acc) 0.10% 0.08% Henderson European Growth (Acc) 0.25% 1.50% 2.50% 3.50% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% Jupiter European (Inc) 0.25% 1.50% 2.50% 3.50% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% Threadneedle European Select (Acc) 0.25% 1.50% 2.50% 3.50% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% Threadneedle European Smaller Companies (Acc) 0.25% 1.50% 2.50% 3.50% 4.50% 5.50% 6.25% 7.75% 8.50% 9.50% BlackRock CIF North American Equity Tracker D (Acc) 3.00% 5.00% 7.00% 9.00% 11.00% 13.00% 15.00% 17.00% 19.00% First State Asia Pacific Leaders (Acc) 1.00% 2.00% 2.50% 3.50% 4.00% 5.00% 5.50% 6.50% 7.50% Newton Asian Income (Inc) 1.00% 2.00% 2.50% 3.50% 4.00% 5.00% 5.50% 6.50% 7.50% Schroder Tokyo A (Acc) 1.00% 3.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 10.00% Baillie Gifford International (Acc) 0.80% 1.58% 1.98% 2.80% 3.20% 4.00% 4.40% 5.20% 6.00% M&G Global Basics (share class X) (Acc) 1.20% 2.40% 3.00% 4.20% 4.80% 6.00% 6.60% 7.80% 9.00% Portfolio Total Expense Ratio* 0.70% 0.77% 0.84% 0.88% 0.92% 0.94% 0.96% 0.99% 1.00% 0.99% * Excludes any initial, adviser and product charges.
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COLLECTIVES – GROWTH PORTFOLIOS RISK SCORE 1 2 3 4 5 6 7 8 9 10 BlackRock Cash (Acc) 38.00% 26.50% 16.50% 10.00% 3.50% Premier UK Money Market (Acc) 38.00% 26.50% 16.50% 10.00% 3.50% Allianz Gilt Yield (Inc) 1.50% 2.55% 3.60% 4.20% 4.80% 4.50% 2.85% 1.35% Fidelity MoneyBuilder Income (Inc) 1.50% 2.55% 3.60% 4.20% 4.80% 4.50% 2.85% 1.35% Invesco Perpetual Corporate Bond (Acc) 1.50% 2.55% 3.60% 4.20% 4.80% 4.50% 2.85% 1.35% Invesco Perpetual Monthly Income Plus (Acc) 2.50% 4.25% 6.00% 7.00% 8.00% 7.50% 4.75% 2.25% Kames High Yield Bond A (Acc) 0.75% 1.28% 1.80% 2.10% 2.40% 2.25% 1.43% 0.68% L&G All Stocks Index Linked Gilt Index (Acc) 0.75% 1.28% 1.80% 2.10% 2.40% 2.25% 1.43% 0.68% M&G Strategic Corporate Bond (share class A) (Acc) 1.50% 2.56% 3.60% 4.20% 4.80% 4.50% 2.86% 1.36% Investec Emerging Market Local Currency Debt A (Acc) Ignis UK Property (Acc) 5.60% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% M&G Property Portfolio (share class A) (Inc) 5.60% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% Threadneedle UK Property (Acc) 2.80% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 0.60% Cazenove UK Opportunities B (Acc) 0.15% 0.30% 0.30% 0.45% 0.60% 0.75% Franklin UK Mid Cap (Inc) 0.15% 0.30% 0.30% 0.45% 0.60% 0.75% JOHCM UK Equity Income (Acc) 0.20% 0.40% 0.40% 0.60% 0.80% 1.00% Liontrust Special Situations R (Inc) 0.20% 0.40% 0.40% 0.60% 0.80% 1.00% M&G Recovery (share class X) (Acc) 0.20% 0.40% 0.40% 0.60% 0.80% 1.00% Old Mutual UK Select Smaller Co ICVC (Acc) 0.10% 0.20% 0.20% 0.30% 0.38% 0.48% Henderson European Growth (Acc) 1.50% 2.75% 3.50% 4.25% 5.25% 6.50% 7.00% 8.50% 9.50% Jupiter European (Inc) 1.50% 2.75% 3.50% 4.25% 5.25% 6.50% 7.00% 8.50% 9.50% Threadneedle European Select (Acc) 1.50% 2.75% 3.50% 4.25% 5.25% 6.50% 7.00% 8.50% 9.50% Threadneedle European Smaller Companies (Acc) 1.50% 2.75% 3.50% 4.25% 5.25% 6.50% 7.00% 8.50% 9.50% BlackRock CIF North American Equity Tracker D (Acc) 3.00% 5.00% 7.00% 9.00% 10.00% 12.00% 14.00% 17.00% 19.00% First State Asia Pacific Leaders (Acc) 1.00% 2.00% 2.50% 3.50% 4.00% 4.50% 5.50% 6.50% 7.50% Newton Asian Income (Inc) 1.00% 2.00% 2.50% 3.50% 4.00% 4.50% 5.50% 6.50% 7.50% Schroder Tokyo A (Acc) 2.00% 3.00% 4.00% 4.00% 5.00% 6.00% 7.00% 8.00% 10.00% Baillie Gifford International (Acc) 0.78% 1.60% 2.00% 2.80% 3.20% 3.60% 4.40% 5.20% 6.00% M&G Global Basics (share class X) (Acc) 1.20% 2.40% 3.00% 4.20% 4.80% 5.40% 6.60% 7.80% 9.00% Portfolio Total Expense Ratio* 0.69% 0.76% 0.83% 0.87% 0.91% 0.95% 0.98% 1.00% 1.00% 0.99% * Excludes any initial, adviser and product charges.
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INVESTMENT BONDS – GROWTH PORTFOLIOS RISK SCORE 1 2 3 4 5 6 7 8 9 10 BlackRock Cash (Acc) 38.00% 26.00% 16.00% 9.50% 3.00% Premier UK Money Market (Acc) 38.00% 26.00% 16.00% 9.50% 3.00% Allianz Gilt Yield (Inc) 1.50% 2.70% 3.60% 4.35% 5.10% 4.35% 2.70% 1.20% Fidelity MoneyBuilder Income (Inc) 1.50% 2.70% 3.60% 4.35% 5.10% 4.35% 2.70% 1.20% Invesco Perpetual Corporate Bond (Acc) 1.50% 2.70% 3.60% 4.35% 5.10% 4.35% 2.70% 1.20% Invesco Perpetual Monthly Income Plus (Acc) 2.50% 4.50% 6.00% 7.25% 8.50% 7.25% 4.50% 2.00% Kames High Yield Bond A (Acc) 0.75% 1.35% 1.80% 2.18% 2.55% 2.18% 1.35% 0.60% L&G All Stocks Index Linked Gilt Index (Acc) 0.75% 1.35% 1.80% 2.18% 2.55% 2.18% 1.35% 0.60% M&G Strategic Corporate Bond (share class A) (Acc) 1.50% 2.70% 3.60% 4.36% 5.10% 4.36% 2.70% 1.20% Investec Emerging Market Local Currency Debt A (Acc) Ignis UK Property (Acc) 5.60% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% M&G Property Portfolio (share class A) (Inc) 5.60% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 1.20% Threadneedle UK Property (Acc) 2.80% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 0.60% Cazenove UK Opportunities B (Acc) 0.30% 0.45% 0.60% 0.75% 1.05% 1.20% Franklin UK Mid Cap (Inc) 0.30% 0.45% 0.60% 0.75% 1.05% 1.20% JOHCM UK Equity Income (Acc) 0.40% 0.60% 0.80% 1.00% 1.40% 1.60% Liontrust Special Situations R (Inc) 0.40% 0.60% 0.80% 1.00% 1.40% 1.60% M&G Recovery (share class X) (Acc) 0.40% 0.60% 0.80% 1.00% 1.40% 1.60% Old Mutual UK Select Smaller Co ICVC (Acc) 0.20% 0.28% 0.40% 0.48% 0.70% 0.80% Henderson European Growth (Acc) 1.50% 2.75% 3.50% 4.25% 5.00% 6.00% 7.00% 8.50% 9.50% Jupiter European (Inc) 1.50% 2.75% 3.50% 4.25% 5.00% 6.00% 7.00% 8.50% 9.50% Threadneedle European Select (Acc) 1.50% 2.75% 3.50% 4.25% 5.00% 6.00% 7.00% 8.50% 9.50% Threadneedle European Smaller Companies (Acc) 1.50% 2.75% 3.50% 4.25% 5.00% 6.00% 7.00% 8.50% 9.50% BlackRock CIF North American Equity Tracker D (Acc) 3.00% 5.00% 7.00% 8.00% 10.00% 12.00% 14.00% 17.00% 19.00% First State Asia Pacific Leaders (Acc) 1.00% 2.00% 2.50% 3.00% 4.00% 4.50% 5.00% 6.50% 7.50% Newton Asian Income (Inc) 1.00% 2.00% 2.50% 3.00% 4.00% 4.50% 5.00% 6.50% 7.50% Schroder Tokyo A (Acc) 2.00% 3.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 10.00% Baillie Gifford International (Acc) 0.80% 1.60% 2.00% 2.40% 3.20% 3.60% 4.00% 5.20% 6.00% M&G Global Basics (share class X) (Acc) 1.20% 2.40% 3.00% 3.60% 4.80% 5.40% 6.00% 7.80% 9.00% Portfolio Total Expense Ratio* 0.69% 0.76% 0.84% 0.88% 0.92% 0.96% 0.98% 1.00% 1.00% 0.99% * Excludes any initial, adviser and product charges.
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INDIVIDUAL SAVINGS ACCOUNTS – INCOME PORTFOLIOS RISK SCORE 1 2 3 4 5 6 7 8 9 10 BlackRock Cash (Inc) Premier UK Money Market (Inc) Allianz PIMCO Gilt Yield (Inc) 10.65% 8.25% 6.45% 4.95% 3.45% Fidelity MoneyBuilder Income (Inc) 10.65% 8.25% 6.45% 4.95% 3.45% Invesco Perpetual Corporate Bond (Inc) 10.65% 8.25% 6.45% 4.95% 3.45% Invesco Perpetual Monthly Income Plus (Inc) 17.75% 13.75% 10.75% 8.25% 5.75% Kames High Yield Bond A (Inc) 5.33% 4.13% 3.23% 2.46% 1.71% L&G All Stocks Index Linked Gilt Index (inc) 5.33% 4.13% 3.23% 2.48% 1.73% M&G Strategic Corporate Bond (share class A) (Inc) 10.66% 8.26% 6.46% 4.96% 3.46% Investec Emerging Market Local Currency Debt A (Inc) Ignis UK Property (Inc) 6.00% 6.00% 6.00% 6.00% 6.00% M&G Property Portfolio (share class A) (Inc) 6.00% 6.00% 6.00% 6.00% 6.00% Threadneedle UK Property (Inc) 3.00% 2.98% 2.98% 3.00% 3.00% Artemis Income (Inc) 2.80% 6.00% 8.40% 10.40% 12.40% Ecclesiastical Higher Income A (Inc) 2.80% 6.00% 8.40% 10.40% 12.40% JOHCM UK Equity Income (Inc) 2.80% 6.00% 8.40% 10.40% 12.40% Royal London UK Equity Income (Inc) 2.80% 6.00% 8.40% 10.40% 12.40% Threadneedle UK Equity Income (Inc) 2.78% 6.00% 8.40% 10.40% 12.40% Portfolio Total Expense Ratio* 0.82% 0.80% 0.79% 0.78% 0.78% * Excludes any initial, adviser and product charges.
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012
COLLECTIVES – INCOME PORTFOLIOS RISK SCORE 1 2 3 4 5 6 7 8 9 10 BlackRock Cash (Inc) 36.50% 24.50% Premier UK Money Market (Inc) 36.50% 24.50% Allianz PIMCO Gilt Yield (Inc) 1.65% 3.30% 10.65% 7.95% 6.45% 4.95% 3.45% Fidelity MoneyBuilder Income (Inc) 1.65% 3.30% 10.65% 7.95% 6.45% 4.95% 3.45% Invesco Perpetual Corporate Bond (Inc) 1.65% 3.30% 10.65% 7.95% 6.45% 4.95% 3.45% Invesco Perpetual Monthly Income Plus (Inc) 2.75% 5.50% 17.75% 13.25% 10.75% 8.25% 5.75% Kames High Yield Bond A (Inc) 0.83% 1.65% 5.33% 3.98% 3.23% 2.48% 1.71% L&G All Stocks Index Linked Gilt Index (inc) 0.83% 1.65% 5.33% 3.98% 3.23% 2.46% 1.73% M&G Strategic Corporate Bond (share class A) (Inc) 1.66% 3.30% 10.66% 7.96% 6.46% 4.96% 3.46% Investec Emerging Market Local Currency Debt A (Inc) 1.98% Ignis UK Property (Inc) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% M&G Property Portfolio (share class A) (Inc) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Threadneedle UK Property (Inc) 3.00% 3.00% 3.00% 3.00% 2.98% 3.00% 3.00% Artemis Income (Inc) 0.20% 2.80% 2.80% 6.00% 8.40% 10.40% 12.40% Ecclesiastical Higher Income A (Inc) 0.20% 2.80% 2.80% 6.00% 8.40% 10.40% 12.40% JOHCM UK Equity Income (Inc) 0.20% 2.80% 2.80% 6.00% 8.40% 10.40% 12.40% Royal London UK Equity Income (Inc) 0.20% 2.80% 2.80% 6.00% 8.40% 10.40% 12.40% Threadneedle UK Equity Income (Inc) 0.18% 2.80% 2.78% 6.00% 8.40% 10.40% 12.40% Portfolio Total Expense Ratio* 0.70% 0.73% 0.82% 0.81% 0.79% 0.78% 0.78% * Excludes any initial, adviser and product charges.
22
PERF
ORM
AN
CE
DATA
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ctob
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012
GROWTH PORTFOLIOS TO 30TH SEPTEMBER 2012
INDIVIDUAL SAVINGS ACCOUNTS
Risk
Sc
ore
3 m
onth
s
6 m
onth
s
1 ye
ar
2 ye
ars
3 ye
ars
Sinc
e 28
/11/
08
1 2 3 4.26% 4.14% 12.38% 11.98% 25.74% 49.01%
4 4.59% 3.49% 12.66% 11.20% 24.40% 51.21%
5 4.81% 2.90% 12.85% 10.95% 23.68% 53.17%
6 4.95% 2.45% 12.97% 9.80% 21.88% 52.54%
7 5.02% 1.93% 13.01% 9.46% 21.03% 53.14%
8 5.33% 1.61% 13.13% 8.62% 19.61% 53.11%
9 5.32% 1.00% 12.55% 6.78% 15.69% 51.20%
10 5.96% 1.03% 13.72% 6.29% 14.42% 53.77%
PENSIONS
Risk
Sc
ore
3 m
onth
s
6 m
onth
s
1 ye
ar
2 ye
ars
3 ye
ars
Sinc
e 28
/11/
08
1 0.82% 0.96% 3.21% 3.90% 10.07% 18.12% 2 2.18% 1.73% 6.43% 6.36% 18.03% 36.27% 3 3.53% 2.49% 9.74% 8.91% 22.23% 46.02%
4 4.44% 2.98% 11.73% 10.28% 23.38% 49.95%
5 4.81% 2.90% 12.85% 10.95% 23.68% 53.17%
6 4.95% 2.45% 12.97% 9.80% 21.88% 52.54%
7 5.02% 1.93% 13.01% 9.46% 21.03% 53.14%
8 5.22% 1.50% 13.01% 8.50% 19.48% 52.95%
9 5.32% 1.00% 12.55% 6.78% 15.69% 51.20%
10 5.96% 1.03% 13.72% 6.29% 14.42% 53.77%
COLLECTIVES
Risk
Sc
ore
3 m
onth
s
6 m
onth
s
1 ye
ar
2 ye
ars
3 ye
ars
Sinc
e 28
/11/
08
1 0.55% 0.67% 2.41% 2.94% 8.09% 13.36% 2 1.85% 1.19% 5.47% 5.22% 14.38% 27.38% 3 2.98% 1.64% 8.12% 6.74% 18.14% 37.26%
4 3.76% 2.03% 9.86% 7.77% 19.62% 41.21%
5 4.48% 2.24% 11.58% 8.98% 20.98% 44.58%
6 4.81% 2.14% 12.48% 9.03% 20.72% 46.41%
7 5.07% 1.88% 13.02% 8.96% 20.41% 47.32%
8 5.19% 1.47% 13.25% 8.62% 19.51% 50.07%
9 5.21% 0.88% 12.34% 6.46% 15.23% 49.12%
10 5.88% 0.95% 13.58% 6.08% 14.12% 53.19%
INVESTMENT BONDS
Risk
Sc
ore
3 m
onth
s
6 m
onth
s
1 ye
ar
2 ye
ars
3 ye
ars
Sinc
e 28
/11/
08
1 0.55% 0.67% 2.41% 2.94% 8.16% 13.36% 2 1.89% 1.24% 5.52% 5.21% 14.66% 27.70% 3 2.96% 1.76% 8.20% 7.08% 18.89% 38.19%
4 3.83% 2.03% 10.17% 8.23% 20.46% 41.69%
5 4.46% 2.22% 11.69% 9.33% 21.73% 45.43%
6 4.83% 2.18% 12.68% 9.62% 21.85% 47.19%
7 5.03% 1.85% 13.09% 9.23% 20.75% 47.55%
8 5.19% 1.45% 13.33% 8.66% 20.02% 50.34%
9 5.21% 0.88% 12.34% 6.66% 15.54% 49.80%
10 5.88% 0.95% 13.86% 6.40% 15.38% 54.88%
23
PERF
ORM
AN
CE
DATA
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ctob
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012
INCOME PORTFOLIOS TO 30TH SEPTEMBER 2012
INDIVIDUAL SAVINGS ACCOUNTS
Risk
Sc
ore
3 m
onth
s
6 m
onth
s
1 ye
ar
2 ye
ars
3 ye
ars
Sinc
e 01
/01/
09
1 2 3 4.13% 4.72% 13.06% 14.23% 29.19% 44.86%
4 4.20% 4.58% 13.82% 14.92% 29.80% 45.56%
5 4.26% 4.47% 14.39% 15.60% 30.47% 46.32%
6 4.31% 4.37% 14.91% 16.09% 30.82% 46.70%
7 4.36% 4.28% 15.37% 16.39% 30.92% 46.79%
8
9
10
COLLECTIVES
Risk
Sc
ore
3 m
onth
s
6 m
onth
s
1 ye
ar
2 ye
ars
3 ye
ars
Sinc
e 01
/01/
09
1 0.58% 0.68% 2.40% 2.99% 8.22% 13.39% 2 1.85% 1.89% 6.10% 6.57% 16.66% 27.27% 3 3.94% 4.30% 12.16% 12.52% 26.24% 40.47%
4 4.03% 4.20% 13.00% 13.35% 27.08% 41.50%
5 4.09% 4.12% 13.63% 14.14% 27.96% 42.54%
6 4.15% 4.04% 14.21% 14.74% 28.50% 43.20%
7 4.20% 3.98% 14.73% 15.14% 28.79% 43.56%
8
9
10
NOTES The above performance figures are on a bid to bid basis and do not take into account any initial charges, product or adviser fees. The above performance figures are based on the underlying portfolio of funds used for each of our OPUS Portfolios. For Individual Savings Accounts and Pensions the figures are quoted gross, i.e. allowing for the tax reclaimable within the product wrapper. For Collectives the figures are quoted net of basic rate tax. For investment bonds the figures do not take account of any Life Company taxation within the product wrapper. The above performance figures are based on a total return basis, i.e. include any income which may have been distributed. Past performance is not necessarily a guide to the future and the value of investments will, at times, fall as well as rise. Source: Financial Express
24
ALW
AYS
REM
EMBE
R…
Unlike cash deposits, which are guaranteed to £85,000, all other investments are not guaranteed and will, at times, fall in value as well as rise.
Ultimately you could get back less than you invest. You should always retain sufficient funds to meet any short term
expenditure requirements. Any yields will vary over time so income is variable and not
guaranteed. Tax rules referred to are those that currently apply. This document, in isolation, is not personal advice. Predicting the future is impossible; working towards the future
requires a dedicated, ongoing service.
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