FP Thoroughbred Core Alpha

FP Thoroughbred Core Alpha - January 2015
All data as at 31.12.2014
F U N D
FUND MANAGER
INCEPTION DATE
LAUNCH PRICE
FUND SIZE
MINIMUM LUMP
SUM INESTMENT
ASSISTANT FUND MANAGER
FUND CURRENCY
SHARE TYPES
Simon Gibson
03/03/2009
100p
B
£7,339.14
C*
£58,070,383.16
TOTAL EXPENSE RATIO
(TER)
AS AT 31/07/2014
B (retail)
£3,000
C (instit)*
£20,000
MINIMUM MONTHLY
SAVINGS
F A C T S
BENCHMARK
SECTOR
PRICING BASIS
Dale Inman
GBP
Acc
B
1.55%
C*
1.05%
ANNUAL
MANAGEMENT
CHARGE (AMC)
£100 collecting on
th
10 each month
WMA Stock Market Balanced Portfolio Index
IMA Mixed Investment 40-85% Shares
Forward – pricing at 12 noon
B
0.75%
C*
0.25%
INITIAL
CHARGE
B
nil
C*
nil
WMA refers to the Wealth Management Association. IMA refers to the
Investment Management Association.
FUND AIM
MANAGERS PROFILE
INVESTMENT PHILOSOPHY
The aim is to achieve long-term capital
growth by the active management of a
global multi-asset portfolio.
Simon Gibson has been the Fund Manager since
launch in 2009. IMC qualified, Simon is a director
of Mattioli Woods and has over 27 years
investing experience, having spent the last 23 of
these managing private client portfolios.
This is the first sub-fund under the FP Thoroughbred Funds ICVC banner, and builds on
ten years of asset allocated portfolios run by the team, using a global, multi-asset
approach. The aim of achieving long-term growth is paired with a desire to manage
volatility so that, other than on very short-term measures, positive comparable returns
come with lower volatility than the benchmark.
Dale Inman is the Assistant Fund Manager and
has worked with Simon for over seven years,
working on the portfolio fund since launch.
The key performance attributes that should enable us to best meet client requirements
are strong investment disciplines, adherence to our aims and robust risk controls.
TOP 10 HOLDINGS
1
2
Stan Life Glb Abs Return Strategies
Henderson UK Property
6
7
Vanguard S&P 500 ETF
Pictet Water
3
First State Asia Pacific Sustainability
8
ETFS Physical Gold
9
Threadneedle UK Equity Income
10
Kames High Yield Bond
4
5
Invesco Perpetual UK Strategic
Income
Artemis UK Growth
FUND CODE
SEDOL
ISIN
B
B5ZMXV7
C*
B5ZMXX9
GB00B5ZMXV77
GB00B5ZMXX91
* Share Class C is restricted for internal use by the Discretionary Portfolio Management team at
Mattioli Woods, as the core of their asset allocated Model Portfolio approach, with cash also held for
balance.
FUND COMPOSITION
ONE YEAR PERFORMANCE
4.55%
5.05%
7.23%
4.99%
Source: Morningstar NAV to NAV 01/01/14 –31/12/14
Totals are rounded from source data so may not sum 100%
FUND MANAGER COMMENTARY
MARKET REVIEW December proved to be a challenging month for many equity markets as the falling oil price unnerved investors. Such a precipitous fall could cause unknown stresses in the financial
system and also points to anaemic global demand, and/or oversupply. My personal belief is that it has more to do with the latter than the former. The eurozone made its way back into the headlines as
Greece returned to crisis and elections loom there in late January. Fears over deflation are likely to lead to Quantitative Easing in the eurozone and it looks as though rate rises at home are some way off.
Low inflation expectations continued to benefit gilts and higher-quality corporate debt. For the year as a whole, we have seen investors lose some of their risk appetite, initially due to geopolitical risks, and
more lately due to more economic fundamentals.
FUND REVIEW It is pleasing to note the positive absolute performance of the fund over the month, particularly when the two comparison indices have lost value - with the UK proving a key performance
differentiator. Within equities the UK All Companies and UK Smaller Companies holdings both posted gains whilst the wider FTSE All Share index fell in value and UK Physical Property was also a strong
contributor with the asset class continuing to outperform cash and inflation. Elsewhere in the portfolio, Physical Gold also added to returns, as did as my preference for Chinese equities relative to wider
Emerging Markets. The absolute return fund underperformed, but over the last year has been very helpful in both returns and reducing volatility.
ACTIVITY December saw no trades on the fund. Whilst I remain comfortable with the fund’s position in terms of both Asset Allocation and the underlying holdings, I remain alert and regularly review these
to make sure there are no nasty surprises. For example, I have recently been reviewing High Yield holdings in light of the oil price collapse.
OUTLOOK AND POSITIONING 2014’s performance was impacted by the fund’s underweight position in US equities and the lack of exposure to gilts. The reasoning for this positioning still seems convincing
based on valuations and I envisage no change here. Concerns in the eurozone may perversely mean the markets benefit from the “remedy” of quantitative easing - uncertainty and structural problems
remain. Oil looks as if it could settle down, at a lower level for a while, and the outlook for global growth remains mixed. The portfolio continues to deliver below average volatility relative to the benchmark
and it is pleasing to see the outperformance in December considering the risks the fund is taking and the cautious approach.
All figures quoted in the commentary are from Morningstar unless stated otherwise
This document is issued by Atkinson Bolton Consulting and should be read in conjunction with the Fund's Simplified Prospectus which will exclusively form the basis of any application. Past performance is not a guide to future performance. The
price of shares and the income from them can go down as well as up. Investors may not get back the full amount originally invested. A comprehensive list of risk factors is detailed in the Simplified Prospectus and an investment should not be
contemplated until the risks are considered fully. Current tax levels and relief are liable to change and their value will depend on individual investors circumstances. If you are unsure about any information contained within this document you
should take independent advice. Atkinson Bolton Consulting is authorised and regulated by the Financial Conduct Authority. Fund Partners Limited (formerly IFDS Managers Limited) is the Authorised Corporate Director (ACD) of the Fund and is
authorised and regulated by the Financial Conduct Authority. Registered Office: Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB.