cash 4.9% bonds 81.5% global equities 10.7% uk equities 2.9% · implemented using low cost index...

Investment objective and policy

These discretionary managed model portfolios offer risk-profiled investmentsolutions, all of which have a dynamic top-down asset allocation strategyimplemented using low cost index tracking funds.

The investment objective for the Dynamic Passive 1 Model Portfolio is to provide along-term total return which is superior to the UK CPI inflation rate. The performanceof the model portfolio is not intended to track the rise (or fall) of any specific index.

Latest commentary

May was a much kinder month to investors with most asset classes delivering positivereturns. Developed market equities outperformed those in emerging regions withforeign currency gains due to a depreciation in Sterling. The return of some confidenceto share markets was despite the dreadful news background. The Fed, the US CentralBank, had fought and won an important battle to stabilise the markets at the end ofMarch. It made clear it would create as much money as it takes and buys as manybonds as it takes to prevent a financial meltdown and to avoid mass bankruptciesagainst the background of many shuttered or impaired businesses. The promiseworked, and the Fed has now delivered an astonishing $3 trillion of extra credit andbond buying to make its point. Markets are pointing to the recovery from the worstlows of the crisis as countries progressively relax their controls and as people edge backto work. However, the figures for unemployment, overall profitability, turnover andoutput will remain very poor for some months ahead despite showing high rates ofincrease over the complete stoppages recorded for many businesses in April

All asset classes produced a positive return with the largest contribution coming fromthe overseas equities, helped by strong performances from US, European and Japaneseequities, combined with a currency gain. Bonds represent over 80% of the portfolio andit was a relatively stable month for fixed income markets in May with the marketexpecting the Monetary Policy Committee to expand its bond-buying programme inJune. The longer duration UK index-linked gilt tracker was the best performing bondholding. Corporate bond spreads continued to retrace the move wider seen in March,but still remained wider for the year to date overall. There were no changes made tothe investment during May.

Performance %

DP 1D y n a m i c P a s s i v e Managed Portfolio Service

Source: APX All data as atPast performance is not a reliable guide to future performance. The performance is net of Charles Stanley investment management fees, with income reinvested. *UK Consumer Price Inflation figures quoted with a 1 month lag.

31 May 2020

FOR AUTHORISED INTERMEDIARIES ONLY

Key facts

Inception Date 30/09/2012

Typical Growth / Defensive Split 10:90

Annual Management Charge 0.25%

(including VAT)

Total Ongoing Charges 0.11%

(of underlying funds)

Portfolio Total Ongoing Charge 0.36%

Asset Allocation

May-19 May-18 May-17 May-16 May-15- - - - -

May-20 May-19 May-18 May-17 May-16

Dynamic Passive 1 3.7 2.7 0.7 10.7 1.3 3.6

UK CPI* 0.8 2.1 2.4 2.7 0.3 1.1

Cumulative Performance 1m 3m 6m 1yr 3yr 5yr

Dynamic Passive 1 1.3 0.3 1.5 3.7 7.2 20.2

UK CPI* -0.1 0.3 0.2 0.8 5.4 8.6

Discrete Performance3 yr

Volatility

UK Equities 2.9%

Global Equities 10.7%

Bonds 81.5%

Cash 4.9%

Top ten holdings %

L&G Sterling Corp Bond Index C Inc 19

Vanguard US Govt Bond Index Inc £ Hedged 18

Vanguard UK Short Term Investment Grade Bond Acc Index Fund 16

Vanguard Developed World ex UK Equity Inc Index Fund 11

L&G Short Dated £ Corp Bond Index I Acc 10

L&G All Stocks Gilt Index C Acc 8

L&G Global Inflation Linked Bond £ Hedged C Inc 7

Cash Account [GBP] 5

iShares Index Linked Gilt Index Fund (UK) 3

iShares 100 UK Equity Index Fund (UK) 3

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Dynamic Passive 1

UK CPI

Investment Team

The model portfolios are managed by the Charles Stanley AssetManagement Division. The team of portfolio managers andanalysts have extensive experience, drawing upon the expertiseof investment specialists, strategists and economists bothinternally and externally. The research team looks for the bestIndex tracking funds from the available passive universe.

Performance since Inception

FIND OUT MORE ACCOUNTS PLATFORMS

Source APX. Past performance is not a reliable guide to future performance. The performance is net of Charles Stanley investment management fees, with income reinvested.

Risk Profile and Ratings

➢ General Investment Account➢ ISA➢ SIPP➢ Offshore Bond

Minimum suggested Investment = £1,000(subject to platform minimum requirements)

020 7149 6416asset.management@charles-stanley.co.ukwww.charles-stanley.co.uk

Charles Stanley & Co. Limited55 BishopsgateLondon EC2N 3AS

DP 1


Important InformationThe value of investments, and any income derived from them, can fall as well as rise and may be affected by exchange rate variations. Investors may get back less thaninvested.Performance is calculated on a Total Return basis using a notional portfolio in Advent Portfolio Exchange (APX). Performance is net of Charles Stanley investmentmanagement fees but not adviser fees nor platform costs. Any charges and fees applied by platforms and/or authorised intermediaries will be charged in addition to thecharges shown. The Total Ongoing Charges Figure (TOC) is calculated on a periodic basis using a weighted average of the most recent publicly available Total OngoingCharges for the underlying investments as at the date of the factsheet. This includes the underlying funds’ Ongoing Charges Figure plus Transaction costs plus Incidentalcosts. Please note that whilst we endeavour to show all charges associated with specific funds, sometimes this is not possible due to the information not being madeavailable by the fund provider. In such cases transaction or incidental cost information may be missing.The Indicative Yield is provided for guidance purposes only and is calculated on a periodic basis using a weighted average of the most recent publicly available incomeyields for the underlying investments. Yields for the underlying funds, and thus for the strategy, are likely to differ in the future. The Indicative Yield does not representguaranteed income.Portfolios linked to this Model Portfolio may not exactly replicate the model due to the difference in timing of initial investment or rebalancing differences resulting fromminimum transaction size limits on platforms. The management and rebalancing of this Model Portfolio does not take Capital Gains Tax into consideration.This factsheet has been prepared for information purposes only and does not constitute advice or a personal recommendation, nor does it constitute an invitation topurchase units or shares. The information on which the document is based is deemed to be reliable. Charles Stanley has not independently verified such information andits accuracy or completeness is not guaranteed.Charles Stanley & Co. Limited is authorised and regulated by the Financial Conduct Authority.

➢ Aegon➢ Ascentric➢ Aviva➢ Novia➢ Nucleus➢ Platform 1

➢ James Hay➢ Standard Life➢ Transact➢ Zurich➢ 7IM


These discretionary managed model portfolios offer risk-profiled investment solutions,all of which have a dynamic top-down asset allocation strategy implemented using lowcost index tracking funds.

The investment objective for the Dynamic Passive 2 Model Portfolio is to provide along-term total return which is superior to inflation plus 1% returns. The performanceof the model portfolio is not intended to track the rise (or fall) of any specific index.

Latest commentary

May was a much kinder month to investors with most asset classes deliveringpositive returns. Developed market equities outperformed those in emerging regionswith foreign currency gains due to a depreciation in Sterling. The return of someconfidence to share markets was despite the dreadful news background. The Fed, theUS Central Bank, had fought and won an important battle to stabilise the markets atthe end of March. It made clear it would create as much money as it takes and buysas many bonds as it takes to prevent a financial meltdown and to avoid massbankruptcies against the background of many shuttered or impaired businesses. Thepromise worked, and the Fed has now delivered an astonishing $3 trillion of extracredit and bond buying to make its point. Markets are pointing to the recovery fromthe worst lows of the crisis as countries progressively relax their controls and aspeople edge back to work. However, the figures for unemployment, overallprofitability, turnover and output will remain very poor for some months aheaddespite showing high rates of increase over the complete stoppages recorded formany businesses in April

All asset classes produced a positive return with the largest contribution coming fromthe US equities and in particular Legal & General Global Technology Index Trust. Thismonth we increased exposure to dollar denominated investments by switching partof the holding in Fidelity Index US Hedged into the unhedged L&G US Index Trust.We expect outperformance of the US Dollar versus Sterling due to the lack of tradeflows and demand for dollars globally. We have also increased exposure to thehealthcare and pharmaceutical sector by purchasing L&G Global Health &Pharmaceuticals Index Trust which historically performs well in prolonged slowdownsin economic growth and inflation compared to other sectors. This was funded byreducing L&G Global Real Estate Dividend Index Fund because property is underpressure from rent reviews, the collapse in demand for new space and the rise ofonline retailers.

Performance %


Source: APXPast performance is not a reliable guide to future performance. The performance is net of Charles Stanley investment management fees, with income reinvested.*UK Consumer Price Inflation figures quoted with a 1 month lag.

Asset Allocation

Key facts




(including VAT)







1.2 2.8 2.1 14.5 0.8 5.9

1.8 3.1 3.5 3.7 1.3 1.1

1m 3m 6m 1yr 3yr 5yr

1.1 -1.1 -2.2 1.2 6.2 22.5

0.0 0.5 0.7 1.8 8.6 14.2

Dynamic Passive 2

UK CPI + 1%*

Dynamic Passive 2

UK CPI + 1%*

Cumulative Performance


Volatility

UK Equities 5.6%

US Equities 12.6%

European Equities 1.7%

Japanese Equities 1.7%

Asian Equities 2.4%

Emerging Market Equities 3.9%

Global Property 3.1%

Bonds 64.3%

Cash 4.7%

Top ten holdings %





Fidelity Index US P Acc GBP Hedged 6

L&G Short Dated £ Corp Bond Index I Acc 5


Fidelity Index Emerging Markets P Acc GBP Fund 4

Legal & General US Index C Inc 4

Legal & General Global Technology Index Trust C Acc 3

All data as at 31 May 2020

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Dynamic Passive 2

UK CPI + 1%

Investment Team










DP 2







The investment objective for the Dynamic Passive 3 Model Portfolio is to provide along-term total return which is superior to inflation plus 2% returns. Theperformance of the model portfolio is not intended to track the rise (or fall) of anyspecific index.

Latest commentary

May was a much kinder month to investors with most asset classes delivering positive returns. Developed market equities outperformed those in emerging regions with foreign currency gains due to a depreciation in Sterling. The return of some confidence to share markets was despite the dreadful news background. The Fed, the US Central Bank, had fought and won an important battle to stabilise the markets at the end of March. It made clear it would create as much money as it takes and buys as many bonds as it takes to prevent a financial meltdown and to avoid mass bankruptcies against the background of many shuttered or impaired businesses. The promise worked, and the Fed has now delivered an astonishing $3 trillion of extra credit and bond buying to make its point. Markets are pointing to the recovery from the worst lows of the crisis as countries progressively relax their controls and as people edge back to work. However, the figures for unemployment, overall profitability, turnover and output will remain very poor for some months ahead despite showing high rates of increase over the complete stoppages recorded for many businesses in April

All asset classes produced a positive return with the largest contribution coming from the US equities and in particular Legal & General Global Technology Index Trust. This month we increased exposure to dollar denominated investments by switching part of the holding in Fidelity Index US Hedged into the unhedged L&G US Index Trust. We expect outperformance of the US Dollar versus Sterling due to the lack of trade flows and demand for dollars globally. We have also increased exposure to the healthcare and pharmaceutical sector by purchasing L&G Global Health & Pharmaceuticals Index Trust which historically performs well in prolonged slowdowns in economic growth and inflation compared to other sectors. This was funded by reducing L&G Global Real Estate Dividend Index Fund because property is under pressure from rent reviews, the collapse in demand for new space and the rise of online retailers.

Performance %



31 May 2020

Key facts




(including VAT)




Asset Allocation



1.5 3.1 3.9 20.3 -0.6 8.2

2.9 4.1 4.5 4.7 2.3 1.1

Cumulative Performance 1m 3m 6m 1yr 3yr 5yr

1.6 -0.9 -3.4 1.5 8.7 30.0

0.1 0.8 1.2 2.9 11.9 19.9

Dynamic Passive 3

UK CPI + 2%*

Dynamic Passive 3

UK CPI + 2%*

3 yr

VolatilityDiscrete Performance


UK Equities 6.1%

US Equities 21.1%



Asian Equities 4.0%



Bonds 46.6%

Cash 4.7%









L&G Global Real Estate Dividend Index Fund (I Class Acc) 4

Amundi Index MSCI North America - RHG (D) 4

Top ten holdings %

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Dynamic Passive 3

UK CPI + 2%

Investment Team










DP 3







Latest commentary

May was a much kinder month to investors with most asset classes delivering positive returns. Developed market equities outperformed those in emerging regions with foreign currency gains due to a depreciation in Sterling. The return of some confidence to share markets was despite the dreadful news background. The Fed, the US Central Bank, had fought and won an important battle to stabilise the markets at the end of March. It made clear it would create as much money as it takes and buys as many bonds as it takes to prevent a financial meltdown and to avoid mass bankruptcies against the background of many shuttered or impaired businesses. The promise worked, and the Fed has now delivered an astonishing $3 trillion of extra credit and bond buying to make its point. Markets are pointing to the recovery from the worst lows of the crisis as countries progressively relax their controls and as people edge back to work. However, the figures for unemployment, overall profitability, turnover and output will remain very poor for some months ahead despite showing high rates of increase over the complete stoppages recorded for many businesses in April

All asset classes produced a positive return with the largest contribution coming from the US equities and in particular a good performance from Legal & General Global Technology Index Trust. This month we increased exposure to dollar denominated investments by switching part of the holding in Fidelity Index US Hedged into the unhedged L&G US Index Trust. We expect outperformance of the US Dollar versus Sterling due to the lack of trade flows and demand for dollars globally. We have also increased exposure to the healthcare and pharmaceutical sector by purchasing L&G Global Health & Pharmaceuticals Index Trust which historically performs well in prolonged slowdowns in economic growth and inflation compared to other sectors. This was funded by reducing L&G Global Real Estate Dividend Index Fund because property is under pressure from rent reviews, the collapse in demand for new space and the rise of online retailers.

Performance %



31 May 2020

Key facts




(including VAT)





Asset Allocation



2.1 3.4 5.4 24.5 -1.1 10.1

3.9 5.2 5.5 5.8 3.3 1.1


2.1 -0.5 -4.1 2.1 11.2 36.9

0.2 1.0 1.7 3.9 15.2 25.9

3 yr

Volatility

UK CPI + 3%*

Dynamic Passive 4

UK CPI + 3%*


Dynamic Passive 4

Discrete Performance










Fidelity Index Japan P Acc GBP Fund 5

UK Equities 6.6%

US Equities 28.3%



Asian Equities 3.1%




Bonds 30.8%

Cash 4.3%

Top ten holdings %

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Dynamic Passive 4

UK CPI + 3%

Investment Team












DP 4






Latest commentary

May was a much kinder month to investors with most asset classes delivering positivereturns. Developed market equities outperformed those in emerging regions withforeign currency gains due to a depreciation in Sterling. The return of some confidenceto share markets was despite the dreadful news background. The Fed, the US CentralBank, had fought and won an important battle to stabilise the markets at the end ofMarch. It made clear it would create as much money as it takes and buys as manybonds as it takes to prevent a financial meltdown and to avoid mass bankruptciesagainst the background of many shuttered or impaired businesses. The promiseworked, and the Fed has now delivered an astonishing $3 trillion of extra credit andbond buying to make its point. Markets are pointing to the recovery from the worstlows of the crisis as countries progressively relax their controls and as people edgeback to work. However, the figures for unemployment, overall profitability, turnoverand output will remain very poor for some months ahead despite showing high ratesof increase over the complete stoppages recorded for many businesses in April

All asset classes produced a positive return with the largest contribution coming fromthe US equities and in particular a good performance from Legal & General GlobalTechnology Index Trust. This month we increased exposure to dollar denominatedinvestments by switching part of the holding in Fidelity Index US Hedged into theunhedged L&G US Index Trust. We expect outperformance of the US Dollar versusSterling due to the lack of trade flows and demand for dollars globally. We have alsoincreased exposure to the healthcare and pharmaceutical sector by purchasing L&GGlobal Health & Pharmaceuticals Index Trust which historically performs well inprolonged slowdowns in economic growth and inflation compared to other sectors.This was funded by reducing Vanguard Developed World ex UK Equity Index and L&GGlobal Real Estate Dividend Index Funds.

Performance %



31 May 2020


Key facts




(including VAT)




Asset Allocation



1.9 3.8 6.4 29.4 -2.2 12.1

4.9 6.2 6.5 6.8 4.3 1.1


2.6 -0.5 -5.4 1.9 12.6 42.4

0.3 1.3 2.2 4.9 18.6 32.1


Volatility

Dynamic Passive 5

UK CPI + 4%*


Dynamic Passive 5

UK CPI + 4%*






Fidelity Index Japan P Acc GBP Fund 7


iShares Continental European Equity Index Fund (UK) 6



UK Equities 7.7%

US Equities 35.0%



Asian Equities 4.0%




Bonds 16.2%

Cash 4.3%

Top ten holdings %

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Dynamic Passive 5

UK CPI + 4%

Investment Team










DP 5





cash 4.9% bonds 81.5% global equities 10.7% uk equities 2.9% · implemented using low cost index...

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