introducing barclays multimanager
TRANSCRIPT
Introducing Barclays MultiManagerElegant investing for all-weather returns
Wealth and Investment Management
“An institutional-style solution for
clients wishing to maximise returns by
diversifying their wealth across managers,
asset classes and regions.”
Jaime Arguello, Head of Barclays MultiManagement
1Introducing Barclays MultiManager |
Fund overview
Portfolio manager
Jaime Arguello 25 years investment experience
Portfolio features
MultiManager portfolios are currency-hedged and diversified across traditional asset classes, regions and third-party managers.
Outperformance is generated via exposure to third-party investment managers and the implementation of asset allocation views.
* Rather than selecting and monitoring several individual funds, the investor holds only one share. Portfolio changes - such as rebalancing, tactical tilts or changes to managers - are implemented by the fund manager.
As a market return product, the value of the investment could go up and down, and you could lose money.
The Barclays MultiManager range is
built on the foundations of Barclays’ best
investment thinking. It offers investors,
of any size, a simple, sophisticated, and
single-access means of gaining exposure
to the world’s best investment managers,
while simultaneously diversifying across
asset classes and regions.
Benefiting from a blend of some of
the leading institutional and boutique
investment managers in the world, this
range aims to deliver optimal returns at a
reduced level of risk, volatility and cost.
Fund manager Jaime Arguello draws on
the asset allocation and market views of
Barclays’ investment expertise to actively
adjust the portfolios’ positioning across
fixed income and equities, locking in long-
and short-term opportunities as they arise.
With Barclays’ award-winning GlobalAccess
fund-of-funds range as the building blocks
of the portfolios, MultiManager is a ‘turn-
key’ solution for accessing the Barclays
Investment Philosophy – the culmination of
our expertise in investments, behavioural
finance and asset allocation.
Barclays asset allocation
Welcome
Cash and Short Maturity BondsHelps to insulate portfolios against short-term losses, particularly for low risk tolerant investors
Emerging Markets EquityHigh returns over time with higher risk. But risk-adjusted returns may also be greater
Developed Government BondsHigher yields than cash, low risk, and protection against deflation
Investment Grade BondsCredit losses are small relative to the additional yield investors can earn
High Yield and Emerging Markets BondsAs with investment-grade credit, losses are small relative to the additional yield investors can earn, however there is greater risk and more opportunities for active managers to outperform benchmarks
Developed Markets EquityStocks have generated higher risk-adjusted returns than bonds over long periods of time, historically
Our Investment Philosophy combines insights from the
science of behavioural finance with the techniques of
modern portfolio management to deliver performance that
is optimised for the risk profile and financial personality of
each investor.
As the cornerstone of our investment thinking, our
Investment Philosophy aims to help us understand the
unique needs of each client and allows us to:
• Meet each client’s investment needs
• Deliver an appropriate level of diversification
• Ensure that each portfolio has access to the most
appropriate asset classes at a competitive cost
• Incorporate our long-term market views
Barclays has committed
significant resources
into developing long-
term asset allocations
for the different
portfolios with each
designed to achieve an
optimal balance of risk
and reward.
In addition, the asset
allocation of each
portfolio is actively
managed on an
ongoing basis through
the implementation
of long-term strategic
asset allocation and
short-term tactical
adjustments.
Cost-efficient investing• Multimanager investing can be a cost-efficient
means of accessing several managers via a single
investment vehicle, and is likely to be less expensive
than if you bought the managers individually
• Investors can access the range on a US dollar,
sterling and euro-denominated basis. All portfolios
are currency-hedged back into their base currency
• Tax-efficient structure allows for asset allocation
changes in the portfolio without tax impacts. Tax
rules can change and whether they benefit you will
depend on your individual circumstances. Barclays
does not offer tax advice
What is the Barclays Investment Philosophy?
Pote
ntia
l ret
urn
LowLow
Moderate-Low
Risk profile
Moderate Moderate-High High
High
Barclays MultiManager comprises five risk profiles. Each portfolio is designed to meet a range of risk-return preferences. The illustration below represents how each risk profile is designed to perform.
Cash and Short Maturity Bonds
Developed Government Bonds
Investment Grade Bonds
High Yield and Emerging Markets Bonds
Developed Markets Equities
Emerging Markets Equities
54%
24%
12%
7%
12%
11%
9%
15%
45%
7%
34%
15%
4%
8%12%
19%
7%
5%
8%
5%
15%
19%
54%
58%
14%
12%
6%
4%
3%
2%
2
3Introducing Barclays MultiManager |
Key fund features
Barclays is one of the biggest multimanager providers in
Europe, with £7 billion under management.
Our multimanager strategy is accessible via five risk
profiles that have been designed to maximise risk/reward,
while still reflecting the variation in risk attitudes of our
client base. The five portfolios differ in the balance of
equities, bonds and other investments that they may
contain, but are otherwise managed in the same way.
The asset allocation of each portfolio is actively managed
by implementing our long-term strategic asset allocation
views, in conjunction with house-wide medium-term
adjustments that allow the manager to act nimbly as
opportunities arise. Investments are mainly implemented
via the Barclays GlobalAccess range – a market leading
suite of single asset class funds that selects and blends
some of the best names in the investment universe.
With £7 billion of assets invested, the size of our mandates
allows us to access leading managers on an institutional
basis, thereby passing on the following benefits to our
clients:
• An open door into the leading institutional and boutique
investment management houses – many of which are
not available to the individual investor
• The scope to negotiate highly competitive terms, along
with agreeing customised investment parameters for all
of our third-party managers
• Full visibility of investment activity across the underlying
funds, along with the ability to allocate our own
extensive resources to the selection and monitoring of
managers
Three tiers of expertiseThe Barclays MultiManager range employs
an investment process that benefits from the
contribution of three distinct levels of internal
and external expertise:
Asset allocation: long-term strategic (five years)
and tactical (six months) asset allocations that
inform the fixed income and equity exposure
of the fund. These positions are defined by
a committee of senior Barclays investment
experts.
Portfolio management: positioning within
each asset class and market is defined by the
portfolio manager, based on Barclays’ strategic
and tactical allocation views.
Security selection: individual security selection
is implemented through our chosen third-party
managers, each boasting extensive and proven
expertise in their asset class.
The Barclays GlobalAccess range is a suite of single
asset class, manager-of-managers funds, overseen by
a dedicated Barclays investment expert. By blending
managers of different investment styles and approaches
– each working to an institutional-style, segregated
mandate – the funds are designed to generate a smoother
investment journey, while aiming to achieve superior
returns.
The GlobalAccess funds benefit from a diversified open-
architecture approach that draws on the stock-picking
skills of more than 45 specialised asset management
houses from across the industry.
Our building blocks: Barclays GlobalAccess funds
Facts and figures • Over 400 manager meetings a year
• 20 single asset class funds managed
• Over 45 segregated mandates awarded to
managers across regions ®
4
5Introducing Barclays MultiManager |
Our strong track record for generating outperformance
for our clients has been built on the back of the consistent
application of our investment process, and driven forward
by the efficient deployment of our market views. While
we cannot guarantee investment returns – or remove the
possibility of loss – over the last five years (to 31 December
2013), the MultiManager range has delivered improving
relative returns, and most risk categories in the range are
ahead of their peer group average.
The majority of our underlying GlobalAccess funds have
maintained a strong record for outperforming their
benchmarks, on a net basis, over three years:
• 100% of GlobalAccess equity funds have outperformed
benchmark over three years, as at 31 December 2013
• 100% of GlobalAccess fixed income funds have
outperformed benchmark over three years, as at 31
December 2013
• 50% hold a 5-star or 4-star Morningstar rating, as
at 31 December 2013
Past performance of the range, underlying funds and
managers is not indicative of future performance.
Morningstar rated funds
• Global High Yield Bond
• UK Opportunities
• Emerging Market Equity
• Global Corporate Bond
• Global Inflation Linked
• Emerging Market Debt
• Pacific Rim ex-Japan
• Japan
Lipper awards
Barclays Wealth
and Investment
Management has
won an award for
performance of
its Global High Yield Bond (Income) fund in the category
of Bond Global - High Yield, over three years, at the Lipper
Fund Awards 2011 and 2012.
The Lipper Fund Awards recognise excellence in fund
performance and winners are selected on the basis of
consistently strong risk-adjusted returns. The Barclays
Fund beat over 130 of the largest funds in its universe to
win this accolade.
A question of currencyTo help mitigate the impact of currency fluctuations
on portfolios, the Barclays MultiManager range
can be accessed on a US dollar, sterling and euro-
denominated basis.
Performance
Awards and competitive landscape
6
7Introducing Barclays MultiManager |
The MultiManager range is managed by Jaime Arguello,
Head of Barclays MultiManagement. Jaime is supported
by the Barclays MultiManagement team, which also
manages the GlobalAccess range and comprises eight
fund managers and investment specialists with a diversity
of experience. Their backgrounds range from former fund
Our expertise• A dedicated team of investment professionals
with 10 years average investment
management experience
• Senior members of the team have direct
asset management experience in both fixed
income and equities, providing a competitive
advantage in manager selection and portfolio
construction
• Longstanding experience of manager
blending
• Extensive knowledge of the investment
universe
• To identify and combine investment talent to
provide high conviction portfolios
• To implement a team-based approach while
benefiting from specialised coverage of
individual asset classes
Our people
managers to experts in multimanagement and manager
selection.
Each asset class in the range is covered by a dedicated
Barclays fund manager in order to ensure a high level of
specialisation.
Value of investments The value of these investments, and any income from
them can fall as well as rise. So you might not get
back what you originally invested. Neither capital nor
income is guaranteed.
Derivative exposureSome funds invest in derivatives as part of their
investment strategy, over and above their use for
Efficient Portfolio Management (EPM). Investors
should be aware that the use of these instruments
can, under certain circumstances, increase the
volatility and risk profile beyond that expected of a
fund that only invests in equities. Funds may also
be exposed to the risk that the company issuing the
derivative may not honour their obligations which in
turn could lead to losses arising.
Item ref: IBIM3455 October 2014
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