performance report - suggestus peer review and report... · period ended august 2017 example...

Period Ended August 2017

Example Portfolio 52 with cashflows

Self Managed

Portfolio Peer Review

Performance Report

www.suggestus.com

Contents

Welcome .......................................................................................................................................................................................................... 3

Portfolio Information .....................................................................................................................................................................................3

Report Summary ............................................................................................................................................................................................ 4

Performance Grade (Period Ended Jun 17) ............................................................................................................................................ 4

Portfolio Data .................................................................................................................................................................................................5

Derived Portfolio Data .................................................................................................................................................................................. 6

Asset Allocation .............................................................................................................................................................................................. 7

Asset Allocation History ................................................................................................................................................................................8

Cumulative Returns (104 months to Aug 17) ......................................................................................................................................... 9

Period Returns .............................................................................................................................................................................................. 10

Period Returns - Relative to Sterling Steady Growth Reference Index ...........................................................................................11

Period Returns - Relative to ARC GBP Balanced Asset PCI ...............................................................................................................12

Return Distribution ...................................................................................................................................................................................... 13

Portfolio Risk Analysis ................................................................................................................................................................................. 14

Volatility Analysis ..........................................................................................................................................................................................15

Portfolio Peer Group Classification ..........................................................................................................................................................16

Asset Allocation Cross-check ....................................................................................................................................................................16

Performance versus Peer Group Universe (Period Ended Jun 17) ..................................................................................................17

Trend of Relative Performance versus Peer Group (Period Ended Jun 17) .................................................................................. 18

About Self Managed ...................................................................................................................................................................................19

Frequently Asked Questions ..................................................................................................................................................................... 20

About Suggestus Performance Grades ..................................................................................................................................................21

About Us ........................................................................................................................................................................................................ 21

Important Information - Disclaimer ........................................................................................................................................................ 21

Suggestus is a free website devoted exclusively to research, and does not offer any transactional facilities, or offer any advice

on investments to its users. Any reports generated are based on historic data compiled by the user and with reference to

public sources and relevant investment manager performance figures. Neither Suggestus nor Asset Risk Consultants ('ARC')

Limited has verified the monthly or quarterly performance data. Please see final page of report for full disclaimer.


Self Managed


Welcome

This Portfolio Peer Review (PPR) is a snapshot, designed to place the returns achieved by the Portfolio into context;

assist wealth advisers and trustees meet their regulatory requirements for on-going portfolio performance monitoring;

and help the investor assess Portfolio performance.

This PPR provides an independent and objective assessment of the performance characteristics of the Portfolio in both

absolute terms and relative to any specified Benchmarks and a Peer Group. The multi-asset portfolio peer group is

based on data provided to Asset Risk Consultants (ARC) to calculate the PCI. The Peer Group can be chosen by the

user or automatically set based on the risk profile of the Portfolio.

Understanding how the Portfolio has performed versus an appropriate peer group is vital to ensure that the Portfolio

(whether self-selected or professionally managed) is delivering results within an acceptable risk/return range. The

historical differential between the best and worst performing portfolios is substantial. The PPR puts the investor in

control of the facts and enables them to consider if any action is needed.

The Peer Group Category has been set by user preference to ARC GBP Balanced Asset PCI. The auto-calculated Peer Group Category would

have been ARC GBP Balanced Asset PCI.

**

The "Analysis End Date" is used on all sections of the report except where otherwise stated. The performance data shown for the peer group

indices for Jul 17, Aug 17 are estimates. These estimates are displayed in purple within tables and as dotted lines or footnotes for charts.

*

Returns Frequency: GBPMonthly

Manager: Self Managed

Reporting Currency:

GBP 533,022 as of 31 Aug 2017

Portfolio Information

31 Dec 2008Analysis Start Date: Analysis End Date:* 31 Aug 2017

0.54 times

Value:

Risk Relative to Equities:NetPerformance Basis:

Management Basis: Discretionary Peer Group Category:** ARC GBP Balanced Asset PCI

UK CPI +4% p.a.Target Return:Benchmark:Sterling Steady Growth

Reference Index

IMPORTANT NOTE

THIS REPORT IS EXCLUSIVELY FOR USE BY THE CLIENT AND THE ADVISER. IT MUST NOT BE USED FOR ANY MARKETING OR

PROMOTIONAL PURPOSE. IF YOU WISH TO MAKE FURTHER USE OF THIS REPORT YOU SHOULD CONTACT

[email protected]






Self Managed


Report Summary

This PPR report suggests the following:

Over the 104 months the Portfolio has out-performed the Target Return of UK CPI +4% p.a. and has out-

performed the Benchmark as measured by the Sterling Steady Growth Reference Index.

Over the last 12 months ended Jun 17 the return of the Portfolio is in the 1st quartile versus the peer

group.

Over the 102 months ended Jun 17 the return of the Portfolio is in the 1st quartile versus the peer group.

Over the 104 months under review the Portfolio returned 104.3% and has out-performed the peer group

as measured by the ARC GBP Balanced Asset PCI.

The performance dynamics suggest this Portfolio is 0.54 times as risky as a pure equity portfolio.

Performance is a tricky notion to define. How does an investor know if their portfolio is OK?

The Performance Grade analyses the risk a portfolio has exhibited, looks at the returns it has made, and compares risk-

adjusted returns to a group of similar portfolios. Similar portfolios are those that have the same reference currency and

comparable risk characteristics. The Performance Grade is essentially a Sharpe ratio ranking, with one of six grades A

(highest) to F (lowest) applied to the Portfolio.

The parameters for each grade can be seen on the final page of the report. To calculate this grade accurately, a

minimum of 18 months performance to the current quarter end is required. If less data is available, the rating will be

greyscale not colour and should be considered indicative.

Performance Grade (Period Ended Jun 17)

The Portfolio’s risk-adjusted performance over 60 months to Jun 17 is

ranked in the top 10% of portfolios in the ARC GBP Balanced Asset PCI

universe and has significantly exceeded this peer group average.

FEDCBA






Self Managed


Portfolio Value History & Cash Movements (GBP)

The chart and table below respectively set out the valuations and cash movements supplied for the Portfolio. Please

check the data input for this Portfolio is correct.

Portfolio Data

Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16

0

100,000

200,000

300,000

400,000

500,000

GB

P

Addition20,883.53GBP03/07/12Custody Fee(17.50)GBP14/04/14

Custody Fee(37.50)GBP13/07/12Custody Fee(18.32)GBP14/07/14

Custody Fee(37.50)GBP15/10/12Custody Fee(19.19)GBP13/10/14

Custody Fee(37.50)GBP21/12/12Addition71,160.08GBP20/10/14


Custody Fee(27.50)GBP15/07/13Withdrawal(83,567.00)GBP22/10/14


Addition26,560.00GBP31/12/13Q4 2016 Custody FeeCustody Fee(75.98)GBP30/12/16

Custody Fee(5.00)GBP13/01/14Q1 2017 Custody FeeCustody Fee(82.52)GBP31/03/17

Custody Fee(75.00)GBP24/02/14Q2 2017 Custody FeeCustody Fee(77.70)GBP30/06/17

DescriptionTypeAmountCcyDateDescriptionTypeAmountCcyDate

Cash Movement History (Latest 20)

Rows highlighted in red indicate a cash movement which is more than 10% of the total value (with no interim valuation). Performance will be

estimated unless an interim valuation is added for close of business on the same day.

35.0iShares Core MSCI World10.0UBS ETFs plc HFRX GlHdgFd Idx GBP

20.0db x-trackers FTSE All-Share5.0iShares Diversified Commodity Swap

10.0iShares Core Corporate Bond5.0iShares MSCI Emerging Markets

10.0iShares Core UK Gilts5.0GBP Cash

%Constituent%Constituent

Benchmark Composition






Self Managed


Derived Portfolio Data

9.21.80.80.21.90.40.52.30.92017

15.31.7(0.4)2.80.82.13.12.81.00.11.31.5(2.3)2016

2.50.91.31.9(1.9)(2.3)1.6(3.2)(0.1)(0.4)2.00.82.12015

9.7(0.5)2.21.4(0.4)1.70.62.41.20.00.01.4(0.7)2014

13.80.3(0.2)2.0(0.2)(1.4)2.5(2.3)2.50.60.54.14.82013

5.31.20.9(0.4)1.71.10.81.3(3.8)(1.2)0.02.21.42012

(0.5)1.6(0.3)2.6(1.3)(2.8)(2.6)1.1(0.4)0.90.80.6(0.6)2011

10.63.7(0.4)1.84.7(0.9)2.0(2.2)(6.2)(0.7)8.22.4(1.5)2010

9.42.20.7(0.5)3.23.01.41.2(2.4)3.12.0(2.4)(2.1)2009

YTDDecNovOctSepAugJulJunMayAprMarFebJanYear

Portfolio Performance (GBP %)

Rows highlighted in red indicate estimated performance due to one or more large cash movements.

Returns are calculated net of charges.

Monetary Change (GBP)

235,050128,11345,02013,693Monetary Change (GBP)

136,94549,940(160)-Net Cashflow (GBP)

533,022533,022533,022533,022End Value (GBP)

161,026354,969488,162519,329Start Value (GBP)

Since Dec 083 YearYTDQTD

Cash Movement Summary (GBP)

(160)(76)-(135)(83)(150) Custody Fee

(160)(76)-(135)(83)(150)Total Charges

------Total Expenses

---(83,567)--Outflows (GBP)

-50,000-83,76226,56020,884Inflows (GBP)

YTD20162015201420132012

Charges have averaged 0.0% and expenses 0.0% of the Portfolio value over the last 5 calendar years.

Derived Portfolio Data Comments:






Self Managed


Allocation

(10.0)%

0.0%

10.0%

Allo

cati

on

%

Cash Fixed Income Other Equities

Cash - 20.8% Fixed Income - 5.2% Other - 24.5%

Equities - 49.5%

Relative to BenchmarkPortfolio

The current asset allocation pie chart shows the asset class split of the Portfolio in broad terms, i.e. the Portfolio’s

invested allocation between equity, fixed income, cash and "other" assets. “Other” assets would typically include such

asset classes as property, hedge funds, private equity, gold, commodities and structured products.

The two relative asset allocation charts below show the current and historical differences in the Portfolio’s asset

allocation against the asset allocation of the Sterling Steady Growth Reference Index. A difference in asset allocation of

20% or more, positive or negative, indicates a significant deviation from the Sterling Steady Growth Reference Index.

Asset Allocation

Historical Asset Allocation Relative to Sterling Steady Growth Reference Index


(90.0)%

(70.0)%

(50.0)%

(30.0)%

(10.0)%

10.0%

30.0%

50.0%

70.0%

90.0%

Rela

tive

Allo

cati

on

%


Asset Allocation as at Aug 17






Self Managed


Portfolio Asset Allocation History

The asset allocation history chart below shows how the Portfolio’s investment between broad asset classes has changed

over time. Where a portfolio is invested in collective investment vehicles (i.e. funds) the asset allocation should be

broken down into the constituent allocations where possible and practicable. The chart may provide an indication into

how actively a portfolio is managed, but note there may be investment changes ‘behind’ the broad asset classification,

such as sector, duration or style biases.

Asset Allocation History


0.0%

50.0%

100.0%

Allo

cati

on

%


The average asset allocation profile suggests that the Portfolio might better be compared to the ARC GBP

Steady Growth PCI peer group universe.

The average equity exposure of the Portfolio was 47.0%, max was 59.0%, min was 0.0%.

The average exposure to other assets of the Portfolio was 24.3%, max was 35.9%, min was 0.0%.

The average fixed income exposure of the Portfolio was 11.6%, max was 58.8%, min was 0.0%.

The average cash exposure of the Portfolio was 17.1%, max was 100.0%, min was 1.9%.

Asset Allocation History Comments:






Self Managed


The chart below can be used to visualise the return pattern of the Portfolio and how it compares with the risk profiles

represented by the ARC Private Client Indices (PCI), any specified benchmarks and UK CPI +4% p.a.. The pattern of

historical performance on the chart can give an insight into the “style” of the Portfolio. For example, the Portfolio might

typically follow the peer group or benchmark in rising markets, but out-perform during times of market stress.

Cumulative Returns (104 months to Aug 17)


-20

0

20

40

60

80

100

Cu

mu

lati

ve R

etu

rn %

Example Portfolio 52 with cashflows Sterling Steady Growth Reference Index ARC GBP Balanced Asset PCI UK CPI +4% p.a.

Cumulative Returns (%)


The Portfolio has out-performed the Target Return of UK CPI +4% p.a. which increased by 69.5%.

The Portfolio has out-performed GBP Cash which has been 3.8%.

The Portfolio has out-performed the ARC GBP Balanced Asset PCI which returned 72.7%.

The Portfolio has out-performed the Sterling Steady Growth Reference Index which returned 100.3%.

The cumulative return of the Portfolio has been 104.3%.

Cumulative Return Comments:






Self Managed


Analysing the variability of returns over the period under review, roughly once a year the Portfolio might be

expected to change in value by more than 3.3% in a single month.

No unusually negative returns have been recorded from Dec 08 to Aug 17.

Returns highlighted in yellow in the table are unusually positive and occur in months Jan 13, Feb 13.

The highest monthly return was 8.2% in Mar 10. The worst monthly return was (6.2)% in May 10.

Of the 104 months observed, 71 were positive and 33 were negative.

Period Return Comments:

9.21.80.80.21.90.40.52.30.92017

15.31.7(0.4)2.80.82.13.12.81.00.11.31.5(2.3)2016

2.50.91.31.9(1.9)(2.3)1.6(3.2)(0.1)(0.4)2.00.82.12015

9.7(0.5)2.21.4(0.4)1.70.62.41.20.00.01.4(0.7)2014

13.80.3(0.2)2.0(0.2)(1.4)2.5(2.3)2.50.60.54.14.82013


Portfolio Performance (%)

Portfolio Monthly Returns (%)

The chart and table below set out the monthly returns recorded by the Portfolio from Dec 2008 to Aug 2017. Periods

of more volatile returns can easily be identified. A solitary, unusually large gain or loss may be indicative of a data error.

Note that significant inflows or outflows from a portfolio can cause performance calculation anomalies.

Period Returns

Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17

-6

-4

-2

0

2

4

6

8

Mo

nth

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etu

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Self Managed


Period Returns - Relative to Sterling Steady Growth Reference Index

The relative return chart highlights periods where the Portfolio out or under-performed the Sterling Steady Growth

Reference Index. Bars below the line represent under-performance. Bars above the line show out-performance.

The relative return table beneath highlights in yellow the months where out or under-performance of the Portfolio

relative to the Sterling Steady Growth Reference Index was more than two percentage points indicating a significant

difference in the relative returns.

Monthly Returns Relative to Sterling Steady Growth Reference Index (%)

Mar 09 Dec 09 Sep 10 Jun 11 Mar 12 Dec 12 Sep 13 Jun 14 Mar 15 Dec 15 Sep 16 Jun 17

-4

-2

0

2

4

Mo

nth

ly R

etu

rns

%

Portfolio Performance Relative to Sterling Steady Growth Reference Index (%)

3.50.4(0.3)1.3(0.3)1.40.1(0.5)1.02017

(3.6)(1.3)0.91.4(0.1)0.9(1.0)(2.6)0.6(0.4)(0.9)0.3(1.0)2016

3.62.00.7(1.6)0.01.20.70.8(0.7)(0.1)1.0(0.5)0.12015

3.50.2(0.2)0.61.0(1.1)0.92.7(0.3)(0.6)0.2(1.3)1.02014

2.8(0.1)0.5(1.1)(0.7)0.8(1.3)1.01.80.1(1.1)1.90.72013


Significant relative out or under-performance occurred in 13 months out of 104 months.

The worst under-performance was (4.6)% in May 09.

The greatest out-performance was 3.8% in Mar 10.

Over 104 months, the Portfolio out-performed the Sterling Steady Growth Reference Index in 53 months.

Relative Return Comments:






Self Managed


Period Returns - Relative to ARC GBP Balanced Asset PCI

The relative return chart highlights periods where the Portfolio out or under-performed the average PCI discretionary

manager. Bars below the line represent under-performance. Bars above the line show out-performance.

The relative return table beneath highlights in yellow the months where out or under-performance of the Portfolio

relative to the ARC GBP Balanced Asset PCI was more than two percentage points indicating a significant difference in

the relative returns.

Monthly Returns Relative to ARC GBP Balanced Asset PCI (%)


-4

-2

0

2

4

6

Mo

nth

ly R

etu

rns

%

This chart includes estimated ARC PCI data for the months Jul 17, Aug 17

Portfolio Performance Relative to ARC GBP Balanced Asset PCI (%)

3.60.70.01.00.20.30.00.50.72017

6.7(0.4)0.82.00.40.80.01.60.5(0.1)(0.2)0.9(0.2)2016

0.61.30.6(0.7)(0.6)0.20.9(0.4)(1.0)(0.4)1.2(0.5)0.22015

5.2(0.1)0.11.20.40.10.72.7(0.1)(0.1)0.3(0.8)0.52014

4.6(0.2)0.2(0.5)(0.7)0.3(0.2)0.71.50.2(0.8)2.11.62013


Significant relative out or under-performance occurred in 5 months out of 104 months.

The worst under-performance was (3.9)% in May 09.

The greatest out-performance was 5.1% in Mar 10.

Over 104 months, the Portfolio out-performed the ARC GBP Balanced Asset PCI in 56 months.

Relative Return Comments:






Self Managed


-9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9

Monthly Returns %

0

15

30

Freq

uen

cy o

f R

etu

rns

Example Portfolio 52 with cashflows Sterling Steady Growth Reference Index

Statistically, the monthly returns suggest the Portfolio has experienced more strongly negative months than

strongly positive months, a common feature of financial markets.

The average monthly return from the Portfolio is 0.7%. The Portfolio's most common return range is 1.0% -

2.0% per month.

Return Distribution Comments:

Distribution of Returns Portfolio v Peer Group (104 Months)

The histograms below illustrate the spread of monthly returns and are constructed by breaking down the monthly

returns into ranges and plotting the number of returns in each range. The more “peaked” the distribution, the lower the

volatility of returns over the period.

A key feature of financial markets is that they tend to move upwards in small increments and downward in significant

moves, which tends to create a long tail to the left. Active managers can use derivatives and market timing to try to

counteract this effect.

Return Distribution

-9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9

Monthly Returns %

0

15

30

Freq

uen

cy o

f R

etu

rns

This chart includes estimated ARC PCI data for the months Jul 17, Aug 17

Example Portfolio 52 with cashflows ARC GBP Balanced Asset PCI

Distribution of Returns Portfolio v Benchmark (104 Months)






Self Managed


* ARC PCI data estimated for Jul 17, Aug 17

Risk Analysis Comments:

The Portfolio is currently at its reporting period high.

The longest period the Portfolio was below its previous peak was 14 months, compared with 13 months for

ARC GBP Balanced Asset PCI and 15 months for the Sterling Steady Growth Reference Index.


-10

-8

-6

-4

-2

0

Loss

%

Example Portfolio 52 with cashflows Sterling Steady Growth Reference Index ARC GBP Balanced Asset PCI

Portfolio Risk Analysis

The bear market history or ‘Bear's Teeth’ chart plots the extent of mark-to-market valuation declines experienced by

the Portfolio, Sterling Steady Growth Reference Index and the ARC GBP Balanced Asset PCI during bear market periods.

A negative return in any month results in a downward spike commencing on the graph. The bigger the tooth, the

greater the loss. The wider the tooth, the longer the recovery period.

Bear Market History (%)

----53.8Percent outperf. months

1.05.867.362.568.3Percent positive months

(0.5)0.9(2.9)(4.3)(3.4)Worst 12 month period

1.5(10.5)21.133.122.6Best 12 month period

1.4(1.5)5.58.46.9Ann. standard deviation (104 mths)

(1.8)1.3(7.1)(10.2)(8.9)Maximum decline

(2.7)(0.9)(3.5)(5.3)(6.2)Worst month

Portfolio v

Peer Group

Portfolio v

BenchmarkPeer GroupBenchmarkPortfolioStatistic






Self Managed


36 Month Rolling Annualised Standard Deviation (%)

Volatility is the conventional industry definition for financial market risk, usually calculated as the annualised standard

deviation. This statistic measures the expected range of returns over time.

The chart below plots the evolution of the volatility of the Portfolio over time as the annualised standard deviation of

Portfolio returns around the cash rate. For comparative purposes the peer group and any specified benchmark are

plotted along with the Portfolio.

Volatility Analysis

Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17

0

2

4

6

8

10

12

An

n S

tan

dard

Devi

ati

on

%

Example Portfolio 52 with cashflows Sterling Steady Growth Reference Index ARC GBP Balanced Asset PCI

The chart shows, on average, the Portfolio has been less volatile than the Sterling Steady Growth Reference

Index, so it would be expected that in rising markets the Portfolio might under-perform the Benchmark.

The chart shows, on average, the Portfolio has been more volatile than the ARC GBP Balanced Asset PCI, so it

would be expected that in falling markets the Portfolio might under-perform the peer group.

Taking the period as a whole, the annualised standard deviation for the Portfolio has been 6.9%.

The lowest 36 month annualised standard deviation estimated for the Portfolio was 4.9% in May 15.

The estimated 36 month annualised standard deviation of the Portfolio peaked at 9.1% in Dec 11.

Volatility Comments:






Self Managed


Portfolio Peer Group Classification

ARC PCI is a set of risk-based indices designed to be used by private client and their advisers in assessing the

performance of any discretionary portfolio or multi-asset fund with a non-specialist mandate.

80 - 110ARC GBP Equity Risk PCI

60 - 80ARC GBP Steady Growth PCI

40 - 60ARC GBP Balanced Asset PCI

0 - 40ARC GBP Cautious PCI

Relative Risk to Equity Market (%)ARC Private Client Indices (PCI)

There are four ARC PCI indices for each currency, designed specifically for investors with Canadian Dollar, Euro,

Sterling, Swiss Franc or US Dollar as their reference currency. The Peer Group Category has been set by user preference

to ARC GBP Balanced Asset PCI. The auto-calculated Peer Group Category would have been ARC GBP Balanced Asset

PCI.

Asset Allocation Cross-check

The asset allocation as at 31 Aug 2017 for the Portfolio is shown below:

49.5Equities

24.5Other

5.2Fixed Income

20.8Cash

Weighting (%)Asset Class

Portfolio Categorisation Comments:

Based on the asset allocation above, using a weighted risk calculation, it would be expected that the Portfolio

would be in the ARC GBP Steady Growth PCI category. This is a different classification to the category

calculated from the relative risk according to the ARC PCI methodology outlined above. This mismatch

suggests that the Portfolio is conservatively structured relative to typical broad asset class indices.

The user selected Peer Group Category is ARC GBP Balanced Asset PCI. Based on the relative risk for the

Portfolio of 0.54 times world equities, the ARC GBP Balanced Asset PCI would have been recommended for

the purposes of this analysis.






Self Managed


Performance versus Peer Group Universe (Period Ended Jun 17)

The tables below present quartile return statistics to place Portfolio performance into context versus the ARC GBP

Balanced Asset PCI universe of private client discretionary manager averages.

These tables show which quartile the Portfolio performance sits in, relative to the peer group of private client

discretionary manager averages in the same risk range. Results are shown for various periods to Jun 17. The Portfolio

returns in the last line of each of the three tables below have highlighted backgrounds as follows:

1st Quartile (1st - 25th), 2nd Quartile (26th - 50th), (76th - 100th)(51st - 75th), 4th Quartile3rd Quartile

99.165.732.117.52.5Portfolio

95.450.125.813.00.0Benchmark

71.133.214.79.40.775th Percentile

77.640.119.111.11.050th Percentile

83.642.320.512.31.425th Percentile

102 months5 years3 years1 yearLast quarterPercentiles

Cumulative Returns To Jun 17 (%)

Calendar Year Returns (%)

6.415.32.59.713.8Portfolio

3.218.9(1.1)6.211.0Benchmark

3.27.30.94.08.575th Percentile

3.99.81.54.79.850th Percentile

4.410.62.55.411.025th Percentile

YTD2016201520142013Percentiles

36 Month Rolling Returns (%)

32.133.629.627.120.917.2Portfolio

25.828.025.024.619.610.1Benchmark

14.715.413.514.911.58.075th Percentile

19.119.016.617.313.59.450th Percentile

20.520.918.119.415.310.725th Percentile

Q2 2017Q1 2017Q4 2016Q3 2016Q2 2016Q1 2016Percentiles


Portfolio Performance Comments:

Over the last 5 years the return of the Portfolio is in the 1st quartile versus the peer group.

Over the last 3 years the return of the Portfolio is in the 1st quartile versus the peer group.

Over the last 1 year the return of the Portfolio is in the 1st quartile versus the peer group.

The Portfolio has exhibited 1st quartile performance since the start of the reporting period.






Self Managed


Trend of Relative Performance versus Peer Group (Period Ended Jun 17)

1st Quartile (1st - 25th), 2nd Quartile (26th - 50th), (76th - 100th)(51st - 75th), 4th Quartile3rd Quartile

Portfolio Quartile Performance 36 Month Rolling

1st1st1st1st1st1st

Q2 2017Q1 2017Q4 2016Q3 2016Q2 2016Q1 2016

The Portfolio's peer group ranking is based on the performance of the Portfolio versus the ARC GBP Balanced Asset PCI

peer group universe of private client discretionary managers over 36 month rolling periods. The table below shows

which quartile the Portfolio was placed in for the last six quarter ends versus the peer group universe.

The candlestick chart beneath shows the quartile positioning in more detail. For each quarter the range between the

10th and 90th percentiles (thin line) and the 25th and 75th percentiles (the body) is shown. The Portfolio's position is

indicated with an outlined red arrowhead. The height of the candlestick reveals the return dispersion within the peer

group.

Quartile Performance 36 Month Rolling Candlestick Chart

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

0

10

20

30

Retu

rn

Example Portfolio 52 with cashflows Sterling Steady Growth Reference Index

Candlestick Chart Comment:

The quartile ranking of the Sterling Steady Growth Reference Index over time has shown reasonable

consistency.

The quartile ranking of the Portfolio over time has shown reasonable consistency.






Self Managed


About Self ManagedYou have indicated that this portfolio is self managed. By comparing the performance of your portfolio to the PCI, you

can see how well your portfolio is doing versus over 100,000 portfolios being managed by professional investment

managers in the PCI peer group. If your portfolio Performance Grade is worse than C, it might be beneficial to consider

using a discretionary investment manager (DFM) to run the portfolio on your behalf. At suggestus.com we specialise in

understanding the discretionary manager universe and we may be able to assist with the decision over which DFM to

use. Get in touch or ask us a question [email protected]

Investment PhilosophySelf managing a portfolio requires the same level of discipline as a professional discretionary portfolio manager (DFM).

The investment philosophy defines the underlying principles of investing that are being employed when deciding how

to invest the portfolio. For example, do you believe that active managers can outperform markets over the longer term,

if not then you might decide to invest primarily in passive vehicles (e.g. ETFs); do you tend to hold a long term macro-

economic view, leading to a diversified approach perhaps using funds or do you believe in finding value in individual

companies, meaning you would favour a concentrated portfolio of direct equities; you may view alternative investments

as an essential part of a portfolio and therefore have a more multi-asset approach to investing. As well as the general

philosophy it is important to set more specific boundaries for the portfolio. Typically a DFM would agree a risk profile

for the portfolio, a target long term return and a benchmark for ongoing performance comparison; they may also set

asset allocation ranges and concentration limits to prevent the portfolio make-up "creeping" overtime as certain assets

and asset classes out or underperform. This is a good discipline to have for any portfolio as it then sets the background

for ongoing performance analysis.

Brief HistoryOur research suggests that self-managed portfolios tend to under-perform those managed by professional

discretionary investment managers (DFMs). Private clients often choose to self-manage their portfolios, because they

are concerned about the fees that the DFM charges to run the portfolio. The ARC Private Client Indices are calculated

after fees, so the performance figures are representative of the actual returns experienced by the end client. Typically a

DFM will always have an eye to the downside and will aim to minimise losses and maximise gains. As a result there will

be periods, particularly in strongly rising markets, where a DFM may underperform the market. Over the long term and

particularly through more volatile periods, our research shows that DFMs do add value versus a passive strategy.






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Frequently Asked Questions

How did you decide which ARC PCI to compare the Portfolio against?We use the concept of relative risk to equities to identify the degree of volatility (risk) a portfolio has experienced. We use a relative

measure because this gives you a “window” to see the risk you have taken in context of world stock markets. We have defined 4 risk

categories from Cautious (lower risk) to Equity Risk (higher risk); for example, if a portfolio has exhibited roughly half the risk of

equities (40% to 60%), we would call this a Balanced Asset portfolio. This then informs which group of portfolios, or peer group, we

use to compare your portfolio.

Why use risk to classify portfolios?The idea of the indices is to achieve a methodology that can be used across all investment styles that will categorise portfolios in a

common way. The aim being to ensure that portfolios with similar long-term goals are compared like-for-like, no matter how they

are invested to achieve those goals. The definition by risk relative to equities achieves this without the need to use asset allocation

or the name of the particular mandate that a manager applies to it.

Why don’t you use asset allocation to classify my Portfolio?Asset allocation can be misleading as, for example, the equity portion of a “balanced” portfolio might differ significantly between a

multi-asset class portfolio, an absolute return portfolio and a more traditional equity, fixed income and cash portfolio, but their risk

profile may be very similar. Asset allocation may also be viewed as commercially sensitive by some investment managers and asset

classifications may differ between different investment houses, so there can be some complication in comparing like with like based

on asset allocation.

My Portfolio is not doing as well as the ARC PCI, what should I do?Short term deviation in performance is not unusual and most portfolios will out or under-perform over different periods. However,

long term under-performance or a substantial short term underperformance warrants a comment from the investment manager.

Agree a course of action with the manager and a timeframe for the correction (e.g. 6 months) and re-visit the performance at the

end of the “watch” period. If you manage your own Portfolio, perhaps you should consider using a professional firm.

Can you tell me who the best manager is?Manager selection is as much art as science and our experience has shown that although performance is an important factor,

qualitative considerations such as service quality, reporting capability and risk management are also key ingredients in finding the

best manager for your circumstances. It is important to understand why a manager’s performance looks as it does and to establish

whether this performance is likely to persist.

Is my investment manager part of the ARC PCI?See www.suggestus.com for the full list of managers. The ARC PCI are made available to the end user for free and it is free for

managers to be Data Contributors. Some managers choose to pay to receive analysis from ARC on their client portfolio

performance dynamics. All data contributors benefit from understanding where they sit versus their peer group. Unfortunately, not

all investment managers wish to participate in the ARC PCI.

Do the ARC PCI performance figures include investment manager’s fees?Yes, all the ARC PCI indices are constructed using universes of portfolios where performance is submitted after fees (Annual

management charge, custody fee and VAT). Thus the figures reflect the returns actually received by a client.

For more detailed analysis of your Portfolio please contact [email protected].






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100ranked in the bottom 5% of portfoliosF

95ranked between 85% and 95% of portfoliosE

85ranked between 60% and 85% of portfoliosD

60ranked between 30% and 60% of portfoliosC

30ranked between 10% and 30% of portfoliosB

10ranked in the top 10% of portfoliosA

Cumulative Perf (%)ARC PCI Universe (%)Performance Grade

About Suggestus Performance GradesThe table below sets out the mark scheme for the Suggestus Performance Grades. Suggestus Performance Grades rank

a portfolio’s risk-adjusted return versus the PCI universe of more than 100,000 private client discretionary portfolios.

The Suggestus Performance Grade requires a minimum of 18 months performance history and is calculated for the

latest five years or since inception if shorter. If the Portfolio has between 12 and 17 months of performance history, the

Suggestus Performance Grade should be considered indicative and is shown in grey not blue.

About UsSuggestus is the research arm of the ARC Group and is an affiliate of Asset Risk Consultants (ARC), a global investment

consulting practice working for a global client base. As an independent, regulated firm ARC has an established track

record in delivering impartial, proactive investment advice to wealthy families and their advisers.

ARC provides private clients, wealth advisers, trusts and charities with the opportunity to access unbiased advice on

how differing investment styles and approaches can be blended to deliver the highest probability of meeting

investment objectives.

Suggestus provides an extensive research capability designed to assist investors and their professional advisers in

making informed investment decisions. The central aim of the Suggestus research function is to help investors get the

best out of the investment management industry.

Important Information - DisclaimerCopyright Asset Risk Consultants Limited (“ARC”). This report has been created on the basis of performance data

collected by ARC, data extracted from public data sources, from iShares, from Lipper Limited, the Client and data

sourced from investment managers. ARC assumes no responsibility for verifying the accuracy or reasonableness of such

data. Accordingly the Client shall hold harmless ARC, its affiliates and its officers to the extent the report is based on

information provided to ARC which proves to have been inaccurate, incomplete or untrue. No responsibility is assumed

by ARC for the performance of the Portfolio or for investigating the suitability of any investment strategy or for the loss

of value of any Portfolio or failure by that Portfolio to meet or exceed any explicit or implicit performance criteria. The

value of investments may go down as well as up and you may not get back the initial sum invested. This document

should not be construed as investment advice and ARC strongly recommends that investors seek advice from a

qualified IFA or investment manager before making any changes to the Portfolio.

SUS Tag: V4.3.0.21179/LIVE/080917144321/200198047/Graham Harrison






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performance report - suggestus peer review and report... · period ended august 2017 example...

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