tpc model portfolios · tpc risk level 3 ia mixed investment 0-35% shares market composite...

Q4 2019

TPC Model Portfolios

INTEGRITY • VIGILANCETavistock Investments Plc Group

CONTENTS TAVISTOCK PRIVATE CLIENT 2

TAVISTOCK WEALTH 3

HOW TPC WORK WITH TWL 4

TPC MODEL PORTFOLIOS - HOW THEY COMPARE 5

THE SIGNIFICANCE OF CURRENCY HEDGING 6

INVESTING IN THE TPC MODEL PORTFOLIOS 7

TPC RISK LEVEL 3 8

TPC RISK LEVEL 4 10

TPC RISK LEVEL 5 12

TPC RISK LEVEL 6 14

TPC RISK LEVEL 7 16

TPC RISK LEVEL 8 18

TPC INCOME 20

TPC EQUITY GROWTH 22

MANAGER COMMENTARY 24

CHARGES 24

GLOSSARY OF TERMS 25

TPC MODEL PORTFOLIOSQUARTERLY PERFORMANCE

TAVISTOCK PRIVATE CLIENT

TAVISTOCK PRIVATE CLIENT (TPC) MODEL PORTFOLIOSThe TPC Model Portfolios are risk progressive and designed to cater for the varying risk appetite of different investors. Each TPC Model Portfolio provides actively managed multi-asset diversification across equity, bond, commodity and property markets globally, with a blend of index tracking regulated collective investment schemes through Exchange Traded Funds (ETFs) and cash.

OUR INVESTMENT APPROACHWe base investment decisions on our strategic, long term views. We have a preference for index tracking investment products because they provide low-cost exposure to a comprehensive range of assets and markets. Over time, this strategy has provided our portfolios with consistent investment returns in a risk controlled manner.

INVESTMENT OBJECTIVE AND STRATEGY Objective: All TPC Model Portfolios seek to deliver returns above inflation over a rolling five-year period. The margin sought increases with the more risk you take on.

Strategy: The TPC Model Portfolios employ a strategy of diversification across a wide range of asset classes and geographic regions through the use of ETF’s on a medium to long term basis (five years or more).

We believe that through using index-tracking products we reduce investment management costs, remove individual stock risk and avoid the risk of using underperforming active investment managers. TPC Model Portfolios are not suitable for money which might be needed in the short term. The value and your investment can go down as well as up and you may not get back what you originally invested.

ABOUT TAVISTOCK WEALTHYour TPC Model Portfolio is managed through Tavistock Wealth. Tavistock Wealth provide all TPC investors with high quality professional investment management along with significant collective buying power resulting in a highly cost effective portfolio.

2

TAVISTOCK WEALTH

TAVISTOCK GROUP STRUCTUREThe Group has separate investment management and advisory businesses. Tavistock Wealth delivers institutional quality portfolio management at a retail price. Tavistock Wealth Global provides discretionary investment services outside the UK. Our advisory businesses provide compliance, administration and accounting services to independent financial advisers (Tavistock Partners) and to financial advice firms (The Tavistock Partnership). Tavistock Private Client is a multi-award winning practice that provides independent financial advice and investment management services to higher net worth private clients.

INVESTMENT TEAM

Christopher Peel is the Chief Investment Officer of Tavistock Wealth and carries direct responsibility

for all discretionary investments at the firm. Together with John Leiper, CFA, Head of Portfolio

Management, and the portfolio management team, they co-manage the risk progressive range

of ACUMEN Portfolios (UCITS funds) and the TPC Model Portfolios. Christopher is an economics

graduate with more than 30 years’ experience in financial markets, managing both multi-asset

traditional and alternative funds, having held senior management positions at both Citibank and

Salomon Brothers. John has over 10 years’ experience in the investment management industry and is

a CFA® charterholder.

3

THE SIGNIFICANCE OF CURRENCY HEDGING

When is your portfolio subjected to currency risk?• A globally diversified portfolio will be subject to currency risk whenever the portfolio

owns assets denominated in a currency other than sterling

What is the risk to your portfolio?

The risk to your portfolio is that returns can be driven from the movement in currency markets.

A gain made through asset allocation can be wiped out through currency fluctuations potentially

making the strategy upon which the portfolio is constructed redundant.

Consequently, your portfolio may be subjected to movements in currency markets when you are

least expecting it and you could see your investments losing money when expecting to make gains

when you see, for example, overseas equity markets appreciate in value.

The last thing we want to see is your portfolio experiencing ‘Risk Profile 8’ volatility when we have

recommended a ‘Risk Profile 5’.

It’s all about you.

6

TPC MODEL PORTFOLIOS RISK vs RETURN

INVESTING IN THE TPC MODEL PORTFOLIOS

CURRENCY HEDGED

CURRENCY NOT HEDGED

TPC Model Portfolios are managed to Dynamic Planner’s expected volatility range and relative to their respective market composite benchmarks. In order to remain within the defined volatility ranges, the Portfolios hedge their overseas currency exposure back to sterling. If overseas exposure is not hedged the currency markets will impact the returns of the portfolio, and more importantly, the level of volatility the portfolio takes.

Baskets of ETFs constructed by Tavistock primarily using • Market leading range of ETFs

Mitigation of foreign exchange risk through currency hedging:

• Ensuring asset allocation is the driver of returns (rather than currency moves)

Managed to the European regulatory gold standard - UCITS Compliant:• Investment safeguards continually protecting client holdings

Managed to Dynamic Planner’s expected volatility range:• Volatility bands that match the attitude to risk profiles of individual clients

TPC 3

TPC 4

TPC 5

TPC 6

TPC 7

TPC 8

TPC Income

Expected Annualised Volatility Range

7

Esti

mat

ed A

nnua

lised

Ret

urn

ASSET ALLOCATION

REGION ALLOCATION

TPC MODEL PORTFOLIO BENEFITS:

The TPC Risk Level 3 portfolio is managed to Dynamic Planner’s volatility range of 4.20% to 6.30% and has a blended allocation to the range of ACUMEN Portfolios.

RISK PROFILE

8

Government Bonds

Corporate Bonds

Inflation-Linked Bonds

Emerging Market Bonds

Developed Market Equities

Emerging Market Equities

Commodity Equities

Property Equities

Cash

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

TPC Risk Level 3

The investment objective of the TPC Risk Level 3 portfolio is to seek to deliver long term capital growth by investing in a range of global financial markets. The portfolio is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of lower and medium risk investments such as cash, bonds and property as well as a few higher risk investments such as equities and commodities.

INVESTMENT OBJECTIVE

Asset allocation, rather than stock selection, is the key driver of risk and returns and the TPC Model Portfolios are structured accordingly, in line with the Investment Association’s Sector guidelines. Each portfolio is comprised of holdings in the risk progressive ACUMEN Portfolios, which invest in highly diversified baskets of ETFs providing cost effective and tax efficient exposure to global markets. The ACUMEN Portfolios are constructed by Tavistock primarily using

INVESTMENT PHILOSOPHY

On the 30/09/2018 the PBFP Risk Level 1 Portfolio changed its name to the TPC Risk Level 3 Portfolio. The objective and risk parameters of the model portfolio are unchanged.

Industry Leading Risk Management• Comprehensive risk management via a series of in-

house asset class dashboards• Rigorous quantitative analysis using AlternativeSoft

with data from Thomson Reuters Eikon and Lipper for Investment Management

• Relative value technical analysis using Tradesignal

Hedged Currency Exposure• Majority of Overseas portfolio exposure hedged

back to GBP• No unexpected risks within the portfolio• Ensuring portfolio will remain aligned with

specific volatility target

Monitoring of Portfolio• A team of investment professionals will monitor

the portfolio every trading day of the year• Any potential impact of financial markets can be

assessed in real-time• Improvements to portfolios can be identified

quickly

Active Management• Tavistock Private Client can make changes to the

portfolio as required• Enables us to react to markets quickly on your

behalf• Affording you additional protection during times

of market volatility

5.0%

44.0%

25.5%

6.5%

2.5%14.0%

2.5%

48.0%

10.5%

22.5%

4.5%10.5%

4.0%

75

100

125

150

175

75

100

125

150

175

Jan-

08

Jun-

08

No

v-08

Apr

-09

Sep-

09

Feb-

10

Jul-

10

Dec

-10

May

-11

Oct

-11

Mar

-12

Aug

-12

Jan-

13

Jun-

13

No

v-13

Apr

-14

Sep-

14

Feb-

15

Jul-

15

Dec

- 15

May

-16

Oct

-16

Mar

-17

Aug

-17

Jan-

18

Jun-

18

No

v-18

Apr

-19

Sep-

19

9

iShares Fallen Angels High Yield Corp BondiShares Global Govt BondiShares Global High Yield Corporate BondiShares US Mortgage Backed SecuritiesXtrackers II Japan Government Bond

TOP 5 HOLDINGS

Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%), Bloomberg Barclays Global Aggregate Bond GBP Hedged Index (65%) Bloomberg Barclays Global High Yield GBP Hedged Index (20%). MSCI World GBP Hedged (8%) and the MSCI Emerging Market Investable Markets Index (2%).

TPC Risk Level 3IA Mixed Investment 0-35% Shares

Market Composite Benchmark*

TPC Risk Level 3

18th February 2008 - 30th September 2019 TPC Risk Level 3

Annualised Return (%) 4.23Volatility (%) 4.96

Downside Risk (%) 4.61Max Drawdown (%) -6.78

Max Gain (%) 7.84Max Loss (%) -5.00

Negative Periods 38.85Positive Periods 61.15

1 year 3 year 5 year ITD

2.05% 3.98% 15.02% 61.67%

Performance

TPC Risk Level 4


RISK PROFILE

10


ASSET ALLOCATION

Government Bonds

Corporate Bonds





Commodity Equities

Property Equities

Cash


REGION ALLOCATION

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

The investment objective of the TPC Risk Level 4 portfolio is to seek to deliver long term capital growth by investing in a range of global financial markets. The portfolio is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of lower and medium risk investments such as cash, bonds and property as well as a few higher risk investments such as equities and commodities.



On the 30/09/2018 the PBFP Risk Level 2 & 3 Portfolios changed their name to the TPC Risk Level 4 Portfolio. The objective and risk parameters of the model portfolio are unchanged.











quickly





5.5%

30.0%

12.5%

4.5%1.5%

43.0%

3.0%

52.5%

10.5%

18.0%

4.5%10.5%

4.0%

75

100

125

150

175

75

100

125

150

175

Jan-

08

Jun-

08

Nov

-08

Apr

-09

Sep-

09

Feb-

10

Jul-

10

Dec

-10

May

-11

Oct

-11

Mar

-12

Aug

-12

Jan-

13

Jun-

13

Nov

-13

Apr

-14

Sep-

14

Feb-

15

Jul-

15

Dec

-15

May

-16

Oct

-16

Mar

-17

Aug

-17

Jan-

18

Jun-

18

Nov

-18

Apr

-19

Sep-

19

11

iShares Edge MSCI World Minimum Volatility

iShares Edge MSCI World Quality Factor

iShares Fallen Angels High Yield Corp Bond

iShares US Mortgage Backed Securities

MS SciBeta HFE US Equity 6F EW

TPC Risk Level 4







2.80% 7.58% 20.11% 65.96%

Performance

TOP 5 HOLDINGS

Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%), Bloomberg Barclays Global Aggregate Bond GBP Hedged Index (42.5%), Bloomberg Barclays Global High Yield GBP Hedged Index (7.5%), MSCI World GBP Hedged (42%) and the MSCI Emerging Market Investable Markets Index (3%).



TPC Risk Level 5


RISK PROFILE

12

ASSET ALLOCATION

Government Bonds

Corporate Bonds





Commodity Equities

Property Equities

Cash


REGION ALLOCATION

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

The investment objective of the TPC Risk Level 5 portfolio is to seek to deliver long term capital growth by investing in a range of global financial markets. The portfolio is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of lower and medium risk investments such as cash, bonds and property as well as higher risk investments such as equities and commodities.















quickly





5.5%

19.0%

12.0%

2.5%

2.0%

51.5%

6.0% 1.5%

54.0%

11.0%

15.0%

6.5%

7.0%6.5%

75

100

125

150

175

200

75

100

125

150

175

200

Jan-

08

Jun-

08

Nov

-08

Apr

-09

Sep-

09

Feb-

10

Jul-

10

Dec

-10

May

-11

Oct

-11

Mar

-12

Aug

-12

Jan-

13

Jun-

13

Nov

-13

Apr

-14

Sep-

14

Feb-

15

Jul-

15

Dec

-15

May

-16

Oct

-16

Mar

-17

Aug

-17

Jan-

18

Jun-

18

Nov

-18

Apr

-19

Sep-

19

13

TOP 5 HOLDINGS



iShares MSCI USA Quality Dividend



TPC Risk Level 5







3.50% 11.51% 25.34% 74.83%

Performance

Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%), Bloomberg Barclays Global Aggregate Bond GBP Hedged Index (30%) Bloomberg Barclays Global High Yield GBP Hedged Index (5%). MSCI World GBP Hedged (53%) and the MSCI Emerging Market Investable Markets Index (7%).



TPC Risk Level 6


RISK PROFILE

14

ASSET ALLOCATION

Government Bonds

Corporate Bonds





Commodity Equities

Property Equities

Cash


REGION ALLOCATION

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

The investment objective of the TPC Risk Level 6 portfolio is to seek to deliver long term capital growth by investing in a range of global financial markets. The portfolio is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of higher risk investments such as equities and commodities but will also contain a few lower and medium risk investments such as cash, bonds and property.















quickly





6.0%

13.0%

7.5%1.5%

1.5%60.5%

9.0%

1.0%

53.5%

11.0%

12.5%

8.5%

7.0%7.5%

70

95

120

145

170

195

70

95

120

145

170

195

Jan-

08

Jun-

08

Nov

-08

Apr-

09

Sep-

09

Feb-

10

Jul-

10

Dec-

10

May

-11

Oct

-11

Mar

-12

Aug-

12

Jan-

13

Jun-

13

Nov

-13

Apr-

14

Sep-

14

Feb-

15

Jul-

15

Dec-

15

May

-16

Oct

-16

Mar

-17

Aug-

17

Jan-

18

Jun-

18

Nov

-18

Apr-

19

Sep-

19

15

TOP 5 HOLDINGS


iShares Edge MSCI World Multifactor




TPC Risk Level 6







3.33% 15.12% 30.39% 79.87%

Performance

Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%),Bloomberg Barclays Global Aggregate Bond GBP Hedged Index (20%) Bloomberg Barclays Global High Yield GBP Hedged Index (2%), MSCI World GBP Hedged (63%) and the MSCI Emerging Market Investable Markets Index (10%).



TPC Risk Level 7


RISK PROFILE

16

ASSET ALLOCATION

Government Bonds

Corporate Bonds





Commodity Equities

Property Equities

Cash


REGION ALLOCATION

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

The investment objective of the TPC Risk Level 7 portfolio is to seek to deliver long term capital growth by investing in a range of global financial markets. The portfolio is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of higher risk investments such as equities and commodities but will also contain a few lower and medium risk investments such as cash, bonds and property.















quickly





6.5%7.5% 2.5%

63.5%

20.0%

50.0%

10.5%

8.5%

15.0%

6.5%

9.5%

50

75

100

125

150

175

200

50

75

100

125

150

175

200

Jan-

08

Jun-

08

Nov

-08

Apr

-09

Sep-

09

Feb-

10

Jul-

10

Dec

-10

May

-11

Oct

-11

Mar

-12

Aug

-12

Jan-

13

Jun-

13

Nov

-13

Apr

-14

Sep-

14

Feb-

15

Jul-

15

Dec

-15

May

-16

Oct

-16

Mar

-17

Aug

-17

Jan-

18

Jun-

18

Nov

-18

Apr

-19

Sep-

19

17

TOP 5 HOLDINGS



iShares EM Latin America

iShares S&P 500 Information Technology Sector


TPC Risk Level 7







2.53% 19.09% 38.39% 96.15%

Performance

Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%), Bloomberg Barclays Global Aggregate Bond GBP Hedged Index (10%), MSCI World GBP Hedged (65%) and the MSCI Emerging Market Investable Markets Index (20%).

TPC Risk Level 7IA Flexible Investment


TPC Risk Level 8


RISK PROFILE

18

INVESTMENT PHILOSOPHYAsset allocation, rather than stock selection, is the key driver of risk and returns and the TPC Model Portfolios are structured accordingly, in line with the Investment Association’s Sector guidelines. Each portfolio is comprised of holdings in the risk progressive ACUMEN Portfolios, which invest in highly diversified baskets of ETFs providing cost effective and tax efficient exposure to global markets. The ACUMEN Portfolios are constructed by Tavistock primarily using

ASSET ALLOCATION

Government Bonds

Corporate Bonds





Commodity Equities

Property Equities

Cash


REGION ALLOCATION

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

The investment objective of the TPC Risk Level 8 portfolio is to seek to deliver long term capital growth by investing in a range of global financial markets. The portfolio is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of higher risk investments such as equities and commodities but will also contain a few medium risk investments such as bonds and property.













quickly





6.5%

58.5%

35.0%

31.0%

9.5%15.5%

18.0%

6.0%

20.0%

50

75

100

125

150

175

200

225

50

75

100

125

150

175

200

225

Jan-

08

Jun-

08

Nov

-08

Apr-

09

Sep-

09

Feb-

10

Jul-

10

Dec-

10

May

-11

Oct

-11

Mar

-12

Aug-

12

Jan-

13

Jun-

13

Nov

-13

Apr-

14

Sep-

14

Feb-

15

Jul-

15

Dec-

15

May

-16

Oct

-16

Mar

-17

Aug-

17

Jan-

18

Jun-

18

Nov

-18

Apr-

19

Sep-

19

19

TOP 5 HOLDINGS

iShares Global Water

iShares Mexico Capped

iShares MSCI EM SRI

iShares MSCI India


TPC Risk Level 8







2.48% 21.96% 41.51% 101.31%

Performance

Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%), MSCI World GBP Hedged (65%) MSCI Emerging Market Investable Markets Index (30%).

TPC Risk Level 8IA Flexible Investment


TPC Income

The TPC Income portfolio is managed to Dynamic Planner’s volatility range of 8.40% to 10.50%.

RISK PROFILE

20

ASSET ALLOCATION

Government Bonds

Corporate Bonds




Commodity Equities

Property Equities

Cash


On the 30/09/2018 the PBFP Income Portfolio changed its name to the TPC Income portfolio. The objective and risk parameters of the model portfolio are unchanged.

REGION ALLOCATION

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

The investment objective of the TPC Income portfolio is to seek to deliver income with the potential for capital growth by investing in a range of global financial markets. The Fund is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of lower and medium risk investments such as cash, bonds and property as well as a few higher risk investments such as equities and commodities.














quickly





8.0%

12.0%

21.5%

6.5%

42.0%

4.0%6.0%

53.0%

11.0%

17.5%

4.5% 7.0%7.0%

75

100

125

150

175

200

225

250

75

100

125

150

175

200

225

250

Jan-

09

May

-09

Sep-

09

Jan-

10

May

-10

Sep-

10

Jan-

11

May

-11

Sep-

11

Jan-

12

May

-12

Sep-

12

Jan-

13

May

-13

Sep-

13

Jan-

14

May

-14

Sep-

14

Jan-

15

May

-15

Sep-

15

Jan-

16

May

-16

Sep-

16

Jan-

17

May

-17

Sep-

17

Jan-

18

May

-18

Sep-

18

Jan-

19

May

-19

Sep-

19

21

TPC Income

2nd March 2009 - 30th September 2019 TPC Income





Performance1 year 3 year 5 year ITD

3.79% 10.08% 28.61% 131.59%

TOP 5 HOLDINGS

iShares $ Short Duration High Yield Corp Bond

iShares Euro Dividend

iShares J.P. Morgan EM Local Govt Bond

iShares MSCI USA Quality Dividend

Vanguard FTSE All-World High Dividend Yield

Income Target

3.50% - 4.00%

Rolling 1 Year Income Yield

3.56%

TPC IncomeIA Mixed Investment 20-60% Shares


Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%), Bloomberg Barclays Global Aggregate Bond GBP Hedged Index (30%), Bloomberg Barclays Global High Yield GBP Hedged Index (10%). MSCI World GBP Hedged (45%) and the MSCI Emerging Market Investable Markets Index (10%).

TPC Equity Growth

The TPC Equity Growth portfolio is managed to Dynamic Planner’s volatility range of 14.70% to 16.80% and has a blended allocation to the range of ACUMEN Portfolios.

RISK PROFILE

22

ASSET ALLOCATION

Government Bonds

Corporate Bonds





Commodity Equities

Property Equities

Cash


On the 30/09/2018 the PBFP Equity Growth portfolio changed its name to the TPC Equity Growth portfolio. The objective and risk parameters of the model portfolio are unchanged.

REGION ALLOCATION

North America

United Kingdom

Europe ex UK

Asia ex Japan

Japan

Rest of World

The investment objective of the TPC Equity Growth portfolio is to seek to deliver long term capital growth by investing in a range of global financial markets. The portfolio is actively managed and comprised of multi-asset investments. The portfolio is typically comprised of higher risk investments such as equities and commodities but will also contain a few medium risk investments such as bonds and property.














quickly





6.5%

58.5%

35.0%

31.0%

9.5%15.5%

18.0%

6.0%

20.0%

75

100

125

150

175

200

225

250

275

300

325

350

75

100

125

150

175

200

225

250

275

300

325

350

Jan-

09

May

-09

Sep-

09

Jan-

10

May

-10

Sep-

10

Jan-

11

May

-11

Sep-

11

Jan-

12

May

-12

Sep-

12

Jan-

13

May

-13

Sep-

13

Jan-

14

May

-14

Sep-

14

Jan-

15

May

-15

Sep-

15

Jan-

16

May

-16

Sep-

16

Jan-

17

May

-17

Sep-

17

Jan-

18

May

-18

Sep-

18

Jan-

19

May

-19

Sep-

19

Date of data: 30th September 2019. Source of data: Tavistock Private Client and Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management. The TPC Model Portfolio returns are quoted net of fees. *The Market Composite Benchmark (GBP Hedged) is the Sterling Overnight Index Average (5%), MSCI World GBP Hedged (65%) MSCI Emerging Market Investable Markets Index (30%).

23

TOP 5 HOLDINGS

iShares Global Water

iShares Mexico Capped

iShares MSCI EM SRI

iShares MSCI India


TPC Equity Growth

2nd March 2009 - 30th September 2019 TPC Equity Growth



Max Gain (%) 11.74Max Loss (%) -6.87


Performance1 year 3 year 5 year ITD

2.48% 20.26% 46.92% 234.00%

TPC Equity GrowthIA Flexible Investment


MANAGER COMMENTARY - SEPTEMBER 2019

US manufacturing contracted for the first time in 3 years in August fuelling concerns further weakness may lie ahead. However, the market mood improved noticeably following upbeat employment data, which grew at the fastest rate in 4 months, and ‘non-manufacturing’ data increased well ahead of market expectations. In Asia, Carrie Lam, Hong Kong’s chief executive, withdrew the controversial extradition bill which had sparked pro-democracy protests across the city-state. The significant de-escalation in political risk sparked a rally in the Hang Seng equity index, setting the tone for the month. The bullish mood spread to developed markets where the MSCI World equity index rose 2.18%. In Europe, the region wide Stoxx 600 index rose 3.60%, led by Italy, following an agreement between the anti-establishment Five Star Movement and the centre left Democratic party. Reduced political risk was also good for the country’s bonds. The Italian Treasury took full advantage of the reduced funding costs, selling €7.5 billion of new debt at record levels. It was a different story in the US and Germany, where 10-year government bond yields rose 16bp and 14bp respectively. In the UK, the Battle for Brexit escalated further as the Supreme Court ruled Prime Minister Boris Johnson had misled the Queen by advising her to prorogue parliament. Boris Johnson accepted the ruling but argued it was the wrong outcome for the country. As such it proved a volatile month, for politics and markets, as evidenced by sterling which fluctuated between 1.20 and 1.26 versus the US dollar. In commodity markets, the S&P Goldman Sachs Commodity index rose 1.75%, led higher by the agricultural sub-sector which rose 5.25%. Brent crude rose 0.58% to $60.78 a barrel and gold fell -3.15% to $1,472 per ounce.

CHARGES

24

TAVISTOCK PROFILE CHARGES

PORTFOLIO AMC

TAVISTOCK PROFILE CHARGES

PORTFOLIO

1.03%

1.09%

1.12%

1.13%

1.10%

1.17%

1.14%

1.17%

OCF TOTAL TRANSACTIONAL COSTS

ESTIMATED TOTAL COSTS

0.06%

0.08%

0.02%

0.04%

-0.02%

0.02%

0.15%

0.02%

1.09%

1.17%

1.14%

1.17%

1.08%

1.19%

1.29%

1.19%

TPC MODEL PORTFOLIO CHARGES

TPC Risk Level 3

TPC Risk Level 4

TPC Risk Level 5

TPC Risk Level 6

TPC Risk Level 7

TPC Risk Level 8

TPC Income

TPC Equity Growth

GLOSSARY OF TERMS

Downside RiskDownside risk is a measurement which only looks at negative returns. It represents an estimation of the potential loss in negative market conditions. It could be considered as an estimate of the potential loss on any investment.

Max DrawdownRepresents the worst possible return since inception. E.g. Buying at the maximum price over the period and selling at the worst.

Max GainRepresents the best running return since inception. E.g. The longest running consecutive gain with-out making a loss.

Max LossRepresents the worst running return over the since inception. E.g. The longest running consecutive loss without making a gain.

Negative PeriodsIndicates percentage number of negative weekly returns.

Positive PeriodsIndicates percentage number of positive weekly returns.

Annualised ReturnThe annualised return of the instrument since inception.

VolatilityStandard deviation is a statistical measurement which, when applied to an investment fund, express-es its volatility, or risk. It shows how widely a range of returns varied from the fund’s average return over a particular period. Low volatility reduces the risk of buying into an investment in the upper range of its cycle, then seeing its value fall towards the lower extreme. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%. Another fund with the same average return and 5% vol-atility would return between 10% and nothing. While volatility is specific to a fund’s particular mix of investments, and comparison to other portfolios is difficult, clearly, for those that offer similar returns, the lower-volatility funds are preferable. There is no point in taking on higher risk than necessary in order to achieve the same reward.

Market Composite BenchmarkAn index based on pre-determined weights, composed of equities, bonds or any combination of asset classes, whose value is measured and used for comparative performance purposes against the TPC Model Portfolios.

25

The value of investments held in the TPC Model Portfolios may fall as well as rise. Past performance should not be seen as an indication of future performance.

Tavistock Private Client Limited and Tavistock Wealth Limited are authorised and regulated by the Financial Conduct Authority. Tavistock Private Client Limited and Tavistock Wealth Limited are wholly

owned subsidiaries of Tavistock Investments Plc.

Tavistock Private Client, Tennyson House, Cambridge Business Park, Cambridge , CB4 0WZ www.tavistockprivateclient.com - [email protected]

THIS DOCUMENT IS ISSUED BY TAVISTOCK WEALTH LIMITED AND IS FOR USE BY FINANCIAL ADVISERS ONLY. IT SHOULD NOT BE RELIED UPON BY A RETAIL CLIENT. This document does not constitute an offer to subscribe or invest in the TPC Model Portfolios nor buy or sell shares in the ACUMEN Portfolios. The ACUMEN Portfolios are sub-funds of the ACUMEN OEIC. The Prospectus is the only authorised document for offering shares in the ACUMEN Portfolios and investors are required to read the Key Investor Information Document (KIID) before investing. Documentation is available free of charge at www.ifslfunds.com or by calling 0845 1231084. Tavistock Wealth Limited does not provide investment advice. This document may not be reproduced, disclosed or distributed without the prior written permission of Tavistock Wealth Limited. iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are used under license. Further, BlackRock, Inc. and its affiliates including, but not limited to, BlackRock Investment Management (UK) Limited, are not affiliated with Tavistock Wealth Limited and its affiliates. Accordingly, BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by Tavistock Wealth Limited or any of its affiliates. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service offered by Tavistock Wealth Limited or any of its affiliates. The Market Composite Benchmark was amended on the 30th September 2019, data is therefore live from this date. Data prior to this date is the historical Market Composite Benchmark information which is available upon request or can be sourced via previous versions of this document. The Rolling 1 year dividend yield as of the valuation point of the underlyingholdings on 30/09/19 (applicable to income share class only). The yield incorporates the NAV as of the valuation point date. Source of data: Tavistock Private Client, Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated. All performance data up until 31/12/16 has been provided by Tavistock Private Client. As of 01/01/17, all TPC Model Portfolios invest in a blend of the ACUMEN Portfolio range. All performance data thereafter is provided by Tavistock Wealth Limited. Date of data: 30th September 2019 unless otherwise stated.

Speak with your Financial Adviser or contact us on + 44 (0) 1223 696100

tpc model portfolios · tpc risk level 3 ia mixed investment 0-35% shares market composite...

Documents