valuations Mr A Other Winter 2009
better performance through
better research
Alan Saunders’ investment review of the year
Are markets now ahead of the game?
Alan Saunders
At the time of writing, in early December, the strong equity market recovery of the previous quarters is holding, albeit nervously. The underlying assumption behind the change in investor sentiment, namely that the world economy is on a recovery path, has not yet been challenged. All risk assets have rallied together, including commercial property, credit and commodities. So, the question arises: have markets got ahead of themselves?
Investment Committee Chairman Alan Saunders is the independent advisor to Dorset County Council Pension Fund, and a trustee and member of the Investment Committee of the ICL (Fujitsu) Pension Scheme.
. . . we cannot discount a w-shaped recovery
The Economy The UK continues to be in recession but the US has now joined Europe and Japan in reporting recovery, while many emerging markets are growing rapidly again. It is not entirely clear why the UK is lagging, given the amount of policy stimulus and sterling’s depreciation. Elsewhere, recovery has come from reviving exports and restocking, as companies realised that demand was not collapsing as quickly as feared. Consumer spending has held up reasonably well even though consumers are trying to rebuild savings in the US and UK. Importantly, the housing market in both countries appears to be stabilising, with prices beginning to firm. Car scrappage schemes have done a good job in propping up demand, but the latest US data suggest we cannot take consumer confidence for granted. There is a second leg to the US stimulus package which the UK cannot afford, while the new German coalition is promising large tax cuts. A reversal of the recent stimulus in light of epic budget deficits is unlikely. Similarly, while some countries have raised rates, the US, UK and Europe are unlikely to follow yet. We cannot discount yet the possibility of a W-shaped recovery with a possible reversal next year. Rapid growth in China, India and Brazil is a welcome feature in assisting the mature economies, although it puts upwards pressure on commodity prices. There is much talk of an inflation problem ahead, to which I give little credence. Policy makers are insistent they will withdraw the stimulus and I give them the benefit of the doubt. In any case, weak demand and high unemployment make a return to inflationary wage demands unlikely.
The pound remains weak against the euro and yen but has recovered some 10% against the dollar. The dollar is friendless, reflecting the end of the risk aversion phase in markets; active investors are borrowing dollars to invest elsewhere, driving the currency down. This creates an unwelcome backdrop to financial markets.
Fixed Interest In the UK, ten-year gilt yields peaked at 4% but have dropped below 3.5%, still above the 3% floor reached in March at the depth of the equity market’s despair. Index linked yields have also fallen as inflation fear rises. Corporate bond spreads have continued to narrow. Current levels remain high, discounting a recession, but seem likely to fall gradually.
Property Given weak rental growth, the market looks ahead of the fundamentals. The return of buyers, often from overseas, and the absence of sellers has created an apparent bubble in the market. Banks are holding property from failing covenants, and sales of this could be a damper on the market.
Equities Liquidity has returned to most sectors. Corporate profits are slightly ahead of down-wardly revised expectations. Analysts are forecasting rises of up to 20% for next year. The return of bid activity has also boosted market sentiment. After this year’s rebound, I expect some consolidation in the near-term: hopefully, it will not extend into a full-blown correction. Looking to 2010, equity markets could reach higher levels, but progress may be rather choppy. On longer-term measures, such as P / E ratios, markets look fairly valued, rather than cheap.
Mr A N Other
Allenbridge Group plc
Flat 1
17 Hill Street Mayfair
Mayfair House
London W1J 5NZ
Castle Rose
Tel 020 7409 1111
Bromley
Fax 020 7629 7026
Surrey
www.allenbridge.co.uk
W1J 5NZ Saturday 9th January 2010
Your Winter 2009 valuation Dear Mr Other, Welcome to your Winter 2009 Valuation. You should have received your copy of our latest ISA Direct issue 33. Please let us know if not, or if you would like another copy. I thought I would also take this opportunity to make some suggestions. 1. Is it time to "Go Green"? In the spirit of the Copenhagen ‘climate change’ summit, we at Allenbridge are trying to do our bit to help, by using paper and printing technology that is kinder to the environment. However you can also help us play a bigger role in reducing our carbon footprint by "Going Green". Simply opt to receive your valuation and all correspondence from us by email. You will also get all your correspondence much quicker as well. So, to help, please do ONE of the following: a. Log onto the Allenbridge website, go to "My details", and click on the "Go Green" tree. b. Email valuations@allenbridge.co.uk with your account number and Go Green in the subject line c. or, just call Kane Caulfield or Richard Ayles on 0800 33 99 99. As a token of our appreciation for your help, we will donate £15 to the Woodland Trust charity to plant a tree in your name. You will receive, in due course, a personal certificate and a map showing the location of your chosen tree. 2. ISA allowances rise for the over 50s From 6th October the ISA allowance rose by an extra £3,000 for all those who will be aged 50 or over by next 6th April 2010. It is easy to top-up your ISA online, or ask us for an application form. 3. Are you worried by interest rate cuts on your savings? Many clients have contacted us seeking alternative homes for short term money that has benefitted from maturing fixed rate deposits. We have scoured the market and found a special account with Investec Private Bank. Simply put, they will track the highest paying 90 day accounts and pay you an average of the top five rates. They will automatically adjust the rates whenever they occur so you do not have to keep chasing the best rates. The minimum amount required to open an account is £25,000. Please call Andrew Graham or Michael Burgess on 0800 33 99 99 for further details. 4. Allenbridge Strategic Alpha Fund – Let us take the strain For those of you who often tell us how much you value the quality of our research, but don’t have time to act on our recommended changes, the Strategic Alpha Fund is, we believe, the solution. If you look at the latest fund fact sheet inside the back cover of your valuation, you can see how it has performed. I am hardly impartial, but our investment team has an outstanding track record over the past seven years. It’s a tribute to the skills of my colleagues that we are now ranked in the top five financial, consultancy and research services of the Citywealth Global Leaders List 2010 and also among the Top 50 Private Client Practitioners 2009 list in the UK.
Registered Office: Devonshire House 60 Goswell Road London EC1N 7AD Registered in England No: 1919345 Authorised and regulated by the Financial Services Authority
5. Self Invested Personal Pensions (SIPPs): an opportunity Many astute investors are consolidating their pension plans into a SIPP (Self Invested Personal Pension) to allow them greater investment flexibility. Cofunds and Fundsnetwork now offer their own SIPP accounts. Ask us for more information on this increasingly popular pension investment opportunity. We also offer low-cost Stakeholder Pensions. 6. Dealing by telephone We encourage you to deal online to reduce dealing times. However several clients using fund supermarkets have asked us to accept instructions by telephone for new ISAs, fund switching, and top-ups. To do the same, sign the Telephone Dealing Form at the back of this brochure, as we require your written authority to do this if you would like us to accept your instructions. You can see full copies of the terms on our website. Alternatively, we will happily send them to you. Our new Dealing fax is 020 7318 6344 - use this if you prefer; Cofunds and Fundsnetwork clients can switch funds with a clearly worded letter or fax setting out the fund choices. 7. How to protect your ISA allowance. Why not hold cash within your ISA? If you wish to use your ISA allowance or are considering an ISA transfer but have not yet decided which fund(s) to select, here is a sensible suggestion. Why not make use of Fundsnetwork’s ISA Cash Park or Cofunds' Cash Reserve within your ISA? You can invest your allowance now, and pick funds later in the year. You can also switch out of your existing fund holdings into these temporary cash deposit facilities. This will help you protect your account from moves in the stockmarket, without losing your tax-free benefits. 8. Private Client Service As you may know, we provide a portfolio management service from £500,000, underpinned by our considerable expertise in fund selection, with ongoing monitoring for private investors, trusts and SIPPs. I will not “puff” the results that clients enjoy, but for more details, just call Jason Day, Director of Private Clients on 020 7318 6337. 9. Child Trust Funds – The Next Generation From 1st September 2009 the second round of government vouchers began to be issued to children when they reach seven years old. Remember to submit the new voucher via our offices before it expires. Further contributions of up to £1,200 can be made by parents and other family members. Just call us on 0800 33 99 99 or refer to ISA Direct for more details and for information on how to transfer Cash CTFs into the Children’s Mutual Baby Bond. 10. Our Special Introductory Offer: £25 Marks and Spencer voucher as a "thank you" Do you like what we are doing? If so, can you think of a friend or family member who would appreciate the benefits of our unique research, portfolio monitoring and AllenbridgeCare services? Just let us know – and as a mark of our appreciation we will send you a £25 Marks & Spencer voucher for every new client introduction. If you have any questions relating to your valuation statement, please ask to speak to Kane Caulfield or Richard Ayles on 0800 33 99 99. Yours sincerely,
Anthony H. Yadgaroff Group Managing Director P.S. May I suggest that, if your valuation satisfies you, you might consider giving any other funds or accounts that you have the benefit of our monitoring and research services. If so, please let me know –in an email to me personally (ay@allenbridge.co.uk), or by calling me on 0800 33 99 99.
Your Valuation
AllenbridgeCare Sector Weightings
Mr A N Other Account: 1234 Valuation date: Winter 2009
China (33.96%) Global Emerging Mkts (24.45%) UK Equity - Smaller Companies (18.35%) High Yield Bonds (10.91%) TBA (9.94%) UK Equity Income (2.38%)
Page 1 of 1 Fund holding grouped by sector
Holding
Price (p)
Value (£)
Score
434.00
634.15
£2,752.21
7-
BlackRock Emerging Markets Acc
450.00
301.90
£1,358.55
7
Gartmore Emerging Mkts Opps Acc
450.00
138.53
£623.38
2
450.00
196.58
£884.61
5
450.00
179.10
£805.95
N/A
450.00
330.48
£1,487.16
5-
449.51
42.99
£193.24
9
China (33.96 %) Gartmore China Opps Ret Acc Global Emerging Mkts (24.45 %)
High Yield Bonds (10.91 %) Invesco Monthly Inc + Acc TBA (9.94 %) FN Fidelity Asian Spcl Sits GBP UK Equity - Smaller Companies (18.35 %) Liontrust Intellectual Capital UK Equity Income (2.38 %) Schroder Income Maximiser Inc Total
£8,105.10
N.B. Valuations are based on closing bid prices on 31st December 2009. If you think we have made a mistake, please tell us on the enclosed Errors & Omissions form. If you wish to add more funds to AllenbridgeCare please send us a Request for Change of Agency form (enclosed) for each fund manager.
Gartmore China Opportunities
Data as at 4th January 2010
FUND RETURN: 12.6% pa over the last 36 months compared to a sector average of 10.6% pa. Overall Allenbridge Score: Average. Allenbridge View: HOLD
Allenbridge scores
3 years
1 year
Total return (within sector)
9
5
Omega Ratio - Downside Risk (within sector) Omega Ratio - Upside Potential (within sector)
4
6
10
6
Overall Score
7-
The scores range from between 1 (bottom 10%) to 10. The overall score is an average of the scores on the left. The minus sign indicates that performance has significantly deteriorated over the past 12 months. A HIGH SCORE DOES NOT IMPLY A RECOMMENDATION.
Fund Statistics compared to sector Total Return %
3 Months
6 Months
1 Year
3 Years
5 Years
Gartmore China Opportunities
13.3
24.0
34.2
42.9
151.5
Sector Average: China
12.6
24.6
36.0
35.2
130.7
6/9
2/7
2/5
Rank in Sector
Charts of performance over five years (or since first full month if later) Relative Performance
Total Return 325
120
300
115
275
110
Percent
Percent
250 225 200 175
100
150
95
125 100 Jan-05
105
Jan-06
Jan-07
Jan-08
90 Jan-05
Jan-09
This chart shows the total return (capital plus reinvested income) of both fund and sector over the past 5 years. Gartmore China Opportunities
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the return of the fund relative to the sector over the past 5 years. The fund line rises when the fund is outperforming the sector and vice versa.
China
For full graph analysis see www.allenbridge.co.uk/pdf/297869.pdf
BlackRock Emerging Markets
Data as at 4th January 2010
FUND RETURN: 7.6% pa over the last 36 months compared to a sector average of 8.1% pa. Overall Allenbridge Score: Good. Allenbridge View: HOLD
Allenbridge scores
3 years
1 year
Total return (within sector)
5
5
Omega Ratio - Downside Risk (within sector)
7
7
Omega Ratio - Upside Potential (within sector)
8
9
Overall Score
7
The scores range from between 1 (bottom 10%) to 10. The overall score is an average of all the scores over 1 and 3 years. A HIGH SCORE DOES NOT IMPLY A RECOMMENDATION.
Fund Statistics compared to sector Total Return %
3 Months
6 Months
1 Year
3 Years
BlackRock Emerging Markets
3.7
30.3
42.7
24.4
114.8
Sector Average: Global Emerging Mkts
7.5
30.5
44.3
26.5
121.8
17 / 29
14 / 26
12 / 23
Rank in Sector
5 Years
Charts of performance over five years (or since first full month if later) Relative Performance
Total Return 250
105
225 100
Percent
Percent
200 175 150
95
125 100 Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the total return (capital plus reinvested income) of both fund and sector over the past 5 years. BlackRock Emerging Markets
Global Emerging Mkts
90 Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the return of the fund relative to the sector over the past 5 years. The fund line rises when the fund is outperforming the sector and vice versa. For full graph analysis see www.allenbridge.co.uk/pdf/58608.pdf
Gartmore Emerg Mkts Opportunit
Data as at 4th January 2010
FUND RETURN: 4.7% pa over the last 36 months compared to a sector average of 8.1% pa. Overall Allenbridge Score: Poor. Allenbridge View: CONSIDER TRANSFER
Allenbridge scores
3 years
1 year
Total return (within sector)
2
1
Omega Ratio - Downside Risk (within sector)
2
2
Omega Ratio - Upside Potential (within sector)
5
3
Overall Score
2
The scores range from between 1 (bottom 10%) to 10. The overall score is an average of all the scores over 1 and 3 years. A HIGH SCORE DOES NOT IMPLY A RECOMMENDATION.
Fund Statistics compared to sector Total Return %
3 Months
6 Months
1 Year
3 Years
5 Years
Gartmore Emerg Mkts Opportunit
8.4
30.2
36.3
14.8
108.2
Sector Average: Global Emerging Mkts
7.5
30.5
44.3
26.5
121.8
27 / 29
22 / 26
15 / 23
Rank in Sector
Charts of performance over five years (or since first full month if later) Relative Performance
Total Return 110
275 250
105
200
Percent
Percent
225
175 150
100
95
125 100 Jan-05
Jan-06
Jan-07
Jan-08
90 Jan-05
Jan-09
This chart shows the total return (capital plus reinvested income) of both fund and sector over the past 5 years. Gartmore Emerg Mkts Opportunit
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the return of the fund relative to the sector over the past 5 years. The fund line rises when the fund is outperforming the sector and vice versa.
Global Emerging Mkts
For full graph analysis see www.allenbridge.co.uk/pdf/297887.pdf
IP Monthly Income Plus Inc
Data as at 4th January 2010
FUND RETURN: 0.6% pa over the last 36 months compared to a sector average of 1.4% pa. Overall Allenbridge Score: Average. Allenbridge View: HOLD
Allenbridge scores
3 years
1 year
Total return (within sector)
5
4
Omega Ratio - Downside Risk (within sector)
7
3
Omega Ratio - Upside Potential (within sector)
4
5
Overall Score
5
The scores range from between 1 (bottom 10%) to 10. The overall score is an average of all the scores over 1 and 3 years. A HIGH SCORE DOES NOT IMPLY A RECOMMENDATION.
Fund Statistics compared to sector Total Return %
3 Months
6 Months
1 Year
3 Years
5 Years
IP Monthly Income Plus Inc
5.3
23.4
26.8
1.7
23.0
Sector Average: High Yield Bonds
3.1
20.6
30.2
4.3
19.1
17 / 25
12 / 23
6 / 23
Rank in Sector
Charts of performance over five years (or since first full month if later) Relative Performance
Total Return 130
110
125 120 105
Percent
Percent
115 110 105 100
100
95 90 85 Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the total return (capital plus reinvested income) of both fund and sector over the past 5 years. IP Monthly Income Plus Inc
High Yield Bonds
95 Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the return of the fund relative to the sector over the past 5 years. The fund line rises when the fund is outperforming the sector and vice versa. For full graph analysis see www.allenbridge.co.uk/pdf/52984.pdf
Liontrust Intellectual Capital
Data as at 4th January 2010
FUND RETURN: -3.1% pa over the last 36 months compared to a sector average of -7.9% pa. Overall Allenbridge Score: Average. Allenbridge View: HOLD
Allenbridge scores
3 years
1 year
Total return (within sector)
9
3
Omega Ratio - Downside Risk (within sector) Omega Ratio - Upside Potential (within sector)
10
2
5
3
Overall Score
5-
The scores range from between 1 (bottom 10%) to 10. The overall score is an average of the scores on the left. The minus sign indicates that performance has significantly deteriorated over the past 12 months. A HIGH SCORE DOES NOT IMPLY A RECOMMENDATION.
Fund Statistics compared to sector Total Return %
3 Months
6 Months
1 Year
3 Years
Liontrust Intellectual Capital
3.9
22.0
30.4
-9.1
18.0
Sector Average: UK Equity - Smaller Companies
2.2
23.7
40.6
-21.9
18.6
39 / 54
5 / 46
20 / 41
Rank in Sector
5 Years
Charts of performance over five years (or since first full month if later) Relative Performance
Total Return 170
110
160
105
150
100
Percent
Percent
140 130 120 110
90
100
85
90 80 Jan-05
95
Jan-06
Jan-07
Jan-08
80 Jan-05
Jan-09
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the total return (capital plus reinvested income) of both fund and sector over the past 5 years.
This chart shows the return of the fund relative to the sector over the past 5 years. The fund line rises when the fund is UK Equity - Smaller Companies outperforming the sector and vice versa.
Liontrust Intellectual Capital
For full graph analysis see www.allenbridge.co.uk/pdf/74207.pdf
Schroder Income Maximiser
Data as at 4th January 2010
FUND RETURN: -1.4% pa over the last 36 months compared to a sector average of -6.4% pa. Overall Allenbridge Score: Excellent. Allenbridge View: HOLD
Allenbridge scores
3 years
1 year
Total return (within sector)
10
8
9
8
10
9
Omega Ratio - Downside Risk (within sector) Omega Ratio - Upside Potential (within sector)
Overall Score
9
The scores range from between 1 (bottom 10%) to 10. The overall score is an average of all the scores over 1 and 3 years. A HIGH SCORE DOES NOT IMPLY A RECOMMENDATION.
Fund Statistics compared to sector Total Return %
3 Months
6 Months
1 Year
3 Years
5 Years
Schroder Income Maximiser
2.8
23.4
19.4
-4.3
-
Sector Average: UK Equity Income
5.7
25.1
18.2
-18.0
-
19 / 71
3 / 66
-
Rank in Sector
Charts of performance over five years (or since first full month if later) Relative Performance
Total Return 140
120
130
115 110
110
Percent
Percent
120
100
100
90
95
80 70 Jan-05
105
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the total return (capital plus reinvested income) of both fund and sector since the outset of the fund. Schroder Income Maximiser
UK Equity Income
90 Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
This chart shows the return of the fund relative to the sector since the outset of the fund. The fund line rises when the fund is outperforming the sector and vice versa. For full graph analysis see www.allenbridge.co.uk/pdf/299755.pdf
Explanation of the charts and statistics
Allenbridge Scores We have designed the Allenbridge scoring system to give an overall indication of the quality and past performance of each fund. The scoring system measures total return, downside risk and upside potential (calculated from the omega ratio – see below) over both one and three years relative to all the other funds in the sector. This gives six scores of 1 (the worst) to 10 in each area which we then combine to give an overall score. Where there is less than three years’ past performance, the average score is based on just the past years’ data and is shown in brackets. Where performance over one year has significantly improved or deteriorated compared to that over three years, this is shown by a + or - after the overall score.
Charts of performance over five years (or since first full month if later) In these charts we compare the return of the fund (including reinvested income) to the return of the average fund in the sector. Both total return and relative performance charts are shown.
Total Return (chart) The graph plots actual rises and fall in the value of the fund (solid line) and the sector average (broken line), including reinvested income.
Relative Performance (chart) N.B. A high score does not necessarily imply a recommendation. The scores are purely based on historical performance and there may be other factors such as a change in manager or in market conditions that are not reflected in these statistics.
The Omega Ratio The downside risk and upside potential scores are based on a statistical measure called the omega ratio. We calculate this using historic rolling quarterly returns over the measurement period, to estimate the likelihood of the fund falling by more than a given percentage (the downside calculation) or rising by more than a given percentage (the upside calculation).
Fund Statistics compared to sector (table) These statistics show the total return of the fund and the sector over various periods and also give the rank of the fund within the sector over one, three and five years.
This graph shows the performance of the fund (solid line) relative to the sector average (flat broken line). This chart is particularly helpful in indicating how well a fund is performing relative to its peers. When the relative performance graph is rising the fund is performing better than the sector average and vice versa. The graph could be rising, even though the total return graph is falling. This would indicate that, although the fund is falling in value, it is not falling as fast as the sector as a whole. Similarly in a rising market, a fund which performs less well than the sector will have a falling relative performance graph. A steadily rising graph indicates a fund which consistently outperforms the sector whereas a fluctuating graph indicates more volatility relative to the sector.
Managing your existing investments
Allenbridge have always sought to give you the best possible help so that you can make the most of your investments.
Managing investments outside a fund supermarket Sadly there is no easy option for clients whose holdings are
As an Allenbridge client you can manage your own
outside the supermarkets. If you are moving between one fund
portfolio very easily – especially if you use a fund
and another held by the same account manager, we can accept
supermarket which allows you to top up, switch and sell.
your signed letter. We would advise telephoning us to discuss any
Some of you are not yet using one and as a result are
change being considered, as each such change may have its own
limiting your options. We strongly recommend you move
costs and potential issues. We will also help to identify the best
your portfolio into a fund supermarket. There is more
way to proceed if you are moving between fund managers.
information about supermarkets in ISA Direct – alternatively, call us and we will be happy to explain.
Selling or withdrawing
You can access your fund supermarket in three ways:
If you want to sell holdings and have the money sent to you a signed letter will be needed. No monies will be sent out without the account holder’s signature. You can request a cheque or have
www.allenbridge.co.uk To use the internet to manage your holdings through a supermarket, call us first so we can help you get started and clear up any queries. After that you will be free to make changes to your portfolio whenever you find
the money sent directly to a bank account in the account holder’s name. Provide full bank details in your letter.
Fund supermarket costs Charges are limited to a flat rate of 0.25% and changing funds within a fund supermarket is quick and easy.
convenient. You can even top up your ISA.
Adding to your current year ISA (topping up) If you have put money into your ISA in the current tax year but
telephone 0800 33 99 99 We can take switch and top-up instructions
have not invested the maximum sum you may top it up. Unused ISA allowances from previous tax years have been lost.
by phone – please ask for the Investment Team. In oreder to do this we will need to have written authorisation from you: The Telephone Dealing form can be found at the back of this brochure or online.
The EFA Allenbridge Strategic Alpha Fund Let us take the strain of monitoring and moving funds . . .
post or fax Write to us requesting the change you want to make or fax us the letter to on 020 7318 6344. Letters and faxes must contain: • The name and address of the account holder (s) • The account reference number • Details of the fund changes you wish to make • A daytime contact telephone number. • Do not make cheques payable to Allenbridge Allenbridge Group plc 17 Hill Street Mayfair London W1J 5NZ
Invest in the Allenbridge Strategic Alpha Fund . . . The fund is eligible for ISAs and SIPPs and may also be bought outside of these tax-wrappers as an investment fund. It is available through Cofunds and FundsNetwork for direct investment, transfers or switching from existing holdings. If you have any queries or would like to discuss the Strategic Alpha in more detail – call Jason Day, 0800 33 99 99.
Great news on SIPPs The 6th April 2006 (known as ‘A’ Day) radically simplified the pensions system throughout the UK. Today, you have almost unlimited investment opportunities, especially with personal pensions like SIPPs. If you are employed or self-employed, you can put up to 100% of your earnings in any single tax year after deducting any other pension contributions you have made in the same year. If you are retired or not earning money, you are allowed to invest up to £3,600 a year.
Should you take charge of your retirement? If you like the idea of flexibility and freedom, a self-directed pension scheme - like SIPPs - could be right for you. SIPPs (Self-Invested Personal Pension) have become increasingly popular in recent years, with over £30 billion currently invested. Every UK resident under 75 can contribute to a SIPP. You can even open one for a child without affecting your personal tax status. SIPPs offer: a wide, innovative choice of investments high performance potential big tax benefits (an investment of £10,000 could cost you as little as £6,000) Yet market research indicates many UK customers are still unaware of this savings opportunity, despite the fact that it generally allows a much faster accumulation of pension funds than through traditional channels. Perhaps it's time you took a look? SIPPs have been around for a while. In fact, they were first introduced by the UK government in 1989, essentially to encourage people to save more for retirement. Initially, the high-income end of the market was most interested mainly for tax reasons - but that has now changed. Today, SIPPs appeal to all income levels and have definitely gone mainstream. Why? Because SIPPs offer you the opportunity to invest in a very broad range of assets and some 1,000 funds (compared to 40 or so for other pension plans).
SIPPs TAX ADVANTAGES SIPPs provide a broad tax umbrella... No capital gains tax on investments No income tax on investments Tax relief of up to 40% on personal contributions Tax relief to employers on employer contributions Pension Funds are free from Eligible investments include: inheritance tax
Call ??????? today for more information or visit allenbridge.co.uk/sipps
TAKE ADVANTAGE OF A SIPP
Call 0800 339999 today or visit allenbridge.co.uk/sipps for more information Our SIPPs partners are:
Cofunds
SIPPs also enable you to sit in the driver's seat to a large degree (that's the "do-it-yourself” part), although you can also use a broker or manager.
Fidelity FundsNetwork
Telephone Dealing Service Please complete those parts of this form relevant to you. Sign your name on the left side of the form, then return the whole page to: Allenbridge Group plc, FREEPOST, 17 Hill Street, London W1J 5BR.
FORENAME(s)
MOBILE NUMBER
AN SURNAME
HOME NUMBER
Other ALLENBRIDGE ACCOUNT NUMBER
BUSINESS NUMBER
1234 EMAIL ADDRESS
ANOther@Allenbridge.com
Summary of Service We accept telephone instruction for the following types of transaction: 1) Purchases of funds within either Cofunds or FundsNetwork. 2) Changes of funds within Cofunds or FundsNetwork. 3) Purchases of funds outside of ISAs with most Fund Managers. We cannot guarantee that all Fund Managers are willing to accept telephone instructions. We shall not accept telephone instructions for the following: 1) The sale of funds where the proceeds are to be released to the client. 2) The movement of funds from one Account Manager to another. 3) The purchase of funds within ISAs with companies other than Cofunds and FundsNetwork. Telephone deals may be placed between 9AM and 5:45PM. All telephone instructions are recorded for security and training purposes. We shall endeavour to place deals in time to receive the next 12PM noon Dealing price as long as we receive your instruction before the dealing cut-off point which is 11.00AM. However we do not guarantee this and we reserve the right to delay taking any action on any particular instructions from you if we are prevented from doing so due to factors beyond the control of Allenbridge for which we cannot accept responsibility. In order to provide a valid security check on any instruction you will need to ensure that the details we have for you are correct. We will be unable to deal if the details we have do not match those provided.
I hereby acknowledge that I have read and understood the Allenbridge Telephone Dealing Service Terms and Conditions available from the Downloads section on www.Allenbridge.co.uk. Any instructions given by me for my account are my responsibility and shall be binding. I understand that telephone calls maybe recorded for security as well as training and monitoring purposes. CLIENT'S SIGNATURE
DATE
CUT ALONG DOTTED LINE
Once we have accepted instructions to buy or switch funds on your behalf that instruction is irrevocable. You may not subsequently change or revoke your instructions.
Errors and Omissions Mr A N Other Flat 1 Mayfair House Castle Rose Bromley Surrey W1J 5NZ
Account: 1234 Valuation: Winter 2009
Please complete those parts of this form relevant to you. Sign your name at the bottom of the form, then return the whole page to: Allenbridge Group plc, FREEPOST, 17 Hill Street, London W1J 5BR.
How often would you like to receive your valuation? Never
Half yearly
Yearly
How would you like to receive your valuation? Post
This is not a switch form. Please provide a separate letter for switches and sales for each fund manager. Please sign below to authorise changes. Note that we are unable to make changes without your signature. SIGNATURE
Quarterly
DATE
Would you like to receive your monthly rankings tables by email? Yes
No
What is your email address?
Changes to your fund holding Please use this section to indicate any changes to your holdings. Please also list any errors resulting from transfers or sales made after November 2009 (fund managers may not yet have advised us of transactions). N.B. If you have any funds not held under our care that you wish to add, complete a Request for Change of Agency form. FUND MANAGER AND FUND NAME
ACC/INC CHANGES TO BE MADE
INC / ACC: Put INC if you have dividend income paid to you, or ACC if you do not and it is accumulated in the fund.
Change of address Please complete the following section if your address details differ from those shown at the top of the page. HOME TELEPHONE
NEW ADDRESS
OFFICE TELEPHONE
MOBILE
POSTCODE
CUT ALONG DOTTED LINE
FAX DATE EFFECTIVE FROM EMAIL ADDRESS
Please make sure that you have signed this form in the box at the top left of this form. Thank you.
Request for Change of Agency
If you need help completing this form, or would like more copies, call Freephone 0800 3399 99 and ask for the Valuations Department. Joint holders please note: Each joint holder needs to fill in a separate form and sign it.
To have AllenbridgeCare services for funds not bought through us, you need to appoint us as your agent. This form authorises us to receive regular information about your funds from your fund managers. 1 Complete a separate section of this form for each fund manager with whom you have funds. 2 Each statement must be signed by the registered fund holder. 3 Return the whole page to: Allenbridge Group plc, FREEPOST, 17 Hill Street, London W1J 5BR.
MY ALLENBRIDGE ACCOUNT NUMBER For existing clients only
TO Name of Plan Manager, eg Invesco, Gartmore, Newton etc
Account: 1234 Mr A N Other
1234 TITLE
FORENAME / INITIALS
Mr
A
SURNAME
PLAN MANAGER’S ACCOUNT NUMBER Found on your plan manager’s statement
FUND NAMES
NUMBER OF UNITS ACC / INC
Other ADDRESS Including postcode
HOME TELEPHONE
ACCUMULATION OR INCOME Put I if you have dividend income paid to you, or A if you do not and it is accumulated in the fund
MOBILE TELEPHONE
Please amend your records immediately to reflect that Allenbridge Group plc is now my agent for the funds listed above. I wish you to pay all future renewal commissions to Allenbridge Group plc rather than my previous financial advisors at no extra cost to me.
SIGNATURE
DATE
ANOther@allenbridge.com
MY ALLENBRIDGE ACCOUNT NUMBER For existing clients only
TO Name of Plan Manager, eg Invesco, Gartmore, Newton etc
TITLE
PLAN MANAGER’S ACCOUNT NUMBER Found on your plan manager’s statement
FORENAME / INITIALS
SURNAME
FUND NAMES
NUMBER OF UNITS ACC / INC
HOME TELEPHONE
ACCUMULATION OR INCOME Put I if you have dividend income paid to you, or A if you do not and it is accumulated in the fund
MOBILE TELEPHONE
Please amend your records immediately to reflect that Allenbridge Group plc is now my agent for the funds listed above. I wish you to pay all future renewal commissions to Allenbridge Group plc rather than my previous financial advisors at no extra cost to me.
SIGNATURE
DATE
CUT ALONG DOTTED LINE
ADDRESS Including postcode
The EFA Allenbridge Strategic Alpha Fund Let Allenbridge take the strain of monitoring & moving funds...
better performance through better research
Factsheet December 2009 Asset Allocation
Investment Philosophy
The Fund’s asset allocation will broadly follow the illustrated pie chart, with a margin of around plus or minus 10% to each sector.
The Strategic Alpha Fund reflects the Allenbridge team's best fund ideas for capital growth. The core of the portfolio will be invested in UK equity funds and further complemented with overseas equity managers. In addition, the Fund may also invest a proportion in specialist vehicles to provide an additional source of 'alpha' (the superior return of the Fund relative to its benchmark index), and this may include alternative asset classes. The Fund’s benchmark is the IMA Active Managed Sector.
Market Commentary
20% 40%
8%
8% 8%
8%
8%
UK Equity
Emerging Markets Equity
US Equity
Specialist Equity Managers
Asian Equity
Alternative Investments
European Ex UK Equity
Top Five Holdings Investec Enhanced Natural Resources First State Asia Pacific Leaders BlackRock UK Absolute Alpha Neptune Global Equity Ignis Hexam Global Emerging Markets
After a choppy October, which dragged global equity markets into negative territory for the month, the G20 meeting in early November provided much needed reassurance that central banks would continue to be accommodative. The existing emergency measures will remain in place and quantitative easing will continue until there are firmer signs of economic recovery. Equity markets reacted positively and by mid-month, the FTSE rose further as the Bank of England increased growth forecasts for the next three years. Bid activity spurred on the index, as BA announced that it was to merge with Iberia. The FTSE accelerated to 5,382, its highest level since Lehman Brothers filed for bankruptcy in September 2008. However, by month end, the FTSE had retreated below 5,200 as Dubai World reneged on interest payments for its $26 billion of debt. The ramifications from this decision taken in the Gulf state ensured that volatility surged through the markets. UK and European banking stocks fell heavily on fears of further contagion in the credit sector. Emerging market bourses, a lead risk indicator, spiked down sharply. Within days, by the month-end, US equities appeared to have shrugged off the Dubai affair as an isolated and containable incident underpinning confidence from the world’s largest stockmarket. Emerging markets have rebounded strongly and the FTSE has tentatively started to breakout again towards the 5,300 mark, which augurs well for the year-end. Your Fund returned 1.80% in November and outperformed the Active Managed Sector return of 1.42%. During the month we increased our weighting to Legal & General Dynamic Bond and brought up our position sizes in Neptune European Max Alpha and Ignis Argonaut European Absolute Return. Given the monthend volatility, we maintained cash at 3% for short-term protection, having made some allocations, on the back of the severe market weakness, into Neptune Global Equity, AXA Framlington UK Select Opportunities and Standard Life UK Recovery. With the world’s reserve currency, the US Dollar, continuing to weaken, the price of Gold continued its ascent as an alternative store of value. Commodity strengthening benefited our holding in Investec Enhanced Natural Resources, which can invest in both gold mining companies and physical gold via an Exchange Traded Commodity instrument.
Allenbridge Strategic Alpha Performance 105.00
Initial Charge: Nil
100.00
(5% less 5% discount for Allenbridge clients)
95.00
Allenbridge Strategic Alpha
Annual Management Charge 1.5% PRICE
Min. Monthly Savings £100
90.00 85.00
Min. Lump Sum £1,000 Sedol: B3B4CW7 Accumulation: GBP NAV: 101.21p
80.00 75.00
Benchmark 70.00 Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Nov-09
DATE
(Information correct at 30.11.09)
www.allenbridge.co.uk Allenbridge Group Plc 17 Hill Street, Mayfair, London, W1J 5NZ T: 0800 339999 F: +44 (0)20 7629 7026 Registered No. 1919345
Chart calculated on a bid to bid basis (net income reinvested). Past performance is not necessarily a guide to future performance. Strategic Alpha inception date: 14.07.08 The information in this factsheet is for guidance only and financial advice should be sought before making decisions on financial products. Whilst we believe the facts to be correct, we cannot assume liability for any errors or omissions. The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested. Levels and bases and reliefs from taxation are subject to change. The Authorised Corporate Director (ACD) of the EFA Allenbridge Strategic Alpha Fund is Elite Fund Administration. Elite Fund Administration (EFA) is a trading name of WAY Fund Managers Limited. WAY Fund Managers Limited, Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB Registered No. 4011838 England and Wales. Authorised and regulated by the Financial Services Authority. A member of the IMA (Investment Management Association). The investment adviser to the Fund is Capital Advisory Partners Limited, which is authorised and regulated by the Financial Services Authority.
08091
Mr A N Other Flat 1 Mayfair House Castle Rose Bromley Surrey W1J 5NZ
[68332]
Allenbridge uses the latest in reporting and printing technology to reduce our carbon footprint.
Allenbridge Group plc 17 Hill Street Mayfair London W1J 5NZ Telephone 020 7409 1111 Authorised and regulated by the Financial Services Authority Registered Office: Devonshire House 60 Goswell Road London EC1N 7AD Registered in England No: 1919345