WRAPSTM Por+olios: Risk & Return
Wealth Matters Ltd, 727 Capability Green, Luton, Bedfordshire, LU1 3LU Tel: 01582 720511 Fax: 01582 730179 www.wealth-matters.co.uk Wealth Matters is directly regulated with the Financial Conduct Authority ref: 300635 Email: info@wealth-matters.co.uk | Website: www.wealth-matters.co.uk | Tel: 01582 720511
Future Expected Returns • When investing it is important to set the right expectations regarding risk and return. • The higher the risk, the higher the potential for return. Consequently, the more risk taken, the more the portfolio experiences volatility (measured by Standard Deviation) and the greater the potential of capital loss. • WRAPSTM consists of 15 funds, which are 100% institutional funds rather than retail funds; this keeps costs low. • Dimensional Fund Advisors (DFA) and Vanguard – both American investment institutions, make up the core part of our portfolios. • The actual performance of some of the DFA and Vanguard funds only goes back 2-4 years, since these institutions are rather new to the UK, but the benchmarks or indices most closely matched to these funds have a much longer history. • To this end, Wealth Matters have selected the most appropriate and relevant benchmark that each of our 15 funds represent, track or reflect. We have then back-tested the indices and our asset allocation models 20 years to give an indication of what returns have been achieved, and what level of volatility has been endured. • The phrase “past performance is not a guide to future performance” typically refers to individual funds. But the idea of back testing the indices is purposely to give a realistic level of future expected return and volatility. • Historical long-term trends of different asset classes gives us a better idea of future growth potential.
Email: info@wealth-matters.co.uk | Website: www.wealth-matters.co.uk | Tel: 01582 720511
Growth of Wealth: WRAPSTM portfolios 1992-2012 Monthly: 12/1992 - 11/2012; Default Currency: GBP N.B. Performance data represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Graph represents a hypothetical investment of ÂŁ1 over the time period shown. Performance includes reinvestment of dividends and capital gains.
Email: info@wealth-matters.co.uk | Website: www.wealth-matters.co.uk | Tel: 01582 720511
Performance of our WRAPSTM Portfolios Annual: 12/1992 - 11/2012; Default Currency: GBP
Summary: Over a 20 year period to Nov 2012, one can see that the more risk taken, the more the annualized and cumulative return has been; but one can also note that the level of volatility (measured by standard deviation) is greater, as more risk is taken. Growth of Wealth above shows what ÂŁ1 would have become. N.B. Performance data represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. The figures above represent a hypothetical investment of ÂŁ1 over the time period shown. Performance includes reinvestment of dividends and capital gains.
Email: info@wealth-matters.co.uk | Website: www.wealth-matters.co.uk | Tel: 01582 720511
The Randomness of Returns
Email: info@wealth-matters.co.uk | Website: www.wealth-matters.co.uk | Tel: 01582 720511
Thank you for taking the time to read this document. If you are interested to know more about the Wealth Matters WRAPSTM investment strategy, please feel free to contact us:
Wealth Matters Ltd, 727 Capability Green, Luton, Bedfordshire, LU1 3LU Tel: 01582 720511 Fax: 01582 730179 www.wealth-matters.co.uk Wealth Matters is directly regulated with the Financial Conduct Authority ref: 300635
Email: info@wealth-matters.co.uk | Website: www.wealth-matters.co.uk | Tel: 01582 720511