Transcript Document

For professional use only
Bespoke Wealth Management
Working With Financial Advisers
iFunds is a trade name of Raymond James Investment Services Limited (RJIS) utilised under exclusive licence.
RJIS is the European investment management arm of Raymond James Financial, Inc.
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Agenda
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About iFunds and Raymond James
Investment Solutions
Investment Philosophy
Investment Process & Asset Allocation
ETFs
Summary
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iFunds and Raymond James
• iFunds founded 2002
• Over 40 years combined experience
• Trading name of Raymond James Investment
Services
• Global assets exceed £50bn
• Relationship provides:
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Platform for active investment management
Direct stock market access
Safe custody – all assets held by Pershing Securities
Financial stability
Economies of scale
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Investment Solutions
Discretionary Management
Or £100k total of a
combination of :
Large Portfolios: >£100k
ISA/PEP Portfolios: >£100k
SIPPS: >£100k
Onshore Bonds: >£100k
Offshore Bonds: >£100k
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Investment Philosopy
Focussed on:
• Absolute return
• Managing risk
• Minimising costs
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Investment Process & Asset Allocation
Top Down – Global Macro View
Weighting – Over/Under At Asset Class Level
Dependent on Client’s Risk Profile
Equities Equities Fixed
Property Commodities Specialist Cash
Growth Income Interest
Weighting – Over/Under At Component Level
Quantative Overlay – iFunds Software
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Asset Allocation – Global Equities
Growth
Via iFunds ETF Global Growth OEIC
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iFunds’ quant process targets ETFs based on likely returns
Geographical location not a selection factor
Market capitalisation/size not a selection factor
Volatility is a selection factor
Unitisation allows rapid re-weighting across client base
Cash< 20%
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iFunds ETF Global Growth Fund
Performance: Launch to 30 August 07 (vs. MSCI World)
Pence
Marlborough MFM iFds ETF Gbl Gth C
Unit Trust
118
118
116
116
114
114
112
112
110
110
108
108
106
106
104
104
102
102
100
100
98
98
31/7/06
Sep
Oct
www.sharescope.co.uk
Source: Sharescope,
Nov
Dec
'07
Feb
Mar
Apr
May
Jun
Jul
30/8/07
Chart (c) Share Scope
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Asset Allocation – Global Equities
Income
Via ETFs Direct
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Uses dividend weighted index based ETFs
Global
Always Invested
Dividends central to absolute return policy
Overweighting achieved via iFunds OEIC
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Core ETF Example: iShares UK Dividend Plus
Pounds
iShares FTSE UK Div Plus & Artemis Income
ETF
14.0
14.0
13.5
13.5
13.0
13.0
IUKD
12.5
12.0
11.5
11.0
10.5
12.5
12.0
11.5
11.0
10.5
10.0
10.0
Volume (Daily) - th's
400
400
7/11/05
'06
Apr
www.sharescope.co.uk
Jul
Oct
'07
Apr
Jul
31/8/07
Chart (c) Share Scope
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Core ETF Example: DJ Eurostoxx Select Dividend 30
DJ Euro Stoxx Select Dividend 30 Total R & FTSE 100
ETF
3000
2908.7
Graph Legend
2500
2500
Main
FTSE 100
Inv esco Perp Income Acc
2000
2000
Description + Chart
1500
1500
1000
1000
500
500
30/6/99 '00
Jul
'01
Jul
www.sharescope.co.uk
'02
Jul
'03
Jul
'04
Jul
'05
Jul
'06
12/1/07
Chart (c) Share Scope
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Asset Allocation – Fixed Interest
Via ETFs
• Government
• Index linked
• AAA-A rated corporate bonds
Via Institutional Class OEICS
• BBB rated corporate bonds
iFunds’ quant analysis identifies areas of strongest
likely returns
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Asset Allocation – Property
Via ETFs
• Global REITS
Via institutional class OEICS
• Physical
• Overweighting achieved via iFunds OEIC
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REIT Example: iShares DJ Asia property
Pounds
iShares FTSE EPRA/NAREIT Asia Property Yield Fund
ETF
16.0
16.0
IASP
15.5
15.0
14.5
14.0
13.5
15.5
15.0
14.5
14.0
13.5
Volume (Daily) - th's
200
200
23/10/06
Dec
'07
www.sharescope.co.uk
Feb
Mar
Apr
May
Jun
Jul
Aug 31/8/07
Chart (c) Share Scope
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Physical Property Example: SWIP Property
Pence
SWIP Property Acc
Unit Trust
140
140
135
135
130
130
125
125
120
120
115
115
110
110
105
105
100
100
25/11/04
Apr
Jul
www.sharescope.co.uk
Oct
'06
Apr
Jul
Oct
'07
Apr
30/8/07
Chart (c) Share Scope
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Asset Allocation – Commodities
Via iFunds ETF Commodity Fund
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Physical commodity based ETFs forms core
Share based funds can, and do, feature
iFunds quant process targets strongest likely returns
Cash generally < 20%
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iFunds ETF Commodity Fund
Performance: Launch to 30 August 07
Pence
Marlborough MFM iFds ETF Commodty B & CRB Index TR Sterling Conv.
100
100
96
96
92
92
88
88
84
84
80
80
31/7/06
Sep
Oct
www.sharescope.co.uk
Nov
Dec
'07
Feb
Mar
Apr
May
Jun
Jul
30/8/07
Chart (c) Share Scope
Source: Sharescope,
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Asset Allocation - Specialist
Vehicles with atypical behaviour e.g.:
• iFunds ETF Total Return Fund
• Covered call funds
• Zero dividend preference share funds
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iFunds ETF Total Return Fund
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Targets corporate bond type risk/reward profile
Seeks non-correlation with either bonds or equities
Provides ‘risk sink’ for majority of portfolios
Uses industrial sector based ETFs, specialist & fixed
interest funds
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iFunds ETF Total Return Fund
Performance: Launch to 30 August 07 (B shares)
Pence
Marlborough MFM iFds ETF Tot Rtn B & LIBOR PLUS 2%
Unit Trust
116
116
114
114
112
112
110
110
108
108
106
106
104
104
102
102
100
100
7/7/05
Oct
'06
www.sharescope.co.uk
Apr
Jul
Oct
'07
Apr
30/8/07
Chart (c) Share Scope
Source: Sharescope,
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iFunds ETF Total Return Fund
Risk Profile launch to 04 Jul 07 (A shares):
Annualised Standard Deviation: 4.1%
FTSE Annualised Standard Deviation: 11.57%
Fund Beta: 0.12
Fund Correlation: 0.33
Source: iFunds/FTSE
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End Result
Example: Balanced Portfolio
Asset Class
Core Fund
Type
Property
European Poperty
Portfolio
Allocation
Value
Est
Gross
Yield
Est Gross
Incom e
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Ishares Ftse/epra Euro Property Ind
ETF
4
£4,000
4
£160
UK Commercial Property Sw ip Fd Mgmt Sw ip Property Trust Inc
UT
4
£4,000
4
£160
Asian Property
ETF
5
£5,000
4.16
£208
iShares FTSE EPRA/NAREIT Asia Property Yield Fund
Fixed Interest
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Absolute Return
Ubs Gbl Asset Mgt Absolute Return Bd B Gros A
UT
4
£4,000
5
£200
High Yield Corp Bond
Standard Life Higher Income
UT
8
£8,000
6
£480
High Yield Corp Bond
L & G High Income
UT
8
£8,000
6.7
£536
Income
Ishares Ftse Uk Dividend Plus
ETF
8
£8,000
4.5
£360
European Income
Indexchange Invest Dj Euro Stoxx Sel Div 30 Ex
ETF
8
£8,000
4
£320
Asia Income
iShares DJ Asia/Pacific Select Dividend
ETF
6
£6,000
3.5
£330
£20,000
1
£200
£10,000
0
£0
£12,000
2
£240
3
£3,000
4.5
£135
100
£100,000
3.33
£3,329
Equities Incom e
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Equities Grow th
Global Grow th
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Marlborough Fd Mgr Ifunds Etf Gbl Grow th C Acc
UT
Com m odity
Commodity
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Marlborough Fd Mgr Ifunds Etf Commodity C Acc
UT
Specialist
Total Return
Totals
10
12
Marlborough Fd Mgr Ifds Etf Total Ret Fd C Acc
UT
Cash
Cash
20
12
3
Goldman Sachs Am Stlg Liq Res Pref Acc Nav
UT
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Exchange Traded Funds - Features
Trackers Targetting:
•Major Indices (e.g.FTSE)
•Equity Income Indices (e.g. UK div)
•Minor Indices (e.g. Eurostoxx)
•Major Commodity Indices (e.g. CRB)
•Industrial Sector Indices (e.g. Banks) •Minor Commodity Indices (e.g. Energy)
•Country Indices (e.g. Brazil)
•Single Commodities (e.g. Gold)
•Capitalisation Indices (e.g. Mid 250)
•Geared Indices (e.g. 2x Dax)
•Style Indices (e.g.Value)
•Short Indices (e.g. Mirror S&P)
•Fixed Interest Indices (e.g. Gilts<5 yr)
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ETF Features (contd.)
Low Costs:
•TERs
•Transactional
•Bid/Offer spreads
•No stamp duty
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ETF Features (contd.)
Suit Active Management:
•Real time pricing
•Deal at known price
•Highly liquid
•Rapid settlement
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Summary
iFunds Approach Aims To:
•Reduce risk through asset diversification
•Reduce risk through quantative overlay
•Use low cost vehicles for active management
•To deliver an absolute return commensurate with
customer’s risk profile
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This material is a communication to professional Advisers only and should not be disclosed by such
Advisers to their customers or other non-professional individuals without first contacting iFunds for
permission to communicate this material as a Financial Promotion. It has not been approved by Raymond
James Investment Services Ltd (RJIS) for this purpose. iFunds is a trade name of RJIS utilised under
exclusive licence. RJIS is a member of the London Stock Exchange and is authorised and regulated by the
Financial Services Authority.
The information and opinions contained herein are based upon sources believed by iFunds to be reliable,
but which may not have been independently verified, and no guarantees, representations or warranties are
made as to its accuracy, completeness or suitability for any purpose. Any opinion or estimate expressed in
this publication is our current opinion as of the date of this publication and is subject to change without
notice. The value of investments and any income from them may go down as well as up and capital values
will therefore fluctuate. Changes in rates of exchange may have an adverse effect on the value, price or
income of investments denominated in currencies other than Sterling. Past performance and the level and
basis of taxation may change which could, in turn, affect investment advice. iFunds, its employees, or a
connected company may trade in the securities referred to herein. This material is not intended as an offer
or solicitation for the purchase or sale of any security or any other action, without first seeking advice as to
the suitability of it for your needs. The employees and Directors of RJIS, or the Directors of iFunds Ltd. may
have positions in any securities referred to herein.
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