RISK GRADED PORTFOLIO
December 2014
RISK GRADED PORTFOLIO – INCOME PORTFOLIO
ILLUSTRATIVE HOLDINGS (as at December
2014)
UK Equities
Artemis Income
Fidelity Enhanced Income
Henderson UK Equity Income
and Growth
Schroder Income Maximiser
Schroder UK Alpha Income
Global Equities
BNY Mellon Global Higher
Income
Lazard Global Equity Income
Artemis Global Income
UK Corporates
Schroder Strategic Credit
Fidelity Strategic Bond
JPM Sterling Corporate Bond
Jupiter Strategic Bond
Kames High Yield Bond
M&G Short Dated Corporate
Bond
PFS TwentyFour Dynamic
Bond
Gilts
Legal & General All Stocks Gilt
Index
Allianz Pimco Gilt Yield
Other Bonds
Templeton Global Total Return
Bond
Property
Aviva Property Trust
M&G Property
Est
Yield %
Weight
%
3.67
6.44
4.00
4.00
3.10
3.00
6.93
4.11
4.00
4.00
3.81
7.00
3.80
3.57
7.00
7.00
4.62
2.98
2.72
4.50
4.34
6.00
7.50
7.00
6.50
3.00
2.20
1.00
5.16
3.00
2.20
4.00
2.02
4.00
3.48
3.00
2.50
4.00
3.77
7.50
7.50
100.00
SANLAM INVESTMENT COMMENTARY (as at
December 2014)
We made a number of adjustments to the fund
allocations in the income space this quarter.
An amount of this was based on adjustments to
Skandia’s optimised Asset Allocations. This led us
to reduce exposure to equities and bonds and
offset those with an increased exposure to
property.
So we marginally reduced holdings in all UK equity
funds, and tweaked the global funds in favour of
Artemis Global Income, it having been a slightly
smaller position till now.
In the bond space, we exited Invesco Perpetual
Corporate Bond and M&G Strategic Corporate
Bond. We sold the former due to concerns about
its exposure to bank debts. These had done well
for the fund in recent years, but some questionable
‘innovative’ products leave us a little concerned
that any blow ups, no matter how small as a
potential interest rates rise later this year, may
cause ripple effects throughout the sector.
We sold the M&G fund due to similar concerns
about liquidity in the bond markets. This is by far
the largest bond fund in the UK sector, and we feel
may find it difficult to lighten positions sufficiently in
a sell-off.
In the property sector we added to holdings in
Aviva Property Trust and brought in an M&G
Property fund. These are two of the largest in the
sector. Though rising rates are a concern here too,
rates should only rise as the economy recovers,
and that would be a tail wind for further property
price appreciation.
RISK GRADED PORTFOLIO
December 2014
PERFORMANCE AS AT 30/11/2014
Income Portfolio
Market Indices
FTSE AllSh TR GBP
FTSE All Stocks Gilt Index
MSCI World GR USD
Inception 01/03/2010
(Annualised)
7.67%
3 months
6 months
2012
2013
1.45%
2.86%
9.88%
10.10%
-0.62%
3.81%
5.92%
-0.08%
7.77%
9.51%
12.30%
2.70%
10.74%
20.81%
-3.94%
24.32%
9.62%
6.73%
11.15%
IMPORTANT INFORMATION
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The value of investments and the income from
them may vary and are not guaranteed. Investors
may not get back the original amount invested.
Past performance is not a reliable indicator of
future results.
The value of fixed income securities is affected by
the risk of default by the issuer and where an
issuer does default you may lose some or all of
your capital. Investments in higher yielding bonds
issued by borrowers with lower credit ratings may
result in a greater risk of default and have a
negative impact on income and capital value.
Some portfolios may include investment funds
(including property funds and hedge funds) that
use gearing as part of their investment strategy.
Such funds may be subject to sudden and large
falls in value, and you may get back nothing on
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this part of your portfolio if the fall in value is
sufficiently large.
The value of investments in overseas securities
may rise and fall in sterling terms purely as a result
of exchange rate fluctuations.
Investments in emerging markets are likely to be
more volatile and carry more risks than
investments in developed markets.
Hedge funds can employ a variety of investment
strategies and hence the risks can also vary. In
certain circumstances it may be difficult to
liquidate such investments quickly. Some hedge
funds are not regulated by the FCA.
Investment in property funds may not be readily
realisable because the underlying property
concerned may not be readily saleable. The value
of property is a matter of the valuer’s opinion
rather than fact.
CONTACT US
Greenfields House
10 Meridian Way
Meridian Business Park
Norwich
Norfolk
NR7 0TA
enquiries@almarygreen.com
Tel: 01603 706740
Fax: 01603 437136
www.almarygreen.com/personal/managed-portfolio-services/risk-graded-portfolios
Almary Green Investments Limited is registered in England and Wales, company registration number 4205433.
Authorised & regulated by the Financial Conduct Authority. Registration Number 212015