MitonOptimal Group Portfolio Management Presentation September 2017 - - PowerPoint PPT Presentation

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

MitonOptimal Group Portfolio Management Presentation September 2017

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Welcome

Presenters

Greg Easton MitonOptimal Portfolio Management

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Presentation Outline

• Introduction to the MitonOptimal Group
• What We Do & How We Do It
• Investment Management Style and Process
• Market Update
• Current Positioning & Investment Ideas

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Who We Are – Key Team Members

Scott Campbell B Comm Founder, Group MD & CIO Joanne Baynham CA, CFA Director & Head of Investment Strategy Shaun McDade MD of MitonOptimal Portfolio Management (CI) Ltd (Guernsey) & Head of Portfolio Management (International) Greg Easton IMC Director (IOM) & International Business Development Simon Sharrott ACSI, BA Hons Director & Portfolio Manager (Guernsey) James Sullivan Director & Fund Manager (UK) Alan Blythe MD (IOM) and Portfolio Manager Phil Penrose International Sales Director (UK & Asia)

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

What We Do

• Discretionary Fund Management:

Fully Tailored Portfolios

• Model Portfolio Services:

Risk-rated, Multi-currency & Low Cost

• Unitised Solutions:

Guernsey & Dublin Fund Ranges

• Insourced Solutions:

Regulatory Driven

• Portfolio Reviews:

Qualitative & Quantitative Analysis

• Succession Planning:

Using a Partnership Approach We are platform agnostic – Access us how you want to!

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Channel Islands

(International Team)

• DFM & Advisory Services
• Fund Management

South Africa

• Advisory Services
• Fund Management
• Asset Consulting

Isle of Man

(International Team)

• DFM & Advisory Services

Singapore

(International Team)

• Client Relationship

Management for Group International Services

6

United Kingdom

(International Team)

• DFM & Advisory Services
• Fund Management

Latam

(Growth Market)

• Key Partners in Brazil

Caribbean

(Growth Market)

• Barbados, Cayman &

Bermuda - existing partners

Where We Are

European Region

(Growth Market)

• Monaco, Switzerland, Malta

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

2002 2004

2003 2005

2007

2006

2008

2010

2009

2011

2012

2013

2015 2014

2016

2017

MitonOptimal Single Asset Managers

SA Single Strategy Funds

MitonOptimal Guernsey

Off-Shore Multi-Asset Funds

MitonOptimal Consulting

Implemented consulting, Employee Benefits & Umbrella Fund solution

MitonOptimal South Africa

SA Multi-Asset Funds

MitonOptimal SA Portfolio Management

SA Bespoke Portfolio Services

Advisory Services

SA Based Advisory Services

Coram Asset Management

UK Based Fund Manager

MitonOptimal Portfolio Management (IoM) Ltd

IoM Based IFA

MitonOptimal Portfolio Management Guernsey

Offshore Bespoke Portfolio Services

Further business development activity?

7

Update – We’re Growing!

• Approx. $850,000 AUM and growing
• Further Acquisitions in 2017

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

MitonOptimal Group - Introduction

• Independent and Owner-managed:

Focused on Partnerships

• International Portfolio Manager:

DFM, Model Portfolios & Funds

• Founded in 2002 by Management:

Active & Growing

• Five Offices on 3 Continents:

Global & Accessible

• Experienced & Professional:

60+ Staff

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Our Key Strengths

• High duty of care
• Owner managed and independent
• Self-invested
• Transparency of business structure, processes and fees
• Client centric in understanding an investor’s risk profile, investment objectives and their service needs
• Service
• Direct access to decision makers
• Regular face-to-face meetings
• Detailed reporting
• Continuity of personnel
• Pride in our company and our service quality
• Performance
• Risk aware at market and investor level
• Innovation through research and investment product/services development
• Proven track record over a long period of time
• Adaptability to market events and trends
• Strong reputation internationally

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Portfolio Guidelines & Objectives

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Dynamic Strategic Asset Allocation (reviewed annually) Macro- Economic Research Across The Asset Classes Risk Assessment and Tactical Asset Allocation (weekly)

Geographical and Sector Themes

Implement

Advisory Services Fund Management

Group Investment Process

11

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Investment Management Team

Fund Selection

Dual approach to fund selection

Quantitative screening Qualitative criteria Track record (Cumulative & Discrete periods) Custody & valuation Risk adjusted returns Disciplined approach Style & consistency Manager background & team stability Repeatability Specialisation & focus Fund Size/Brand/LISP availability

Recommended Buy List

• Universe:
• Regulated and quoted

Funds, ETFs & ETNs

• Quantitative Analysis:
• FE Analytics
• Bloomberg
• eVest
• Qualitative Analysis:
• Third party ratings
• Manager meetings
• Desktop due diligence to

establish Watch List

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Fund Selection Decision Drivers

DANGERS AUTOMATIC REJECTION EXIT TRIGGERS

Falling in love Multiple roles performed Manager departure Unrealistic assumptions Lack of transparency Corporate distress Familiarity Unrealistic undertakings Corporate governance issues Complacency Questionable pricing policy Deteriorating liquidity profile Denial High fees Diminishing AUM Excessive trails offered Performance Fails 3rd party checks

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Market Updates

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Black Swans?

• Expecting the unexpected
• 2017 has been a year of

surprises

• VIX at 10.22 (Close 15th Sept)
• Still suppressed
• Importance of Active

Management and Diversification (Globally and by Asset Class)

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

VIX Vs S&P 500

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

US Debt Ceiling

• March 15th $20Tn ceiling

crystalized

• Temporary extension to

December 15th

• X date – now Q2/3 2018
• Possible Downgrade?

United States national debt is

• approx. 20% of the entire world's

combined economy GDP Kicking the can down the road, again!

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Trump Effect

• Markets react to every tweet
• Making America Great Again
• r International Villain who is

Unfit for Office?

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Europe

• Impact of BREXIT
• Elections in Europe
• Nationalism Vs Globalism

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Tech – Valuations differ to 2000

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Tech dominates- but be cautious

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

Amazonian Disruption to Traditional Markets

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

T HE KONDRAT IE F F SE ASONS

BE ST INVE ST ME NT S

• Co mmo d itie s
• Go ld b o o ms
• Re a l E

sta te / Ho me s

• Bonds Be ar

mar ke t

• Inte re st ra te s so a r
• De b t b uild s
• Ca pita l g o o d s se c to r
• ve rb uild s
• Sto c ks ma ke no pro g re ss
• Infla tio n d ro ps
• Inte re st ra te s fa il
• Co mmo d itie s d ro p
• De b t rise s
• Sto c ks pe a k the n c ra sh
• E

mplo yme nt + c o nfid e nc e inc re a se s ste a d ily

• Infla tio n inc re a se s
• Sto c ks rise fro m lo w le ve ls
• Pric e s fa ll
• Co nsume r c o nfid e nc e

d ro ps

• Ba nking c rise s
• Hig h une mplo yme nt

BE ST INVE ST ME NT S

• Stoc ks
• Bonds E

nte r Be ar Mar ke t

BE ST INVE ST ME NT S

• Sto c ks b o o m
• Bo nd pric e s rise
• Re a l e sta te / c o mme rc ial

BE ST INVE ST ME NT S

• Ca sh
• Go ld b o o ms
• Bo nd pric e rise

1980 1949 2017

DJI 181 DJI 20,000 Gold $1,200

2000

DJI 10,750 Gold $250 DJI 838 Gold $850

2030

DJI 50,000 Gold $2,000

1966

DJI 968

SUMME R SPRING AUT UMN WINT E R

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

DM versus EM Equity Valuations

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

We remain cautious on bonds

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

The last reflationary recovery (1949-57) vs this one and (1990-2000)

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Performance matters!

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

GBP Performance Comparison – 1 Year

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

GBP Performance Comparison – 3 Year

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Long Term Performance (GBP Moderate Risk Bespoke)

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Volatility Management

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

USD Performance Comparison – 1 Year

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Long Term Performance (USD Moderate Risk Bespoke)

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Asset Allocation (Sample)

Equities 37.50% Alternative Stratergies 20.00% Fixed Interest 16.50% Equity Long/Short 11.00% Cash 6.00% Property 5.00% Commodities 4.00%

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Portfolio Themes

Bio-technology

• Polar Capital
• 34.79% 1Yr (as at 08.09.17)

Commodities

• JPM Natural Resources
• 20.70% 1Yr (as at 08.09.17)

Technology

• GAM Star Technology
• 28.56% 1Yr (as at 08.09.17)

Current Allocations Current Geographic Plays

India

• Ashburton India Opportunities
• 16.12% 1Yr (as at 08.09.17)

Asia

• Prusik Asian Equity
• 17.61% 1Yr (as at 08.09.17)

Latin America (Selling)

• Findlay Park
• 27.39% 1Yr (as at 08.09.17)

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

Portfolio Themes (2yr)

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

June 2017 Group MitonOptimal

MitonOptimal Portfolio Management – Reasons Why?

• Security and Stability;
• Global Diversification;
• Active Management;
• Volatility management as part of the asset allocation strategy;
• Specialist provider of portfolio management to private clients, trustees and pension schemes;

AND full access to our investment decision makers

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

In Summary

• We offer high quality investment services to a wide range of private clients
• We work diligently to provide strong returns relative to the client’s mandate and

investment objectives

• We offer well considered and researched fund manager selection based on strong

relationships within the fund management industry

• We actively manage asset allocation across our client portfolios, maintaining

diversification unless stipulated within the investment mandate.

• We work closely with our clients to correctly identify their needs and address them

within a precisely defined mandate that is appropriate to their objectives.

• We are open, honest, hardworking, approachable and most importantly, our personal

money is invested in these funds.

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

Advisory Services Fund Management

• brigado

Thank you!

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

REGULATORY BODIES

Guernsey Regulation

MitonOptimal-CI is regulated and licensed by the Guernsey Financial Services Commission (“GFSC”) to conduct investment business in accordance with The Protection of Investors (Bailiwick

• f Guernsey) Law 1987 (“POI Law”).

The GFSC maintains strict guidelines and audit procedures around the following:

• Corporate Governance
• Operational Risk
• Data Protection (Guernsey Law is aligned to UK DP Law)
• Annual Compliance Reporting
• Business Continuity Planning
• COB 4 regulatory standards applied to all UK marketing material
• ASA and CAP rules and regulations apply to Guernsey

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

REGULATORY BODIES

Isle of Man Regulation

MitonOptimal-IoM is regulated and licensed by the Isle of Man Financial Services Authority (“FSA”). The functions of the Authority are set out in the Financial Services Act 2008 and the Insurance Act 2008.

The FSA maintains strict guidelines and audit procedures around the following:

• Corporate Governance
• Operational Risk
• Annual Compliance Reporting
• Business Continuity Planning
• COB 4 regulatory standards applied to all UK marketing material
• ASA and CAP rules and regulations apply to Guernsey

June 2017 Group MitonOptimal

Guernsey | South Africa | United Kingdom | Isle of Man | Singapore

The information contained in this document has been issued by MitonOptimal Portfolio Management (CI) Limited (Company Registration No. 36763), which is licensed and regulated by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 as amended. The content of this document is for information purposes only and does not constitute an offer or invitation to any person. The opinions contained in this document are subject to change and are not to be interpreted as investment advice. You should consult an adviser who will be able to provide appropriate advice that is based on your specific needs and circumstances. MitonOptimal Portfolio Management (CI) Limited’s prior written consent must be obtained before the contents of this document are communicated to any third party. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable and given in good faith but no representation is made as to their accuracy, completeness or correctness. MitonOptimal Portfolio Management (CI) Limited, its directors, officers, employees and their associates may have an interest in the products, services or service providers referred to herein. The value of investments and the income from them may vary and you may realise less than the sum invested. Past performance is not necessarily a guide to future performance and no guarantees are offered in respect of investment returns and/or capital invested. Tax assumptions may change and you should rely on your own tax adviser when considering your personal circumstances. The funds may have exposure to securities denominated in currencies other than their functional currency; changes in exchange rates may have an adverse impact upon the fund performance. The investment may not be suitable for all recipients of this publication.