Farringdon - UK Top 5 Index (Updated)

75 %
25 %
Information about Farringdon - UK Top 5 Index (Updated)

Published on October 27, 2016

Author: DuncanCameron6

Source: slideshare.net

1. Index Strategy The UK top 15 index buys the equity holdings of the top 15 funds rated in Morning Star’s UK Large Cap Blend Equity category each month. The index takes the highest performers from the previous month as rated by total performance then purchases them in the subsequent month. By using this strategy the index has been able to outperform the FTSE 100 by 25.79% over the past 5 years in back testing. The index has generated a total return of 36.47% over 5 years. To catch out any one off performances by fund managers the index only selects funds that have a long track record of outperformance. All funds analysed for the index must have a minimum 4 star rating from Morning Star with a minimum asset value of £100 million and a track record of no less than 3 years. By effectively purchasing the top 15 performing investment funds each month we can generate a well-diversified UK equity portfolio in a single investment. In addition by selecting the funds with the best recent performance we can capture returns from managers that are in their ascendance rather than those resting on their laurels from previous years. As UK Top 15 is a quantitative strategy it can be back tested to analyse its past performance. When looking at the historic performance of the index there is a tendency for the investments selected to become more aggressive in rising markets and more defensive in falling markets. This type of investment is known as a smart beta approach and it is captured by the natural process on the index in moving between the best performing managers each month. By buying the underlying holdings of the best performing managers rather than the direct investment funds we can reduce the fees associated with the strategy and minimise the time we spend out of the market. Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total 2011 - - - - - -3.90% 0.98 -6.74% -5.16% 9.53% -6.56% 1.14% -1.15% 2012 3.66% 6.32% -0.34% 0.53% -9.59% 5.67% 2.43% 3.67% -4.25% 1.90% 0.99% 2.84% 23.59% 2013 3.26% -1.05% 2.63% 3.62% 0.77% -2.99% 6.46% 0.65% -6.69% 4.66% 1.93% 3.39% 33.94% 2014 -2.48% 7.32% -2.59% 2.36% 0.98% 0.40% -1.48% 1.03% -4.40% -1.36% 1.25% -1.07% -0.53% 2015 -0.64% 5.15% -4.64% 4.37% 2.60% -0.99% 0.59% -5.38% -2.11% 6.33% -1.45% -2.59% 0.46% 2016 -8.62% -0.63% 5.96% 2.46% -0.64% -10.49% 4.86% 1.90% -0.87% - - - -7.13% Jul May 180,000 Month -0.87% YTD -7.13% 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan May Sep Jul Mar Top 15 137,674.18 136,931.26 FTSE UK Top 15 Index Factsheet 2011 20162012 2013 2014 2015

2. UKTOP15INDEX Stock Sectors Sector Portfolio Bmark(%) Cyclical 52.93 38.50 Basic Matls 6.59 7.34 Consumer Cyclc 17.89 11.21 Financial Svs 25.53 17.60 Real Estate 2.92 2.35 Sensitive 32.13 28.72 Commun Svs 7.28 5.14 Energy 6.20 12.41 Industrial 13.40 8.62 Technology 5.25 2.55 Defensive 14.94 32.78 Consumer Def 6.86 18.20 Healthcare 5.18 10.43 Utilities 2.90 4.15 Not Classified 0.00 0.00 Base Currency GBP Total Ongoing Charges TBC Performance Fee TBC Minimum Investment TBC Fund Pricing Daily Investment Manager Martin Young Pricing Avalibility TBC ISIN TBC SEDOL TBC Issuer TBC Dealing Frequency Daily Dividend Distribution TBC World Regions Country Portfolio Bmark(%) America 4.52 4.34 North America 4.52 4.28 Latin America 0.00 0.06 Greater Europe 94.78 94.87 United Kingdom 91.40 93.69 Europe-Developed 3.18 0.95 Europe-Emerging 0.00 0.16 Africa/MIddle East 0.20 0.08 Greater Asia 0.70 0.78 Japan 0.00 0.15 Australasia 0.37 0.04 Asia-Developed 0.21 0.20 Asia-Emerging 0.12 0.39 Not Classified 0.00 0.00 Past performance is no guide to future returns. Returns prior to Certificate launch date are a back test using available data and reflect performance of securities meeting investment criteria. Quoted returns do not include any fees added by issuers or any third party providers. This information sheet has been prepared solely for information purposes. It is for distribution only in such circumstances as may be permitted by applicable law. No representation or warranty, express or implied, is made as to the accuracy or reliability of the information contained herein. This document should not be construed as an offer or solicitation to buy or sell securities. Farringdon Asset Management Pte Ltd performs the role of index adviser which is a fund management activity as specified by the Singapore Securities and Futures (CAP 289) 2005 and in no way implies that the company is providing Financial Advice or Product Distribution. Please note the value of your investment may fall as well as rise and past performance is no guarantee for future success. This document is only intended for circulation to Accredited Investors as defined by the Singapore Securities and Futures (CAP 289) 2005. Index X-Ray Index Detail Disclaimer Sensitive Benchmark Cyclical Portfolio Defensive <25 25—50 50—75 >75

Add a comment