0845 788 99 33
info@towry.com

Janet Buckingham - PA, Bracknell

Janet Buckingham
PA, Bracknell

Portfolio Performance

Historic Investment Performance Information

Below you will find information on the investment performance of portfolios, net of fees, for clients with typical risk profiles.

Important Notice

Past performance is not an indication of future performance. The value of investments can fall as well as rise and you may not get back the amount invested.

If you would like to learn more about our independent investment management services, or to discuss how we might tailor a portfolio to meet your personal financial objectives, please call us on 0845 788 9933 or email info@towry.com.

Investment commentary

Dr Robert Dawkins, Chief Investment Officer

Economic and political conditions in the second half of 2011 were exceptionally difficult. Initially stock markets sold off in August due to fears the US would go into another recession, although these fears proved unfounded as the US posted higher growth in the final quarter of 2011. However, equity markets were held back by political arguments on raising the debt ceiling, the consequent US debt downgrade and the ongoing failure of the Eurozone to address its solvency and competitiveness problem.

This proved to be an extremely challenging environment for investors. Markets were very volatile which made trading between different asset classes even more risky than usual. However, economic fundamentals and corporate profitability was often overlooked as negative sentiment sent markets down.

Our view is that there are, in many markets, significant dislocations between the value of assets and their market price, and that opportunities for positive returns abound as they did in late 2008 and early 2009, although these may not be realised in the short term.

While we are not overly optimistic about economies in 2012, we are increasingly excited about the potential of some more niche and sophisticated managers to generate meaningful future returns.

We think that inflation will be considerably lower in 2012 than 2011, but retain the view that ultimately this economic cycle is going to end in a significant increase in inflation. This is why we consider it important to retain a core of real assets, such as equities and property, so we will add to these and other appropriate and select investments as the cycle completes.

2012 does hold more uncertainty but we believe that economic growth will pick up later in the year into 2013, that this will be anticipated by stockmarkets, and that this will translate to positive performance for our clients' portfolios.

The Cautious Risk Investor

The Moderate Risk Investor

The Intermediate Risk Investor

The Adventurous Risk Investor

Comparative Indices

 

The Cautious Risk Investor

The Cautious Investor aims to achieve a positive real return on their money but wishes to minimise the potential for losses. This may be obtained through investing predominantly in lower volatility securities such as fixed income securities and commercial property whilst also maintaining some exposure to a range of diversified equities if appropriate.

This type of investor will have a significant proportion of their portfolio invested in Fixed Interest securities, with the balance invested across Equities, Commercial Property and Non-traditional Strategies.

Period - 1 year to Return (%) Volatility (%) Inflation (%) Cash - Return (%)
30/12/11 -0.5 4.2 4.2 0.8
31/12/10 6.8 3.6 3.7 0.7
31/12/09 4.3 5.3 2.8 0.8
31/12/08 0.1 6.7 3.1 3.5
31/12/07 1.3 2.9 2.1 4.0
31/12/06 5.2 2.6 3.0 3.2
31/12/05 11.9 2.6 1.9 3.2
Annualised to 30/12/11    
3 years 3.5 4.4 3.6 0.8
5 years 2.3 4.7 3.2 2.0
7 years 4.1 4.2 3.0 2.3

 

The Moderate Risk Investor

Moderate Investors try to achieve a positive real return on their money and are prepared to accept the possibility of moderate losses in order to achieve this. They accept the need for controlling loss through lower volatility securities such as fixed income securities and commercial property but appreciate the need for a sufficient equity exposure in order to enhance returns over the long term.

The Moderate Investor will have a balance between the use of Equities, Fixed Interest, Commercial Property and Non-traditional Strategies in their investment portfolio.

Period Return (%) Volatility (%) Inflation (%) Cash - Return (%)
30/12/11 -3.8 8.2 4.2 0.8
31/12/10 10.6 6.7 3.7 0.7
31/12/09 10.9 8.5 2.8 0.8
31/12/08 -8.9 10.4 3.1 3.5
31/12/07 2.5 4.8 2.1 4.0
31/12/06 7.2 4.6 3.0 3.2
31/12/05 17.0 4.1 1.9 3.2
Annualised to 30/12/11    
3 years 5.7 7.9 3.6 0.8
5 years 1.9 8.0 3.2 2.0
7 years 4.7 7.1 3.0 2.3

 

The Intermediate Risk Investor

The Intermediate Investor wishes to achieve a positive real return on their money and is prepared to accept the possibility of higher losses in the short term to try and achieve this. This may be realised through a balance of diversified equities, fixed income securities and commercial property.

There will be a reasonable allocation to Equities within their portfolio with the balance invested across Fixed Interest, Commercial Property and Non-traditional Strategies.

Period Return (%) Volatility (%) Inflation (%) Cash - Return (%)
30/12/11 -6.7 11.3 4.2 0.8
31/12/10 13.0 9.3 3.7 0.7
31/12/09 15.9 11.8 2.8 0.8
31/12/08 -14.3 14.1 3.1 3.5
31/12/07 4.0 7.1 2.1 4.0
31/12/06 8.3 6.5 3.0 3.2
31/12/05 21.4 5.7 1.9 3.2
Annualised to 30/12/11    
3 years 6.9 7.5 3.6 0.8
5 years 1.7 11.8 3.2 2.0
7 years 5.3 10.2 3.0 2.3

 

The Adventurous Risk Investor

The Adventurous Investor wishes to achieve a high positive real return on their money and is prepared to accept the possibility of high losses in the shorter term to realise their goals. This type of investor is comfortable having the majority of their exposure in a diversified basket of equities in order to achieve this.

Within the Adventurous Investor's portfolio there will be a high allocation to Equities and a small allocation to Fixed Interest, with the balance invested across Commercial Property and Non-traditional Strategies.

Period Return (%) Volatility (%) Inflation (%) Cash - Return (%)
30/12/11 -7.4 12.6 4.2 0.8
31/12/10 13.3 10.3 3.7 0.7
31/12/09 19.9 14.2 2.8 0.8
31/12/08 -13.3 15.4 3.1 3.5
31/12/07 5.9 8.8 2.1 4.0
31/12/06 9.3 7.6 3.0 3.2
31/12/05 n/a n/a 1.9 3.2
Annualised to 30/12/11    
3 years 8.0 8.3 3.6 0.8
5 years 2.9 13.2 3.2 2.0
7 years n/a 11.6 3.0 2.3

 

Important Information

1.Volatility shows the annualised weekly variability of returns.
2. The UK Consumer Price Index is used to illustrate the rate of UK inflation.
3. The Moneyfacts Average Instant Access £10000 index is used to illustrate the returns from cash.
4. Returns for Towry client portfolios are based on a portfolio of £300,000, net of all charges and tax, including underlying fund charges, with interest and dividends reinvested.
5. 'n/a' denotes periods before we managed portfolios with this risk profile, therefore, performance is not available.

Comparative Indices

Period -1 year to Indices - Return (%)            
  UK Equity Global Developed Market Equity Global Emerging Market Equity Fixed Income Uk Commercial Property Fund of Hedge Funds Commodities
30/12/11 -2.2 -4.3 -17.6 13.2 7.0 -5.6 -12.7
31/12/10 12.6 15.9 22.9 7.9 17.5 5.7 20.5
31/12/09 27.3 16.5 59.4 4.0 -10.4 11.5 5.9
31/12/08 -28.3 -17.4 -35.2 3.7 -21.3 -21.4 -10.9
31/12/07 7.4 7.7 37.4 3.3 0.9 10.3 14.3
31/12/06 14.4 5.8 16.3 0.7 30.2 10.4 -10.5
31/12/05 20.8 23.0 50.5 8.7 13.3 7.5 35.7
Annualised to 30/12/11
3 years 12.0 8.9 17.4 8.3 4.1 -5.6 3.7
5 years 1.5 2.8 7.5 6.3 -2.2 3.6 2.5
7 years 5.9 5.9 14.1 5.8 4.0 -0.7 4.7

 

Period -1 year to Indices - Volatility (%)            
  UK Equity Global Developed Market Equity Global Emerging Market Equity Fixed Income Uk Commercial Property Fund of Hedge Funds Commodities
30/12/11 20.2 20.0 23.8 5.0 1.8 5.0 16.6
31/12/10 17.5 16.6 18.3 5.3 7.2 4.9 15.7
31/12/09 23.6 24.7 25.9 8.0 7.8 3.4 23.4
31/12/08 35.7 27.5 37.3 7.1 3.8 9.1 24.9
31/12/07 14.6 12.8 20.9 4.0 3.3 5.1 12.3
31/12/06 11.7 11.2 16.4 3.7 15.9 4.7 16.8
31/12/05 8.9 10.7 15.4 4.1 7.7 4.2 15.0
Annualised to 30/12/11
3 years 20.5 20.6 23.1 6.2 6.4 4.6 18.8
5 years 23.5 20.9 26.3 6.0 5.6 4.7 19.1
7 years 20.6 18.6 23.8 5.5 8.3 6.7 18.3

Source: Lipper Hindsight and Hedge Fund Research

Past performance is not an indication of future performance. The value of investments can fall as well as rise and you may not get back the amount invested.

Index performance

1. Volatility is calculated on an annualised weekly return basis, except for the HFRI Fund of Funds index which is calculated using monthly returns.
2. Index returns are calculated with interest and dividends reinvested. All indices except the HFRI Fund of Funds index are
costless indices, whilst the HFRI is reported net of all fees.
3. The FTSE 100 index is used to illustrate the returns from UK equity markets.
4. The MSCI World index (GBP, unhedged) is used to illustrate the returns from developed global equity markets in sterling terms.
5. The MSCI Emerging Market Index (GBP, unhedged) is used to illustrate the returns from global emerging equity markets in sterling terms.
6. The Markit iBoxx Sterling Overall index is used to illustrate the returns from investment grade sovereign and corporate fixed income bonds issued in the UK.
7. The FTSE All UK Property index is used to illustrate the returns from UK commercial property.
8. The HFRI Fund of Funds index (USD) is used to illustrate the returns from funds of hedge funds in dollar terms. The last 4 months of data for this index are estimates and are subject to change.
9. The Dow Jones UBS Commodity Index (GBP, unhedged) is used to illustrate the returns from commodity markets in sterling terms.

Making the most of your investments

Investing is a complex business which requires skill, knowledge and a significant amount of time.

Our service is independent. We focus on managing investment risk and providing greater consistency of returns with lower volatility for your investments - trying to capture rising markets and trying to avoid the worst of falling markets.

We will develop a financial plan with you and, from that, agree the most appropriate portfolio with a level of risk aligned to your requirements. Understanding risk and the expected range of returns that you might achieve is an important part of determining the right portfolio for you.

We do not follow the herd or bet on which markets will produce the best short term benefits. Instead we make decisions based on our expert knowledge and experience, taking into account your needs. Managing your portfolio to maintain the appropriate level of risk is at the heart of our investment process.

We construct and manage portfolios that are suited to meet your needs and requirements and do not generate commissions or other income when we decide to make changes within a portfolio.

For more information, please call us on 0845 788 9933 or email info@towry.com.