July 2011 Fact Sheet

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KEY FACTS

Portfolio Risk Spectrum

IMPORTANT INFORMATIONThis communication is for professional investors only andshould not be relied upon by private investors. Thisdocument is provided to illustrate Myddleton Croftnvestment Managers model portfolios and is fornformation purposes only and does not constitute an

advertisement, financial promotion or financial,professional or investment advice. Nothing in thisdocument constitutes a recommendation suitable orappropriate to a recipient's individual circumstances. Itshould not be inferred that all portfolios will performexactly the same as the model portfolios as other factors,such as capital gains tax & the time taken to invest theportfolio, may affect individual portfolio performance.Please remember that past performance is not a guide tofuture performance and that the value of investments maygo down as well as up and any opinions expressed aresubject to change and may not be current views.

Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE

T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.ukMyddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.

Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.

Myddleton Croft Investment ManagersBalanced Moderate Risk Model


Cautious

Moderate

Adventurous

Highly Adventurous

2

3

4

5

Defensive 1

Speculative 9

July has not been a good month for equities, it has been a month of macro economic storms and thefocus has been well away from individual companies prospects. Initially the ongoing worries were abouthe solvency of Greece. You will note that the EU is dispensing with the lie that the crisis was one of

liquidity. Italian and Spanish 10 year bond yields rose above 6% and it is worth noting that, at the 7%

level, Greece, Portugal & Ireland went cap in hand to the IMF & ECB for a bail-out. This is why we have verminimal equity/bond exposure to the PIIGS (Southern Europe) or bank stocks in Europe, the UK or theStates. If a bank has been given the ability to value at model prices or at redemption, as has been the cas

with PIIGS debt, is this not encouraging moral hazard on a more systematic basis?

The month has seen a debate over the increasing US debt ceiling which seems to have been agreed. Thagreement increased the debt ceiling to $16.4 trillion from $14.3 trillion. The Republicans have squeezeda commitment to $2.5 trillion of savings over the next 10 years. However, the net present value of futur

liabilities is calculated by Pimco to be $66 trillion when future entitlements (Social Security, Medicare &Medicaid) are included, which puts into context the little progress was made with a paltry equivalent o

$250 billion p.a.

It is worth noting that, as the final touches to the debt ceiling revision were being made, US GDP figure

for Q2 were released and further (downward) revisions to historic GDP numbers were made. These madeextremely poor reading and with weak consumer spending as well as a very poor ISM manufacturing

index figure; all this points to something much more than a soft patch in growth and a comparison could

be made to the weak UK economy. We have counselled that the recovery would not take the same path

as in recent decades. Recovery from a credit bubble burst is slow and protracted. There have been number of downgrades to US GDP which at one time earlier this year was 3.5%, Bill Gross was quoted onthe possibility of another recession, Not yet. We are talking about it in an investment committee. Ou

numbers for the second half are 1% to 2% in terms of real GDP growth. They were 2% to 3%. We hav

reduced that based on recent statistics. We are not looking at another recession yet, but we are at atipping point. We are at what we call a stall speed in which corporate profits dont grow, jobs arentcreated. Therefore the economy sinks based on a stall speed concept in terms of airplanes.

Perhaps what we arlooking at is the emperor

new clothes without thbenefit of stimulus, a new

round of which lookunattainable in westereconomies bent on greate

fiscal rectitude. It is worth

pointing out that UK, US &

European budget deficitare based upoconsiderably higher level

of GDP growth than Pimco

are now forecasting for theUS and that UK & Europare now producing. Shouldthis level of growth persist

at least 1% below trendwould be a norma

recovery from the sub prime crisis, as Reinhart & Rogoff wrote in their book This Time Is Different.

As you will note from our factsheets that we are cautiously positioned in our portfolios with cashaveraging 15%. A high proportion of our equity exposure is in defensive companies as well as having lowexposure to bond and equity markets where we see some cliff risk. A small anecdote I came across in myweb-travels, "Bankruptcy may look like in Greek and bancarrota in Portuguese but the Greek

and the Portuguese both understand that sovereign bankruptcy in Europe means great, big handouts

from their neighbours. It means "Promise a bunch of stuff, but do almost nothing until the money runout." After that, bankruptcy will mean what it always means: the borrowers will stiff the lenders and lifewill move on.

Myddleton Croft Investment Managers July 2011

nvestment Managers

Patrick ToesInvestment Director with over 20 years

experience in fund management.

Previously a member of Rensburg

Sheppards Asset Allocation and Fund

Selection Committees for over 9 years

nd former chairman of those committees at BWD

Rensburg, he holds a MSC in Investment Analysis and is

n Associate Member of the Society of Investment

Professionals (ASIP).

David CowellChief Executive, possessing over 40 years

of experience in financial services, with

over 25 years being investment

management focussed. David formulates

the macro economic position and leads

he investment process across the portfolio range. He

lso has over 10 years experience of business

onsultancy to small and medium siz ed enterprises.

Stephen WoodAssistant Investment Manager graduated

from the University of Manchester in

economics. His industry experience

ranges from petro-chemical finance to

pharmaceutical development within

arge multinationals. He holds several financial

qualifications including CIMA and the IMC and is

urrently working towards further professional

qualifications. He joined Myddleton Croft in 2010.

For Further Information Call :

0113 274 7700Email : [email protected]

Or visit us at :www.myddletoncroft.co.uk

MANAGERS COMMENTS


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KEY FACTS


IMPORTANT INFORMATIONThis communication is for professional investors only and

should not be relied upon by private investors. Thisdocument is provided to illustrate Myddleton Croftnvestment Managers model portfolios and is for

nformation purposes only and does not constitute anadvertisement, financial promotion or financial,professional or investment advice. Nothing in this

document constitutes a recommendation suitable orappropriate to a recipient's individual circumstances. Itshould not be inferred that all portfolios will perform

exactly the same as the model portfolios as other factors,such as capital gains tax & the time taken to invest theportfolio, may affect individual portfolio performance.

Please remember that past performance is not a guide tofuture performance and that the value of investments maygo down as well as up and any opinions expressed aresubject to change and may not be current views.




Performance Since Launch (Jan 2008)

Asset Allocation Performance Statistics






Cautious

Moderate

Adventurous

Highly Adventurous

2

3

4

5

Defensive 1

3 Year Rolling Volatility

Speculative 9

Investment Managers



Previously a member of RensburgSheppards Asset Allocation and Fund


and former chairman of those committees at BWD


an Associate Member of the Society of Investment







the investment process across the portfolio range. He

also has over 10 years experience of business

consultancy to small and medium sized enterprises.

Stephen Wood

Assistant Investment Manager graduatedfrom the University of Manchester in






currently working towards further professional


PORTFOLIO OBJECTIVE

To generate a portfolio with a balance of income and capital growth over the medium to long term byharnessing the higher return potential of equity markets. The model will seek to reduce thefluctuations in capital values inherent in equity investments through a significant allocation to fixedinterest, commodities, absolute return/hedge funds and other non-equity vehicles. Over the mediumterm, a base case would be 40:60 allocation to equity and non-equity investments respectively.However this allocation is flexible and could vary between 30% and 50% in equities, dependent onvaluation and risk. Portfolios are also available with an income or growth mandate..

PORTFOLIO KEY ATTRIBUTES

InvestmentProfile

Balanced

Balanced Defensive Risk Model July 201


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KEY FACTS


IMPORTANT INFORMATIONThis communication is for professional investors only and

should not be relied upon by private investors. Thisdocument is provided to illustrate Myddleton Croftnvestment Managers model portfolios and is for

nformation purposes only and does not constitute anadvertisement, financial promotion or financial,professional or investment advice. Nothing in this

document constitutes a recommendation suitable orappropriate to a recipient's individual circumstances. Itshould not be inferred that all portfolios will perform

exactly the same as the model portfolios as other factors,such as capital gains tax & the time taken to invest theportfolio, may affect individual portfolio performance.

Please remember that past performance is not a guide tofuture performance and that the value of investments maygo down as well as up and any opinions expressed aresubject to change and may not be current views.











Cautious

Moderate

Adventurous

Highly Adventurous

2

3

4

5

Defensive 1


Speculative 9

Investment Managers

















Stephen Wood









PORTFOLIO OBJECTIVE

To generate a portfolio with a balance of income and capital growth over the medium to long term byharnessing the higher return potential of equity markets. The model will seek to reduce thefluctuations in capital values inherent in equity investments through a significant allocation to fixedinterest, commodities, absolute return/hedge funds and other non-equity vehicles. Over the mediumterm, a base case would be 45:55 allocation to equity and non-equity investments respectively.However this allocation is flexible and could vary between 35% and 55% in equities, dependent onvaluation and risk. Portfolios are also available with an income or growth mandate.


InvestmentProfile

Balanced

Balanced Cautious Risk Model July 201


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KEY FACTS


IMPORTANT INFORMATION

This communication is for professional investors only andshould not be relied upon by private investors. Thisdocument is provided to illustrate Myddleton Croftnvestment Managers model portfolios and is fornformation purposes only and does not constitute an












Cautious

Moderate

Adventurous

Highly Adventurous

2

3

4

5

Defensive 1


Speculative 9

Investment Managers

















Stephen Wood









PORTFOLIO OBJECTIVE

To generate a portfolio with a balance of income and capital growth over the medium to long term byharnessing the higher return potential of equity markets. The model will seek to reduce thefluctuations in capital values inherent in equity investments through a significant allocation to fixedinterest, commodities, absolute return/hedge funds and other non-equity vehicles. Over the mediumterm, a base case would be 50:50 allocation to equity and non-equity investments respectively.However this allocation is flexible and could vary between 40% and 60% for each asset class,dependent on valuation and risk. Portf olios are also available with an income or growth mandate.


InvestmentProfile

Balanced

Balanced Moderate Risk Model July 201


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KEY FACTS















Cautious

Moderate

Adventurous

Highly Adventurous

2

3

4

5

Defensive 1


Speculative 9

Investment Managers

















Stephen Wood









PORTFOLIO OBJECTIVE



InvestmentProfile

Balanced

Balanced Adventurous Risk Model July 201


6/8

KEY FACTS















Cautious

Moderate

Adventurous

Highly Adventurous

2

3

4

5

Defensive 1


Speculative 9

Investment Managers

















Stephen Wood









PORTFOLIO OBJECTIVE

To generate a portfolio with a balance of income and capital growth over the medium to long term byharnessing the higher return potential of equity markets. The model will seek to reduce thefluctuations in capital values inherent in equity investments through a significant allocation to fixedinterest, commodities, absolute return/hedge funds and other non-equity vehicles. Over the mediumterm, a base case would be 60:40 allocation to equity and non-equity investments respectively.However this allocation is flexible and could vary between 50% and 70% in equities, dependent on

valuation and risk. Portfolios are also available with an income or growth mandate.


InvestmentProfile

Balanced

Balanced Highly Adventurous Risk Model July 2011


7/8

KEY FACTS















Cautious

Moderate

Adventurous

Highly Adventurous

2

3

4

5

Defensive 1


Speculative 9

Investment Managers

















Stephen Wood









PORTFOLIO OBJECTIVE



InvestmentProfile

Balanced

Balanced Speculative Risk Model July 2011


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KEY FACTS


This communication is for professional investors only andshould not be relied upon by private investors. This

document is provided to illustrate Myddleton Croftnvestment Managers model portfolios and is fornformation purposes only and does not constitute an

advertisement, financial promotion or financial,professional or investment advice. Nothing in thisdocument constitutes a recommendation suitable or

appropriate to a recipient's individual circumstances. Itshould not be inferred that all portfolios will performexactly the same as the model portfolios as other factors,

such as capital gains tax & the time taken to invest theportfolio, may affect individual portfolio performance.Please remember that past performance is not a guide tofuture performance and that the value of investments maygo down as well as up and any opinions expressed aresubject to change and may not be current views.


T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.ukMyddleton Croft Ltd is authorised and regulated by the Financial Services Authority Registered in England & Wales number 05782909 VAT number UK 889 241088

Back Tested Performance Since Jan 2008




Back Tested 3 Year Rolling Volatility

PORTFOLIO OBJECTIVE

The objective of the Enhanced Income Portfolio is to target a 6% return of which 4% can be distributedeither half yearly, yearly or rolled up. The secondary aim is to provide a degree of protection againstthe effects of inflation. The portfolio is predominantly invested in bonds, which will comprise 70% ofthe allocation on average with the balance invested in equities, absolute return and commodities.

The Enhanced Income Portfolio was launched at the beginning of 2011. It should be noted that theperformance and volatility data before that date (presented below) is from the back-tested portfolioand is provided for illustration purposes only.


InvestmentProfile

Enhanced Income Portfolio Q2 201

EIP

Investment ManagersPatrick Toes

Investment Director with over 20 years


Previously a member of Rensburg

Sheppards Asset Allocation and Fund












also has over 10 years experience of businessconsultancy to small and medium sized enterprises.

Stephen WoodAssistant Investment Manager graduated

from the University of Manchester in




large multinationals. He holds several financial







July 2011 Fact Sheet

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Transcript of July 2011 Fact Sheet