advisor report q1 2016

ADVISOR INVESTMENT SOLUTIONS

A GOVERNED CENTRALISED INVESTMENT PROCESS

QUARTERLY RISK AND PERFORMANCE REPORT

QUARTER ENDING 31 March 2016

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CONTENTS

Overview of the ADVISOR Process Pages 2 - 5 Risk Level 3 – Low Risk Pages 6 - 12

Risk Level 4 – Lowest Medium Risk Pages 13 - 19 Risk Level 5 – Low Medium Risk Pages 20 - 26

Risk Level 6 – High Medium Risk Pages 27 - 33

Risk Level 7 – Highest Medium Risk Pages 34 - 40 Risk Level 8 – High Risk Pages 41 – 45

Income Funds Pages 46 - 49 Summary of Results Page 50

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A BACKGROUND TO ADVISOR INVESTMENT SOLUTIONS ADVISOR Investment Solutions (ADVISOR) utilises Risk Profiling via the Distribution Technology (DT)

Dynamic Planner Tool which assesses both attitude to risk and capacity for loss. Risk is assessed on a scale of 1 to 10 where 1 is the least risky and 10 the highest level of risk.

ADVISOR then concentrates on risk levels 3 to 8 which are categorised as follows –

Level 3 Low Risk

Level 4 Lowest Medium Risk Level 5 Low Medium Risk Level 6 High Medium Risk Level 7 Highest Medium Risk

Level 8 High Risk The DT Quantitative Analysis team generates estimates as to how a wide range of asset classes are expected

to behave over the long-term with respect to returns, volatility and co-variance. The methods are based on

Modern Portfolio Theory techniques to derive efficient portfolios which maximise expected returns for any estimates of risk premiums, as well as other factors such as, current corporate debt default rates and inflation.

They are able to produce a spectrum of asset allocations that gradually increase in risk allowing them to

break the efficient frontier into risk bands and select a suitable target asset allocation as representative of

each band. Each target asset allocation is selected from a choice of 10 asset classes but typically focuses on 3-4 asset

classes per risk category. The process then has several outcomes each with a number of risk based asset allocations (or sub-funds)

which are all mapped to the risk targets determined by DT. Risk is measured by annualised volatility.

THE SOLUTIONS

FUND MANAGER RANGE TYPE TACTICAL AA (Y or N)

ACTIVE/PASSIVE INVESTMENTS

PREMIER LIBERATION FUND OF FUNDS N ACTIVE

7 IM AAP FUND OF FUNDS Y PASSIVE

**LIONTRUST/OMW ADVISOR PORTFOLIOS

MODEL PORTFOLIOS DISCRETIONARY

Y ACTIVE

CLOSE A M ADVISOR PORTFOLIOS

MODEL PORTFOLIOS DISCRETIONARY

N ACTIVE

VANGUARD LIFE STRATEGY INTERNAL F of F N PASSIVE

CLOSE A M BESPOKE FULL DMS Y ACTIVE

**The Liontrust/OMW performance data throughout this report is based on the asset allocation for the Liontrust WSS Portfolios. Asset Allocation will be fully replicated but a very small percentage of underlying funds will not be available under the OMW Platform so will be replaced using the alternative funds. This will have no significant impact on performance or risk levels.

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TARGET ASSET ALLOCATIONS

The DT Target Asset Allocations provide a basis for the Strategic Asset Allocations (SAA) for each of the

investment outcomes. Some of these outcomes follow this SAA – Liberation Funds and ADVISOR Portfolios Managed by Close – while others use both a Tactical Asset Allocation (TAA) based on current economic conditions, short term outlook for interest rates, growth, inflation, etc., and also use alternative investments

not covered by the DT Strategic Asset Allocation. Under the AAP options for 7 IM and Passive ADVISOR Portfolios managed by Liontrust Asset Allocation is active whilst the funds used are largely passive/trackers. NOTE: THE LIBERATION FUNDS WERE BROUGHT INTO LINE WITH DT ASSET ALLOCATIONS FROM 1 DECEMBER

2012 ONLY.

VOLATILITY AND RETURN ASSUMPTIONS

The assumed volatility and returns from 1 January 2016, based on rolling 15 year data for each asset class to 31 December 2015, are shown in the following table.

ASSET CLASS EXPECTED RETURN ANNUALISED VOLATILITY

CASH 1.9% 1.5% UK GILTS 2.3% 6.0%

UK CORPORATE BONDS 3.7% 6.4%

UK INDEX-LINKED GILTS 1.8% 7.6% INTERNATIONAL BONDS 1.8% 8.2%

GLOBAL HIGH YIELD BONDS 6.1% 10.8%

UK EQUITIES 6.8% 14.0%

EUROPEAN EQUITIES 7.0% 19.1% NORTH AMERICAN EQUITIES 6.6% 15.2%

JAPANESE EQUITIES 5.3% 16.2%

PACIFIC EX JAPAN EQUITIES 8.1% 18.6% EMERGING MARKET EQUITIES 9.0% 21.2%

UK PROPERTY 4.7% 10.7%

COMMODITIES 5.9% 20.4% ABSOLUTE RETURN 3.5% 8.6%

UNCLASSIFIED 4.5% 7.2%

Source: Distribution Technology 2016

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The actual return and volatility matrix, based on asset allocations outlined under each of the risk levels and over the 5 years to 31 March 2016, is shown below

Key Name Performance Annualised Volatil ity

A ADVISOR RISK 4 MARKETS TR in GB 38.90 6.41

B ADVISOR RISK 5 MARKETS TR in GB 37.34 7.79

C ADVISOR RISK 3 MARKETS TR in GB 37.23 4.62

D ADVISOR RISK 4 SECTORS TR in GB 35.93 6.46

E ADVISOR RISK 6 MARKETS TR in GB 35.46 8.96

F ADVISOR RISK 5 SECTORS TR in GB 35.23 8.03

G ADVISOR RISK 6 SECTORS TR in GB 34.25 9.37

H ADVISOR RISK 3 SECTORS TR in GB 33.81 4.60

I ADVISOR RISK 7 SECTORS TR in GB 31.52 10.65

J ADVISOR RISK 7 MARKETS TR in GB 30.64 10.15

K ADVISOR RISK 8 SECTORS TR in GB 22.78 11.76

L ADVISOR RISK 8 MARKETS TR in GB 21.80 11.29

Source: Financial Express 2016

RISK AND PERFORMANCE MEASUREMENT There are three contributors to the funds’ performance –

1. Market Return (Strategic Asset Allocation) 2. Tactical Asset Allocation 3. Fund Selection

For the Liberation Funds and ADVISOR Portfolios managed by Close items 1 and 3 apply. For the fully active portfolios (ADVISOR Portfolios managed by Liontrust) all three apply. Having established the above methodology for ADVISOR, the “sub-funds”/portfolios for each outcome are

tested on a quarterly basis to ensure the volatility targets are being maintained and that managers are adding value. For this purpose there are two primary benchmarks –

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Annualised Volatility Benchmark - the volatility benchmark is created using market indices

weighted by the Strategic Asset Allocation provided by DT. This then tests the DT volatility target so that managers are not penalised for excess volatility caused purely by excess market movement which breaches the targets set by DT. The volatility measurement ensures an early warning of any deviation

from the model which could be detrimental to client portfolios.

Performance Benchmark - the performance benchmark is created using IA sector averages weighted

by the Strategic Asset Allocation provided by DT. This is used as a primary performance benchmark for the active funds (Liberation and ADVISOR Portfolios ex AAP). However, for passive funds/portfolios (the Seven IM AAP Funds and ADVISOR AAP Portfolios) the Volatility Benchmark is used.

UNIQUE INTERNAL PORTFOLIO RATING

From the data provided in this report we are able to produce a unique rating to each of the portfolios we use on a scale of 1 to 5 where 1 is the lowest and 5 is the highest. The scores are calculated based on the 1 and 3 year data.

Methodology – In order to ensure the relevance of the rating having regard for the risk profiling we use with clients we apply a score relative to the benchmark to each of the following performance attributes – Cumulative Performance, Volatility and Maximum Drawdown. Placing a 50% weighting on Performance and

25% each on Volatility and Drawdown we then take the average score as the portfolios’ rating. The individual scores are achieved as follows:- Performance -

Benchmark Return +/- 10% 3 Benchmark Return -10% to -25% 2 Benchmark Return -25% or more 1

Benchmark Return +10% to +25% 4 Benchmark Return +25% or more 5 Volatility and Maximum Drawdown -

Benchmark +/- 10% 3 Benchmark -10% to -25% 4 Benchmark -25% or more 5 Benchmark +10% to +25% 2

Benchmark +25% or more 1

RISK-FREE RATE Throughout the report risk-free rates of return are included for comparison purposes. The risk-free rate used is based on MoneyFacts 90 Day £10K+. This is used in the calculations showing the excess annualised risk

adjusted returns at the end of each section.

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DISTRIBUTION TECHNOLOGY RISK LEVEL 3

ADVISOR CATEGORY: LOW RISK

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STRATEGIES AVAILABLE Launch Date

Premier Multi-Asset Absolute Return C Shares 10 November 2010 (Note: This fund is not volatility targeted and performance is likely to vary significantly from the benchmark) 7 IM Personal Injury S Shares 27 March 2008

ADVISOR Low Risk Growth Managed by Liontrust/OMW 30 June 2011 ADVISOR Low Risk Growth Managed by Close/Nucleus 30 June 2013

Vanguard 20% Equity 23 June 2011

Bespoke Service N/A CHARGES A summary of the total charges applying to each portfolio is set out below.

STRATEGY MANAGER/OCF *PLATFORM UNDERLYING PORTFOLIO **TOTAL

PREMIER MA ARF 1.19% 0.35% N/A 1.54%

7 IM PERSONAL INJURY 0.48% 0.25% N/A 0.73%

ADVISOR Low Risk (Liontrust) ̂ 0.20%-0.50% 0.54% 0.74%-1.04%

ADVISOR Low Risk (Close) ̂ 0.35% 0.72% 1.07%

VANGUARD 20% Equity 0.24% 0.35% N/A 0.59%

BESPOKE 0.9% VARIES ACCORDING TO PORTFOLIO CONSTRUCTION

*The platform charge is based on the internal platform or the typical charge for using the platform. **The total charge excludes ADVISOR charges and any additional product charges such as SIPPs and Bonds.

^The manager fees for ADVISOR Portfolios managed by Close are paid by the ADVISOR from the ADVISOR Fee. ^The manager fees for ADVISOR Portfolios managed by Liontrust are paid by the ADVISOR from the ADVISOR Fee.

ASSET ALLOCATION AND TARGET VOLATILITY - Distribution Technology Strategic Asset Allocation from 1

October 2015 (Different AA has applied previously and all changes are taken into account in the data provided):-

ASSET CLASS ALLOCATION ASSET CLASS ALLOCATION CASH 10% GLOBAL HY BONDS 5%

UK CORPORATE BONDS 23% UK EQUITIES 15%

INTERNATIONAL BONDS 7% US EQUITIES 9%

UK GILTS 16% UK PROPERTY 8%

INDEX LINKED BONDS 7%

DISTRIBUTION TECHNOLOGY TARGET ANNUALISED VOLATILITY FROM 1 OCTOBER 2015

TARGET VOLATILITY LOWER BOUNDARY UPPER BOUNDRY 5.4% 4.2% 6.3%

Note: The lower boundary is soft – ie in times of low volatility we do not expect managers to chase volatility in the expectation of higher returns. The upper boundary is regarded as hard – ie we expect this not to be breached.

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VOLATILITY & PERFORMANCE MEASURES FOR PERIOD TO 31 March 2016 Volatility is measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year data. However, the various strategi es do not all have a 3 year track record to date so 1 year or 2 ye ar data will be considered by the Investment Committee overseeing the process. Performance is also measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year figures. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 year data will be considered by the Investment Committee overseeing the process.

STRATEGY ANNUALISED

VOLATILITY

MAXIMUM

DRAWDOWN

WITHIN TARGET

VOLATILITY

CUMULATIVE

PERFORMANCE

ANNUALISED

PERFORMANCE

ABOVE/BELOW

BENCHMARK

INTERNAL

SCORE

PREMIER MA ABS RETURN

1 Year 1.95% 1.42% BELOW 0.13% 0.13% BELOW 3.00

2 Years 1.70% 1.42% BELOW 4.35% 2.15% BELOW

3 Years 1.93% 1.42% BELOW 9.34% 3.02% BELOW 3.00


7IM PERSONAL INJURY

1 Year 5.66% 6.48% WITHIN -2.56% -2.56% BELOW 1.25

2 Years 4.70% 6.48% WITHIN 6.19% 3.05% BELOW

3 Years 4.70% 6.48% WITHIN 7.59% 2.47% BELOW 1.50


ADVISOR LOW RISK GROWTH (LIONTRUST/OMW)




5 Years N/A N/A N/A N/A N/A N/A

ADVISOR LOW RISK GRWOTH (CLOSE)

1 Year 4.20% 3.28% WITHIN 0.53% 0.53% ABOVE 4.50




VANGUARD 20%

EQUITY

1 Year 4.20% 3.13% WITHIN 1.42% 1.42% BELOW 3.50

2 Years 4.20% 3.13% WITHIN 12.56% 6.09% BELOW

3 Years 4.76% 5.00% WITHIN 12.34% 3.95% BELOW 2.00


BENCHMARKS

DT SAA (INDICES)

1 Year 5.00% 3.52% WITHIN 1.47% 1.47%

2 Years 5.10% 3.52% WITHIN 13.81% 6.68%

3 Years 5.20% 3.52% WITHIN 15.85% 5.03%

5 Years 4.62% 3.52% WITHIN 37.49% 6.57%

DT SAA (SECTORS)

1 Year 4.65% 3.75% WITHIN 0.30% 0.30% 2 Years 4.66% 3.75% WITHIN 11.43% 5.56%

3 Years 4.92% 3.75% WITHIN 14.05% 4.48%

5 Years 4.60% 3.75% WITHIN 34.07% 6.04%

RISK FREE RETURN

1 Year N/A N/A N/A 0.76% 0.76% 2 Years N/A N/A N/A 1.49% 0.74%

3 Years N/A N/A N/A 2.30% 0.76%

5 Years N/A N/A N/A 4.79% 0.94%

Source: Financial Express Ltd/Professional Fund Maintenance Ltd/Liontrust Ltd/Close AM/2016

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RISK ADJUSTED PERFORMANCE FOR PERIOD TO 31 March 2016 (SHARPE RATIO) The following chart shows the annualised returns achieved for each unit of risk (annualised volatility/standard deviation) by each strategy after deducting the risk free rate – a negative ratio shows that the investor would have been better leaving funds on deposit and not taking the investment risk making the ratio meaningless and therefore is rebalanced to zero. A positive ratio shows the investment has added to returns for the risk taken. The higher the ratio the better the manager has performed for the risk taken – either has produced higher returns for the same risk or has produced similar returns for less risk.


MAXIMUM DRAWDOWN The following chart shows the maximum drawdown suffered by the portfolios within the periods shown. This represents the worst

possible return over a period — for example, buying at the maximum price over the period and selling at the worst price, based on monthly valuations.

Source: Financial Express Ltd/Professional Fund Maintenance Ltd/Liontrust Ltd/Close AM/201 6

-0.20%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1 YEAR 2 YEARS 3 YEARS 5 YEARS

DT SAA (SECTORS)

DT SAA (INDICES)

PREMIER MA ARF

7IM PI

ADVISOR LOW RISK GTH(LION/OMW)

-7.00%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%


DT SAA (SECTORS)

DT SAA (INDICES)

PREMIER MA ARF

7IM PI

ADVISOR LOW RISK GTH(LION/OMW)

ADVISOR LOW RISK GTH (CLOSE)

VANGUARD 20% EQUITY

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ACTUAL RETURNS RELATIVE TO EXPECTATIONS The following charts show how each portfolio has performed based on annualised returns, relative to the expected long term average, and the expected upper and lower boundaries, over the past 1 to 5 years. The expected average and upper and lower boundaries are based on data provided by Distribution Technology for long term average returns and the 95 th and 5th percentile returns based on 15 year rolling periods. In other words 90% of the time it would be expected that actual returns would remain between the upper and lower bo undaries. The returns do not allow for inflation but do make an allowance for charges. The portfolio returns are net of internal charges but may not allow for managers’ charges, ADVISOR fees or platform fees.

-10%

-5%

0%

5%

10%

15%

1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS

EXPECTED LTAVERAGE

PREMIER MA ARF

EXPECTED MAX

EXPECTED MIN

-10%

-5%

0%

5%

10%

15%


EXPECTED LTAVERAGE

7IM PI

EXPECTED MAX

EXPECTED MIN

-10%

-5%

0%

5%

10%

15%


EXPECTED LT AVERAGE

ADVISOR LRG

(LION/OMW)

EXPECTED MAX

EXPECTED MIN

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Source: Professional Fund Maintenance Ltd 2016

-10%

-5%

0%

5%

10%

15%


EXPECTED LTAVERAGE

ADVISOR LRG(CLOSE)

EXPECTED MAX

EXPECTED MIN

-10%

-5%

0%

5%

10%

15%


EXPECTED LT AVERAGE

VANGUARD 20% EQUITY

EXPECTED MAX

EXPECTED MIN

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HISTORIC INTERNAL RATINGS The following 2 charts show the historic internal ratings of the various portfolios over rolling 1 and 3 year periods since the introduction of the measure at the end of December 2015.

1 YEAR

3 YEARS

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Q4 2015 Q1 2016

PREMIER MAAR

7IM PI FUND

ADVISOR LRG

(LION/OMW)

VANGUARD 20%

EQUITY

ADVISOR LRG (CLOSE)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

PREMIER MAAR

7IM PI FUND

ADVISOR LRG

(LION/OMW)

VANGUARD 20%

EQUITY

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ADVISOR CATEGORY: LOWEST MEDIUM RISK

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STRATEGIES AVAILABLE

Launch Date Premier Liberation IV C Shares 10 November 2010 7 IM AAP Moderately Cautious S Shares 27 March 2008

ADVISOR Lowest Medium Risk Growth (LMG) Managed by Liontrust/OMW 30 June 2011 ADVISOR Lowest Medium Risk Growth (LMG) Manged by Close/Nucleus 30 June 2013

Vanguard 40% Equity 23 June 2011

Bespoke Service N/A CHARGES A summary of the total charges applying to each portfolio is set out below.


LIBERATION IV 1.30% 0.35% N/A 1.65%

7 IM MOD CAUTIOUS AAP 0.42% 0.25% N/A 0.67%

ADVISOR (LMG) (Liontrust) ̂ 0.20%-0.50% 0.78% 0.98%-1.28%

ADVISOR (LMG) (Close) ̂ 0.35% 0.76% 1.11%





ASSET ALLOCATION AND TARGET VOLATILITY - Distribution Technology Strategic Asset Allocation from 1 October 2015

(Different AA has applied previously and all changes are taken into account in the data provided):

ASSET CLASS ALLOCATION ASSET CLASS ALLOCATION

CASH 5% PROPERTY 8% UK CORPORATE BONDS 27% UK EQUITIES 22%

UK INDEX LINKED BONDS 5% EUROPE EQUITIES 5%

UK GILTS 8% US EQUITIES 9%

GLOBAL HY BONDS 6% JAPAN EQUITY 5%




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VOLATILITY & PERFORMANCE MEASURES FOR PERIOD TO 31 March 2016 Volatility is measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year data. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 year data will be considered by the Investment Commit tee overseeing the process. Performance is also measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year figures. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 year data will be considered by the Investment Committee overseeing the process.

STRATEGY ANNUALISED VOLATILITY

MAXIMUM DRAWDOWN

WITHIN TARGET

VOLATILITY

CUMULATIVE PERFORMANCE

ANNUALISED PERFORMANCE

ABOVE/BELOW BENCHMARK

INTERNAL SCORE

LIBERATION IV



3 Years 5.67% 5.55% BELOW 18.27% 5.75% ABOVE 3.00


7IM MODERATELY CAUTIOUS AAP





ADVISOR LOWEST MEDIUM RISK GROWTH (LIONTRUST/OMW)

1 Year 5.63% 5.38% BELOW -2.20% -2.20% BELOW 2.25




ADVISOR LOWEST

MEDIUM RISK GRWOTH (CLOSE)

1 Year 6.19% 4.87% BELOW -0.36% -0.36% ABOVE 4.00




VANGUARD 40%

EQUITY

1 Year 5.58% 4.70% BELOW 0.89% 0.89% ABOVE 4.50

2 Years 5.07% 4.70% BELOW 13.40% 6.49% ABOVE



BENCHMARKS

DT SAA (INDICES)

1 Year 6.46% 5.24% WITHIN -0.01% -0.01%

2 Years 5.86% 5.24% BELOW 13.20% 6.40%

3 Years 6.11% 5.24% BELOW 18.33% 5.77%

5 Years 6.41% 8.06% WITHIN 39.07% 6.82%

DT SAA (SECTORS)

1 Year 6.08% 5.19% BELOW -0.50% -0.50%

2 Years 5.40% 5.19% BELOW 11.19% 5.45%

3 Years 5.71% 5.19% BELOW 17.23% 5.44%

5 Years 6.46% 8.15% WITHIN 36.10% 6.36%

RISK FREE RETURN


3 Years N/A N/A N/A 2.30% 0.76%

5 Years N/A N/A N/A 4.79% 0.94%


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MAXIMUM DRAWDOWN The following chart shows the maximum drawdown suffered by the portfolios within the periods shown. This represents the worst possible return over a period — for example, buying at the maximum price over the period and selling at the worst price, based on monthly valuations.


-0.20%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION IV

7IM MC AAP

ADVISOR LMG

(LION/OMW)

ADVISOR LM GTH (CLOSE)

VANGUARD 40% EQUITY

-9.00%

-8.00%

-7.00%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION IV

7IM MC AAP

ADVISOR LMG (LION/OMW)


VANGUARD 40% EQUITY

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ACTUAL RETURNS RELATIVE TO EXPECTATIONS The following charts show how each portfolio has performed based on annualised returns, relative to the expected long term av erage, and the expected upper and lower boundaries, over the past 1 to 5 years. The expected average and upper and lower boundaries are based on data provided by Distribution Technology for long term average returns and the 95 th and 5th percentile returns based on 15 year rolling periods. In other words 90% of the time it would be expected that actual returns would remain between th e upper and lower boundaries. The returns do not allow for inflation but do make an allowance for charges. The portfolio returns are net of internal charg es but may not allow for managers’ charges, ADVISOR fees or platform fees.

-10%

-5%

0%

5%

10%

15%

20%


EXPECTED LTAVERAGE

LIBERATION IV

EXPECTED MAX

EXPECTED MIN

-10%

-5%

0%

5%

10%

15%

20%


EXPECTED LTAVERAGE

7IM MC AAP

EXPECTED MAX

EXPECTED MIN

-10%

-5%

0%

5%

10%

15%

20%


EXPECTED LTAVERAGE

ADVISOR LMG(LION/OMW)

EXPECTED MAX

EXPECTED MIN

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-10%

-5%

0%

5%

10%

15%

20%


EXPECTED LTAVERAGE

ADVISOR LMG(CLOSE)

EXPECTED MAX

EXPECTED MIN

-10%

-5%

0%

5%

10%

15%

20%


EXPECTED LTAVERAGE

VANGUARD 40%EQUITY

EXPECTED MAX

EXPECTED MIN

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1 YEAR

3 YEARS

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

LIBERATION IV

7IM MOD CAUTIOUS

ADVISOR LMRG

(LION/OMW)

VANGUARD 40%

EQUITY

ADVISOR LMRG

(CLOSE)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

LIBERATION IV

7IM MOD CAUTIOUS

ADVISOR LMRG

(LION/OMW)

VANGUARD 40%

EQUITY

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ADVISOR CATEGORY: LOW MEDIUM RISK

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STRATEGIES AVAILABLE Launch Date Premier Liberation V Class C Shares 10 November 2010

7 IM AAP Balanced S Shares 27 March 2008 ADVISOR Low Medium Risk Growth (LMG) Managed by Liontrust/OMW 30 June 2011

ADVISOR Low Medium Risk Growth (LMG) Managed by Close/Nucleus 30 June 2013 Vanguard 60% Equity 23 June 2011

Bespoke Service N/A

CHARGES A summary of the total charges applying to each portfolio is set out below.


LIBERATION V 1.44% 0.35% N/A 1.79%

7 IM BALANCED 0.42% 0.25% N/A 0.67%

ADVISOR LMG (Liontrtust) ̂ 0.20%-0.50% 0.76% 0.96%-1.26%

ADVISOR LMG (Close) ̂ 0.35% 0.77% 1.12%





ASSET ALLOCATION AND TARGET VOLATILITY - Distribution Technology Strategic Asset Allocation from 1 October 2015 (Different AA has applied previously and all changes are taken into account in the data provided):-


UK GILTS 5% US EQUITIES 14%

UK CORPORATE BONDS 24% JAPAN EQUITIES 5%

GLOBAL HY BONDS 6% PACIFIC (Ex Japan) 6%

UK EQUITIES 28% UK PROPERTY 7%

EUROPE EQUITIES 5%


TARGET VOLATILITY LOWER BOUNDARY UPPER BOUNDRY

9.4% 8.4% 10.5%

Note: The lower boundary is soft – ie in times of low volatility we do not expect managers to chase volatility in

the expectation of higher returns. The upper boundary is regarded as hard – ie we expect this not to be breached.

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VOLATILITY & PERFORMANCE MEASURES FOR PERIOD TO 31 March 2016 Volatility is measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year data. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 ye ar data will be

considered by the Investment Committee overseeing the process. Performance is also measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year figures. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 year data

will be considered by the Investment Committee overseeing the process.


MAXIMUM DRAWDOWN

WITHIN TARGET

VOLATILITY




INTERNAL SCORE

LIBERATION V





7IM BALANCED AAP





ADVISOR LOW MEDIUM RISK GROWTH (LIONTRUST/OMW)

1 Year 7.48% 7.04% BELOW -2.19% -2.19% BELOW 2.00




ADVISOR LOW MEDIUM RISK GRWOTH (CLOSE)

1 Year 7.97% 6.30% BELOW 0.23% 0.23% ABOVE 4.25




VANGUARD 60% EQUITY

1 Year 7.37% 6.51% BELOW 0.11% 0.11% ABOVE 4.25




BENCHMARKS

DT SAA (INDICES)

1 Year 8.06% 7.40% BELOW -0.75% -0.75% 2 Years 6.97% 7.40% BELOW 13.28% 6.43%

3 Years 7.20% 7.40% BELOW 18.28% 5.76%

5 Years 7.79% 10.34% BELOW 37.47% 6.57%

DT SAA (SECTORS)

1 Year 8.01% 7.36% BELOW -1.30% -1.30%

2 Years 6.74% 7.36% BELOW 11.15% 5.43% 3 Years 6.96% 7.36% BELOW 17.37% 5.48%

5 Years 8.03% 10.30% BELOW 35.36% 6.24%

RISK FREE RETURN


3 Years N/A N/A N/A 2.30% 0.76% 5 Years N/A N/A N/A 4.79% 0.94%


23 | P a g e

RISK ADJUSTED PERFORMANCE FOR PERIOD TO 31 March 2016 (SHARPE RATIO) The following chart shows the annualised returns achieved for each unit of risk (annualised volatility/standard deviation) by each strategy after deducting the risk free rate – a negative ratio shows that the investor would have been better leaving funds on deposit and not taking the investment risk making the ratio meaningless and therefore is rebalanced to zero. A positive ratio shows the investm ent has added to returns for the risk taken. The higher the ratio the better the manager has performed for the risk taken – either has produced higher returns for the same risk or has produced similar returns for less risk.


MAXIMUM DRAWDOWN

The following chart shows the maximum drawdown suffered by the portfolios within the periods shown. This represents the worst possible return over a period — for example, buying at the maximum price over the period and selling at the worst price, based on monthly valuations.


-0.10%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION V

7IM BAL AAP



VANGUARD 60% EQUITY

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION V

7IM BAL AAP



VANGUARD 60% EQUITY

24 | P a g e

ACTUAL RETURNS RELATIVE TO EXPECTATIONS The following charts show how each portfolio has performed based on annualised returns, relative to the expected long term av erage, and the expected upper and lower boundaries, over the past 1 to 5 years. The expected average and upper and lower boundaries are based on data provided by Distribution Technology for long term average returns and the 95 th and 5th percentile returns based on 15 year rolling periods. In other words 90% of the time it would be expected that actual returns would remain between the upper and lower bo undaries. The returns do not allow for inflation but do make an allowance for charges. The portfolio returns are net of internal charges but may not allow for managers’ charges, ADVISOR fees or platform fees.

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%


EXPECTED LTAVERAGE

LIBERATION V

EXPECTED MAX

EXPECTED MIN

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%


EXPECTED LTAVERAGE

7IM BAL AAP

EXPECTED MAX

EXPECTED MIN

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%


EXPECTED LTAVERAGE

ADVISOR LMG(LION/OMW)

EXPECTED MAX

EXPECTED MIN

25 | P a g e


-15%

-10%

-5%

0%

5%

10%

15%

20%

25%


EXPECTED LTAVERAGE

ADVISOR LMG(CLOSE)

EXPECTED MAX

EXPECTED MIN

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%


EXPECTED LTAVERAGE

VANGUARD 60%EQUITY

EXPECTED MAX

EXPECTED MIN

26 | P a g e


1 YEAR

3 YEARS

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Q4 2015 Q1 2016

LIBERATION V

7IM BALANCED

ADVISOR LMRG

(LION/OMW)

VANGUARD 60%

EQUITY

ADVISOR LMRG

(CLOSE)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

LIBERATION V

7IM BALANCED

ADVISOR LMRG

(LION/OMW)

VANGUARD 60%

EQUITY

27 | P a g e


ADVISOR CATEGORY: HIGH MEDIUM RISK

28 | P a g e


Premier Liberation VI Class C Shares 10 November 2010 7 IM AAP Moderately Adventurous Class S Shares 27 March 2008

ADVISOR High Medium Risk Growth Managed by Liontrust/OMW 30 June 2011 ADVISOR High Medium Risk Growth Managed by Close/Nucleus 30 June 2013

Vanguard 80% Equity 23 June 2011 Bespoke Service N/A



LIBERATION VI 1.43% 0.35% N/A 1.78%

7 IM AAP MOD ADV 0.41% 0.25% N/A 0.66%

ADVISOR HMG (Liontrust) ̂ 0.20%-0.50% 0.80% 1.00%-1.30%

ADVISOR HMG (Close) ̂ 0.35% 0.80% 1.15%





ASSET ALLOCATION AND TARGET VOLATILITY - Distribution Technology Strategic Asset Allocation from 1 October 2015 (Different AA has applied previously and all changes are taken into account in the data provided):


UK CORPORATE BONDS 19% JAPAN EQUITIES 5%

GLOBAL HY BONDS 5% PACIFIC (Ex Japan) 10%

UK EQUITIES 31% EMERGING MKTS 11%

EUROPE EQUITIES 5% UK PROPERTY 5%

US EQUITIES 9%



11.7% 10.5% 12.6%


29 | P a g e

VOLATILITY & PERFORMANCE MEASURES FOR PERIOD TO 31 March 2016

Volatility is measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year data. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 year data will be considered by the Investment Committee overseeing the process.

Performance is also measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year figures. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 year data

will be considered by the Investment Committee overseeing the process.


MAXIMUM DRAWDOWN

WITHIN TARGET

VOLATILITY




INTERNAL SCORE

LIBERATION VI

1 Year 10.62% 9.93% WITHIN -2.16% -2.16% ABOVE 3.25




7IM MODERATELY ADVENTUROUS AAP





ADVISOR HIGH

MEDIUM RISK GROWTH

(LIONTRUST/OMW)

1 Year 8.56% 7.72% BELOW -1.85% -1.85% ABOVE 4.25




ADVISOR HIGH MEDIUM RISK GRWOTH (CLOSE)

1 Year 9.40% 8.31% BELOW -1.92% -1.92% ABOVE 3.75




VANGUARD 80%

EQUITY

1 Year 9.38% 8.64% BELOW -0.73% -0.73% ABOVE 4.00




BENCHMARKS

DT SAA (INDICES)

1 Year 9.29% 9.52% BELOW -2.28% -2.28%

2 Years 7.85% 9.52% BELOW 11.86% 5.76%

3 Years 8.19% 9.52% BELOW 16.42% 5.20%

5 Years 8.96% 12.20% BELOW 35.46% 6.26%

DT SAA (SECTORS)

1 Year 9.35% 9.37% BELOW -2.52% -2.52%

2 Years 7.68% 9.37% BELOW 9.80% 4.79%

3 Years 8.03% 9.37% BELOW 16.04% 5.08%

5 Years 9.37% 12.29% BELOW 34.25% 6.07%

RISK FREE RETURN

1 Year N/A N/A N/A 0.76% 0.76%

2 Years N/A N/A N/A 1.49% 0.74%

3 Years N/A N/A N/A 2.30% 0.76%

5 Years N/A N/A N/A 4.79% 0.94%


30 | P a g e



MAXIMUM DRAWDOWN



-0.10%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION VI

7IM MA AAP

ADVISOR HM GTH (CLOSE)

ADVISOR HMG (LION/OMW)

VANGUARD 80% EQUITY

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION VI

7IM MA AAP

ADVISOR HM GTH (CLOSE)

ADVISOR HMG (LION/OMW)

VANGUARD 80% EQUITY

31 | P a g e

ACTUAL RETURNS RELATIVE TO EXPECTATIONS The following charts show how each portfolio has performed based on annualised returns, relative to the expected long term av erage, and the expected upper and lower boundaries, over the past 1 to 5 years. The expected average and upper and lower boundaries are based on data provided by Distribution Technology for long term average returns and the 95 th and 5th percentile returns based on 15 year rolling periods. In other words 90% of the time it would be expected that actual returns would remain between th e upper and lower boundaries. The returns do not allow for inflation but do make an allowance for charges. The portfolio returns are net of internal charg es but may not allow for managers’ charges, ADVISOR fees or platform fees.

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%


EXPECTED LTAVERAGE

LIBERATION VI

EXPECTED MAX

EXPECTED MIN

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%


EXPECTED LTAVERAGE

7IM MA AAP

EXPECTED MAX

EXPECTED MIN

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%


EXPECTED LTAVERAGE

ADVISOR HMG(LION/OMW)

EXPECTED MAX

EXPECTED MIN

32 | P a g e


-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%


EXPECTED LTAVERAGE

ADVISOR HMG(CLOSE)

EXPECTED MAX

EXPECTED MIN

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%


EXPECTED LTAVERAGE

VANGUARD 80%EQUITY

EXPECTED MAX

EXPECTED MIN

33 | P a g e


1 YEAR

3 YEARS

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

LIBERATION VI

7IM MOD ADV

ADVISOR HMRG

(LION/OMW)

VANGUARD 80%

EQUITY

ADVISOR HMRG

(CLOSE)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

LIBERATION VI

7IM MOD ADV

ADVISOR HMRG

(LION/OMW)

VANGUARD 80%

EQUITY

34 | P a g e


ADVISOR CATEGORY: HIGHEST MEDIUM RISK

35 | P a g e


Premier Liberation VII Class C Shares 10 November 2010 7 IM AAP Adventurous Class S Shares 27 March 2008

ADVISOR Highest Medium Risk Growth Managed by Liontrust/OMW 30 June 2011 ADVISOR Highest Medium Risk Growth (Close) 30 June 2013

Vanguard 100% Equity 23 June 2011 Bespoke Service N/A



LIBERATION VII 1.74% 0.35% N/A 2.09%

7 IM AAP ADV 0.39% 0.25% N/A 0.64%

ADVISOR HMG (Liontrust) ̂ 0.20%-0.50% 0.82% 1.02%-1.32%

ADVISOR HMG (Close) ̂ 0.35% 0.81% 1.16%



*The platform charge is based on the internal platform or the typical charge for using the platform. **The total charge excludes ADVISOR charges and any additional product charges such as SIPPs and Bonds. ^The manager fees for ADVISOR Portfolios managed by Close are paid by the ADVISOR from the ADVISOR Fee.

^The manager fees for ADVISOR Portfolios managed by Liontrust are paid by the ADVISOR from the ADVISOR Fee.

ASSET ALLOCATION AND TARGET VOLATILITY - Distribution Technology Strategic Asset Allocation from 1

October 2015 (Different AA has applied previously and all changes are taken into account in the data provided):





UK CORPORATE BONDS 5% JAPANESE EQUITIES 5% GLOBAL HY BONDS 5% PACIFIC (Ex-Japan) EQUITIES 16%

UK EQUITIES 35% EMERGING MARKET EQUITIES 17%

EUROPEAN EQUITIES 5% UK PROPERTY 5%

US EQUITIES 7%

36 | P a g e



Performance is also measured on 1, 2, 3 and 5 year rolling periods with greatest weight placed on the 3 year figures. However, the various strategies do not all have a 3 year track record to date so 1 year or 2 year data will be considered by the Investment Committee overseeing the process.


MAXIMUM DRAWDOWN

WITHIN TARGET

VOLATILITY




INTERNAL SCORE

LIBERATION VII

1 Year 12.22% 11.98% BELOW -3.42% -3.42% BELOW 2.75




7IM ADVENTUROUS AAP





ADVISOR HIGHEST MEDIUM RISK GROWTH (LIONTRUST/OMW)

1 Year 9.84% 8.92% BELOW -1.74% -1.74% ABOVE 4.25




ADVISOR HIGHEST MEDIUM RISK GRWOTH (CLOSE)

1 Year 10.58% 9.59% BELOW -2.49% -2.49% ABOVE 4.25




VANGUARD 100% EQUITY

1 Year 11.51% 10.77% BELOW -1.60% -1.60% ABOVE 4.00




BENCHMARKS

DT SAA (INDICES)

1 Year 10.82% 11.73% BELOW -3.57% -3.57%

2 Years 9.03% 11.73% BELOW 9.08% 4.44%

3 Years 9.30% 11.73% BELOW 13.27% 4.24%

5 Years 10.15% 13.93% BELOW 30.64% 5.49%

DT SAA (SECTORS)

1 Year 10.92% 11.39% BELOW -3.39% -3.39%

2 Years 8.88% 11.39% BELOW 7.87% 3.86%

3 Years 9.20% 11.39% BELOW 14.14% 4.51%

5 Years 10.65% 14.06% BELOW 31.52% 5.63%

RISK FREE RETURN

1 Year N/A N/A N/A 0.76% 0.76%

2 Years N/A N/A N/A 1.49% 0.74%

3 Years N/A N/A N/A 2.30% 0.76%

5 Years N/A N/A N/A 4.79% 0.94%


37 | P a g e



MAXIMUM DRAWDOWN The following chart shows the maximum drawdown suffered by the portfolios within the periods shown. This represents the worst

possible return over a period — for example, buying at the maximum price over the period and selling at the worst price, based on monthly valuations.


-0.10%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION VII

7IM ADV AAP

ADVISOR H M GTH (CLOSE)

ADVISOR HMG

(LIONTRUST/OMW)


-18.00%

-16.00%

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%


DT SAA (SECTORS)

DT SAA (INDICES)

LIBERATION VII

7IM ADV AAP

ADVISOR H M GTH (CLOSE)

ADVISOR HMG

(LIONTRUST/OMW)


38 | P a g e


-20%

-10%

0%

10%

20%

30%

40%


EXPECTED LTAVERAGE

LIBERATION VII

EXPECTED MAX

EXPECTED MIN

-20%

-10%

0%

10%

20%

30%

40%


EXPECTED LTAVERAGE

7IM ADV AAP

EXPECTED MAX

EXPECTED MIN

-20%

-10%

0%

10%

20%

30%

40%


EXPECTED LTAVERAGE

ADVISOR HMG(LION/OMW)

EXPECTED MAX

EXPECTED MIN

39 | P a g e


-20%

-10%

0%

10%

20%

30%

40%


EXPECTED LTAVERAGE

ADVISOR HMG(CLOSE)

EXPECTED MAX

EXPECTED MIN

-20%

-10%

0%

10%

20%

30%

40%


EXPECTED LTAVERAGE

VANGUARD 100%EQUITY

EXPECTED MAX

EXPECTED MIN

40 | P a g e


1 YEAR

3 YEARS

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

LIBERATION VII

7IM ADVENTUROUS

ADVISOR HMRG

(LION/OMW)

VANGUARD 100%

EQUITY

ADVISOR HMRG

(CLOSE)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

LIBERATION VII

7IM ADVENTUROUS

ADVISOR HMRG

(LION/OMW)

VANGUARD 100%

EQUITY

41 | P a g e


ADVISOR CATEGORY: HIGH RISK

42 | P a g e

STRATEGIES AVAILABLE

Launch Date ADVISOR High Risk Growth (Close) 30 June 2013

Bespoke Service N/A



ADVISOR HRG (Close) ̂ 0.35% 0.90% 1.25%


*The platform charge is based on the internal platform or the typical charge for using Nucleus. **The total charge excludes ADVISOR charges and any additional product charges such as SIPPs and Bonds. ^The manager fees for ADVISOR Portfolios managed by Close are paid by the ADVISOR from the ADVISOR Fee.

ASSET ALLOCATION AND TARGET VOLATILITY

Distribution Technology Strategic Asset Allocation - Distribution Technology Strategic Asset

Allocation from 1 October 2015 (Different AA has applied previously and all changes are taken into account in

the data provided):

DISTRIBUTION TECHNOLOGY TARGET ANNUALISED VOLATILITY FROM 1 October 2015


15.4% 14.7% 16.8% Note: The lower boundary is soft – ie in times of low volatility we do not expect managers to chase volatility in the expectation of higher

returns. The upper boundary is regarded as hard – ie we expect this not to be breached.

ASSET CLASS ALLOCATION

GLOBAL HY BONDS 5%

UK EQUITIES 23%

EUROPEAN EQUITIES 5%

US EQUITIES 5%

JAPANESE EQUITIES 5%

PACIFIC (Ex-Japan) EQUITIES 22%

EMERGING MARKET EQUITIES 30%

UK POPERTY 5%

43 | P a g e




STRATEGY ANNUALISED

VOLATILITY

MAXIMUM

DRAWDOWN

WITHIN TARGET

VOLATILITY

CUMULATIVE

PERFORMANCE

ANNUALISED

PERFORMANCE

ABOVE/BELOW

BENCHMARK

INTERNAL

SCORE

ADVISOR HIGH RISK GROWTH (CLOSE)

1 Year 11.37% 11.03% BELOW -3.57% -3.57% ABOVE 3.75




BENCHMARKS

DT SAA (INDICES)

1 Year 12.53% 14.65% BELOW -4.77% -4.77%

2 Years 10.34% 14.65% BELOW 7.98% 3.91%

3 Years 10.31% 14.65% BELOW 8.43% 2.73%

5 Years 11.29% 15.21% BELOW 21.80% 4.02%

DT SAA (SECTORS)

1 Year 12.38% 13.60% BELOW -4.42% -4.42%

2 Years 10.01% 13.60% BELOW 6.73% 3.31%

3 Years 10.21% 13.60% BELOW 8.79% 2.85%

5 Years 11.76% 15.44% BELOW 22.78% 4.19%

RISK FREE RETURN

1 Year N/A N/A N/A 0.76% 0.76%

2 Years N/A N/A N/A 1.49% 0.74%

3 Years N/A N/A N/A 2.30% 0.76%

5 Years N/A N/A N/A 4.79% 0.94%

Source: Financial Express Ltd/Professional Fund Maintenance Ltd/Close AM/2016 RISK ADJUSTED PERFORMANCE FOR PERIOD TO 31 March 2016 (SHARPE RATIO) The following chart shows the annualised returns achieved for each unit of risk (annualised volatility/standard deviation) by each strategy after deducting the risk free rate – a negative ratio shows that the investor would have been better leaving funds on deposit and not taking the investment risk making the ratio meaningless and therefore is rebalanced to zero. A positive ratio shows the investment has added to returns for the risk taken. The higher the ratio the better the manager has performed for the risk taken – either has produced higher returns for the same risk or has produced similar returns for less risk.

Source: Financial Express Ltd/Professional Fund Maintenance Ltd/Close AM/2016

-0.05%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%


DT SAA (SECTORS)

DT SAA (INDICES)

ADVISOR HIGH RISK GTH

(CLOSE)

44 | P a g e

MAXIMUM DRAWDOWN The following chart shows the maximum drawdown suffered by the portfolios within the periods shown. This represents the worst possible return over a period — for example, buying at the maximum price over the period and selling at the worst price, based on monthly valuations.




-16.00%

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%


DT SAA (SECTORS)

DT SAA (INDICES)

ADVISOR HIGH RISK GTH

(CLOSE)

-30%

-20%

-10%

0%

10%

20%

30%

40%


EXPECTED LTAVERAGE

ADVISOR HRG(CLOSE)

EXPECTED MAX

EXPECTED MIN

45 | P a g e


1 YEAR

3 YEARS

3 year record not yet available

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q4 2015 Q1 2016

ADVISOR HRG (CLOSE)

46 | P a g e

RESEARCHED INCOME FUNDS

ADVISOR CATEGORY: NOT RISK TARGETED

47 | P a g e

BACKGROUND

As part of the research carried out for ADVISOR a range of income funds have been selected for those clients requiring a natural income facility. These are not risk targeted but performance and volatility is measured against peer groups to ensure they continue to provide suitable investments for clients. FUND LAUNCH DATE IA SECTOR OCF

CF MITON UK MULTI-CAP INCOME 14/10/2011 UK EQUITY INCOME 0.82%

CF WOODFORD EQUITY INCOME 02/06/2014 UK EQUITY INCOME 0.75%

THREADNEEDLE UK EQUITY ALPHA INCOME 08/05/2006 UK EQUITY INCOME 0.88%

FIDELITY GLOBAL DIVIDENED FUND 30/01/2012 GLOBAL EQUITY INCOME 0.97%

NEWTON GLOBAL INCOME 30/11/2005 GLOBAL EQUITY INCOME 0.79%




STRATEGY ANNUALISED

VOLATILITY

MAXIMUM

DRAWDOWN

ABOVE/BELOW BM

VOLATILITY

CUMULATIVE

PERFORMANCE

ANNUALISED

PERFORMANCE

ABOVE/BELOW

BENCHMARK

CF MITON UK MULTI-

CAP INCOME

1 Year 5.85% 2.89% BELOW 12.54% 12.54% ABOVE




CF WOODFORD EQUITY INCOME

1 Year 11.58% 6.45% ABOVE 2.62% 2.62% ABOVE




THREADNEEDLE UK

EQUITY ALPHA INCOME

1 Year 10.93% 9.23% ABOVE -2.39% -2.39% ABOVE

2 Years 9.76% 9.23% ABOVE 8.72% 4.27% ABOVE



FIDELITY GLOBAL DIVIDENED FUND

1 Year 11.71% 7.65% BELOW 6.05% 6.05% ABOVE




NEWTON GLOBAL INCOME

1 Year 13.32% 6.97% ABOVE 11.85% 11.85% ABOVE




BENCHMARKS

UK EQUITY INCOME

1 Year 10.56% 9.71% N/A -2.81% -2.81%

2 Years 8.60% 9.71% N/A 5.70% 2.81%

3 Years 9.44% 9.71% N/A 20.08% 6.29%

5 Years 10.25% 11.82% N/A 44.92% 7.70%

GLOBAL EQUITY

INCOME

1 Year 11.82% 10.69% N/A -1.14% -1.14%

2 Years 9.17% 10.69% N/A 11.72% 5.70%

3 Years 9.46% 10.69% N/A 20.91% 6.53%

5 Years 10.19% 11.36% N/A 45.07% 7.72% Source: Financial Express Ltd/Professional Fund Maintenance Ltd/2016

The following charts show the funds’ performance and volatility against the various ADVISOR risk targeted

benchmarks over the past 3 years and also 1 year as the CF Woodford Fund only has a track record from 02/06/2014.

48 | P a g e

1 YEAR

Key Name Performance Annualised Volatility

A CF - Miton UK Multi Cap Income B Inst Inc TR in GB 12.54 5.85

B Newton - Global Income W Inc GBP TR in GB 11.85 13.32

C Fidelity - Global Dividend W Inc TR in GB 6.05 11.71

D CF - Woodford Equity Income C Inc TR in GB 2.62 11.58


F ADVISOR RISK 4 MARKETS TR in GB -0.02 6.46

G ADVISOR RISK 5 MARKETS TR in GB -0.75 8.06

H ADVISOR RISK 6 MARKETS TR in GB -2.28 9.29

I Threadneedle - UK Equity Alpha Income Z Inc GBP TR in GB -2.39 10.93

J ADVISOR RISK 7 MARKETS TR in GB -3.57 10.82

K ADVISOR RISK 8 MARKETS TR in GB -4.77 12.53

3 YEARS

Key Name Performance Annualised Volatility

A CF - Miton UK Multi Cap Income B Inst Inc TR in GB 58.50 6.73

B Fidelity - Global Dividend W Inc TR in GB 37.85 9.05

C Newton - Global Income W Inc GBP TR in GB 33.20 9.94

D Threadneedle - UK Equity Alpha Income Z Inc GBP TR in GB 30.44 10.66


F ADVISOR RISK 5 MARKETS TR in GB 18.23 7.20

G ADVISOR RISK 6 MARKETS TR in GB 16.42 8.19

H ADVISOR RISK 3 MARKETS TR in GB 15.70 5.20

I ADVISOR RISK 7 MARKETS TR in GB 13.27 9.30

J ADVISOR RISK 8 MARKETS TR in GB 8.43 10.31

Source: Financial Express Ltd/Professional Fund Maintenance Ltd/2016

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RISK ADJUSTED PERFORMANCE FOR PERIOD TO 31 March 2016 (SHARPE RATIO) The following chart shows the total annualised returns achieved for each unit of risk (annualised volatility/standard deviation) by each fund after deducting the risk free rate – a negative ratio shows that the investor would have been better leaving funds on deposit and not taking the investment risk making the ratio meaningless and therefore is rebalanced to zero. A positive ratio shows the investment has added to returns for the risk taken. The higher the ratio the better the manager has performed for the risk taken – either has produced higher returns for the same risk or has produced similar returns for less risk.


MAXIMUM DRAWDOWN



-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%


GLOBAL EQUITY INCOME

UK EQUITY INCOME

CF MITON UK MULTI-CAPINCOME


THREADNEEDLE UK EQUITYALPHA INCOME

FIDELITY GLOBAL DIVIDENEDFUND


-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%


GLOBAL EQUITY INCOME

UK EQUITY INCOME

CF MITON UK MULTI-CAPINCOME


THREADNEEDLE UK EQUITYALPHA INCOME

FIDELITY GLOBAL DIVIDENEDFUND


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SUMMARY OF RESULTS

Portfolios have remained below or within volatility ranges. Portfolios are all within expected performance ranges.

Significant increase in volatility has helped passives in the short term as stock-picking more difficult.

RISK 3

All portfolios have underperformed BMs except the 1 year period for Close. This shows difficulty in beating BMs with high FI content due to charges.

Premier and Vanguard best risk adjusted over 3 years, Close over 1 year.

7IM poorest RA and DD due to TAA decision to hold higher equity content. RISK 4

Performance largely below BMs again due to high FI content. Vanguard has best RA over 1 & 2 years with Liberation IV over 3 years+ Close best rating over 1 year and Premier & Vanguard over 3 years.

7IM poorest RA performance.

RISK 5

As Equity content increases more above BM performance. Vanguard best RA over 2 & 3 years – all look acceptable, ex-7IM. Close & Vanguard ratings excellent over 1 year. All look acceptable over 1 & 3 years ex-7IM.

RISK 6

Much more above BM performance.

Best RA Vanguard & Liontust, who along with Close also have excellent ratings. 7IM again poor over all periods.

RISK 7

Largely above BM performance. Best RA Vanguard & Liontust, who along with Close also have excellent ratings. 7IM again poor over 1 year but acceptable over 3 years.

RISK 8

Only 1 solution at this risk level – good RA and ratings. INCOME FUNDS

All funds have shown above BM performance both absolute and RA.

advisor report q1 2016

Documents