model portfolio service - albertesharp.com the albert e sharp model 1-2 portfolio gained 6.1% in q2...

Commentary To June 30th 2020

The Albert E Sharp Model 1-2 portfolio gained 6.1% in Q2 of 2020 against the benchmark 3 month LIBOR return of 0.1%. Over five years, the strategy is up 6.6% compared to the benchmark’s 3.0%.Following a painful first quarter of the year for credit markets the asset class rallied through Q2 as credit spreads narrowed, partly on the back of significant injections of liquidity from central banks. Royal London Global Bond Opportunities and Baillie Gifford Strategic Bond topped Q2 attribution with 12.2% and 11.1% respectively. Schroder Strategic Credit was the only other fund to finish with a double digit return, up 10.0% in Q2.

Our sterling credit holdings weren’t far behind counterparts in the strategic bond sector. Morgan Stanley Sterling Corporate Bond led the pack with a Q2 return of 8.7%, followed closely by PIMCO UK Corporate Bond’s 7.1%. The more defensive Royal London Short Duration Credit posted 4.3% over the same period. We did top up some of the above positions in the quarter, however with sterling investment grade spreads having narrowed significantly, there looks to be more value available outside the UK at present.

In the absolute return space, Smith & Williamson Defensive Growth rebounded strongly from what whas a diasppointing first quarter to finish Q2 up 11.9%. Blackrock European Absolute Alpha and Henderson UK Absolute Return were also positive contributors with Q2 returns of 3.3% and 1.7% respectively. In a time where the value of hedge funds are being scrutinised, the previously mentioned Blackrock fund has proven a star performer, up 7.7% in 2020 so far; We argue this as further proof that a robust fund selection process pays dividends in times of market turmoil.

Portfolio Changes

No new additions were made to the portfolio during the quarter. Where able we reinvested the cash position which resulted from the Kames Property Income sale across the incumbent strategic bond holdings. With credit spreads having widened significantly during Q1, we saw it as an attractive opportunity to reallocate cash in order to take advantage of more attractive valuations within credit.

Investment Objective

To achieve a return in excess of that received from a savings account over a rolling three year period. Downside protection is derived from diversification into fixed-income and absolute return funds.

This strategy is suitable for investors with the ‘very lowest’ rating of willingness to accept risk, according to Dynamic Planner®.

Portfolio Performance *

Albert E Sharp, 7 Elm Court, Arden Street, CV37 6PA

www.albertesharp.com 01789 404000 [email protected]

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AES 1-2 (Net) 3 Month LIBOR

Fixed-Income, 60%

Absolute Return, 38%

Cash, 2%

Platform Availability

Model Portfolio Service

Risk Rating 1-2/10

Q2 2020



Cumulative Performance * Risk & Return Analysis *

Capacity For Loss Analysis

Portfolio Statistics

AES Management Fees (p.a.) 0.5% + VAT

Custody Fees (p.a.) Variable Across Platforms

Estimated Portfolio Yield (p.a.) 2.48%

Portfolio OCF (p.a.) 0.63%

Minimum Investment £10,000

Strategy Launch Date 31st Dec 2010

Mapping & Benchmarks WMA ConservativeARC Sterling Cautious Asset PCI

IA Mixed Investment 0-35%eValue FE 1

Sterling 3-month LIBOR

Current Portfolio

The views expressed in this report are not intended as an offer or solicitation for the purchase or sale of any investment or financial instrument. The views reflect the views of Albert E Sharp at the date of this document and, whilst the opinions stated are honestly held, they are not guarantees and should not be relied upon and may be subject to change without notice. Investments entail risks. Past performance is not necessarily a guide to future performance. There is no guarantee that you will recover the amount of your original investment. The information contained in this document does not constitute investment advice and should not be used as the basis of any investment decision. Any references to specific securities or indices are included for the purposes of illustration only and should not be construed as a recommendation to either buy or sell these securities, or invest in a particular sector. If you are in any doubt, please speak to us or your financial adviser as appropriate.

Issued by Albert E Sharp, a trading name of Albert E Sharp LLP which is authorised and regulated by the Financial Conduct Authority. © Albert E Sharp LLP 2020. Registered in England & Wales with the partnership number OC339858.

1.2%

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AES 1-2 3 Month LIBORAES 1-2

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3 Year Volatility

+5.2%

+20.1%

+42.9%

+55.8%

+113.3%

-3.9% -1.0% +9.1% +19.1% +60.2%

+0.5%+6.6%

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1m 12m 3y 5y 10y

AES 1-2 Return Profile: 31 Dec 1997 - 30 June 2020

Best Return Worst Return Average Return

Sector Fund Name WeightUK Corp Bonds RLAM Short Duration Credit 9.0%

MS Sterling Corporate Bond 7.0%PIMCO GIS UK Corp Bond 7.0%

UK Corp Bonds Total 23.0%Strategic Bonds Baillie Gifford Strategic Bond 9.5%

RLAM Global Bond Opps 9.5%Schroder Strat Credit Fund 9.0%Artemis Strat Bond 9.0%

Strategic Bonds Total 37.0%Equity L/S (AR) Artemis US Abs Ret 8.0%

BlackRock Euro Abs Alpha 8.0%Henderson UK Abs Ret 7.0%

Equity L/S (AR) Total 23.0%Specialist (A/R) Muzinich Global Tactical Credit 8.0%

S&W Defensive Growth 7.0%Specialist (A/R) Total 15.0%Cash Cash 2.0%Cash Total 2.0%Grand Total 100.0%

Capacity for Loss shows backtested performance of the current asset allocation dating back to 1997 in order to cover several market cycles. Incumbent assets are assigned to benchmark indices for performance purposes and rebalanced monthly. Figures are gross of all fees and do not represent actual performance associated with the AES MPS offering; data is intended to be used as an assistance guide in the risk assessment process.


Risk Rating 1-2/10

Q2 2020

* Performance is calculated net of fund OCFs and assumes Albert E Sharp fees of 0.60% p.a. charged monthly


The Albert E Sharp Model 2 portfolio gained 8.5% in Q2 of 2020 against the ARC Cautious Index’s 6.0%*. Over five years, the strategy is up 12.7% compared to the index’s 13.5%.

Following the sharp sell-off of Q1, risk assets rebounded in the second quarter. US equities have definitely been the place to be in 2020 as the tech heavy NASDAQ shows a near 20% return YTD in sterling terms. Ninety One American Franchise finished Q2 slightly ahead of the S&P-500 benchmark with 17.7%. In the smaller company space, Artemis US Smaller Companies gained 26.8% in Q2 against the benchmark Russell 2000’s 25.6%.

Hideo Shiozumi failed to get the memo that US equities were the place to be as his Legg Mason Japan Equity rose 29.0% in the quarter to finish with a 4.1% return YTD. Having bought the hedged share class, there was no help from currency fluctuations in these figures. In contrast, our unhedged position in Lindsell Train Japan added just 10.8% for the quarter in the face of currency headwinds, but finished with an 8.6% return since being added to the portfolio in February.

Perhaps a surprise to some, one of the top performing holdings came from continental Europe, confirming the Man GLG Continental European Growth manager’s view to “invest in Europe for the companies, not the economies”. In Q2, the fund rose 22.6% and is up 7.7% since being added to the portfolio in late February.

Looking to the Far East, both Asia Pacific and EM funds produced returns in excess of 20% in the quarter. Schroder Asian Alpha Plus led the way with 23.1% while Fidelity Emerging Markets Focus finished up 20.4% in Q2.

Credit rallied across the board having experienced a painful first quarter at the hands of significant spread widening and illiquidity. Royal London Global Bond Opportunities and Baillie Gifford Strategic Bond topped Q2 attribution with 12.2% and 11.1% respectively. Schroder Strategic Credit was the only other fund to finish with a double digit return, up 10.0% in Q2.

Portfolio Changes

No new additions were made to the portfolio during the quarter. Where able we reinvested the cash position which resulted from the Kames Property Income sale across the incumbent strategic bond holdings. With credit spreads having widened significantly during Q1, we saw it as an attractive opportunity to reallocate cash in order to take advantage of more attractive valuations within credit.*ARC performance numbers are provisional estimates, based upon a sample of ETFs. This is subject to revision based on actual performance of ARC contributors.


To achieve a moderate level of total return. Up to 20% of the portfolio may be invested in UK and international equities, downside protection is derived from diversification into fixed-income and absolute return funds.

This strategy is suitable for investors with a ‘very low’ rating of willingness to accept risk, according to Dynamic Planner®.




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AES 2 (Net) ARC Cautious Equity, 17%

Fixed-Income, 53%


Cash, 2%



Risk Rating 2/10

Q2 2020










Mapping & Benchmarks

WMA ConservativeARC Sterling Cautious Asset PCI


Defaqto 2Dynamic Planner 2

Current Portfolio

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AES 2 ARC CautiousAES 1-2

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3 Year Volatility

4.2%

18.7%

42.9%

53.8%

106.9%

-5.0% -7.1%2.3% 19.0% 62.7%

0.5%6.5%

19.6%

33.8%

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1m 12m 3y 5y 10y

AES 2 Return Profile: 31 Dec 1997 - 30 June 2020


Sector Fund Name WeightUK Equity LF Lindsell Train UK Equity 2.0%

CFP SDL UK Buffettology 2.0%UK Equity Total 4.0%US Equity HSBC American Index 3.5%

Ninety One American Franchise 2.5%Artemis US Smaller Cos 1.5%

US Equity Total 7.5%Europe ex-UK Equity Man GLG Continental Europe 1.5%Europe ex-UK Equity Total 1.5%Japan Equity Lindsell Train Japan 1.0%

Legg Mason Japan Equity (Hdg) 1.0%Japan Equity Total 2.0%Asia Pac ex-Jpn Equity Schroder Asia Alpha Plus 1.0%Asia Pac ex-Jpn Equity Total 1.0%Emg Market Equity Fidelity Emerging Markets Focus 1.0%Emg Market Equity Total 1.0%UK Corp Bonds RLAM Short Duration Credit 8.0%



RLAM Global Bond Opps 8.5%Schroder Strat Credit Fund 8.0%Artemis Strategic Bond 8.0%

Strategic Bonds Total 33.0%Equity L/S (AR) BlackRock Euro Abs Alpha 7.5%

Artemis US Abs Ret 7.5%Equity L/S (AR) Total 15.0%Specialist (A/R) Muzinich Global Tactical Credit 7.0%








Risk Rating 2/10

Q2 2020



The Albert E Sharp Model 3 portfolio gained 9.3% in Q2 of 2020 against the ARC Cautious Index’s 6.0%*. Over five years, the strategy is up 15.3% compared to the index’s 13.5%.

Following the sharp sell-off of Q1, risk assets rebounded in the second quarter. US equities have definitely been the place to be in 2020 as the tech heavy NASDAQ shows a near 20% return YTD in sterling terms. Ninety One American Franchise finished Q2 slightly ahead of the S&P-500 benchmark with 17.7%. In the smaller company space, Artemis US Smaller Companies gained 26.8% in Q2 against the benchmark Russell 2000’s 25.6%.





Portfolio Changes


*ARC performance numbers are provisional estimates, based upon a sample of ETFs. This is subject to revision based on actual performance of ARC contributors.



This strategy is suitable for investors with a ‘low’ rating of willingness to accept risk, according to Dynamic Planner®.




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AES 3 (Net) ARC CautiousEquity, 24%

Fixed-Income, 49%


Cash, 2%



Risk Rating 3/10

Q2 2020










Mapping & Benchmarks WMA ConservativeARC Sterling Cautious Asset PCI



Current PortfolioSector Fund Name WeightUK Equity LF Lindsell Train UK Equity 2.5%

CFP SDL UK Buffettology 2.5%UK Equity Total 5.0%US Equity HSBC American Index 3.5%

Ninety One American Franchise 2.5%Artemis US Smaller Cos 2.5%


Legg Mason Japan Equity (Hdg) 1.5%Japan Equity Total 3.0%Asia Pac ex-Jpn Equity Schroder Asia Alpha Plus 2.0%Asia Pac ex-Jpn Equity Total 2.0%Emg Market Equity Fidelity Emerging Markets Focus 2.0%Emg Market Equity Total 2.0%UK Corp Bonds RLAM Short Duration Credit 7.5%



RLAM Global Bond Opps 7.5%Schroder Strat Credit Fund 7.0%Artemis Strategic Bond 7.0%




1.5%

9.3%

0.3%

2.7%

8.5%

15.3%

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AES 3 ARC CautiousAES 1-2

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3 Year Volatility

4.7%

20.2%

43.2%

53.1%

109.4%

-5.7%-9.6%

-0.5% 19.2% 64.9%

0.5%6.7%

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35.0%

81.2%

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1m 12m 3y 5y 10y









Risk Rating 3/10

Q2 2020



The Albert E Sharp Model 4 portfolio gained 13.6% in Q2 of 2020 against the ARC Balanced Index’s 8.6%*. Over five years, the strategy is up 27.4%, compared to the index’s 18.6%.

Following the sharp sell-off of Q1, risk assets rebounded in the second quarter. US equities have definitely been the place to be in 2020 as the tech heavy NASDAQ shows a near 20% return YTD in sterling terms. Unsurprisingly, our technology sector exposure through AXA Global Technology was a top performer, rising 30.5% in the quarter and 22.5% YTD. Impressive, but dwarfed by the outstanding 51.8% return of Baillie Gifford American through the second quarter. Ninety One American Franchise finished Q2 slightly ahead of the benchmark with 17.7%. In the smaller company space, Artemis US Smaller Companies gained 26.8% in Q2 against the benchmark Russell 2000’s 25.6%.





Portfolio Changes



To achieve a medium level of total return. Up to 45-50% of the portfolio may be invested in UK and international equities, downside protection is derived from diversification into fixed-income and absolute return funds.

This strategy is suitable for investors with a ‘lowest medium’ rating of willingness to accept risk, according to Dynamic Planner®




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AES 4 (Net) ARC Balanced

Equity, 46%Fixed-Income,

37%


Cash, 2%



Risk Rating 4/10

Q2 2020

Current Portfolio

Portfolio StatisticsAES Management Fees (p.a.) 0.5% + VAT







WMA IncomeARC Sterling Balanced Asset PCI





Sector Fund Name WeightUK Equity CFP SDL UK Buffettology 4.5%

LF Lindsell Train UK Equity 4.5%Gresham House UK Microcap 2.0%

UK Equity Total 11.0%US Equity HSBC American Index 5.5%

Ninety One American Franchise 4.5%Artemis US Smaller Cos 4.0%Baillie Gifford American 3.0%


Legg Mason Japan Equity (Hdg) 2.0%Japan Equity Total 4.0%Asia Pac ex-Jpn Equity Schroder Asia Alpha Plus 3.0%Asia Pac ex-Jpn Equity Total 3.0%Emg Market Equity Fidelity Emerging Markets Focus 3.0%Emg Market Equity Total 3.0%Global Equity AXA Fram Gbl Technology 2.0%Global Equity Total 2.0%UK Corp Bonds RLAM Short Duration Credit 6.0%

MS Sterling Corporate Bond 5.0%UK Corp Bonds Total 11.0%Strategic Bonds Baillie Gifford Strategic Bond 6.5%

RLAM Global Bond Opps 6.5%Artemis Strategic Bond 6.5%Schroder Strategic Credit Fund 6.5%




2.0%

13.5%

1.8%

5.4%

15.2%

27.4%

1.9%

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-3.3%-0.2%

5.5%

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AES 4 ARC Balanced AES 1-2

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3 Year Volatility

5.5%

28.5%

47.3%

73.0%

142.3%

-8.3%-16.1% -10.3%

11.0%45.5%

0.6% 7.1%21.4%

37.6%

89.2%

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1m 12m 3y 5y 10y









Risk Rating 4/10

Q2 2020



The Albert E Sharp Model 5 portfolio gained 15.5% in Q2 of 2020 against the ARC Balanced Index’s 8.6%*. Over five years, the strategy is up 35.7%, compared to the index’s 18.6%.




Looking to the Far East, all three Asia Pacific and EM funds produced returns in excess of 20% in the quarter. Schroder Small Cap Discovery led the way, up 26.2%, followed closely by Schroder Asian Alpha Plus with 23.1%. Fidelity Emerging Markets Focus finished up 20.4% in Q2.


Portfolio Changes




To achieve a medium level of total return. Up to 55-60% of the portfolio may be invested in UK and international equities, downside protection is derived from diversification into fixed-income and absolute return funds.

This strategy is suitable for investors with a ‘low medium’ rating of willingness to accept risk, according to Dynamic Planner®




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AES 5 (Net) ARC Balanced

Equity, 58%Fixed-Income, 32%

Absolute Return, 8%Cash, 2%


Risk Rating 5/10

Q2 2020


Cumulative Performance *


Risk & Return Analysis *

Current Portfolio








Mapping & Benchmarks WMA BalancedARC Sterling Balanced Asset PCI








Legg Mason Japan Equity (Hdg) 2.5%Japan Equity Total 5.0%Asia Pac ex-Jpn Equity Schroder Asia Alpha Plus 3.0%

Schroder Small Cap Discovery 2.0%Asia Pac ex-Jpn Equity Total 5.0%Emg Market Equity Fidelity Emerging Markets Focus 4.0%Emg Market Equity Total 4.0%Global Equity AXA Fram Gbl Technology 3.0%Global Equity Total 3.0%UK Corp Bonds RLAM Short Duration Credit 5.0%

MS Sterling Corporate Bond 4.0%UK Corp Bonds Total 9.0%Strategic Bonds Baillie Gifford Strat Bond 6.5%

RLAM Global Bond Opps 6.5%Artemis Strategic Bond 5.0%Schroder Strat Credit Fund 5.0%


Artemis US Abs Ret 3.0%Equity L/S (AR) Total 6.0%Specialist (A/R) Muzinich Global Tactical Credit 2.0%Specialist (A/R) Total 2.0%Cash Cash 2.0%Cash Total 2.0%Grand Total 100.0%

2.3%

15.5%

2.4%6.6%

17.9%

35.7%

1.9%

8.6%

-3.3%-0.2%

5.5%

18.6%

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3 Year Volatility

6.0%

33.5%

55.0%

85.3%

170.4%

-9.7%-19.6% -17.8%

5.3% 35.9%

0.6%7.5%

22.4%

39.8%

95.5%

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1m 12m 3y 5y 10y








Risk Rating 5/10

Q2 2020




The Albert E Sharp Model 6 portfolio gained 17.0% in Q2 of 2020 against the ARC Steady Growth Index’s 11.0%*. Over five years, the strategy is up 41.4% compared to the index’s 25.7%.Following the sharp sell-off of Q1, risk assets rebounded in the second quarter. US equities have definitely been the place to be in 2020 as the tech heavy NASDAQ shows a near 20% return YTD in sterling terms. Unsurprisingly, our technology sector exposure through AXA Global Technology was a top performer, rising 30.5% in the quarter and 22.5% YTD. Impressive, but dwarfed by the outstanding 51.8% return of Baillie Gifford American through the second quarter. Ninety One American Franchise finished Q2 slightly ahead of the benchmark with 17.7%. In the smaller company space, Artemis US Smaller Companies gained 26.8% in Q2 against the benchmark Russell 2000’s 25.6%.





Portfolio Changes



To achieve capital growth. Up to 70-75% of the portfolio may be invested in UK and international equities, downside protection is derived from diversification into fixed-income and absolute return funds.

This strategy is suitable for investors with a ‘high medium’ rating of willingness to accept risk, according to Dynamic Planner®




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AES 6 (Net) ARC Steady Growth

Equity, 68%

Fixed-Income, 25%

Absolute Return, 5% Cash, 2%



Risk Rating 6/10

Q2 2020



Current Portfolio








Mapping & Benchmarks WMA GrowthARC Steady Growth PCI






Artemis US Smaller Cos 6.5%Ninety One American Franchise 6.5%Baillie Gifford American 4.5%



Schroder Small Cap Discovery 3.0%Asia Pac ex-Jpn Equity Total 8.0%Emg Market Equity Fidelity Emerging Markets Focus 4.0%Emg Market Equity Total 4.0%Global Equity AXA Fram Gbl Technology 4.0%Global Equity Total 4.0%UK Corp Bonds RLAM Short Duration Credit 4.0%

MS Sterling Corporate Bond 3.0%UK Corp Bonds Total 7.0%Strategic Bonds Baillie Gifford Strat Bond 5.5%

RLAM Global Bond Opps 5.5%Artemis Strategic Bond 3.5%Schroder Strat Credit Fund 3.5%


Artemis US Abs Ret 2.5%Equity L/S (AR) Total 5.0%Cash Cash 2.0%Cash Total 2.0%Grand Total 100.0%

2.7%

17.0%

2.9%7.2%

19.8%

41.4%

2.3%

10.9%

-5.1%-1.3%

7.2%

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3 Year Volatility

7.1%

38.5%

62.8%

96.4%

197.4%

-11.2%-22.8% -24.4%

-0.4% 29.1%

0.6% 7.9%23.5%

41.8%

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Risk Rating 6/10

Q2 2020



The Albert E Sharp Model 7 portfolio gained 19.2% in Q2 of 2020, against the ARC Equity Risk Index’s 13.0%*. Over five years, the strategy is up 47.1% compared to the index’s 30.4%.





Credit rallied across the board having experienced a painful first quarter at the hands of significant spread widening and illiquidity. Royal London Global Bond Opportunities and Baillie Gifford Strategic Bond topped Q2 attribution with 12.2% and 11.1% respectively.

Portfolio Changes



To achieve a moderate level of capital growth. Up to 80-85% of the portfolio may be invested in UK and international equities, downside protection is derived from diversification into fixed-income and absolute return funds.

This strategy is suitable for investors with a ‘highest medium’ rating of willingness to accept risk, according to Dynamic Planner®




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AES 7 (Net) ARC Equity Risk

Equity, 80%

Fixed-Income, 15%

Absolute Return, 3% Cash, 2%



Risk Rating 7/10

Q2 2020



Current Portfolio


AES Management Fees (p.a.) 0.5% + VATCustody Fees (p.a.) Variable Across PlatformsEstimated Portfolio Yield (p.a.) 1.13%Portfolio OCF (p.a.) 0.74%Minimum Investment £10,000Strategy Launch Date 31st Dec 2010


WMA Global GrowthARC Equity Risk PCI









Schroder Small Cap Discovery 4.0%Asia Pac ex-Jpn Equity Total 9.0%Emg Market Equity Fidelity Emerging Markets Focus 8.0%Emg Market Equity Total 8.0%Global Equity AXA Fram Gbl Technology 5.0%Global Equity Total 5.0%UK Corp Bonds RLAM Short Duration Credit 4.0%UK Corp Bonds Total 4.0%Strategic Bonds Baillie Gifford Strat Bond 5.5%

RLAM Global Bond Opps 5.5%Strategic Bonds Total 11.0%Equity L/S (AR) BlackRock Euro Abs Alpha 1.5%

Artemis US Abs Ret 1.5%Equity L/S (AR) Total 3.0%Cash Cash 2.0%Cash Total 2.0%Grand Total 100.0%

3.2%

19.1%

3.4%8.2%

22.0%

47.1%

2.7%

13.0%

-6.6%-2.2%

8.2%

30.4%

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AES 7 ARC Equity RiskAES 1-2

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3 Year Volatility

8.3%

44.5%

74.8%

107.6%

229.7%

-13.7%-26.4% -31.6%

-6.3% 24.2%

0.7% 8.5%25.1%

44.7%

109.3%

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1m 12m 3y 5y 10y









Risk Rating 7/10

Q2 2020



The Albert E Sharp Model 8 portfolio gained 20.8% in Q2 of 2020 against the ARC Equity Risk Index’s 13.0%*. Over five years, the strategy is up 50.5% compared to the index’s 30.4%.Following the sharp sell-off of Q1, risk assets rebounded in the second quarter. US equities have definitely been the place to be in 2020 as the tech heavy NASDAQ shows a near 20% return YTD in sterling terms. Unsurprisingly, our technology sector exposure through AXA Global Technology was a top performer, rising 30.5% in the quarter and 22.5% YTD. Impressive, but dwarfed by the outstanding 51.8% return of Baillie Gifford American through the second quarter. Ninety One American Franchise finished Q2 slightly ahead of the benchmark with 17.7%. In the smaller company space, Artemis US Smaller Companies gained 26.8% in Q2 against the benchmark Russell 2000’s 25.6%.




Credit rallied across the board having experienced a painful first quarter at the hands of significant spread widening and illiquidity. Baillie Gifford Strategic Bond topped Q2 attribution with 12.2% while the new addition Royal London Global Bond Opportunities made a small positive contribution. Portfolio Changes

One change was made in the quarter with the addition of Royal London Global Bond Opportunities. Having held a position in the fund within lower risk portfolios, the fund joins the portfolio as we reallocate the temporarily higher cash balance in order to take advantage of attractive valuations within credit markets.*ARC performance numbers are provisional estimates, based upon a sample of ETFs. This is subject to revision based on actual performance of ARC contributors.



This strategy is suitable for investors with a ‘high’ rating of willingness to accept risk, according to Dynamic Planner®.




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Equity, 84%

Fixed-Income, 14%

Cash, 2%



Risk Rating 8/10

Q2 2020



Current Portfolio






Defaqto 8Dyanamic Planner 8







Schroder Small Cap Discovery 4.0%Asia Pac ex-Jpn Equity Total 9.0%Emg Market Equity Fidelity Emerging Markets Focus 8.0%Emg Market Equity Total 8.0%Global Equity AXA Fram Gbl Technology 6.0%

Baillie Gifford Global Discovery 3.0%Global Equity Total 9.0%UK Corp Bonds RLAM Short Duration Credit 4.0%UK Corp Bonds Total 4.0%Strategic Bonds Baillie Gifford Strat Bond 5.0%

RLAM Global Bond Opps 5.0%Strategic Bonds Total 10.0%Cash Cash 2.0%Cash Total 2.0%Grand Total 100.0%

3.4%

20.8%

4.4%9.4%

23.9%

50.4%

2.7%

13.0%

-6.6%-2.2%

8.2%

30.4%

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AES 2 AES 3

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AES 10

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3 Year Volatility

8.8%

46.1%

77.3%

112.8%

241.3%

-14.0%-27.7% -34.1%

-8.6% 18.9%

0.7% 8.5%25.2%

45.0%

109.8%

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1m 12m 3y 5y 10y









Risk Rating 8/10

Q2 2020



The Albert E Sharp Model 10 portfolio gained 23.7% in Q2 of 2020 against the ARC Equity Risk Index’s 13.0%*. Over five years, the strategy is up 62.7% compared to the index’s 30.4%.Following the sharp sell-off of Q1, risk assets rebounded in the second quarter. US equities have definitely been the place to be in 2020 as the tech heavy NASDAQ shows a near 20% return YTD in sterling terms. Unsurprisingly, our technology sector exposure through AXA Global Technology was a top performer, rising 30.5% in the quarter and 22.5% YTD. Impressive, but dwarfed by the outstanding 51.8% return of Baillie Gifford American through the second quarter. Ninety One American Franchise finished Q2 slightly ahead of the benchmark with 17.7%. In the smaller company space, Artemis US Smaller Companies gained 26.8% in Q2 against the benchmark Russell 2000’s 25.6%.




Portfolio Changes

No changes were made to the portfolio in the quarter.




This strategy is suitable for investors with a ‘highest’ rating of willingness to accept risk, according to Dynamic Planner®.




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Equity, 98%

Cash, 2%



Risk Rating 10/10

Q2 2020



Current Portfolio





IA GlobaleValue FE 10





Artemis US Smaller Cos 8.5%Ninety One American Franchise 8.5%Baillie Gifford American 6.0%



Schroder Small Cap Discovery 4.0%Asia Pac ex-Jpn Equity Total 9.0%Emg Market Equity Fidelity Emerging Markets Focus 10.0%Emg Market Equity Total 10.0%Global Equity AXA Fram Gbl Technology 8.0%

Baillie Gifford Global Discovery 6.0%Global Equity Total 14.0%Cash Cash 2.0%Cash Total 2.0%Grand Total 100.0%


4.0%

23.7%

5.6%10.6%

27.6%

62.7%

2.7%

13.0%

-6.6%-2.2%

8.2%

30.4%

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3 Year Volatility

10.1%

52.3%90.6%

127.2%

285.1%

-16.8% -31.6% -42.5%-17.2%

9.0%

0.7% 9.1%26.6%

47.4%

115.4%

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1m 12m 3y 5y 10y







Risk Rating 10/10

Q2 2020

model portfolio service - albertesharp.com the albert e sharp model 1-2 portfolio gained 6.1% in q2...

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