Investment Manager - Harmony Funds

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18 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

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Harmony Portfolios


Advisor Workshop

November 2009

2

Agenda


RMBAM Overview



Harmony overview



Performance



Developments



Investment process



3

RMB Asset Management International


RMB Asset Management is a wholly owned subsidiary of South Africa's largest
financial services group, FirstRand



FirstRand has USD124 billion of assets under management (June 2008) with a
market capitalisation of USD9.7 billion (December 2008)



RMB Asset Management has USD2.1 billion assets under management as of 31
December 2008.



From its office in London, RMB Asset Management employs over 35 staff:

-
Equity Desk


Long only manager of manager funds

-
Fixed Income desk

-
Alternative Desk

-
Multi Asset Desk
-

Bespoke multi asset class portfolios

-
Advisory services for professional clients

Source: RMB Asset Management, February 2009.

4

RMB Asset Management International


Well resourced, experienced investment team



Genuine diversification to a broad range of ‘traditional’ and ‘non
-
traditional’
asset classes


reducing risk and widening the opportunity set



Consistent valued ad through all market conditions



Cost
-
effective portfolio management



Global best of breed: It is widely accepted that no one manager is the best in all
asset classes. Our analysts carry out over 1000 research meetings a year to
uncover the world’s best managers



Disciplined and repeatable process




5

The manager selection process


Focus on alpha generation


Intelligent use of qualitative and quantitative research


Maximising efficiency through technology



Asset class

research

Portfolio
construction

Portfolio

monitoring

Manager
research

analysis

of universe

blend

managers

quantitative

analysis

asset class

research

fundamental

research

asset

allocation

style

analysis

attribution /

trading analysis

6

Where active management works

Percentage of fund managers who underperform various performance hurdles

Source: PSN, Lipper Hindsight, RMB MultiManagers, * Average of US, UK and Eurozone

Asset class research

Inefficient

Index

+1%

+2%

+4%

Efficient

Domestic Bonds*

84

Global Bonds

EM Equity

Japanese Equity

Semi
-
Efficient

UK Equities

US Equities

Global Equities

European Equities

Small Cap*

66

77

67

77

65

71

75

69

75

81

53

66

75

59

67

73

48

57

65

75

49

54

59

67

Efficient

Inefficient

7

Manager research and selection



Assets under management



Investment style



High alpha



Returns based style analysis



Risk/attribution analysis


Check consistency through


time



Philosophy



Process



People



Evidence

Re
-
evaluation of
existing
managers


Ongoing monitoring

Asset class screening / initial research

Quant analysis

Due diligence

Selection

8

Philosophy

Process

People

Evidence

Focus on skilful exponents of investment styles


Disciplined and repeatable process

Is the philosophy implemented

consistently?

Skilful individuals leveraging the resources of a wider team rather than

consensus based approaches

Through risk and return attributions, confirm risks being taken are

consistent with the stated philosophy

Best of breed


9

RMB Global Equity Fund: incumbent managers

Tokyo:

JP Morgan

Shiozumi


London:

Jupiter

New Star

Cazenove


New York:

American Century

ASB

Pzena

Evercore


Chicago:

Driehaus

Timpani

Paris:

Comgest

Wilmington:

Marvin & Palmer

Connecticut:

Lapides

Data: as at 17.10.2008

10

Introduction to Harmony

Source: RMB Asset Management, February 2009.

The range of Harmony Funds has been designed to provide a core
investment solution to your clients.





The investment objective is achieved through a diversified portfolio that
invests across a broad range of asset classes and currencies in varying
proportions over time. These asset classes include international equities,
fixed income, commodities, alternative strategies, property, money market
instruments and asset allocation portfolios.

11

Harmony Portfolios Funds

-

Incorporated cells of
RMBIS Mutual Fund ICC

Structure

Regulator

Guernsey Financial

Services Commission

Fund Manager


RMB Investment Services
Limited



Harmony Portfolios

Fund Range


Asian Balanced Fund

Asian Growth Fund

Euro Balanced Fund

GBP Balanced Fund

GBP Growth Fund

USD Balanced Fund

USD Growth Fund

AUD Growth Fund

Designated

Manager

RMB Investment Services Limited


Investment

Manager

RMB Asset Management
International Limited (London)


Distribution

Partner

Financial Partners


Custodian

Close International Custody
Services

Auditors

Price Waterhouse Coopers


Harmony structure

12

Harmony fund detail


The funds are available in USD, EUR and GBP



Daily dealing



Initial Fee
-

0.00%



Minimum Investment
-

US$25,000 (or currency equivalent)



Minimum Subsequent Investment
-

US$7,500 (or currency equivalent)



Minimum Redemption
-

not less than US$2,500 (or currency equivalent)



Dividend Policy
-

no dividends will be paid. All income received will be
reinvested

Source: RMB Asset Management, February 2009.

13

Harmony Class A and B fees

Fee description

Class A

Class B

Management fee
-

RMBIS

0.40%

0.90% (rebate to life companies)

Investment Management fee


RMB Asset
Management International

0.25%

0.25%

Distribution Partner fee
-

FP

0.50%

0.50%

Underlying Asset Manager’s fee

1.00% (variable)

1.00% (variable)

ICC fees

0.05% (variable)

0.05% (variable)

Total (2)

2.20%

2.70%

14

Harmony accessibility


Friends Provident International


Lumps Sums


Regular savings products


Mirror funds


Menu products?



Skandia


Lumps Sums



Zurich, Scottish Provident, Generali


In progress



Trail fees on all

15

Friends Provident International
-

Regular Savings


Portfolio Management for regular savings clients



Harmony Class B funds will be offered as mirror funds on Friends Provident
regular savings product



Funds will be available for new investments and switches



Sign the Friends Provident OMA form which will enable you to do the fund
selections and portfolio changes


earn additional 0.5%



Normal applications forms for new business



Normal dealing instruction for switches



www.harmonyportfolios.com

16

Harmony Performance

USD
Sep-09
3 Months
6 Months
YTD
12 Months
24 months
36 months
Harmony Portfolios US Dollar Growth Fund
2.6%
11.8%
22.1%
19.1%
-3.3%
-17.9%
-5.2%
Benchmark
1.9%
8.7%
18.5%
12.1%
-1.7%
-14.7%
-3.5%
Relative
0.8%
3.1%
3.6%
6.9%
-1.6%
-3.2%
-1.7%
* 45% Equity (30% S&P 500, 15% MSCI World ex USA), 15% Citigroup US WGBI, 5% JPM EMBI+, 15% Lipper Property Peer Group & 20% US Dollar 7-Day LIBID
** Inception date 30 June 2005
AuM:
12 549 441
Harmony Portfolios US Dollar Balanced Fund
2.8%
10.0%
20.4%
17.4%
-2.2%
-15.0%
-3.8%
Benchmark
1.8%
6.5%
13.2%
9.2%
1.3%
-6.2%
3.7%
Relative
1.0%
3.6%
7.2%
8.2%
-3.4%
-8.7%
-7.5%
* 26% Equity (16% S&P 500, 10% MSCI World ex USA), 25% Citigroup US WGBI, 12% JPM EMBI+, 13% Lipper Property Peer Group & 24% US Dollar 7-Day LIBID
** Inception date 30 June 2005
AuM:
6 424 231
GBP
Sep-09
3 Months
6 Months
YTD
12 Months
24 Months
36 Months
Harmony Portfolios Sterling Growth Fund
3.9%
14.0%
20.9%
14.8%
9.1%
-1.6%
6.5%
Benchmark
3.0%
11.7%
15.7%
7.9%
6.3%
-2.5%
4.4%
Relative
0.9%
2.3%
5.2%
6.9%
2.8%
0.9%
2.0%
* 45% Equity (% FTSE All Share, % MSCI World ex UK), 15% Citigroup GBP WGBI, 5% JPM EMBI+, 15% Lipper Property Peer Group & 20% GBP 7-Day LIBID
** Inception date 30th June 2004
AuM:
4 568 899
Harmony Portfolios Sterling Balanced Fund
3.3%
11.8%
16.6%
11.4%
6.1%
-1.3%
4.6%
Benchmark
2.6%
8.8%
10.5%
4.7%
7.2%
4.6%
9.7%
Relative
0.7%
3.0%
6.1%
6.7%
-1.1%
-5.9%
-5.2%
* 26% Equity (% FTSE All Share, % MSCI World ex UK), 25% Citigroup GBP WGBI, 12% JPM EMBI+, 13% Lipper Property Peer Group & 24% GBP 7-Day LIBID
** Inception date 30th June 2004
AuM:
7 807 746
17

Harmony Performance

EUR
Sep-09
3 Months
6 Months
YTD
12 Months
24 Months
36 Months
Harmony Portfolios Euro Balanced Fund
1.8%
8.9%
18.7%
14.5%
-0.9%
-13.6%
-6.1%
Benchmark
1.1%
7.3%
15.4%
11.9%
0.7%
-11.4%
-6.7%
Relative
0.7%
1.6%
3.3%
2.6%
-1.6%
-2.1%
0.6%
* 26% Equity (16% MSCI Europe ex UK, 10% MSCI World ex EMU), 25% Citigroup EUR WGBI, 12% JPM EMBI+, 13% Lipper Property Peer Group, 24% EUR 7-Day LIBID
** Inception date 30th June 2004
AuM:
6 222 032
USD
Sep-09
3 Months
6 Months
YTD
12 Months
24 Months
Harmony Asian Growth Portfolio*
2.9%
10.0%
25.2%
23.0%
1.7%
-11.3%
Benchmark
2.9%
8.6%
21.3%
20.1%
10.9%
-4.7%
Relative
0.0%
1.3%
3.9%
2.9%
-9.2%
-6.6%
* 45% Equity (30% MSCI AC Asia ex Japan, 15% MSCI World ), 20% Citigroup US WGBI, 35% US Dollar 7-Day LIBID
** Inception date 30 November 2007
AuM:
24 268 373
Harmony Asian Balanced Portfolio*
2.5%
8.0%
17.9%
14.9%
-0.9%
-13.0%
Benchmark
1.9%
5.5%
11.7%
10.3%
8.0%
2.1%
Relative
0.6%
2.6%
6.2%
4.6%
-8.9%
-15.1%
* 26% Equity (16% MSCI AC Asia ex Japan, 10% MSCI World ), 37% Citigroup US WGBI, 37% US Dollar 7-Day LIBID
** Inception date 30 November 2007
AuM:
9 364 755
18

Developments


Mirror funds on Friends



Bloomberg



Harmony AUD Growth Fund


launch December 2009



Benchmark review


10% Property in Asian portfolios


Slightly more aggressive



Weekly market commentary



House view after Asset Allocation meetings



19

Benchmark review
-

Current

Harmony
Asian

Balanced

Harmony
Asian

Growth

Harmony
Euro
Balanced

Harmony
Sterling
Balanced

Harmony
Sterling

Growth

Harmony
USD

Balanced

Harmony
USD

Growth

Global Equity

10%

15%

10%

10%

15%

10%

15%

Local Equity

16%

30%

16%

16%

30%

16%

30%

26%

45%

26%

26%

45%

26%

45%

Emerging
Market Debt

0%

0%

12%

12%

5%

12%

5%

Government
Debt

37%

20%

25%

25%

15%

25%

15%

37%

20%

37%

37%

20%

37%

20%

Global
Property

0%

0%

13%

13%

15%

13%

15%

Cash

37%

35%

24%

24%

20%

24%

20%

100%

100%

100%

100%

100%

100%

100%

20

Benchmark review


New composition

Harmony
Asian

Balanced

Harmony
Asian

Growth

Harmony
Euro
Balanced

Harmony
Sterling
Balanced

Harmony
Sterling

Growth

Harmony
USD

Balanced

Harmony
USD

Growth

Global Equity

12%

18%

12%

12%

18%

12%

18%

Local Equity

18%

32%

18%

18%

32%

18%

32%

30%

50%

30%

30%

50%

30%

50%

Emerging
Market Debt

10%

5%

10%

10%

5%

10%

5%

Government
Debt

35%

25%

35%

35%

25%

30%

25%

45%

30%

45%

45%

30%

45%

30%

Global
Property

10%

10%

10%

10%

10%

10%

10%

Cash

15%

10%

15%

15%

10%

15%

10%

100%

100%

100%

100%

100%

100%

100%

21

Developments


Mirror funds on Friends



Bloomberg



Harmony AUD Growth Fund


launch December 2009



Benchmark review


10% Property in Asian portfolios


Slightly more aggressive



Weekly market commentary




House view after Asset Allocation meetings



22

23

Developments


Mirror funds on Friends



Bloomberg



Harmony AUD Growth Fund


launch December 2009



Benchmark review


10% Property in Asian portfolios


Slightly more aggressive



Weekly market commentary



House view after Asset Allocation meetings



24

House view

25

Investment Process


Implementation in action



26

Recent Portfolio changes

Harmony
Asian
Balanced
Oct
Changes
Harmony
Asian
Growth
Oct
Changes
Harmony
Euro
Balanced
Oct
Changes
Total allocation
Global equity
7.3%
8.4%
12.3%
14.2%
7.3%
8.4%
Local equity
15.6%
18.6%
26.1%
30.8%
15.6%
18.6%
Global Emerging market equity
2.0%
3.0%
3.0%
4.0%
2.0%
3.0%
Equities
25.0%
30.0%
41.3%
49.0%
25.0%
30.0%
High yield bonds
3.7%
3.9%
4.8%
2.2%
7.6%
3.8%
Global convertible bonds
3.7%
3.9%
4.8%
2.2%
5.2%
3.8%
Senior loans
3.2%
0.0%
1.5%
0.0%
2.5%
0.0%
Investment grade corporate debt
16.5%
8.3%
9.6%
6.2%
11.6%
5.3%
Emerging market debt
3.2%
5.3%
1.5%
3.6%
9.7%
14.5%
Government bonds
24.3%
24.8%
15.6%
14.2%
19.2%
17.8%
Bonds
54.5%
46.2%
37.9%
28.4%
55.7%
45.2%
Alternatives
7.9%
9.0%
10.2%
8.6%
5.9%
8.8%
Property
1.8%
4.8%
1.8%
4.8%
7.8%
10.4%
Cash
10.8%
10.0%
8.8%
9.2%
5.6%
5.6%
Total
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
27

Harmony
Sterling
Balanced
Oct
Changes
Harmony
Sterling
Growth
Oct
Changes
Harmony
US Dollar
Balanced
Oct
Changes
Harmony
US Dollar
Growth
Oct
Changes
Total allocation
Global equity
7.3%
8.4%
12.3%
14.2%
7.3%
8.4%
12.3%
14.2%
Local equity
15.6%
18.6%
26.1%
30.8%
15.6%
18.6%
26.1%
30.8%
Global Emerging market equity
2.0%
3.0%
3.0%
4.0%
2.0%
3.0%
3.0%
4.0%
Equities
25.0%
30.0%
41.3%
49.0%
25.0%
30.0%
41.3%
49.0%
High yield bonds
7.6%
3.8%
7.6%
3.0%
7.3%
3.8%
7.6%
3.0%
Global convertible bonds
5.2%
3.8%
7.0%
3.0%
5.1%
3.8%
7.0%
3.0%
Senior loans
2.3%
0.0%
1.0%
0.0%
2.2%
0.0%
1.0%
0.0%
Investment grade corporate debt
12.4%
5.3%
6.0%
3.5%
11.6%
5.3%
5.4%
3.5%
Emerging market debt
9.5%
14.5%
2.8%
6.5%
8.8%
14.5%
2.8%
6.5%
Government bonds
19.2%
17.8%
11.4%
11.0%
19.2%
17.8%
10.8%
11.0%
Bonds
56.1%
45.2%
35.9%
27.0%
54.1%
45.2%
34.7%
27.0%
Alternatives
3.9%
8.8%
8.2%
8.0%
5.9%
8.8%
10.2%
8.0%
Property
7.8%
10.4%
9.0%
12.0%
7.8%
10.4%
9.0%
12.0%
Cash
7.2%
5.6%
5.6%
4.0%
7.2%
5.6%
4.8%
4.0%
Total
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Recent Portfolio changes

28

Rolling Asset Allocation


Harmony GBP Balanced

Equity, 37%
Equity, 26%
Equity, 17%
Equity, 23%
Equity, 25%
Equity, 26%
Fixed Income, 20%
Fixed Income, 31%
Fixed Income, 44%
Fixed Income, 44%
Fixed Income, 55%
Fixed Income, 37%
Alternatives, 16%
Alternatives, 16%
Alternatives, 17%
Alternatives, 6%
Property, 15%
Property, 11%
Property, 5%
Property, 13%
Property, 9%
Property, 13%
Money Market, 7%
Money Market, 16%
Money Market, 18%
Money Market, 14%
Money Market, 10%
Money Market, 24%
Alternatives, 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun-07
Jun-08
Dec-08
Jun-09
Sep-09
Benchmark
29

Rolling Asset Allocation


Harmony Asian Growth

Equity, 49%
Equity, 45%
Equity, 31%
Equity, 45%
Equity, 41%
Equity, 45%
Fixed Income, 5%
Fixed Income, 19%
Fixed Income, 37%
Fixed Income, 37%
Fixed Income, 38%
Fixed Income, 20%
Alternatives, 29%
Alternatives, 20%
Alternatives, 10%
Alternatives, 10%
Property, 12%
Property, 8%
Property, 5%
Property, 1%
Money Market, 8%
Money Market, 17%
Money Market, 7%
Money Market, 11%
Money Market, 35%
Alternatives, 10%
Property, 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun-07
Jun-08
Dec-08
Jun-09
Sep-09
Benchmark
30

Why Harmony


Portfolio management solution


Illustrated on fact sheets


drill down to underlying funds


Actively managed


Access to the fund managers in London


Bespoke to Financial Partners



Monthly fact sheets, Viewpoint newsletter, Weekly Market Commentary, Monthly
House View and
Comprehensive quarterly report



Daily trading



Prices on Bloomberg



Accepted on most life company platforms



Trail fees on lump sums and regulars



Disciplined and repeatable process

Thank You

32

Important Notes


RMB

Asset

Management

is

the

trading

name

for

RMB

Asset

Management

International

Limited
.

This

document

does

not

constitute

an

offer

or

solicitation

to

any

person

in

any

jurisdiction

in

which

it

is

not

authorised

or

permitted,

or

to

anyone

who

would

be

an

unlawful

recipient,

and

is

only

intended

for

use

by

original

recipients

and

addressees
.

The

original

recipient

is

solely

responsible

for

any

actions

in

further

distributing

this

document,

and

should

be

satisfied

in

doing

so

that

there

is

no

breach

of

local

legislation

or

regulation
.

The

information

is

intended

solely

for

use

by

our

clients

or

prospective

clients,

and

should

not

be

reproduced

or

distributed

except

via

original

recipients

acting

as

professional

intermediaries
.

This

document

is

not

for

distribution

in

the

United

States
.

Prospective

investors

should

inform

themselves

and

if

need

be

take

appropriate

advice

regarding

applicable

legal,

taxation

and

exchange

control

regulations

in

countries

of

their

citizenship,

residence

or

domicile

which

may

be

relevant

to

the

acquisition,

holding,

transfer,

redemption

or

disposal

of

any

investments

herein

solicited
.

Any

opinions

expressed

herein

are

those

at

the

date

this

material

is

issued
.

Data,

models

and

other

statistics

are

sourced

from

our

own

records,

unless

otherwise

stated

herein
.

We

believe

that

the

information

contained

is

from

reliable

sources,

but

we

do

not

guarantee

the

relevance,

accuracy

or

completeness

thereof
.

Unless

provided

under

UK

law,

RMB

Asset

Management

does

not

accept

liability

for

irrelevant,

inaccurate

or

incomplete

information

contained,

or

for

the

correctness

of

opinions

expressed
.


We

caution

that

the

value

of

investments

in

discretionary

accounts,

and

the

income

derived,

may

fluctuate

and

it

is

possible

that

an

investor

may

incur

losses,

including

a

loss

of

the

principal

invested
.

Past

performance

is

not

generally

indicative

of

future

performance
.

Investors

whose

reference

currency

differs

from

that

in

which

the

underlying

assets

are

invested

may

be

subject

to

exchange

rate

movements

that

alter

the

value

of

their

investments
.


Important notes

33

Important Notes (Continued)


Our investment mandates in alternative strategies and hedge funds permit us to invest in unregulated funds that
may be highly volatile. Although alternative strategies funds will seek to follow a wide diversification policy, these
funds may be subject to sudden and/or large falls in value. The illiquid nature of the underlying funds is such that
alternative strategies funds deal infrequently and require longer notice periods for redemptions. These
Investments are therefore not readily realisable. If an alternative strategies fund fails to perform, it may not be
possible to realise the investment without further loss in value. These unregulated funds may engage in the short
selling of securities or may use a greater degree of gearing than is permitted for regulated funds (including the
ability to borrow for a leverage strategy). A relatively small price movement may result in a disproportionately
large movement in the investment value. The purpose of gearing is to achieve higher returns associated with
larger investment exposures, but has concomitant exposure to loss if positive performance is not achieved.
Reliable information about the value of an investment in an alternative strategies fund may not be available
(other than at the fund’s infrequent valuation points).

Under our multi
-
management arrangements, we selectively appoint underlying sub
-
investment managers and
funds to actively manage underlying asset holdings in the pursuit of achieving mandated performance
objectives. Annual investment management fees are payable both to the multimanager and the manager of the
underlying assets at rates contained in the offering documents of the relevant portfolios (and may involve
performance fees where expressly indicated therein).

RMB Asset Management International Limited (Company Registration No. 3733094) is a member of the
FirstRand Group, and has its registered office at Two London Bridge, London SE1 9RA.

RMB Asset Management International Limited is authorised and regulated by the Financial Services Authority in
the United Kingdom, and is an authorised Financial Services Provider pursuant to the Financial Advisory and
Intermediary Services Act 37 of 2002 in South Africa.

© RMB Asset Management International Limited 2008

Important notes (continued)