SWM ETF portfolios presentation
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Transcript of SWM ETF portfolios presentation
SECURE WEALTH MANAGEMENT
the ETF portfolio manager
Why ETFs?
The fastest-growing financial instrument globally: at end Dec 2015 there was over USD 3 trillion invested in ETFs, with
over 4,500 individual ETFs available for purchase (source: ETFGI)
During Q2 2015, ETFs overtook hedge funds, measured by total assets managed
Why the exponential growth?
ETFs offer several client-friendly advantages:
Low-cost: typical cost of a liquid ETF is 0.1% - 0.2% per annum
Liquidity: ETFs are some of the most liquid investment available anywhere, offering ease of purchase and sale
bid-ask spreads
Transparency: ETFs are completely transparent with regard to their holdings, performance and costs
Diversification: Every ETF typically contains between 100 and 1000 individual securities, providing a highly
investment vehicle
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Strong 7-year performance history
Strong track record for SWM ETF portfolios, dating back 7 years
Net returns ranging from c.3% for SWM fixed-income portfolio to c.16% for SWM equity portfolio (1 x leveraged)
Significant outperformance vs. benchmark for every single strategy on almost every time horizon
Almost no ETF portfolio managers outside the USA can claim a track record dating back 7 years. The industry in
Europe and in Asia is still in its infancy
SWM was the first pure-play ETF portfolio manager in Switzerland
Combined portfolio management experience of over 90 years on the SWM team
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SWM ETF portfolios
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SWM investment philosophy
SWM aims to provide clients with superior long-term risk adjusted returns within a transparent and low-cost framework
precise risk controls ensure that the volatility of a client’s portfolio remains within the defined range for their risk tolerance
both core and satellite positions are actively managed within each of our strategies
a blend of fundamental and proprietary technical analysis is used for asset selection and risk management
risk is managed using proprietary internal processes, and HeavyTails software from FNA (SWM’s strategic partner for risk management)
long put options are systematically employed to protect client capital
emphasis on protecting investors from material drawdowns whilst providing upside participation in-line with their risk appetite
SWM portfolio guidelines
fixed-income conservative balanced growth equity
3 month volatility below 5% below 5% below 10% below 12% below 15%
3 month beta vs MSCI World - 0.15 to 0.40 0.30 to 0.60 0.60 to 0.95 0.80 to 1.00
equity component 0% to 10% 15% to 40% 30% to 60% 60% to 95% 80% to 100%
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The SWM team
Mark Browne
Director
James Dougall, CFA
Managing Director, lead portfolio manager
Ved Vyas, CFA
senior portfolio manager
Alan Laubsch
independent risk oversight
Simon Pettigrew
portfolio analyst
Sujed Leangsakul
portfolio analyst
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conservative balanced growth equity fixed income
-0.55% -0.38% -0.81% -1.94% -0.52%
-1.03% -2.63% -1.66% 2.39% -1.97%
01-Oct-09 01-Oct-09 01-Jul-10 29-Sep-15 23-Sep-15
4.83% 5.30% 5.77% 7.78% 2.93%
5.79% 7.47% 11.85% 14.07% 3.96%
0.79 0.67 0.46 0.53 0.62
1.30% 0.88% 1.23% 2.48% 2.49%
24.28% 43.99% 68.69% 84.77% -
69.92% 45.45% - - 100.00%
- - 5.14% 4.38% -
1.80% 2.15% 2.59% 5.08% -
2.05% 2.02% - - -
0.67% 1.13% - - -
- 2.51% 2.50% 2.45% -
1.28% 2.74% 21.08% 3.33% -cash
fixed income
preference shares
commodities
property
options
currency
annualised net return since inception
annualised volatility since inception
Sharpe ratio
current yield
asset allocation
equity
portfolio performance
net return December 2015
net return 2015
inception date
SWM ETF portfolio snapshot*
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* figures correct as on 31st December 2015; performance figures for SWM fixed-income and equity ETF portfolios prior to inception date based on back-tested performance data
SWM ETF portfolio
performance versus benchmarks
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December 2015 performance last 3 years performance
2015 full-year performance last 5 years performance
* SWM fixed-income and equity ETF portfolio performance before inception is based on back-tested performance data and does not represent performance of actual SWM client portfolios
-0.55%
-1.16%
-2.64%
-1.95%
0.53%
-0.55% -0.38%-0.81%
-1.94%
-0.52%
conservative balanced growth equity* fixed-income*
benchmark SWM ETF portfolio
-3.88%-4.93%
-7.09%
-3.56% -3.15%
-1.03%
-2.63%-1.65%
2.39%
-1.96%
conservative balanced growth equity* fixed-income*
benchmark SWM ETF portfolio
0.83% 1.06% 2.74%
18.55%
-5.12%
8.85% 10.08%5.19%
29.64%
1.02%
conservative balanced growth equity* fixed-income*
benchmark SWM ETF portfolio
10.76% 10.55% 10.27%
27.66%
4.56%
21.58% 23.04%
10.32%
42.62%
18.07%
conservative balanced growth equity* fixed-income*
benchmark SWM ETF portfolio
figures correct as on 31st December 2015
BlackRock / SWM partnership
SWM has a partnership arrangement with BlackRock Switzerland
SWM co-brands with iShares/BlackRock, and implements elements of ETF Model Portfolio strategies supplied by BlackRock (MPS). This
assists us with our asset selection and risk management processes. The MPS form the basis for SWM’s Conservative and Balanced ETF
portfolios.
BlackRock’s ETF Model Portfolio solutions team is over 180-strong worldwide, providing a very significant resource for SWM
BlackRock Model Portfolio Solutions offer a single platform that delivers asset allocation, investment management, risk management
capabilities and investment views, and includes inputs from BlackRock’s proprietary quantitative risk management technology Aladdin
SWM is in direct contact with BlackRock’s 20-strong London-based ETF liquidity team, who provide information on off-market and pre-
market liquidity for SWM’s ETFs. The BlackRock team are also in contact with our execution partners Leonteq to ensure best execution for
our partner firms and their clients
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Financial Network Analytics (FNA)proprietary risk alerting technology
HeavyTails platform*
* correlation map as on 28th September 2015
FNA is a strategic partner of Secure Wealth Management
FNA’s HeavyTails software helps SWM sense and
respond to emerging systemic risks
HeavyTails provides visual insights from complex
financial data using network analysis techniques on
SWM’s universe of ETFs
combines correlation analysis with sigma (volatility)
analysis to provide a visual indicator of positive and
negative event outliers
detailed time series analysis, scenario and stress
testing algorithms
FNA implements cutting edge research in Financial
Cartography and collaborates with top universities
around the globe
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SWM investment process
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contact us
Secure Wealth Management
13 route de Florissant
CH-1206 Geneva
Switzerland
Tel: +41 22 354 8970
email: [email protected]
website: www.securewm.com
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disclaimer / risk warning
This document is intended for information purposes only and you should not take, or refrain from taking any action as a consequence of it,
without consulting a suitably qualified person. This document is not intended for use by persons located or resident in jurisdictions which
restrict the publication of this document or the availability of its content. The content of this document does not constitute an offer to sell or a
solicitation to purchase, nor an advice or a recommendation to acquire or dispose of any investment or to engage in any other transaction. This
document should not be distributed to, or used by, any person or entity, in any jurisdiction where such activities would be unlawful or where it
would require Secure Wealth Management Holding Limited Partnership. (“SWM”) or any of its affiliates to be registered, licensed, authorized,
approved or otherwise qualified. The information contained in this document is not intended to provide professional advice and should not be
relied upon in that regard. Investors are advised to obtain appropriate professional advice where necessary. Investment involves risks. Past
performance is not indicative of future results of an investment. The value of an investment may fall as well as rise and may become valueless
and investors may not be able to recover the amount invested. Investors are advised to contact the entity with which they deal, or the entity
that provided this document to them, if they require further information. The information in this document has been obtained or derived from
sources believed by SWM to be reliable, but SWM makes no guarantee, representation or warranty and accepts no responsibility or liability as
to its accuracy or completeness. Any opinions or estimates contained in this document represent the judgement of SWM at the time of the
publication of this document and are subject to change without notice.
The content of this document is protected by legal copyright and this document may not be reproduced or further distributed in whole or in part
for any purpose without the prior written consent of SWM.iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its
affiliates (“BlackRock”) and are used under license. BlackRock makes no representations or warranties regarding the advisability of investing
in any product or service offered by Secure Wealth Management Holding Limited Partnership, Christchurch, New Zealand, succursale de
Geneve, Suisse. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service
offered by Secure Wealth Management Holding Limited Partnership, Christchurch, New Zealand, succursale de Geneve, Suisse.
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