Caspar Rock

Architas Quarterly Investment Review – Caspar Rock

Q4 2011 was much more positive than Q3 2011
European politicians finally realised they had to sort out the Eurozone, the comparative failure of German
Bund auction was key to this
US economic data showed persistent improvement
China’s inflation rate peaked and began to come down

Major themes the Architas Multi-Manager team are focused on
Valuations within equity markets are attractive – but some parts of the world offer better value than others
Quality and stability of earnings growth
Income generation a vital consideration

Actively managed Multi-Manager funds of funds have performed well
Those in the range with higher equity content have done better than those with more fixed income
Architas had focused on fixed income managers that were shorter duration than the overall peer group –
this has been a negative in Q4 2011
Architas had a big exposure to credit and less exposure to government bonds in Q4 – which proved a negative
Despite this long term records of the fund of funds range remain very strong

The Multi-Asset passive fund range all rose during Q4 2011
All the portfolios are diversified across assets
All helped by their weighting towards longer duration gilts

Capital-protected funds
All provided positive returns in Q4 2011
All conservatively invested as markets are volatile
Three products in the range: Protector 70, Protector 80 and Protector 85

Outlook for 2012
US economy has been strengthening at the end of 2011 and investors are looking to see if this is a
sustainable trend
Important to get greater visibility and improvement in the Eurozone debt situation
There is plenty of political risk ahead: not just with elections in the US but in Europe too
Uncertainty remains on economic growth in the developed world
Important to focus on quality assets and income

Important Information

Important Information Issued by Architas Multi‐Manager Limited, which is authorised and regulated by the Financial Services Authority. The value of investments and the income from them can fall as well as rise and is not guaranteed which means your clients could get back less than they invest. Past performance is not a guide to future performance. Investments in newer markets, smaller companies or single sectors offer the possibility of higher returns but may also involve a higher degree of risk. The value of investments can fall as well as rise purely on account of exchange rate fluctuations. You can invest in the funds mentioned in this video through a number of financial products. They are intended to be medium (at least five years) to long terms (over 10 years) investments. In the case of the Protector funds (referred to in this video as Capital Protected Funds), there are some circumstances where the protection may fail: If market conditions decline so suddenly that the manager cannot rebalance the fund investments; If there is an adverse change in the tax treatment; If a counterparty defaults by failing to repay capital and interest. Please note that the funds do not aim to protect all of your client’s investment nor do they guarantee any of your client’s investment. The value of investments and the income from them can fall as well as rise and your clients could get back less than they invest. This video does not constitute an offer to sell or buy any share in the Fund. Information relating to investments is based on research and analysis undertaken or procured by Architas Multi‐Manager Limited for its own purposes and may have been made available to other members of the AXA Group of Companies which, in turn, may have acted on it. Whilst every care is taken over these comments, no responsibility is accepted for errors and omissions that may be contained therein. It is therefore not to be taken as a recommendation to enter into any investment transactions. AXA is a worldwide leader in financial protection and wealth management. In the UK, one of the AXA companies is Architas Multi‐Manager Limited, an investment company that provides access to other investment managers’ services through a range of multi‐manager solutions, including regulated collective investment schemes. Architas Multi‐Manager Limited is a company limited by shares and authorised and regulated by the Financial Services Authority. It is registered in England: No. 06458717. Registered Office: 5 Old Broad Street, London, EC2N 1AD. As part of our commitment to quality service, telephone calls may be recorded. For Financial Adviser use only. Not to be provided to, or relied upon by, retail clients