FP Thoroughbred Core Alpha - January 2015 All data as at 31.12.2014 F U N D FUND MANAGER INCEPTION DATE LAUNCH PRICE FUND SIZE MINIMUM LUMP SUM INESTMENT ASSISTANT FUND MANAGER FUND CURRENCY SHARE TYPES Simon Gibson 03/03/2009 100p B £7,339.14 C* £58,070,383.16 TOTAL EXPENSE RATIO (TER) AS AT 31/07/2014 B (retail) £3,000 C (instit)* £20,000 MINIMUM MONTHLY SAVINGS F A C T S BENCHMARK SECTOR PRICING BASIS Dale Inman GBP Acc B 1.55% C* 1.05% ANNUAL MANAGEMENT CHARGE (AMC) £100 collecting on th 10 each month WMA Stock Market Balanced Portfolio Index IMA Mixed Investment 40-85% Shares Forward – pricing at 12 noon B 0.75% C* 0.25% INITIAL CHARGE B nil C* nil WMA refers to the Wealth Management Association. IMA refers to the Investment Management Association. FUND AIM MANAGERS PROFILE INVESTMENT PHILOSOPHY The aim is to achieve long-term capital growth by the active management of a global multi-asset portfolio. Simon Gibson has been the Fund Manager since launch in 2009. IMC qualified, Simon is a director of Mattioli Woods and has over 27 years investing experience, having spent the last 23 of these managing private client portfolios. This is the first sub-fund under the FP Thoroughbred Funds ICVC banner, and builds on ten years of asset allocated portfolios run by the team, using a global, multi-asset approach. The aim of achieving long-term growth is paired with a desire to manage volatility so that, other than on very short-term measures, positive comparable returns come with lower volatility than the benchmark. Dale Inman is the Assistant Fund Manager and has worked with Simon for over seven years, working on the portfolio fund since launch. The key performance attributes that should enable us to best meet client requirements are strong investment disciplines, adherence to our aims and robust risk controls. TOP 10 HOLDINGS 1 2 Stan Life Glb Abs Return Strategies Henderson UK Property 6 7 Vanguard S&P 500 ETF Pictet Water 3 First State Asia Pacific Sustainability 8 ETFS Physical Gold 9 Threadneedle UK Equity Income 10 Kames High Yield Bond 4 5 Invesco Perpetual UK Strategic Income Artemis UK Growth FUND CODE SEDOL ISIN B B5ZMXV7 C* B5ZMXX9 GB00B5ZMXV77 GB00B5ZMXX91 * Share Class C is restricted for internal use by the Discretionary Portfolio Management team at Mattioli Woods, as the core of their asset allocated Model Portfolio approach, with cash also held for balance. FUND COMPOSITION ONE YEAR PERFORMANCE 4.55% 5.05% 7.23% 4.99% Source: Morningstar NAV to NAV 01/01/14 –31/12/14 Totals are rounded from source data so may not sum 100% FUND MANAGER COMMENTARY MARKET REVIEW December proved to be a challenging month for many equity markets as the falling oil price unnerved investors. Such a precipitous fall could cause unknown stresses in the financial system and also points to anaemic global demand, and/or oversupply. My personal belief is that it has more to do with the latter than the former. The eurozone made its way back into the headlines as Greece returned to crisis and elections loom there in late January. Fears over deflation are likely to lead to Quantitative Easing in the eurozone and it looks as though rate rises at home are some way off. Low inflation expectations continued to benefit gilts and higher-quality corporate debt. For the year as a whole, we have seen investors lose some of their risk appetite, initially due to geopolitical risks, and more lately due to more economic fundamentals. FUND REVIEW It is pleasing to note the positive absolute performance of the fund over the month, particularly when the two comparison indices have lost value - with the UK proving a key performance differentiator. Within equities the UK All Companies and UK Smaller Companies holdings both posted gains whilst the wider FTSE All Share index fell in value and UK Physical Property was also a strong contributor with the asset class continuing to outperform cash and inflation. Elsewhere in the portfolio, Physical Gold also added to returns, as did as my preference for Chinese equities relative to wider Emerging Markets. The absolute return fund underperformed, but over the last year has been very helpful in both returns and reducing volatility. ACTIVITY December saw no trades on the fund. Whilst I remain comfortable with the fund’s position in terms of both Asset Allocation and the underlying holdings, I remain alert and regularly review these to make sure there are no nasty surprises. For example, I have recently been reviewing High Yield holdings in light of the oil price collapse. OUTLOOK AND POSITIONING 2014’s performance was impacted by the fund’s underweight position in US equities and the lack of exposure to gilts. The reasoning for this positioning still seems convincing based on valuations and I envisage no change here. Concerns in the eurozone may perversely mean the markets benefit from the “remedy” of quantitative easing - uncertainty and structural problems remain. Oil looks as if it could settle down, at a lower level for a while, and the outlook for global growth remains mixed. The portfolio continues to deliver below average volatility relative to the benchmark and it is pleasing to see the outperformance in December considering the risks the fund is taking and the cautious approach. All figures quoted in the commentary are from Morningstar unless stated otherwise This document is issued by Atkinson Bolton Consulting and should be read in conjunction with the Fund's Simplified Prospectus which will exclusively form the basis of any application. Past performance is not a guide to future performance. The price of shares and the income from them can go down as well as up. Investors may not get back the full amount originally invested. A comprehensive list of risk factors is detailed in the Simplified Prospectus and an investment should not be contemplated until the risks are considered fully. Current tax levels and relief are liable to change and their value will depend on individual investors circumstances. If you are unsure about any information contained within this document you should take independent advice. Atkinson Bolton Consulting is authorised and regulated by the Financial Conduct Authority. Fund Partners Limited (formerly IFDS Managers Limited) is the Authorised Corporate Director (ACD) of the Fund and is authorised and regulated by the Financial Conduct Authority. Registered Office: Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB.