WRAPS Storyboard Transact 2013

Email: [email protected] | Website: www.wealth-matters.co.uk | Tel: 01582 720511

Wealth Matters Ltd, 727 Capability Green, Luton, Bedfordshire, LU1 3LU Tel: 01582 720511 Fax: 01582 730179

www.wealth-matters.co.uk

Wealth Matters is directly regulated with the Financial Conduct Authority ref: 300635


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What is WRAPSTM?


•  A "Wrap Platform" is an internet-based investment account which enables you to register and view all of your UK financial assets on-line.

•  Think of it as internet banking for your investments •  Your whole portfolio can be analysed and quantified according to :

•  Money value •  Tax treatment •  Product type •  Asset allocation

Bond Account

Pension Account

ISA Account

General Account

Available tax wrappers:

What is a wrap platform?


Why use a wrap platform with Transact? •  It reduces fees, paperwork and allows you to

benefit from economies of scale

•  It allows you to access tax-efficient products, like ISAs, Pensions and Bonds in one place

•  It offers a ‘whole of market’ fund choice

•  It provides online valuations and performance reviews 24/7

•  It provides “clean” & competitive pricing using direct assets

•  Transact are based in London. They were established in 2000 and are profitable with more than £15 billion on the platform (as at March 2014)


Our Principles of Investing 1.  Analyse attitude to investment risk and discuss tolerance to volatility.

2.  Work out what you want to achieve from your investments and define the

time frame.

3.  Factor in your age, the investment term and your requirement for income or

capital growth (or both)

4.  ‘Investing’ requires ‘time in’ the markets, at least 10 years or more.

5.  Long term investing allows you to benefit from the effects of compounding.

6.  Diversify your portfolio using asset allocation models.

7.  Understand that risk and return are related

8.  Recognise the importance of costs and tax

9.  Don’t try to time markets or “cherry pick” popular stocks or asset classes.

10.  Keep market movements in perspective – Don’t make emotional decisions.

11.  Rebalance the portfolio at least annually.

12.  Make regular monthly investments to benefit from Pound Cost Averaging.

‘Discipline and planning are paramount to successful investing.’


Select appropriate portfolio

1. Very Cautious

2. Cautious

3. Conservative

4. Moderate

5. Confident

6. Adventurous

7. Intrepid


Choosing Funds WRAPSTM includes funds with the following criteria:

•  OEICs or Unit trusts only

•  Accumulation funds only

•  100% passive & index funds (non-predictive funds).

•  Cost-efficiency (low cost funds)

•  Low tracking error on index funds

•  Consistency of returns relevant to risk

•  Institutional funds (clean share class) which are not available direct to consumers

•  Transparency & Liquidity

•  Financially strong investment fund institutions

N.B. Wealth Matters are not paid by fund houses, so there is no bias on which funds we choose.


Quarterly Updates WRAPSTM offers quarterly news bulletins, which include:

•  Investment education and re-assurance

•  Fund switches made when appropriate at no cost

•  Advance notice given of any changes to your investment portfolio

•  Morningstar report provided

•  Focus Fund: one of the WRAPSTM funds is reviewed every quarter

•  Topical featured articles

N.B. Your valuation statements are available online 24/7


Annual Rebalance of Funds What is Rebalancing?

The rebalancing of investments is the action of bringing a portfolio that has deviated away from one's target asset allocation back into line. To rebalance we administer the necessary sales and buys in your portfolio to put it back to the original percentages. This allows you to lock in gains and minimise losses.

Example Portfolio: 2012

60% Equities 30% Bonds 8% Property 2% Cash

Same Portfolio: 2013

68% Equities 21% Bonds 9% Property 2% Cash

“According to additional research by Skandia, over a 10 year sample case, an annually rebalanced investment portfolio would return 14% more than the same portfolio if it had not been rebalanced. In addition, the rebalanced portfolio would have been less volatile.”

- Extract from Professional Adviser – 26/11/2009

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Future Expected Returns •  When investing it is important to set the right expectations regarding risk and return. •  The higher the risk, the higher the potential for return. Consequently, the more risk taken, the more the portfolio

experiences volatility (measured by Standard Deviation) and the greater the potential of capital loss. •  WRAPSTM consists of 15 funds, which are 100% institutional funds rather than retail funds; this keeps costs low. •  Dimensional Fund Advisors (DFA) and Vanguard – both American investment institutions, make up the core part of

our portfolios.

•  The actual performance of some of the DFA and Vanguard funds only goes back 3-5 years, since these institutions are rather new to the UK, but the benchmarks or indices most closely matched to these funds have a much longer history.

•  To this end, Wealth Matters have selected the most appropriate and relevant benchmark that each of our 15 funds represent, track or reflect. We have then back-tested the indices and our asset allocation models to 1989 to give an indication of what returns have been achieved, and what level of volatility has been endured.

•  The phrase “past performance is not a guide to future performance” typically refers to individual funds. But the

idea of back testing the indices is purposely to give a realistic level of future expected return and volatility.

•  Historical long-term trends of different asset classes gives us a better idea of future growth potential.


Growth of Wealth: WRAPSTM portfolios 1989-2013

Monthly: 07/1989 - 12/2013; Default Currency: GBP N.B. Performance data represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Graph represents a hypothetical investment of £1 over the time period shown. Performance includes reinvestment of dividends and capital gains.

Dec/13


Performance of our WRAPSTM Portfolios

Summary: Over a 25 year period to Dec 2013, one can see that the more risk taken, the more the annualized and cumulative return has been; but one can also note that the level of volatility (measured by standard deviation) is greater, as more risk is taken. Growth of Wealth above shows what £1 would have become. N.B. Performance data represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. The figures above represent a hypothetical investment of £1 over the time period shown. Performance includes reinvestment of dividends and capital gains.

Date Range: 07/1989 - 12/2013. Default Currency: GBP


The Randomness of Returns


The Potential for Gain and Loss N.B. The more risk taken, typically the more volatile the portfolio will be and the more the potential for gain and loss.


The Key to Financial Success

Present Future

£

Goal


Regular Client Reviews

Fee plans provide ongoing support which include a holistic and strategic

approach to financial planning, helping you reach your goals quicker and more

effectively.

Silver Plan (min £50,000 FUM*) £25 a month and £30 for couples All the benefits of Bronze Plan plus: •  Biennial Financial Review •  Fund value statements for all savings, Investments and pensions. •  Professional advice on maximizing your portfolio •  Focus on hitting financial goals •  Access to free re-mortgage advice See: http://tinyurl.com/bpdqbaq

Gold Plan (min £100,000 FUM*) £50 a month and £60 for couples All the benefits of Silver Plan plus: •  Annual Financial Review •  Detailed financial report of all existing policy holdings •  Cash flow analysis service •  Creative Tax Savings Strategies •  0800 number for unlimited free phone support •  Free invite to all Wealth Matters seminars and functions See: http://tinyurl.com/7ddvz26

Bronze Plan (min £20,000 FUM*) £15 a month (singles and couples) • Access to WRAPS™ • Login details to WRAPS™ online • Seasonal emails and newsletters • Access to an adviser by email and phone for ongoing advice • Access to administration support by email and phone for on-going support and service See: http://tinyurl.com/76rnrze

* Funds under management


What does it cost?

Initial

Switch

Policy Fees

Annual

Other financial planning

firms

1% - 3%

0.2% - 0.5%

£200 - £500 p.a.

2.26%*

Via Wealth

Matters

1.24%**

0.1%

£80 per annum pension

£12 per annum ISA

1.70%***

•  Researched by Mark Polson of The Lang Cat, an industry expert on adviser and platform charges. ** The breakdown is 1% to WM, 0.1% to Transact and 0.14% the cost of the funds (dilution levies and stamp duty) *** Annual Fee range from 1.41% - 1.97%. This is based on £50k portfolio (Intrepid) & £1.5 million (Very Cautious). The typical portfolio of £300,000 would pay 1.1% to WM, 0.325% to Transact and 0.27% for the funds. Total AMC includes: fees to WM, cost of funds and Transact platform. Many funds not available direct. Actual cost depends on size of portfolio and risk tolerance. Charges are lower the greater the size of the portfolio. The inclusive fee to WM gives you access to WRAPSTM – our investment strategy – which gives you at least 12 points of communication per annum, on-line access, continual investment advice and full administration support.


Wealth Matters Ltd, 727 Capability Green, Luton, Bedfordshire, LU1 3LU

Tel: 01582 720511 Fax: 01582 730179

www.wealth-matters.co.uk

Wealth Matters is directly regulated with the Financial Conduct Authority ref: 300635

Thank you for taking the time to read this presentation.

If you are interested to know more about the Wealth Matters

WRAPSTM investment strategy, please feel free to contact us:

Documents

WRAPS Storyboard Transact 2013