Introduction

1
Introduction to Close Private Bank group of
companies and Close All Weather Fund
Gen-CLAWJan06
Introduction
Member companies of the Close Private Bank group
of companies (CPB) are licensed by the Guernsey
Financial Services Commission to provide banking,
investment, safe custody, asset management and
trust services in Guernsey. In Jersey, member
companies of CPB are regulated by the Jersey
Financial Services Commission to conduct
investment business and trust company business.
In the Isle of Man, are licensed by the Isle of
Man Financial Services Commission to conduct
banking, investment business and corporate
service provider business. None of the member
companies or their subsidiaries provide tax or
legal advice. All the member companies of Close
Private Bank are ultimately owned by Close
Brothers Group Plc which is listed on the London
stock exchange.
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Close Brothers Group
Close Brothers has traditionally adhered to a c
onservative, low risk
approach to business
Close Brothers Group plc is the largest indepe
ndent merchant banking group listed on the Lond
on
Stock Exchange
Growth has been Achieved through a strategy of
providing clients With high quality service, in
tegrity, continuity uncompromising profession
alism
Close Private Bank provides Offshore Financial
Services
In excess of 5 billion client
assets under management substantial funds u
nder administration
Founded in 1878 CBG employs more than 1,900 peo
ple is amongst the 200 largest companies, meas
ured
by market Cap listed on the LSE
The bigger picture
Introduction
Close
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Credit Rating Letting you advise with
confidence.
F1
Close offering client security
Introduction
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The competition
The above table is not an exhaustive list but
rather a sample of commonly used banks.
Source Fitch IBCA December 2004
Keeping clients money close
Introduction
Close
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So, why use Guernsey, Jersey or Isle of Man?
A world of opportunity
Introduction
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Introduction
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Wealth Management for Todays World
Introduction
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All Weather Investing
Jan 2006 figs Gen
Close
All Weather
Introduction
In Jersey, member companies of Close Private Bank
group of companies conduct business from offices
at Kingsgate House, 55 Esplanade, St Helier and
are regulated by the Jersey Financial Services
Commission to conduct investment business and
trust company business. Member companies are
Close Trust Company Jersey Limited and Close
International Asset Management Limited. In the
Isle of Man, member companies of Close Private
Bank group of companies conduct business from
offices at St George's Court, Upper Church
Street, Douglas and are licensed by the Isle of
Man Financial Services Commission to conduct
banking, investment business and corporate
service provider business. Close Private Bank is
the registered trading name of Close Bank (Isle
of Man) Limited, Close Investment Management
(Isle of Man) Limited and Close Trustees (Isle of
Man) Limited. In South Africa, Close
International Asset Management Limited is
registered with the Financial Services Board as a
financial services provider. All the member
companies of Close Private Bank are ultimately
owned by Close Brothers Group plc and a full list
of Close Brothers Group companies can be obtained
from their website www.closebrothers.co.uk/comp.ht
m.
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What clients are demanding
interest rates are low
Income
Lower risk products
still want capital returns
this currently requires large sums of capital
Diversification
often restricted to institutional investors
Access to expertise
guaranteed structures are fixed for 3 to 7 years
Less willing to tie up capital
Clients are wary of costs
diversification or structured products can be
expensive
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The challenge pyramid for advisors
Advise with Confidence
The Advisor
Confidence in Product
Confidence in Support
The Product Provider
Solutions for Risk Reward
Attractive Flexible Pricing
High Level Advice
Client Demand
Increased Regulation
More Accountability
Advice not Investment Management
Demonstrate Qualification
The External Environment
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The task at hand
We had to create a solution which addresses
client demand, within a single investment
strategy.
Diversification
Growth
Income
Risk vs. Return
Access to the Best Expertise
Affordable Entry
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Creating a single solution The Close All
Weather Fund
Multi Manager
Multi Asset
Multi Currency
Multi Style
Affordable Entry
Low Risk
Growth
Income
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Putting it together - diversified best of the
best
Alternative Fund Universe
Diversification across asset component
Diversification at stock level
Bonds Fun Universe
Equity Fund Universe
Property Universe
Diversification across investment style
Diversification across manager
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So how do we select the funds?
Activities of Multi Fund Managers
Research managers
Identify most attractive Managers
Construct risk controlled portfolio
Monitor performance and asset allocation weighting
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Fund managers covered
Available to the Fund
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Preferred List
100
Funds Monitored
2000
Est. Funds Available
51000
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Management resource research
The All Weather Investment Manager
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Our unique approach
Equal Weight Multi Asset
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A look at the numbers
Equity, Bond All Weather Model Statistics
Between 1993 2002
Compound Ann. Return
Worst 12 Month Perf.
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Understanding different assets
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A look at the numbers
Year by Year Comparative Returns
All Weather Model (GBP) v Underlying Components
30.00
20.00
10.00
Annual Growth
0.00
1994
1995
1996
1997
1998
1999
2000
2001
2002
Year to
Date
-10.00
-20.00
-30.00
Equities
Fixed Interest
All Weather Model
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A look at the numbers
Worst Rolling 12 Month Return
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Core investing
Add satellite funds to the core to alter the risk
reward profile to meet your clients requirements.
Return
High
All Weather _at_ the core
Low
Risk
High
Low
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Example CLAW Sterling Performance Facts as at
17th January 2006
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Example CLAW Sterling Performance - Monthly
Returns Facts as at 17th January 2006
1.85
Cumulative Performance 12 months
YTD
9.92
1.97
Standard Deviation Fund Equities
Best Month
0.92 2.45
Worst Month
-1.68
a volatility measure, higher number implies
higher risk
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Example CLAW Euro Performance Facts as at 17th
January 2006
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Example CLAW Euro Performance - Monthly
Returns Facts as at 17th January 2006
1.67
Cumulative Performance 12 months
YTD
8.80
2.00
Standard Deviation Fund Equities
Best Month
0.91 3.01
Worst Month
-2.25
a volatility measure, higher number implies
higher risk
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Example CLAW US Dollar Performance Facts as at
17th January 2006
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Example CLAW US Dollar Performance - Monthly
Returns Facts as at 17th January 2006
1.21
Cumulative Performance 12 months
YTD
5.62
2.16
Standard Deviation Fund Equities
Best Month
1.02 3.02
Worst Month
-2.19
a volatility measure, higher number implies
higher risk
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Health Warning
This investment strategy should be viewed as
medium term and should ideally be held for at
least five years. Past performance is not a
guarantee of future performance. The price of
units or shares and the income from them can go
down as well as up and may be affected by changes
in rates of exchange. An investor may not receive
back the amount initially invested.
Close International Asset Management Limited,
which is a wholly owned subsidiary of Close
Brothers Group Plc and is regulated in the
conduct of investment business by the Jersey
Financial Services Commission and the Guernsey
Financial Services Commission. In South Africa,
Close International Asset Management Limited is
registered with the Financial Services Board as a
financial services provider. Source Modeling and
back-testing of the various components extracted
from Bloomberg, Micropal and Investment Property
Databank were carried out as follows Equities -
FTSE All Share Total Return (daily Index),
Bonds - JP Morgan UK Government Bond Total Return
(daily index) and the Close Finsbury
International Euro Income Bond Fund (Euro bond
returns), Property - IPD Property Total Return
(annual index), Alternative Strategy/Hedge -
Tremonth Hedge Fund Total Return (monthly
index). (Although this Index is not based, it
is the view of the Manager that it would be
misleading to translate the Index because All
Weather will normally use alternate strategy /
house fund vehicles denominated in the same
currency as the particular All Weather share
class, and the managers of these vehicles will
hedge currency exposure. Consequently,
volatility will be considerably reduced.
However, no allowance has been made for the
effect on performance of the cost of such hedging
or the effect of interest earnings, where the
effect could be positive or negative, dependant
on interest rate differentials between
currencies.) 1986 to 1993 fixed interest, equit
y property performance was given a 1/3 weight
which was increased to 1/4 weight with the
inclusion of hedge strategies from 1994 onwards.
Back tested performance is no indication of
future performance. The values of underlying
components may fall as well risel and investors
might not get back the capital they originally
invested.
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Contacting Us
Jersey Close Investment Services P O Box 373, K
ingsgate House, 55 Esplanade, St Helier, Jerse
y, JE 4 8UQ Fund Desk Telephone [phone]
Fax [phone]
or
Isle of Man Close Private Bank P O Box 203, St
Georges Court, Upper Church Street, Douglas Isl
e of Man, IM99 1RB Telephone [phone] Fax
01624 622039
Guernsey Close Private Bank P O Box 116, Trafal
gar, Court Admiral Park, St Peter Port Guernsey
, GY1 3EZ Telephone [phone] Fax 01481
711594
Web site www.closepb.com Email offshorefunds_at_c
losepb.com or investjsy_at_closepb.com
All Weather
Contact
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