June 2012

Myddleton Croft Investment Managers Balanced Moderate Risk Model
Myddleton Croft Investment Managers KEY FACTS

Portfolio Risk Spectrum
June 2012
MANAGERS COMMENTARY Die fhigkeit, das wort "Nein" auszusprechen, ist der erste schritt zur freiheit. The ability to say the word "No" is the first step to freedom. On that basis perhaps freedom of the city of Brussels is in order for Frau Merkel or Frau Nein as she is affectionately known throughout the euro zone (EZ), given her contrary position on all matters bailout. Her recent comments were made prior to the last EZ summit to the effect that Europe will not have shared liability for debt as long as she lives. We will return to this theme later. In this edition we plan to look at one of our main issues in the market, the disparity between the status quo and expectation. Sometimes, in noisy markets where much has happened, it may be that woods and trees are indistinguishable and it pays to take a step back. Lets think back to August and September last year when markets fell close to 20% on concerns over growth and ongoing Greek debt issues. Let us compare then to now: The cold incubated in Greece has been revisited to Spain and Italy as influenza. The austerity enacted has started to harm growth throughout the EZ including Germany & UK. Growth looks a pipedream for southern Europe. The intervening period, which saw improved growth in the States, has fizzled away and slower growth as well as the fiscal cliff awaits in 2013. There has also been a substantial slowing in the engine of world growth, e.g. China. It would appear that the investment horizon has worsened; despite this we have seen only an 8% correction from 2012 highs in the UK market. It remains 12% above the October 2011 lows. Even European equities have failed to fall below the October lows and we find this difficult to comprehend unless markets are discounting a material resolution. Their reasoning must be that Ben Bernanke and Frau Merkel will relent and QE/Eurobonds will accrue. We were somewhat surprised at the outcome of the EU summit meeting - Germany relented on several issues. In particular, the bail-out of Spanish banks (in due course) will be directed to the banks, not via the Spanish sovereign balance sheet, and will not rank senior to other bond holders as in Greece. Ultimately, we see these as only modestly positive in the short term. Fundamentally this is another fix rather than a solution, for instance the EFSF/ESM firewall will not last long with several PIIGS at the trough. Whilst the stockmarkets reaction was strongly positive, we think there is a time limit on further progress toward an end solution, otherwise markets will be back in crisis mode again. Comments by Frau Nein on shared liability suggest they are a long way from agreement. Over the coming weeks and months we feel there is a risk of disappointment for Europe and that elsewhere expectations are quite high given the global slowdown. Keeping some powder dry to take advantage of this seems sensible. 2nd Quarter 2012 Review
Defensive Cautious Moderate Adventurous Highly Adventurous Speculative
1 2 3 4 5 9
Investment Managers Patrick Toes

Investment Director with over 20 years experience in fund management. Previously a member of Rensburg Sheppards Asset Allocation and Fund Selection Committees for over 9 years and former chairman of those committees at BWD Rensburg, he holds a MSC in Investment Analysis and is an Associate Member of the Society of Investment Professionals (ASIP). David Cowell Chief Executive, possessing over 40 years experience in financial services, with over 25 years being investment management focussed. David formulates the macro economic position and leads the investment process across the portfolio range. He also has over 10 years experience of business consultancy to small and medium sized enterprises.
For further information call :
0113 274 7700

Email : info@mcim.co.uk
Or visit us at : www.myddletoncroft.co.uk
IMPORTANT INFORMATION This communication is for professional investors only and should not be relied upon by private investors. This document is provided to illustrate Myddleton Croft Investment Managers model portfolios and is for information purposes only and does not constitute an advertisement, financial promotion or financial, professional or investment advice. Nothing in this document constitutes a recommendation suitable or appropriate to a recipient's individual circumstances. It should not be inferred that all portfolios will perform exactly the same as the model portfolios as other factors, such as capital gains tax & the time taken to invest the portfolio, may affect individual portfolio performance. Please remember that past performance is not a guide to future performance and that the value of investments may go down as well as up. Any opinions expressed are subject to change and may not be current views.
In the second quarter MCIMs moderate risk portfolio fell 0.8% but remains up 2.9% year to date. During 2012 the moderate risk portfolio is 0.2% higher than its benchmark. Our underweight and more defensively positioned equity exposure meant we drew down less than our benchmark; selling most of our exposure to Europe also helped. In late May, with stockmarkets technically oversold, we were pragmatic enough to add to the UK. We think that equities are no more than fairly valued, given the risk environment. We want to be opportunistic investors in this environment, hence our dry powder.
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE T: 0113 274 7700 F: 0113 274 7711 E-mail: info@mcim.co.uk Website: www.myddletoncroft.co.uk Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088. Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.

Balanced Defensive Risk Model KEY FACTS
June 2012
PORTFOLIO OBJECTIVE
To generate a portfolio with a balance of income and capital growth over the medium to long term by harnessing the higher return potential of equity markets. The model will seek to reduce the fluctuations in capital values inherent in equity investments through a significant allocation to fixed interest, commodities, absolute return/hedge funds and other non-equity vehicles. Over the medium term, a base case would be 40:60 allocation to equity and non-equity investments respectively. However this allocation is flexible and could vary between 30% and 50% in equities, dependent on valuation and risk. Portfolios are also available with an income or growth mandate.
1 2 3 4 5 9
Investment Profile
Balanced
PORTFOLIO KEY ATTRIBUTES

Performance Since Launch (Jan 2008)
Investment Managers
Patrick Toes Investment Director with over 20 years experience in fund management. Previously a member of Rensburg Sheppards Asset Allocation and Fund Selection Committees for over 9 years and former chairman of those committees at BWD Rensburg, he holds a MSC in Investment Analysis and is an Associate Member of the Society of Investment Professionals (ASIP). David Cowell Chief Executive, possessing over 40 years experience in financial services, with over 25 years being investment management focussed. David formulates the macro economic position and leads the investment process across the portfolio range. He also has over 10 years experience of business consultancy to small and medium sized enterprises.
3 Year Rolling Volatility
0113 274 7700

Asset Allocation
Performance Statistics

Balanced Cautious Risk Model KEY FACTS
June 2012
PORTFOLIO OBJECTIVE
1 2 3 4 5 9
Investment Profile
Balanced


0113 274 7700

Asset Allocation

Balanced Moderate Risk Model KEY FACTS
June 2012
PORTFOLIO OBJECTIVE
To generate a portfolio with a balance of income and capital growth over the medium to long term by harnessing the higher return potential of equity markets. The model will seek to reduce the fluctuations in capital values inherent in equity investments through a significant allocation to fixed interest, commodities, absolute return/hedge funds and other non-equity vehicles. Over the medium term, a base case would be 50:50 allocation to equity and non-equity investments respectively. However this allocation is flexible and could vary between 40% and 60% for each asset class, dependent on valuation and risk. Portfolios are also available with an income or growth mandate.
1 2 3 4 5 9
Investment Profile
Balanced


0113 274 7700

Asset Allocation

Balanced Adventurous Risk Model KEY FACTS
June 2012
PORTFOLIO OBJECTIVE
1 2 3 4 5 9
Investment Profile
Balanced

Investment Managers
Patrick Toes Investment Director with over 20 years experience in fund management. Previously a member of Rensburg Sheppards Asset Allocation and Fund Selection Committees for over 9 years and former chairman of those committees at BWD Rensburg, he holds a MSC in Investment Analysis and is an Associate Member of the Society of Investment Professionals (ASIP). David Cowell Chief Executive, possessing over 40 years experience in financial services, with over 25 years being investment management focussed. David formulates the macro economic position and leads the investment process across the portfolio range. He also has over 10 years experience of business consultancy to small and medium sized enterprises.
0113 274 7700

Asset Allocation

Balanced Highly Adventurous Risk Model KEY FACTS
June 2012
PORTFOLIO OBJECTIVE
1 2 3 4 5 9
Investment Profile
Balanced


0113 274 7700

Asset Allocation

Balanced Speculative Risk Model KEY FACTS
June 2012
PORTFOLIO OBJECTIVE
1 2 3 4 5 9
Investment Profile
Balanced


0113 274 7700

Asset Allocation

Enhanced Income Portfolio KEY FACTS PORTFOLIO OBJECTIVE
The objective of the Enhanced Income Portfolio is to target a 6% return of which 4% can be distributed either half yearly, yearly or rolled up. The secondary aim is to provide a degree of protection against the effects of inflation. The portfolio is predominantly invested in bonds, which will comprise 70% of the allocation on average with the balance invested in equities, absolute return and commodities. The Enhanced Income Portfolio was launched at the beginning of 2011. It should be noted that the performance and volatility data before that date (presented below) is from the back-tested portfolio and is provided for illustration purposes only.
Q2 2012
Investment Profile
Investment Managers Patrick Toes Investment Director with over 20 years experience in fund management. Previously a member of Rensburg Sheppards Asset Allocation and Fund Selection Committees for over 9 years and former chairman of those committees at BWD Rensburg, he holds a MSC in Investment Analysis and is an Associate Member of the Society of Investment Professionals (ASIP). David Cowell Chief Executive, possessing over 40 years experience in financial services, with over 25 years being investment management focussed. David formulates the macro economic position and leads the investment process across the portfolio range. He also has over 10 years experience of business consultancy to small and medium sized enterprises.
EIP

Back-tested performance since Jan 2008
0113 274 7700

Asset Allocation

June 2012

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Myddleton Croft Investment Managers Balanced Moderate Risk Model

Myddleton Croft Investment Managers KEY FACTS

Defensive Cautious Moderate Adventurous Highly Adventurous Speculative

Investment Managers Patrick Toes

For further information call :

0113 274 7700

Myddleton Croft Investment Managers Balanced Moderate Risk Model

Defensive Cautious Moderate Adventurous Highly Adventurous Speculative

PORTFOLIO KEY ATTRIBUTES

3 Year Rolling Volatility

For further information call :

0113 274 7700

Myddleton Croft Investment Managers Balanced Moderate Risk Model

Defensive Cautious Moderate Adventurous Highly Adventurous Speculative

PORTFOLIO KEY ATTRIBUTES

Investment Managers Patrick Toes

3 Year Rolling Volatility

For further information call :

0113 274 7700

Myddleton Croft Investment Managers Balanced Moderate Risk Model

Defensive Cautious Moderate Adventurous Highly Adventurous Speculative

PORTFOLIO KEY ATTRIBUTES

Investment Managers Patrick Toes

3 Year Rolling Volatility

For further information call :

0113 274 7700

Myddleton Croft Investment Managers Balanced Moderate Risk Model

Defensive Cautious Moderate Adventurous Highly Adventurous Speculative

PORTFOLIO KEY ATTRIBUTES

3 Year Rolling Volatility

For further information call :

0113 274 7700

Myddleton Croft Investment Managers Balanced Moderate Risk Model

Defensive Cautious Moderate Adventurous Highly Adventurous Speculative

PORTFOLIO KEY ATTRIBUTES

Investment Managers Patrick Toes

3 Year Rolling Volatility

For further information call :

0113 274 7700

Myddleton Croft Investment Managers Balanced Moderate Risk Model

Defensive Cautious Moderate Adventurous Highly Adventurous Speculative

PORTFOLIO KEY ATTRIBUTES

Investment Managers Patrick Toes

3 Year Rolling Volatility

For further information call :

0113 274 7700

Myddleton Croft Investment Managers Balanced Moderate Risk Model

PORTFOLIO KEY ATTRIBUTES

For further information call :

0113 274 7700

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