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Harnessing the insights of big dataA new world disorder?
Wednesday 3rd May 2017
Mary-Anne Daly, Deputy Chief Executive
Welcome
9.30 am Registration and coffee
10.00 am WelcomeMary-Anne Daly, Deputy Chief Executive
10.05 am The global economyRichard Jeffrey, Chief Economist
10.20 am Investment strategy in a new world disorderCaspar Rock, Chief Investment Officer
10.35 am Trump – the personality, the presidency and the “finely tuned machine”Emily Maitlis, Journalist and BBC Newsnightpresenter
11.00 am Harnessing the data delugeAlex Tedder, Head of Global Equities, Schroders, and Ben Wicks, Head of Research Innovation, Schroders
11.25 am Tea and coffee
11.50 am Making money from mathematicsDavid Harding, Founder and Chief Executive Officer, Winton
12.15 pm Q&A
12.35 pm Baby booms and the world economyLord Willetts, Executive Chair of the Resolution Foundation; former Minister for Universities and Science
1.00 pm Drinks and light lunch
Programme
2
Richard Jeffrey, Chief EconomistThe global economy
The global economy at a glance
Advanced economies vs. emerging markets GDP growth
Consensus forecast for GDP growth
Source: Datastream.
This is normal
5
1.7 1.9 2.0
4.4 4.7 4.9
-2
-1
0
1
2
3
4
5
6
7
8
2010 2011 2012 2013 2014 2015 2016 2017 2018
% Y
oY
Developed markets Emerging markets
Consensus forecasts
World growth vs. world trade (% YoY) Intra/extra-eurozone trade (€ billion)
World trade
Source: Datastream.
A slow fix
6
60
80
100
120
140
160
180
200
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
With countries inside the eurozoneWith countries outside the eurozone
-20
-15
-10
-5
0
5
10
15
20
-6
-4
-2
0
2
4
6
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
World growth World trade (RHS)
US Eurozone
Inflation
Source: Datastream. “Core” inflation excludes food and energy.
The deflation scare becomes a distant memory
7
UK
-3
0
3
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
% Y
oY
Headline Core
-3
0
3
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
% Y
oY
Headline Core
-3
0
3
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
% Y
oY
Headline Core
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
%
US Federal funds rate European Central Bank main refinancing rate
Bank of England official Bank rate
Monetary policy
Source: Datastream.
The tone of the debate begins to change
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
%
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
%
8
Expenditure contributions to UK GDP growth Consensus forecasts through time
UK GDP growth
Source: Datastream, Bloomberg, Cazenove Capital. ^Based on average of City forecasts in April.
Contributions and consensus forecasts
9
GDP growth
Household consumption
Government expenditure
Fixed investment
Net trade
Inventory change
2014 3.1 1.4 0.5 1.1 -0.4 0.5
2015 2.2 1.5 0.3 0.6 0.0 -0.2
2016 1.8 1.9 0.2 0.1 -0.4 0.0
2017F^ 1.7 1.2 0.2 0.0 0.7 -0.3
2018F^ 1.3 0.7 0.1 0.1 0.4 0.0
0
0.5
1
1.5
2
2.5
Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17%
YoY
2016 2017 2018
European political calendar
European politics in focus
Source: Schroders, Cazenove Capital.
The political merry-go-round
Country Date Event
Netherlands 15th March General election
France 23rd April and 7th May Presidential election
UK 8th June General election
France 11th June – 18th June Parliamentary elections
Germany 24th September Federal elections
Italy Possibly in 2017 Early general election
10
UK general election 2017Voting intentions
Source: Wikipedia/Absolutelypuremilk. UK Opinion Polling for the 2017 election including polls which started on or before 21st April 2017 (moving average is calculated from the last ten polls).
11
Joining the dots: investment, productivity and remuneration
US Eurozone
Productivity (output per worker)
Source: Datastream.
Where did it all go wrong?
13
UK
-4
-2
0
2
4
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
% Y
oY
-4
-2
0
2
4
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
% Y
oY
-4
-2
0
2
4
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
% Y
oY
UK productivity vs. GDP growth
UK productivity vs. GDP growth
Source: Datastream.
14
-6
-4
-2
0
2
4
6
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
% Y
oY
UK GDP growth UK productivity growth
UK productivity vs. trend
UK productivity
Source: ONS.
A lost opportunity
20
40
60
80
100
120
140
1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014
Inde
x le
vel
Output per worker Output per worker (trend)
21%
15
Labour market inputs to UK GDP growth
UK GDP growth
Source: Datastream.
What about the workers?
16
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1993 2010 2013 2014 2015 2016 2017 2018
to 2007 to 2016 Forecast Forecast
%
Productivity Workforce size Employment rate
UK GDP vs. real household disposable income
UK GDP growth vs. real household disposable income
Source: Datastream.
The official headlines
17
-6
-4
-2
0
2
4
6
8
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
% Y
oY
UK real household disposable income UK real GDP growth
UK productivity vs. real wages and salary per employee
UK productivity vs. wage growth
Source: Datastream.
Pounds in your pocket
18
-4
-3
-2
-1
0
1
2
3
4
5
6
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
% Y
oY
Productivity - output per worker Real wages and salary per worker
Capital investment (ex-transport and construction), inflation-adjusted
UK fixed investment
Source: Datastream.
Not worth the risk?
19
-15
-10
-5
0
5
10
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
% Y
oY
Actual Trend
UK productivity growth vs. UK 10-year gilt yield, inflation-adjusted
UK productivity growth vs. bond yield
Source: Datastream. Past performance is not a guide to future performance.
The law of unintended consequences
20
-4
-2
0
2
4
6
8
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
%
UK 10-year gilt yield (real) UK productivity growth (YoY)
Conclusion
Can you spot The Unbelievable Truth?
Investment and productivity growth are depressed, despite low interest rates
orInvestment and productivity growth are depressed,
because of low interest rates
21
Caspar Rock, Chief Investment Officer
Investment strategy in a new world disorder
Market reviewReturns to a GBP based investor (all figures in %)
Source: Datastream.*Total returns. ^Total returns of BofAML US treasuries all maturities, FTSE UK government all maturities, BofAML Germany government all maturities. Past performance is not a guide to future performance. 31st March 2017.
23
Equities*
2016 Q1 2017
MSCI World +29.0 +5.3
FTSE 100 +19.1 +3.7
FTSE 250 +6.7 +5.4
MSCI EM +33.1 +10.2
Fixed income^
2016 Q1 2017
US treasuries +20.6 -0.5
UK gilts +10.1 +1.6
German bunds +20.5 -0.6
Currencies vs. £
2016 Q1 2017
US$ +16.2 -1.2
Euro +13.7 +0.2
Japanese yen +18.7 +3.3
Chinese yuan +10.3 -0.4
Commodities
2016 Q1 2017
Brent crude oil +89.5 -8.3
Copper +40.0 +4.1
Gold +31.0 +6.5
Bloomberg Index +33.3 -3.5
–Overweight US equities
–Remained bullish on the dollar
–Good performance from absolute return minded managers – Troy and Ruffer
–Continued emphasis on non GBP exposure in all portfolios
–Switch to UK large cap
– Increased weighting in Gold and Alternatives
–Strong performance of UK and US Index-Linked holdings
–Continued strong performance of government bonds
–Active equity managers struggled in a market with violent rotations
–Neutral equities in ultimately a strong year for risk assets
Our report card for the past year
24
Positives Negatives
What is a cynic?
Source: Gettyimages.
“Knowing the price of everything and the value of nothing….”
25
Who doesn’t seem to care about the valuation of individual bonds or shares?
26
Tracker Funds that buy every stock in the index
Pension funds that are buying Index-linked Gilts to hedge their liabilities
How to create unloved and ‘orphaned’ assets
27
The impact of bond rating agencies on portfolios…
The impact of index changes
on prices
The impact of regulators on certain areas of the market
The poor performance of passive funds
28
Property High-yield
The penetration of passives in the US equities market
Source: Morningstar, BAML, ICI.
29
0
5
10
15
20
25
30
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
%
30
But buying an active fund must be an active decision
31
Active
Passive
Why hold alternatives in a portfolio?
32
Risk
Return
Complexity/liquidity
A framework for thinking about portfolios
33
FundamentalsValuation
Sentiment
Developed vs. emerging markets GDP growth The world economy has started 2017 strongly
A positive economic backdrop
Source: Schroders, Cazenove Capital. Forecasts are not a reliable indicator of future performance.
Synchronised growth in developed and emerging economies
1.7 1.9 2.0
4.44.7 4.9
-2
-1
0
1
2
3
4
5
6
7
8
2010 2011 2012 2013 2014 2015 2016 2017 2018
% Y
oY
Developed markets Emerging markets
Consensus forecasts
34
Headline CPI inflation in major economies Core CPI inflation in major economies
Higher commodity prices driving headline inflation
Source: Datastream, Cazenove Capital. Forecasts are not a reliable indicator of future performance.
Core inflation to be supported by secondary effects
-3
-2
-1
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
% Y
oY
US UK Eurozone
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017%
YoY
US UK Eurozone
35
Source: Gettyimages.
36
ValuationIs anything cheap?
37
–Synchronised growth in developed and emerging economies
– Inflation trending up in major economies
–Major central banks face rising pressure to normalise policy
–European politics in focus in 2017
–Gilts remain expensive
–European equity valuations are more attractive than those in the US
–We are no longer US$ bulls
–Emerging markets and Asia are becoming more attractive
Investment views
38
Key macro
themes
Key investment
views
Equity Fixed Income Alternative Cash
Neutral Negative Positive
Emily Maitlis, Journalist and BBC Newsnight presenter
Trump – the personality, the presidency and the “finely tuned machine”
Alex Tedder, Head of Global Equities, Schroders, and Ben Wicks, Head of Research Innovation, Schroders
Global Equities: Harnessing the data deluge
“The stone age was marked by man's clever use of crude tools; the information age, to date, has been marked by man's crude use of clever tools.”
(anonymous)
The age of information
41
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Dec
03
Sep
04
Jun
05
Mar
06
Dec
06
Sep
07
Jun
08
Mar
09
Dec
09
Sep
10
Jun
11
Mar
12
Dec
12
Sep
13
Jun
14
Mar
15
Dec
15
Sep
16
Relative returns for 5th percentile funds
Financial markets More developed = fewer inefficiencies (example US Equity)
Source: Morningstar, Morningstar Category = US Large-Cap Blend Equity, primary share in GIFS Classification = Offshore Territories. Returns are net in USD. 5 year p.a. rolling relative returns on a quarterly basis. Past performance is not a guide to future performance.
42
(%)
Active & Passive equity fund flows in $bn, 12m rolling
Passive aggressive
Source: Citi Research as at 31 March 2017.
-600
-400
-200
0
200
400
600
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Global Passive Equity Flows (12m rolling) Global Active Equity Flows (12m rolling)
43
($bn)
How the Chartered Financial Analyst qualification took off
Who’s killing the Active Fund Manager?CFA’s have flooded the market
Source: CFA Institute.Figures until 2005 show number of annual examination candidates; figures from 2006 show number of holders of CFA qualification.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
44
It’s sometimes difficult to understand the scale of the problem when it comes to making sense of data.
Computers think in numbers, so making sense of a book or a company annual report is difficult for them – a typical book is over a million numbers (about a megabyte).
The world publishes over 2.2 million books per year, and photo uploads to social media duplicate this volume of data every 49 seconds.
Video streaming eclipses this again, with Netflix streaming covering the same volume of data as 1 year of photo uploads every 15 seconds.
The information explosion
Note: numbers indicate uncompressed data volumes. Compression significantly reduces the actual bandwidth consumed by these services.
45
As the volume of data has increased, so too has the available storage and processing power of computers.
But there’s a problem. As data and processing power have grown exponentially, the volume of calculations we could perform has grown even faster – it has grown factorially.
Attempting to compare every data series to every other series is incalculable.
Keeping pace with the data delugeMoore’s law helps us keep up… or does it?
Source: Schroders. Estimates derived from Moore’s law and combinatorial mathematics.
1980 1985 1990 1995 2000 2005 2010 2015
Growth of computing power
Growth of data
46
You have 100 pebbles, and need to divide them into two containers of equal weight.– You know nothing about the pebbles.
They could be grains of sand or boulders, any weight from zero to infinity.
If you have to test all possible solutions, even at 1 trillion calculations per second it will take longer than the life of the universe.
The combinatorial problemYou have 100 pebbles, and need to divide them into two containers of equal weight
Source: Schroders.
47
The new investor team – a hybrid model
Source: Schroders.
48
Knowing what makes a difference
Domain knowledge(company, industry)
FinancialAccounting
FinancialMarkets
Investor
Maths/StatsKnowledge
Programming,algorithms
Data scientist
– Data Insights Unit established October 2014– Data scientists, data consultants and data engineers
Schroders’ approach to data insightsFast-growing and inspirational skillset
Source: Schroders.
49
Psychology
Computer Science
Motor Racing
Geospatial
Physics
Operations Research
Investment
Web-crawling
Bioinformatics
Mathematics & Statistics
Defence
Machine Learning
Data in action
Consumer spending dataThe raw picture: the big data
51
Source: Schroders. Companies shown are for illustrative purposes only and are not a recommendation to buy or sell any security.
user_ref yob salary_rangepostcode transaction_dat transaction_desc credit_debamount tag_user189332 1964 10K to 20K WD1 15/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 14.36 Supermarket189332 1964 10K to 20K WD1 17/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 25 Supermarket189332 1964 10K to 20K WD1 18/08/2014 visa ‐ london overground‐ watford 2Debit 21 Public transport189332 1964 10K to 20K WD1 18/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 10.95 Supermarket189332 1964 10K to 20K WD1 19/08/2014 <MDBREMOVED> Debit 20 Cash189332 1964 10K to 20K WD1 19/08/2014 direct debit o2 ‐ o2 Debit 29.76 Mobile189332 1964 10K to 20K WD1 20/08/2014 <MDBREMOVED> Credit 1351.12 Salary (main)189332 1964 10K to 20K WD1 20/08/2014 <MDBREMOVED> Debit 13.45 Hairdressing189332 1964 10K to 20K WD1 21/08/2014 <MDBREMOVED> Debit 50 Cash189332 1964 10K to 20K WD1 21/08/2014 <MDBREMOVED> Debit 6.74 Personal Care ‐ Other189332 1964 10K to 20K WD1 21/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 30.03 Supermarket189332 1964 10K to 20K WD1 24/08/2014 <MDBREMOVED> Debit 12.97 Music189332 1964 10K to 20K WD1 24/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 15.3 Supermarket189332 1964 10K to 20K WD1 24/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 45.82 Supermarket189332 1964 10K to 20K WD1 25/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 29.57 Supermarket189332 1964 10K to 20K WD1 26/08/2014 <MDBREMOVED> Debit 15.99 Gym Membership189332 1964 10K to 20K WD1 26/08/2014 visa ‐ london overground‐ watford 2Debit 21 Public transport189332 1964 10K to 20K WD1 27/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 5.58 Supermarket189332 1964 10K to 20K WD1 27/08/2014 <MDBREMOVED> Debit 28 Eye care189332 1964 10K to 20K WD1 28/08/2014 <MDBREMOVED> Debit 60 Cash189332 1964 10K to 20K WD1 28/08/2014 visa ‐ tesco‐stores 6547 watford gb Debit 12.92 Supermarket189332 1964 10K to 20K WD1 31/08/2014 direct debit bt group plc ‐ bt group pDebit 44.28 Phone (landline)189332 1964 10K to 20K WD1 31/08/2014 direct debit tv licence mbp ‐ tv licen Debit 29.1 TV licence
Referendum
Alternative data, gathered daily and quickly, suggested spending was holding up just fine
Consumer spending dataThe rich picture: Brexit response
52
Source: Schroders.
BBC News on 30 June 2016 (one week after referendum):
“There may already have been an impact on the economy or the public finances but we do not yet have data showing that….We're not going to get any reliable figures on that for a while.
Growth figures for March to June will be out on 27 July, but the referendum was really too late in the quarter for the result to make any difference, although uncertainty linked to the fact that the referendum was happening at all, probably will make a difference.”
X
BBC News on 30 June 2016 (one week after referendum):
“There may already have been an impact on the economy or the public finances but we do not yet have data showing that….We're not going to get any reliable figures on that for a while.
Growth figures for March to June will be out on 27 July, but the referendum was really too late in the quarter for the result to make any difference, although uncertainty linked to the fact that the referendum was happening at all, probably will make a difference.”
Investor question: How many stores will Ladbrokes and Coral have to divest post-merger?
Geodata: Rapid insight into complex questionsMerger analytics – Ladbrokes/Coral
53
Source: Schroders. Companies shown are for illustrative purposes only and are not a recommendation to buy or sell any security.
4000100
Lowest estimate Highest estimate
Combined branches1800
Instant modelling of divestment potential post-merger based on store-by-store analysis
Geodata: Rapid insight into complex questionsMerger analytics – Ladbrokes/Coral
54
Source: Schroders, https://www.gov.uk/cma-cases/ladbrokes-coral-group-merger-inquiry
June 2015 Predicted stores to close (out of 4,000): 400May 2016 Regulator’s judgement of required closures: 350–400
Brand perception dataSpecific use cases: Impact of scandals – Samsung, VW, Chipotle
Source: Schroders. Companies shown are for illustrative purposes only and are not a recommendation to buy or sell any security.
55
4 months7 months
<3 months
Daily returns local currency analysisRebased prices
Day of date
3 year clustering analysis
Dynamic sectorsWorking towards ‘better sectors’ based on high-dimensional cluster analysis
56
Source: Schroders. Sectors shown are for illustrative purposes only and are not a recommendation to buy or sell any security.
Dynamic sectorsWorking towards ‘better sectors’ based on high-dimensional cluster analysis
57
Source: Schroders.
Conclusion
58
– Substantial investment by the firm in data science for investment
– Focused on delivering insights for long-term alpha
– Integrated with all asset classes
– Two-way process of idea-generation
– Intersecting an increasing array of datasets
– Enjoy a scale advantage due to technology and skill bench required
“If we have data, let’s look at data. If all we have are opinions, let’s go with mine.”
Jim Barksdale, former CEO of Netscape
Appendix
US Stock Market intraday trading volume
ETF’s power trading patterns
Source: Citi Research as at 31 March 2017.
60
0%
5%
10%
15%
20%
25%
30%
9:30
- 10
:00
10:0
0 - 1
0:30
10:3
0 - 1
1:00
11:0
0 - 1
1:30
11:3
0 - 1
2:00
12:0
0: 1
2:30
12:3
0 - 1
:00
1:00
- 1:
30
1:30
- 2:
00
2:00
- 2:
30
2:30
- 3:
00
3:00
- 3:
30
3:30
- 4:
00
4:00
- 4:
30
Percent of Daily Trading Volume
Schroders Global EquitiesSustaining an edge in challenging markets
61
Source: Schroders, as at 30 September 2016.
Research Portfolio construction Engagement
The Schroders difference
Breadth of research coverageOver 70+ analysts based around the world
Global perspectiveGlobal Sector Specialists marrying local research with global analysis
Innovative use of data analyticsIndustry-leading capability to improve fundamental research efforts
Integration of ESGAssessing the durability of a company’s earnings
Risk-based constructionEnsuring consistent alignment between portfolio risk and manager conviction
Controlled factor riskAlignment of risk and stock selection to drive enhanced performance consistency
Fundamental risk frameworkProprietary forward looking risk system designed to enhance portfolio downside protection
Active ownershipRegular dialogue with companies promoting improvement of long term returns
Dedicated engagement resourcesImpressive record of positive response to change from hundreds of companies
David Harding, Founder and Chief Executive Officer, Winton
Making money from mathematics
62
63
Introducing WintonA British-based global investment management company, powered by data.
WintonFounded in 1997, Winton combines the rigour of the scientific method with advanced investment technology to invest in financial markets.
• Develops intelligent investment systems that evolve as financial markets change through time.
• One of Europe’s largest absolute return investors with over $30 billion in assets under advice and more than 450 people in nine offices around the world.
• Manages assets for many of the world’s major pension funds, sovereign wealth funds, banks and fund platforms.
David HardingDavid Harding, Winton’s CEO and founder, has been at the forefront of data‐driven, systematic investment for 30 years.
• Started two of the world’s leading systematic investment companies: AHL (Adam, Harding and Lueck, 1987) and Winton (1997).
• Navigated his funds through Black Monday, LTCM/the Russian Debt Crisis, the Dotcom Crash, the Quant Crisis and the Global Financial Crisis.
• Built a substantial scientific research group at Winton with the ability to pursue ground breaking work in the automation of a long‐term investing strategy.
1
5
25
1987 1992 1997 2002 2007 2012 2017
Growth of $
1 (lo
g)
AHL
Winton
AHL/Winton Track Record (AHL track record is shown from inception to inception of Winton)*
Employee numbers as at 31 March 2017. *This chart shows the net track records of AHL Diversified Program (Jan 1987 – Sep 1997, net of 6% management and 15% performance fee) and the Winton Diversified Program (from Oct 1997, net of 1% management and 20% performance fee). The AHL series is a composite track record supplied by a third party data provider and is based on the accounts that traded the AHL Diversified Program at the time. Winton’s returns are based on the oldest and largest account following the Winton Diversified Program. Performance of other accounts which started at different times may differ from the performance shown in the chart. Past performance is not indicative of future results.
David HardingWinton CEO and founder
Employees by DepartmentA focus on research, data and technology
105 97
65 63 58
25 2516 10
64
Our ApproachOur decisions are driven by the empirical analysis of data, rather than instinct or intuition.
WDP sector and market exposures are based on 20‐year simulated risk allocations. WDP strategy allocations are indicative; actual values are confidential.
Slow TF
Medium TF
Fast TF
Cash Equities
Currencies
Futures Other
Proprietary Other
Momentum
Cash Equities
Carry
Other
Strategy Allocations
North America
Europe
Japan; Asia/Pacific
Developed
EmergingNorth America
Europe
Japan; Asia/Pacific
Energies
Crops
Precious Metals
Base Metals
Meats
US
Market Allocations
Monitoring
Investment Universe
Target Portfolio
Constraints
New Portfolio
Return Forecast
Risk Forecast
CostModel
Execution
Systematic Investment ProcessPortfolio construction embodies the cumulative findings of our signals, risk and cost research.
• The program generates a target portfolio using return and volatility forecasts and inputs from Winton’s correlation and cost models.
• Portfolio sensitivity and exposure to a range of key factors and markets are monitored.
Diversified Sources of ReturnsThe Winton Diversified Program follows multiple strategies in more than 100 markets, providing long‐term diversification from traditional investments.
• Winton assesses liquidity and capacity to select investible equities, futures and forward markets.
• Research‐backed trading systems generate return forecasts for each market daily.
Fixed Income
CurrenciesIndex Futures
Commodities
Cash Equities
less th
an ‐2
.00%
‐2.00%
to ‐1
.75%
‐1.75%
to ‐1
.50%
‐1.50%
to ‐1
.25%
‐1.25%
to ‐1
.00%
‐1.00%
to ‐0
.75%
‐0.75%
to ‐0
.50%
‐0.50%
to ‐0
.25%
‐0.25%
to 0.00%
0.00% to
0.25%
0.25% to
0.50%
0.50% to
0.75%
0.75% to
1.00%
1.00% to
1.25%
1.25% to
1.50%
1.50% to
1.75%
1.75% to
2.00%
more than
2.00%
Count Jan 2009 – Oct 2012Count Nov 2012 – Aug 2016
Winton Value Proposition
65
Proven Track RecordThe Winton Diversified Program has generated stable risk‐adjusted returns since 1997. • Annualised returns and volatility
of 12.7% and 16.1% respectively since inception, outperforming most asset classes.
• Positive returns in most market conditions.
Risk ManagementWinton’s risk models capture a wide range of risk factors which has helped the Winton Diversified Program achieve more stable returns.
• Navigated the major crises of the past two decades.
• Longer volatility and correlation histories add perspective to forecasts.
Cumulative Returns Since WDP Inception
Distribution of WDP’s Daily Returns from 2009*
R&D Staff Backgrounds
Diversified Returns The Winton Diversified Program follows multiple strategies in over 100 markets, providing diversification from traditional investments • Drawdowns have been shorter
and shallower than for equity markets• Low correlation with equities and bonds in the
long term.
Active Research ProcessWinton is backed by an ongoing research programme which provides hard‐to‐replicate advantages across the investment process.
• Systematic data collection and quality checking ensures data is cleaner and deeper than our commercial sources.
• Robust, peer‐reviewed models corrected for hindsight bias.
Markets & Strategies
MSCI World, 174%
JPM US Agg Bond Index, 175%
S&P 500, 261%
Barclay HF Index, 328%
WDP (risk‐adj), 364%
WDP, 916%
Futures Markets• Base Metals• Bonds• Crops• Currencies• Energies• Equity Indices• Livestock• Precious Metals• Rates
Equities• North America
Futures Strategies• Momentum• Carry• Seasonality• Relative Value• Commodity Fundamentals• Global Macro
Equity Strategies• Fundamental• Technical• Proprietary Other
*Prior to January 2009 risk levels were higher than current levels and so including daily returns before this period would not be comparable.Source: BarclayHedge, Ltd., MSCI Inc., S&P Dow Jones Indices LLC, JPMorgan Chase & Co., Bloomberg, & Winton Capital Management Limited. WDP performance figures relate to the oldest and largest account following WDP. WDP risk‐adjusted figures relate to the same account. Prior to 01/2009 volatility has been adjusted lower to reflect more closely the risk levels at which WDP has operated post the ‘Global Financial Crisis’ (these results are simulated and do not represent actual trading; the accompanying disclaimers on the last page should be read carefully when reviewing this data; no representation is being made that any account will or is likely to achieve profits or losses similar to those being shown); from 01/2009, actual returns are used. Past performance is not indicative of future results.
Mathematics (Life Sciences)
Law
EconomicsMathematicsCommunications
English
Finance
Computer ScienceEngineering
PhysicsPhysics (Particle)
Philosophy
History
Biology
Management
Physics (Theory)Statistics
Physics (Astro)Machine Learning
Proven Track Record
66Source: BarclayHedge, Ltd., MSCI Inc., JPMorgan Chase & Co., Bloomberg and Winton Capital Management.WDP performance figures relate to the oldest and largest account following WDP. WDP risk‐adjusted figures relate to the same account. Prior to 01/2009 volatility has been adjusted lower to reflect more closely the risk levels at which WDP has operated post the ‘Global Financial Crisis’ (these results are simulated and do not represent actual trading; the accompanying disclaimers on the last page should be read carefully when reviewing this data; no representation is being made that any account will or is likely to achieve profits or losses similar to those being shown); from 01/2009, actual returns are used. WDP returns are net of 1% management and 20% performance fee. Past performance is not indicative of future results.
Winton’s flagship investment program, the Winton Diversified Program (WDP), is a diversified absolute return strategy that has been trading since October 1997.
0.5
1
2
4
8
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Growth of $
1
WDP (Actual) WDP (Risk‐Adjusted) Barclay Hedge Fund Index JPM US Bond Index MSCI World TR Index
Performance Over the Past Five Years (WDP Actual)
Cumulative Returns Since Inception
Q1 2016 – Q1 2017 Q1 2015 – Q1 2016 Q1 2014 – Q1 2015 Q1 2013 – Q1 2014 Q1 2012 – Q1 2013
‐1.4% ‐3.8% 19.4% 3.7% 2.6%
Legal Disclaimer
67
This document is solely for the person to whom it was communicated by or on behalfof Winton Capital Management Limited (“WCM” together with its affiliatedcompanies, “Winton”). It is not intended for any person in any jurisdiction whereWinton would become subject to licence or registration regulations of thatjurisdiction, or the publication or availability of this document is prohibited. Thisdocument is confidential and you should not disseminate, distribute or copy it or anyof its contents. This document has been provided for informational purposes onlyand should not be construed as financial, investment, tax, legal, regulatory or otheradvice.
This document is not an offer to sell or the solicitation of any offer to buy securities inany investment vehicle or account sponsored, managed and/or advised by Winton(each a “Product”). In particular, it is not an offer or sale of securities in the UnitedStates or to, or for the account or benefit of, any US person (as defined in relevant USsecurities laws, including residents of the United States or partnerships orcorporations organised there). No fund referred to in this document (if any) has beenregistered under the US Investment Company Act of 1940 and no interests therein areregistered under the US Securities Act of 1933.
Investments in Products are speculative and involve substantial risks, including therisk of loss of the entire investment. No guarantee or representation is made that anyProduct will achieve its investment objective. Past performance is not indicative offuture results.
Investments in Products are to be made solely on the terms of the relevant offeringdocument, investment advisory agreement and/or WCM’s SEC Form ADV (“LegalDocuments”) and no reliance should be placed on this document. Prospectiveinvestors should consider all of the risks of a Product and should therefore carefullyreview the description of material risks disclosed in the Legal Documents, beforedeciding to invest.
This document contains forward‐looking statements that are based on currentindicators, expectations and assumptions that Winton believes to be reasonable butare subject to a wide range of risks and uncertainties and, therefore, there can be noassurance that actual results will not differ from those expressed or implied by suchforward‐looking statements. These statements speak only as of the date on whichthey are made.
This document contains simulated or hypothetical performance results that havecertain inherent limitations. Unlike the results shown in an actual performancerecord, these results do not represent actual trading. Also, because these trades havenot actually been executed, these results may have under‐ or over‐compensated forthe impact, if any, of certain market factors, such as lack of liquidity and cannot
completely account for the impact of financial risk in actual trading. There arenumerous other factors related to the markets in general or to the implementation ofany specific trading program which cannot be fully accounted for in the preparation ofhypothetical performance results and all of which can adversely affect actual tradingresults. Simulated or hypothetical trading programs in general are also subject to thefact that they are designed with the benefit of hindsight. No representation is beingmade that any investment will or is likely to achieve profits or losses similar to thosebeing shown.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates andhas been licensed for use by WCM. Copyright © 2016 S&P Dow Jones Indices LLC, asubsidiary of McGraw Hill Financial Inc., and/or its affiliates. All rights reserved.Redistribution or reproduction in whole or in part are prohibited without writtenpermission of S&P Dow Jones Indices LLC. For more information on any of S&P DowJones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademarkof Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademarkof Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow JonesTrademark Holdings LLC, their affiliates nor their third party licensors make anyrepresentation or warranty, express or implied, as to the ability of any index toaccurately represent the asset class or market sector that it purports to represent andneither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliatesnor their third party licensors shall have any liability for any errors, omissions, orinterruptions of any index or the data included therein.
The MSCI information may only be used for your internal use, may not be reproducedor redisseminated in any form and may not be used as a basis for or a component ofany financial instruments or products or indices. None of the MSCI information isintended to constitute investment advice or a recommendation to make (or refrainfrom making) any kind of investment decision and may not be relied on as such.Historical data and analysis should not be taken as an indication or guarantee of anyfuture performance analysis, forecast or prediction. The MSCI information is providedon an “as is” basis and the user of this information assumes the entire risk of any usemade of this information. MSCI, each of its affiliates and each other person involvedin or related to compiling, computing or creating any MSCI information (collectively,the “MSCI Parties”) expressly disclaims all warranties (including, without limitation,any warranties of originality, accuracy, completeness, timeliness, non‐infringement,merchantability and fitness for a particular purpose) with respect to this information.Without limiting any of the foregoing, in no event shall any MSCI Party have anyliability for any direct, indirect, special, incidental, punitive, consequential (including,without limitation, lost profits) or any other damages. (www.msci.com).
The information in this document is believed to be materially correct but Wintonmakes no representation or warranty as to its accuracy or completeness and accepts
no liability for any inaccuracy or omission. Information obtained from third partieshas not been independently verified by Winton.
WCM is a company registered in England and Wales with company number 03311531.Its registered office at 16 Old Bailey, London EC4M 7EG, England and it is authorisedand regulated by the UK Financial Conduct Authority.
Q&A
Lord Willetts, Executive Chair of the Resolution Foundation; former Minister for Universities and Science
Baby booms and the world economy
69
RF
The Demographic Transition
• “First we stop dying like flies, then we stop breeding like rabbits.”• Result- a baby boom and then a baby bust• The Asian miracle and the Arab Spring• Now it’s Africa’s turn• Effects of Depression and then World War in the West• The pig in the python• What a baby boom does - an accelerator then a brake.
RF
Over the past century, Britain has gone through baby boom and bust
Births per year (millions) by generation: UK
Intergencommission.org
RF
Three ways a society can age
• Reduce early deaths – “rectangularisation”
• Live longer when old – healthy or not
• A big cohort grows old with fewer young people behind
RF
Voting power when there are lots of older people and they are more likely to vote
Turnout at General Elections by life stage: 1964-2015, UK
Intergencommission.org
RF
Benefit expenditure per head of population: Reduction between 2015-16 and 2020-21
In the near term, benefit payments to older groups have been protected, while others’ benefits are falling in value
Intergencommission.org
RF
Generational self-interest may drive views on policy
Preferred policy for paying for the rising cost of state pensions, by age: 2006, UK
Intergencommission.org
RF
Millennials so far are the first generation to earn less than their predecessors
Median pay by age for each generation: real weekly pay (RPIJ-adjusted), UK
Intergencommission.org
RF
But reasons to be positive: Opposition to policies that will benefit the young have softened across generations
Proportion saying they would support more homes being built in their local area: UK
Intergencommission.org
RF
Demographic strains across Western countries
Old-age dependency ratio (ratio of population aged 65+ per 100 of population aged 25-64)
Intergencommission.org
RF
Median ages
1950 2000 2015 2050
UK 34.9 37.6 40.0 43.3
Germany 35.3 40.1 46.2 51.4
China 23.7 29.8 37.0 49.6
USA 30.0 35.3 38.0 41.7
Afghanistan 19.4 15.7 17.5 29.8
Japan 22.3 41.3 46.5 53.3
Source: UN World Population Prospects
RF
The economic impact in Europe
• Average potential growth rate falls from 2.4% in 2007-2020 to 1.7% in 2021-2040 and 1.3% in 2041-2060
• Average growth rate 2007-2060 is 1.7% per annum of which productivity is +1.8%, and labour input is -0.1%.
Source: EU 2009 Ageing report
RF
The Northern 7 vs the Southern 4
N7 S4
Women aged 30 to 39 11.7m 9.5m
Daughters aged 0 to 9 9.5m 5.5m
Replacement rate 80% 60%
Source: Lutz and Wilson: The New Generations of Europeans
RF
Japan
• No babies and no immigrants (apart from Mongolia)
• Robots or Neurographics
• Redistribute from old to young in the home
RF
China
• China grow old before it grows rich
• Working age population falling
• The one child policy, gender balance and, the savings ratio
RF
USA
• Favourable demographics
• But labour market not working
• And fiscal gridlock. The California scenario - whose children are we providing for?
RF
Demographic drivers may be starting to push in the other direction: Global working age-to-dependent ratio turning
Intergencommission.org
RF
The PinchHow the baby boomers
took their children’s future –and why they should
give it back
David Willetts
May 2017
Biographies
Biographies
Mary-Anne DalyDeputy Chief Executive, Cazenove Capital
Mary-Anne joined Cazenove Capital Management in 2001 and is Deputy Chief Executive of the business in the UK. In her responsibility as Head of Wealth Management, Mary-Anne sits on the board of Schroder & Co. Limited and is a member of the Group Wealth Management Executive Committee. She joined from Baring Asset Management’s Private Client Division where she had been Head of Client Service for four years, and prior to this, Managing Director of the BAM Paris office for three years. Previous to joining BAM, Mary-Anne spent seven years in the Corporate Finance Division of Baring Brothers in London and Paris and before that worked for Chase Manhattan Bank in London. Mary-Anne holds a BSc (Hons) degree in Economics from University College, London University. She has 29 years’ investment and banking experience and is a fluent Italian and French speaker.
Richard Jeffrey Chief Economist, Cazenove Capital
Richard joined Cazenove Capital Management in 2008, and in January 2009 was appointed Chief Investment Officer and an Executive Board Director. Following the purchase of Cazenove Capital by Schroders, Richard was appointed Chief Investment Officer of the combined UK wealth management business. More recently, he assumed the role of Chief Economist. Since completing a Master’s degree in quantitative economics in 1981, Richard has held various roles in the City. From 2002 to 2006, he was employed by Bridgewell Group, where he established and ran the research team. Between 1992 and 2002 he worked for Charterhouse Securities as Head of Research and Chief Economist. Prior to this, between 1981 and 1992, he was employed by Hoare Govett, ultimately heading up the economics and strategy team. As well working as a professional economist, Richard has been involved with several ‘think-tanks’, including the Centre for Policy Studies, the Adam Smith Institute and Reform. Richard Jeffrey is a Fellow of the Royal Society of Arts (FRSA), a Quondam City Fellow of Hughes Hall, Cambridge, a member ofan Advisory Board at the Cass Business School, and a member of the Finance Committee of the University of Bristol. He is a frequent broadcaster on radio and television and has written for various newspapers and magazines.
88
Biographies
Caspar RockChief Investment Officer, Cazenove Capital
Caspar joined in September 2016 and is Chief Investment Officer. He joined from Architas Multi-Manager Ltd, a part of the AXA group, where he was Chief Investment Officer and responsible for all aspects of the investment activities, including investment philosophy, process and team. He also oversaw portfolio management at two of AXA group’s private banks. He previously headed up the multi manager business at AXA Framlington from 2006 to 2008. Prior to that, he managed a range of directly invested equity and bond portfolios, and was Head of European Equities at Framlington as well as a member of the Healthcare team. He has 29 years’ investment experience.
Alex TedderHead & CIO of Global Equities, Schroders
Alex joined Schroders in July 2014 and is Head & CIO of Global Equities. Alex joined Schroders from American Century Investments in New York, where he was Senior Vice President and Senior Portfolio Manager (Global and Non-US Large Cap Strategies). He was lead manager of the American Century International Growth Fund (TWIEX) from July 2006 until March 2014 Prior to this, he was with Deutsche Asset Management Ltd, where he worked in various capacities including Managing Director and Head of International Equities / Portfolio Manager. He was lead manager of DWS International Select Equity Fund (MGINX) from May 1995 to September 2005. He also previously served as co-manager of DWS International Fund, DWS Worldwide 2004 Fund, Deutsche Global Select Equity Fund and Dean Witter European Growth Fund. Alex initially joined Schroders in 1990, working in the UK and Germany where he was responsible for promoting European Equity mandates alongside Schroders' Private Equity operation. Alex has an MA in Economics and Business Administration from the University of Freiburg/Fribourg, Switzerland.
89
Biographies
Ben WicksPortfolio Manager & Head of Data Analytics, Schroders
Ben joined Schroders in 2013 and is portfolio manager for Schroders’ Global Climate Change strategy and has lead responsibility for Data Insights across Schroders’ equity division. Prior to this, Ben was the Global Sector Specialist with responsibility for energy. Ben joined Schroders’ Global and International Equity team in March 2013 as an equity analyst supporting the team’s research effort for its Global Climate Change and Global Resources strategies. Ben initially joined Schroders in 1999 as a graduate. From 2000 Ben was an analyst with Schroders’ Pan European research team where he had responsibility for construction, basic materials and oil & gas sectors. He later became a global basic materials sector specialist and spent time working as an EAFE portfolio manager. Ben left Schroders in 2005 to work for the UK Government as a senior analyst conducting geopolitical risk analysis before returning in 2013. Ben has a BA (Hons) from Oxford University in Historyand Modern Languages (French) .
Emily MaitlisJournalist and BBC Newsnight presenter
Emily Maitlis is one of the most recognized faces on television news. She is part of Newsnight’s core presenting team, recently leading their coverage of President Trump’s election and his first 40 days in office. She combines this role with working alongside David Dimbleby and Jeremy Vine to front the General, Local and US elections. Emily was part of the core news team for BBC’s News Channel and anchored BBC2’s new current affairs programme This Week’s World. Emily is also a documentary maker and in 2011, secured an exclusive television interview with Facebook founder Mark Zuckerberg, which formed the basis of her much-acclaimed BBC2 documentary, 'Inside Facebook: Zuckerberg's $100 Billion Gamble'. Her other documentaries have been on subjects as diverse as Donald Trump, Nicolas Sarkozy and Barbie. She has also interviewed major political figures such as Bill Clinton, Henry Kissinger and Christine Lagarde, as well as all four of the last UK prime ministers. She has interviewed key figures from the world of sport, entertainment, and business - David Beckham, Hugh Grant, George Soros, to name but a handful. Prior to working in news, Emily was a documentary maker in Cambodia and China. She spent six years working with NBC Asia, initially as a business reporter and then as a presenter in Hong Kong, covering the collapse of the tiger economies in 1997. She also covered the transfer of sovereignty over Hong Kong with Jon Snow for Channel 4. She then moved to Sky News in the UK as a business correspondent, and to BBC London News when the programme was re-launched in 2001. She speaks French, Spanish, Italian (and English) but, contrary to popular belief, her Mandarin Chinese isn't so hot.
90
Biographies
David HardingFounder & CEO, Winton
David Harding is the Founder and CEO of Winton. Since graduating from Cambridge University with a degree in natural sciences, he has started two of the world’s leading quantitative investment companies: AHL and Winton. Today Winton advises on over US$30billion of assets for clients all around the world.
Winton is a British-based global investment management company. The firm was founded in 1997 on the belief that the scientific method offers the best approach to investing. By finding patterns in large volumes of data, Winton’s researchers build intelligent investment systems which evolve over time. The investment decisions are driven by statistical inference based on the empirical analysis of data, rather than instinct or intuition.
Lord Willetts Executive Chair of the Resolution Foundation
The Rt Hon. Lord David Willetts is the Executive Chair of the Resolution Foundation. He served as the Member of Parliament for Havant (1992-2015), as Minister for Universities and Science (2010-2014) and previously worked at HM Treasury and the Number 10 Policy Unit. Lord Willetts is a visiting Professor at King’s College London, Governor of the Ditchley Foundation, Chair of the British Science Association and a member of the Council of the Institute for Fiscal Studies. Lord Willetts has written widely on economic and social policy. His book ‘The Pinch’ was published by Atlantic Books in 2010.
91
DisclaimersWe undertake to comply with our obligations under the Financial Services and Markets Act 2000 and the disclaimers set out in this section do not exclude or restrict liability for any duty to clients under this Act or any other applicable regulatory authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. The material in this document is for information purposes only and the services, securities, investments and funds described may not be available to or suitable for you. Not all strategies are appropriate at all times.
We have taken all reasonable care to ensure that the information contained within this document is accurate, up to date, and complies with all prevailing UK legislation. However, no liability can be accepted for any errors or omissions, or for any loss resulting from its use. Any data and material provided ahead of an investment decision are for information purposes only. Unit and share prices are for information purposes only, they are not intended for trading purposes. We shall not be liable for any errors or delays in these prices or in the provision of this information, or for any actions taken in reliance thereon.
We reserve the right to amend, alter, or withdraw any of the information contained in this document at any time and without notice. No liability is accepted for such changes.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
Risk warnings You should consider the following risks:
Investment risk: Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
Taxation: Statements concerning taxation are based on our understanding of the taxation law in force at the time of publication. The levels and bases of taxation may change. You should obtain professional advice on taxation where appropriate before proceeding with any investment.
Exchange rates: Investments in overseas securities are exposed to movements in exchange rates. These may cause the sterling value of units to go up or down.
Debt securities: Investments in higher yielding bonds issued by borrowers with lower credit ratings may result in a greater risk of default and have a negative impact on income and capital value. Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth.
Emerging markets: You should be aware of the additional risks associated with investment in emerging and developing markets. These include: higher volatility of markets; systems and standards affecting trading, settlement, registration and custody of securities all possibly lower than in developed markets; lack of liquidity in markets and exchanges leading to lower marketability of securities and greater price fluctuation; significant currency volatility, possibly resulting in adoption of exchange controls; lower shareholder protection or information to investors provided from the legal infrastructure and accounting, auditing and reporting standards.
Disclaimers, risk warnings and regulatory status
92
Risk warnings (continued)Unregulated collective investment schemes: Unregulated collective investment schemes and other non-mainstream pooled investments (NMPIs) are unlikely to offer a level of investor protection equivalent to that available for UK regulated investments. Such schemes may deal infrequently and may limit redemption.
Structured products: Structured products are usually issued by financial institutions and in the event of these institutions going into liquidation or failing to comply with the terms of the securities you may not receive the anticipated returns and you may lose all or part of the money you originally invested. If you sell your investment before its maturity date the investment may achieve a price less than the original investment. The performance of these investments may depend on indices and defined calculations which may differ from direct investments.
Gearing: Some of the investments we may make on your behalf could be in investment companies which use gearing as a strategy or invest in other investment companies which use gearing, such as investment trusts. The strategy which the issuer of such securities uses or proposes to use may result in movements in the price of the securities being more volatile than the movements in the price of underlying investments. Such investments may be subject to sudden and large falls in value and you may get back nothing at all if there is a sufficiently large fall.
Regulated Mortgages: Schroder & Co. Limited is authorised by the Prudential Regulation Authority to administer, advise on, arrange (bring about) and enter into a regulated mortgage contract. Your home may be repossessed if you do not keep up repayments on your mortgage.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated. Where FTSE International Limited (“FTSE”) data is used, “FTSE” is a trade mark of the London Stock Exchange Group of companies and is used by FTSE International Limited under licence. All rights in the FTSE indices vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices or underlying data. No further distribution of FTSE data is permitted without FTSE’s express written consent.
Company particulars and regulatory statusThis document is issued by Cazenove Capital which is part of the Schroder Group and is a trading name of Schroder & Co. Limited, who together with connected companies provide the services described.
Schroder & Co Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office is at 31 Gresham Street, London EC2V 7QA. Registered Number 2280926 England.
Services supplied by Schroder & Co. Limited and connected companies may be subject to value added tax (VAT). Schroder & Co. Limited is registered for VAT in the United Kingdom (GB 243868730).
For the purposes of the Data Protection Act 1998, the data controller in respect of any personal data you supply is Schroder & Co. Limited. Personal information you supply may be processed for the purposes of investment administration by the Schroder Group, which may include the transfer of data outside of the European Economic Area. Schroder & Co. Limited may also use such information for marketing activities unless you notify it otherwise in writing.
For your security, communications may be recorded or monitored.
Disclaimers, risk warnings and regulatory status
93
