The index comparisons in this presentation are provided for informational purposes only and should not be used as the basis for making an investment decision. Further, the performance of the composite and the Index may not be comparable. There are significant differences between the composite and the indices referenced, including, but not limited to, risk profile, liquidity, volatility and asset composition. Please note that an investor cannot invest directly in an index.
There can be no assurance that investment objectives will be achieved. Clients must be prepared to bear risk of a total loss of their investment.
Due to a varying frequency of the fees being paid and associated compounding effects, the actual difference between gross and net returns may differ from the stated annual fee. For example, on an account with a 0.50% fee, continuous monthly gross performance of 1.50% and the fees being deducted monthly, the compounding effect will result in an annual gross return of 19.56% and a net return of 18.97%. Thus, a $10,000 initial investment would grow to approximately $14,295 gross of fees, versus $14,155 net of fees, over a two-year period. Effective January 2016, the net-of-fees rates of return are calculated based on the fee schedule. All net returns that were previously calculated on a cash basis are linked to the returns being calculated under the new methodology, reflecting daily accrual of fees.
Vontobel Asset Management, Inc. (“Vontobel”) is registered with the U.S. Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended, in the USA. Registration as an Investment Advisor with the U.S. Securities and Exchange Commission does not imply a certain level of skill or expertise. Vontobel is exempt from the requirements to hold an Australian Financial Services License under the Corporations Act in respect of the financial services it provides to Australian wholesale clients under ASIC Class Order CO 03/1100. Vontobel is regulated by the US Securities and Exchange Commission under US laws, which differ from Australian laws.
Global Markets Equity Composite Performance
As of December 31, 2015
|Total Return1||Composite Characteristics at End of Period||External Standard Deviation3|
|Period||Gross of Fee
|Net of Fee
|Gross of Fee
|Net of Fee
1Total returns are expressed in USD.
2The measure of internal dispersion presented is an asset-weighted standard deviation based on gross of fee returns, and is calculated if the composite contains greater than five portfolios for the full year.
33-year annualized standard deviation based on monthly returns.
4Since January 2011, results of the composite are compared to the MSCI All Country World Index (Total Return Net Dividends). Prior to January 2011, results of the composite were compared to the MSCI World Index (Total Return Net Dividends).
Vontobel Asset Management, Inc. (“Vontobel”) is an investment advisory firm registered, with the Securities and Exchange Commission, under the Investment Advisers Act of 1940, as amended, and a subsidiary of Vontobel Holding AG, Zurich, Switzerland. For GIPS purposes, the firm is defined as all institutional accounts at Vontobel Asset Management, excluding wrap accounts and private client assets. The firm maintains a complete list and description of composites, which is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
Global Markets Equity Composite includes all discretionary accounts, excluding wrap accounts and private client assets, that invest mainly in equity or equity-linked securities of issuers located in the developed and emerging markets in the United States, Europe, Asia and Latin America. This composite consists of accounts that are not required to be at least 75% hedged at all times, and these accounts can hold as many as 70 stocks at any given time. Prior to January 2011, results of the composite were shown compared to the Morgan Stanley Capital International-World Index (the “MSCI World Index”), an unmanaged index of stocks traded in major world markets. Since January 2011, results of the composite are shown compared to the Morgan Stanley Capital International All Country World Index (the “MSCI AC World Index”), an unmanaged index of stocks traded in major world markets. The benchmark was changed to provide a closer representative comparison versus the composite. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the investments in the composite. The index is a free float-adjusted market capitalization index that is designed to measure global developed and emerging market equity performance. It is a market-weighted aggregate of 46 individual country indexes that collectively represent major markets of the world. The index is calculated on a total return basis with net dividends reinvested. It reflects withholding taxes, but not fees and other investment expenses, and is expressed in U.S. Dollars. Investments made by Vontobel for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the MSCI AC World Index. The minimum account size for this composite is $1 million.
Vontobel claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Vontobel has been independently verified for the periods between January 1, 2001 through June 30, 2013. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Global Markets Equity composite has been examined for the periods between January 1, 2001 through December 31, 2014. The verification and performance examination reports are available upon request.
Results are based on fully discretionary institutional accounts under management, including those accounts no longer with the firm, and excluding wrap accounts and private client assets. Net composite performance is presented after the deduction of foreign withholding taxes. Capital gains, dividends and interest income received may be subject to withholding taxes imposed by the country of origin and such taxes may not be recoverable. Results portrayed reflect the reinvestment of dividends and other earnings. Past performance is not indicative of future results.
No portfolios contained in this composite were carved out from balanced portfolios or multi-manager portfolios currently or historically. Leverage and short positions are not used in the composition of client portfolios. Derivatives in the form of forward foreign currency contracts were used in managing client portfolios for opportunistic currency hedging until October 2011.
The Vontobel Global Equity Fund, an unregistered private investment trust, pays a bundled fee, the components of which include: investment management fees; custodial fees; legal fees; and, other administrative expenses. Bundled-fee portfolios as a percentage of composite assets at year-end are as follows: 2.8% in 2012, 3.5% in 2013, 2.4% in 2014 and 3.1% in 2015. Prior to 2012 there were no bundled-fee portfolios in the composite.
The U.S. Dollar is the currency used to express performance. Returns include the effect of foreign currency exchange rates. Returns are presented gross and net of management fees and include the reinvestment of all income. The gross rates of return are presented before the deduction of investment management fees, other investment-related fees, and after the deduction of foreign withholding taxes, brokerage commissions and transaction costs. An investor’s actual return will be reduced by investment advisory fees. The net rates of return are presented after the deduction of investment management fees, brokerage commissions, transaction costs, other investment-related fees and foreign withholding taxes. Such investment management fees are actual fees, as distinguished from model fees, and do not contain any performance-based fee components. Withholding tax rates for the indices are applicable to Luxembourg withholding companies. Our withholding taxes, as captured in the composites, may vary from those captured in the index.
The standard annual management fees charged by Vontobel for the Composite are: 0.75% on the first $100 million, 0.65% over $100 million. Certain accounts may have higher management fees than the standard fee schedule. Investment advisory fees are further described in Part 2 of its Form ADV.
The Global Markets Equity Composite was created May 3, 2004. Compliance with GIPS has been verified firm-wide by Ashland Partners & Company LLP from January 1, 2005 through December 31, 2014. For the period January 1, 2001 through December 31, 2004, Vontobel was verified firm-wide by Ernst & Young LLP.