Download FUSION Income | US Dollar - Capital International Group

31 October 2016
FUSION Income | US Dollar
Strategy Overview
Absolute Return Profile
In pursuit of absolute returns, Fusion invests in a broad range of asset classes designed to
maximise its ability to deliver investment performance, whilst minimising the associated risk.
Fusion Income is a more cautious strategy designed specifically for clients who require regular
distributions. Fusion Income focuses on more reliable asset classes in order to achieve its risk
level and return targets. Investment exposure is dominated by lower risk asset classes such as
fixed interest, arbitrage strategies and commercial property, although the strategy includes some
exposure to equities and risk instruments.
Each Fusion strategy delivers a highly diversified investment exposure and is designed as a
complete investment solution and core strategy. The strategies are constructed around a managed
portfolio of collective investment vehicles, delivering a unique combination of diversification,
flexibility and efficiency.
The Fusion Income strategy aims to provide a compelling & complete investment with the
following characteristics:
■Focuses on more reliable asset classes in order to achieve risk level & return targets.
■Investment exposure is dominated by lower risk assets such as fixed interest, arbitrage
strategies & commercial property, although the strategy includes some exposure to equities.
■Targets a strategic currency exposure of 89% in the base currency.
■Has a one to two year investment horizon & as a result focuses on reliable asset classes whilst
accepting lower returns.
Target Return Range:
7.0% to 8.0%
Expected Volatility Range: 7.0% to 11.0%
Performance
1 Mth
3 Mths 6 Mths
1 Yr
3 Yrs
5 Yrs
10 Yrs
Fusion Income | US Dollar
-1.50%
-1.15%
-1.87%
-3.24%
-4.90%
5.16%
5.28%
ARC Cautious
-0.80%
-0.70%
0.69%
0.55%
3.39%
12.87%
34.18%
Key Information
Currency
Sterling | US Dollars | Euro
Minimum Initial Investment
£75,000 | $150,000 | €150,000
Dealing Frequency
Daily
Dealing Cut-Off
12:00pm
Initial Charge
Nil
Exit Charge
Nil
Annual Management Charge
1.60%
Investment Manager & Promoter
Capital International Limited
Custodian
Capital International (Nominees) Limited
Swing Factors
250
Fusion Income is actively managed using
a 30% swing factor around its strategic
targets. This allows us to respond to the
investment climate, reducing risk during
periods of turbulence and increasing it
during periods of growth.
Fusion Income | US Dollar
225
ARC Cautious
200
175
0%
150
-30%
125
-50%
100
Plus
Alpha
30%
50%
Income
Dec 2015
Dec 2014
Dec 2013
Dec 2012
Dec 2011
Dec 2010
Dec 2009
Dec 2008
Dec 2007
Dec 2006
Dec 2005
Dec 2004
Dec 2003
Dec 2002
Dec 2001
75
Investment Commentary
Asset Allocation
70%
60%
Max
Max
50%
40%
Max
30%
Max
Max
20%
10%
Max
Max
Min
0%
Equity
Bonds High Yield PropertyCommodity Hedge
Cash
October began with global equity markets continuing to make decent
positive progress. The FTSE 100 in the UK climbed over the 7,000
level and the US Dow Jones index closed at a record high. However
as the month progressed there were signs that investors were
becoming nervous of the impending US election.
The US ten year bond yield had already started to move up, closing
the month at 1.82%, whilst the UK moved up even more in
percentage terms closing at 1.25%. It now seems certain that the
Federal Reserve will increase interest rates in December.
We have long talked of being cautious and overweight cash. This
should offer some protection if the bond sell off gets worse. Politics
will continue to be a major factor.
Capital International Limited | Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG
The information contained herein is believed to be correct, but its accuracy cannot be guaranteed. Performance is calculated based on the average actual performance of Fusion portfolios. Model performance has been used prior to 2007.
Individual Fusion portfolios may vary significantly from the average. Any reference to past performance is not necessarily a guide to the future. The information contained in this document is provided solely to enable the customer to make their
own investment decisions. A composite benchmark has been used from inception until December 2011 and from that point a more r epresentative private client index, based on real performance numbers provided by participating investment
managers, has been used. This document has been prepared for information purposes only and does not constitute an offer or an invitation, by or on behalf of any company within the Capital International Group of companies or any associated
company, to buy or sell any security. Nor does it form a constituent part of any contract that may be entered into between us . Any reference to past performance is not necessarily a guide to the future. The price of a security may go down as
well as up and its value may be adversely affected by currency fluctuations. Full details of Fusion are contained in the Broc hure, Terms of Business and associated literature which is available upon request. The regulated activities are carried
out on behalf of the Capital International Group by its licensed member company. Capital International Limited is licensed by the Isle of Man Financial Services Authority. Capital International Limited is a member of the London Stock Exchange.