Q1 - 2017

www.whitechurch.co.uk

Portfolio Management Service - Dynamic Balanced

Key facts Key objectives
As at 31st December 2016 This strategy aims to provide an attractive total return through income and capital
growth. It will invest up to 60% in stockmarket investments with the balance diversified
Launch date across other asset classes to reduce risk. The underlying funds will be primarily index
1st September 2012 tracking passive funds, with a maximum of 20% in actively managed funds, as minimising
charges is of paramount importance. The mix of funds will be actively managed based on
Strategy aim the Whitechurch investment team views.
To provide an attractive total return through
income generation and long-term capital
growth
Investment managers comment
Minimum investment This strategy produced a positive return of 1.2%, over the past quarter, which slightly
Direct Portfolio - 3,000
ISA - 3,000 (including transfers) lagged the return from the ARC Balanced Private Client Index, which was up by 1.7%.
250 per month (ISA, Direct Portfolio) However, the strategy has significantly outperformed in 2016.

Whitechurch Initial Fees*
0% of amount invested
Whitechurch Annual Fees*
0.35% per annum of the portfolio value
(+VAT)
Whitechurch Custodian Fees*
0.4% per annum of the portfolio value
(charged monthly). Capped at 1,000
Advisory Fees*
To be agreed with Financial Adviser
Income
Income generated can be withdrawn
quarterly (end of March, June, September,
December) or can be reinvested back into
the portfolio
* Please refer to brochure for full details of
charges
Please note underlying fund charges are
in addition to the charges listed above.
The final quarter of 2016 was characterised by the shock US election win of Donald Trump,
which had an immediate impact on markets. Initial concerns over his unpredictable
leadership were shaken-off quickly, as investors focused on how his proposed policies
may boost US led global growth. This resulted in an end of year rally in many stockmarkets,
whilst bond markets sold off on fears of increasing inflation and interest rate rises in 2017.
The stockmarket holdings were the greatest contributors to performance and the
strongest performance came from L&G US Index Trust, which returned 10.3% over the
quarter. This was driven by the Trump rally and further enhanced by the strength of the
dollar versus the pound. Holding overseas assets has remained a positive for UK based
investors as sterling has remained weak on Brexit concerns. However, such concerns
did not stop the UK stockmarket hitting new highs at the end of the year and this was
reflected by the positive returns for the UK funds.
In contrast to strong stockmarket performance, concerns over inflation emerging saw
a sell-off in bond markets during the quarter. However, our tactical positioning helped
dampen losses. Of the retained holdings, Vanguard Global Bond Index was hardest hit
and fell 2.8%. During the quarter we sold the L&G All Stocks Index Linked Gilt Index
fund which had performed very strongly and invested into Royal London Short Duration
Global High Yield Bond to reduce the risk of the portfolio to increasing inflation. The
recently added Aviva Multi-Strategy Income did its job as a bond proxy. It produced a
resilient return of 0.9%, whilst diversifying risk of the portfolio.

We believe this strategy is well positioned to provide a well-diversified multi-asset

holding with a low cost structure and balanced risk profile.

5 Year Volatility
Performance Table 0-12m 12-24m 24-36m 36-48m 48-60m
Cumulative (3 Years)

PMS Dynamic Balanced

15.6% -0.2% 7.1% 10.2% - - 6.8%
- Risk 5
ARC Balanced Asset
8.6% 1.9% 4.5% 9.2% 7.7% 36.1% 4.8%
PCI
Source: FE Analytics, Whitechurch Securities. Performance figures are calculated net of fees in sterling. Unit Trust prices are calculated on a bid-to-bid basis. OEICs & Investment
Trust prices are calculated on a mid to mid basis, with net income reinvested. The past is not necessarily a guide to future performance. The value of investments and any income
will fluctuate and investors may not get back the full amount invested. Currency exchange rates may affect the value of investment.
Current asset allocation - Portfolio breakdown
(at 31st December 2016)
26.3% UK Equities
24.6% Global Fixed Interest
10.3% European Equities
10.1% Alternative Investment
Strategies
9.4% North American Equities
6.0% Asia Pacific Equities
5.5% UK Fixed Interest
5.5% Asia Pacific Emerging
Equities
0.4% Money Market
2.0% Cash
Source: Financial Express 31st December 2016. Asset allocation numbers may not add up to 100% due
to rounding.
Current holdings
Aviva Multi Strategy Target Income
Fidelity Index UK
HSBC European Index
HSBC Pacific Index
L&G Short Dated Sterling
Corporate Bond Index
L&G US Index
Royal London Global Short
Duration High Yield
Vanguard FTSE UK Equity Income
Index
Vanguard Global Bond Index
For further information about any of
the areas included in this or any of
our other strategies in the Portfolio
Management Service please contact
your Financial Adviser.

Risk Profile 5/10 - Balanced

This is a balanced strategy focused towards investors who accept a degree of risk whilst looking to enhance returns. This strategy
will invest up to a maximum of 60% in equities with the aim of enhancing returns over the medium to long-term and combating
inflation. Investors accept that the overall portfolio will show losses over certain periods but are accepting a medium level of risk in
return for a potentially higher return over the long term.

Whitechurch Risk Ratings

Risk is defined as the risk to the capital or original investment (based on a minimum 5 year investment term). Whitechurch provides
a risk rating of portfolios on a scale of 1 to 10 (1 being the lowest risk and 10 being the highest risk). Full guidelines are available in
the Whitechurch Portfolio Management Service brochure.

Other strategies under the Portfolio Management Service

Dynamic Defensive Strategy 3/10 - Low Risk

Cautious Growth Strategy 4/10 - Cautious

Monthly Distribution Strategy 5/10 - Balanced

Ethical Balanced 5/10 - Balanced

Global Income & Growth Strategy 6/10 - Above Average

Dynamic Growth Strategy 7/10 - High Risk

Stockmarket Growth Strategy 7/10 - High Risk

Energy & Global Shift Strategy 8/10 - Aggressive

Dynamic Planner
Portfolios rated on Dynamic Planner offer added assurance of a sophisticated assessment to meet a clients attitude to risk.

Produced January 2017 by Whitechurch Securities Ltd, The Old Chapel, 14 Fairview
Drive, Redland, Bristol, BS6 6PH. Whitechurch Securities Ltd is authorised and
regulated by the Financial Conduct Authority.

This fact sheet is intended to provide information of a general nature and does
not represent a personal recommendation of the service. If you are unsure, seek
professional advice before making an investment. Whilst we have made great efforts
Tel: 0117 916 6150
to ensure complete accuracy we cannot accept responsibility for inaccuracies. The
E-mail: info@whitechurch.co.uk
past is not necessarily a guide to future performance. The value of investments and
Website: www.whitechurch.co.uk
any income produced can go down as well as up and you may not get back the full
amount invested. Levels and bases of, and reliefs from, taxation are subject to change. 1476b. 16.01.17