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LEVENDI THORNBRIDGE DEFINED RETURN FUND A Blueprint for Returns - PowerPoint PPT Presentation

LEVENDI THORNBRIDGE DEFINED RETURN FUND A Blueprint for Returns FOR PROFESSIONAL INVESTORS AND ADVISERS ONLY. NOT FOR DISTRIBUTION TO RETAIL INVESTORS. DIS ISCLAIMER The contents of this document are communicated by, and the property of,


  1. LEVENDI THORNBRIDGE DEFINED RETURN FUND A Blueprint for Returns FOR PROFESSIONAL INVESTORS AND ADVISERS ONLY. NOT FOR DISTRIBUTION TO RETAIL INVESTORS.

  2. DIS ISCLAIMER The contents of this document are communicated by, and the property of, Levendi Investment Management Limited (LIML). LIML is an appointed representative of Thornbridge Investment Management LLP, which is authorised and regulated by the Financial Conduct Authority (“FCA”) . The information and opinions contained in this document are subject to updating and verification and may be subject to amendment. No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained in this document by Levendi Investment Management Ltd or its directors. No liability is accepted by such persons for the accuracy or completeness of any information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained in this document. The information contained in this document is strictly confidential. The value of investments and any income generated may go down as well as up and is not guaranteed. Past performance is not necessarily a guide to future performance. SOURCE DATA: all data is sourced from Bloomberg PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 2 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  3. LEVENDI-IM PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 3 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  4. THE FU TH FUND STEADY RETURN • LIBOR PLUS 6% RETURN •POSITIVE RETURNS THAT DON’T RELY ON RISING MARKETS OR FALLING MOST MARKET CONDITIONS YIELDS LESS RISK • MINIMISE THE CHANCE AND SCALE OF DRAWDOWNS DEFENSIVE /CAUTIOUS • TARGET 5% TO 7% VOLATILITY RISK MANAGEMENT • 10% VOLATILITY CEILING EXPOSURE • SOME EQUITY MARKET EXPOSURE PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 4 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  5. OUR FIR FIRM AND OUR PEOPLE An investment advisory firm that advises on the use of structured investments and derivatives. Based in the UK, with more than £800M of assets under advice, we offer a combination of investment expertise, quantitative assessment of risk and return and independent asset and portfolio valuations. LIML’s investment management team have extensive experience in Defined Return Investments: FRANK COPPLESTONE, MANAGING PARTNER Day to day management of the fund, pricing, trading, risk management DAVID STUFF, MANAGING PARTNER Marketing and distribution ART NOBLE, RESEARCH AND ANALYSIS Quantitative research and analysis PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 5 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  6. ARCHITECTS OF F VALUE ANALYSIS PRICING MANAGEMENT STRUCTURING Real world analysis of risk Accurate valuations Day to day investment Product design and return process Performance attribution Market exposure Expected return Portfolio optimisation Risk management What are the risks? Risk management overlay Sensitivities PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 6 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  7. RE REALISED FU FUND PERFORMANCE 108% 106% 104% 102% 100% 98% Return 96% 94% 92% 90% 88% 86% 84% 82% Month Source; Levendi, Bloomberg Levendi Thornbridge UK Total Return Europe Total Return PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 7 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  8. COMPARISON WITH ITH OTH THER BENCHMARK ASSETS 108% 106% 104% 102% 100% Return 98% 96% 94% 92% 90% 88% Month Source: Levendi, Bloomberg Levendi Thornbridge Vanguard Life 40% Equity CBOE Put Index Peer Group Average EX Levendi PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 8 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  9. DOWNSIDE PROTECTION DO May 22 - June 25 August 9 - September 7 October 1 - December 24 0% • Levendi Fund aims to offer a degree of protection when markets fall. -2% • Fund has offered significant downside protection through both large market -4% corrections since launch • Defensive return when markets fall is a result Max Drawdown -6% of • Choice of underlying market -8% • Choice of very defensive investments • Risk management overlay -10% -12% -14% Date Levendi Thornbridge UK Total Return Europe Total Return PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 9 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  10. RIS RISK RA RATING SCALE Fund volatility is calculated using process defined by regulators for the KIID and KID. This volatility can be used to illustrate the fund risk ranking using the Dynamic Planner and Defaqto risk scales. IMPORTANT NOTE; The Fund has not been risk rated by either Dynamic Planner or Defaqto. The nature of the fund means that neither risk rating agency can provide a risk rating. The analysis above is based on publicly available information about the volatility ranges that each firm uses to rate funds. However, we do not know how either firm calculates the volatility of a fund. PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 10 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  11. TARGET MARKET / / PORTFOLIO ALL LLOCATION TARGET MARKET PORTFOLIO ALLOCATION • Lower risk investors Defensive Equity • Looking for steady returns under a wide • High correlation to equities in the short term range of market conditions • Low exposure to equity markets • Want to minimise chance and scale of losses Absolute Return • Prepared to accept some risk to capital • Target LIBOR +6% returns • Prepared to accept some volatility of returns Target Volatility • Medium to long term investment horizon • 5% to 7% normal volatility • 10% volatility ceiling Bond Substitute • High annual returns / low duration • Replace default risk with risk of a protracted large fall in equity indices PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 11 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  12. PERFORMANCE RE RELATIVE TO SECTORS Levendi Thornbridge IA Sterling Corporate Bonds IA Flexible Investment IA Mixed Investment 20-60% Shares IA UK All Companies IA Targeted Absolute Return IA Europe Excluding UK -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% Return Source; performance for 1 year to 8 th May 2019, www.trustnet.com PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 12 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  13. THE ASSETS PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 13 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  14. EXA XAMPLE PRODUCT Worst of FTSE 100 and Eurostoxx UNDERLYING 180 50 Index 160 TERM 8 years 140 Autocall. The product may mature PRODUCT SHAPE AUTOCALL LEVELS / PAYOFF early at each anniversary 120 Years 1 to 7; 100% AUTOCALL LEVELS 100 Year 8; 60% 8% each year if both underlying 80 PAYOFF assets are above the Autocall Levels 60 Autocall Levels If the product has not matured Payoff 40 early and neither indices is less Capital than 50% of the initial Index level, 20 then 100% capital is repaid plus CAPITAL the defined payoff. If the maturity 0 value of the worst performing Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 asset is below 50%, the maturity value will be reduced by 4x the fall below 50% PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 14 Management LLP which is authorised and regulated by the Financial Conduct Authority.

  15. PROGRESSIVE RIS RISK AT MATURITY 160% Barrier Shape Levendi Shape 140% Year 1 120% Year 2 100% Maturity Value Year 3 80% Year 4 Distribution of rolling 8 year returns of FTSE 100 price 60% Year 5 40% Year 6 Falls of more than 20% 50% over 8-years+ are Year 7 very rare Year 8 0% -100% -50% 0% 50% 100% 150% 200% Percentage Change in Index Level PROFESSIONAL INVESTORS ONLY. Levendi Investment Management Limited is an appointed representative of Thornbridge Investment 5/8/2019 15 Management LLP which is authorised and regulated by the Financial Conduct Authority.

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