Switchmaster

Switchmaster is a mathematical mutual fund tracking system designed for use in conjunction with new or existing investment plans. Switchmaster aims to help you derive maximum investment benefits and returns from your investment plan. Investors are keener than ever to know that their investments are being actively managed.

Switchmaster can help increase investment growth and also help reduce downside risk. Switchmaster is a mathemtical system that is designed to ensure that you are invested in the top-performing fund within your investment plan at any one time. The system has a proven and solid 18-year track record of enhanced performance with an annualised compound return of 12.84% per annum (to April 2010). This cannot be guaranteed to continue as past performance is no guide to the future.

When investing on a regular or lump basis into an offshore investment plan, investors have a wide choice of investment funds. Most investors tend to invest into Managed or Mixed Funds which contain a diversified pool of assets. These funds are designed for investors with moderate risk tolerance for moderate rates of return. The majority of investment plans offer between 100 and 450 investment funds offered by some of the world’s top fund management houses. Many of these funds are never used by the majority of investors, and thus may not be maximizing the investment potential of their plan.

The international schemes currently loaded and their returns are as follows;

 Returns to 19th April 2010*

 *Past performance is no guide to future performance and returns are not guaranteed. Please contact us for up-to-date statistics and current tracking funds.

Most insurance companies also offer free switching between funds, allowing you to rebalance your portfolio at no additional cost. Switchmaster offers a solution for investors looking for increased portfolio growth using an established form of mathematical analysis to indicate when it may be beneficial to move from one fund to another. It is one of very few systems of it’s type available to international retail investors.

The analysis is based on a moving average of fund performance. The moving average is a calculation of short-term fund performance against longer-term performance, which provides a smoothed interpretation of the overall trend of the fund. Switchmaster analyses the best two funds in relative rather than absolute terms in order to establish the best performing fund within a wide choice of investment plans. In practice, the following calculations are performed every day;

The system aims to assess when a fund is in a growth period or in decline and aims to switch funds in a timely manner to capture better growth. Although this seems complex, it is in fact relatively straightforward. The system is able to establish when a moving average loses momentum or is about to change direction. If the moving average accelerates upwards, a possible switch is indicated.

Benefits

• Your portfolio will pick-up trends as they appear
• Potentially utilising all the funds available within your plan
• Long term, higher rates of return
• Potentially limiting downside
• Ongoing dialogue with your adviser

Negatives

• High levels of volatility and hence swings in valuations
• In volatile markets where no trends appear, returns can be negative

Mitigating Factors

• Do not expose your whole portfolio to the system (we recommend 25% maximum)
• You can opt-out at any time

Switchmaster is a fee based service, although first year discounts are given to new investors.

For further information and performance statistics, please Contact us