With Phillip Flow, how you do is how we do. The P&L below represents the composite or aggregated return of every Flow client’s a/c.
Market practice is to show the P&L of the fund invested in, with it’s own specific inception date, not that of the end clients with theirs. Presenting P/L in that format would be less useful to clients, most of whom have different start, build, draw and end dates.
The oft-cited DALBAR Quantitative Analysis of Investor Behaviour (QAIB) studies have repeatedly shown how the end client’s P&L is materially lower than the P&L of the fund invested in. Publishing the composite result of all client accounts emphasises what matters most, which is how much we at Flow have actually helped our clients grow their wealth.
Notes:
This discretionary managed account service is not a Collective Investment Scheme ("CIS"), i.e. not an unit trust.
Source: Phillip Securities Pte Ltd. The Composite Performance is denominated in SGD. Composite Performance returns (the "Composite Returns") for periods more than 1 year are annualised. The Composite Returns represent past performance and is not indicative of future or current performance which may be higher or lower. The Composite Returns are based on unaudited results of the composite which comprises client accounts with invested portfolios that have been aligned with the investment mandate of this managed account service and include reinvestment of dividends and income and, is net of all fees except performance fees (if any) which are included only at year end. Individual portfolios returns may vary from the Composite Returns. There may be client accounts with portfolios that have not been aligned with this investment mandate and are not included in the computation of the Composite Returns.
The Account is not benchmarked to any market index.
Net Asset Value means the market value of the assets in the Account less all liabilities including fees, costs, expenses and charges payable or chargeable in relation to or in connection with any transaction pursuant to the Discretionary Account Management Agreement.
High water mark means the initial invested capital of the Account or, if higher, the highest Net Asset Value that the Account has attained at the end of any previous calendar year measurement period since the inception date in which a performance fee was payable. The High Water Mark shall be adjusted appropriately for any subsequent capital contribution or withdrawal.