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Fixed Interest
Fund Snapshot
Launch Date 01/01/1984
Fund Manager BMO Global Asset Management
Risk Rating Risk Rating 4
Fund Type Asset Class Fixed Interest Fixed Interest
Diversification Diversification 3
Stocks & Holdings 64
Regions Covered Regions Covered 2
Fund Size €41.5m*
Latest Bid Price €18.0904 
Price Date 20/11/2017 

Fund Performance

Performance Line Graph

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Fund Summary
The Fixed Interest fund invests in primarily in AAA-AA rated Eurozone Government Bonds. This fund is suitable for the risk averse investor and will perform well if interest rates are falling. In a rising interest rate environment, this fund can produce negative results. The benchmark is 100% Barclay's Euro Aggregate Treasury AAA-AA 5+ years.

Market Commentary
Market

Core eurozone bond yields were little changed over the quarter. European economic data remained positive, with eurozone inflation rising faster than expected in August as energy prices recovered, accelerating to 1.5% versus July's 1.3% reading. Angela Merkel's Christian Democrat party emerged as the largest party in Germany's federal elections, but polled less well than forecast, leaving Merkel facing difficult negotiations to form a coalition. Germany's far-right AfD party polled better-than-expected to become the third largest party in the Bundestag. Yields on 10-year German bunds ended the period where they began, at 0.46%. While German bunds were pressured by higher inflation and general strength across the eurozone economy, they found support from the increased uncertainty in German politics. Core eurozone bonds were also supported by rising geopolitical tensions on the Korean peninsula.

Activity

The Fund Manager tactically increased exposure to European inflation-linked bonds and took partial profits after the position performed well. Following continued spread compression in European government bonds, they reduced exposure to Ireland and Italy. They participated in a syndicated EUR 100-year bond from Austria, which was viewed as very attractively priced. Following good performance of this issue over the following weeks, the fiund manager reduced overweights in Austria and underweights in the Netherlands. They continued to participate in government related paper, where new issues offered substantial discounts to the secondary market.

Performance

The fund outperformed its benchmark over the quarter (0.8% vs 0.7%). The underweight duration stance as well as positioning to benefit from steepening in the yield curve and spread narrowing in semi-core bonds added to performance. Outperformance of government related paper also contributed positively.

METRICS: Modified Duration 11.29 years, Average yield 0.73% (30 Sept 2017)

Management Charge
0.75% pa of fund assets. Please refer to policy conditions for policy charges.

Geographical Split as at 30/09/2017

Bond Split as at 30/09/2017

Credit Rating as at 30/09/2017

This fund should be considered as being a medium-long term investment. Access to your investment in this fund may in periods of adverse investment conditions be restricted for up to one month. Asset Information source: BMO Global Asset Management, unless otherwise stated. Performance figures are as per 'price date'. * Fund size refers to assets under management in underlying fund.

The returns shown include the reinvestment of net income and are net of trading costs and management fees but before other insurance contract charges and as such do not represent the returns on insurance contracts linked to these funds. Details of all charges for a particular product are available on request.

The information in this document does not constitute investment advice. It does not take into account the investment objectives, financial position or needs of any particular investor. Before making an investment decision, you should consult suitably qualified and independent investment, taxation, and regulatory advisors to discuss your specific situation and investment objectives. The investment strategies and risk profiles outlined in this document may not be suitable for your specific investment needs.

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: Funds may be affected by changes in currency exchange rates.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: Credit Ratings do change from time to time.



The information provided is intended for use by retail investment customers and is based on our understanding of current law and revenue practice.
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Fund Performance

Fund Performance To Date
Fund Description Fund 1 mth YTD 1YR 3YR p.a. 5YR p.a. 10YR p.a. Launch p.a

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: Funds may be affected by changes in currency exchange rates.
Warning: If you invest in this product you may lose some or all of the money you invest.

FUND WARNINGS:
  1. Performance Fees: The growth of the Insight Currency fund will be subject to a 20% monthly performance fee which only applies when the growth rate exceeds 7% p.a. The Market Neutral Equity fund will be subject to a performance fee of 10% of any growth achieved above cash returns (specifically 3-month EURIBID).
  2. The price protection on the Protected Equity+ Fund, Series 3 is provided by Deutsche Bank AG.
  3. Money invested in the Deposit fund is placed with one or more Banks. The payment of interest and security of capital is provided by the Bank(s). The Bank(s) and not Friends First are providing the security on the Deposit fund. Please refer to the Fund Factsheet.
  4. The property fund managers reserve the right to place a withdrawal limit or/and to defer encashment for up to six months or such time as is necessary to facilitate the sale of assets if required.
Fund Performance

Daily Fund Prices and Performance
Fund Name Bid Price Price Date 1Mth (%) YTD (%) 1Yr (%) 3Yrs (%) 5Yrs (%) 10Yrs (%) Since Launch (%)

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