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European Long Bond Fund
Fund Snapshot
Launch Date 25/09/2002
Fund Manager BMO Global Asset Management
Risk Rating Risk Rating 4
Fund Type Asset Class Fixed Interest Fixed Interest
Diversification Diversification 3
Stocks & Holdings 49
Regions Covered Regions Covered 2
Fund Size €60.1m*
Latest Bid Price €2.0073 
Price Date 22/05/2018 

Fund Performance

Performance Line Graph

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Fund Summary
The objective of this fund is to provide broad exposure to long dated (at least 15 years until Maturity) Euro denominated debt of countries of the European Monetary Union. The underlying benchmark for the fund is the 100% Barclays Euro Aggregate Treasury AAA-AA > 10 yrs.

Market Commentary
Market:

Core eurozone bond yields declined over the quarter. Along with a general rise in risk aversion, eurozone inflation slowed and there were also signs that economic activity in the bloc may have peaked. Inflation edged down to 1.1% year on year in February versus 1.3% in the prior month, a reflection of the continued dampening impact on consumer prices from the earlier appreciation in the euro. While eurozone economic data remained generally buoyant, manufacturing and services survey data showed signs of slowing momentum. Comments from European Central Bank officials suggested they viewed the subdued nature of eurozone inflation as making the bank's quantitative easing policy as more likely to be extended beyond September. German 10-year bund yields were little changed, at 0.49%.

Activity:

The fund manager entered the year with an underweight duration position, given the strong global economic backdrop and expectation that central banks would continue to remove monetary accommodation. As yields increased, they reduced the scale of the duration stance, closing the period slightly underweight. In combination with this, they raised their underweight position in France, whilst initiating overweights in Finland, Austria and Belgium. In primary markets, they invested in Spain, Slovenia and Italy, though subsequently closed long positions in the latter following strong performance.

Performance:

The fund performed in line with the benchmark over the quarter (1.7% vs 1.7%). Our overall underweight duration stance and curve positioning focussed on underweighting the 10-year segment and this contributed positively to performance. Underweight positions in France detracted from performance, as consensus short positions combined with ongoing Japanese buying saw spreads tighten, though this was offset by off-benchmark long positions in Spain, Slovenia and Italy. Long positions in government related bonds also detracted from performance as spreads widened amid a glut of new issuance.

METRICS: Modified Duration 15.3 years, Total yield 1.07% (31st March 2018)

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

Geographical Split as at 31/03/2018

Maturity Distribution as at 31/03/2018

Credit Rating as at 31/03/2018

This fund can perform well if interest rates are falling. In a rising interest rate environment this fund can produce negative results. This fund should be considered as being a medium to 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. * 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.

The funds referred to on this page may be linked to an insurance-based investment product and the Key Information Document (KID) for this product is available at www.friendsfirst.ie/kids. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the location above.

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: If you invest in this product you may lose some or all of the money you invest.



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

The funds referred to on this page may be linked to an insurance-based investment product and the Key Information Document (KID) for this product is available at www.friendsfirst.ie/kids. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the location above.

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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