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European Corporate Bond Fund
Fund Snapshot
Launch Date 04/12/2002
Fund Manager BMO Global Asset Management
Risk Rating Risk Rating 3
Fund Type Asset Class Fixed Interest Fixed Interest
Diversification Diversification 4
Stocks & Holdings 284
Regions Covered Regions Covered 2
Fund Size €65.1m*
Latest Bid Price €1.4717 
Price Date 20/11/2017 

Fund Performance

Performance Line Graph

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Fund Summary
The European Corporate Bond Fund invests primarily in Euro denominated fixed interest securities issued by corporate entities with the aim of producing a better return outcome than government bonds. Corporate bond investments carry a higher degree of risk than Sovereign bonds. The index underlying this fund is the Barclays Euro Aggregate Credit Index.

Market Commentary
Market

Global credit generated positive returns over the quarter, with the asset class supported by spread tightening. Credit markets continued to be underpinned by robust corporate fundamentals as financial results and earnings remained buoyant. Corporate bonds also found support from historically low volatility, despite brief upsurges in volatility that were mainly associated with North Korean missile and nuclear tests. Activity in the corporate bond market remained strong as investors continued their search for yield. British American Tobacco came to the market in the second biggest corporate bond deal of 2017 as it issued debt worth $17.25bn in a move to partially finance its acquisition of Reynolds American. Similarly, Amazon issued $16bn of debt to help fund its takeover of retailer Whole Foods.

Activity

The overall positioning remained little changed, with fund's credit risk remaining at similar levels to the benchmark. The fund manager remained overweight financials where valuations are more attractive than corporates, with spreads having been driven ever tighter by the European Central Bank's continuing asset purchase programme. New issues continued to be the focus of portfolio activity, and they selectively invested in bonds from the likes of British Telecom, Volkswagen and Lloyds Bank.

Performance

The fund underperformed its benchmark over the quarter (0.9% vs 1.0%). The marginal underweight in credit detracted as spreads continued to tighten while the short duration position had little impact as government bond yields were little changed over the period a whole.

METRICS: Modified Duration 4.14 years, (30th Sept 2017)

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

Sector Split as at 30/09/2017

Top 10 Stocks as at 30/09/2017

Holdings Country Weighting %
Bund 1% 15/08/25 Ger 4.15%
Bund 4.75% 04/07/28 Ger 2.77%
European Investment Bank 3.625% 15/01/21 Emtn EU 2.62%
Bund 0.5% 15/02/26 Ger 1.92%
European Financial Stability F 2.75% 03/12/29 EU 1.89%
European Stability Mechanism 0.5% 02/03/26 Emtn EU 1.78%
European Investment Bank 2.125% 15/01/24 Emtn EU 1.76%
European Financial Stability F 1.75% 27/06/24 Emtn EU 1.73%
European Investment Bank 4% 15/10/37 Intl EU 1.66%
Bund 5.625% 04/01/28 Ger 1.35%

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.



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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