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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 293
Regions Covered Regions Covered 2
Fund Size €61M*
Latest Bid Price €1.4594 
Price Date 22/09/2017 

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

Euro corporate bond yields were little changed over the second quarter. While credit markets in general continued to be supported by spread tightening, euro corporate bonds underperformed their US counterparts. Along with core eurozone government bonds, euro credit sold off sharply over the final trading days of the quarter amid signs that the European Central Bank (ECB) was considering paring back its stimulus measures. Against the backdrop of strong eurozone economic data, ECB President Mario Draghi talked of "reflationary" pressures and a "firming and broadening" of the eurozone recovery. The ECB also used its June meeting to remove its pledge to reduce rates further as needed. Meanwhile, the US Federal Reserve raised interest rates for the second time this year. Issuance remained strong, with General Electric coming to the market with an €8bn deal.

Activity

The fund manager remained conservatively positioned in credit, with a bias towards financials versus non-financials. The fund was positioned with a short duration stance on the expectation of higher yields, which proved to be the case towards quarter-end. New issues continued to be the focus of portfolio activity, and they selectively invested in bonds from the likes of Experian, Wells Fargo, and Nationwide Building society. On valuation grounds, the manager booked some profits on Generali and Coca-Cola.

Performance

The fund performed broadly in line with the benchmark over the quarter. While the overweight in financials contributed positively to performance, the overall underweight in credit detracted.

METRICS: Modified Duration 5.51 years, (30th June 2017)

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

Sector Split as at 30/06/2017

Top 10 Stocks as at 30/06/2017

Holdings Country Weighting %
BUNDESREPUBLIK DEUTSCHLAND BONDS REGS 07/28 4.75 Ger 4.06%
EUROPEAN INVESTMENT BANK SR UNSECURED REGS 01/21 3.625 EU 3.02%
BUNDESREPUBLIK DEUTSCHLAND BONDS REGS 08/25 1 Ger 2.03%
BUNDESREPUBLIK DEUTSCHLAND BONDS REGS 02/26 0.5 Ger 2.02%
EUROPEAN STABILITY MECHANISM SR UNSECURED REGS 03/26 0.5 EU 1.77%
EUROPEAN INVESTMENT BANK SR UNSECURED 01/24 2.125 EU 1.59%
EUROPEAN FINANCIAL STABILITY F GOVT GUARANT REGS 06/24 1.75 EU 1.25%
BUNDESREPUBLIK DEUTSCHLAND BONDS REGS 01/28 5.625 Ger 1.24%
EUROPEAN FINANCIAL STABILITY F GOVT GUARANT REGS 12/29 2.75 EU 1.08%
ITALY BUONI POLIENNALI DEL TES BONDS REGS 02/19 4.25 Italy 0.88%

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 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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