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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 119
Regions Covered Regions Covered 2
Fund Size €23.2m*
Latest Bid Price €1.4564 
Price Date 22/05/2018 

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 corporate bonds generated modestly negative returns over the quarter, with spreads widening against an increase in volatility and a flight to safe havens. Rising US inflation led to increased risk aversion amid fears the Federal Reserve (Fed) could raise interest rates by more than expected. At its March meeting, the Fed hiked rates by 0.25% to a range of 1.50% to 1.75%, citing a strengthening economic outlook. Despite a more challenging market backdrop, US pharmacy chain CVS Health completed a $40bn bond sale to help finance its acquisition of health insurer Aetna, with the issue significantly oversubscribed.

Activity:

The fund manager marginally reduced the fund's exposure to credit as they became more cautious on the outlook. As spreads tightened early in the quarter to reach levels last seen in 2014/15, they took profits primarily within non-financials, in issues that appeared most overvalued. They did, however, participate in various new issues over the quarter, including Richemont, Chubb Insurance and Orange.

Performance:

The fund marginally outperformed its benchmark over the quarter (-0.3% vs -0.4%). This modest outperformance was primarily driven by the short duration position. From a credit perspective, the fund was positioned near to neutral as a cautious stance meant that they reduced overweights, leaving the fund closer to the benchmark.

METRICS: Modified Duration 6.26 years, (31st March 2018)

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

Sector Split as at 31/03/2018

Top 10 Stocks as at 31/03/2018

Holdings Country Weighting %
EUROPEAN INVESTMENT BANK SR UNSECURED REGS 01/21 3.625 EU 3.26%
EUROPEAN FIN STABILITY F GOVT GUARANT REGS 12/29 2.75 EU 2.87%
EUROPEAN UNION GOVT GUARANT REGS 04/18 3.25 EU 2.33%
EUROPEAN STABILITY MECHANISM SR UNSECURED REGS 03/26 0.5 EU 2.22%
BUNDESREPUBLIK DEUTSCHLAND BUN BONDS REGS 08/25 1 Ger 2.18%
EUROPEAN FIN STABILITY F GOVT GUARANT REGS 06/24 1.75 EU 2.17%
BUNDESREPUBLIK DEUTSCHLAND BUN BONDS REGS 02/26 0.5 Ger 2.04%
EUROPEAN INVESTMENT BANK SR UNSECURED 10/37 4 EU 2.00%
BUNDESREPUBLIK DEUTSCHLAND BUN BONDS REGS 07/28 4.75 Ger 1.98%
BUNDESREPUBLIK DEUTSCHLAND BUN BONDS REGS 07/44 2.5 Ger 1.29%

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.

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.



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

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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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