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KBI Global High Yield Equity
Fund Snapshot
Launch Date 01/04/2007
Fund Manager Kleinwort Benson Investors
Risk Rating Risk Rating 5
Fund Type Asset Class Global Equity Global Equity
Diversification Diversification 4
Stocks & Holdings 185
Regions Covered Regions Covered 6
Fund Size €671m*
Latest Bid Price €1.7135 
Price Date 20/11/2017 

Fund Performance

Performance Line Graph

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Fund Summary
This is a global equity fund which invests in companies that pay higher dividends than their industry peers. In addition it adopts a rigorous stock selection process to eliminate regional and industry sector bias. As an equity fund, this fund has a potentially high return but also a high risk profile given the risks inherent in investing in equities. The fund can be volatile over short to medium term periods.

Market Commentary
Market_Commentary_Photo_6.jpg The tenth anniversary of what many regard as the beginning of the global financial crisis passed with little fanfare in the third quarter. Stock markets remain buoyant, and increasingly fuelled by positive earnings news, the long rally underway since March 2009 shows little sign of abating. The MSCI index of world equities was up 1.1% on the quarter.

The main style trend of note was the continuing underperformance of value relative to growth. Following its sharp underperformance in the first half of the year, value lost some more ground on the quarter - particularly in North America. The only other style trend of note was the strong performance of smaller cap names relative to their larger cap equivalents.

The Fund outperformed the benchmark this quarter. Relative stock selection contributed positively to performance in energy, and retailing. In energy, Valero Energy, the Fortune 500 international manufacturer and marketer of transportation fuels and power, gained against a difficult industry backdrop. Valero is a low-cost operator which still generates sufficient free cashflow to cover its dividend, buy-back some of its stock, and invest for future growth. While its heavy coking refiners on the Gulf coast are likely to suffer somewhat in the wake of OPEC cuts, it remains relatively well positioned in a challenging environment. In retailing, Gap made strong gains as the release of better-than-expected quarterly results was the catalyst for a significant reappraisal of the stock. The evidence that management is taking the right steps to position the business for the long-term by re-allocating investment toward its higher margin, higher growth brands and channels was particularly well received.

Relative stock selection detracted from performance in diversified financials, and software & services. In diversified financials, Provident Financial, the British financial services group, fell after the company issued a profit-warning in June citing an operational issue relating to difficulties in the transition period to a new model of collections and new sales. However, management released a trading statement on 22nd August setting out a materially worse position from the one painted in June. Consequently, the group CEO resigned with immediate effect while the dividend for 2017 was scrapped. The stock was removed from the portfolio in September.

Dividend Yield of the Fund at end of the quarter was 3.6% (30th Sept 2017)

Additional Information

Management Charge
0.85% pa of fund assets. Please refer to policy conditions for policy charges.

Sector Split as at 30/09/2017

Sector Fund % Index
Financials 19.18 18.12%
Information Technology 17 16.24%
Health Care 11.71 12.33%
Consumer Discretionary 13.54 12.10%
Industrials 9.75 11.53%
Consumer Staples 6.97 9.08%
Energy 6.33 6.31%
Materials 6.01 5.10%
Real Estate 4.01 3.14%
Utilities 2.56 3.13%
Telecommunication Services 2.94 2.92%

Top 10 Holdings as at 30/09/2017

Holdings Country % of Fund
MICROSOFT USA 3.56%
PFIZER USA 3.16%
VALERO ENERGY USA 2.85%
ACCENTURE CLASS A USA 2.51%
CANADIAN IMP CANADA 2.45%
LYONDELLBASELL INDS.CL.A USA 2.13%
CUMMINS USA 2.09%
BANK OF MONTREAL CANADA 1.89%
CISCO SYSTEMS USA 1.73%
GILEAD SCIENCES USA 1.67%

Geographical Split 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: KBI, 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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