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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 183
Regions Covered Regions Covered 6
Fund Size €670M*
Latest Bid Price €1.67 
Price Date 22/09/2017 

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 main backdrop to financial markets in the second quarter was a combination of growing doubts about the likelihood of a significant fiscal expansion in the US, a well-flagged tightening by the Federal Reserve, and moderating inflationary expectations globally.Against that backdrop, a fall in bond yields and the US dollar was the unsurprising outcome, while stock markets were moderately lower. Europe was a contrastingly bright spot in this general trend, where Macron's victory in the French election sparked a broad rally across the region. Meanwhile the inconclusive outcome to the UK election weighed on sterling and related assets.

Further significant style divergences within the stock market were noteworthy. Value as a style lost a further 2.3% versus growth stocks in the second quarter, and is now almost 7% behind YTD. Meanwhile, the striking concentration of performance within stock markets also continued apace. In many cases, such divergences and concentrations are now touching historic extremes. This has significantly increased the likelihood of a major rotation within the stock-market in the period ahead.

The Fund underperformed this quarter. Relative stock selection contributed positively to performance in energy, and consumer services. In energy, the Spanish energy company Enagás, rose due to the release of better-than-expected quarterly results. A significant rise in gas volumes - which should hasten the rebalancing of the tariff this year - combined with the resolution of the Quintera regas plant in Chile to send the stock price higher. In consumer services, H & R Block, an American tax preparation company, gained due to the release of better-than-expected earnings. The significant expense reductions and unexpected debt collections were particularly well received. Management also announced a 9% increase in the quarterly dividend and a commitment to opportunistically buy-back stock.

Relative stock selection detracted from performance in software & services, and banks. In software & services, IBM fell due to the release of disappointing quarterly results. While earnings were broadly in line with consensus- supported by a one-off tax benefit - the weak revenue figure and margin performance revived scepticism on the sustainability of core earnings growth. In banks, our large active position in Canada accounted for all the underperformance. CIBC and Bank of Montreal fell particularly sharply in a quarter. The downgrade by Moody's of six of Canada's largest banks on concerns about household debt and exposure to a potential Canadian housing bubble weighed heavily on the financial sector overall.

Dividend Yield of the Fund at end of the quarter was 3.7% (30th June 2017)

Additional Information

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

Sector Split as at 30/06/2017

Sector Fund % Index
Financials 19.483 18.01%
Information Technology 16.6749 15.65%
Health Care 12.2903 12.55%
Consumer Discretionary 11.4737 12.32%
Industrials 9.364 11.51%
Consumer Staples 8.5143 9.67%
Energy 6.4039 6.04%
Materials 5.7654 4.90%
Real Estate 2.9363 3.21%
Utilities 3.1734 3.19%
Telecommunication Services 3.9209 2.95%

Top 10 Holdings as at 30/06/2017

Holdings Country % of Fund
MICROSOFT USA 3.57%
CANADIAN IMP.BK.COM. CANADA 2.89%
VALERO ENERGY USA 2.56%
ACCENTURE CLASS A USA 2.41%
CUMMINS USA 2.17%
BANK OF MONTREAL CANADA 1.93%
LYONDELLBASELL INDS.CL.A USA 1.92%
GILEAD SCIENCES USA 1.68%
CISCO SYSTEMS USA 1.67%
KOHL-S USA 1.57%

Geographical Split as at 30/06/2017

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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