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KBI Global High Yield Equity
Fund Snapshot
Launch Date 01/04/2007
Fund Manager KBI Global Investors
Risk Rating Risk Rating 5
Fund Type Asset Class Global Equity Global Equity
Diversification Diversification 4
Stocks & Holdings 178
Regions Covered Regions Covered 6
Fund Size €664m*
Latest Bid Price €1.8043 
Price Date 22/05/2018 

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 Volatility rose sharply across financial markets in the first quarter, due to higher bond yields, rising trade tensions and growing `data' concerns. The MSCI index of world equities ended the quarter 3.6% lower.The more significant cause of the increased volatility is likely the extraordinary monetary policy environment of recent years. By enjoying the benefits of such an environment for such a long period, the backdrop for stock investors has necessarily become more fragile. While this does not necessarily mark the end of the long bull market, it does suggest that less stable conditions are likely to persist.

The long-running trend of growth eclipsing value continued during the first quarter, as the outperformance of growth was particularly striking in North America. High yield was notably out-of-favour across all regions. Quality was more mixed, outperforming in North America and Japan but a drag on performance in Europe. The Fund underperformed the benchmark this quarter.

Relative stock selection contributed positively to performance in technology hardware & equipment, and energy. In technology hardware & equipment, US company Hewlett Packard Enterprise gained due to the release of strong results. Revenue was well ahead of consensus, driven mainly by strength in Computer and Storage revenue. In energy, US firm Valero Energy continues to excel as a low-cost operator which generates sufficient free cashflow to cover its dividend, buy-back some of its stock, and invest for future growth.

Relative stock selection detracted from performance in retailing and real estate. In retailing, following its sharp rally in the final quarter of 2017, the US firm L Brands' stock price fell sharply due to structural concerns which were reawakened by the release of disappointing December store comparables. Store comparables were down, led by Victoria's Secret, and margins were below plan, owing to a stronger than expected response to a rewards programme at Victoria's Secret. Notably, this caused a management update to the 4Q earnings outlook. In real estate, Kimco Realty fell sharply. Kimco is a US REIT focussed on open-air shopping centres, which are anchored generally by discount department stores, grocery stores or drugstores. While the quarterly results were marginally behind expectations, significant investor concern about the structural challenges facing these businesses has weighed heavily on the stock price.

Dividend Yield of the Fund at end of the quarter was 3.6% (31st March 2018)

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

Sector Split as at 31/03/2018

Sector Fund % Index
Financials 18.65 17.94%
Information Technology 18.24 17.61%
Consumer Discretionary 13.9 12.66%
Health Care 11.15 11.70%
Industrials 10.1 11.65%
Consumer Staples 7.54 8.67%
Energy 6.13 6.06%
Materials 5.58 5.08%
Real Estate 3.3 3.01%
Utilities 2.41 2.96%
Telecommunication Services 2.99 2.66%

Top 10 Holdings as at 31/03/2018

Holdings Country % of Fund
MICROSOFT USA 3.68%
VALERO ENERGY USA 3.13%
ACCENTURE CLASS A USA 3.12%
PFIZER USA 3.00%
LYONDELLBASELL INDS.CL.A USA 2.13%
CANADIAN IMP.BK.COM. CANADA 2.09%
CUMMINS USA 1.97%
AT&T USA 1.79%
GILEAD SCIENCES USA 1.73%
INTERNATIONAL BUS.MCHS. USA 1.61%

Geographical Split as at 31/03/2018

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.

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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