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KBI Eurozone High Yield Equity
Fund Snapshot
Launch Date 01/04/2007
Fund Manager Kleinwort Benson Investors
Risk Rating Risk Rating 6
Fund Type Asset Class Regional Equity Regional Equity
Diversification Diversification 3
Stocks & Holdings 51
Regions Covered Regions Covered 1
Fund Size €75M*
Latest Bid Price €1.2856 
Price Date 22/09/2017 

Fund Performance

Performance Line Graph

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Fund Summary
This is a Euro equity fund which invests in companies that pay higher dividends than their industry peers. In addition it adopts a quantitative stock selection process to eliminate 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 Q2 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 broadly higher.

Further significant style divergences within the stock market were noteworthy. Value as a style lost almost 2.3% versus growth in Q2, and is now 4.0% 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 outperformed the benchmark over the quarter. Relative stock selection contributed positively to performance in capital goods, and banks. In capital goods, Andritz, the Austrian plant engineering group, gained after reporting very strong order intake benefitting from strong pulp and paper end markets. In banks, the Italian bank, Intesa Sanpaolo, rose over the quarter and will start to pay dividends out of its own cashflow capacity without the need for disposals from next year. The stock price also benefitted from the decision of the ECB to sign-off on its NPL reduction plan, and growing evidence that net interest margins are improving, as mortgage rates appear to be stabilising while rates are increasing on corporate and SME loans.

Relative stock selection detracted from performance in materials, and automobiles & components. In materials, the German chemicals company BASF, fell as investors were concerned whether the volume growth is due to stock effects and hence could unwind, or due to underlying demand or market share gains. The company believes that there is some restocking involved but that most of the growth is demand and market share driven.

In automobiles & components, Daimler declined over the quarter. While the company continues to deliver on its growth and earnings promises, investors are becoming more concerned with longer term structural issues. There are signs that US auto credit is deteriorating, suggesting that we are at the late stage of the cycle, while regulatory risks remain with US and German investigations into Mercedes car emission control systems. Daimler is responding to the emissions issues with an ambitious electric vehicle project which will involve significant research and development and capital expenditure.

Dividend Yield at end of the quarter was 4.0% (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 23.3517 20.44%
INDUSTRIALS 18.6889 15.32%
CONSUMER DISCRETIONARY 13.19 13.63%
CONSUMER STAPLES 8.6937 10.48%
MATERIALS 9.7155 8.25%
HEALTH CARE 6.3575 8.20%
INFORMATION TECHNOLOGY 2.8017 7.74%
ENERGY 7.838 5.01%
UTILITIES 6.0776 5.01%
TELECOMMUNICATION SERVICES 0 4.16%
REAL ESTATE 3.2855 1.77%

Top 10 Holdings as at 30/06/2017

Holding Country % of Fund
SANOFI FRANCE 5.96%
DAIMLER GERMANY 5.95%
KONE -B- FINLAND 5.64%
INTESA SANPAOLO RSP ITALY 5.30%
AXA FRANCE 4.89%
CAIXABANK SPAIN 4.79%
TOTAL FRANCE 4.78%
GAS NATURAL SDG SPAIN 4.75%
BASF GERMANY 4.15%
EVONIK INDUSTRIES GERMANY 4.06%

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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