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KBI Eurozone High Yield Equity
Fund Snapshot
Launch Date 01/04/2007
Fund Manager KBI Global Investors
Risk Rating Risk Rating 6
Fund Type Asset Class Regional Equity Regional Equity
Diversification Diversification 3
Stocks & Holdings 50
Regions Covered Regions Covered 1
Fund Size €68.1m*
Latest Bid Price €1.3421 
Price Date 22/05/2018 

Fund Performance

Performance Line Graph

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Fund Summary
This is a Eurozone 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 Despite a very solid start to the year global equity markets sold off as the quarter progressed as risk-off sentiment gathered momentum. The recovery following the initial sell-off in early February was short lived following the introduction of import tariffs by the Trump administration and some concern that the Federal Reserve might raise rates four times during 2018. Eurozone equities were under pressure as the further strengthening of the Euro raised doubts over the prospects for earnings growth in the coming year. The MSCI EMU Index finished down 2.8% on the quarter. There were no clear trends in terms of industry group performance. Technology hardware led the way followed by consumer durables and semiconductors. Automobiles and energy were the only other industry groups to end the quarter in positive territory. The worst performing industry groups included consumer services, retailing, pharmaceuticals and diversified financials. There was very little variation in terms of style performance with growth modestly outperforming value. Quality characteristics were not favoured by investors despite the apparent risk-off sentiment. High yield generated significant outperformance while small cap stocks were the best performers over the quarter. The strategy registered a decline, but outperformed the index.

Relative stock selection contributed positively to performance in telecoms, commercial and professional services and software. In telecoms, Finnish company Elisa rose as the company delivered a strong set of results boosted by acquisitions completed in 2017. Elisa increased its dividend ahead of expectations citing confidence in future growth. The improving macro environment should support further corporate growth. In software, French firm Cap Gemini gained as the core elements of the growth story remain intact as digital/cloud continues to grow along with continued momentum in the US and continental Europe.

Relative stock selection detracted from performance in automobiles, capital goods and real estate. In automobiles, German company Schaeffler declined as margin headwinds are causing problems for the auto division while the company faces the prospect of a long-term sales and margin decline due to rising electric vehicle demand. In capital goods, Siemens declined due to concerns over long-term prospects: growth and margins at the power and gas division are the most significant driver of the underperformance. The power and gas division is in the eye of the storm from the energy transition. Quarterly results did, at least, show good order growth and execution and some signs of stabilisation in the power and gas division.

Dividend Yield at end of the quarter was 4.5% (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 23.59 20.23%
INDUSTRIALS 12.92 15.02%
CONSUMER DISCRETIONARY 13.44 14.18%
CONSUMER STAPLES 7.69 10.11%
MATERIALS 8.37 8.60%
INFORMATION TECHNOLOGY 5.1 8.44%
HEALTH CARE 8.13 7.45%
ENERGY 6.63 5.30%
UTILITIES 6.12 5.10%
TELECOMMUNICATION SERVICES 5.16 3.77%
REAL ESTATE 2.86 1.80%

Top 10 Holdings as at 31/03/2018

Holding Country % of Fund
DAIMLER GERMANY 5.89%
ELISA FINLAND 4.94%
SANOFI FRANCE 4.86%
ANDRITZ AUSTRIA 4.76%
TOTAL FRANCE 4.55%
SIEMENS GERMANY 4.35%
BASF GERMANY 4.05%
IBERDROLA SPAIN 4.04%
UNILEVER DR NETHERLANDS 3.76%
NATIXIS FRANCE 3.15%

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

Fund Performance To Date
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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