This fund invests into the Absolute Insight UK Equity Market Neutral fund managed by Insight Investment. The Absolute Insight UK Equity Market Neutral Fund uses an Absolute Return Strategy. This type of strategy uses investment techniques which have the potential to make money in both rising and falling markets. The investment objective of the Fund is to seek to provide positive absolute returns in all market conditions against a cash benchmark. The manager will seek to meet the investment objective through, minimising the market related risks usually associated with investing in equities ('beta'), whilst isolating the stock specific returns ('alpha') primarily by use of a technique called 'pairing'. This involves long / short trading. All short positions will be achieved through the use of derivatives, whereas the Fund may achieve long exposure through both direct investment and derivative instruments.
The Fund strategy outperformed its benchmark over the period, returning 0.82%, gross of fees, compared to the 3-month Euribid return of -0.11%.Performance was driven by a range of positions. One example was a long position on the product testing company Eurofins as the company's revenue growth accelerated from a fourth-quarter low. The position was mostly hedged against the healthcare sector. Another pair trade that performed well was a long position in Vivendi, hedged with market and media sector instruments: our thesis remains that the share price undervalues the music business, given the growth in music streaming the fund manager expects. Looking ahead, Insight continue to believe markets are in transition to an environment which may be more rewarding for stock selection as uncertainty causes shifts in risk premia, leading to higher levels of dispersion of returns between stocks within their sectors. They maintained tight hedges to insulate the strategy from various forms of beta which have the potential to shift rapidly with political or policy news flow. (30th June 2017)
1.35% pa of fund assets plus a monthly performance fee of 10% of any investment growth over benchmark (3 month EURIBID). Please refer to policy conditions for policy charges.
Main Contributors to Return as at 30/06/2017
Countryside vs McCarthy and Stone & UK Market
Eurofins v Eurostoxx 50 HealthCare/Eurostoxx 600 HealthCare
Vivendi vs Eurostoxx 50 & Eurostoxx 50 Media & CAC
ASML vs Eurostoxx 50 Personal and Household Goods
Grifols B vs Grifols A
This fund should be considered as being anything from a short to medium or long term investment. This fund may include features such as borrowing, using derivatives, and short selling that will result in leveraged/geared returns which mean gains and losses will be multiplied. Access to your investment in this fund may in periods of adverse investment conditions be restricted for up to one month. Asset Information source: insight Investments, unless otherwise stated. Performance figures 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: 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.
Fund Performance To Date
Fund 1 mth
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.
Performance Fees: The growth of the Insight Currency fund will be subject to a 20% monthly performance fee
only applies when the growth rate exceeds 7% p.a. The Market Neutral Equity fund will be subject to a
fee of 10% of any growth achieved above cash returns (specifically 3-month EURIBID).
The price protection on the Protected Equity+ Fund, Series 3 is provided by Deutsche Bank AG.
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
fund. Please refer to the Fund Factsheet.
The property fund managers reserve the right to place a withdrawal limit or/and to defer encashment for up
six months or such time as is necessary to facilitate the sale of assets if required.