Compass Stable is a medium risk fund. It invests across a broad range of growth and defensive assets such as government and corporate bonds, equities, commercial property, commodities as well as alternative strategies. The fund has a significantly lower level of risk than that associated with equity investments. The fund targets a volatility range of 5% to 10% over a rolling five year period. The fund will predominantly use indexed funds to provide cost effective exposure to various asset classes. The underlying assets of the fund may change.
Central bank policy shifts dominated market sentiment during the quarter. The US Federal Reserve led the way by raising its benchmark interest rate a second time since the beginning of 2017. The ECB signalled tighter monetary conditions ahead. Similarly, the Bank of England, which started phasing out its asset purchase program in 2014, is also considering hiking interest rates. Despite policy concerns, financial assets were generally well supported over the past three months, as both bonds and equities advanced globally. Results in the Compass multi-asset funds, however, were broadly negative due to the decline in non-euro equities and a drop in commodity prices.Eurozone equities advanced in the second quarter as markets responded positively to political events in France with the election of pro-EU candidate Emmanuel Macron. The Irish Property Fund has been active with new lettings and acquisitions with performance slightly dampened by redevelopment projects due to tenants vacating in anticipation of works. The UK Select Property Fund had an exceptional uplift as the two Bromley properties contracted to sell at a 45% premium.The largest detractor from performance over the quarter were commodities mainly driven by lower prices in the energy and precious metal sector. Base metals in general were down on concerns of weaker demand from China. Absolute Return Funds had a positive contribution to performance: the Market Neutral and Multi Strategy Global Bond posted modest gains, while the Insight Currency fund reversed losses from the previous quarter and gained 3.42%. As we enter the second half of the year macroeconomic and policy risks remain at the forefront. The unwinding of unprecedented Central Bank intervention carries significant uncertainty for investors; challenges as well as opportunities abound into today's financial markets. Far from making predictions as to what economic or interest rate environment we can expect going forward, it is important to ignore unpredictable market gyrations and focus instead on long-term investment objectives.The Compass Range maintains a disciplined investment approach that consistently seeks to deliver reliable outcomes for clients. Based on your capacity for risk, each profile seeks efficient ways to capitalise on the long-term potential of traditional and alternative asset classes, whilst minimising risk across diversified sources of risk and return. (30th June 2017)
0.75% pa of fund assets. Please refer to policy conditions for policy charges.
Asset Allocation as at 30/06/2017
Underlying Funds as at 30/06/2017
Indexed Global (Ex Euro) Equity
Indexed European Corporate Bond
Indexed Eurozone Equity
Indexed European Goverment Bond
CALM Euro Equity
European Corporate Bond
Commodities Optimum Yield
Indexed Emerging Markets
Multi Strategy Global Bond
Emerging Markets High Yield Equity
Indexed European Long Bond
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. Performance figures are as per 'price date'. Asset Information source: Friends First, unless otherwise stated. * 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.
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.