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KBI Emerging Mkts Hi Yield Eq
Fund Snapshot
Launch Date 30/03/2015
Fund Manager Kleinwort Benson Investors
Risk Rating Risk Rating 6
Fund Type Asset Class Regional Equity Regional Equity
Stocks & Holdings 125
Regions Covered Regions Covered 4
Fund Size €239M*
Latest Bid Price €1.02 
Price Date 22/09/2017 

Fund Performance

Performance Line Graph

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Fund Summary
This is an equity fund which invests in high quality companies across the emerging economies of the world which are paying sustainable, higher dividends relative to their industry peers. The strategy 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 The main backdrop to emerging 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 generally higher with emerging markets outperforming their developed world counterparts.

Asia was the best performing region over the quarter, as China gained amidst a downgrade by Moody's and further attempts by the authorities to rein in credit growth. Investors were encouraged by a strong quarterly GDP release, and by news that MSCI is to add China A shares to its indices. Korea and Taiwan also gained while India was relatively subdued. EMEA also posted a modest rise although Russian equities were hit by a combination of currency and commodity weakness while Turkey and South Africa made gains. Qatar declined after several Gulf Cooperation Council countries severed diplomatic links with it. Latin American equities had a difficult quarter, as commodity weakness coupled with the indictment of President Temer for corruption charges weighed on the performance of Brazilian equities.

Meanwhile, the striking concentration of performance within emerging markets also continued apace. The top 10 stocks now account for almost a quarter of the capitalisation of the EM index and their combined performance has contributed more than 100% of the index return over the past 3 years.

The Fund underperformed the benchmark over the quarter. Relative stock selection contributed positively to performance in materials, and transportation. In materials, the South Korean industrial conglomerate, Hyosung Group gained as increased shipping volume and good progress on cost savings has boosted operating profit in the chemical and industrial materials division. In transportation, Air China rose strongly as the company benefits strongly from its dominant position in Beijing - especially as the main Chinese airline for international flights to and from the capital.

Relative stock selection detracted from performance in software & services, and banks. In software & services, the Indian multinational IT Services company, HCL Technologies fell as the structural shift to cloud computing globally is providing a tailwind to infrastructure management services, where Indian vendors such as HCL continue to have relatively poor penetration. In banks, Banco Do Brasil fell as Brazilian banks came under intense selling pressure due to the political corruption scandal.

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 %
INFORMATION TECHNOLOGY 26.5406 26.63%
FINANCIALS 26.4535 23.59%
CONSUMER DISCRETIONARY 8.4306 10.56%
MATERIALS 6.4894 7.09%
CONSUMER STAPLES 5.8373 6.79%
ENERGY 6.8358 6.55%
INDUSTRIALS 6.6297 5.73%
TELECOMMUNICATION SERVICES 5.3115 5.39%
REAL ESTATE 2.865 2.66%
UTILITIES 3.4452 2.61%
HEALTH CARE 1.1612 2.39%

Top 10 Holdings as at 30/06/2017

Holding Country % of Fund
TAIWAN SEMICON.MNFG. TAIWAN 4.48%
CHINA CON.BANK -H- CHINA 3.59%
HON HAI PRECN.IND. TAIWAN 3.43%
INDL.& COML.BK.OF CHINA -H- CHINA 2.94%
HCL TECHNOLOGIES INDIA 2.92%
INFOSYS INDIA 2.58%
TATA CONSULTANCY SVS. INDIA 2.36%
THAI OIL THAILAND 1.96%
HYUNDAI MARINE & FIRE IN. KOREA 1.84%
NETEASE CHINA 1.81%

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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