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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 121
Regions Covered Regions Covered 4
Fund Size €228m*
Latest Bid Price €1.0209 
Price Date 20/11/2017 

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 It was another very strong quarter for emerging market equities as persistently and pervasively lower inflation cast doubts over the extent of potential tightening by the Federal Reserve and the ECB with markets generally anticipating continued accommodation from global central banks. Robust earnings growth and a weaker dollar enabled emerging market equities to outperform developed market equities over the quarter with the MSCI Emerging Markets Index posting a rise of 4.1%. Emerging market equities underperformed during September for the first time this year after the Federal Reserve confirmed that balance sheet reduction would commence in October and Janet Yellen revealed a relatively hawkish stance on rates.

Latin America was the best performing region strongly supported by Brazil as the central bank reduced interest rates by 2.0% over the quarter. The dismissal of corruption charges against President Temer reinvigorated prospects of further reform measures while privatisation plans to tackle rising government deficits provided a further boost to the market. Emerging Asian and EMEA equities also made gains, with Russia and China leading the way. Russian equities were boosted by the sharp recovery in oil and gas prices. Chinese equities were buoyed by robust quarterly earnings, strong GDP growth and economic growth stability ahead of the 19th Communist Party Congress in October. The market suffered a sell off towards the end of the quarter following the first debt downgrade by S&P since 1999 due to rising debt and economic risk.

Growth outperformed value by 4.7% during the third quarter and has now outperformed by 16.1% so far this year. Growth was particularly strong in Asia and EMEA although value did manage to outperform in Latin America. High yield had a difficult time underperforming by over 4% in Asia although it did manage to outperform in EMEA.

Relative stock selection contributed positively to performance in banks, real estate and capital goods. In banks, Banco do Brasil made strong gains with loan growth accelerating and asset quality improving and also the improvement in efficiency and profitability as illustrated by the completion of its 555 branch rationalisation programme. Relative stock selection detracted from performance in software, technology hardware and retailing. In software, Netease, the Chinese internet technology company, declined as mobile games performance was much weaker than expected with the company's games only occupying two positions in the top 10. Onmyoji is deteriorating faster than anticipated due to strong competition from Tencent's Honor of Kings. MineCraft is only likely to kick in next year when Netease plans to add a top up channel.

Dividend Yield at end of the quarter was 3.9%(30th Sept 2017)

Additional Information

Management Charge
0.85% pa of fund assets. Please refer to policy conditions for policy charges.

Sector Split as at 30/09/2017

Sector Fund % Index %
INFORMATION TECHNOLOGY 26.23 27.60%
FINANCIALS 26.37 23.40%
CONSUMER DISCRETIONARY 8.85 10.29%
MATERIALS 7.84 7.22%
ENERGY 7.86 6.79%
CONSUMER STAPLES 5.04 6.48%
INDUSTRIALS 5.28 5.40%
TELECOMMUNICATION SERVICES 4.88 5.09%
REAL ESTATE 3.24 2.88%
UTILITIES 3.28 2.57%
HEALTH CARE 1.13 2.28%

Top 10 Holdings as at 30/09/2017

Holding Country % of Fund
TAIWAN SEMICON TAIWAN 4.44%
CHINA CON.BANK CHINA 3.59%
INDL.& COML.BK.OF CHINA CHINA 3.22%
HON HAI PRECN.IND. TAIWAN 3.03%
HCL TECHNOLOGIES INDIA 2.82%
INFOSYS INDIA 2.36%
TATA CONSULTANCY INDIA 2.29%
THAI OIL THAILAND 2.27%
NETEASE ADR 1:25 CHINA 2.25%
BAJAJ AUTO INDIA 2.07%

Geographical Split as at 30/09/2017

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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