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Multi Strategy Global Bond
Fund Snapshot
Launch Date 30/03/2015
Fund Manager Deutsche AM
Risk Rating Risk Rating 3
Fund Type Asset Class Specialist Specialist
Stocks & Holdings 30 to 50
Regions Covered Regions Covered 5
Fund Size €774.9m*
Latest Bid Price €0.9864 
Price Date 22/05/2018 

Fund Performance

Performance Line Graph

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Fund Summary
This is a Bond Fund that employs several strategies in its aim to provide a return of cash + 3% (gross of fees) at a low level of volatility (below 3% annualised) and preserve capital over a rolling 3 year period. As well as investing in bonds directly, the Multi Strategy Global Bond Fund uses derivatives to potentially earn positive returns regardless as to whether bond markets are rising or falling. The use of these instruments requires the support of a robust risk management process which is integral to the disciplined approach employed by the fund manager, Deutsche AM. A 3 year capital preservation objective indicates this fund would be held with a medium term outook.

Market Commentary
In January, Eurozone economic data didn't surprise. US core inflation rose by 0.3% mm (month on month) with year on year inflation now at 2.1%. UK economic date beat expectations, while inflation came down slightly to 3%. China Q4 GDP came in at 6.8% driven by a strong service sector. The strategy was changed to end the month with a duration of -0.3y (prev. +0.2y) by increasing the short duration in EUR and taking a short GBP view.

In February, Eurozone economic data was muted and inflation fell to 1.2% driven by base effects in the energy price component and a lower food price increase. In the US January employment numbers showed an increase of 200k, average hourly earnings rose 2.9% annualised, and, core inflation increased. FED minutes from the January FOMC meeting indicated further improvement in the growth outlook and had a slightly more hawkish view on inflation. The positive employment report led to a market sell-off driven by inflation concerns, with both treasury yields and equity markets selling off, and VIX reaching 37. 10y US treasury yields reached an intra-month high of 2.95% closing the month at 2.86% (+0.16%). Credit spreads also sold off, with European and US high yield 28bp and 10bp wider respectively.

The strategy ended the month with a duration of -0.6y (prev. -0.3y), and the fund manager kept its long USD and short EUR duration view for the length of the month. The team reduced its long GBP duration view to neutral at the beginning of the month, and opened an overall short duration view in GBP towards month end.

At the March meeting the ECB kept its monetary policy unchanged but decided unanimously to remove the explicit pledge to step up the asset purchase programme. In addition, the statement confirmed the strong and broad-based economic growth in the Eurozone, with some faster-than-expected growth in the near term. On the political side the volatility around US trade tariffs and a potential trade war with China gained traction, leading to increased volatility in the market.

The strategy ended the month with a duration of +0.4y (prev. -0.6y). The PM team reduced overall portfolio risk across rates and credit in view of rising real risks in the market, coming from: (i) global equity sell off driven by technology stocks in the US (United States), (ii) trade tensions rising between the US and China.

31st March 2018

Management Charge
0.95% pa of fund assets. Please refer to policy conditions for policy charges.

Sector as at 31/03/2018

Sector
Financials 28.10%
Cash 17.70%
Sovereigns 15.20%
Asset Backed Securities 13.20%
Corporate Bonds 11.70%
EM Corporates 6.10%
Fund 4.50%
EM Sovereigns 3.50%

Country as at 31/03/2018

Country
USA 25.10%
Japan 12.50%
United Kingdom 10.50%
Australia 6.80%
Sweden 6.40%
Germany 5.40%
Switzerland 4.00%
Netherlands 3.30%
Spain 3.10%
Mexico 2.90%

Credit Rating 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: Asset Information source: Deutsche Asset Management. 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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