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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 €1.04Bn*
Latest Bid Price €0.9991 
Price Date 22/09/2017 

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
The Multi Strategy Global Bond Fund had a positive second quarter in 2017 delivering 0.19%. The question on Eurozone stability and investor uncertainty continued to linger as this quarter witnessed French elections, where Macron's party successfully secured a comfortable majority, unexpected UK elections where the Conservative party's loss of majority is now relying on a coalition/agreement with the Northern Irish nationalist party and lastly the European banks both Spain and Italy "resolved" troubled banks. ECB signals continue to point towards a more hawkish stance, further strengthening the view of a less accommodative policy stance. Draghi stated that deflationary forces have been replaced by reflationary forces. The FED raised the target rate by 25bp, to a new range of 100 to 125bps, as was widely expected. In its statement, the FOMC indicated that it will begin the process of balance sheet normalization "this year". Economic data in the US disappointed with nonfarm pay rolls at 138k and core inflation at 1.7% year-on-year. Core government yields rose dramatically in response to Draghi and Carney's comments which some interpreted as hawkish.

The strategy's cash equivalent holdings are presently at 23% (the highest they have been in the last three years) with the short term view, at the present time that this offers both some protection from sudden shifts in market sentiment/market volatility and the flexibility to enter into targeted investment opportunities. Whilst holding on to cash also creates a material drag for Euro investors, the Investment team weighs this cost against the value of the option and protection that it provides. The team has been monitoring behaviour of the Bund and US Treasury markets and observes that in the last 3 years the severity of sell-offs in Bunds have been greater versus sell-offs in US Treasuries. This may have arisen partly because of nervousness around changes in central bank policy and positioning build-ups. The team believes this relationship can continue and think that a meaning selloff in Bunds without a comparable move in US Treasuries is unlikely. Therefore the strategy is adopting an approach whereby we have limited EUR duration, and even a short bias when compared with USD duration exposure. The strategy continues to use duration as a diversifier where appropriate, but favour the use of USD rather than EUR in order to achieve this. Despite the subdued outlook for inflation in the short-term the team believes there are some interesting opportunities in longer-term, market breakevens. These can offer some diversifying opportunities. The Fund Manager opened a long 10y Japan breakeven position (0.1y), believing market expectation of 10y inflation will go up. The team also maintains a modest long position in EUR breakeven inflation as a diversifier.

(30th June 2017)

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

Sector as at 30/06/2017

Cash 23.60%
Financials 22.20%
Sovereigns 17.80%
ABS 10.60%
Corporate Bonds 10.10%
EM Corporates 8.20%
EM Sovereigns 4.20%
Fund 2.00%
Covered Bonds 1.00%
Corporate Hybrids 0.30%

Country as at 30/06/2017

USA 24.40%
United Kingdom 13.70%
Japan 9.70%
Germany 6.60%
Indonesia 6.20%
Australia 6.00%
Sweden 4.30%
New Zealand 3.80%
Mexico 3.70%
Netherlands 3.50%

Credit Rating 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: 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.

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.

  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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