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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 €1.03bn*
Latest Bid Price €0.9975 
Price Date 20/11/2017 

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
Q3 started with a widespread sovereign selloff prompted by European Central Bank (ECB) president Dragi's hawkish speech referring to improved reflationary pressure in the Eurozone. In addition Brexit discussions between the European Union and the United Kingdom exhibited a divergence of views and in the United States a repeal of Obamacare collapsed due to a lack of support in the US Congress alongside continued investigations regarding Russian influence in the US election.

August began with a stronger than expected US non-farm pay-roll report but just a few days later President Trump threatened North Korea with "fire and fury" leading to a risk-off sentiment in markets. Nonetheless, there was a consensus on growth and that inflation would increase over time. The ECB also acknowledged the strengthened economic expansion and confirmed that risks to the growth outlook were broadly balanced.

In September the German elections and the build up to the Catalonian independence referendum were key political events. European economic data continued its upward trend. The ECB (European Central Bank) revised upwards its growth outlook to 2.2% from 1.9% in June, while acknowledging the EUR appreciation as a source of uncertainty that requires monitoring. In the US focus remained on the tensions with North Korea and the tax reform discussions. The FED statement formally announced the process of balance sheet normalization starting in October, as expected by the market. In the UK, the BOE indicated further tightening of monetary policy.

Duration

Over the course of August the PM team gradually reduced its core rates duration contribution, switching to negative duration in euro and reduced duration in sterling and US dollar close to zero. Towards September end the team reduced its short in GBP duration back to neutral, and implemented a small long USD duration bringing the overall duration contribution of the strategy to +0.7y. The team maintained a small short in EUR duration.

Credit

Over the quarter the PM team slightly added to its financials exposure, switching out of lower yielding bonds to higher yielding ones. The PM team selectively allocated to short dated corporates, with a focus on US and core European markets.

Cash

The PM team kept the cash balance at around 16%, believing that this offers some protection from sudden shifts in market sentiment and volatility as well as the flexibility to enter into targeted investment opportunities. Whilst holding on to cash also creates a material drag for Euro investors, the PM team weighs this cost against the value of the option and protection that it provides. This is done in conjunction with some partial hedges that reduce, for example, the strategy's overall credit exposure.



(30th Sept 2017)

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

Sector as at 30/09/2017

Strategy Sector Split
Financials 29.85%
Cash 17.60%
Sovereigns 15.91%
Asset Backed Securities 11.59%
Corporate Bonds 11.10%
EM Corporates 7.17%
EM Sovereigns 4.03%
Fund 2.06%
Covered Bonds 0.69%

Country as at 30/09/2017

Country
USA 23.20%
United Kingdom 10.20%
Japan 9.60%
Australia 7.70%
Germany 6.00%
Sweden 4.60%
Netherlands 4.10%
Mexico 3.40%
New Zealand 3.40%
France 3.30%

Credit Rating 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: 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.

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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