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CALM Euro Equity Fund
Fund Snapshot
Launch Date 27/05/2015
Fund Manager Alder Capital
Risk Rating Risk Rating 4
Fund Type Asset Class Specialist Specialist
Stocks & Holdings 50
Regions Covered Regions Covered 1
Fund Size €25.3m*
Latest Bid Price €0.9382 
Price Date 22/05/2018 

Fund Performance

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Fund Summary
The CALM Euro Equity fund follows a rule-based or systematic investment strategy which gives investors exposure to the performance of Eurozone equities while aiming to control the volatility normally associated with this type of investment. The target level of volatility is c. 8%. It controls volatility by increasing or decreasing its exposure to equites depending on the predicted level of volatility in the market. The fund Primarily invests in Eurozone Equities using derivatives and will also hold cash deposits and government bonds. This fund is expected to be less volatile than an equity fund and hence the fund carries a medium risk profile.

Market Commentary
Developed equity markets started 2018 strongly as equity market volatility remained close to historic lows. The Eurostoxx50 Index rose over 3% within the first week in Jan. and retained most of that gain by the month end. With the daily forecast volatility of the Index remaining steady around an average level of approximately 11%; the exposure of the program averaged 74% during January and, as a result, the program broadly tracked the Index. The steady nature of the forecast volatility in January was reflected in a low realised volatility of the Eurostoxx50 Index of 10% (based on daily data, annualised). By comparison the realised volatility of the program was 7.2% (annualised), reflecting a month bereft of market shocks.

The strong start to 2018, that saw the Eurostoxx50 Index gain almost 5% in the first three weeks of January, was followed by a sharp correction of over 9% in the next 13 trading days and then a partial recovery of 4% in the last 13 days of February. The increase in volatility was larger than anything seen since the short-term spike around the US Presidential election in Nov 2016. The trigger for the market weakness was a concern over US inflation, this contrasted with recent spikes in volatility that have been driven more by political concerns. The proprietary forecast volatility used by the Program identified this increase in risk and the exposure of the Program was reduced from 72% at the end of January to 21% by the 6 February resulting in a lower peak-to-trough loss. As the Index recovered in the second half of February (and forecast volatility for the Index fell), the exposure level increased. The risk targeted & active trading strategy allowed the strategy navigate this period in a risk controlled manner and outperformed the Index during the first two months of the year.

February's equity market weakness was followed by another negative month in March. However, the drivers of the weakness appeared to be different with economic concerns being replaced by more political and sector specific news around US tech sector stocks. The change in the market stimulus was reflected in a range-bound but fluctuating forecast volatility for the Index. The fall in the Index at the start of the month (-3.6%) was almost fully recovered by mid-month before a second sharp fall of -4.6% that was partially recovered by month end. On each occasion the drawdown in the Program was controlled with the level of exposure to the Index being actively traded. The sharp market recoveries in March meant that the strongest return days coincided with higher forecast volatility for the Index and thus lowest exposure levels for the Program - although not without precedent, this is somewhat unusual.

The risk targeted & active trading strategy of the Program navigated this recent period in a risk controlled manner and outperformed the Index during the first quarter of the year

(31 March 2018)

Management Charge
1.00% pa of fund assets. Please refer to policy conditions for policy charges.

This fund should be considered as being a medium-long term investment. To be able to change its exposure to equities swiftly, cheaply, and frequently this fund may include financial derivative instruments. Access to your investment in this fund may in periods of adverse investment conditions be restricted for up to one month. Asset Information source: Alder Capital, 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.

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: 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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