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Concept K
Fund Snapshot
Launch Date 03/05/2016
Fund Manager Deutsche AM
Risk Rating Risk Rating 4
Fund Type Asset Class Specialist Specialist
Stocks & Holdings >100
Regions Covered Regions Covered 8
Fund Size €7.4bn*
Latest Bid Price €1.1004 
Price Date 20/11/2017 

Fund Performance

Performance Line Graph

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Fund Summary
Concept K is an investment fund which aims to produce long term growth but with less of the volatility usually associated with stock market investing. The fund looks to produce a return for investors by investing across many different markets in whatever proportions the fund managers consider appropriate depending on market conditions. The fund primarily invests in company shares, government & corporate bonds, cash, gold and currencies. It can also use derivatives to implement investment ideas.

Market Commentary
Q1 Review:

September defied its reputation of being a weak stock market month, particularly European equity markets rallied strongly (EuroStoxx 50: +5.2% in EUR). The US equity market (S&P 500 in USD: +2.0%) and the Japanese equity market (Nikkei 225 in EUR: +1.9%) also both showed positive returns. The market seems to ignore the short-term negative economic impact of hurricane Harvey. Instead topics such as stable federal elections results in Germany and the proposal of a US tax reform at the end of the month were the main focus of attention. The US dollar advanced 0.6% against Euro. Gold trended lower (-2.5% in USD). In contrast, the oil price experienced an enormous tailwind (WTI in USD: 9.3%). Bond markets came under pressure during the course of the month. Signs by the ECB regarding tapering its asset purchase programme and the announcement of the US Federal Reserve to reduce its balance sheet resulted in a moderate yield increase for US and German sovereign bonds.

Performance:

In Q3 2017 the performance of Deutsche Concept Kaldemorgen was neutral (FC share class). The equity exposure (derivatives included, in local currency) contributed positively in Q3. Also the positions in government bonds and corporate bonds contributed positively (derivatives included, in local currency). The negative performance contribution came mainly from the fund's currency allocation. Especially the losses of the US Dollar vs Euro affected the fund's performance in Q3 2017.

AllocationThe average net equity allocation was at 27% in Q3. The gross equity exposure was at 27% on average. The bond exposure was decreased from 25.8% to 23.7% over the course of Q3. The total portfolio's duration is still very short. The currency allocation showed a low exposure to the US Dollar with around13% on average. The Euro exposure was quite high with 78% on average.

Current Positioning and Outlook:

The portfolio still has a defensive positioning (equities, bonds and currency). The current calm in the capital markets (with historically low volatility) is almost frightening. Market participants continue to focus on still very positive economic data and increasingly forget to price in potential risks. Geopolitical tensions as well as faster than expected monetary policy changes are apparently underestimated. We have high expectations regarding the upcoming reporting season. If expectations are not met, particularly the US market might be adversely affected. Already at this stage, it trades at a significant premium versus European markets. Accordingly, our US equity positions in the portfolio are largely hedged.

(30th Sept 2017)

Additional Information

Management Charge
1.00% pa of fund assets plus a performance fee of 15% of growth above the higher of 0% or EONIA, (the Euro Overnight Index average rate) subject to a High Water Mark calculated at the end of the previous year. For more details see the link to "Funds that incur Performance Fees" shown above.

Asset Allocation as at 30/09/2017

Asset Allocation of the Strategy
Equities 43.35%
Cash 28.76%
Corporate Bonds 15.35%
Government Bonds 8.36%
Gold 4.19%
Fixed Interest Derivatives -3.51%
Equity Derivatives -18.78%

Equities, Regional Breakdown as at 30/09/2017

Region
Eurozone 22.60%
North America 9.80%
Switzerland 3.40%
Japan 2.70%
United Kingdom 2.20%
Asia ex Japan 2.00%
Emerging Markets and Others 0.60%

Fixed Income, Regional Breakdown as at 30/09/2017

Region
Eurozone 10.30%
North America 7.90%
Europe exEU 3.10%
Latin America 1.90%
Others 0.40%

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: Deutsche Asset Management, 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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