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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 €7.1Bn*
Latest Bid Price €1.0943 
Price Date 22/09/2017 

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:

Investing in capital markets proved to be particularly unpleasant in June. All key asset classes such as equities, bonds, US Dollar, gold and oil were down. However, the weaker performance was not accompanied by a significant increase of volatility. The MSCI ACWI lost 1.4%, the Euro Stoxx 50 even 3.2%. US equity prices were down by 1.6% in Euro, foremost due to the decline of the US Dollar. Reasons for weaker equity prices were the yield increase, government bonds retreated 0.5% in Euro, and the just below 5% drop of the oil price. Oil stocks and interest rate related names suffered high losses, e.g. in the consumer and telecommunication sectors. The very defensive positioning of the fund across all asset classes limited the monthly loss of the strategy.

Performance:

Performance in Q2 2017 was slightly negative. The performance YTD was as end of June at +1.39% (FC share class). The main positive contributor was the equity bucket however the allocation into equities was with 25% on average rather defensive. The bond portfolio contributed solid to the overall performance as well. The main detractor in Q2 2017 was the currency allocation, mainly the USD exposure.

Current Positioning and Outlook:

The scepticism with respect to an all too quiet and relaxed development in the equity markets paid off in June. Key risks that the fund manager had been at least concerned about have become reality. Increasing yields at the longer end of the interest rate curve, weakening oil prices and a further depreciation of the US Dollar caused the main headwinds. The fund started the month with a net equity proportion of 27.9% and ended the month at a proportion of 24.8%. This still reflects a rather cautious stance for the coming 2-3 months with regards to equity markets, but shows that opportunities offered by price setbacks were selectively seized. Particularly, the manager added positions in the sectors European banks and insurance as well as in technology/digitalization. Hedging of interest rate changes was reduced from 15% to 10% nominally. The duration is still slightly negative, which means that the fund will benefit from rising interest rates. Should the yield increase accelerate, the fund will reduce the hedging further, as Deutsche believe that the ECB will only take baby steps towards a "normalization". The net US Dollar exposure excluding gold came down by 1%-point to 10.4%. Nevertheless, they believe that the US Dollar will initially end its downward dive at approx. 1.15 against Euro. This mark represents the upper end of the trading range that has been in place for two and a half years by now.

(30th June 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 30/06/2017

Asset Allocation
Equities 39.74%
Cash 29.72%
Corporate Bonds 16.87%
Government Bonds 8.91%
Gold 4.40%
Fixed Interest Derivatives -8.55%
Equity Derivatives -14.95%

Equities, Regional Breakdown as at 30/06/2017

Region
Eurozone 17.80%
North America 10.30%
United Kingdom 3.10%
Switzerland 3.00%
Japan 2.50%
Asia ex Japan 1.90%
Emerging Markets and Others 1.20%

Fixed Income, Regional Breakdown as at 30/06/2017

Region
Eurozone 10.10%
North America 8.20%
Europe exEU 4.30%
Latin America 2.70%
Others 0.50%

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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