Since its launch in 2015, the Friends First CALM Eurozone Equity fund has been exposed to all of the equity market turbulence witnessed over the past 12 months. The fund strategy was tested almost immediately when it launched, as high levels of volatility were witnessed in the underlying equity index in what were predominantly falling equity markets environments. Through this period, the fund fully demonstrated its ability to control equity investment risk in a tight range around its annual target of 8% volatility.
The fund outperformed the EURO STOXX 50 index (net dividends reinvested) since inception and has been a contributing factor to the strong performance of our multi-asset range of Magnet and Compass portfolio fund ranges.
The elevated forecast volatility of the EURO STOXX 50 index during the 12 months to 31 May 2016 caused the CALM Eurozone Equity fund to cut its exposure to Eurozone equities so as to operate in a forecast volatility range close to 8%. The lower exposure of the CALM Eurozone Equity Fund to Eurozone equities resulted in a smaller loss than the Index.
The CALM Eurozone Equity fund was introduced to offer an additional risk-controlled investment solution for investors. The fund strategy has one objective: to keep the volatility of an investment in Eurozone equities in a tight range around an annualised volatility target of 8%, using a unique volatility forecasting system called CALM. The funds ability to forecast volatility reduces the likelihood of large losses and is the ideal solution for investors interested in controlled exposure to Eurozone Equities.
The CALM Eurozone Equity fund is available as a standalone fund option as well as featuring within a number of our Magnet and Compass range of portfolio funds. The Magnet and Compass ranges are ready-made portfolios, each designed with a particular type of investor in mind, making it easier for you to select the right investment for your needs.
The CALM Eurozone Equity fund and the Magnet and Compass Ranges are available across the Friends First suite of Pensions, ARF (Approved Retirement Funds), AMRF (Approved Minimum Retirement Funds) and Savings and Investment products.
For more information on the Friends First range of funds, please contact your Financial Broker or visit our fund centre.
*Source: Financial Express, figures calculated as at 14/07/2016.