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During the course of the third quarter of 2018 the Compass Cautious, Stable and Portfolio funds invested in the Magnet Absolute Fund, a multi-manager fund of alternative strategies.
Magnet Absolute is a fund which invests in several alternative investment strategies, each of which is aiming to produce returns which are less dependent on market direction. Typically, these strategies aim to generate a total return and can go long and short the markets they trade. Friends First selects the underlying strategies and the investment managers used within Magnet Absolute. In doing so we select complementary strategies to aim to smooth out returns and reduce over-reliance on a single investment manager. Magnet Absolute is currently invested in six distinct strategies providing further diversification to the Compass fund range.
Alternative strategies can enhance risk-adjusted returns of a multi-asset portfolio, they offer genuine diversification, reduced volatility and offer potential downside protection during periods of market downturns.
The importance of alternative strategies in a multi-asset portfolio is two-fold:
For the last number of years investors have been consistently rewarded as low interest rates and monetary expansion boosted the performance of most financial assets. However, as we transition into a new market regime where both monetary and fiscal policies are evolving toward less accommodative frameworks, investors are likely to experience increased volatility and greater dispersion of returns across asset classes, regions, management styles as well as market factors performance.
Magnet Absolute invests in both systematic strategies which employ statistical techniques and quantitative models to determine trading decisions, as well as more discretionary Macro or Relative Value strategies that exploit market inefficiencies and seek attractive trading opportunities across a wide range of asset classes.
These exciting developments for the Friends First Compass Multi-Asset fund range are reflected in the quarter 3 Reports which have just been published.
Our Compass Multi-Asset Funds are available across the Friends First suite of Pension, Approved Retirement Funds (ARF), Approved Minimum Retirement Funds (AMRF) and Savings and Investment products.
Remember to visit our ABC Investment Journey to help guide your clients through their investment choice and decisions.
This article is for Financial Broker use only.
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: If you invest in this product, you may lose some or all of the money you invest.
Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment can go down as well as up.
Warning: Funds may be affected by changes in currency exchange rates.