Managing risk has become increasingly difficult in a time when traditional defensive assets, such as Sovereign Bonds, contribute negative yields to portfolios with an associated risk to capital values should interest rates rise.
ESMA Risk Ratings
In response to demand for funds designed for the investor with a lower tolerance to risk Friends First has developed a number of market leading investment funds, which fit into the lower risk European Securities and Markets Authority (ESMA) rating of 3. In this context where a lower risk alternative to traditional defensive assets was required Magnet Absolute was introduced to our platform in 2016.
Magnet Absolute is a fund of absolute return funds which are less dependent on market direction than traditional investments. The fund has been designed as a defensive component of a portfolio which can be used as a substitute for a portion of a fixed income allocation.
The fund invests in five underlying strategies from four asset managers. Although each is trying to achieve positive returns over the medium term, each does so in a different way. The combination of complementary strategies used help to smooth out the investment journey and aid Magnet Absolute to meet its twin risk and return objectives. These are:
aim for annualised return of cash + 3.5% (before charges) over a three year period, and
maintain an ESMA risk rating of 3 out of 7
Magnet Absolute Asset Split
Magnet Absolute Performance
Launched on the 5th May 2016, Magnet Absolute aims for steady long term growth with a view to minimising significant short term fluctuations in value.
How to access the Friends First Magnet Absolute Fund