Following the economic downturn, conservatism amongst investors remains high, but falling deposit rates have seen investors take on some risk to seek stronger returns. The Friends First Magnet and Compass range of portfolio funds enable you to participate in markets but in a manner which suits your appetite for risk.
The many working parts of the Magnet and Compass Portfolio funds are each carefully selected by what they offer to the funds composition. Over the last few years Friends First have developed a number of market leading investment funds, which fit into the lower risk European Securities and Market Authority (ESMA) ratings of 3 and 4. This was a direct response to the demand for funds designed for the investor with a lower tolerance to risk.
One such fund is the Multi Strategy Global Bond fund; managed by Deutsche Asset & Wealth Management, the fund is designed as a lower risk portfolio diversifier under the ESMA 3 risk rating. This fund was chosen to be a component of the Friends First portfolio fund range because of the three key objectives in its underlying strategy:
Target return of cash + 3% pa (before fees)
Preserve capital over 3 year cycles
Maintain an annual volatility of less than 3% pa
In this low interest rate environment the Friends First Multi Strategy Global Bond fund is proving to be a popular alternative option and is a constituent fund within our range of both Magnet & Compass Portfolio funds.
The Multi Strategy Global Bond fund can access the full universe of fixed income markets and instruments to target steady returns in all market conditions with a focus on capital preservation.
The managers use a combination of strategic and tactical positions depending on market conditions and use an extended ‘toolkit’ (including the use of derivatives) to mitigate and hedge risks in order to implement views in the most efficient way.
Fixed interest investments are often used to help manage risk in a portfolio, however, over recent times we have seen increased uncertainty in bond markets. This fund provides a real alternative in a time of particular uncertainty in bond markets.