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Friends First has added a new strategy to the Compass Cautious, Stable and Portfolio funds – the Emerging Market Hard Currency Bond Indexed fund. The objective of the strategy is to track the performance of the J.P. Morgan Emerging Markets Global Diversified Bond Index.
Emerging Markets Hard Currency debt consists of US Dollar, Euro, British Pound and Japanese Yen-denominated sovereign and quasi-sovereign bonds issued across developing economies around the world. The fund will take exposure to approximately 127 issuers in 63 different countries.
Emerging Market Debt (EMD) is an attractive option for investors in the current low yielding environment. With interest rates at historic lows across the developed world, EMD offers compelling risk/return characteristics. Currently, yields in emerging market countries are higher than comparable US or European bonds and provide an attractive alternative to developed market bonds as a source of income.
The heterogeneous geographical exposure characteristic of the strategy also helps manage volatility, as the various regions and countries do not all tend to experience the same economic cycle concurrently.
For the Magnet Range, a new fund, the Magnet Emerging Market Equities fund, was launched during Quarter 2. The objective is to manage exposure to discretionary active emerging markets equity managers within the range.
Magnet Emerging Market Equities currently invests in the existing KBI Emerging Markets High Yield Equity fund and a new strategy, the UBS Emerging Markets Equity High Alpha Long-term Opportunity (“GEM HALO”) fund. The objective of the fund is to generate 500bps a year above the MSCI Emerging Markets Index over the course of a 3 to 5 year cycle.
The strategy seeks to capture the best ideas of the sector analysts in a high conviction portfolio. Internally generated research, focused on longer term value drivers at a company, industry and country level, is used by the team to estimate the fundamental value for stocks, upon which investment decisions are made.
These exciting developments for the Friends First Multi-Asset fund ranges are reflected in the Quarter 2 Reports which have just been published.
For more information on the Friends First range of funds, please contact your Account Manager or visit the Multi-Asset area on our fund centre on friendsfirst.ie.
Remember to visit our ABC Investment Journey to help guide your clients through their investment choice and decisions.
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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.
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.