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April 2016
Introducing
Portfolio Funds
DepositsPortfolio Funds
Portfolio Funds
Index Funds
Portfolio Funds
Active Funds
Investment Funds
Structured Products
Portfolio Funds
Portfolio Funds – two distinct styles
Will use range of funds available on FF platform, embracing absolute return strategies.
Will use range of funds available on FF platform, but will have a bias towards passive funds.
‘Alternatives’ in
Traditional Assets Alternative Assets Absolute Return Strategies
April 2016 May 2016
April 2016
Insight Currency Fund
Multi Strategy Global Bond
Market Neutral Equity
‘Absolute Return’ in
Absolute return within
April 2016 May 2016
Insight Currency Fund
Multi Strategy Global Bond
Market Neutral Equity
Fund of funds
Insight Currency Fund
• Building ‘block’ of Magnet• Will also be available stand-alone
• Multi-manager, multi-strategy• Target return :
• Cash + 3.5% (gross) over 3 years
• Target risk :• Maintain an ESME 3 risk rating
• Friends First oversight
25%
25%
10%
20%
20%
Global Bond Multi Strat Unconstrained Bonds
European Absolute returnEquity Long / Short
Insight Currency 6% volCurrencies Concept K
Global Macro
Market Neutral Equity 6% volEquity Long Short
25%
25%
10%
20%
20%
Global Bond Multi Strat Unconstrained Bonds
European Absolute returnEquity Long / Short
Insight Currency 6% volCurrencies Concept K
Global Macro
Market Neutral Equity 6% volEquity Long Short
Calculation of performance is based on the time-weighted return and excludes front-end fees. Individual costs for funds such as management / performance fee, commissions and other charges have been included in this presentation. Past performance is not a reliable indicator of future returns. Any security information shown herein are strictly for illustrative purposes and not to be construed as an offer or solicitation. 02.05.2011 = 100As of: March 31, 2016Source: Deutsche Asset Management Investment GmbH, Thomson Reuters Datastream, currency: Euro
25%
25%10%
20%
20%
Global Bond Multi Strat Unconstrained Bonds
European Absolute returnEquity Long / Short
Insight Currency 6% volCurrencies Concept K
Global Macro
Market Neutral Equity 6% volEquity Long Short
Global Equity Market Neutral 6% vol
Quant screen to isolate 5 ‘styles’ Effect of other styles stripped out
Global Equity Market Neutral 6% vol
Effect of other styles stripped out• Portfolio construction :• ‘long’ top 20% in each style • ‘short’ bottom 20% in each style
• Each style given equal risk weighting
• Rebalanced monthly
• Target volatility of 6% pa.
25%
25%
10%
20%
20%
Global Bond Multi Strat Unconstrained Bonds
European Absolute returnEquity Long / Short
Insight Currency 6% volCurrencies Concept K
Global Macro
Market Neutral Equity 6% volEquity Long Short
European Absolute Return
• Equity Long Short strategy with ‘cash+’ performance objective
• Very active manager - John Bennett• Manages €12 billion in European equities• Strategy AUM €1.8 billion
• Long bias with active short book and market hedging
• Gross exposure can go up to 200%• Net exposure 0% to 75%• 70 to 100 positions• Gross 91.6%; Net 22.5% (Feb 2016)
25%
25%
10%
20%
20%
Global Bond Multi Strat Unconstrained Bonds
European Absolute returnEquity Long / Short
Insight Currency 6% volCurrencies Concept K
Global Macro
Market Neutral Equity 6% volEquity Long Short
Multi Strat Global Bond
• Unconstrained global bond strategy
• Ability to go long & short
• Doesn’t major on currency as a return driver
• 3 Objectives• Capital preservation over 3 years• Annualised volatility < 3%• Target return – Cash + 3% pa
• €1.1 billion in AUM
25%
25%
10%
20%
20%
Global Bond Multi Strat Unconstrained Bonds
European Absolute returnEquity Long / Short
Insight Currency 6% volCurrencies Concept K
Global Macro
Market Neutral Equity 6% volEquity Long Short
Insight Currency – proven record, low correlation
25%
25%
10%
20%
20%
Global Bond Multi Strat Unconstrained Bonds
European Absolute returnEquity Long / Short
Insight Currency 6% volCurrencies Concept K
Global Macro
Market Neutral Equity 6% volEquity Long Short
Magnet Absolute – how might it have done ?
Figures show past performance, where available, and back-tested data before charges. Where neither are available for any of the underlying strategies they have been removed from the mix and their allocation re-distributed pro-rated to the other strategies. These figures are designed to give an indication only of how the strategy may have performed in different market conditions.
• FMC – overall charge of 0.95% • Some underlying strategies have performance fees• Weighted average c. 10% above cash
• Available from 1st May• Across savings, investments & pension products (excluding PRSAs)• Stand alone fund • Constituent part of Magnet Funds (not Compass Range)
• Features• Multi manager, multi strategy• Performance objective – cash + 3.5% (before charges)• Risk objective – maintain ESMA 3• Friends First oversight