friends first magnet absolute fund

April 2016

Introducing

Portfolio Funds

DepositsPortfolio Funds

Portfolio Funds

Index Funds

Portfolio Funds

Active Funds

Investment Funds

Structured Products

Portfolio Funds

http://www.insightinvestment.com/

http://www.aldercapital.com/index.php

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

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April 2016

Insight Currency Fund

Multi Strategy Global Bond

Market Neutral Equity

‘Absolute Return’ in

Absolute return within

April 2016 May 2016


Multi Strategy Global Bond

Market Neutral Equity

Fund of funds


• 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

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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

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Global Macro


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.

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Global Macro


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)

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Global Macro


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

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Global Macro


Insight Currency – proven record, low correlation

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Global Macro


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

friends first magnet absolute fund

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