Front Strategy Fund (UCITS)
28.4.2017
INVESTMENT OBJECTIVE AND HOW AND WHERE THE FUND INVESTS
The objective of the Front Strategy Fund is to employ active portfolio management to gain the highest possible medium-term return at the chosen risk level. The Fund’s investments are efficiently diversified geographically
and across different asset types. Investments are mainly made in instruments that track the performance of a specific equity, interest rate, credit or commodity index, or a combination of these. This takes place primarily
through ETFs. Under neutral conditions, the Front Strategy Fund has an equity risk of 45%. The Fund’s objective is to offer investors a solid foundation for asset management and for building up their investment assets.
MARKET COMMENT
In April the equity market developed moderately. Especially European markets benefited from a detente on the political scene as the probability of a win for Macron in the French presidential elections grew stronger.
Especially in France the stock market developed nicely. In the US the optimism that reigned after the elections was muted as the new administration clearly faces challenges in progressing their renewal programs. The
market though still anticipates a large tax reform. Regarding the economic outlook in Europe also data published in April point toward a somewhat more solid development. In the US the statistics flow has been more
contradictory and especially the industry expectations have weakened during the last month. Reporting for the first quarter were nevertheless on a good level generally speaking. Statistical information on the Chinese
economy have painted a picture of a somewhat faster and more stable growth than expected.
The equity market development was good on western markets, but a strengthening euro weakened the profit from outside the euroarea (S&P 500 TR-index +1,0 % / -0,9 % in euros, Stoxx 600 TR-index +2,0 %, OMX Helsinki
Cap GI +5,0 %). On the EM markets price development was positive in general (MSCI Emerging Markets TR index +2,2 % / +0,4 % in euros). The returns for sovereign as well as IG and HY corporate bond indices were
positive in April.
In the end of April, after the first round of the French presidential election the position in French equity taken in mid-March was sold. The Fund returned (A3 series) +0,06 % in April.
RETURN
A3
FI4000041363
132,00
A4
FI4000041371
127,07
A5
FI4000060421
127,96
A6
FI4000060439
118,21
B3
FI4000157755
122,11
B4
FI4000157763
127,07
B5
FI4000157771
120,86
1 week
1 month
YTD
1 year
0,14 %
0,06 %
2,73 %
8,41 %
0,13 %
0,01 %
2,48 %
7,61 %
0,15 %
0,11 %
2,95 %
9,12 %
0,12 %
-0,03 %
2,31 %
7,05 %
0,14 %
0,06 %
-1,29 %
4,17 %
0,13 %
0,01 %
2,48 %
7,61 %
0,15 %
0,11 %
-1,07 %
4,85 %
From start
Volatility (30 days)
Volatility (1 year)
Volatility (from start)
32,00 %
3,27 %
5,53 %
8,47 %
1,18 %
27,07 %
3,29 %
5,53 %
8,47 %
1,93 %
27,96 %
3,25 %
5,53 %
8,47 %
0,53 %
18,21 %
3,31 %
5,54 %
8,47 %
2,43 %
2,96 %
3,27 %
6,82 %
9,40 %
1,18 %
9,93 %
3,29 %
5,53 %
8,42 %
1,93 %
6,26 %
3,25 %
6,81 %
9,05 %
0,53 %
1 000 000 €
10 000 €
30 000 000 €
100 €
1 000 000 €
10 000 €
30 000 000 €
ISIN
Net Asset Value (NAV)
Ongoing charges (1.1.2017)
Minimum investment
VALUATIONS
140
135
130
125
120
115
110
105
100
95
90
30.3.12
30.9.12
31.3.13
30.9.13
31.3.14
A3
A4
30.9.14
A5
10 LARGEST HOLDINGS OF THE FUND
A6
31.3.15
B3
30.9.15
B4
31.3.16
30.9.16
31.3.17
B5
ASSET CLASS ALLOCATION
Name
ISHARES MARKIT IBOXX EUR H/Y
Cash
Share
17,5 %
12,4 %
ISHARES BG EURO CORP BOND
DB X-TRACKERS MSCI AC ASIA X-JP TRN INDEX
ISHARES BARCLAYS $ TREASURY BOND 1-3YR UCITS ETF
db x-trackers MSCI World Industrials Index UCITS ETF (DR)
OMXH25 Index Share
DB X-TRACKERS DJ STOXX 600
SPDR Barclays Euro High Yield Bond UCITS ETF
ISHARES FTSE 100 UCITS ETF (Acc) (SXRW)
11,4 %
7,6 %
4,9 %
3,9 %
3,7 %
3,3 %
2,5 %
2,4 %
Cash EUR
11,0 %
11,8 %
0,2 %
0,4 %
Cash USD
15,3 %
23,9 %
25,9 %
Cash GBP
11,4 %
Corporate Bond
HY
Corporate Bond
IG
Equity DM
The Fund rules and the simplified prospectusare are available free of charge at Front Capital Ltd and at the address www.front.fi.
The Fund is managed by Front Asset Management Ltd (Business ID:2045142-3, domiciled in Helsinki), Aleksanterinkatu 48 A 6th. floor, 00100 Helsinki.
Front Capital Ltd (Business ID 2045856-1, domiciled in Helsinki), Aleksanterinkatu 48 A, 00100 Helsinki, is responsible for sales and portfolio management of the Fund.
This report has been made for information purposes only. The report is not a recommendation to subscribe or redeem fund units. Investment decisions should not be based only on the report investors must familiarize
themselves both with the key investor information document and the official fund prospectus, all to be found at www.front.fi. Although the report has been drawn carefully and the aim has been to make sure that every
number and data in the report is correct, we are not liable for possible mistakes or deficiencies in it, neither for direct or indirect damage caused by using the information. Past performance or return targets are no
guarantee of future results. The value of fund units may increase or decrease and investors may lose all or some of the funds invested. The value of investment objects fluctuate with market movements.