Friends Provident International has added three new funds to its mirror fund range that offer clients the choice of three different risk strategies.
The FPIL Schroder Asian Bond Fund, the FPIL Franklin US Government Fund and the FPIL Merrill Lynch World Gold Fund have been added to its mirror range. The new additions takes FPI"s mirror fund range up to 92 funds.
The FPIL Schroder Asian Bond Fund is categorised as a risk grade three and takes a balanced approach to investment by holding a diverse portfolio of assets. It reduces risk by investing in an asset class displaying greater predictability and security than direct equity investment. Country asset allocation includes Korea, Thailand, Philippines, Malaysia, Indonesia, China and India. The fund is denominated in dollars and deals daily. The addition also notably increases Friends Provident Far East and Pacific offerings.
FPIL Franklin US Government Fund has a lower risk profile of grade two. It invests in Ginnie Mae Securities, which carry a guarantee backed by the full faith and credit of the US government for the timely payment of interest and principal. This guarantee lowers both risk and volatility.
The fund is aimed at investors seeking security and preservation of capital, and is currently yielding around 4.5%. This compares favourably with current US deposit rates. Jack Lemein and Roger Bayston both manage the portfolio. The investment strategy is based on four principles: detailed analysis; long-term outlook; fundamental strategy; and teamwork. Securities are found where the potential return exceeds the risks involved and a benchmark is established for the portfolio. All securities are purchased with a view to long holding periods and low portfolio turnover.
The FPIL Merrill Lynch World Gold Fund specialises in investing in gold shares. The fund is categorised as risk grade four providing a more focused equity investment with good growth prospects but with the risk of short-term volatility.
Dr Graham Birch manages the fund and the investment strategy uses a bottom-up stock picking process. This strategy uses extensive research based on detailed models such as local discounted cash flows. Company visits are also undertaken. The portfolio is benchmarked to the FTSE Gold Mines and has around 30 to 40 positions in it. It is rated as a high volatility fund. The fund is denominated in dollars and deals daily.
Chris Holland, marketing manager at FPI, said: "The launch was in response to intermediary demand. The new fund additions make the mirror range well spread in terms of risk reward profiles."
According to Paul Quirk, managing director of FPI, the new fund links will provide access to additional asset classes and investment styles, which will help fulfil the varied investment needs of clients.
All the funds can be accessed at the bid price through FPI"s Reserve, Premier, Elite Investment Account and the International Investment Accounts. All funds are Isle of Man domiciled.
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