So what is Focus 15?

This is an investment Fund unlike any other. How the equities are selected is different; how the Fund is managed is different and the information you receive about the Fund is different.

The Fund is completely focussed on opportunity and will seek the stocks with the greatest growth potential from around the world.

Because of the information provided, investing in Focus 15 will be like having your own Personal Portfolio.

These aspects combine to make Focus 15 absolutely unique in Ireland. It is aimed at experienced investors who want to maximise the growth potential of their investment.

How does the fund Focus on opportunity ?

With Focus 15 the pursuit of opportunity is paramount. There are no predetermined sectoral or geographic parameters. The fund is not broadly diversified but is balanced appropriately across a number of sectors. With around 15 holdings each stock can make a real difference to performance.

Other funds, by diversifying away from sectors such as Technology and Healthcare, which have grown very strongly in recent years, have provided investors with protection, which in many cases they would have been happy to do without. While diversification into sectors like Utilities and Basic Materials has lowered risk it has also lowered return.

A sense of the missed opportunity can be gauged from the chart above (US data).
Focus 15 will invest in those companies and sectors where the Fund Managers see the best opportunities for growth without reference to index weightings or geographic spread.

How is it like a Personal Portfolio ?

Focus 15 is the hassle free Personal Portfolio. Investing in the Fund is like owning a Personal Portfolio without the necessity of researching the shares, difficulty in monitoring their progress and all of the associated paperwork. Focus 15 avails of much lower transaction costs than would a personal investor due to economies of scale.

Like a Personal Portfolio we will supply regular updates so that you can monitor the progress of your investment. The following information will be available any time day or night on the World Wide Web at  www.focusl5fund.com:-

• Details of purchases & sales within the overall fund
• News affecting the holdings (takeovers, products, management etc.)
• Financial results
• Individual performances of the stocks held
• The performance achieved by the Fund

This information will also be forwarded to you either via your own e-mail address or by post, normally each month.

What will I access through the fund ?

Through the Fund, you will benefit from a portfolio of around 15 international equities chosen with a number of key characteristics:-

• Strong capacity for earnings growth
• Management commitment to shareholder value
• Preference for companies with a sustainable competitive advantage
• Positioned to benefit from industry consolidation
• Quoted on national exchanges and recognised markets such as Nasdaq and Neuer Market
• Minimum market capitalisation $500m

Who manages the fund ?

Canada Life's Investment subsidiary, Setanta Asset Management, is the Manager of this Fund.

Setanta's investment approach for Focus 15 can be encapsulated as follows:

• Emphasis on earnings growth - we aim to buy companies which can deliver above average growth at reasonable valuations
• Team based - all portfolio additions/deletions are decided on by the asset management team
• Disciplined - a rigorous analysis precedes acquisitions and disposals

What is the intended strategy of the fund manager for focus 15 ?

As well as selecting from stocks already quoted on recognised stock exchanges, the Fund may participate in Initial Public Offerings and Privatisations and may underwrite new issues on occasion. While the pursuit of opportunity is paramount, it does not extend to investing in stocks where the determination of value defies fundamental analysis.

It is intended that the Fund will not allempt to anticipate market corrections by raising cash and it will be at, or close to, fully invested. In extreme market circumstances, the Fund Managers will have the right not to invest new monies and to raise cash.

Has this style of investing been successful ?

One of the most successful US mutual funds has pursued a strategy broadly similar to that of Focus 15 i.e. not diversified and with a relatively small number of holdings. Set up in April 1985, the Janus Twenty Fund has grown to over $30 billion and is now closed to new investment. Managed with a non-diversified portfolio of 20-30 stocks, the Fund has performed exceptionally well (total return to 30/06/00):-

While it is only one Fund and its success is clearly related to its performance, its record over an extended period is indicative of what can be achieved when an approach focussed on opportunity is pursued successfully.

Do I have any guarantees with this fund ?

There is no capital guarantee with this product. Because of the lack of extensive diversification and small number of holdings, returns are likely to be more volatile than more broadly-based funds or those invested on a more diversified basis.

Taken to extremes, a fund holding one share has no diversification whatsoever. The more holdings in a portfolio, the more winners will be offset by losers and the greater the likelihood of an index or average return.

With around fifteen holdings and only limited diversification, Focus 15 is suitable for experiencec investors who are willing to accept the possibility of significant ups and downs on their investment.

How do I apply ?

To find out the current portfolio of companies which Focus 15 contains, please contact us or Canada Life Financial Adviser.

Then simply complete the application form and enclose your cheque payable to Canada Life.

What happens next ?

You will receive:-

• A letter giving you information about your investment
• A booklet of conditions which apply to your investment
• Your website password

Then you will be able to access the monthly updates on www.focusl5fund.com. If you do not wish to receive this by e-mail, we will post your monthly update to the address on your application form.

Who can Invest ?

Focus 15 is available to anyone aged between 13 and 85 years. It can be written on a single or joint life basis. If it is a joint life policy you can choose either a joint life first death or joint life second death policy.

How much can I Invest ?

The minimum investment is €10,000 and the maximum is €2,000,000. Higher amounts maybe accepted on request.

How long can I Invest ?

This is a medium to long term investment with no maximum term.

How much of my money is actually Invested ?

Full investment from day one. Your money is invested at the unit price on the business day following receipt of application. Focus 15 does not have a bidloffer spread so this means all of your money is used to buy units. The following table shows you the current allocation rates:-

Managing you Investment ?

Our charge for investment management is currently 1.75% p.a. of the value of the unit linked funds. This management charge is taken into account in the calculation of the unit price.

Can I add more money to my Investment ?

Yes. You can top-up your investment at any time. The top-up must be €5,000 or more. The rate of allocation on this top-up investment will be based on the allocation rate that would apply to the total sum invested.

Access to your Investment

We recommend that prior to encashing any part of your investment you seek advice from your broker or financial adviser. You should be aware that this is a medium to long term investment and you should be prepared to leave your investment intact for a minimum of five years in order to produce the best possible returns. The surrender value at any stage will be determined by the unit price on the day after we have received your instruction to surrender. You may encash the policy at any time though the following exit charges apply during the first five years:-

These encashment charges will also apply within 5 years of any additional investment. To minimise the penalty, units are sold on a first bought - first sold basis. The surrender value will depend on the performance of the Focus 15 Fund and any exit charges or tax which may apply. This means that the value of your fund could be less than the amount you invested. The current minimum amount you can withdraw is €5,000. Currently, a minimum balance of €10,000 must remain in your policy.

Loyalty Bonus

On the tenth anniversary of payment of the initial premium Focus 15 will pay a loyalty bonus of 1% of the unit value held at that time in respect of the initial premium. On the tenth anniversary of payment of a top-up premium Focus 15 will pay a loyalty bonus of 1% of the unit value held at that time in respect of that top-up premium. Loyalty bon uses will be paid by an allocation of an additional number of units to your policy.

Is there a death benefit ?

The death benefit is 101% of the fund value on your policy. In the case of a joint life policy, the death benefit is payable on the first death of the two lives if it is a joint life first death policy or payable on the death of the last survivor of the two lives if it is a joint life second death policy.

Will I have to pay tax on this investment ?

Current legislation allows your investment fund to grow gross of tax until you withdraw money from the policy. At that point the tax payable is currently at the standard rate plus 3%. This tax only applies to the excess of the surrender value before tax over total premiums paid. It is not applied to the whole policy value. This tax is waived in the event of a death.

Am I liable to any further taxation ?

Under current legislation, the proceeds from your investment are not liable to personal taxation. In the event of a death claim payment the proceeds may be liable to Inheritance Tax. The tax position can change at any time so you may wish to seek professional advice.

Nature of Unit-Linked Investments

The returns from investment-linked funds are linked to the performance of the assets in which the funds are invested. The value of units in these funds can fall as well as rise. Past performance is not necessarily a guide to future performance.

Further Information

This article tells you about Focus 15 and aims to answer the questions you might have. However if you require any further information, please contact us.