Investment Journal - Cantor Fitzgerald · the equity and oil markets. Despite corporate earnings...

Cantor Fitzgerald Ireland Ltd (Cantor) is regulated by the Central Bank of Ireland. Cantor FitzgeraldIreland Ltd is a member firm of the Irish Stock Exchange and the London Stock Exchange.

Investment Journal May 2016

R

Featured this Month:

Stock Watch: Lloyds, GlaxoSmithKline

Green Effects Fund: Socially Responsible Investing

Investment Fund Focus: Absolute Return Funds

Bond of the Month: BKIR 7.375% AT1 Perpetual Bond

Investment trust: The City of London Investment Trust Plc

Cantor

Dealing Desk

Call: 01 6333 633

April was marked by the resilience of boththe equity and oil markets. Despitecorporate earnings only modestlyexceeding exceptionally low growthexpectations, at the time of writing, the S&Pcontinues to trade close to all time highs.

Similarly, OPEC’s failure to reach an agreement in Dohawould usually have seen oil prices decline aggressively.Instead investors pinned their hopes for higher oil on astrike in Kuwait, and the next meeting of OPEC in June,where it is hoped Iran could be convinced to come to thenegotiating table.

For the month ahead, focus should remain on what is leftof the quarter’s earnings. We continue to be of the view thatthe anaemic level of earnings growth in the US does notsupport the elevated valuations on which they trade, andthat European equities offer a far superior investment case.Brexit concerns will likely continue to add a higher riskpremium to both UK equities and Sterling, though thereare early signs of an easing in this regard, as the market re-prices in line with our belief that voters will ultimatelychoose to remain in the EU.

David DonnellySenior Investment AnalystMay 2016

Welcome...

Cantor Fitzgerald Ireland was formed through the acquisition of Dolmen Stockbrokers in2012, by leading global financial services firm Cantor Fitzgerald. With a proud history ofstockbroking and servicing our private clients in Ireland since 1995, Cantor Fitzgerald Irelandprovides a full suite of investment services, primarily in personalised Share Dealing, Pensionsand Investment Management, Debt Capital Markets, Corporate Finance and Research. Weare recognised as a primary dealer in government bonds. Our clients include privateindividuals and corporate entities, financial institutions, investment funds, Credit Unionsand charities.

Cantor Fitzgerald, a leading global financial services group at the forefront of financial and technological innovation has beena proven and resilient leader for over 65 years. Cantor is a preeminent investment bank serving more than 7,000 institutionalclients around the world, recognised for its strengths in fixed income and equity capital markets.

At Cantor Fitzgerald Ireland we pull together the expertise and experience of Analysts and Investment Professionals from acrossthree continents. An office network that spans from New York to Hong Kong provides us with a uniquely global perspective onthe investment goals of our clients, which we service through our local offices in Dublin, Cork and Limerick.

ContentsPoints of Interest in april 3Stock Watch 5

Lloyds 5

GlaxoSmithKline 6

Green Effects Fund 7Chart of the Month 8EtF & rEIt Portfolio 9EtF of the Month 11Fixed Income Funds & EtFs 13Bond of the Month 14Investment Fund Focus 15Investment trust 16Performance Data 17

Investment Returns 18

Long Term Investment Returns 19

Cantor Fitzgerald Ireland Bond Returns 20

Core Portfolio 2016 Performance Update 22

INVESTMENT JOURNAL MAY 2016

2 C A N T O R F I T Z G E R A L D I R E L A N D L T D

A few points of interest in...

april

Ireland sold €750m of 10 year debt at arecord-low yield of 0.817%, despite risksfrom the upcoming Brexit vote and thefact that there still wasn’t a governmentin place. With demand for over €1.7bn,the bond market doesn’t appear to care.The NTMA has already raised €4.75bn ofits 2016 target of between €6bn and€10bn.

The German 10-year bund hit a closinglow of 0.089% on April 7, not muchabove the all-time low hit twelvemonths ago, but has since risen backtowards 0.25%. The average yield acrossall German bonds also fell to zero for thefirst time in history.

Belgium issued a 100-year bond at ayield of 2.3% that resembled Ireland’s100-year issue last month at a yield of2.35%. Both were private placementsarranged by Goldman Sachs andNomura.

Bonds

Recent results from the sector show that the investment bankscontinue to see declines in their returns on equity and there is aview that is is not just a cyclical trend but a more worrying structuralproblem. The highly influential Goldman Sachs is taking action andbucking the trend of many of its peers by moving further towardsa universal banking model with the launch of an online bank –www.gsbank.com – offering US savers some of the most attractivedeposit rates available. Having been forced to become a bankholding company during the financial crisis and rather than revertback to a purely investment banking model, it bought a $16bndeposit book from GE Capital and has decided to further embracethe retail banking business. Two reasons stand out: firstly, it is acheaper source of funding than the wholesale market and secondly,the returns on the investment bank have been in decline for sometime. Regulators may not be happy as they have been more inclinedto favour splitting investment banks from retail banks.

Investment Banks


C A N T O R F I T Z G E R A L D I R E L A N D L T D 3

David Coffey, Senior Portfolio Manager

In its latest World Economic Outlook, the IMF cut its forecast forglobal growth in 2016 from 3.4% to 3.2%, with all advancedeconomies revised downwards. The estimate for US growth wasreduced to 2.4% versus 2.6% at the start of the year.

It expects the Irish economy to grow by 5 per cent this year, morethan three times the euro zone average (we are forecasting 4.4%).The Fund warned of the risk of political isolationism, notably Britain’spossible exit from the European Union.

The Economy



WtI Crude oil (the US benchmark) traded above$45 for first time since November last year. Ameeting in Doha between some of the world’sleading oil producing nations failed to result in aproduction freeze as Iran failed to show up andSaudi Arabia appear to have scuppered a possibledeal. Oil prices reacted negatively but quicklyrecovered and are now some 70% up from thelow point in January.

***

Exxon Mobil lost its much coveted AAA creditrating when S&P downgraded the oil giant toAA+. The company was put on notice of apossible downgrade in February but, despite ameaningful rally in the oil price, the world’s largestpublicly-listed energy company lost the top ratingfor the first time since the great depression (1930).Microsoft and Johnson & Johnson are now theonly US companies with AAA ratings.

***

apple’s shares fell 8% in after-hours trading assales fell by 13% on a year-on-year basis and thecompany recorded its first ever year-on-yeardecline in iPhone sales. It was the first quarter in13 years to see a decline in group sales.

***

After paying Nokia €2.5bn for HERE, the Germancarmakers (Daimler, BMW and VW) that boughtit last year are now in talks with Amazon andMicrosoft about the possibility of one of themtaking a stake in the digital mapping business. TheGerman carmakers have identified the threat fromthe tech companies and have wisely chosen towork with them.

***

argentina returned to international capitalmarkets with an issue of $16.5bn on the back ofdemand that neared $70bn. It is fifteen years sincethey defaulted on their loans and some of thefunds raised will go towards repaying the“holdouts” that pursued them in US courts forrepayment on those loans.

***

According to estimates compiled by Bloomberg,the Bank of Japan is now a top 10 shareholder inc. 90% of the Nikkei 225 as a result of its purchasesof Exchange Traded Funds.

In Brief....

BP suffered an embarrassing defeat at its AGM as shareholdersrejected the CEO’s 20% pay increase with some 59% of votes castagainst. The CEO at Smith & Nephew, also suffered a defeat over paywith 53% voting against and Anglo American had a close call withalmost 42% voting down the CEO’s pay package. Other companiesthat face challenging votes in the weeks ahead include Shire, ReckittBenckiser, Aviva and WPP. The 27% increase awarded to Citigroup’sCEO also caused a rebellion with 36% of votes against.

The average CEO’s pay, as a multiple of the average worker, has soaredin recent decades to a point where it is now anywhere from 150 to250 times the average employee’s salary (WPP’s boss made more than800 times the average in his company). It is good to see shareholderstaking a stand against the rapidly expanding pay packages.

Executive Pay andshareholder revolts

European banks suffered a terrible start to 2016 and at one pointwere down 30%. Recent weeks have seen an improvement as theECB unveiled additional measures and Q1 results eased some fears,but the sector is still some 14% lower for the year-to-date.

European banks

The end of April will see the S&P 500 enter its second longest bullrun on record. Since bottoming out in March 2009, the index hasnot entered bear market territory (a drop of 20%) and is set toovertake the 1949-1956 rally. This doesn’t necessarily mean therally has to come to an end and proof of that is in the length ofthe 1987-2000 rally.

S&P Bull Run



StockWatch

Stephen Hall, CFA, Investment Analyst

Lloyds Banking Group (LLOY LN) Current Price: GBp67.07*

Lloyds recently reported a positive start to 2016’s trading in its Q1/16 Interim Management Statement on the 28th April.The bank showed strong progress on its Net Interest Margin (NIM) which improved to 2.74% on the quarter compared to2.60% in Q1/15 and 2.64% in Q4/15. This NIM improvement was driven by an improved product mix, lower wholesale fundingcosts and the benefit from the Enhanced Capital Notes (ECN) redemptions. It also saw a 5bps one-off credit uplift relatingto its credit card portfolio. Management reiterated its full year 2016 NIM guidance of 2.70%.

It maintained its strong balance sheet with a Common Equity Tier (CET1) ratio of 13.0% (12.8% after dividend payments). Thebank remains profitable and organically generated 60bps of capital during the quarter and management reiterated its 200bpsorganic capital generation target for 2016. It reported a £790m loss relating to its ECNs in Q1/16, which represented the write-off of the embedded derivative and the premium paid on the redemption of the remaining notes. The bank remains focused ontight cost controls and saw a further improvement in its cost/ income ratio from 53% at 2015 year end to 47.4% at end of Q1/16.Management maintains its 45% target by 2019.

Crucially, there was no increase in its Payment Protection Insurance (PPI) provisions which has been an ongoing negative overhangto the stock in recent quarters. Other income fell 7% to £1.48bn on the quarter reflecting lower insurance income and continuedpressure on fees and commissions.

The credit quality of its loan book continues to improve helped by a resilient UK economy and it saw £83m reduction in itsquarterly impairment charge YoY to £149m, which translates into a 0.14% asset quality ratio, with management forecasting a0.22% asset quality ratio for the full year. Impaired loans as a percentage of total loans fell from 2.8% to 2.0% at quarter end.

Lloyds ran into key resistance at 73.6p at the beginning of March 2016, which is the proposed sale price of the UK Government’sremaining 9.1% stake in the Bank. We see near term support at 64.6p. We continue to like Lloyds’ simplistic low-risk businessmodel which should continue to deliver sustainable profitability growth driven by tight cost controls and NIM expansion. Lloyds’6.4% dividend yield is very attractive within the prevailing low interest rate environment is also attractively valued at 1.07x FY16ePrice/ Book and 8.8x FY16e Price/ Earnings.

Lloyds Share Price

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Source: Bloomberg

*Prices as of 29/4/16



David Donnelly,Senior Investment Analyst

GlaxoSmithKline (GSK LN) Current Price: GBp1,459.0*

Having reported first quarter earnings which surpassed expectations, we reiterate our Outperform rating onGlaxoSmithKline, given its strong growth in HIV treatments, gathering momentum in its respiratory portfolio, andexceptionally attractive dividend yield of 5.43%.

Following its deal with Novartis last year, Glaxo is a more streamlined and superior company in our view, evidenced by the10.6% beat in earnings in the first quarter of 2016. Having disposed of its investment-intensive Oncology business, Glaxo isfree to concentrate on high growth areas like its HIV treatment unit, ViiV, and its vaccines business. Sales growth within this“new-product” segment rose 205% year-over-year to £821 million, a 20.4% increase since last quarter. Also worthy of notewas the uptick in sales within the company’s respiratory portfolio. The trajectory of take-up of Glaxo’s drugs Breo and Anorohad been slower than anticipated in the early stages last year, but has improved steadily over the course of the year.

A 19p dividend was declared for the quarter, and the stock is to go ex-div on 12th of May. Overall, the full year dividend of80p was reiterated with these results, implying a yield of 5.43% at current levels. We continue to like Glaxo for its high growthareas in HIV and vaccines, its overall defensive qualities as a leading Pharmaceutical name and the hugely attractive dividendyield. The stock trades at 16.7x FY16e earnings.

GlaxoSmithKline Share Price

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1250

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Source: Bloomberg

*Prices as of 29/4/16



Green Effects FundSocially Responsible Investing

Richard Power, Director of Stockbroking

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Source: Cantor Fitzgerald Ireland Ltd Research

Objectives

The objective of the Fund is to achieve long term capital growth and income.The fund will provide investors with a product through which they can investin companies with a commitment to supporting the environment andsocially just production and work methods. For this purpose the fund onlyinvests in stocks which are included in the Natural Stock Index (NAI).

PerformanceApr-16 YTD 2015 Since Inception

Green Effects -0.07% 0.56% 15.72% 82.21%

S&P 500 (€) -0.25% -4.02% 10.50% 9.93%

MSCI World (€) 0.85% -4.56% 8.30% -2.19%

Source: Cantor Fitzgerald Ireland Ltd Research and Bloomberg.

Manager CommentThe Green Effects Fund NAV price ended April at €182.21 which was amarginal decline of -0.07% for the month. Equity markets were somewhatmuted during April despite the commencement of Q1 reporting season inthe US and Europe and ongoing currency and commodity market volatility.In (€) Euro terms during April, the S&P500 (US) was -0.35%, while theEurostoxx50 index was +0.77%. A number of stocks within the fund releasedquarterly earnings. Potlatch Corp reported Q1 revenues and earnings in linewith expectations. In euro terms the shares were +11% during April. PotlachCorp operates as a real estate investment trust, which focuses oninvestments in real estate, including the sale of standing timber. It engagesin real estate sales and development business and wood productsmanufacturing facilities that produce lumber and plywood. The companyoperates its business through three segments: Resource, Real Estate andWood Products. The Resource segment engages in managing thetimberlands. The company pays an indicative dividend yield of 4.40% Intrading activity during the month the Fund marginally reduced exposure toUS company Tesla Motors following the sharp move higher in the share priceduring the February and March.


Key InformationMorningstar Rating � � � � �

NAV €182.21*

Minimum Investment €5,000

Dealing Frequency Weekly

Sales Agent Cantor Fitzgerald Ireland Ltd

Custodian Northern Trust

Administrator Northern Trust

Investment Manager Cantor Fitzgerald Ireland Ltd

Sales Commission 3%

Total Expense 1.24%

Investment Mgt Fee 0.75%

Website www.greeneffects.ie

*Prices as of 29/04/2016Source: Bloomberg & Cantor Fitzgerald Ireland Ltd Research

top ten Holdings

SVENSKA CELLULOSA 8.09%

KINGFISHER 7.65%

SHIMANO 7.36%

VESTAS 7.31%

TOMRA SYSTEMS 4.44%

SMITH & NEPHEW 4.21%

ACCIONA 4.05%

EAST JAPAN RAILWAY CO. 3.92%

AEGION 3.87%

RICOH 3.71%


Green Effects Fund naV Since Inception



Chart of the Month

oil - ETFS Brent 1mth OILBOil prices continued their recent recovery throughout April, rallying a further 23% on the month with Brent oil reaching a high of$48.50 a barrel. This rally was helped by a weakening US Dollar with the DXY Index falling 1.6%. The global demand/ supply oilmismatch continued to rebalance further as we saw the number of idled US oil rigs continuing to rise. Currently, there are only 332US oil rigs in production which is significantly below the peak rig count of 1,609 seen in 2014. This sharp decline in producing rigshas seen daily levels of oil production in the US fall to 8.83 million barrel a day, which is 8.2% below max daily production of 9.61million barrels seen in June 2015 and looks set to trend lower as Capex levels decline. The short covering trades seen in mid Februaryand March have now transformed into new “long” speculative bets by the Hedge Fund community who are now net long 334k oilcontracts, its biggest reading since August 2015. Global commodity ETFs have seen $18.3bn of inflows to date in 2016.

Consensus range of estimates for global demand for oil in 2016 is set to increase by 1 – 1.5 million barrels a day, and by 6 millionbarrels a day over the next 5 years as risks of an economic slowdown in China has diminished, and demand remains strong inthe US and India which has also supported the recent oil price recovery. Despite declining levels of daily US production and astronger demand outlook, oil US inventories stand at 543 million barrels, an 11.5% increase in 2016 which will remain a negativeheadwind to oil prices rebounding further.

The market quickly shrugged off news that OPEC and Non-OPEC members failed to reach a production freeze on the 17th Aprilwhich would have brought oil supply and demand dynamics even better into balance and in turn would have supported oilprices. However Iran, who has only recently had its oil embargo restrictions lifted in January 2016, did not agree to the proposedoil production freeze as it looks to recapture lost market share. This led to increased short term volatility, but markets quicklyrecovered the oil price weakness. The next OPEC meeting is on the 2nd June, where it will once again attempt to convince Iranto a production freeze. If successful, it should support oil prices further.

Many of the key oil majors have significantly rolled back on their levels of Capex this year. Royal Dutch Shell’s capex for 2016 isforecast to be 36% below 2014 levels in an attempt to maintain its dividend. This reduction should eventually lead to lower levelsof global oil production and support oil prices.

We may see short term consolidation in oil prices in the near term given the sharp 67% recovery in oil prices off the February2016 lows. We see oil prices recovering towards $50-$55 a barrel by the end of 2016, averaging $45 for the full year. The DXYIndex may find short term support at 92.5 which may limit further gains in oil in the short term.

Stephen Hall, CFA, Investment Analyst

EtFS Brent 1mth oILB Chart

The ETF is provided by ETFSecurities. Trades in USD on theLondon Stock Exchange with theticker (OILB_LN)



ETFs & REIT Portfolio

Monthly performance update of our CGt eligible ETF & REIT investment portfolio.

Mark McPaul, Portfolio Construction Analyst

top PerformersiShares MSCI United Kingdom EtFThe UK market has recovered some lost ground as the oil price and commodities have continued to rebound off recent lows.Added to this is the stabilisation in the pound after a recent bout of weakness induced by the perceived risk of a Brexit. Brexitrisks appear to be being discounted by the markets for now and this coupled with the resource focused nature of a number ofthe largest UK companies, have lead to a strong month for UK assets.

Green rEIt PLCThe Irish commercial property market has remained robust in recent months and prime rents have continued to increase in allsectors, most notably in Dublin, with Jones Lang LeSalle recently providing a very positive update on rental demand. Green REIThas benefited from this as it was trading at a discount to its Net Asset Value (it’s Assets minus its Liabilities). The renewed confidencein markets generally has helped Green REIT to claw back some of its discount.

iShares MSCI Eurozone EtFEurope has begun to show signs of outperforming the US since the market bottomed in mid February. Value has finally made acomback versus growth in this period and with European names trading at lower multiples, the effect has been clear to see ona relative basis. Fears of a Chinese slow down have abated somewhat which given the export focused nature of the Europeanindices is a stong positive. The oil price has also rebounded strongly, the weakness in the commodity had hurt markets in theinitial part of the quarter.Name Return %

iShares MSCI United Kingdom ETF 3.75

Green REIT PLC 2.20

iShares MSCI Eurozone ETF 1.87

top DetractorsHibernia rEIt PLCHibernia - while similarly geared to the Irish commercial property market – has not performed as well as its peer Green REIT, as itwas trading closer to its Net Asset Value at the start of April and therefore had less upside potential from the rebound in sentiment.These distortions are more of a short term trend and we continue to like the commercial property market in general.

SPDr S&P 500 EtFThe return on the month was flat to slightly negative when the effect of the stronger Euro is factored in. Over the month we sawthe S&P 500 rebounding strongly off recent lows and getting within touching distance of all time highs. The Federal Reservehowever have proven to be more cautious than many expected which has lead to a strong sell off in the US Dollar vs. the Euroover the course of the month. This currency adjustment detracted from underlying returns.

iShares Core MSCI Emerging Markets EtFEmerging markets were generally flat on the month as investors remain nervous regarding the outlook for these higher riskmarkets. The weakening dollar and corresponding higher commodity prices should support these markets going forward.Investors should be prepared for volatility however as asset flows can turn very quickly due to changes in sentiment.Name Return %

Hibernia REIT PLC -1.00

SPDR S&P 500 ETF -0.46

iShares Core MSCI Emerging Markets ETF -0.27



PortFoLIo SUMMary# of Holdings 12

Gross yield % 2.75%

type Multi-Asset

Name Currency Price Weight1 Month% (Base)

1 Month% (EUR)

YTD %(EUR)

12 MonthYield %

Alternatives

Property

Irish Residential Properties REIT PLC EUR 1.12 5.0% 1.36 1.36 -4.27 2.99

Green REIT PLC EUR 1.44 5.0% 2.20 2.20 -9.48 1.11

Hibernia REIT PLC EUR 1.29 5.0% -1.00 -1.00 -8.45 1.09

Equity

United Kingdom

iShares MSCI United Kingdom ETF USD 16.37 10.0% 4.40 3.75 -3.90 4.05

Europe

WisdomTree Europe Hedged SmallCap Equity ETF USD 24.25 12.5% 1.42 0.79 -6.34 4.45

iShares MSCI Eurozone ETF USD 35.25 17.5% 2.50 1.87 -4.59 2.17

North America

SPDR S&P 500 ETF USD 205.85 15.0% 0.16 -0.46 -4.25 2.10

Emerging Markets

iShares Core MSCI Emerging Markets ETF USD 34.37 5.0% 0.35 -0.27 1.25 2.33

Fixed Income

Global Diversified

PIMCO Low Duration Active ETF USD 99.96 5.5% 0.13 0.52 -3.87 3.17

High Yield

PowerShares Global ShortTerm High Yield ETF USD 23.53 5.0% 1.51 0.88 -2.61 4.57

Global Corporate

WisdomTree Strategic Corporate Bond ETF USD 73.44 8.5% 1.23 0.96 -1.24 3.73

Global Government

SPDR Barclays Intl Treasury ETF USD 56.45 6.0% 1.27 0.65 3.69 0.00

Total Return 1 Month € 1.04%

Total Portfolio YTD € -3.90%

WARNING: Cantor Fitzgerald Ireland Ltd (Cantor) is regulated by the Central Bank of Ireland. Cantor is a member firm of the Irish Stock Exchange and theLondon Stock Exchange. Cantor Fitzgerald Ireland Ltd does not provide tax advice to clients. Although the information in this report has been obtained

from Revenue Commissioners website, Cantor gives no warranty of guarantee as to correctness, completeness, timeliness or accuracy of the informationprovided or its transmission. Nor shall Cantor, or any of its employees, directors or agents, be liable to or for any losses, damages, costs, claims, demandsor expenses of any kind whatsoever, whether direct or indirect, suffered or incurred in consequence of any use of, or reliance upon, the information. Any

person acting on the information contained in this report does so entirely at his or own risk.



ETF of the Month

EtFS Physical Gold EtF (PHAU LN)Gold predominately remains a “Safe Haven” investment which should provide downside protection to a portfolio during periodsof increased market volatility or risk aversion, and we think 2016 has numerous unknown risk events on the horizon such as theoutcome of the BREXIT referendum, US general elections and potential economic slowdown in China. Investors do not receive acoupon or dividend from holding this precious metal, which is one of the key deterrents for investors who require an incomefrom their portfolio. However, we continue to operate in “lower for longer” yield environment and real interest rates (nominalinterest rates – inflation rates) in several major economies globally have turned negative recently, which reduces the opportunitycost of holding gold. We recommend investor’s gain exposure to gold through ETFS Physical Gold (PHAU LN), which is an ExchangeTrade Commodity on physical backed gold.


Current Price: $124.92*

Fund ObjectiveETFS Physical Gold (PHAU) is designed to offer security holders a simpleand cost-efficient way to access the gold market by providing a returnequivalent to the movements in the gold spot price less the applicablemanagement fee.

Performance Summary (%) YTD 1 Year 3 Years 4 Years 5 Years

Spot Gold LBMA specifications 18.8% 0.2% -12.5% -23.4% -16.3%

Source: www.etfsecurities.com

Index Performance


*Price as of 29/04/2016

Key FactsProduct Name ETFS Physical Gold

Issuer ETFS Metal Securities Limited

Legal Form Debt security

Domicile Jersey

Assets Physically backed with allocated metalsubject to LBMA rules for Good Delivery

Metals Lending No

Vault Location London, UK

Listing Date 24 April 2007

Base Currency USD

Currency Hedged No – this product is not protectedagainst adverse currency movements

Management Fee 0.39% p.a.

Product Manager ETFS Management Company (Jersey)Limited

Custodian HSBC Bank plc

Trustee The Law Debenture Trust Corporationp.l.c.

UCITS Eligible Yes


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First trust Morningstar Dividend Leaders EtFAn alternative way of gaining exposure to our preference for strong dividend paying companies is through the First TrustMorningstar Dividend Leaders Index ETF. This consists of stocks that trade on one of the three major US exchanges, the NYSE,AMEX or Nasdaq, that have shown dividend consistency and dividend sustainability. In order to qualify for inclusion in the indexa company must pass Morningstar’s proprietary multi-step screening process which includes factors such as positive dividendgrowth for each of the past 5 years and a dividend coverage ratio of greater than 1x.

This multi step process ensures that the company is committed to paying dividends and that the dividends are sustainable overtime. From this list the top 100 stocks based on dividend yield are selected. The weighting of each holding is also capped toenhance portfolio diversification.

The index is reconstituted once annually each June and rebalanced four times annually in March, June, September and December.This is a US domiciled ETF and therefore income payments (dividends) will be subject to income tax and gains on disposals willbe subject to capital gains tax.

Current Price: $25.70*

Fund ObjectiveThis exchange-traded fund seeks investment results that correspondgenerally to the price and yield (before the fund’s fees and expenses) ofan equity index called the Morningstar® Dividend Leaders IndexSM

Performance Summary (%) Quarter YTD 1 Year 3 Years 5 Years 10 Years Since Inception

Fund Performance

Market Price Return 8.98 8.98 14.21 11.23 12.92 6.47 6.55

Index Performance

Morningstar® Dividend Leaders IndexSM 9.09 9.09 14.78 11.77 13.52 7.00 7.08

S&P 500 Index 1.35 1.35 1.78 11.82 11.58 7.01 7.16

Source: www.ftportfolios.com

*Price as of 29/04/2016

Key FactsMorningstar Rating � � � � �

Fund Ticker FDL

Fund Inception Date 3/9/06

Expense Ratio 0.49%

30-Day SEC Yield 3.32%

Rebalance Frequency Quarterly

Primary Listing NYSE Arca


top ten Holdings % EXXON MOBIL CORPORATION 9.59

AT&T, INC. 9.50

VERIZON COMMUNICATIONS, INC. 7.45

GENERAL ELECTRIC COMPANY 7.12

PFIZER, INC. 5.70

THE PROCTER & GAMBLE COMPANY 5.50

PHILIP MORRIS INTERNATIONAL, INC. 4.90

THE COCA-COLA COMPANY 4.24

ALTRIA GROUP, INC. 3.54

MCDONALD’S CORPORATION 2.74







Fixed Income Funds & ETFsMark McPaul, Portfolio Construction Analyst

PIMCo GIS Global InvestmentGrade CreditThe Global Investment Grade Credit Fund is an actively managedportfolio that invests at least two-thirds of its assets primarily ininvestment grade global corporate and credit instruments. To providea yield uplift the fund may also invest up to 15% in sub investmentgrade bonds. A sound core holding for investment portfolios, thisfund offers the diversification benefits of corporate bonds versusequities as well as an attractive income stream for investors lookingto outperform deposits.

Performance 1 Month YTD 1 Year* 3 Year* 5 Year*

Fund 1.35% 3.77% 0.89% 2.53% 4.93%

*Annualised Returns

3 year Fund Price Performance

11.40

11.60

11.80

12.00

12.20

12.40

12.60

12.80

13.00

Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16

Fund InformationInvestment Manager PIMCO Asset Management

ISIN IE00B3D1YW09

Currency EUR

Ongoing Charge 0.49%

Distribution Yield 3.82%

Distribution Frequency Quarterly

Fund Size (Base Currency) 12,395,524,709

Net Flow (Month End) 1,096,484,790


iShares Euro Corporate Bond ExFinancials EtFGiven that the ECB has expanded the scope of its QE programme toinclude corporate bonds, we recommend the iShares EuroCorporate Bond ex-Financials UCITS ETF for clients looking to gainfixed income exposure. This ETF offers diversified exposure tononfinancial corporate bonds issued in Euro and of investmentgrade quality. This ETF also offers investors an attractive yield upliftrelative to both government and the broader European corporate

Performance 1 Month YTD 1 Year* 3 Year* 5 Year*

Fund 0.48% 3.57% 0.55% 3.57% 5.19%

*Annualised Returns

3 year Fund Price Performance

102.00

104.00

106.00

108.00

110.00

112.00

114.00

116.00

118.00

120.00

Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16

Fund InformationInvestment Manager iShares

Ticker IEXF LN

Currency EUR

Ongoing Charge 0.20%

Distribution Yield 2.01%

Distribution Frequency Semi - Annual

Fund Size (Base Currency) 2,075,687,174

Net Flow (Month End) 52,277,339




Bond of the Month

Net loans exceeded our forecast, ending the year at €84.7bn, up €2.6bn compared with the end of 2014, although this was almostentirely down to GBP strength (which has since reversed). There was a significant reduction in defaulted loans which fell by €3.8bnto €10.6bn, while the broader non-performing loan measure fell by €2.4bn to just under €12bn. In turn, the impairment chargewas a modest 32bps, down from 90bps in 2014. The bank added 200bps to fully-loaded CET1 capital over the course of the year,meaning it advanced to 11.3%, while transitional CET1 grew to 13.3% - c.300bps ahead of the newly disclosed SREP requirementof 10.55%.

European subordinated financial bonds have rebounded strongly this month. We had argued that the sell-off was massivelyoverdone and the market should eventually start to distinguish good credits from bad ones. This bond still offers a yield to nextcall of 8.56%.

The bond is a “temporary write-down” instrument, allowing the bank to convert the bonds into equity when the CET1 ratio fallsbelow 5.125%. After a temporary write-down, the bank would be able to write-back up portions of the bonds each year on aphased basis, subject to certain restrictions. The transitional CET1 ratio had a buffer of over 8% over this trigger at year-end, nordo we see question marks over the bank’s capacity to pay discretionary coupon – with asset quality moving in the right directionand no one-off litigation charges such as those faced by some other European banks.

Minimum investment size is nominal 200,000.

Disclaimer: This is a sub-investment grade and subordinated bond suitable only for investors with higher risk appetite.

Issuer Bank of Ireland Group

Rating B2/B+

Currency Euro

Maturity Perpetual

Callable 18th June 2020

Collateral NA

Coupon 7.375%

Coupon Type Fixed

Coupon dates Semi-annual

Issue size €750 million

Price €96.50

Yield 8.56

BKIr 7.375% at1 Perpetual Bond

Bank of Ireland released its Q1/2015 Interim Management Statement on Thursday, 28th April, which showed adecent performance in a challenging quarter for the bank with negative interest rates, GBP weakness, sluggishdomestic credit growth and rising regulatory costs among the key headwinds.

Fiona Hayes, Fixed Income Strategist



Alternatives

Absolute return funds aim to produce a positive return over time, regardless of prevailing market conditions. Some of the keydifferences of absolute return funds from traditional investments are as follows:

• Seek consistently positive returns of cash plus a percentage premium over 3 to 5 year rolling periods

• Utilises advanced derivative techniques to profit in both rising and falling markets

• Targets a level of volatility of around 50% of that of equities

• Lower correlation in returns relative to other asset classes

the Standard Life Global absolute return Strategies (“GARS”) is considered the pioneer of absolute return funds. The GARSfund aims to deliver a positive return (Cash +5% before fees) regardless of market conditions with lower level of risk to that ofequities. The fund uses advanced derivative techniques to target returns across broad asset classes from exploiting marketinefficiencies. A robust risk management system is at the foundation of this fund which it manages through diversification acrossmultiple investment strategies. The strategies consist of a combination of traditional equity and credit exposure to more advancedplays on interest rate curves, exchange rates and relative value trades across regions, sectors and company size.

The successful track record of GARS and impressive growth in assets under management has resulted in other investmentmanagement companies setting up their own absolute return funds, most notably, the aviva Investors Multi-Strategy targetreturn (“AIMS”) and the Invesco Global targeted returns (“GTR”). These two funds follow a similar investment philosophy toGARS with slight tweaks to their positioning across markets. The Invesco GTR has been the strongest performer of the three overrecent periods and the only one to achieve a positive return in a difficult first quarter to 2016.

Another popular fund which sits in the absolute return space is the Bny Mellon Global real return. This fund also aims toproduce a positive return above cash regardless of market conditions but follows a slightly more traditional investment approach.The strategy essentially consists of two components, going long a basket of risk assets such as equities, corporate bonds andconvertibles and then adding a protection/hedging layer via government bonds, gold and derivatives. This fund has performedvery well in quarter 1 (+2.71%), and we continue to like the positioning of this fund and its role in providing downside protectionto portfolios during adverse market conditions.

Absolute Return Funds PerformanceName ISIN Ongoing Charge Return 1 Month % Return 3 Month % Return YTD % Return 1 Year % Return 3 Year %

Standard Life GARS LU0548153799 0.90 0.44 -1.46 -2.89 -3.82 7.16

BNY Mellon Global Real Return IE00B52MKP33 1.09 0.29 2.73 3.01 -0.35 8.28

Invesco Global Targeted Returns LU1004133531 0.86 0.75 1.11 1.31 -0.02 -

Aviva Investors AIMS LU1253880865 0.85 0.49 -2.27 -1.51 -1.35 -

Source: Morningstar

Investment Fund Focus

Periods of volatility like those we have experienced at the start of the year are likely to remain a common themegiven the divergent path in global Central Bank policies. This environment coupled with yields at historically lowlevels makes positioning portfolios and achieving attractive returns increasingly difficult. As a result investors haveto look across different asset classes for returns while attempting to navigate through periods of significant volatility.

In this environment we would advocate that absolute return funds should form a core component of investment portfolios, anddiscuss some of the options available below.




Investment trust


the City of London Investment trust PlcThe fund looks to provide investors with long term growth in income and capital by mainly investing in UK listed equities. Themanager's cautious approach and focus on limiting downside risk make it suitable for those investors with a lower tolerance forrisk, although they should still expect equity volatility.

Manager Job Curtis has been at the helm for 24 years and employs a valuation driven stock selection process with dividend yieldthe primary driver. This proven process has resulted in a strong performance track record with the dividend being raised for 49consecutive years. The fund’s current positioning is overweight defensive names in the consumer staples and healthcare sectorswhile real estate and house builders also form a significant overweight.

The fund offers a dividend yield of 4.3%. The ongoing charge of 0.42% is also amongst the cheapest of all the UK listed investmenttrusts.

As this is a listed investment trust, income payments (dividends) will be subject to income tax and gains on disposals will besubject to capital gains tax.

Current Price: GBp377.00*

Fund ObjectiveThe Company's objective is to provide long term growth in income andcapital, principally by investment in UK equities. The Board continues torecognise the importance of dividen d income to shareholders. Thelatest Annual Report and Key Investor Information Document set outthe inves tment objective and policy in full and you should read thembefore investing.

City of London Performance Fund Standard Name 1 Month % YTD % 1 Year % 3 Year % 5 Year %

City of London Investment Trust PLC 0.01 -0.41 -3.18 6.77 9.16

Source: www.cityinvestmenttrust.com

*Price as of 29/04/2106

Company FactsTicker CTY

Company Type Conventional (Ords)

Launch Date 1891

Financial Year End 30Jun

Dividend Payment Nov, Feb, May, August

Management Fee 0.365% reducing to 0.35% onbalance of net assets above £1bn

Performance Fee No (See Annual Report & Key Investor

Information Document for moreinformation)

Regional Focus UK

Fund Manager Appointment 1991

Fund Performance

Source: www.cityinvestmenttrust.com




PerformanceDATAApril 2016

Investment Returns 18

Long Term Investment Returns 19

Cantor Fitzgerald Ireland Bond Returns 20

Core Portfolio 2016 Performance Update 22

R



Investment Returns



EquitiesIndex 31/03/16 29/04/16 % Change % ytd Change 52 Week High DateISEQ 6308.92 6161.41 -2.3% -9.3% 6,921 03/12/2015DAX 9965.51 10038.97 0.7% -6.6% 11,920 26/05/2015Eurostoxx50 3004.93 3028.21 0.8% -7.3% 3,714 20/07/2015Stoxx600 (Europe) 337.54 341.48 1.2% -6.7% 409 27/05/2015Nasdaq (100) 4483.655 4341.299 -3.2% -5.5% 4,740 02/12/2015Dow Jones 17685.09 17773.64 0.5% 2.0% 18,351 19/05/2015S&P500 2059.74 2065.3 0.3% 1.0% 2,135 20/05/2015Nikkei 16758.67 16666.05 -0.6% -12.4% 20,953 24/06/2015Hang Seng 20776.7 21067.05 1.4% -3.9% 28,525 26/05/2015China (Shaghai Composite) 3003.915 2938.323 -2.2% -17.0% 5,178 12/06/2015India 25341.86 25606.62 1.0% -2.0% 28,578 23/07/2015MSCI World Index 1648.12 1670.8 1.4% 0.5% 1,814 22/05/2015MSCI BRIC Index 223.46 228.49 2.3% 3.4% 306 05/05/2015

CurrenciesCurrency Pair 31/03/16 29/04/16 % Change % ytd Change 52 Week High DateEuroUSD 1.138 1.1451 0.6% 5.4% 1.1714 24/08/2015EuroGBP 0.79257 0.78365 -1.1% 6.3% 0.8117 07/04/2016GBP/USD 1.436 1.4612 1.8% -0.8% 1.5930 18/06/2015Euro/AUD 1.48624 1.50537 1.3% 0.9% 1.6590 24/08/2015Euro/CAD 1.47988 1.43782 -2.8% -4.4% 1.6106 20/01/2016Euro/JPY 128.11 121.94 -4.8% -6.7% 141.0600 04/06/2015Euro/CHF 1.09447 1.09812 0.3% 0.9% 1.1200 04/02/2016Euro/HKD 8.8282 8.8822 0.6% 5.5% 9.0780 24/08/2015Euro/CNY 7.3505 7.4182 0.9% -1.7% 7.5168 03/05/2016Euro/INR (India) 75.37 75.5905 0.3% 4.8% 77.4900 12/02/2016Euro/IDR (Indonesia) 15036.71 14995.86 -0.3% -0.4% 16,638.7000 29/09/2015AUD/USD 0.7657 0.7603 -0.7% 4.4% 0.8164 14/05/2015USD/JPY 112.57 106.5 -5.4% -11.4% 125.8600 05/06/2015US Dollar Index 94.586 93.082 -1.6% -5.6% 100.5100 02/12/2015

CommoditiesCommodity 31/03/16 29/04/16 % Change % ytd Change 52 Week High DateOil (Crude) 39.75 45.92 15.5% 12.8% 65.93 06/05/2015Oil (Brent) 39.6 48.13 21.5% 29.1% 69.63 06/05/2015Gold 1232.71 1292.99 4.9% 21.8% 1,303.82 02/05/2016Silver 15.4375 17.84 15.6% 28.7% 18.02 02/05/2016Copper 219.1 228.35 4.2% 6.4% 295.70 05/05/2015CRB Commodity Index 401.15 417.65 4.1% 11.5% 542.10 14/05/2015DJUBS Grains Index 39.6208 43.007 8.5% 8.6% 50.19 14/07/2015DJUBS Soft Commodity 107.5415 115.0983 7.0% 7.8% 125.31 14/07/2015Gas 1.959 2.178 11.2% -6.8% 3.11 19/05/2015Wheat 480.75 488.5 1.6% 1.1% 628.50 30/06/2015Corn 355.75 391.75 10.1% 5.7% 471.25 14/07/2015

BondsIssuer 31/03/16 29/04/16 Yield Change % ytd Change 52 Week High DateIrish 5yr 0.009 0.02 0.01 -0.19 0.79 16/06/2015Irish 10yr 0.656 0.866 0.21 -0.29 1.89 10/06/2015German 2yr -0.487 -0.484 0.00 -0.14 -0.14 10/06/2015German 5yr -0.328 -0.288 0.04 -0.24 0.27 13/07/2015German 10yr 0.153 0.271 0.12 -0.36 1.06 10/06/2015UK 2yr 0.441 0.528 0.09 -0.12 0.77 09/11/2015UK 5yr 0.838 0.976 0.14 -0.37 1.67 26/06/2015UK 10yr 1.415 1.596 0.18 -0.36 2.21 26/06/2015US 2yr 0.7211 0.7816 0.06 -0.27 1.10 29/12/2015US 5yr 1.2048 1.294 0.09 -0.47 1.83 30/12/2015US 10yr 1.7687 1.8333 0.06 -0.44 2.50 11/06/2015

Source: Bloomberg and Cantor Fitzgerald Ireland Ltd Research.

april 2016



Long Term Investment Returns

Asset Class Performances (returns in Local Currency)*Equities

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MSCI World Index 15.5% 10.2% 20.9% 9.8% -40.2% 30.9% 12.5% -4.9% 16.7% 27.5% 2.9% -1.9% 0.5%

MSCI Emerging Market Index 26.0% 34.4% 32.6% 39.7% -53.1% 78.7% 19.4% -18.2% 18.7% -2.3% -4.6% -17.2% 5.8%

China -14.1% -5.8% 135.1% 98.0% -64.9% 82.6% -12.8% -20.2% 5.8% -3.9% 52.9% 10.5% -17.0%

Japan 8.6% 41.8% 8.1% -10.0% -41.1% 21.1% -1.3% -15.6% 25.6% 59.4% 7.1% 9.1% -12.4%

India 14.1% 44.6% 48.8% 48.8% -51.8% 78.5% 19.1% -23.6% 28.0% 9.8% 30.1% -5.6% -2.1%

S&P500 10.9% 4.9% 15.8% 5.6% -37.0% 26.4% 15.1% 2.1% 16.0% 32.4% 11.4% 0.2% 1.0%

Eurostoxx50 10.3% 25.4% 19.2% 10.4% -41.8% 27.0% -1.8% -13.1% 19.6% 22.7% 1.2% 4.5% -7.3%

DAX 7.3% 27.1% 22.0% 22.3% -40.4% 23.8% 16.1% -14.7% 29.1% 25.5% 2.7% 9.6% -6.6%

ISEQ 29.0% 21.6% 30.6% -24.7% -65.1% 29.8% -0.1% 2.6% 20.4% 35.7% 15.1% 31.2% -9.3%

Source: Bloomberg.

Bonds 10yr

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Ireland 9.59% 5.42% -0.17% 1.23% 7.89% 3.89% -19.58% 12.02% 34.64% 12.45% 23.67% 2.53% 2.06%

UK 6.62% 7.66% -0.47% 6.69% 14.97% -0.65% 9.43% 15.90% 4.64% -4.99% 12.13% 0.48% 3.41%

Spain 9.30% 6.01% -1.08% 1.56% 9.82% 4.54% -5.67% 9.68% 4.69% 14.24% 22.77% 1.33% 2.31%

Portugal 10.06% 5.87% -1.18% 2.16% 9.71% 4.91% -10.25% -33.47% 75.51% 10.98% 31.85% 5.05% -2.65%

USA 4.25% 2.35% 2.73% 10.31% 19.74% -7.30% 9.39% 15.24% 4.01% -5.92% 8.45% 1.50% 4.33%

Germany 9.23% 5.88% -0.95% 1.88% 14.78% 1.76% 6.81% 12.79% 6.81% -1.72% 13.44% 0.74% 3.11%

Source: Bloomberg EFFAS Government Bond Indices & FINRA Corporate Indices

Commodities

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gold 5.4% 18.4% 23.0% 31.3% 5.5% 24.0% 29.7% 10.2% 7.0% -28.3% -1.5% -10.5% 21.7%

Brent Oil 34.1% 45.8% 3.2% 54.2% -51.4% 70.9% 21.6% 13.3% 3.5% -0.3% -48.3% -36.4% 29.1%

Crude Oil 33.6% 40.5% 0.0% 57.2% -53.5% 77.9% 15.1% 8.2% -7.1% 7.2% -45.9% -31.3% 24.0%

Copper 38.9% 40.6% 40.6% 5.9% -53.6% 137.3% 32.9% -22.7% 6.3% -7.0% -16.8% -24.0% 6.7%

Silver 14.3% 29.6% 45.3% 15.4% -23.8% 49.3% 83.7% -9.8% 8.2% -35.9% -19.5% -11.3% 28.9%

CRB Commodity Index 3.3% 3.4% 19.6% 14.1% -23.8% 33.7% 23.6% -7.4% 0.4% -5.7% -4.1% -14.6% 11.5%

Source: Bloomberg

Currencies

2009 2009 2009 2009 2009 2009 2010 2011 2012 2013 2014 2015 2016

Euro/USD 8.0% -12.6% 11.4% 10.5% -4.3% 2.0% -6.6% -3.2% 1.8% 4.1% -12.1% -9.7% 5.5%

Euro/GBP 0.4% -2.7% -2.0% 9.1% 30.0% -7.2% -3.3% -2.8% -2.6% 2.2% -6.5% -5.0% 6.3%

GBP/USD 7.6% -10.2% 13.7% 1.3% -26.5% 10.2% -3.3% -0.4% 4.6% 1.9% -6.0% -4.9% -0.9%

US Dollar Index -7.0% 12.8% -8.2% -8.3% 6.1% -4.2% 1.5% 1.5% -0.5% 0.4% 12.7% 8.9% -5.7%

Source: Bloomberg

april 2016

Cantor Fitzgerald Ireland Bond Returns



Cantor Fitzgerald Equity & Commodity Linked Bonds: Cantor Fitzgerald Bond Issue Underlying Indicative Indicative Indicative Option A Option B Option A Option B Asset Initial Current Underlying Asset Participation Participation Indicative Indicative (Ticker) Strike Level Performance Rate Rate Performance Performance

GLOBAL DIVIDEND BOND SDGR 3960.34 5401.23 36.38% 80% 170% 29.11% 61.85%

DIVIDEND ARISTOCRATS BOND 1 SPXD10EE 1535.18 2021.48 31.68% 50% 145% 15.84% 45.93%

DIVIDEND ARISTOCRATS BOND 2 SPXD10EE 1522.93 2021.48 32.74% 50% 140% 16.37% 45.83%

DIVIDEND ARISTOCRATS GBP SPXD10EE 1522.93 2021.48 32.74% 50% 140% 16.37% 45.83%

80% PROTECTED KICK OUT 1* AAPL 86.37 93.74 8.53% Kick Out Level: 30% In Year 2 - - PRU 1395.00 1347.50 -3.41% 45% In Year 3 - - BMW 88.18 80.50 -8.71% 60% In Year 4 - - VOD 217.15 219.20 0.94% - - Indicative Performance: -8.71% N/a

80% PROTECTED KICK OUT 2* AAPL 94.72 93.74 -1.03% Kick Out Level: 30% In Year 2 - - GSK 1555.00 1459.00 -6.17% 45% In Year 3 - - BMW 93.97 80.50 -14.33% 60% In Year 4 - - VOD 195.65 219.20 12.04% - - Indicative Performance: -14.33% N/a

80% PROTECTED KICK OUT 3* RDSA 2346.50 1779.50 -24.16% Kick Out Level: 30% In Year 2 - - GSK 1432.50 1459.00 1.85% 45% In Year 3 - - BMW 85.64 80.50 -6.00% 60% In Year 4 - - ALV 128.20 148.25 15.64% - - Indicative Performance: -20.00% N/a

80% PROTECTED KICK OUT 4* RDSA 2132.50 1779.50 -16.55% Kick Out Level: 30% In Year 2 - - GSK 1485.00 1459.00 -1.75% 45% In Year 3 - - RYA 8.56 13.19 53.99% 60% In Year 4 - - ALV 138.45 148.25 7.08% - - Indicative Performance: -16.55% N/a

OIL BOND CO1 97.61 48.13 -50.69% 150% 275% 0.00% -10.00%

CAPITAL SECURE MIN RETURN 1* SX5E 2579.76 3028.21 17.38% - - 10.00% 11.50%

CAPITAL SECURE MIN RETURN 2* SX5E 2589.25 3028.21 16.95% - - 9.10% 17.60%

CAPITAL SECURE MIN RETURN 5* SX5E 2799.2 3028.21 8.18% - - 7.00% N/a

SECURE INCOME & GROWTH* SX5E 2161.87 3028.21 40.07% UKX 5351.53 6241.89 16.64% - - 22.00% N/a

CREDIT UNION EURO BONUS BOND* SX5E 3674.05 3028.21 -17.58% - - 1.00% N/a

OIL & GAS KICKOUT NOTE* XOM 82.23 88.40 7.50% - - - - RDSB 1717.00 1786.00 4.02% - - - - BP 391.70 373.75 -4.58% - - - - FP 44.33 43.93 -0.90% Indicative Performance: 0.00% N/a

OIL & GAS KICKOUT NOTE 2* XOM 77.28 88.40 14.39% - - - - RDSB 1469.00 1786.00 21.58% - - - - BP 339.30 373.75 10.15% - - - - FP 42.01 43.93 4.57% Indicative Performance: 17.00% N/a

OIL & GAS KICKOUT NOTE 3* XOM 82.87 88.40 6.67% - - - - RDSB 1711.00 1786.00 4.38% - - - - BP 350.10 373.75 6.76% - - - - FP 41.88 43.93 4.91% Indicative Performance: 17.00% N/a

REAL ESTATE KICKOUT NOTE* SPG 190.52 201.17 5.59% - - - - UL 233.60 234.00 0.17% - - - - DLR 74.80 87.98 17.62% - - - - HCN 65.25 69.42 6.39% Indicative Performance: 20.00% N/a

EUROSTOXX 50 DOUBLE GROWTH NOTE SX5E 2986.73 3028.21 1.39% 200% - 2.78% -

PROTECTED ABSOLUTE RETURN STRATEGIES SLGLARA 12.05 12.07 0.10% - - - - CARMPAT 615.33 617.41 0.34% - - - - ETAKTVE 128.74 128.47 -0.21% - - - - Weighted Basket 0.07% 120% - -9.91% -

Indicative performance figures & maturity dates



Cantor Fitzgerald Split Deposit Bonds Underlying Indicative Indicative Indicative Option A Option B Option A Option B SplitCantor Fitzgerald Bond Issue Asset Initial Current Underlying Participation Participation Indicative Indicative Deposit (Ticker) Strike Level % Change Rate Rate Return Return Return

SAFE HARBOUR BOND IV BNPIHBEE 627.10 674.62 7.58% 80% 160% 6.06% 12.12% 10.00%

SAFE HARBOUR BOND GBP IV BNPIHBEE 627.10 674.62 7.58% 80% 160% 6.06% 12.12% 10.00%

SAFE HARBOUR BOND GBP V BNPIHBEE 618.72 674.62 9.03% 80% 160% 7.23% 14.46% 10.00%

SAFE HARBOUR BOND VI BNPIHBEE 624.16 674.62 8.08% 70% - 5.66% N/a 10.00%

SAFE HARBOUR BOND VII BNPIHBEE 627.26 674.62 7.55% 70% - 5.29% N/a 10.00%

SAFE HARBOUR BOND VIII BNPIHBEE 629.75 674.62 7.13% 70% - 4.99% N/a 10.00%

Strike and Maturity Dates for Cantor Fitzgerald Bonds: Product Strike Date Maturity DateProtected Absolute Return Strategies 24/03/16 31/03/21

EuroSTOXX 50 Double Growth Note 24/03/16 09/04/21

Oil & Gas Kick Out Note 3 16/03/16 30/03/21

Real Estate Kick Out Note 18/12/15 05/01/21

Oil & Gas Kick Out Note 2 18/12/15 05/01/21

Oil & Gas Kick Out Note 30/10/15 12/11/20

80% Protected Kick Out 1 19/05/14 28/05/18




Capital Secure Min Return 1 21/02/13 21/02/19



Credit Union Euro Bonus Bond 17/04/15 22/04/21

Dividend Aristocrat Bond 1 27/05/13 27/04/17

Dividend Aristocrat Bond 2 26/07/13 26/06/17

Dividend Aristocrat Bond GBp 26/07/13 26/06/17

Global Dividend Bond 26/02/13 26/01/17

Oil Bond 08/06/12 16/05/16

Safe Harbour Bond GBP V 19/10/12 19/09/16

Safe Harbour Bond IV 21/09/12 22/08/16

Safe Harbour Bond GBP IV 21/09/12 22/08/16

Safe Harbour Bond VI 26/11/12 26/10/16

Safe Harbour Bond VII 30/11/12 01/11/16

Safe Harbour Bond VIII 23/01/13 23/12/16

Secure Income & Growth 21/05/12 21/11/17

WARNING : Investments may fall as well as rise in value. Past performance is not a reliable guide to future performance

All figures are indicative of underlying performance after participation only and represent the potential indicative return of the underlying strategy only,had the investments matured on 29th April 2016.

*Indicative performance figures may also include a performance related bonus (if applicable). However final payment of this bonus will depend on theunderlying performance at next annual observation date or maturity. Please consult the Terms and Conditions in the relevant product brochure for further

information.

Please note that while your capital protected amount is secure on maturity, any indicative returns, including those figures quoted above are not secure(other than any minimum interest return on maturity, if applicable). You may only receive your capital protected amount back. These are not

encashment values. The performance above is solely an indicative illustration of the current performance of the underlying assets tracked afterparticipation, gross of tax, and are NOT ENCASHMENT VALUES. If early encashment is possible, the value may be considerably lower than the original

investment amount. Please consult the Terms and Conditions in the relevant product brochure for further information.



Stock Price Total Return Local Cncy (%) Total Return Euro (%) Fwd P/E Div Yield Target 29/04/16 Year to date Year to date *(SIP) FY1 (x) FY1 Weight (%)

Aryzta 33.6 -27.77 -27.77 9.5 1.76% 4.0

Glanbia 16.5 -2.50 -2.50 17.7 0.89% 2.0

Ryanair 13.2 -12.16 -12.16 11.3 0.77% 4.5

ICG 5.2 -4.88 -4.88 13.0 2.36% 2.0

GlaxoSmithKline 1,459.0 9.57 3.31 15.9 5.48% 4.0

Pfizer 32.7 2.36 -2.78 13.0 3.87% 4.0

General Electric 30.8 -0.51 -5.50 17.5 3.18% 2.0

Smurfit Kappa 23.2 0.31 0.31 9.9 3.51% 3.0

Daimler 60.7 -17.50 -17.50 6.9 5.96% 3.5

DCC* 6,060.0 7.09 1.39 21.6 1.75% 2.0

CRH 25.4 -3.23 -3.23 13.6 2.88% 3.0

Grafton Group 690.5 -5.63 -11.02 12.6 2.49% 3.5

Royal Dutch Shell 1,786.0 18.14 11.39 13.3 7.24% 4.0

Exxon Mobil 88.4 14.44 8.70 21.0 3.46% 4.0

Apple 93.7 -10.46 -14.96 10.1 2.46% 2.0

Alphabet 707.9 -9.01 -13.58 18.1 0.00% 4.0

SAP 68.3 -6.90 -6.90 15.8 1.99% 4.0

Facebook 117.6 12.34 6.71 25.8 0.00% 3.0

PayPal 39.2 8.23 2.80 22.2 0.00% 3.5

Vodafone 219.2 -0.81 -6.48 40.3 5.15% 3.5

Verizon 50.9 12.76 7.10 12.7 4.57% 3.5

Bank of Ireland 0.3 -21.60 -21.60 9.4 4.31% 3.0

Prudential 1,347.5 -9.47 -14.64 10.4 3.50% 2.0

Lloyds 67.1 -5.38 -10.79 8.8 7.56% 3.5

AIG* 55.8 -7.11 -12.70 9.8 2.56% 2.0

Allianz 148.3 -9.35 -9.35 9.8 5.16% 4.0

Intesa Sanpaolo 2.4 -21.63 -21.63 9.2 9.56% 3.5

iShare Dax ETF 88.0 -7.34 -7.34 11.4 3.65% 4.0

Proshares Short S&P 500 ETF* 20.3 -1.17 -2.59 n/a n/a 4.0

Weighted Return (Local Crncy) -3.6% 15.4 3.11%

Current Price as at 30/4/2016. Source: Bloomberg, CFEU estimates. *SIP = Since Inclusion in Portfolio

Portfolio Total Return (€) YTD -6.55%. | Benchmark Return(€) YTD -4.28%

Core Portfolio 2016

Core Portfolio at 29th april 2016



DisclaimerCantor Fitzgerald Ireland Ltd, (Cantor), is regulated by the Central Bank of Ireland. Cantor Fitzgerald Ireland Ltd is a memberfirm of the Irish stock Exchange and the London stock Exchange.

This report has been prepared by Cantor for information purposes only and has been prepared without regard to theindividual financial circumstances and objectives of persons who receive it. The report is not intended to and does notconstitute personal recommendations/investment advice nor does it provide the sole basis for any evaluation of thesecurities discussed. Specifically, the information contained in this report should not be taken as an offer or solicitation ofinvestment advice, or encourage the purchase or sale of any particular security. Not all recommendations are necessarilysuitable for all investors and Cantor recommend that specific advice should always be sought prior to investment, basedon the particular circumstances of the investor.

Although the information in this report has been obtained from sources, which Cantor believes to be reliable and allreasonable efforts are made to present accurate information, Cantor give no warranty or guarantee as to, and do not acceptresponsibility for, the correctness, completeness, timeliness or accuracy of the information provided or its transmission. Norshall Cantor, or any of its employees, directors or agents, be liable for any losses, damages, costs, claims, demands or expensesof any kind whatsoever, whether direct or indirect, suffered or incurred in consequence of any use of, or reliance upon, theinformation. Any person acting on the information contained in this report does so entirely at his or her own risk.

All estimates, views and opinions included in this report constitute Cantor’s judgment as of the date of the report but maybe subject to change without notice. Changes to assumptions may have a material impact on any recommendations madeherein.

Unless specifically indicated to the contrary this report has not been disclosed to the covered issuer(s) in advance ofpublication.

Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up.Investments denominated in foreign currencies are subject to fluctuations in exchange rates, which may have an adverseaffect on the value of the investments, sale proceeds, and on dividend or interest income. The income you get from yourinvestment may go down as well as up.

Figures quoted are estimates only; they are not a reliable guide to the future performance of this investment. It is notedthat research analysts' compensation is impacted upon by overall firm profitability and accordingly may be affected tosome extent by revenues arising from other Cantor business units including Fund Management and stockbroking. Revenuesin these business units may derive in part from the recommendations or views in this report. Notwithstanding, Cantor issatisfied that the objectivity of views and recommendations contained in this report has not been compromised. Cantorpermits staff to own shares and/or derivative positions in the companies they disseminate or publish research, views andrecommendations on. Nonetheless Cantor is satisfied that the impartiality of research, views and recommendations remainsassured.

This report is only provided in the Us to major institutional investors as defined by s.15 a-6 of the securities Exchange Act,1934 as amended. A Us recipient of this report shall not distribute or provide this report or any part thereof to any otherperson.

Non-Reliance and Risk Disclosure:This is a Marketing Communication. It is not a research report as defined by MiFID nor is it intended as such. We are notsoliciting any action based on this material. It is for the general information of our clients.

Company DescriptionLloyds: Lloyds Banking Group plc, through subsidiaries and associated companies, offers a range of banking and financialservices. The Company provides retail banking, mortgages, pensions, asset management, insurance services, corporatebanking, and treasury services.

GlaxoSmithKline: GlaxoSmithKline PLC is a research-based pharmaceutical company. The Company developsmanufactures, and markets vaccines, prescription, and over-the-counter medicines, as well as health-related consumerproducts. GlaxoSmithKline provides products for infections, depression, skin conditions, asthma, heart & circulatory disease,and cancer.

Green rEIt: Green REIT plc operates as a property investment company. The Company invests in a portfolio of long-leaseand freehold, primarily commercial and mainly Dublin-based properties.



Hibernia rEIt: Hibernia REIT p.l.c. operates as a real estate investment trust. The Company invests in commercial propertiesincluding offices, industrial properties, retail stores, warehousing and distribution centers, and other related property assets.Hibernia focuses on properties located in Dublin, Ireland.

IrES rEIt: Irish Residential Properties REIT Plc is an Irish property investment company. The Company's focus is to acquire,hold and manage investments primarily focused on multi-unit residential real estate and commercial property for thirdparty rental.

EtFS Physical Gold: ETFS Physical Gold is an Exchange Traded Commodity, incorporated in Jersey and list across Europeand Asia. It is designed to track the Gold price less fees, allowing investors to invest in the precious metals market. It isbacked by physically allocated metal bullion which has no credit risk. The security only holds LBMA (London Bullion Market)Good Delivery bars.

First trust Morningstar Dividend Leaders Index Fund: This exchange-traded fund seeks investment results thatcorrespond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the Morningstar®Dividend Leaders Index℠.

iShares Euro-Corporate bond ex Financials: The Fund seeks to track the performance of an index composed of Eurodenominated investment grade corporate bonds.

PIMCo Global Investment Grade Credit Fund: The Global Investment Grade Credit Fund is an actively managed portfoliothat invests at least two-thirds of its assets in primarily investment grade global corporate and credit instruments. Portfolioduration may vary within two years of the benchmark and the fund may tactically invest up to 15% of assets in below-investment grade issues.

Standard life Gars Fund: To deliver a positive return in the form of capital growth over the medium to longer term in allmarket conditions by investing across multiple asset classes. This fund looks to outperform EURIBOR + 5% over 3 year rollingperiods and targets a volatility range of between 4-8%.

aviva Inv Multi Strategy target return: The Fund aims to provide a positive return under all market conditions, bytargeting an average annual return of 5% above that of the Bank of England base rate, before the deduction of charges,over a rolling three year period. The Fund aims to achieve this with less than half the volatility of global equities, over thesame rolling three year period.

Invesco Gtr: The Fund aims to achieve a positive total return in all market conditions over a rolling 3 year period. The Fundtargets a gross return of 5% per annum above UK 3 month LIBOR (or an equivalent reference rate) and aims to achieve thiswith less than half the volatility of global equities, over the same rolling 3 year period. There is no guarantee that the Fundwill achieve a positive return or its target and an investor may not get back the full amount invested.

Bny Mellon Global real return Fund: A total return comprised of long-term capital growth and income by investing ina broad multi-asset portfolio.

EtFS Brent 1mth: ETFS Brent 1mth (OILB) is designed to enable investors to gain a total return exposure to movements inthe price of ICE 1 month Brent crude oil futures contracts plus a collateral yield. The exposure is obtained through fullyfunded uncollateralised swaps with Shell Trading Switzerland AG, a member of the Royal Dutch Shell Group.

the City of London Investment trust plc: The fund looks to provide investors with long term growth in income andcapital by mainly investing in UK listed equities.

Historical Record of recommendation:Lloyds: We have been positive on Core Portfolio stock, Lloyds, since 01/03/14 and no change has been made to ourrecommendation since then.

GlaxoSmithKline: We have been positive on GSK’s outlook since 04/02/13 and no changes have been made to therecommendation since then.

Green rEIt: We have an Outperform rating for Green REIT since 09/02/15 and no changes to the recommendation havebeen made in the last 12 months.

Hibernia rEIt: We have an Outperform rating for Hibernia REIT since 22/08/14 and no changes to the recommendationhave been made in the last 12 months.

IrES rEIt: We have a Not Rated recommendation for IRES REIT.



Bond Description: BKIR 7.375% AT1 Perpetual Bond

Bank of Ireland: We have been positive on the outlook for Bank of Ireland since 27/07/15 changing our recommendationto Outperform from Market Perform

Bank of Ireland: Bank of Ireland provides a range of banking, life insurance and other financial services to customers inIreland and United Kingdom. Services include branch banking, personal and business loans, loan insurance, mortgages,foreign exchange, correspondent banking, credit cards and stockbroking.

Source: Bloomberg

All regulatory disclosures pertaining to valuation methodologies, definition of the rating system and historical records ofthe above recommendations can be found on the Cantor Fitzgerald Ireland website here:

http://www.cantorfitzgerald.ie/research_disclosures.php

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