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Superior Free Cash Flow Yields Produce Superior Risk Adjusted Returns


The equity market environment today poses many challenges, the main ones being headline valuations that appear fairly valued and economic growth across the world which remains lacklustre.  This combination of factors has created a market environment which can be quite volatile as was seen recently around “Brexit”. 

Appian strives to navigate through this environment by investing in high quality companies that are generating high amounts of cash at attractive valuations. This results in Appian Funds having Free Cash Flow Yields superior to the Market*.

Research has shown that Free Cash Flow yield is the single most important factor driving Risk Adjusted Returns.

Equities in Appian Funds today have Free Cash Flow Yields* which are at a 40%+ premium to the market. These strong free cash flow yields allow our companies to pay sustainable dividends as well as re-invest in their businesses for long-term growth.


Source: Canaccord Genuity - Quest



Source: Canaccord Genuity - Quest

Equity markets may remain volatile but we remain well positioned to produce superior risk adjusted returns by maintaining our discipline of investing in quality companies with strong free cash flow characteristics.
 
*Calculation based on median of free cash flow yields of equity constituents of portfolio.  Market is as measured by Canaccord Genuity - Quest.

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The information contained in this material is not financial advice. Nor does it constitute an offer for the purchase or sale of any financial instruments, trading strategy, product or service. No one receiving this material should treat any of its contents as constituting advice. It does not take into account the investment objectives, knowledge, experience or financial situation of any particular person. You should seek advice in the context of your own personal circumstances prior to investing or taking out any product from your own independent adviser.
 
This material has been prepared and issued by Appian Asset Management Limited on the basis of publicly available information, internally developed data and other sources believed to be reliable. While all reasonable care has been given to the preparation of the information, no warranties or representation, express or implied are given or liability accepted by Appian Asset Management Limited or its affiliates or any directors or employees in relation to the accuracy, fairness or completeness of the information contained herein. Any opinion expressed (including estimates and forecasts) may be subject to change without notice. 

If you decide to invest in the Appian Unit Trust, further information in relation to all risks is provided in the Fund Prospectus and supplements. This material is available from Appian Asset Management Limited, 42 Fitzwilliam Place, Dublin 2. If you invest in the Appian Unit Trust, you may lose some or all of the money you invest. The value of your investment may go down as well as up. This investment may be affected by changes in currency rates. 

References to past performance are for illustrative purposes only and are not a reliable guide to future performance. Projected returns are estimates only. Forecasted returns depend on assumptions that involve subjective judgement and on analysis that may or may not be correct. 

The above disclaimer and limitations of liability are applicable to the fullest extent permitted by law, whether in Contract, Statute, Tort (including without limitation, negligence) or otherwise.
 
Appian Asset Management Limited is regulated by the Central Bank of Ireland. 
 

Appian Unit Fund Prices  
2 August 2016 
Appian Value Fund
Appian Equity Fund
Appian Small Companies Opportunities Fund
Appian Liquidity Fund
Appian Ethical Value Fund
137.43  
156.10    
175.43
106.37   
96.13

For more detailed information on each of our funds click here

Patrick J Lawless
Chief Executive Officer
Eugene Kiernan
Head of Investment Strategy
Frank O’Brien
Consultant
John Mattimoe
Head of Equity Analysis
 
Lisa Neary
Fund Manager
Niall Dineen
Senior Fund Manager
Click here for more information about our Investment Team
Kevin Menton
Director
Tel: (01) 662 3989 direct
Click here to email Kevin
John Flavin
Senior Relationship Manager
Tel: (01) 662 4053 direct
Click here to email John
Pat Kilduff
Senior Relationship Manager
Tel: (01) 662 3985 direct
Click here to email Pat
 
Cillian Quinn
Client Relationship Executive
Tel: (01) 662 4055 direct
Click here to email Cillian
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