Cantor Fitzgerald June 2016 Investment Journal

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.

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InvestmentJOURNaL

Featured this Month:

Stock Watch: Irish Continental Group, Paddy Power Betfair, PayPal

Green Effects Fund: Socially Responsible Investing

Investment Fund Focus: PIMCO GIS Global Investment Grade Credit, BNY Mellon Global Real Return Fund

ETF of the Month: iShares EURO STOXX 50 UCITS ETF

Investment Trust: The City of London Investment Trust Plc

June 2016

CANTOR

Dealing Desk

Call: 01 6333 633

June is set to be a critical month for marketsas several key events are on the horizon.Most notable from an Irish perspective isthe looming Brexit referendum on June23rd. The risk premium associated with theoutcome of the vote has begun to be

eroded as investors join our belief that voters will ultimatelychoose to remain in the EU, any swing in polling data aheadof the vote should see an associated move in risk assets likeUK equities and Sterling.

The second key event is the Federal Reserve’s next policymeeting on June 14th and 15th. Voting members of theFed have gone to great lengths in recent weeks to primemarkets for a potential rise at the June meeting, and Futuresmarkets have adjusted accordingly, implying a 22% chanceof a June rate hike, much higher than the 4% chance pricedin as of mid-May. Ultimately we see limited scope for a hikeat the June meeting given its proximity to the Brexit vote.We continue to favour equities within the Eurozone overthose of the US and UK, and see little in the way of a catalystfor the latter two in the near term.

David DonnellySenior Investment analystJune 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 May 3Stock Watch 5

Irish Continental Group 5

Paddy Power Betfair 6

PayPal 7

Green Effects Fund 8Chart of the Month 9Structured Products 10ETFs & REIT Portfolio 11ETF of the Month 13Investment Fund Focus 14REITs Update 15

Investment 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 JUNE 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...

May

Moody’s upgraded Ireland’s long-term government bond rating to “a3”, joining the other main rating agencies, S&P andFitch, in assigning Ireland an “a” rating. The upgrade is important in so far as it broadens the range of potential buyers whichnow includes those that can only invest in “a” Rated bonds. The Irish 10 year bond is now yielding c. 0.67%. For a comparisonwith other nations, see the table below:

Country 10 Year Bond Yield Inflation Rate Unemployment Rate

France 0.46% -0.2% 10.2%

Germany 0.13% -0.1% 4.2%

Ireland 0.67% -0.2% 7.9%

Italy 1.34% -0.5% 11.4%

Spain 1.48% -1.1% 21%

United Kingdom 1.40% 0.3% 5.1%

U.S.a. 1.82% 1.1% 5.0%

Source: Morningstar

Residential property prices increased by 0.3% in april and 7.1% on an annualised basis. Prices in Dublin are now 35.2%below the 2007 peak and 35.8% below peak in the Rest of Ireland.

Retail sales increased by 0.8% in april with the annualised figure running at 5.1%.

Ireland: “A” Rating Restored


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



Oil climbs back up to $50, some 85%higher than the $27 level hit at thebeginning of the year but still a long wayshort of the $100 level we have seen inrecent years. Production levels have beenimpacted by attacks in Nigeria whereproduction is now at a 20 year low,disruptions in Venezuela due to powercuts, strikes at French refineries, andwildfires in Canada.

***

The G7 (Canada, France, Germany, Italy,Japan, UK and the US) met in Japan andtopics up for discussion included: theglobal economy; territorial disputes inthe South China Seas; the refugee crisisin Europe; cyber crime; terrorism; and theMiddle East. On the global economy,Japan is pushing for co-ordinated fiscalstimulus for leading nations whileGermany favours structural reforms.Obama said that Donald Trump has“rattled” world leaders and with goodcause, given the level of ignorance Trumphas displayed on world affairs.

***

I’ve already had my fill of Brexit so all I willpoint out is that the betting exchangesand the bookies have, as usual, beenright on this one and way ahead of thepolls (given the choice, I will side with thebetting exchanges, where real money isbeing wagered, over opinion polls). Theopinion polls have now started to showa swing towards the “stay” camp andsterling has also started to strengthen asBrexit fears subside.

***

Qatar Airways raised its stake in IaG -owner of British airway, aer Lingus andIberia to 15%. It first acquired a 9.99%stake in January 2015 and raised that to12% in april this year. It is unclear of itsintention but EU rules prevent non-EUinvestors from owning more than 49% ofEuropean airlines. Qatar hasn't ruled outincreasing its stake and may seek boardrepresentation.

In Brief....

The headline might come as a bit of a shock given that loose lending was largelyto blame for the financial crisis, but it is actually quite a smart initiative by Barclaysin the UK. The loans, referred to in some quarters as “family springboard loans”,have been designed as a solution to the problem facing the “Bank of Mom andDad” (parents’ savings being used to support mortgages for children). Whenparents put up the deposit for a house, they are unlikely to get it back as it actsas the initial equity in the home and the mortgage covers the remainder of thecost. The mortgage gets repaid and Bank of Mom and Dad rarely see a return ofthe deposit.

The Barclays solution is to get mom and dad to put 10% of the value of theproperty in a savings account where it will earn 1.5% p.a. but is inaccessible forthree years as a form of collateral tied to the mortgage. 100% of the cost of theproperty is then loaned to the son/daughter and, so long as repayments aremade and other conditions are met, the ring-fenced deposit will be released backto mom and dad at some point in the future. It makes sense to me and maybesomething our banks and central bank could take a look at. Other banks in theUK are looking at other initiatives which include extending the term beyondtraditional 30-year loans and even providing intergenerational mortgages.

100% Mortgages in the UK

Greece was back in the news again, albeit withless drama than in previous years. The issue, asalways, was its unsustainable debt levels –primarily a €10bn short-term repayment. Thesolution was to lend the country more moneyto enable it to make the near-term repayments.The IMF was pushing for debt restructuring/forgiveness but that has been left for anotherday. Greece now needs to show that it can keep its promises; the IMF needsto decide if it is in or out of the programme; and the Eurozone needs toconvince the IMF that it is serious about debt restructuring and reducingGreek debt servicing costs to a manageable level. While this story willcontinue to run, the Greek situation is no longer seen as a systemic risk in theway that it was a few years ago. However, there are plenty of other risks thatcould threaten European unity in the years ahead.

Another Greece crisis avoided,until the next time.



StockWatch

Stephen Hall, CFA, Investment Analyst

Irish Continental Group (ICG) Current Price: €5.40*

Irish Continental Group (ICG) remains one of our top picks in the current environment as Brexit risks diminish, as oilruns into resistance at $50 a barrel and as ICG announces its intentions to upgrade its Epsilon ferry in May 2018. Weretain our Outperform rating on the stock and anticipate that it will break to new all time highs if the UK votes toremain in the EU on the Brexit referendum vote on the 23rd June.

Easing of oil and currency headwinds

ICG has faced two key headwinds over the past 3 months; firstly rising oil prices and secondly, a weakening Sterling Poundassociated with Brexit risks. Both headwinds have eased in recent weeks as oil found resistance of $50 a barrel due torenewed strength in the US Dollar term which is a boon for ICG given its un-hedged stance on fuel costs. Secondly, thelatest Brexit poll suggests the ‘Remain’ camp has taken a sizeable lead, which has supported the Sterling Pound which alsoreduces the likelihood of a collapse in trade between Ireland and the UK if a Brexit were to occur which would significantlyimpact ICG’s business. Therefore as these two major headwinds reverse, we see potential for ICG to re-rate higher.

New €144m ferry to replace Epsilon

On the 31st of May, ICG announced that it will build a new replacement ferry for €144m with German manufacturer, FGS.The new ferry is due to be delivered in May 2018 and 20% of the cost will be paid up front and the remaining 80% balancewill be paid upon delivery. This new ferry is due to replace Epsilon which is currently being chartered from a third party.Epsilon has a Gross Tonnage of 26,375 tonnes, passenger capacity of 500, 272 beds, lane meters of 2.8km and operatesroutes between Dublin/ Holyhead and Dublin/ France. The new ferry will have Gross Tonnage of 50,000 tonnes, space for1,885 passengers, 2,800 lane meters; however it can carry essentially double the number of RoRo freight vehicles than thecurrent Epsilon due to the new design (165 vs. 80). It will have dedicated capacity for 300 cars which Epsilon doesn’t currentlyhave. It also has 435 cabins for overnight sails to France from Dublin. The cost of this new ship will be financed throughdebt and operational cash flow of the business.

We feel this is a transformative deal for ICG, as the company will be able to take Jonathan Swift out of service in the winterwhich essentially doubles the life span of the ferry from 5 to 10 years. The tourism demands for Jonathan Swift will bemoved onto the new ferry upon delivery and will result in a big operational margin uplift. Upon delivery, ICG should see anEBITDa margin uplift of €7m in 2018, €13m in 2019 and €20m by 2022. The new replacement ship should last 40 years andmanagement expects an IRR hurdle of 15% to be easily achieved.

ICG Valuations

ICG is currently trading at 15x FY16eearnings, which we view asattractively valued given itsearnings growth outlook, therecent announcement of thereplacement Epsilon ferry andreversing headwinds. Ultimately, ifBrexit risks are fully removed, thiswould be beneficial to the stock inthe near term which may lead tonew all time highs for ICG.

Irish Continental Group Share Price $ $

$

Source: Bloomberg*Prices as of 31/5/2016



Shane Kelly,Investment Analyst

Paddy Power Betfair Current Price: €121.30*

We see the merger of Paddy Power and Betfair as a strong partnership between two market leading brands, withseparate customer bases and attractive growth opportunities. The core rationale for the merger includes scale,synergies, positions in regulated markets, differentiated client base and product offer and a strong balance sheet forthe combined group

as well as Paddy Power’s presence on the high street through its 592 retail locations, the combined group also has 4.1monline customers, and is now the second largest online operator by revenues. Despite this, c. 74% of regulated marketcustomers do not bet with either brand representing a significant market share left to win.

Management will leverage the distinctive perceptions of both Paddy Power and Betfair, keeping the brands separate.Customers see a distinct difference in the two names, viewing Paddy Power as playful, with strong brand appeal whileBetfair is seen as knowledgeable, with attractive odds and strong products. Both brands also focus on different sectors withPaddy Power largely focused on Horseracing and Betfair predominantly focused on Football and as such just 3% ofcustomers use both Paddy Power and Betfair. This should allow the group attract a larger percentage of the untappedmarket given the differentiated offers available for both casual and serious gamblers.

Synergies are expected to reach £50m annually by year three of the merger which represents c. 7% of costs. It has begunthe process, announcing that it is reducing its staff by 300 in Dublin and 350 in the UK, to remove overlap in roles for thenewly merged group. In addition to the cost synergies, operating margins should significantly improve given theintroduction of Paddy Power games on the Betfair platform, while Paddy Power customers can now benefit from Betfair’slive scoring on its platform. It should also benefit from the combination of two very strong risk teams as well as betterleverage in negotiations for advertising, while its corporate tax base in Ireland should also be a benefit.

The group also boasts a highly cash generative model, which leads to a strong balance sheet. Revenues are expected togrow 19% YoY to 2018, while free cash flow of c. €400m by 2018, should leave the group in a net cash position of around€350m. The dividend is also expected to grow steadily in this period with a 2018e dividend yield of 2.2%. While shares arecurrently trading on c. 35x 2016e earnings, this should normalise towards c. 23x by 2018. While this is still a premium topeers in the online gambling space at c. 20x, we believe it is justified given, the synergies, scale and product offering forthe combined group. a rating of 23x is also broadly in line with its long run historic average.

Paddy Power Betfair Share Price

% % % %

%

%Source: Bloomberg

*Prices as of 31/5/2016



David Donnelly,Senior Investment Analyst

PayPal Current Price: $37.79*

Central to the investment case for PayPal is that the company is at the leading edge of a change in the way consumerslive their lives and pay for goods and services. PayPal, once merely a secure online payments company, has evolvedinto a full service financial provider, offering international payments, credit facilities and many of the servicestraditionally associated with a consumer’s current account. As a greater number of consumers shop online, especiallythrough mobile devices, PayPal’s popularity has sky rocketed. The company now boasts 184 million accountsworldwide, more than half outside the US, and processed $81 billion in transactions last year. PayPal’s growth ratesare also highly enviable, as earnings increase at high-teens rates, far in excess of the wider e-commerce market atc.13%. Current expectations are for earnings to rise at c.19.5% compounded annually over the next four years.

Management is focused on increasing the frequency of use among consumers from the current 2-3 times per month to 2-3 times per week, and eventually to a daily habit, replacing or complimenting other payment methods like credit/debitcard and cash. To aid in this endeavour, PayPal is accepting a slightly lower margin on transactions with Merchants in theshort term in order to expand the popularity of the service. Longer term however, there should be scope to raise this marginonce the platform has become the “de facto” name in online and mobile payments.

In a further positive development, PayPal has now partnered with merchants to allow consumers to load funds onto theirPayPal account at cash registers in store. This is part of an overall strategy to increase the number of ways consumers canboth add money to a PayPal account, but more importantly, utilise the funds on their accounts. Given the relatively highlevel of fixed costs within the business, there is a high drop through to the bottom line from rises in revenues.

Overall, we believe that PayPal represents an excellent opportunity to gain exposure to a company which is at the forefrontof a change in the way consumers purchase goods and services. The trend of consumers shifting payments to online andmobile devices, and using digital means rather than cash to pay for goods is set to continue in our view. This is highlightedby the rise of contactless payment which can now be seen in many point-of-sale locations around the world. We believethat PayPal is central to this cultural shift and is well positioned as the leading name in the space to capitalise on furthergrowth.

PayPal Share Price

& &

&

&Source: Bloomberg

*Prices as of 31/5/2016

Green Effects FundSocially Responsible Investing

Richard Power, Director of Stockbroking

€0

€20

€40

€60

€80

€100

€120

€140

€160

€180

€200

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).

Performance As of 31/5/2016 1 Month YTD 1 Year 3 Year* 5 Year*

Green Effects 1.67 2.24 1.86 13.08 10.22

MSCI World € 3.46 -0.67 -5.42 11.99 12.11

Friends First Stewardship Ethical 2.21 -2.19 -6.27 11.57 11.75

New Ireland Ethical Managed 1.60 0.70 -6.30 7.70 9.10

*Annualised Return. Source: Cantor Fitzgerald Ireland Ltd Research and Bloomberg.

Manager CommentThe Green Effects Fund ended May at €185.26 which was a return of 1.67%for the month. Year to date the fund has returned 2.24%. Broader equitymarkets ended May modestly higher with the Eurostoxx50 posting a returnof +1.16% for the month. The German equity market was one of thestrongest performing regions during May with a gain of +2.23%. The Eurotraded weaker against USD and GBP during the month which is a tail windfor the Euro denominated fund with its USD and GBP holdings. Expectationsof a Federal Reserve interest rate hike in June or July gained momentumwhile across the water the financial analysts moved towards expecting theUK will vote to remain within the Eurozone. The Brexit referendum takesplace in the UK on 23rd June. Oil price has continued its upward momentumduring May with the price of Brent Oil ending May at $49.69 per barrel. Incompany specific news during the month German chip maker Aixtronreceived a takeover approach from a Chinese Investment Fund. The Chineseinvestor, Fujian Grand Chip Investment Fund LP (FGC) plans a voluntarypublic takeover bid for aIXTRON SE via its German subsidiary Grand ChipInvestment. The Board of Directors of Aixtron support the bid: Shareholderswill then be offered €6.00 per share in cash. This translates to a valuation,including cash, of around EUR 670m and a premium of circa 50.7% of theaverage 3month share price of aixtron. Tesla Motors Inc. sold $2 billionworth of stock during May with $1.4 billion held by the company, and therest by its chief executive, Elon Musk - to fund faster production of its Model3 sedan. The shares were down circa 8% on the month follow this shareissuance news.


Key InformationMorningstar Rating � � � � �

NAV €185.26*

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.cantorfitzgerald.ie/greeneffects

*Prices as of 31/5/2016Source: Bloomberg & Cantor Fitzgerald Ireland Ltd Research

Top Ten HoldingsSVENSKA CELLULOSA 8.29%

KINGFISHER 7.75%

SHIMANO 7.72%

VESTAS 7.40%

SMITH & NEPHEW 4.33%

TOMRA SYSTEMS 4.29%

EAST JAPAN RAILWAY CO. 3.95%

ACCIONA 3.88%

STEELCASE 3.80%

AEGION 3.68%


Green Effects Fund NAV Since Inception





Chart of the Month

EURGBPEURGBP remains at the mercy of Brexit opinion polls ahead of the crucial ‘In/Out’ referendum vote on the 23rd June. EURGBPpeaked at 80.9p back in april 2016 as opinion polls showed the vote as finely balanced. Since then a new opinion poll on 18thMay showed the “Remain” camp took a noticeable lead in the votes. This took EURGBP down to a low of 75.9p. Then on the31st of May, yet another opinion poll revealed the “Remain” camp has a much narrower lead than the poll on the 18th of Mayhad previously shown.

The impact of a Brexit would clearly have substantial negative effects on the health of the UK economy in our view. Not onlywould trade agreements need to be renegotiated, a process which would take many years, the cloud of uncertainty in a post-Brexit UK would negatively impact inward investment, weighing on economic growth. The first indications of these effectscan be seen in the negative turn the country’s Industrial data has taken in recent months; Industrial Production was expandingat 1.6% year-on-year in November 2015, but has since slowed to a decline of 0.2% as of the last reading in March. Similarly,Business Confidence readings have also plunged.

The binary outcome of the Brexit referendum has big swing implications on EURGBP. If the UK votes to remain in the EU, thisshould see the Sterling Pound strengthen, and could see EURGBP trade back down to a 73-75p range. However, the uncertaintyassociated with a leave vote could see Sterling Pound lose 5%-10% of its value instantly against the EUR, which could seeEURGBP at 85p on the 24th of June. Ultimately, we see the UK remaining in the EU, which should see EURGBP tradingdown 73-75p over the coming weeks.

Stephen Hall, CFA, Investment Analyst

EURGBP Chart

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Source: Bloomberg



STRUCTUREDPRODUCTS



ETFs & REIT Portfolio

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

Mark McPaul, Portfolio Construction Analyst

Top PerformersWisdomTree Europe Hedged SmallCap Equity ETFEuropean Smaller Companies performed well in the month as investor sentiment turned more positive. a significant factor behindthis was better polling for the remain camp in the Brexit vote. Given the smaller nature of the companies in this fund, it tends tooutperform in rising markets and underperform in falling markets.

SPDR S&P 500 ETFThe S&P rebounded to close to all time highs over the month as the markets digested better US data and shrugged off the impactof a potential rate hike in the coming months.

PowerShares Global ShortTerm High Yield ETFHigh yield continues to rebound from the sell off seen in the later part of last year and early this year. New issuance is comingback to the market, which is very important for sentiment. US growth has continued at a moderate pace easing fears of a recessionthat were in play earlier in the year.Name Return %

WisdomTree Europe Hedged SmallCap Equity ETF 5.84

SPDR S&P 500 ETF 4.45

PowerShares Global ShortTerm High Yield ETF 3.97

Top DetractorsiShares Core MSCI Emerging Markets ETFEmerging market sentiment is gaining more traction however many investors are still wary of this asset class. The potential for arate hike in the US should keep investors on the sidelines for now. This view could well change to a more positive outlook howeverfollowing a rate hike if commodities can maintain strength.

iShares MSCI Eurozone ETFThere was some divergence between the ETF and the fund at the end of the month possibly due to seasonal factors. We wouldexpect this to correct itself in the near term. The underlying index was flat to slightly positive on the month.

SPDR Barclays Intl Treasury ETFBonds have faced some headwinds of late as investors have become less concerned about global growth. The rise of commoditieshas also lead to some concern that inflation may reappear quicker than expected. Generally higher inflation expectations wouldbe negative for bonds. Name Return %

iShares Core MSCI Emerging Markets ETF -1.09

iShares MSCI Eurozone ETF -1.02

SPDR Barclays Intl Treasury ETF -0.06



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 1.15 5.0% 3.04 3.04 -1.37 2.92

Green REIT PLC EUR 1.45 5.0% 0.69 0.69 -8.85 1.10

Hibernia REIT PLC EUR 1.28 5.0% 0.85 0.85 -7.67 1.09

Equity

United Kingdom

iShares MSCI United Kingdom ETF USD 16.12 10.0% -1.16 1.51 -2.57 4.11

Europe

WisdomTree Europe Hedged SmallCap Equity ETF USD 24.96 12.5% 3.06 5.84 -0.86 4.32

iShares MSCI Eurozone ETF USD 33.99 17.5% -3.63 -1.02 -5.37 2.25

North America

SPDR S&P 500 ETF USD 209.84 15.0% 1.70 4.45 0.41 2.06

Emerging Markets

iShares Core MSCI Emerging Markets ETF USD 33.12 5.0% -3.69 -1.09 0.37 2.42

Fixed Income

Global Diversified

PIMCO Low Duration active ETF USD 100.30 5.5% 0.25 2.96 -1.83 3.23

High Yield

PowerShares Global ShortTerm High Yield ETF USD 23.75 5.0% 1.24 3.97 1.08 4.69

Global Corporate

WisdomTree Strategic Corporate Bond ETF USD 73.83 8.5% 0.53 1.60 0.34 3.65

Global Government

SPDR Barclays Intl Treasury ETF USD 55.07 6.0% -2.69 -0.06 4.05 0.00

Total Return 1 Month € 2.04%

Total Portfolio YTD € -1.90%

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

iShares EURO STOXX 50 UCITS ETF (Dist)We remain of the belief that the expansive QE programme rolled out by the ECB should benefit Eurozone equity markets giventhe far superior risk adjusted returns being offered by stocks over bonds and cash deposits. We expect that the newly createdliquidity from the QE programme should flow into equity indices, driving prices higher. We would note however, that there remainfour key risks to this view; further concerns regarding weakness in Chinese growth, Brexit, political fallout from the current refugeecrisis in continental Europe, and geo-political risks including terrorism. Valuations across Eurozone indices remain below those ofthe US and have not seen the substantial re-rating that US equities enjoyed on foot of the Fed’s QE programme. For example, theEuro Stoxx 50 trades on 14.0x 2016 earnings, a substantial discount to the S&P on 17.86x.


Current Price: €31.40*

Fund ObjectiveThe Fund seeks to track the performance of an index composed of 50of the largest companies in the Eurozone.

Performance Summary (%) 1 Year 3 Years 4 Years 10 Years Since Inception

iShares EURO STOXX 50 UCITS ETF -13.71% 6.85% 3.69% 0.97% -0.46%

Source: iShares Blackrock

Growth of €10,000 Since Inception


*Price as of 31/5/2016

Key FactsAsset Class Equity

Fund Base Currency EUR

Inception Date 03-Apr-2000

Benchmark EURO STOXX® 50

Total Expense Ratio 0.35%

Distribution Type Quarterly

Domicile Ireland

Methodology Replicated

Product Structure Physical

Rebalance Frequency Quarterly

UCITS Yes

ISA Eligibility Yes

SIPP Available Yes

UK Distributor/Reporting Status Yes/Yes

Use of Income Distributing


Important Information: The value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. ETFs tradeon exchanges like stocks and are bought and sold at market prices which may be different to the net asset values of the ETFs.

Ticker: SX5EEX GYTrading in Euro on the Frankfurt Stock Exchange



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 0.40% 4.19% 2.10% 3.27% 4.79%

*Annualised Returns

Investment Fund FocusMark McPaul, Portfolio Construction Analyst

3 Year Fund Price Performance

11.40

11.60

11.80

12.00

12.20

12.40

12.60

12.80

13.00

May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16

0.95

1.00

1.05

1.10

1.15

1.20

May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16

Fund InformationInvestment Manager PIMCO asset Management

ISIN IE00B3D1YW09

Currency EUR

Ongoing Charge 0.49%

Distribution Yield 3.77%

Distribution Frequency Quarterly

Fund Size (Base Currency) 12,860,629,452

Net Flow YTD (Month End) 1,437,832,041


Fund InformationInvestment Manager Newton Investment Mgmt

ISIN IE00B52MKP33

Currency EUR

Ongoing Charge 1.09%

Distribution Yield 1.10%

Distribution Frequency annually

Fund Size (Base Currency) 3,279,862,756

Net Flow YTD (Month End) 585,293,248


3 Year Fund Price PerformanceBNY Mellon Global Real ReturnFundBNY Mellon Global Real Return fund aims to achieve a total returncomprised of a long-term capital growth and income by investing ina broad multi-asset portfolio. The fund aims to deliver cash (i.e. 1month EURIBOR) + 4% per annum over 5 years before fees. Thestrategy essentially consists of two components, going long a basketof risk assets such as equities, corporate bonds and convertibles andthen adding a protection/hedging layer via government bonds, goldand derivatives. For example management consider the S&P 500 agood proxy for global equity markets and purchase protection by wayof derivatives linked to the index when they believe equities will likelyunderperform. The fund’s portfolio currently holds c.23.5% inprotection options on the S&P 500. We currently like the positioningof this fund and its role in providing downside protection to portfoliosduring adverse market conditions and it continues to maintain astrong track record of delivering in this situation.

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

Fund 0.11% 3.12% -0.54% 2.97% 3.28%

*Annualised Returns



Hibernia REIT Current Price €1.30 | NAV 130.8c

Hibernia REIT announced full year earnings on the 24th May,with IFRS NaV of €1.316 in line with our expectations for€1.315. EPRa NaV was €1.308, up 17% YoY. Net propertyincome came in at €30.2m against our expectations for€28.5m. The differences likely relate to timing differences onrent recognition on new acquisitions and pre lets.Contracted rent roll is now €39m, up 72% from 2015. Newlettings and rent reviews added €11.8m to contracted rentincluding major pre-lets to Twitter and Hubspot, totalling129,000 sq. ft. (Twitter pre-let extended by 16,500 sq. ft. for€0.7m extra rent). Group net debt came in at €52.9mequating to an LTV of 5.7%. Cash and undrawn facilities nowstand at €369m and €265m net of committed development spend. Management remained positive on its outlook notingthe strength of the domestic economy and limited commercial supply in Dublin means prospects for further growth in rents.Our 2017 projected NaV is for €1.42 however, given the level of activity in recent months we will review this figure.

IRES REIT Current Price €1.154 | NAV 104.3c

In May, IRES released a trading update and announced thatit had entered an agreement to acquire 201 apartments atElm Park on the Merrion Road, Dublin 4 for a totalconsideration of €59m. This will bring IRES’ apartmentportfolio to 2,288 including the 473 acquired in Q1. Theapartments at Elm Park currently have a passing rent of€3.2m, with occupancy at 92.5%. This equates to an initialgross yield of 5.4% or 5.9% if the apartments were fully let.The block consists of 101 one-bed, 96 two-bed and 4 four-bed duplex penthouses.

Irish REITs Monthly Update

Shane Kelly, Investment Analyst

Hibernia REIT Share Price( ( (

(

(

Source: Bloomberg

IRES REIT Share Price

!

! ! !

!

Source: Bloomberg

Prices as of 31/5/2016



Investment Trust


The City of london Investment Trust PlcThe trust offers investors long term growth in income and capital by mainly investing in UK listed equities. The manager's cautiousapproach and focus on limiting downside risk make it suitable for those investors looking for yield but with a lower tolerance forrisk, although they should still expect some equity volatility. Manager Job Curtis has been at the helm for 24 years and employsa valuation driven stock selection process centred around dividend yield. This proven process has resulted in a strong performancetrack record relative to peers and the dividend has also been raised for 50 consecutive years. The trust’s current positioning isoverweight defensive names in the consumer staples and healthcare sectors, while Real Estate and Home Builders also form asignificant overweight. The trust has been awarded a Gold rating by Morningstar analysts, offers a dividend yield of c.4.21% andhas one of the lowest ongoing charges at 0.42% per annum.

Current Price: GBp381.30*

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 0.53% 0.02% -4.47% 5.57% 9.28%

Source: www.cityinvestmenttrust.com

*Price as of 30/5/2016

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

PerformanceDATAMay 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 30/04/2016 31/05/16 % Change % ytd Change 52 Week High DateISEQ 6161.41 6493.46 5.4% -4.4% 6,921 03/12/2015DAX 10038.97 10262.74 2.2% -4.5% 11,802 20/07/2015Eurostoxx50 3028.21 3063.48 1.2% -6.2% 3,714 20/07/2015Stoxx600 (Europe) 341.48 347.45 1.7% -5.0% 409 20/07/2015Nasdaq (100) 4341.299 4523.893 4.2% -1.5% 4,740 02/12/2015Dow Jones 17773.64 17787.2 0.1% 2.1% 18,189 23/06/2015S&P500 2065.3 2096.96 1.5% 2.6% 2,133 20/07/2015Nikkei 16666.05 17234.98 3.4% -9.5% 20,953 24/06/2015Hang Seng 21067.05 20815.09 -1.2% -5.0% 27,855 04/06/2015China (Shaghai Composite) 2938.323 2916.616 -0.7% -17.6% 5,178 12/06/2015India 25606.62 26667.96 4.1% 2.1% 28,578 23/07/2015MSCI World Index 1670.8 1674.61 0.2% 0.7% 1,799 22/06/2015MSCI BRIC Index 228.49 221.44 -3.1% 0.2% 294 01/06/2015

CurrenciesCurrency Pair 30/04/2016 31/05/16 % Change % ytd Change 52 Week High DateEuroUSD 1.1451 1.1132 -2.8% 2.5% 1.1714 24/08/2015EuroGBP 0.78365 0.7686 -1.9% 4.3% 0.8117 07/04/2016GBP/USD 1.4612 1.4483 -0.9% -1.7% 1.5930 18/06/2015Euro/AUD 1.50537 1.53891 2.2% 3.2% 1.6590 24/08/2015Euro/CAD 1.43782 1.45749 1.4% -3.1% 1.6106 20/01/2016Euro/JPY 121.94 123.25 1.1% -5.7% 141.0600 04/06/2015Euro/CHF 1.09812 1.1065 0.8% 1.7% 1.1200 04/02/2016Euro/HKD 8.8822 8.6509 -2.6% 2.7% 9.0780 24/08/2015Euro/CNY 7.4182 7.3291 -1.2% -2.9% 7.5168 03/05/2016Euro/INR (India) 75.5905 75.077 -0.7% 4.1% 77.4900 12/02/2016Euro/IDR (Indonesia) 14995.86 15196.56 1.3% 0.9% 16,638.7000 29/09/2015AUD/USD 0.7603 0.7234 -4.9% -0.7% 0.7849 18/06/2015USD/JPY 106.5 110.73 4.0% -7.9% 125.8600 05/06/2015US Dollar Index 93.082 95.891 3.0% -2.8% 100.5100 02/12/2015

CommoditiesCommodity 30/04/2016 31/05/16 % Change % ytd Change 52 Week High DateOil (Crude) 46.69 49.1 5.2% 18.8% 63.86 10/06/2015Oil (Brent) 48.13 49.69 3.2% 33.3% 66.36 10/06/2015Gold 1292.99 1215.33 -6.0% 14.5% 1,303.82 02/05/2016Silver 17.84 15.9925 -10.4% 15.4% 18.02 02/05/2016Copper 228.35 209.55 -8.2% -2.4% 276.15 10/06/2015CRB Commodity Index 417.65 412.3 -1.3% 10.0% 542.10 04/06/2015DJUBS Grains Index 43.007 43.7543 1.7% 10.5% 50.19 14/07/2015DJUBS Soft Commodity 115.0983 119.0482 3.4% 11.5% 125.31 14/07/2015Gas 2.178 2.288 5.1% -2.1% 2.96 17/06/2015Wheat 488.5 464.5 -4.9% -3.9% 628.50 30/06/2015Corn 391.75 404.75 3.3% 9.2% 471.25 14/07/2015

BondsIssuer 30/04/2016 31/05/16 Yield Change % ytd Change 52 Week High DateIrish 5yr 0.02 -0.079 -0.10 -0.29 0.79 16/06/2015Irish 10yr 0.866 0.676 -0.19 -0.48 1.89 10/06/2015German 2yr -0.484 -0.511 -0.03 -0.17 -0.14 10/06/2015German 5yr -0.288 -0.377 -0.09 -0.33 0.27 13/07/2015German 10yr 0.271 0.139 -0.13 -0.49 1.06 10/06/2015UK 2yr 0.528 0.432 -0.10 -0.22 0.77 09/11/2015UK 5yr 0.976 0.899 -0.08 -0.45 1.67 26/06/2015UK 10yr 1.596 1.429 -0.17 -0.53 2.21 26/06/2015US 2yr 0.7816 0.877 0.10 -0.17 1.10 29/12/2015US 5yr 1.294 1.3718 0.08 -0.39 1.83 30/12/2015US 10yr 1.8333 1.8458 0.01 -0.42 2.50 11/06/2015

Source: Bloomberg and Cantor Fitzgerald Ireland Ltd Research.

May 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% 0.7%

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% 1.7%

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% -17.6%

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% -9.5%

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% 1.9%

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% 2.6%

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% -6.2%

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% -4.5%

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% -4.4%

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% 3.59%

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% 4.78%

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% 3.50%

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% -1.68%

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% 4.27%

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% 4.16%

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% 14.6%

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% 33.3%

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% 32.6%

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% -1.9%

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% 15.9%

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% 10.0%

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% 2.5%

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% 4.2%

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% -1.8%

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% -2.8%

Source: Bloomberg

May 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 5474.30 38.23% 80% 170% 30.58% 64.99%

DIVIDEND ARISTOCRATS BOND 1 SPXD10EE 1535.18 2071.72 34.95% 50% 145% 17.47% 50.68%

DIVIDEND ARISTOCRATS BOND 2 SPXD10EE 1522.93 2071.72 36.03% 50% 140% 18.02% 50.45%

DIVIDEND ARISTOCRATS GBP SPXD10EE 1522.93 2071.72 36.03% 50% 140% 18.02% 50.45%

80% PROTECTED KICK OUT 1* AAPL 86.37 99.86 15.62% Kick Out Level: 30% In Year 2 - - PRU 1395.00 1380.00 -1.08% 45% In Year 3 - - BMW 88.18 75.89 -13.94% 60% In Year 4 - - VOD 217.15 230.85 6.31% - - Indicative Performance: -13.94% N/a

80% PROTECTED KICK OUT 2* AAPL 94.72 99.86 5.43% Kick Out Level: 30% In Year 2 - - GSK 1555.00 1445.00 -7.07% 45% In Year 3 - - BMW 93.97 75.89 -19.24% 60% In Year 4 - - VOD 195.65 230.85 17.99% - - Indicative Performance: -19.24% N/a

80% PROTECTED KICK OUT 3* RDSA 2346.50 1657.50 -29.36% Kick Out Level: 30% In Year 2 - - GSK 1432.50 1445.00 0.87% 45% In Year 3 - - BMW 85.64 75.89 -11.38% 60% In Year 4 - - ALV 128.20 146.70 14.43% - - Indicative Performance: -20.00% N/a

80% PROTECTED KICK OUT 4* RDSA 2132.50 1657.50 -22.27% Kick Out Level: 30% In Year 2 - - GSK 1485.00 1445.00 -2.69% 45% In Year 3 - - RYA 8.56 14.11 64.74% 60% In Year 4 - - ALV 138.45 146.70 5.96% - - Indicative Performance: -20.00% N/a

CAPITAL SECURE MIN RETURN 1* SX5E 2579.76 3063.48 18.75% - - 10.00% 11.50%

CAPITAL SECURE MIN RETURN 2* SX5E 2589.25 3063.48 18.32% - - 9.10% 17.60%

CAPITAL SECURE MIN RETURN 5* SX5E 2799.2 3063.48 9.44% - - 9.00% N/a

SECURE INCOME & GROWTH* SX5E 2161.87 3063.48 41.71% UKX 5351.53 6230.79 16.43% - - 26.00% N/a

CREDIT UNION EURO BONUS BOND* SX5E 3674.05 3063.48 -16.62% - - 1.00% N/a

OIL & GAS KICKOUT NOTE* XOM 82.23 89.02 8.26% - - - - RDSB 1717.00 1660.50 -3.29% - - - - BP 391.70 357.25 -8.79% - - - - FP 44.33 43.68 -1.48% Indicative Performance: 0.00% N/a

OIL & GAS KICKOUT NOTE 2* XOM 77.28 89.02 15.19% - - - - RDSB 1469.00 1660.50 13.04% - - - - BP 339.30 357.25 5.29% - - - - FP 42.01 43.68 3.96% Indicative Performance: 17.00% N/a

OIL & GAS KICKOUT NOTE 3* XOM 82.87 89.02 7.42% - - - - RDSB 1711.00 1660.50 -2.95% - - - - BP 350.10 357.25 2.04% - - - - FP 41.88 43.68 4.30% Indicative Performance: 0.00% N/a

REAL ESTATE KICKOUT NOTE* SPG 190.52 197.64 3.74% - - - - UL 233.60 241.90 3.55% - - - - DLR 74.80 95.45 27.61% - - - - HCN 65.25 68.91 5.61% Indicative Performance: 20.00% N/a

EUROSTOXX 50 DOUBLE GROWTH NOTE SX5E 2986.73 3063.48 2.57% 200% - 5.14% -

PROTECTED ABSOLUTE RETURN STRATEGIES SLGLARA 12.05 12.22 1.35% - - - - CARMPAT 615.33 622.50 1.17% - - - - ETAKTVE 128.74 128.27 -0.37% - - - - Weighted Basket 0.72% 120% - -9.14% -

GLOBAL REAL RETURN NOTE SX5E 1.27 1.27 0.06% 150% - -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 627.10 668.50 6.60% 80% 160% 5.28% 10.56% 10.00%

SAFE HARBOUR BOND GBP IV BNPIHBEE 627.10 668.50 6.60% 80% 160% 5.28% 10.56% 10.00%

SAFE HARBOUR BOND GBP V BNPIHBEE 618.72 668.50 8.05% 80% 160% 6.44% 12.87% 10.00%

SAFE HARBOUR BOND VI BNPIHBEE 624.16 668.50 7.10% 70% - 4.97% N/a 10.00%

SAFE HARBOUR BOND VII BNPIHBEE 627.26 668.50 6.57% 70% - 4.60% N/a 10.00%

SAFE HARBOUR BOND VIII BNPIHBEE 629.75 668.50 6.15% 70% - 4.31% N/a 10.00%

Strike and Maturity Dates for Cantor Fitzgerald Bonds: Product Strike Date Maturity DateGlobal Real Return Note 29/04/16 12/07/21

Protected 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 31st May 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 31/05/16 Year to date Year to date *(SIP) FY1 (x) FY1 Weight (%)

Aryzta 35.3 -24.22 -24.22 9.9 1.63% 4.0

Glanbia 16.8 -1.08 -1.08 17.6 0.90% 2.0

Ryanair 14.0 -6.03 -6.03 10.5 0.00% 4.5

ICG 5.4 1.17 1.17 14.1 2.20% 2.0

GlaxoSmithKline 1,441.0 9.95 5.67 15.6 5.54% 4.0

Pfizer 34.6 9.57 6.88 13.2 3.63% 4.0

General Electric 30.2 -2.19 -4.59 17.2 3.24% 2.0

Smurfit Kappa 24.7 6.25 6.25 10.6 3.24% 3.0

Daimler 61.1 -16.55 -16.55 7.0 5.81% 3.5

DCC* 6,305.0 12.30 8.76 21.4 1.80% 2.0

CRH 27.2 3.89 3.89 14.4 2.71% 3.0

Grafton Group 740.0 1.00 -2.94 13.2 2.38% 3.5

Royal Dutch Shell 1,666.5 11.96 7.59 12.7 7.60% 4.0

Exxon Mobil 89.4 16.22 13.37 21.3 3.45% 4.0

Apple 99.9 -4.04 -6.39 10.8 2.33% 2.0

Alphabet 749.4 -3.75 -6.11 19.1 0.00% 4.0

SAP 72.7 1.10 1.10 17.0 1.87% 4.0

Facebook 118.7 13.52 10.74 25.7 0.00% 3.0

PayPal 37.6 4.39 1.83 21.7 0.00% 3.5

Vodafone 231.0 4.46 0.38 32.0 5.03% 3.5

Verizon 51.0 12.67 9.91 12.5 4.65% 3.5

Bank of Ireland 0.3 -18.93 -18.93 9.8 4.15% 3.0

Prudential 1,380.0 -7.29 -10.90 10.6 3.39% 2.0

Lloyds 71.7 1.60 -2.36 9.5 6.71% 3.5

AIG* 58.2 -2.98 -5.80 10.3 2.47% 2.0

Allianz 146.0 -9.35 -9.35 9.4 5.38% 4.0

Intesa Sanpaolo 2.3 -21.63 -21.63 9.5 9.49% 3.5

iShare Dax ETF 89.8 -7.34 -7.34 11.6 3.57% 4.0

Proshares Short S&P 500 ETF* 19.9 -3.02 -1.83 n/a n/a 4.0

Weighted Return (Local Crncy) -1.0% 15.3 2.99%

Current Price as at 31/5/2016. Source: Bloomberg, CFEU estimates. *SIP = Since Inclusion in Portfolio

Portfolio Total Return (€) YTD -2.76%. | Benchmark Return(€) YTD -1.34%

Core Portfolio 2016

Core Portfolio at 31st May 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 DescriptionICG: Irish Continental Group plc markets holiday packages and provides passenger transport, roll-on and roll-off freighttransport and container lifton and lift-off freight services between Ireland, the United Kingdom and Continental Europe.

Paddy Power Betfair PlC: Paddy Power Betfair PLC is an international betting and gaming group, formed following themerger of Paddy Power and Betfair. The Group provides betting services through the Internet, licensed bookmakers, bytelephone and offers online gaming services.

PayPal: PayPal Holdings Inc operates as a technology platform company that enables digital and mobile payments onbehalf of consumers and merchants. The company offers online payment solutions. PayPal Holdings serves customersworldwide.

Hibernia REIT: Hibernia REIT p.l.c. operates as a real estate investment trust. The Company invests in commercial properties



including 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.

WisdomTree Europe Hedged SmallCap Equity Fund: The WisdomTree Europe Hedged SmallCap Equity Fund seeks toprovide exposure to European small-cap companies while hedging exposure to fluctuations between the U.S. dollar andthe euro.

SPDR S&P 500 ETF: The SPDR® S&P 500® ETF Trust seeks to provide investment results that, before expenses, correspondgenerally to the price and yield performance of the S&P 500® Index.

PowerShares Global Short Term High Yield: Powershares Global Short Term High Yield Bond Portfolio is an exchange-traded fund incorporated in the USa. The Fund seeks investment results that generally correspond, before fees and expenses,to the price and yield of the DB Global Short Maturity High Yield Bond Index.

iShares Core MSCI Emerging Markets ETF: The iShares Core MSCI Emerging Markets ETF seeks to track the investmentresults of an index composed of large-, mid- and small-capitalization emerging market equities.

iShares MSCI Eurozone ETF: The iShares MSCI Eurozone ETF seeks to track the investment results of an index composedof large- and mid-capitalization equities from developed market countries that use the Euro as their official currency.

SPDR Barclays Intl Treasury ETF: The SPDR® Barclays International Treasury Bond ETF seeks to provide investment resultsthat, before fees and expenses, correspond generally to the price and yield performance of the Barclays Global Treasury ex-US Capped Index.

iShares EURO STOXX 50 UCITS ETF: The Fund seeks to track the performance of an index composed of 50 of the largestcompanies in the Eurozone.

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.

BNY MEllON GlOBAl REAl RETURN FUND: a total return comprised of long-term capital growth and income byinvesting in a broad multi-asset portfolio.

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:ICG: We have been positive on ICG’s outlook, since 07/03/13 and no change has been made to our recommendation sincethen.

Paddy Power Betfair: We have a Not Rated recommendation on Paddy Power’s Betfair outlook and no changes have beenmade in the last 12 Months.

PayPal: We added PayPal to our Core Portfolio on the 20/07/15 and have an Outperform outlook on the stock.

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.

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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Cantor Fitzgerald June 2016 Investment Journal

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