Emerging Markets Corporate Bond Fund Balanced
MainFirst Emerging Markets Corporate Bond Fund Balanced is a corporate bond fund that focuses on undervalued emerging market companies offering the potential for substantial returns after performing an extensive credit rating review (top-down and bottom-up analyses). The risk-return profile of all positions promises attractive returns, especially in a low interest rate environment. The aim is to achieve long-term capital growth based on a similar level of overall risk and to consistently outperform the benchmark index.Learn more
MainFirst – Emerging Markets Corporate Bond Fund Balanced
More about the fund
Our investment focus: diversified investments offering high potential returns
MainFirst Emerging Markets Corporate Bond Fund Balanced invests in high yield hard currency corporate bonds from emerging markets. Second-tier companies that are established in niche markets but are undervalued are also included in the bottom-up stock picking process. Commodities and energy are particularly attractive sectors for emerging market corporate bonds thanks to their significant earnings potential.
Our investment strategy: Fundamental with in-depth credit rating review
The investment strategy pursued by the fund managers is geared towards a balanced risk-return profile. This is why the fund team performs in-depth top-down and bottom-up analyses as part of the stock-selection process. This involves checking credit ratings, working out yield spreads and evaluating companies. All positions are also hedged as part of a rigorous risk management process. The combination of bonds from the commodities sector, lucrative second-tier stocks and high-yield bonds translates into attractive returns even in periods of low interest rates. This is also the result of contrarian investing. The combination of long-term management and short-term gains generated thanks to relative value investments in frontier markets allows the fund to consistently outperform the benchmark index – with a similar overall risk – and to achieve steady capital growth.