High potential for growth in Emerging Markets
Wednesday, 23. January 2019, 15:00 - 15:45
SEMINARRAUM ІІ, Zürich-Oerlikon, Stage One
by Thomas Rutz
As large positions in US Dollars, equities and DM bonds start to unwind, the resulting inflows to EM should translate in materially stronger growth. Expectations are that the USD will weaken and US equities and DM bonds underperform as the business expansion is late cycle.
By contrast, the EM cycle is at an early stage and assets are posed to relatively outperform. Dislocations in EM currencies, attractive credit spreads and higher commodity prices provide a good backdrop for new investment opportunities in high growth sectors.
The MainFirst EM Credit Opportunities Fund is a highly diversified mix of distressed, high yield and commodity plays, managed by an expert team with a proven track record following a very strict relative value, bottom-up security selection process. The annualized performance over three years was 9.37 percent (as at 28 December 2018, ISIN: LU1061984545).