MainFirst –
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.
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MainFirst – Emerging Markets Corporate Bond Fund Balanced
More about the fund
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.
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.
The fund management team consists of Andranik Safaryan, Cornel Bruhin and Carloalberto Fraccaro.
Opportunities
- Flexible investment policy without benchmarking
- Fixed income funds: yield growth or price increases, respectively, on the pension markets and/or reduction of the yield mark-up for securities bearing higher interest rates
- Foreign exchange gains, if applicable
Risks
- Fixed income funds: yield reduction or price losses, respectively, on the pension markets and/or increase of the yield mark-up for securities bearing higher interest rates
- Generally: country risk, solvency and/or credit risks of issuers and/or counterparties
- Use of derivative financial instruments, if applicable
- Foreign exchange risks, if applicable
- The share value may drop below the purchase price the customer paid for the share at any
time.
For detailed information on opportunities and risks, please refer to the current sales prospectus.
UNPRI
MainFirst is committed to the Principles for Responsible Investment (UNPRI) for all investments.
ESG risk analysis
For us, sustainable investing means incorporating ESG risks as a key aspect of the investment process into our investment decisions. During this process, the companies in the MainFirst Emerging Markets Corporate Bond Fund Balanced are also checked for existing ESG risks using the database of the external rating agency Sustainalytics. This is primarily a qualitative process.
active dialogue
We engage in an active dialogue with the representatives of the companies in our portfolio positions. This facilitates a constructively critical exchange on strategic and sustainability-oriented topics. Through this commitment, we aim to achieve an improvement in the ESG profile at company level. Companies with serious risks ("Severe Risk") are assessed separately and their management is approached individually to remedy and improve the relevant issues. Companies that do not yet have an ESG rating are also being approached to act more transparently and thereby obtain an external ESG rating.
SECTOR EXCLUSIONs (PRODUcT ENGAGEMENT)
In addition, the fund management team wants to make the world a better place by actively investing sustainably. Therefore, we strengthen the sustainability approach of the MainFirst Emerging Markets Corporate Bond Fund Balanced by excluding other sectors:
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Energy & Environment:
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Value-based sectors:
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Defence & Military:
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GLOBAL STANDARDS
The exclusion of companies that do not meet the criteria of human rights, labour rights, environment or anti-corruption according to the Global Standards of the UN Global Compact is also a basic requirement of the investment.
Legal notices
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This marketing communication is for information purposes only and provides the addressee with guidance on our products, concepts and ideas. This does not form the basis for any purchase, sale, hedging, transfer or mortgaging of assets. None of the information contained herein constitutes an offer to buy or sell any financial instrument nor is it based on a consideration of the personal circumstances of the addressee. It is also not the result of an objective or independent analysis. MainFirst makes no express or implied warranty or representation as to the accuracy, completeness, suitability, or marketability of any information provided to the addressee in webinars, podcasts or newsletters. The addressee acknowledges that our products and concepts may be intended for different categories of investors. The criteria are based exclusively on the currently valid sales prospectus. This marketing communication is not intended for a specific group of addressees. Each addressee must therefore inform themselves individually and under their own responsibility about the relevant provisions of the currently valid sales documents, on the basis of which the purchase of shares is exclusively based. Neither the content provided nor our marketing communications constitute binding promises or guarantees of future results. No advisory relationship is established either by reading or listening to the content. All contents are for information purposes only and cannot replace professional and individual investment advice. The addressee has requested the newsletter, has registered for a webinar or podcast, or uses other digital marketing media on their own initiative and at their own risk. The addressee and participant accept that digital marketing formats are technically produced and made available to the participant by an external information provider that has no relationship with MainFirst. Access to and participation in digital marketing formats takes place via internet-based infrastructures. MainFirst accepts no liability for any interruptions, cancellations, disruptions, suspensions, non-fulfilment, or delays related to the provision of the digital marketing formats. The participant acknowledges and accepts that when participating in digital marketing formats, personal data can be viewed, recorded, and transmitted by the information provider. MainFirst is not liable for any breaches of data protection obligations by the information provider. Digital marketing formats may only be accessed and visited in countries in which their distribution and access is permitted by law.
For detailed information on the opportunities and risks associated with our products, please refer to the current sales prospectus. The statutory sales documents (sales prospectus, key information documents (PRIIPs-KIDs), semi-annual and annual reports), which provide detailed information on the purchase of units and the associated risks, form the sole authoritative and binding basis for the purchase of units. The aforementioned sales documents in German (as well as in unofficial translations in other languages) can be found at www.mainfirst.com and are available free of charge from the investment company ETHENEA Independent Investors S.A. and the custodian bank, as well as from the respective national paying or information agents and from the representative in Switzerland. These are:
Austria, Belgium, Germany, Liechtenstein, Luxembourg: DZ PRIVATBANK S.A., 4, rue Thomas Edison, L-1445 Strassen, Luxembourg; France: Société Générale Securities Services, Société anonyme, 29 boulevard Haussmann, 75009 Paris; Italy: Allfunds Bank Milan, Via Bocchetto, 6, 20123 Milano; SGSS S.p.A., Via Benigno Crespi 19A-MAC2, 20159 Milano; Portugal: BEST - Banco Eletronico de Servico Toal S.A., Praca Marques de Pombal, 3A,3, Lisbon; Spain: Société Générale Securities Services Sucursal en Espana, Plaza Pablo Ruiz Picasso, 1, 28020 Madrid; Switzerland: Representative: IPConcept (Schweiz) AG, Münsterhof 12, CH-8022 Zürich; Paying Agent: DZ PRIVATBANK (Schweiz) AG, Münsterhof 12, CH-8022 Zürich.
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