With the launch of the HI-EM Credits Quality Select fund on 1 December 2017, Helaba Invest increased the volume of institutional mutual funds under management to more than EUR 3 billion. Institutional mutual funds are ideal for investors who are looking for a way to pursue different investment strategies and styles with lower volumes than with special funds. There are also predestined for multi asset portfolios and core satellite strategies.
While around a third of all European government bonds and quasi-sovereign issuers meanwhile exhibit negative yields, emerging market bonds enable investors to generate added value. This is because issuers from emerging countries frequently offer a more attractive coupon than those from advanced economies with the same creditworthiness. For this reason, Helaba Invest launched HI-EM Credits Quality Select fund (ISIN: DE000A2DTLE7*) on 1 December 2017, an institutional mutual fund that is focused on issuers from emerging markets with good credit quality. The fund launched with a volume of EUR 29.5 Million.
The HI-EM Credits Quality Select fund invests exclusively in bonds with an investment grade rating at the time of purchase. “This also opens up a new market for investors who were not previously permitted to invest in emerging markets due to rating restrictions”, explains Dr Hans-Ulrich Templin, a member of Helaba Invest’s Management Board. Investing in government and corporate bonds reduces concentration risks. Approximately 50 percent of the portfolio is invested in both EUR and USD bonds. “By investing in different interest rate and currency areas, the vulnerability of the portfolio to interest rate rises can be reduced by correlation effects resulting from a diversification of monetary policy cycles”, Templin added. Unhedged foreign currency exposure is limited to 5 percent.
* You can find detailed product-specific information as well as information on opportunities and risks of the above-mentioned UCITS-compliant fund in the current sales prospectus, in the Key Investor Information as well as in annual and semi-annual reports. These are available free of charge in German at the capital management company Helaba Invest or on our homepage (www.helaba-invest.de). The sales prospectus constitutes the sole binding basis for the purchase or sale of UCITS funds.
Helaba Invest was founded in 1991 as a wholly-owned subsidiary of Helaba. Since then, it has been responsible within the Helaba Group for the professional management of assets of institutional investors.
Helaba Invest’s business strategy is based on the three pillars of “Master KVG”, “Asset Management Securities, SAA and TAA” as well as “Asset Management Real Estate and Alternative Asset Classes”. With a volume of assets under management of approx. EUR 130 billion, Helaba Invest is one of the leading capital management companies in the segment of institutional asset management.