In today's interest rate environment, traditional, primarily buy-and-hold investment-strategies in the bond market can barely generate attractive returns. In the future, flexible approaches are needed that use the full range of investment possibilities In particular, the manager must be able to generate genuine alpha and market-independent returns. MainSky has followed this philosophy since 2001 by generating income from a variety of sources. We carry out flexible country, sector and bond allocation and generate more performance via duration management, yield curve adjustment, spread management, and the use of options and money market strategies. At the same time, we minimise the risks in our portfolios by using the correlation structure of these positions.
We offer both absolute return as well as benchmark-oriented solutions for individually structured mandates. Depending on your mandate objective, you therefore have the choice between out-performance or absolute returns. By investing in one of our funds, you can participate in a pre-defined and proven strategy (see below). Our funds consistently implement the MainSky philosophy of flexible portfolio management that has generated significant outperformance for our customers.
The MainSky asset allocation approach provides access to various global asset classes and takes advantage of the diversification effects between them. Depending on the market cycle, significant shifts in the weights of the individual asset classes can be expected over time. On the equity side, the mandate pursues a global approach covering the US, Europe, Asia & Japan, as well as emerging markets. The implementation is usually passive via ETFs. On the bond side, Europe is the main investment focus.
The MainSky asset allocation mandate is based on an active top-down approach and derives the performance potential for the individual asset classes from basic macroeconomic analysis. The analyses are supported by a wide range of proprietary quantitative indicators.
Risk of the mandate is actively controlled, i.e., the risk sensitivity of the portfolio is increased in anticipation of positive market phases or lowered in difficult market phases. In this respect, risk management is an integral part of the investment process.
Depending on investor objectives, the mandate can be steered with various risk parameters. This can be capital preservation or a profit-oriented direction. It is also possible to provide the strategy with a guaranteed value (CPPI structure).
On the equity side, MainSky relies on index-linked investments in liquid equity markets. Studies show that outperformance through stock picking is rather the exception. MainSky, on the other hand, relies on active management with passive products (mostly ETFs) in accordance with the regional and sectoral positioning of the equity portfolio. The aim of this approach can be both the achievement of absolute returns as well as higher yield than a benchmark (e.g. MSCI World).
In addition, MainSky equity portfolios are designed according to certain systematic criteria which meet a specific investment goal. For example, low-risk portfolios can be created by selecting stocks with low volatility and the highest possible diversification potential. Contrary to expectations, such portfolios do not generally yield inferior long-term returns compared to an index portfolio. It is also possible to construct portfolios that have an exposure to other "equity factors" such as value or momentum.
In January 2013, Telos certified the Bond Absolute Return Fund with their AA+ rating for very high quality standards.