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).
When investing in shares, MainSky relies on factor-based - and thus systematic selection - of shares instead of the classic "stock picking". MainSky offers investors access to various factors such as value, quality, momentum and low volatility. Each factor premium can be used on its own or as a combination of several factors for stock selection and as a quantitative investment strategy. The aim is to generate a higher risk-adjusted return than the'broad market' in the long term.
At MainSky, the ability to identify individual factors and their return potential plays a central role. The return potential of the individual factors strongly depends on the phase of the economic cycle. We have developed active factor rotation in order to play to the strengths of the individual factors in the respective cycle phases. In this respect, the individual factors are allocated in different weights depending on the economic situation in order to optimize return and risk in the portfolios. To identify the market phases, we have developed our own indicator that evaluates macroeconomic data using quantitative methods. Factor-based equity allocation can also be implemented in line with ethical sustainability criteria.
In the equity-oriented mixed fund 'MainSky Macro Navigation Fund', shares are selected using the factor approach described, focusing on the factors 'value' and 'quality'. An active factor rotation is applied. In recovery and upswing phases, the factor 'value' is overweighted, as it generates higher returns in this market environment. In later cycle phases or in the economic downturn, on the other hand, the factor 'quality' is overweighted, as it is characterised by the most attractive risk-adjusted returns in such market phases.
In addition to an investment in the 'MainSky Macro Navigation Fund', the MainSky factor approach thus offers the possibility of implementing individual mandate objectives - such as the construction of portfolios with low volatility or a portfolio with value securities. No matter which way you choose - the attributes of the MainSky stock selection process are always 'systematic, transparent and sustainable'.
MainSky Asset Management AG was named one of Citywire's top 50 independent asset managers in Germany in September 2017.
Telos Rating certifies the Bond Absolute Return fund with the rating of AA+ very high quality standards.