Vontobel Fund - mtx Sustainable Emerging Markets Leaders

Why invest?

• Combination of systematic screens (“matrix”) and fundamental research to ensure style-consistent investment results and potential outperformance through the market cycle.
• Strong focus on valuation as the entry point significantly determines the fund’s rate of return in the medium-term.
• ESG integration improves risk management and enhances performance

Investment opportunity – leaders tend to stay leaders

Dynamic growth rates in emerging markets have produced many profitable businesses in this region.

Market participants are often slow to fully acknowledge high ROICs, which we consider an important share price driver. This failure on the part of the market creates opportunities for stock pickers like us.

We use systematic screening as well as fundamental research to spot portfolio candidates with:

• above-average quality in terms of ROIC, industry positioning and ESG
• above-average growth
• below-average valuation

Profitable companies with a superior industry position are able to invest into future growth – and their stocks often reflect this. Moreover, such leaders tend to stay leaders.

Investment philosophy – the leader takes it all

The investment philosophy is based on the belief that selecting the right companies drives performance over the long term. We are bottom-up stock pickers and use a rigorous investment framework to identify attractively valued industry leaders. Those companies offer consistently high returns on invested capital, a strong industry position and effectively address ESG issues.

Investment team

Our experienced portfolio managers Thomas Schaffner and Raphael Lüscher are responsible for our mtx offering. As true ambassadors for the cause, they are invested themselves in the funds they manage. They can draw upon a capable team of analysts providing comprehensive fundamental research, including quantitative and ESG analyses. In addition to the company-specific risk metrics, the team also keeps a close eye on the risk aspects related to business cycles and portfolio characteristics.