The Emerging Markets: From an "exotic peripheral investment" to a global mega trend

 A new fund with an exciting investment focus has been available for subscription since the beginning of June:

Raiffeisen-EmergingMarktes-LocalBonds gives investors the opportunity to leverage the global emerging markets mega trend and the new investment class of local-currency bonds to their long-term advantage.

“The rise of the emerging markets is the global economic mega trend of the 21st century – and we are just at the beginning of both of these developments,” said Mathias Bauer, Chief Executive Officer of Raiffeisen Capital Management. “Raiffeisen-EmergingMarkets-LocalBonds” is one of the first funds of its kind to give investors the opportunity to profit from the new asset class of local-currency bonds over the long term.” The fund invests exclusively in local-currency bonds, whereby the investment universe ranges from government and corporate bonds from the emerging markets all the way to supranational bonds. There are no rating restrictions. The emerging markets currencies are profiting from the long-term economic and political globalisation process as well as from the fact that international investors are seeing these markets as less and less risky. As a result of globalisation, especially Asia’s and Eastern Europe’s emerging economies are producing finished goods for the industrialised countries, while the Latin American and African economies are based largely on the extraction and export of raw materials. This flow of goods and materials into the industrialised countries is accompanied by the flow of large amounts of capital, especially US dollars but also euros, into the emerging markets, where it is converted into local currencies. This in turn causes a high level of demand for local currencies, and causes these currencies to appreciate in value. This long-term appreciation process is also supported by comparatively high rates of economic growth, current account surpluses and the significantly better debt situations of the emerging countries.

Funds for knowledgeable investors with a long-term orientation

The “Raiffeisen-EmergingMarkets-LocalBonds” is targeted at earnings-oriented investors with experience in securities, and are especially ideal for inclusion in an existing portfolio. The minimum recommended investment horizon is eight years. Please ask your advisor for more detailed information!