Silicon Valley exemplifies the successful implementation of new trends and the generation of consistent growth. Indeed, thanks to the successful development of product ideas, small start-ups can become global market leaders such as Alphabet, Amazon and Apple. The MainFirst Absolute Return Multi Asset utilises such structural trends, among others, as a foundation for its sustained performance. So that investors receive attractive returns.
From innovative trends to long-term developments
There are numerous interesting investment opportunities in Silicon Valley, which is home to a substantial number of extremely successful high-tech companies with innovative ideas. Well-known major players are Alphabet or Apple, but also the software company Adobe and graphics card specialist Nvidia.
Adobe (founded 1982) – famous for PDFs (Portable Document Format) and the corresponding Acrobat software – is one of the largest software companies worldwide, with sales of USD 5.9 billion in 2016 (according to their website). It is best known for its multimedia and creative software products (Creative Cloud, including Photoshop). The company grew by 22% in 2016, and prospects for 2017 are equally positive, with anticipated growth of 20% or more, according to Forbes. The primary focus of research is on making products more user-friendly through the incorporation of AI/deep learning.
The same is true of another successful Silicon Valley company: Nvidia (founded 1993). The manufacturer of graphics cards offers much more than GPUs for video games, for which it is renowned. The current main growth driver is the Datacenter Division, which has tripled its YoY sales to USD 830 million. Both here and in the GPU technology for self-driving cars, AI and deep learning are progressively developing as a key factor.
Two trends that are increasingly establishing themselves as long-term fundamentals are AI and deep learning, which thus serve as a basis for new developments. They help companies to position themselves more broadly and in this way to generate higher profits.
A diversified portfolio for future growth
The MainFirst Absolute Return Multi Asset invests in these and other structural trends, with the aim of achieving strong profit growth. To maintain a broad allocation, the mixed funds also include other investment classes such as bonds, currencies and commodities. Thanks to the possibilities offered by the flexible structure, the fund manager Adrian Daniel and his team can concentrate on the most promising individual classes in order to achieve sustained value development with an attractive risk and return structure.
The approach to the zero interest rate environment demonstrates how, depending on the market situation, weaknesses in one area can be absorbed by another, enabling a steady appreciation in value: low interest rates on bonds can be offset by a stronger weighting of equities in the portfolio. This is possible in particular because the actively managed fund incorporates above all stocks with high profit potential in the portfolio.