Top European Ideas Fund
MainFirst Top European Ideas Fund is designed as a European equity fund. It invests in promising companies that are expected to generate earnings growth thanks to solid balance sheets, high levels of profitability and forward-looking management. The investment decision is based on an in-depth fundamental analysis – with no sector or country restrictions. The aim is to outperform the benchmark index in the long term thanks to a combination of active management and successful stock picking.Learn more
MainFirst – Top European Ideas Fund
More about the fund
MainFirst Top European Ideas Fund invests in promising European companies. To qualify for selection, companies need to have solid balance sheets, high levels of profitability and far-sighted management. The investment decision is based on an in-depth fundamental analysis and a calculation of the company’s fair value. This can include both companies with large market capitalisation and small or mid-cap companies. Investments are made with no sector or country restrictions.
Extensive fundamental analyses are performed before the stocks are picked. The fund management team puts the company concerned and its management under the microscope and calculates the fair value of the stock. A flexible blend approach is adopted, i.e. long-term investments are made in core stocks in order to benefit from revaluations and the growth potential of undervalued companies, while at the same time taking the current economic situation into account in order to be able to act flexibly. Thanks to a combination of this active manage Top European Ideas Fund has almost consistently outperformed the STOXX Europe 600 (Net Return) EUR (Performance Index) benchmark index since its launch.
MainFirst is committed to the Principles for Responsible Investment (UNPRI) for all investments.
ESG risk analysis
For us, sustainable investing means incorporating ESG risks as a key aspect of the investment process into our investment decisions. During this process, the companies in the MainFirst Top European Ideas Fund are also checked for existing ESG risks using the database of the external rating agency Sustainalytics. This is primarily a qualitative process.
We engage in an active dialogue with the representatives of the companies in our portfolio positions. This facilitates a constructively critical exchange on strategic and sustainability-oriented topics. Through this commitment, we aim to achieve an improvement in the ESG profile at company level. Companies with serious risks ("Severe Risk") are assessed separately and their management is approached individually to remedy and improve the relevant issues. For us, this also includes actively exercising voting rights and carrying out regular performance reviews.
SECTOR EXCLUSIONs (PRODUcT ENGAGEMENT)
In addition, the fund management team wants to make the world a better place by actively investing sustainably. Therefore, we strengthen the sustainability approach of the MainFirst Top European Ideas Fund by excluding other sectors:
The exclusion of companies that do not meet the criteria of human rights, labour rights, environment or anti-corruption according to the Global Standards of the UN Global Compact is also a basic requirement of the investment.
Our goal is to create verifiable transparency with science-based climate impact analyses. Together with the climatrics provider right. based on science GmbH, the economic and ecological aspects of decarbonisation are combined in a tangible and meaningful degree figure for this purpose.
With a view to the goals of the Paris Climate Agreement, right. based on science calculates the contribution of the portfolio and the benchmark to climate change (global warming).
Accordingly, the MainFirst Top European Ideas Fund contributes 1.0 °C (as of 01.01.2021) less to global warming than its benchmark STOXX EUROPE 600 (Net Return) EUR and thus confirms its ecological claim.