Christoph Hott

“In our fund selection process we make a distinction between actively managed funds and ETFs – depending on the underlying market. In emerging markets, we see that outperformance is possible. One major exception is the Latin America region. Due to the enormous weighting of Petrobras, more than 15 per cent of the MSCI Latin America, active funds under UCITS III rule cannot track the index. In times when Petrobras beats the broader market index, most of the active LatAm funds underperform – and vice versa. Thus for this region, we prefer an index ETF to keep the active risks under control.”