Fund in focus

Berenberg Guardian
The guardian in the portfolio


In times of heightened uncertainty and inflation volatility, investors are looking for diversifying investments. One way to benefit from this challenging environment is the Berenberg Guardian Absolute Return Fund. It is aimed at investors looking for chances to earn returns through interest income, hedging and tactical opportunities, especially in falling markets. The fund aims to help investors diversify their equity investments.

A new paradigm in investment strategy

The Berenberg Guardian is an actively managed absolute return fund. It is aimed at investors seeking return opportunities through interest income, hedging and tactical opportunities, particularly in falling markets.

The fund combines fundamental and macroeconomic analyses with quantitative models in a discretionary investment approach. It is intended to help investors diversify their equity investments. The strategy aims to achieve a positive return with low drawdowns and low volatility over 12-month periods, a negative correlation to falling stock markets and a low correlation to ‘normal’ stock markets. These targets correspond to the needs of investors seeking steady returns, protection from market downturns and the potential for profit when opportunities arise.

In line with a changing market environment

The strategy of the Berenberg Guardian is in line with the changing landscape of financial markets. Higher bond returns and the increasing correlation between risky investments and safe government bonds have reduced diversification effects. The growing share of non-fundamental and pro-cyclical investors (e.g. passive investing, systematic investment strategies) leads to increased market volatility and more extreme market movements, which makes the approach of the Berenberg Guardian Fund increasingly relevant.

What is the aim of the strategy in different market situations?

Falling stock markets

Negative correlation in falling stock markets

Sideways and rising stock markets

Steady returns and no or small losses (depending on the level of interest rate)

Combination of three pillars

Interest income

The focus is clearly on hedging. Interest income is generated with high-quality government and investment-grade corporate bonds with short maturities (carry).


The interest income serves as a source of financing for hedging instruments, especially put strategies on liquid share indices (hedges). Daily screening is carried out to determine which equity hedges are favourable in absolute terms and also in comparison to the investor's own history.

Tactical opportunities

The third pillar, tactical opportunities, is only used in the event of strong market distortions and market inefficiencies. Investors are thus provided with an investment solution that enables them to navigate both calm and turbulent financial waters.


  • High diversification factor due to intended positive returns in loss years with negative correlation to falling stock markets.

  • Protection and source of liquidity in diffcult market phases and cost-effcient opportunistic hedging.

  • Addressing short-term market opportunities and market ineffciencies.

Good reasons for investing

The Berenberg Guardian Fund is a forward-looking investment strategy that reflects the realities of today’s global financial markets. Its hedging approach, the objective of exploiting market distortions and its harmonious three-pillar approach make it a compelling option for investors. In addition to the changing market environment, the intended negative correlation with falling stock markets speaks in favour of the fund. Traditional diversification often works poorly in times of crisis because correlations often increase. Therefore, investments that are negatively correlated in crises are particularly valuable. Large temporary losses disproportionately damage a portfolio in the long term, even if they are later recovered. Such high losses make it very diffcult to achieve attractive returns over long periods of time.

Why choose Berenberg?

Berenberg offers global strategies with an asset management character as well as modern, opportunistic approaches. Through our flexible and active management approach, our experienced managers identify a variety of opportunities and implement them consistently, risk-consciously and in an opportunity-driven way in the interests of our investors. The risk management of portfolio managers has proven itself many times over in the past.

Your contact

Ulrich Urbahn
Head of Multi Asset Strategy & Research
Ludwig Kemper
Multi Asset Strategy & Research
Philipp Loehrhoff
Head of Multi Asset Solutions
Isabell Silverio
Product Specialist Multi Asset
Phone +49 69 91 30 90-598

Berenberg Guardian

Attractive return potential in the medium to long term. High volatility of equities, riskier bonds and currencies, possible price losses.
Above-average performance by exploiting investment opportunities across regions and investment classes, focusing on attractive market segments and structural investment topics. Share value may fall below the purchase price at which the customer purchased the share.
Potential additional returns through active and opportunistic management. No guarantee of success through active and opportunistic management.
Closing index and currency futures for quota management may at least temporarily increase the risk of loss.