Berenberg Credit Opportunities is a benchmark-independent, flexible bond fund investing in global corporate bonds - with a focus on Europe. The objective of the strategy is to achieve a medium to long-term performance comparable to the EUR High Yield, with less volatility and lower drawdowns. The focus is on fundamental analysis. To identify attractive opportunities and market inefficiencies, the fund management uses a broad and flexible toolbox. Interest rate, credit and currency risks can be actively managed using derivatives.
- Diversified and flexible global corporate and financial bond portfolio with focus on European issuers
- The fund operates independently of benchmarks
- Average duration is between 3 and 5 years
- Wide range of instruments including single stocks, funds and derivatives
Performance in 12-month periods
Monthly market comment
A second 75bp rate hike by the Fed was followed by the first in the Eurozone since 2011. The ECB decisively raised interest rates by 50bp, although in view of recession concerns the market expects smaller steps in the future. 10-year Bund yields nevertheless fell on the interest rate decision to ultimately 81Bp. In the face of political uncertainties, Italian government bonds experienced a renewed spread widening (10-year +32Bp) despite the announced ECB transmission protection instrument. Corporate bond spreads narrowed significantly, with investment grade and high yield regaining ground (-37Bp and -70Bp). The reasons for this included technical factors, such as low new issue volumes, low liquidity and inflows at least in the IG segment.
Christian Bettinger, CFA, has been with the company since June 2009. As fund manager of the mutual funds Berenberg Euro Bonds and Berenberg Credit Opportunities, he is responsible for the selection of corporate bonds in the Multi Asset area. After apprenticeship as a banker and studying business administration at the Catholic University of Eichstaett-Ingolstadt, he first went through the trainee program at Berenberg. In February 2010, the business graduate was taken over early as a junior fund manager with a focus on derivatives and fixed income. Bettinger is a CFA-Charterholder, Certified Financial Engineer (CFE) and admitted Eurex trader.