Investment Strategy
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
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | LU0636630005 |
|---|---|
| WKN | A1JBQ7 |
| Inception date | 28.07.2011 |
| Issue price (25.05.2023) | 119.39 EUR |
| Redemption price (25.05.2023) | 115.91 EUR |
| Fund volume | 63.36 Mio. EUR |
| Share class volume | 15.23 Mio. EUR |
| Currency | EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Luxembourg S.A. |
| Custodian | State Street Bank International GmbH, Luxembourg Branch |
| Use of income | Accumulating |
| End of financial year | 31.12. |
| Registration and Distribution | DE, CH, LU |
| SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 8 |
Costs
| Issue surcharge | Up to 3.00% |
|---|---|
| Management fee p.a. | 1.00% |
| Custodian fee p.a. | 0.06% |
| Total Expense Ratio (TER) p.a. | 1.22% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| Attractive return potential over the medium to long term | Bonds are susceptible to fluctuations, price losses possible |
| Above-average performance by exploiting various value drivers of the bond market | Unit value may fall below the purchase price at which the client acquired the unit |
| Possible additional income through active and opportunistic management | No guarantee of success due to active and opportunistic management |
| Generation of attractive distributable income |
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Indexed performance
Performance in 12-month periods
Monthly performance
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2013 | -0.29 | 0.42 | 0.05 | 1.17 | 0.21 | -1.58 | 0.81 | -0.28 | 0.49 | 0.92 | 0.26 | 0.22 | 2.40 |
| 2014 | 0.02 | 0.65 | 0.31 | 0.46 | 0.30 | 0.44 | 0.27 | -0.10 | 0.04 | 0.35 | 0.63 | 0.22 | 3.63 |
| 2015 | 0.67 | 0.77 | -0.45 | -0.08 | -0.14 | -1.40 | 0.73 | -0.49 | -1.85 | 1.34 | 0.37 | -0.66 | -1.21 |
| 2016 | -0.98 | -0.01 | 1.58 | 0.86 | -0.31 | -0.30 | 1.35 | 0.43 | -0.66 | 0.11 | -0.88 | 0.27 | 1.43 |
| 2017 | 0.14 | 0.69 | -0.29 | 0.41 | 0.20 | 0.35 | 0.59 | -0.13 | 0.46 | 0.91 | -0.08 | 0.11 | 3.40 |
| 2018 | 0.36 | -0.76 | -0.63 | 0.14 | -1.61 | -0.87 | 1.36 | -0.69 | 0.53 | -1.08 | -1.65 | -0.75 | -5.56 |
| 2019 | 1.73 | 1.23 | 0.18 | 1.28 | -0.57 | 1.16 | 0.66 | -0.33 | 0.68 | 0.68 | 0.71 | 1.00 | 8.71 |
| 2020 | 1.02 | -0.69 | -11.69 | 3.49 | 2.10 | 2.94 | 1.18 | 1.52 | 0.32 | 0.41 | 3.56 | 1.04 | 4.33 |
| 2021 | 0.62 | 0.57 | 0.39 | 1.13 | 0.08 | 0.69 | 0.31 | 0.34 | 0.25 | -0.47 | -0.27 | 0.37 | 4.07 |
| 2022 | -0.82 | -3.55 | -0.91 | -1.80 | -1.62 | -4.81 | 1.69 | -0.83 | -3.99 | -0.29 | 2.95 | -0.16 | -13.51 |
| 2023 | 2.83 | 0.23 | -2.14 | 0.70 | - | - | - | - | - | - | - | - | 1.69 |
Source: Berenberg, Management company
The charts and tables regarding performance shown here are based on own calculations according to the method developed by the German Investment Funds Association (BVI). They illustrate past performance. Future performance can deviate both positively and negatively from these calculations. Gross performance (BVI method) takes into account all charges at fund level (e.g. management fee), net performance plus the issue surcharge. Additional charges can arise for individual investors (e.g. custody account fees, commissions and other fees). Model calculation (net): An investor wants to purchase fund units for EUR 1,000 EUR. Considering a max issue surcharge of 3.00% he has to payEUR 30.00 for the purchase. Also, fees may be charged for the administration of the safe custody account, which will lower the performance. Past performance is not a reliable indicator of future performance.
Performance after issue surcharge
| 1 year | -3.57% |
|---|---|
| 3 years | 3.60% |
| 5 years | 0.09% |
| since inception | 15.91% |
| Max. Drawdown 5 years | -16.76% |
Source: Berenberg, Management company | State: 25 May 2023
Risk figures
| Volatility - 1 year | 4.11% |
|---|---|
| Volatility - 3 years | 3.23% |
| Sharpe Ratio - 3 years | 0.35 |
| Maximum Drawdown - since inception | -16.76% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
Persistently high core inflation in the eurozone coupled with recently weaker economic data led to a sensitive balance in the European rates markets. Despite a number of volatile trading days, no sustained impulse was felt in bond markets. Investors are still pricing in up to three further interest rate hikes by the ECB. In this context the 10-year Bund yield rose marginally to 2.31%. Early in the month major banks reported strong quarterly results, which coupled with the reassuring figures published by the European banking regulator supported the positive performance in financial bonds. However, the worsening problems at the U.S. regional bank First Republic Bank clouded the market’s mood significantly by the end of the month. On a monthly basis, spreads of investment grade corporate bonds (-7bp) narrowed slightly, while those of high yield (+25bp) bonds widened significantly.
Portfolio Management
Christian Bettinger
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.
