Investment Strategy
The Berenberg EM Bonds fund uses an active investment process to invest in attractive government and quasi-sovereign bonds from emerging markets that offer above-average return potential compared to traditional EUR fixed income investments. Using a combination of systematic and discretionary components in the investment process, the fund manager selects bonds from fundamentally convincing emerging markets or government-related companies for the portfolio. The investment strategy is underpinned by ongoing country risk management and active interest rate duration management. The foreign currency risk is generally hedged.
- Fundamental investment approach in government and quasi-sovereign bonds from Emerging Markets with active duration management
- Active positioning against a market benchmark
- Average duration is between 0 and 10 years
- Investment segments are primarily (quasi) government bonds in hard currencies
Learn more about our Berenberg Fixed Income investment philosophy
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Indexed performance
Performance in 12-month periods
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
In March, the volatility in yield decreased sharply, supported by dovish signals from the FOMC meeting, positively affecting market sentiment. The emerging market sovereign bonds also benefited from an improved investment climate. Similar to the previous month, the positive performance was driven by the segment with lower ratings. While the spreads in the high-yield segment tightened by about 50 basis points, the tightening in the investment-grade segment was only 7 basis points. The Berenberg EM Bonds Fund also demonstrated strong performance, even with the restriction of not investing in ratings lower than B-. Throughout the month, the allocation to long-dated bonds was reduced, while the investment quota in Eastern Europe was increased.