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
Fund data
ISIN | DE000A1C2XK8 |
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WKN | A1C2XK |
Inception date | 04.10.2010 |
Issue price (22.04.2024) | 76.96 EUR |
Redemption price (22.04.2024) | 74.72 EUR |
Fund volume | 15.54 Mio. EUR |
Share class volume | 4.75 Mio. EUR |
Currency | EUR |
Minimum investment | - |
Asset Manager | Joh. Berenberg, Gossler & Co. KG |
Management company | Universal-Investment-Gesellschaft mbH |
Custodian | BNP Paribas S.A. Niederlassung Deutschland |
Use of income | Distributing |
End of financial year | 31.12. |
Registration and Distribution | DE, AT |
SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 8 |
Costs
Issue surcharge | Up to 3.00% |
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Flat-rate fee p.a. | 1.30% |
Total Expense Ratio (TER) p.a. | 1.39% |
Performance fee | none |
Chances and risks
Chances | Risks |
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High return potential and current income from coupon collection | The fund is subject to general market risk |
Attractive growth prospects in emerging markets | Increased price fluctuations and risk of loss or default possible when investing in emerging markets |
Possible additional income through security analysis and active management | Increased price fluctuations and default risks possible with high-yield investments and investments with increased credit risks |
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 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2014 | -1.22 | 3.82 | 1.19 | 1.72 | 3.53 | 0.35 | 0.09 | 1.01 | -2.96 | 2.24 | 1.16 | -0.67 | 10.54 |
2015 | 3.27 | 0.28 | -0.48 | -0.22 | -0.69 | -2.23 | 0.20 | -1.46 | -1.90 | 2.95 | -0.78 | -1.82 | -3.00 |
2016 | 0.71 | 1.18 | 3.21 | 1.44 | -0.53 | 3.86 | 1.89 | 1.44 | -0.23 | -1.37 | -4.89 | 1.29 | 7.98 |
2017 | 1.09 | 1.70 | 0.01 | 1.12 | 0.62 | -0.41 | 1.19 | 1.71 | -0.26 | 0.54 | 0.23 | 0.57 | 8.39 |
2018 | -0.44 | -2.34 | -0.40 | -2.20 | -1.11 | -3.72 | 2.77 | -3.57 | 1.66 | -2.88 | -2.11 | 0.19 | -13.45 |
2019 | 4.27 | 1.13 | 1.57 | -0.39 | -0.44 | 4.12 | 1.30 | 0.42 | -1.77 | -0.29 | -0.45 | 2.36 | 12.28 |
2020 | -0.02 | -1.61 | -10.49 | 1.83 | 5.84 | 3.32 | 3.45 | 0.03 | -2.42 | 1.32 | 4.61 | 2.35 | 7.41 |
2021 | -0.97 | -1.03 | -1.57 | 2.14 | 1.07 | -0.51 | -1.12 | 1.06 | -2.41 | 0.25 | -3.42 | 1.98 | -4.60 |
2022 | -1.76 | -3.10 | 3.26 | -5.16 | -0.33 | -9.04 | 1.42 | 1.02 | -6.33 | 3.03 | 8.49 | -1.01 | -10.26 |
2023 | 3.02 | -1.49 | -2.14 | -0.61 | 0.14 | 2.50 | 2.72 | -2.65 | -3.43 | -1.73 | 6.62 | 6.34 | 9.00 |
2024 | -1.89 | 0.19 | 1.86 | - | - | - | - | - | - | - | - | - | -1.77 |
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 | 9.58% |
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3 years | -7.39% |
5 years | 3.33% |
since inception | 32.36% |
Max. Drawdown 5 years | -23.86% |
Source: Berenberg, Management company | State: 22 Apr 2024
Risk figures
Volatility - 1 year | 7.66% |
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Volatility - 3 years | 8.94% |
Sharpe Ratio - 3 years | -0.42 |
Maximum Drawdown - since inception | -23.86% |
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.