Investment Strategy
The Berenberg EM Local Bonds fund pursues a global (ex-euro) bond strategy in local currencies that invests in both developed and emerging market bonds and actively manages the weighting of the two segments relative to each other depending on their relative attractiveness. Its primary objective is to benefit from the yield advantage of foreign currency bonds over euro investments and the appreciation of (foreign) currencies against the euro. Using a systematic investment approach, the economically strongest countries are selected, taking into account fundamental, momentum and sentiment indicators. The duration is actively managed at the country level and is generally in the short- to medium-term maturity range.
- Global investment strategy in local currency bonds (ex EUR)
- Active positioning against a market benchmark
- Average duration is between 2 and 5 years
- Investment segments are mainly (quasi) government bonds in local currency
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | DE000A1JUU12 |
|---|---|
| WKN | A1JUU1 |
| Inception date | 11.05.2012 |
| Issue price (29.04.2025) | 76.95 EUR |
| Redemption price (29.04.2025) | 74.71 EUR |
| Fund volume | 91.24 Mio. EUR |
| Share class volume | 7.39 Mio. EUR |
| Currency Fund / Share Class | EUR / 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 |
| SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 8 |
Costs
| Issue surcharge | Up to 3.00% |
|---|---|
| Flat-rate fee p.a. | 1.10% |
| Total Expense Ratio (TER) p.a. | 1.14% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| Asset preservation, primarily achieved through interest income, dividends and price gains | Substantial fluctuations in value and significant price losses possible |
| Stabilization of assets in negative capital market phases through professional risk management and intelligent diversification | Currency losses due to exchange rate fluctuations |
| Improvement of the risk/return profile through active management across all bond segments | Limited participation in positive performance of individual bond segments due to broad diversification and negative selection effects in individual security and fund selection |
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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 6.37 | 0.59 | 3.32 | -2.86 | 0.02 | -2.48 | -0.58 | -4.10 | 0.18 | 3.09 | 2.94 | -3.65 | 2.30 |
| 2016 | -0.25 | 0.41 | 0.38 | 1.35 | -0.37 | 2.38 | 0.27 | 0.44 | 0.32 | 1.03 | -1.34 | 0.74 | 5.44 |
| 2017 | 0.16 | 2.65 | 0.28 | -0.81 | -1.09 | -0.46 | -0.87 | 0.50 | -0.44 | 0.42 | -1.53 | 0.47 | -0.78 |
| 2018 | -1.27 | 0.19 | -0.68 | -0.03 | 1.47 | -2.25 | 0.32 | -2.46 | 1.13 | 1.61 | 1.97 | -0.16 | -0.29 |
| 2019 | 2.98 | 0.24 | 0.67 | -0.14 | 0.49 | 1.96 | 2.34 | -0.27 | 1.61 | -0.74 | 0.65 | 0.58 | 10.82 |
| 2020 | 0.38 | -1.51 | -5.12 | 3.54 | 1.32 | 0.73 | -2.35 | -0.96 | 0.52 | 0.63 | 2.09 | -0.34 | -1.33 |
| 2021 | 0.01 | -1.84 | 0.29 | -0.50 | 0.02 | 1.76 | -0.64 | 1.06 | -0.92 | -0.05 | -0.57 | 0.04 | -1.38 |
| 2022 | 0.11 | -1.24 | 0.49 | -0.38 | 0.44 | -2.60 | 3.22 | -0.31 | -3.16 | -1.29 | 1.57 | -2.57 | -5.74 |
| 2023 | 1.97 | -1.40 | 1.23 | -0.94 | 2.19 | 0.49 | 0.86 | -0.78 | 0.18 | -0.74 | 1.73 | 2.31 | 7.25 |
| 2024 | -0.65 | -0.81 | 0.26 | -2.00 | 0.32 | -0.21 | 1.04 | -0.49 | 1.89 | -2.72 | 2.05 | -0.74 | -2.14 |
| 2025 | 1.58 | 0.45 | -2.93 | -1.97 | - | - | - | - | - | - | - | - | -2.91 |
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 | -2.20% |
|---|---|
| 3 years | -2.97% |
| 5 years | -4.17% |
| since inception | 8.67% |
| Max. Drawdown 5 years | -9.18% |
Source: Berenberg, Management company | State: 29 Apr 2025
Risk figures
| Volatility - 1 year | 5.86% |
|---|---|
| Volatility - 3 years | 6.20% |
| Sharpe Ratio - 3 years | -0.57 |
| Maximum Drawdown - since inception | -14.14% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
Political events dominated the EM local currency markets in March. The arrest of the Turkish mayor of Istanbul greatly unsettled investors, causing the currency to lose value due to capital flight and interest rates at the short end to rise sharply. Although the situation calmed somewhat over time, it remained tense, causing Turkish bonds to fall sharply in value in March. For European investors in EM local currency bonds, however, the announcement by the German government regarding a significant increase in government spending was the dominant market theme, as the rise in German government bonds by a peak of 50 bp boosted the euro by several percentage points, causing emerging market currencies to lose a total of 2% against the euro. Driven by the strong euro and the sell-off of Turkish bonds, the fund lost around 2.8% in March. Over the course of the month, portfolio management reduced the risk by reducing the proportion of high-yield currencies and at the same time increasing the proportion of Eastern European currencies, as these are most likely to benefit from a strong euro.
Portfolio Management
Wei Lon Sung
Wei Lon Sung has worked in fixed income portfolio management at Deka Investment since 2018, with a focus on emerging markets. He joined Berenberg in 2023 and contributes his expertise in the fundamental selection of emerging market bonds in local and hard currencies. He holds a Bachelor and Master of Science in Mathematics from Goethe University Frankfurt.
Sebastian Burbank
Sebastian Burbank has been with the company since October 2024. Before joining Berenberg, he worked for 3 years at Deka Investment as a portfolio manager for global bonds and currencies. He focused in particular on local and hard currency bonds in the emerging markets. He holds a Master's degree in Finance from Goethe University in Frankfurt am Main and a Bachelor's degree in Economics from the University of Essen.
