Investment Strategy
The Berenberg Euro Enhanced Liquidity fund invests in variable and fixed-interest bonds, primarily from European issuers with short and medium maturities and investment grade creditworthiness (rating of AAA to BBB-, based on Standard & Poor's classification). The aim of the strategy is to achieve stable and attractive returns above those of money market investments. Bonds are selected based on a quantitative investment process, which is supplemented by opportunistic, discretionary management decisions. The duration is actively and dynamically managed and ranges between 0 and 2 years.
- Euro bond fund with short duration and active management approach
- Individual securities are selected on the basis of a benchmark
- Average duration is between 0 and 2 years
- Investment segments are primarily government bonds, covered bonds as well as corporate and financial bonds
Learn more about our Berenberg Fixed Income investment philosophy
Indexed performance
Performance in 12 month
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
After the challenging previous month, there was a conciliatory end to the year in the Corporates segment in December 2021. The risk premiums fell by 11 basis points over the course of the month. Whereas the returns on short-term risk-free interest rates rose significantly. The yield on 5-year Bunds rose by 0.16 percentage points to -0.45%. Decreasing concerns about the Omicron variant of the corona virus in combination with high inflation figures from the Euro Zone and positive US economic data spurred this development. Regardless of the improved market conditions, primary markets almost came to a standstill for seasonal reasons. Overall, the Berenberg Euro Enhanced Liquidity was able to benefit from the positive market development.
Portfolio Management
Felix Stern joined the Asset Management division of Berenberg in 2000 as a fixed income portfolio manager. Currently he is heading the fixed income selection team within the Asset Management and is responsible for institutional mandates. As a senior portfolio manager he is responsible for the selection of corporate and financial bonds as well as short-term bond market investments. He is also the lead manager for several of Berenbergs institutional mutual funds. Prior to joining Berenberg, he worked several years for the Market Research department of British American Tobacco, Germany. Felix is a CCrA - Certified Credit Analyst (DVFA) and also has a German Diploma in business economics from the Fernuniversität in Hagen.
Daniel Fuchs, FRM, joined Berenberg in 2009. Within the fixed income selection team he is specialized for the selection of government and corporate bonds. He has more than 12 years experience with fixed income and equity strategies for portfolio management. Previously, he worked at Steubing Derivatives Brokerage and Independent Derivatives Consulting AG in 2005, where he was responsible for trading and portfolio management of structured products. Daniel has a master’s degree in economics with focus on statistics/econometrics and international financial markets from the University of Constance. He is a certified EUREX trader and Financial Risk Manager (FRM).
