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
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
The consolidation of the European bond markets following the rally in the last quarter of the previous year continued in February. This was mainly due to positive economic data from most European countries, while the core inflation rate in the eurozone remained above the ECB's target of 2.8% in January. As a result, a rate cut in April is now considered much less likely, with the June date receiving more focus instead and the 2-year Bund rising by 44 basis points to 2.9%. The trend towards new issues is also continuing. The volume of new issues in February was well above the level of previous years, with the industrial sector in particular issuing heavily. Nevertheless, risk premiums for corporate bonds tightened further, particularly in the high-yield segment, where the spread closed 39 basis points tighter.
Portfolio Management
Felix Stern
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.