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
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Top Holdings
Monthly market comment
March began with an ECB meeting: while the probability of an interest rate cut was still just under 50% at the beginning of the year, it was clear after the meeting at the latest that this might not happen until the middle of the year. As usual, the Council members referred to the dependence on data. The most likely date for the first interest rate cut is currently June. Overall, March was somewhat more favourable compared to the start of the year, with the yield on 2-year German government bonds falling by 5 basis points to close at 2.83%, while risk premiums on European investment-grade corporate bonds narrowed by a further 6bp to 113, while the high-yield index widened by 14bp to 358 for the first time in months. However, this is only attributable to a few individual issuers, risk premiums have fallen across the board here too.
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.