The Berenberg Floating Rate Notes fund invests in floating and near-money market fixed-income securities with an average duration of up to 0.5 years. The fund’s investment objective is to achieve stable and attractive returns. It invests in the defensive bond segments of government bonds, government-guaranteed bonds and investment grade covered bonds as well as unsecured bonds with a minimum rating of A-. The fund thus complies with the strict investment criteria for social insurance institutions set by the SGB IV.
- SGB IV-compliant euro bond fund with very short interest rate duration
- Individual securities are selected on the basis of a benchmark
- Average duration is between 0 and 0.5 years
- Investment segments include (quasi) government bonds and unsecured bonds
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Performance in 12-month periods
Monthly market comment
Inflation remains on an elevated level and, thus, continues to be one of the central driving forces in markets. The ECB again raised its key interest rate in October by 75 BPS. However, the risk for the economy were also highlighted, indicating smaller interest rates steps going forward. Moreover, also the Fed is expected to announced another 75 BPS hike in early November. Overall, the trend for higher interest rates continued leading to a 3-month Euribor currently marked at 1.64%, the highest level since 2009. By contrast, risk premiums for corporate bonds fell in October. Despite an increase in activity on primary markets, new issue volumes in October were again lower than in the same month a year earlier.
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.
Christian Bettinger, CFA, has been with the company since June 2009. As fund manager of the mutual funds Berenberg Euro Bonds and Berenberg Credit Opportunities, he is responsible for the selection of corporate bonds in the Multi Asset area. After apprenticeship as a banker and studying business administration at the Catholic University of Eichstaett-Ingolstadt, he first went through the trainee program at Berenberg. In February 2010, the business graduate was taken over early as a junior fund manager with a focus on derivatives and fixed income. Bettinger is a CFA-Charterholder, Certified Financial Engineer (CFE) and admitted Eurex trader.