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
Performance in 12-month periods
Monthly market comment
Once again, the central banks were at the center of market activity. On the other side of the Atlantic, the Fed raised the key interest rate very significantly by 75 basis points to 2.25-2.50 percent. The fight against the very high inflation is therefore the primary goal of the Fed. In Europe, the ECB hiked interest rates by 50bps and created a new asset purchase program. The deposit interest rate is now zero percent and negative interest rates are history. In particular, the risk premiums on Italian government bonds benefited from the announcement of the new purchase program. 2-year federal bonds marked a highly volatile course, while the risk premiums of 1-3-year corporate bonds narrowed constantly. The 3-month Euribor rose around 43bps to 0.232%.
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).
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.