Investment Strategy
Berenberg Euro Target 2028 is a fund investing in a broadly diversified portfolio of fixed-income securities, predominantly maturing in 2028. For this purpose, the fund invests primarily in EUR-denominated bonds. Foreign currency risks are hedged. The bonds are selected taking into account fundamental aspects as well as risk/return and sustainability-related criteria. Most of the issuers have an investment grade rating. The strategy pursues a buy-and-maintain approach combined with ongoing risk management.
- Broadly diversified EUR bond portfolio with calculable return opportunities.
- 100% repayment of bonds is targeted.
- Annual distribution of income through the collection of interest coupons.
- Added value through active management and individual fundamental analysis.
- The aim is to generate an attractive return in line with the market environment.
- The investment horizon is until 30/06/2028.
- Redemptions before maturity is possible at any time. A redemption fee of 0.5% will be charged. This is added to fund assets to protect existing investors.
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | DE000A3D06G2 |
|---|---|
| WKN | A3D06G |
| Inception date | 17.04.2023 |
| Issue price (23.04.2024) | 108.27 EUR |
| Redemption price (23.04.2024) | 104.59 EUR |
| Fund volume | 27.81 Mio. EUR |
| Share class volume | 10.52 Mio. EUR |
| Currency | EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Gesellschaft mbH |
| Custodian | BNP Paribas S.A. Niederlassung Deutschland |
| Use of income | Distributing |
| End of financial year | 31.12. |
| Registration and Distribution | DE |
| SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 8 |
Costs
| Issue surcharge | Up to 3.00% |
|---|---|
| Flat-rate fee p.a. | 0.95% |
| Total Expense Ratio (TER) p.a. | 0.98% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| Broadly diversified EUR bond portfolio with calculable return opportunities. | Price fluctuations due to changes in market interest rates are possible |
| 100% repayment of bonds is targeted. | Temporary price declines due to credit rating downgrades are possible |
| Annual distribution of income through the collection of interest coupons. | The strategy invests in high yield bonds that have a lower credit rating |
| Added value through active management and individual fundamental analysis. | Investors may not get back all of their invested money |
| The aim is to generate an attractive return in line with the market environment. | There is no guarantee that the return target will be achieved |
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Indexed performance
Performance in 12-month periods
Monthly performance
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | - | - | - | -89.97 | 0.01 | -0.26 | 1.38 | 0.26 | -0.58 | 0.39 | 2.43 | 2.64 | -89.33 |
| 2024 | 0.27 | -0.66 | 1.04 | - | - | - | - | - | - | - | - | - | 0.35 |
Source: Berenberg, Management company
The charts and tables regarding performance shown here are based on own calculations according to the method developed by the German Investment Funds Association (BVI). They illustrate past performance. Future performance can deviate both positively and negatively from these calculations. Gross performance (BVI method) takes into account all charges at fund level (e.g. management fee), net performance plus the issue surcharge. Additional charges can arise for individual investors (e.g. custody account fees, commissions and other fees). Model calculation (net): An investor wants to purchase fund units for EUR 1,000 EUR. Considering a max issue surcharge of 3.00% he has to payEUR 30.00 for the purchase. Also, fees may be charged for the administration of the safe custody account, which will lower the performance. Past performance is not a reliable indicator of future performance.
Performance after issue surcharge
| 1 year | 7.38% |
|---|---|
| since inception | -89.29% |
Source: Berenberg, Management company | State: 23 Apr 2024
Risk figures
| Volatility - 1 year | 3.28% |
|---|---|
| Maximum Drawdown - since inception | -90.07% |
Currencies
Sectors
Countries
Asset classes
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 friendlier compared to the start of the year, with the yield on 5-year Bunds falling by 12 basis points to close at 2.31%. The risk premiums for 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.
Consideration of ESG Elements
The fund takes into account sustainability-related criteria in accordance with Article 8 of the SFDR Classification.
Identifying companies and business models that will be successful in the long term is the basis for good investment decisions. Environmental, Social and Governance (ESG) factors are key factors in decision making and are therefore integral
components of the investment process.