Investment Strategy
Berenberg Financial Bonds is a benchmark-independent, flexible fixed income fund with an investment focus on financial bonds and a regional focus on Europe. The aim of the investment strategy is to generate both an attractive return and steady coupon income by investing across the entire capital structure. In the medium term, the aim is to develop a total return character. In order to identify attractive opportunities and market inefficiencies, the fund management utilises a broad and flexible toolbox from the entire capital structure. The focus is on fundamental analysis and single bond picking. Interest rate, credit and currency risks can be actively managed through the use of derivatives.
- Diversified and flexible financial bond portfolio focussing on European issuers
- The fund operates independently of benchmarks
- Targeted reduction of volatility and drawdowns through a maximum AT1 ratio of 30% and exclusion of CCC-rated bonds
- Wide range of instruments includes individual bonds, funds and derivatives
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
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Top Holdings
Monthly market comment
US President Donald Trump's announcement that he would impose punitive tariffs on the EU from August 1, 2025, brought new momentum to the negotiations. Ultimately, the EU and the US agreed on a tariff rate of 15% for goods from the EU. In addition, the EU committed to investing in the US and purchasing energy worth EUR 750 billion from the US. The capital markets had already anticipated an agreement. As a result, credit risk premiums fell significantly, reaching their lowest level in five years. In contrast, German government bond yields rose, partially pricing in economic risks. Seasonally, there was a decline in new issuance activity in July. However, at almost EUR 40 billion, the volume was higher than in July 2024. Once again, many US companies were active, taking advantage of the refinancing benefits in euros.
Portfolio Management
Christian Bettinger
Christian Bettinger has been with the company since June 2009 and heads the Portfolio Management Fixed Income department. As fund manager of the mutual funds Berenberg Euro Bonds and Berenberg Financial Bonds, he is responsible for the selection of corporate bonds. He trained as a banker and then studied business administration at the Catholic University of Eichstätt-Ingolstadt. In 2010, the business graduate was taken on early from the Berenberg trainee program as a fund manager with a focus on derivatives and bonds. Bettinger is a CFA Charterholder, Certified Financial Engineer (CFE) and authorized Eurex trader.
Gerald Deutsch
Gerald Deutsch has been with the company since 2021. As fund manager of the mutual funds Berenberg Financial Bonds and Berenberg Euro Bonds, he is responsible for the selection of corporate bonds, with a focus on high-yield and financial bonds. As part of his graduate programme at Berenberg, he held various positions in discretionary equity and bond portfolio management, fixed income research and institutional fund sales in Germany and Switzerland. The CFA charterholder exited the Berenberg graduate program early in 2022 and became a portfolio manager with a focus on corporate credit. He holds a Master of Finance from the Frankfurt School of Finance & Management and a Bachelor of Psychology from the University of Kent.
