Investment Strategy
The Berenberg Global Bonds fund pursues a global (ex-euro) bond strategy in local currencies that invests in both developed and emerging market bonds and actively manages the weighting of the two segments relative to each other depending on their relative attractiveness. Its primary objective is to benefit from the yield advantage of foreign currency bonds over euro investments and the appreciation of (foreign) currencies against the euro. Using a systematic investment approach, the economically strongest countries are selected, taking into account fundamental, momentum and sentiment indicators. The duration is actively managed at the country level and is generally in the short- to medium-term maturity range.
- Global investment strategy in local currency bonds (ex EUR)
- Active positioning against a market benchmark
- Average duration is between 2 and 5 years
- Investment segments are mainly (quasi) government bonds in local currency
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | DE000A1JUU12 |
|---|---|
| WKN | A1JUU1 |
| Inception date | 11.05.2012 |
| Issue price (25.05.2023) | 85.31 EUR |
| Redemption price (25.05.2023) | 82.83 EUR |
| Fund volume | 109.98 Mio. EUR |
| Share class volume | 11.67 Mio. EUR |
| Currency | EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Gesellschaft mbH |
| Custodian | State Street Bank International GmbH |
| 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% |
|---|---|
| Management fee p.a. | 1.00% |
| Custodian fee p.a. | 0.05% |
| Total Expense Ratio (TER) p.a. | 1.16% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| Asset preservation, primarily achieved through interest income, dividends and price gains | Substantial fluctuations in value and significant price losses possible |
| Stabilization of assets in negative capital market phases through professional risk management and intelligent diversification | Currency losses due to exchange rate fluctuations |
| Improvement of the risk/return profile through active management across all bond segments | Limited participation in positive performance of individual bond segments due to broad diversification and negative selection effects in individual security and fund selection |
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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2013 | -0.58 | 2.57 | 1.28 | -0.07 | -3.16 | -5.54 | -0.93 | -1.90 | -0.11 | 0.81 | -1.48 | -0.88 | -9.77 |
| 2014 | 0.02 | -0.70 | 0.89 | -0.42 | 1.90 | 0.20 | 0.96 | 2.32 | -0.21 | 0.56 | 0.09 | 0.35 | 6.07 |
| 2015 | 6.37 | 0.59 | 3.32 | -2.86 | 0.02 | -2.48 | -0.58 | -4.10 | 0.18 | 3.09 | 2.94 | -3.65 | 2.30 |
| 2016 | -0.25 | 0.41 | 0.38 | 1.35 | -0.37 | 2.38 | 0.27 | 0.44 | 0.32 | 1.03 | -1.34 | 0.74 | 5.44 |
| 2017 | 0.16 | 2.65 | 0.28 | -0.81 | -1.09 | -0.46 | -0.87 | 0.50 | -0.44 | 0.42 | -1.53 | 0.47 | -0.78 |
| 2018 | -1.27 | 0.19 | -0.68 | -0.03 | 1.47 | -2.25 | 0.32 | -2.46 | 1.13 | 1.61 | 1.97 | -0.16 | -0.29 |
| 2019 | 2.98 | 0.24 | 0.67 | -0.14 | 0.49 | 1.96 | 2.34 | -0.27 | 1.61 | -0.74 | 0.65 | 0.58 | 10.82 |
| 2020 | 0.38 | -1.51 | -5.12 | 3.54 | 1.32 | 0.73 | -2.35 | -0.96 | 0.52 | 0.63 | 2.09 | -0.34 | -1.33 |
| 2021 | 0.01 | -1.84 | 0.29 | -0.50 | 0.02 | 1.76 | -0.64 | 1.06 | -0.92 | -0.05 | -0.57 | 0.04 | -1.38 |
| 2022 | 0.11 | -1.24 | 0.49 | -0.38 | 0.44 | -2.60 | 3.22 | -0.31 | -3.16 | -1.29 | 1.57 | -2.57 | -5.74 |
| 2023 | 1.97 | -1.40 | 1.23 | -0.94 | - | - | - | - | - | - | - | - | 2.38 |
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 | -2.32% |
|---|---|
| 3 years | -5.39% |
| 5 years | 4.53% |
| since inception | 9.19% |
| Max. Drawdown 5 years | -10.88% |
Source: Berenberg, Management company | State: 25 May 2023
Risk figures
| Volatility - 1 year | 6.57% |
|---|---|
| Volatility - 3 years | 5.86% |
| Sharpe Ratio - 3 years | -0.31 |
| Maximum Drawdown - since inception | -14.14% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
Local currency bonds continue to perform well in emerging markets due to the already positive real interest rates across many countries. Indeed, in Latin America, where rate hiking started earlier and was stronger than in developed markets, cycles have already peaked though central banks remain wary of inflation and thus are in no rush to begin easing. Idiosyncratic stories in countries like South Africa and Colombia generated negative sentiment and saw them among the worst performers, but this was balanced by Brazil and Indonesia being among the best performing currencies for the month. As such, the Berenberg Global Bond Fund performed in line with the benchmark in April.
Portfolio Management
Robert Reichle
Robert Reichle, CFA, CQF joined Berenberg as a senior portfolio manager in January 2010. As a member of the fixed income selection team he is responsible for the creation and implementation of global fixed income portfolio management strategies. He has expertise in emerging markets debt, global government bonds, as well as corporates and financials. He is also the lead manager of the Berenberg mutual funds Emerging Markets Bond Selection, Global Bond Selection, and EUR Government Bond Selection. Robert has been working in the financial sector since 2004. Before joining Berenberg he was a senior strategist and portfolio manager at Payden & Rygel in Los Angeles and he also worked at WestLB AG, London as a manager in Emerging Markets credit derivatives trading and structuring. Robert is a Chartered Financial Analyst (CFA), received the CQF designation, and also has a German Diplom in economics from the University of Ulm and a Master in international economics from the University of Pantheon-Sorbonne, Paris.
