Investment Strategy
It is aimed at investors seeking return opportunities through interest income, hedging and tactical opportunities, particularly in falling markets. In this way, the fund aims to help investors diversify their equity investments. The fund combines fundamental and macroeconomic analysis with quantitative models in a discretionary investment approach. The strategy aims to deliver positive returns with low drawdowns and volatility over 12-month periods, a negative correlation to falling equity markets and a low correlation to "normal" equity markets. These objectives meet the needs of investors seeking steady returns, protection during market downturns and the potential for gains when opportunities arise.
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Indexed performance
Performance in 12-month periods
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
October was a month marked by risk-on sentiment. The S&P 500 gained 2.3%, reaching new all-time highs for the fourth month in a row. Once again, it was primarily the ‘'Magnificent Seven’’ with a return of almost 5% that pushed the US stock market higher thanks to strong earnings reports. The fact that Donald Trump briefly reignited the trade conflict with China and that an agreement on the US shutdown seems a long way off caused surprisingly little turbulence in risk markets. European equities also rose in this environment and, thanks to better-than-expected corporate reports, reached new all-time highs and recently even showed lower realised volatility than US equities, contrary to the historical average. Implied volatilities rose briefly in the wake of the resurgence of the trade conflict, but soon returned to normal levels below 15% (30-day ATM). The Berenberg Guardian recorded a slightly negative return of approximately 0.1% in an environment of rising and relatively calm equity markets. Due to the slightly higher implied volatility and, at the same time, flatter skew (100-90 moneyness) than in the previous month, the Guardian allocated more premium to put flies and fewer premium to put spreads in October in order to achieve an attractive payout profile in moderately falling markets.
Portfolio Management
Ulrich Urbahn
Ulrich Urbahn has been working for Berenberg since October 2017 and is responsible for quantitative analyses and the devel-opment of strategic and tactical allocation ideas, and is involved in capital market communications. He is a member of the Asset Allocation Committee and portfolio manager of the Berenberg Variato. After graduating in economics and mathematics from the University of Heidelberg, he worked for more than 10 years at Commerzbank, among others, as a senior cross asset strate-gist. Mr Urbahn is a CFA charterholder and was part of the three best multi-asset research teams worldwide in the renowned Extel survey for many years.
Philipp Loehrhoff
Philipp Löhrhoff joined Berenberg in 2021 and is a portfolio manager in the Multi Asset team. In his previous roles he worked closely with institutional investors to structure, develop and place bespoke hedging and investment solutions. He is an expert for quantitative investment strategies as well as cross asset solutions with a particular focus on equity and fixed income. He spent several years at Goldman Sachs, BNP Paribas and Natixis in London. Philipp holds a Master‘s degree in Finance and Economics and a Bachelor’s degree in Econometrics and Mathematical Economics from the London School of Economics and Political Science (LSE).
Ludwig Kemper
Ludwig Kemper has been working as a strategist since 2019 and as a portfolio manager since 2021 at Berenberg’s Multi Asset unit. His responsibilities include the generation of investment ideas and the preparation of analyses to support investment decisions. Ludwig focuses on the commodities sector and derivatives markets. Previously, he completed a dual study programme at Berenberg in cooperation with the Hamburg School of Business Administration. In his rotations, he worked in investment banking, equity research and asset management. He received his Bachelor's degree as valedictorian of his class. Ludwig is a CFA charterholder.