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
March was largely shaped by the escalation in the Middle East and the de facto closure of the Strait of Hormuz. Since approximately 20% of the global oil supply passes through the strait, the price of oil rose by over 60%. As a result, inflation concerns increased significantly worldwide, and the market priced out in interest rate cuts in the US and priced in hikes in Europe. In particular, capital markets in Europe—which is dependent on energy imports—suffered from the sudden supply shortage. Yields on 10-year German government bonds rose by more than 34 basis points, while the Euro Stoxx 50 lost around 10% over the course of the month. In the U.S., the reaction in bond markets was similar, while stock markets proved surprisingly resilient. The S&P 500 recorded a decline of just 5% in March compared to the previous month, with a realized 30-day volatility of 17%. However, the VIX reached the 30-point mark for the first time since “Liberation Day” a year ago. The options markets thus priced higher volatility going forward. In this volatile environment, the Berenberg Guardian gained approximately 1.5% and was able to realize a large portion of its option premia. This brings the return since the beginning of the year to approximately 0.8%. The Guardian is well-positioned for further setbacks, although strategies with lower convexity have recently been increasingly added due to the elevated implied volatility.
Portfolio Management
Ulrich Urbahn
Ulrich Urbahn is a CFA charterholder and, for many years, was part of one of the world’s top three multi-asset research teams in the renowned Extel survey. After earning degrees in economics and mathematics from Heidelberg University, he spent more than ten years at Commerzbank, where he worked, among other roles, as a Senior Cross-Asset Strategist. He has been with Berenberg since October 2017 and heads the Multi Asset Strategy & Research as well as the Portfolio Management Alternatives departments. In addition, he is a voting member of the Investment Committee and is responsible for capital markets communication.
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.